Company registration number 07819299 (England and Wales)
FUSION FOSTERING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
FUSION FOSTERING LIMITED
COMPANY INFORMATION
Directors
Mr R C Scurr
Mr G Dawkins
Mrs N Scurr
Miss R Spencer
Company number
07819299
Registered office
Maltravers House
Petters Way
YEOVIL
Somerset
BA20 1SH
Auditor
Sumer Auditco Limited
5 Barnfield Crescent
EXETER
Devon
EX1 1QT
FUSION FOSTERING LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
FUSION FOSTERING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Review of the business

Fusion Fostering is an independent agency with a family approach. Our team is dedicated to improving outcomes for children and young people across England. Our skilled workforce can provide individual support to our carers throughout their time with Fusion Fostering, thus enabling children and young people in their care to thrive. All 6 of our regional offices are rated good or Outstanding with Ofsted. 

The Company's profit for the financial year, after taxation was £1,013,823 (2023: £1,151,266).

The results for the year and final position of the Company are as shown in the financial statements.

Operational risk management

Fusion Fostering recognise that it is important to have in place a quality assurance system that has arrangements for self-assessment that is committed to assuring and improving the quality of care provided.

Fusion Fostering service holds, as its core value, the desire to promote children’s rights whilst ensuring organisational regulatory compliance. This means that children in placement will be safe, secure and looked after to a high standard.

Fusion Fostering service quality assurance strategy is to create a service and environment where children have good relationships with their carers and staff who work within the fostering service, so they can develop a level of trust and experience good continuity of care.

Fusion Fostering has developed its own unique quality assurance system that is effective and efficient in its delivery. The quality assurance process seeks to engage in self-evaluation surveys, questionnaires, unannounced and announced monitoring visits and target audits.

This means that Fusion Fostering is committed to having as its objective, a quality service which is outcome based, enabling the meeting of standards determined by Ofsted Commissioning Teams and Placing Authorities.

Financial risk management

The Company's operations expose it to a variety of financial risks that include price risk, credit risk, liquidity risk, cash flow and interest rate risk. The Company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Company by monitoring levels of income, expenditure and liquidity.

Price risk

Fusion Fostering is responsive to the needs of its customers, working in partnership with them to ensure that services provided deliver exceptional placement outcomes and are value for money. This supports customers in working within their financial budget whilst receiving a high quality service.

Credit risk

Almost all of the Company's customers are local authorities and as such this risk is considered to be relatively low.

Liquidity risk

The company's liquidity risk is managed through the Directors and finance function. Capital expenditure is approved at Board level. Day to day cash flow flexibility is maintained by retaining surplus cash in readily accessible bank accounts. Working capital requirements are funded primarily through the company's resources.

Cash flow and interest rate risk

The Company prepares weekly cash flow projections monitoring funds available in order to manage this exposure.

Key performance indicators

The Company uses a range of key performance indicators (KPls) to measure the effectiveness of operational and financial performance. The KPls focus on the quality of provision to ensure that placements are successful and positive outcomes are achieved, as well as financial performance. These KPls are monitored on a weekly and monthly basis.

FUSION FOSTERING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

On behalf of the board

Mr G Dawkins
Director
19 March 2025
FUSION FOSTERING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

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

Principal activities

The principal activity of the company continued to be that of Fostering services.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £500,000. 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:

Mr R C Scurr
Mr G Dawkins
Mrs N Scurr
Miss R Spencer
Auditor

Sumer Auditco Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of 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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr G Dawkins
Director
19 March 2025
FUSION FOSTERING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

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.

FUSION FOSTERING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FUSION FOSTERING LIMITED
- 5 -
Opinion

We have audited the financial statements of Fusion Fostering Limited (the 'company') for the year ended 30 June 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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:

FUSION FOSTERING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FUSION FOSTERING LIMITED (CONTINUED)
- 6 -
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.

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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

FUSION FOSTERING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FUSION FOSTERING LIMITED (CONTINUED)
- 7 -

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.

Adrian Hills BFP FCA (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited, Statutory Auditor
5 Barnfield Crescent
EXETER
Devon
EX1 1QT
19 March 2025
FUSION FOSTERING LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
14,527,653
14,297,803
Cost of sales
(9,476,786)
(9,259,914)
Gross profit
5,050,867
5,037,889
Administrative expenses
(3,718,942)
(3,564,573)
Operating profit
4
1,331,925
1,473,316
Interest receivable and similar income
25,551
15,987
Interest payable and similar expenses
7
(5,584)
(33,019)
Profit before taxation
1,351,892
1,456,284
Tax on profit
8
(338,069)
(305,018)
Profit for the financial year
1,013,823
1,151,266

The profit and loss account has been prepared on the basis that all operations are continuing operations.

