REGISTERED NUMBER: 05847899 (England and Wales) |
FLUOROCARBON GROUP LIMITED |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 |
REGISTERED NUMBER: 05847899 (England and Wales) |
FLUOROCARBON GROUP LIMITED |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
FLUOROCARBON GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
Fryern House |
125 Winchester Road |
Chandlers Ford |
Hampshire |
SO53 2DR |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their strategic report of the company and the group for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
The turnover for the year ended 30 June 2024 was £16,513,718. This represented an increase of 1.5% on the prior year. Gross profit margin in the period increased to 40.0% from 36.9% in 2023. |
The operating profit for the year ended 30 June 2024 was £1,206,841 or 7.3% which was a 0.3 percentage point increase on the prior year. |
Of the £2,564,097 of cash generated from trading activities in the year ended 30 June 2024, £522,772 was spent on continued investment in fixed assets. £1,574,201 of cash generated was spent on servicing of finance, tax and de-gearing. A balance of £486,713 was retained as working capital in the Group. |
The Group has continued to develop its expertise in formulation and testing services for clients requiring quick turnaround feasibility studies in the field of polymer science and critical materials. This forms part of a long-term strategic plan for the Group to maximise the available and extensive application knowledge towards becoming one of the global innovation leaders in the specialist field of high-performance polymers and composites. To that end, the Group opened, in September 2023, a Centre of Excellence in Stevenage UK. |
PRINCIPAL RISKS AND UNCERTAINTIES, INCLUDING FINANCIAL INSTRUMENTS RISKS |
The Group's activities expose it to a number of financial and operating risks and uncertainties, which are managed and mitigated as part of the Group's ongoing management processes. The key business risks and uncertainties relate to the availability of materials, and recruitment and maintaining of a skilled labour force, and geopolitical risks that may affect global supply chains. Price inflation because of the COVID-19 pandemic and the conflict in Ukraine is an important risk to manage, but the Group recognises this risk and has adopted a pricing strategy which takes this into account. |
The group's principal financial instruments are comprised of bank balances, trade creditors, trade debtors and finance lease/hire purchase agreements. The main purpose of these instruments is to provide finance for the group's operations. |
Due to the nature of the financial instruments used by the group there is no exposure to price risk. The group's approach to managing other risks applicable to the financial instruments concerned is shown below. |
In respect of bank balances the liquidity risk is managed by maintaining close control of cash balances, debtors and creditors. |
In respect of loans these include loans from financial institutions. The interest rate on the loans from the financial institutions is variable but the monthly repayments are fixed. The group manages the liquidity risk by ensuring there are sufficient funds to meet amounts due. |
The group is a lessee in respect of finance leased/hire purchased assets. The liquidity risk in respect of these is managed in the same way as loans above. |
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. |
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
ON BEHALF OF THE BOARD: |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2024. |
DIVIDENDS |
No dividends will be distributed for the period under review (2023: £Nil). |
RESEARCH AND DEVELOPMENT |
The group's focus on research and development continues to focus on new polymer blending, processes and products together with development of new release coatings, materials and systems focusing on safety and efficiency critical components. In particular, this year the group has broadened its capabilities in large diameter semi-finished bushings whilst focusing in developing new composite materials for key target sectors. |
FUTURE DEVELOPMENTS |
The Group continues to invest in the development of its facilities in Manchester (UK), Romania (EU) and is pleased to announce the opening of a new productions facility in Malaysia. |
With the admission of the UK as the only European member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Group looks forward to leveraging its broad global manufacturing footprint and knowledge of global supply chains. |
The Group plans to take advantage of the growing interest in the hydrogen market and the defence sector, increasing productivity using new technology, amid ongoing geopolitical uncertainty. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
F Wells |
Other changes in directors holding office are as follows: |
T J Wells ceased to be a director after 30 June 2024 but prior to the date of this report. |
M Jalali Roudsari was appointed director on 9 October 2024. |
QUALIFYING THIRD PARTY INDEMNITY PROVISIONS |
The company has put in place qualifying third party indemnity provisions for all of the directors of Fluorocarbon Group Limited. |
FINANCIAL INSTRUMENTS RISKS |
Financial instruments risks have been covered in the Strategic Report. |
EMPLOYMENT OF DISABLED PERSONS |
The group gives full and fair consideration to applications for employment made by disabled persons, and it is the group's policy to ensure that, where possible, continued employment is offered to employees who become disabled. |
EMPLOYEE INVOLVEMENT |
The group endeavours, so far as possible, to provide employees with information on matters concerning them and encourages the involvement of employees in the affairs of the business. |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Rothmans Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FLUOROCARBON GROUP LIMITED |
Opinion |
We have audited the financial statements of Fluorocarbon Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 June 2024 and of the group's 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 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FLUOROCARBON GROUP LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' 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 Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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 obtained an understanding of the legal and regulatory framework that the Group operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect of the operations of the Group. The key laws and regulations we considered in this context included the UK Companies Act and Health & Safety regulations. |
Discussions were held within the engagement team regarding how and where fraud might occur in the Financial Statements and any potential indicators of fraud. As part of this discussion, we identified potential risk areas such as the completeness of revenue. Audit procedures were designed to ensure all of the risks were addressed. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- Enquiring of management as to actual and potential litigation and claims; and |
- Reviewing any correspondence with regulators and the group's legal advisors. |
To address the risk of fraud through management bias and override of controls, we: |
- Performed analytical procedures to identify any unusual or unexpected relationships; |
- Tested journal entries to identify unusual transactions; and |
- Assessed whether judgements and assumptions contained any indication of potential bias. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FLUOROCARBON GROUP LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
Fryern House |
125 Winchester Road |
Chandlers Ford |
Hampshire |
SO53 2DR |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 4 | 16,513,718 | 16,267,763 |
Cost of sales | 9,902,189 | 10,258,257 |
GROSS PROFIT | 6,611,529 | 6,009,506 |
Administrative expenses | 5,404,688 | 4,876,293 |
5,404,688 | 4,876,293 |
OPERATING PROFIT | 6 | 1,206,841 | 1,133,213 |
Interest payable and similar expenses | 8 | 455,293 | 510,853 |
PROFIT BEFORE TAXATION | 751,548 | 622,360 |
Tax on profit | 9 | 47,346 | 30,677 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 616,773 | 523,441 |
Non-controlling interests | 87,429 | 68,242 |
704,202 | 591,683 |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 704,202 | 591,683 |
OTHER COMPREHENSIVE INCOME |
Exchange adjustment on consolidation | (35,529 | ) | (10,345 | ) |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(35,529 |
) |
(10,345 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
668,673 |
581,338 |
Total comprehensive income attributable to: |
Owners of the parent | 584,864 | 513,096 |
Non-controlling interests | 83,809 | 68,242 |
668,673 | 581,338 |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
CONSOLIDATED BALANCE SHEET |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 12 | 2,667,818 | 2,284,935 |
Investments | 13 | - | - |
2,667,818 | 2,284,935 |
CURRENT ASSETS |
Stocks | 14 | 2,241,789 | 2,306,600 |
Debtors | 15 | 3,211,584 | 3,032,330 |
Cash at bank and in hand | 1,405,604 | 918,891 |
6,858,977 | 6,257,821 |
CREDITORS |
Amounts falling due within one year | 16 | 4,305,381 | 3,446,799 |
NET CURRENT ASSETS | 2,553,596 | 2,811,022 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,221,414 |
5,095,957 |
CREDITORS |
Amounts falling due after more than one year |
17 |
1,468,288 |
2,198,432 |
NET ASSETS | 3,753,126 | 2,897,525 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 1,724,621 | 1,724,621 |
Retained earnings | 22 | 1,694,956 | 923,164 |
SHAREHOLDERS' FUNDS | 3,419,577 | 2,647,785 |
NON-CONTROLLING INTERESTS | 23 | 333,549 | 249,740 |
TOTAL EQUITY | 3,753,126 | 2,897,525 |
The financial statements were approved by the Board of Directors and authorised for issue on 25 March 2025 and were signed on its behalf by: |
F Wells - Director |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
COMPANY BALANCE SHEET |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 278,085 | 294,412 |
The financial statements were approved by the Board of Directors and authorised for issue on |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Non-controlling | Total |