FUSION FOSTERING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
£
£
Profit for the year
1,013,823
1,151,266
Other comprehensive income
-
-
Total comprehensive income for the year
1,013,823
1,151,266
FUSION FOSTERING LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
66,183
61,496
Investments
11
3
3
66,186
61,499
Current assets
Debtors
13
2,630,882
2,038,869
Cash at bank and in hand
598,623
359,086
3,229,505
2,397,955
Creditors: amounts falling due within one year
14
(1,480,139)
(1,154,375)
Net current assets
1,749,366
1,243,580
Total assets less current liabilities
1,815,552
1,305,079
Creditors: amounts falling due after more than one year
15
(23,912)
(30,326)
Provisions for liabilities
Deferred tax liability
17
15,193
12,129
(15,193)
(12,129)
Net assets
1,776,447
1,262,624
Capital and reserves
Called up share capital
19
2
2
Profit and loss reserves
1,776,445
1,262,622
Total equity
1,776,447
1,262,624

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

The financial statements were approved by the board of directors and authorised for issue on 19 March 2025 and are signed on its behalf by:
Mr G Dawkins
Director
Company registration number 07819299 (England and Wales)
FUSION FOSTERING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
2
611,356
611,358
Year ended 30 June 2023:
Profit and total comprehensive income
-
1,151,266
1,151,266
Dividends
9
-
(500,000)
(500,000)
Balance at 30 June 2023
2
1,262,622
1,262,624
Year ended 30 June 2024:
Profit and total comprehensive income
-
1,013,823
1,013,823
Dividends
9
-
(500,000)
(500,000)
Balance at 30 June 2024
2
1,776,445
1,776,447
FUSION FOSTERING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
802,095
452,584
Interest paid
(5,584)
(33,019)
Income taxes paid
(257,037)
(2,922)
Net cash inflow from operating activities
539,474
416,643
Investing activities
Purchase of tangible fixed assets
(36,621)
(39,579)
Proceeds from disposal of subsidiaries
-
0
3
Repayment of loans
(282,462)
(27,074)
Interest received
25,551
15,987
Net cash used in investing activities
(293,532)
(50,663)
Financing activities
Repayment of bank loans
(6,405)
(839,875)
Net cash used in financing activities
(6,405)
(839,875)
Net increase/(decrease) in cash and cash equivalents
239,537
(473,895)
Cash and cash equivalents at beginning of year
359,086
832,981
Cash and cash equivalents at end of year
598,623
359,086
FUSION FOSTERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
1
Accounting policies
Company information

Fusion Fostering Limited is a private company limited by shares incorporated in England and Wales. The registered office is Maltravers House, Petters Way, YEOVIL, Somerset, BA20 1SH. The principal business address is Richmond House, Lillesdon, North Curry, Taunton, Somerset, TA3 6BY.

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.

Both of the company’s subsidiaries are dormant, and therefore haven’t been consolidated on the basis that their inclusion would not be material to the accounts. The company has therefore taken advantage of the available exemption from preparing group accounts, as permitted by s402 of the Companies Act 2006. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation 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.

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.

Revenue from contracts for the provision of fostering services is recognised by reference to the level of services provided for each given month. Revenue is only recognised where the amount can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the entity.

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:

Plant and machinery
33% reducing balance
Fixtures, fittings & equipment
25% reducing balance
Computer equipment
33% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

FUSION FOSTERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Fixed asset investments

Interests in subsidiaries 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.

1.6
Impairment of fixed assets

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

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.

1.7
Cash and cash equivalents

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

1.8
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

FUSION FOSTERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
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.

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.

FUSION FOSTERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
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.

1.9
Equity instruments

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

1.10
Taxation

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

Current tax

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

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

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

 

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

 

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

FUSION FOSTERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
1.12
Retirement benefits

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

Items that are marked as exceptional within the profit and loss account are done so to bring the users attention to the separate disclosure to give the accounts a true and fair view.

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.

Estimated useful lives

In determining the estimated useful life the company considers the expected usage of the asset, and expected physical wear and tear of the asset. Each year the company reviews the above to establish if there is any change in expected useful life of tangible assets.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Services
14,527,653
14,297,803
2024
2023
£
£
Turnover analysed by geographical market
UK
14,527,653
14,297,803
2024
2023
£
£
Other revenue
Interest income
25,551
15,987
FUSION FOSTERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
11,340
12,500
Depreciation of owned tangible fixed assets
25,633
21,173
Loss on disposal of tangible fixed assets
6,301
-
Operating lease charges
148,755
138,559
5
Employees

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

2024
2023
Number
Number
Administration and support
78
73

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
9,196,459
8,870,057
Social security costs
205,258
189,261
Pension costs
83,728
31,760
9,485,445
9,091,078

Included within the above breakdown is £7,333,714 (2023: £7,186,300) of Foster Parenting costs.