capital | earnings | Total | interests | equity |
£ | £ | £ | £ | £ |
Balance at 1 July 2022 | 1,724,621 | 410,068 | 2,134,689 | 181,498 | 2,316,187 |
Changes in equity |
Total comprehensive income | - | 513,096 | 513,096 | 68,242 | 581,338 |
Balance at 30 June 2023 | 1,724,621 | 923,164 | 2,647,785 | 249,740 | 2,897,525 |
Changes in equity |
Total comprehensive income | - | 584,864 | 584,864 | 83,809 | 668,673 |
Correction of brought forward reserves |
- |
186,928 |
186,928 |
- |
186,928 |
Balance at 30 June 2024 | 1,724,621 | 1,694,956 | 3,419,577 | 333,549 | 3,753,126 |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2024 |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,564,097 | 2,470,450 |
Interest paid | (371,074 | ) | (464,296 | ) |
Interest element of hire purchase payments paid |
(23,214 |
) |
(9,207 |
) |
Tax paid | (47,346 | ) | (30,677 | ) |
Net cash from operating activities | 2,122,463 | 1,966,270 |
Cash flows from investing activities |
Investment in fixed assets | (522,772 | ) | (354,682 | ) |
Sale of tangible fixed assets | 19,589 | 5,500 |
Net cash from investing activities | (503,183 | ) | (349,182 | ) |
Cash flows from financing activities |
Loan repayments in year | (1,010,890 | ) | (877,674 | ) |
Capital element of finance leases | (121,677 | ) | (165,925 | ) |
Net cash from financing activities | (1,132,567 | ) | (1,043,599 | ) |
Increase in cash and cash equivalents | 486,713 | 573,489 |
Cash and cash equivalents at beginning of year |
2 |
918,891 |
345,402 |
Cash and cash equivalents at end of year | 2 | 1,405,604 | 918,891 |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 751,548 | 622,360 |
Depreciation charges | 578,633 | 924,771 |
Loss on disposal of fixed assets | 60,408 | 7,170 |
Finance costs | 455,293 | 510,853 |
1,845,882 | 2,065,154 |
Decrease/(increase) in stocks | 64,811 | (44,985 | ) |
(Increase)/decrease in trade and other debtors | (179,254 | ) | 801,740 |
Increase/(decrease) in trade and other creditors | 832,658 | (351,459 | ) |
Cash generated from operations | 2,564,097 | 2,470,450 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30/6/24 | 1/7/23 |
£ | £ |
Cash and cash equivalents | 1,405,604 | 918,891 |
Year ended 30 June 2023 |
30/6/23 | 1/7/22 |
£ | £ |
Cash and cash equivalents | 918,891 | 345,402 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Non cash |
At 1/7/23 | Cash flow | flow | At 30/6/24 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 918,891 | 486,713 | - | 1,405,604 |
918,891 | 486,713 | - | 1,405,604 |
Debt |
Finance leases | (85,869 | ) | 121,677 | (536,072 | ) | (500,264 | ) |
Debts falling due |
within 1 year | (948,048 | ) | 1,010,890 | (1,131,251 | ) | (1,068,409 | ) |
Debts falling due |
after 1 year | (2,170,489 | ) | - | 1,070,246 | (1,100,243 | ) |
(3,204,406 | ) | 1,132,567 | (597,077 | ) | (2,668,916 | ) |
Total | (2,285,515 | ) | 1,619,280 | (597,077 | ) | (1,263,312 | ) |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | COMPANY INFORMATION |
Fluorocarbon Group Limited was incorporated on 15 June 2006 under the Companies Act 1985, as a private limited company and is registered in England and Wales. The principal activity of the group is fluoropolymer processing. The address of its head office and registered office is Argyle Gate, Argyle Way, Stevenage, Hertfordshire, SG1 2AD. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as specified in the accounting policies below. |
The presentation currency is £ sterling. |
Going concern |
The financial statements have been prepared on a going concern basis. |
Financial reporting standard 102 - reduced disclosure exemptions |
The parent company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
o the requirement of paragraph 3.17(d); |
o the requirements of Section 7 Statement of Cash Flows; |
o the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
o the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
o the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23; |
o the requirement of paragraph 33.7. |
Basis of consolidation |
The consolidated financial statements incorporate the financial results of Fluorocarbon Group Limited and its subsidiaries as at 30 June 2024 using the acquisition method of accounting as required. Where the acquisition method is used, the results of subsidiary undertakings are included from the date of acquisition. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. |
Related party exemption |
The company has taken advantage of exemption, under the terms of 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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Turnover represents net sales during the year (excluding value added tax) adjusted for accrued and deferred income where applicable. |
Turnover is recognised on the sale of goods, when the goods are delivered and title has passed. |
Turnover from operating leases is recognised at a constant rate over the length of the rental contract. |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
All fixed assets are initially recognised at cost and subsequently carried at cost less accumulated depreciation and accumulated impairment losses. |
The cost of fixed assets initially recognised includes its purchase price and any cost that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in a manner intended by management. |
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows: |
Plant, machinery & computers | 10% to 20 % straight line |
Motor vehicles | 33% straight line |
Improvements to property | Over the life of the lease |
The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. |
Fixed assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the Consolidated Income Statement. |
Stocks |
Stock and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Costs include all direct material and direct labour costs. |
Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal. |
Cost is calculated using the first-in, first-out method and includes all purchases, transport, and handling costs in bringing stocks to their present location and condition. |
Taxation |
The charge for taxation is based on the profit for the year and takes into account taxation deferred. |
Current tax is measured at amounts expected to be paid using tax rates and laws that been enacted or substantively enacted by the balance sheet date. |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date except that the recognition of deferred tax assets is limited to the extent that the company anticipates to make sufficient taxable profits in the future to absorb the reversal of the underlying timing differences. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Where tax losses are available these are relieved against taxable profits in other group companies. No charge is made for the losses surrendered. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences, including exchange differences on loans to subsidiaries, are taken into account in arriving at the operating result. |
Income and expenditure incurred during the year by overseas subsidiaries is translated using the average exchange rate for the year. Assets and liabilities are translated into sterling at the rates of exchange ruling at the balance sheet date. Share capital is translated at the historic rate and any differences arising on translation are taken to reserves. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to the Consolidated Income Statement on a straight line basis over the period of the lease. |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. The interest element of these obligations is charged to the Consolidated Income Statement over the relevant period. The capital element of the future payments is treated as a liability. |
Pension costs and other post-retirement benefits |
The Group operates two defined contribution pension schemes, of which the larger is the Fluorocarbon Group Personal Pension Plan. The Group makes pension contributions to these defined contribution pension schemes, the assets of which are held separately from those of the group in an independently administered fund. Contributions to the schemes are charged to the Consolidated Income Statement as they become payable. |
Financial instruments |
Financial instruments are classified and accounted for according to the substance of the contractual arrangements as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all its liabilities. |
On initial recognition financial instruments are recognised at transaction price, including transaction costs. Subsequently, financial instruments are measured at amortised cost using the effective interest method. |
Finance costs |
Finance costs are charged to the Consolidated Income Statement over the term of the debt using the effective interest rate method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
Exceptional items |
Exceptional items are one off, material items outside the normal course of business which are not related to the companies trading activities. |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date, and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. |
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
Leases |
A lease that does not transfer substantially all of the risks and rewards of ownership is classified as an operating lease and is therefore not included in the balance sheet. |
Other key sources of estimation uncertainty; |
Tangible fixed assets |
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as market conditions, the remaining life of the asset and projected disposal values. |
Investments |
The directors review investments for any signs of impairment. The amount of the impairment is estimated by the directors based on knowledge of the investments and other relevant conditions. |
4. | TURNOVER |
The turnover and loss before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
Year ended 30/6/24 |
Year ended 30/6/23 |
£ | £ |
Sale of goods | 15,814,994 | 15,536,897 |
Operating lease rentals | 698,724 | 730,866 |
16,513,718 | 16,267,763 |
The analysis of turnover by geographical segment is not disclosed since, in the opinion of the directors, this would be prejudicial to the interests of the company. |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