6
Directors' remuneration
2024
2023
£
£
Company pension contributions to defined contribution schemes
50,000
-
FUSION FOSTERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
24,829
Other interest on financial liabilities
28
-
0
28
24,829
Other finance costs:
Other interest
5,556
8,190
5,584
33,019
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
335,005
279,179
Deferred tax
Origination and reversal of timing differences
3,064
25,839
Total tax charge
338,069
305,018

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
1,351,892
1,456,284
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
337,973
298,478
Tax effect of expenses that are not deductible in determining taxable profit
66
1,968
Remeasurement of deferred tax for changes in tax rates
-
0
4,655
Fixed asset differences
30
(83)
Taxation charge for the year
338,069
305,018
FUSION FOSTERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
9
Dividends
2024
2023
£
£
Interim paid
500,000
500,000
10
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 July 2023
-
0
10,088
117,252
127,340
Additions
582
1,670
34,369
36,621
Disposals
-
0
-
0
(36,782)
(36,782)
At 30 June 2024
582
11,758
114,839
127,179
Depreciation and impairment
At 1 July 2023
-
0
5,293
60,551
65,844
Depreciation charged in the year
192
1,431
24,010
25,633
Eliminated in respect of disposals
-
0
-
0
(30,481)
(30,481)
At 30 June 2024
192
6,724
54,080
60,996
Carrying amount
At 30 June 2024
390
5,034
60,759
66,183
At 30 June 2023
-
0
4,795
56,701
61,496
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
3
3

The investment represents the cost of shares acquired in this company's dormant subsidiaries.

12
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Fusion Fostering (Scotland) Limited
Airlink Business Centre, 25 Caledonia Street, Paisley, Renfreshire, PA3 2LG
Ordinary £1
100.00
Foster Start Limited
Maltravers House, Petters Way, Yeovil, Somerset, BA20 1SH
Ordinary £1
100.00
FUSION FOSTERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
884,111
825,557
Other debtors
1,577,601
1,064,866
Prepayments and accrued income
169,170
148,446
2,630,882
2,038,869

Other debtors includes amounts due from entities under common control and those amounts are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
5,627
5,618
Trade creditors
214,348
181,874
Corporation tax
630,787
552,819
Other taxation and social security
113,110
111,529
Other creditors
393,215
208,166
Accruals and deferred income
123,052
94,369
1,480,139
1,154,375

The bank loan is secured by fixed and floating charges over the company's assets and a partial guarantee has been provided by the Secretary of State as part of the Business Interruption Payment relief provided to companies during the pandemic.

15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
23,912
30,326

The bank loan is secured by fixed and floating charges over the company's assets and a partial guarantee has been provided by the Secretary of State as part of the Business Interruption Payment relief provided to companies during the pandemic.

 

Amounts included above which fall due after five years are as follows:
Payable by instalments
-
6,396
FUSION FOSTERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
16
Loans and overdrafts
2024
2023
£
£
Bank loans
29,539
35,944
Payable within one year
5,627
5,618
Payable after one year
23,912
30,326

The overall bank loan liability of £29,539 (2023: £35,944) relates to the following loan:

 

A Bounce Back loan which is repayable by instalments over the 10 years ending May 2031, with no capital repayments due in the first 12 months. Interest in the initial 12 month period is paid for by the UK government, and thereafter is charged at 2.5% per annum.

17
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Fixed asset timing differences
16,469
15,374
Short term timing differences
(1,276)
(3,245)
15,193
12,129
2024
Movements in the year:
£
Liability at 1 July 2023
12,129
Charge to profit or loss
3,064
Liability at 30 June 2024
15,193

The deferred tax asset set out above is over the lifetime of the assets and relates to accelerated capital allowances that are expected to mature within the same period and other timing differences relating to accruals of remuneration and pension contributions.

 

FUSION FOSTERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
83,728
31,760

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 1p each
200
200
2
2
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
41,473
14,074
Between two and five years
31,912
26,022
73,385
40,096
21
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Purchases
Purchases
2024
2023
£
£
Key management personnel
58,772
38,972
FUSION FOSTERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
21
Related party transactions
(Continued)
- 24 -

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Entities over which the entity has control, joint control or significant influence
3
3
Key management personnel
-
106,874
Other related parties
375,145
76,600

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Key management personnel
566,461
384,999
Other related parties
592,065
531,486

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

22
Directors' transactions

Advances or credits have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors' Loan Account
2.25
(106,874)
791,874
5,544
(534,963)
155,581
Directors' Loan Account
2.25
283,999
839,317
14,262
(726,698)
410,880
177,125
1,631,191
19,806
(1,261,661)
566,461
FUSION FOSTERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
23
Cash generated from operations
2024
2023
£
£
Profit after taxation
1,013,823
1,151,266
Adjustments for:
Taxation charged
338,069
305,018
Finance costs
5,584
33,019
Investment income
(25,551)
(15,987)
Loss on disposal of tangible fixed assets
6,301
-
Depreciation and impairment of tangible fixed assets
25,633
21,173
Movements in working capital:
Increase in debtors
(309,551)
(175,950)
Decrease in creditors
(252,213)
(865,955)
Cash generated from operations
802,095
452,584
24
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
359,086
239,537
598,623
Borrowings excluding overdrafts
(35,944)
6,405
(29,539)
323,142
245,942
569,084
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