5. | EMPLOYEES AND DIRECTORS |
Year ended 30/6/24 |
Year ended 30/6/23 |
£ | £ |
Wages and salaries | 3,693,681 | 3,554,251 |
Social security costs | 270,869 | 301,868 |
Other pension costs | 111,553 | 189,838 |
4,076,103 | 4,045,957 |
The average monthly number of employees during the year was as follows: |
Year ended 30/6/24 |
Year ended 30/6/23 |
Management | 14 | 12 |
Administrative and Engineering staff | 67 | 75 |
Production staff | 95 | 100 |
176 | 187 |
Year ended 30/6/24 |
Year ended 30/6/24 |
£ | £ |
Directors' remuneration | 95,000 | 96,670 |
The number of directors accruing benefits under a pension scheme is nil (2023: nil). |
6. | OPERATING PROFIT |
The Group operating profit is stated after charging/(crediting): |
Year ended 30/6/24 |
Year ended 30/6/23 |
£ | £ |
Depreciation - owned assets | 439,690 | 918,538 |
Depreciation - assets on hire purchase contracts | 138,943 | 6,233 |
(Profit)/loss on disposal of tangible fixed assets | 60,408 | 7,170 |
Foreign Exchange differences | 194,401 | 118,611 |
Operating lease payments | 526,097 | 531,857 |
Stock write off | 176,929 | 32,575 |
Auditors remuneration | 48,250 | 53,750 |
7. | EXCEPTIONAL ITEMS |
Included within administrative expenses are exceptional costs totalling £Nil (2023: £104,839) as follows: |
2024 | 2023 |
£ | £ |
Restructuring costs following transfer of trade | - | 104,839 |
- | 104,839 |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Interest and similar charges | - | 25,544 |
Loan interest | 432,079 | 476,101 |
Hire purchase and finance lease charges | 23,214 | 9,208 |
455,293 | 510,853 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
Overseas corporation tax (received)/paid | 47,346 | 30,677 |
Tax on profit | 47,346 | 30,677 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 751,548 | 622,360 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
187,887 |
118,248 |
Effects of: |
Expenses not deductible for tax purposes | 23,097 | 30,636 |
Difference in rates for overseas activities | (10,018 | ) | 10,583 |
Movement on losses and unprovided deferred tax | (153,620 | ) | (122,634 | ) |
Impact of super deduction | - | (6,156 | ) |
Total tax charge | 47,346 | 30,677 |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Exchange adjustment on consolidation | (35,529 | ) | - | (35,529 | ) |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Exchange adjustment on consolidation | (10,345 | ) | - | (10,345 | ) |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the profit and loss account of the parent company is not presented as part of these financial statements. |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
11. | OPERATING LEASES |
Minimum lease payments are receivable as follows: |
Group |
2024 | 2023 |
£ | £ |
Within one year | 235,253 | 235,253 |
Between one and five years | 294,066 | 529,319 |
529,319 | 764,572 |
Company |
2024 | 2023 |
£ | £ |
Within one year | 467,702 | 467,702 |
Between one and five years | 584,628 | 1,052,330 |
1,052,330 | 1,520,032 |
12. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
to | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2023 | 821,673 | 6,294,416 | 11,849 | - | 7,127,938 |
Additions | 5,543 | 933,463 | 119,838 | - | 1,058,844 |
Disposals | - | (227,631 | ) | - | - | (227,631 | ) |
Exchange differences | (6,144 | ) | (36,887 | ) | - | - | (43,031 | ) |
At 30 June 2024 | 821,072 | 6,963,361 | 131,687 | - | 7,916,120 |
DEPRECIATION |
At 1 July 2023 | 393,113 | 4,446,152 | 3,738 | - | 4,843,003 |
Charge for year | 104,146 | 466,792 | 7,695 | - | 578,633 |
Eliminated on disposal | - | (146,106 | ) | - | - | (146,106 | ) |
Exchange differences | (2,181 | ) | (25,047 | ) | - | - | (27,228 | ) |
At 30 June 2024 | 495,078 | 4,741,791 | 11,433 | - | 5,248,302 |
NET BOOK VALUE |
At 30 June 2024 | 325,994 | 2,221,570 | 120,254 | - | 2,667,818 |
At 30 June 2023 | 428,560 | 1,848,264 | 8,111 | - | 2,284,935 |
The net book value of tangible fixed assets includes £627,713 (2023: £106,814) in respect of assets held under hire purchase contracts. |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
12. | TANGIBLE FIXED ASSETS - continued |
Company |
Improvements |
to | Motor | Computer |
property | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 July 2023 |
Additions |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The net book value of tangible fixed assets includes £116,093 (2023: £Nil) in respect of assets held under hire purchase contracts. |
The Computer Equipment of the Company is classified under Plant & Machinery in the Group consolidated Tangible Fixed Asset table. |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2023 |
Disposals | ( |
) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | FIXED ASSET INVESTMENTS - continued |
The company's interests in the ordinary share capital of subsidiary companies at the balance sheet date were as follows: |
Subsidiary |
Principal activity |
Direct % |
Indirect % |
Fluorocarbon Limited | Design of Fluorocarbon finished products |
88 |
Fluorocarbon Surface Technologies Ltd | Design and application of Fluorocarbon coatings |
100 |
Fluorocarbon Polymers SRL | Manufacture of semi-finished Fluoropolymer products |
88 |
Fluorocarbon SDN. BHD. | Manufacture of polymer products | 88 |
Fluorocarbon Inc | Technical and engineering services | 100 |
Advanced Fluoropolymer Technology Limited | Dormant | 100 |
All the above companies are included in the consolidated financial statements. |
All companies are registered in England and Wales, except Fluorocarbon Polymers SRL which is registered in Romania, Fluorocarbon Inc which is registered in the United States of America and Fluorocarbon SDN. BHD. which is registered in Malaysia. |
Fluorocarbon Limited and Fluorocarbon Surface Technologies Ltd both have their registered office at Argyle Gate, Argyle Way, Stevenage, Hertfordshire, England, SG1 2AD. |
The registered office for Advanced Fluoropolymer Technology Limited is Fryern House, 125 Winchester Road, Chandlers Ford, Hampshire, SO53 2DR. |
The registered office for Fluorocarbon Polymers SRL is Strada Dunarii Nr. 277, Corp C10, Alexandria, Judetul Teleorman, Romania. |
The registered office for Fluorocarbon Inc is 13831, NW Fwy, Suite 407, Houston, Texas, 77040, United States of America. |
The registered office for Fluorocarbon SDN, BHD. is Suite 28.02, 28th Floor, Menara Zurich, No. 15, Jalan Dato' Abdullah Tahir, 80300 Johor Bahru, Johor, Malaysia. |
14. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Raw materials | 1,206,548 | 1,453,251 |
Work-in-progress | 296,456 | 164,122 |
Finished goods | 738,785 | 689,227 |
2,241,789 | 2,306,600 |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 1,759,525 | 1,441,925 |
Amounts owed by group undertakings | - | - |
Other debtors | 6,591 | 12,457 |
VAT | - | 115,117 | 26,250 | - |
Prepayments and accrued income | 1,445,468 | 1,462,831 |
3,211,584 | 3,032,330 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 1,068,409 | 948,048 |
Hire purchase contracts (see note 19) | 132,219 | 57,926 |
Payments on account | 434,942 | - |
Trade creditors | 1,740,074 | 1,488,890 |
Amounts owed to group undertakings | - | 186,928 |
Social security and other taxes | 218,898 | 218,662 |
VAT | 63,219 | 104,635 | - | 59,046 |
Other creditors | 110,674 | 11,304 |
Accruals and deferred income | 536,946 | 430,406 |
4,305,381 | 3,446,799 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 18) | 1,100,243 | 2,170,489 |
Hire purchase contracts (see note 19) | 368,045 | 27,943 |
1,468,288 | 2,198,432 |
18. | LOANS |
Group |
An analysis of the maturity of loans is given below: |
Bank loan | 2024 | 2023 |
£ | £ |
Amounts falling due within one year | 1,111,285 | 1,010,950 |
Amounts falling due between one and two years | 1,115,306 | 1,111,285 |
Amounts falling due between two and five years | - | 1,115,307 |
2,226,591 | 3,237,542 |
The bank loan is for a period of 60 months commencing May 2021. The loan attracts interest at the higher of 9.5% and SONIA plus 7.5%. |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 132,219 | 57,926 |
Between one and five years | 368,045 | 27,943 |
500,264 | 85,869 |
Company |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 574,583 | 467,702 |
Between one and five years | 949,549 | 1,532,886 |
1,524,132 | 2,000,588 |
Company |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank loans | 2,168,652 | 3,118,537 |
Hire purchase contracts | 500,264 | 85,869 |
2,668,916 | 3,204,406 |
The bank loan is secured by a floating charge over the assets of the company, Fluorocarbon Limited and Fluorocarbon Surface Technologies Ltd. |
The hire purchase contracts are secured over the assets to which they relate. |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 508,181 | 508,181 |
Preference | £1 | 1,216,440 | 1,216,440 |
1,724,621 | 1,724,621 |
The ordinary shares rank equally in respect of voting rights and any dividend declared, and shall entitle the holder to full participation in respect of the entity and in the event of winding up the company. |
The preference shares are not redeemable and have no voting rights. The entitlement to dividends is at the discretion of the directors and each preference share ranks equally in respect of dividends. On a winding up, the preference shareholders are entitled to repayment of the par value of the preference shares, but do not participate in any surplus funds. |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 July 2023 | 923,164 |
Profit for the year | 616,773 |
Other recognised gains and |
losses relating to the period | (31,909 | ) |
Correction of brought forward reserves |
186,928 |
At 30 June 2024 | 1,694,956 |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
22. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
At 1 July 2023 |
Profit for the year |
At 30 June 2024 |
Retained earnings includes all current and prior period profits and losses. |
The correction of the brought forward reserves relates to an error in the prior period financial statements whereby a consolidation adjustment was incorrectly included in the group figures. The comparative figures incorrectly include an intercompany creditor of £186,928 and the reserves figures was incorrect by the same amount. There was no impact on the Consolidated Income Statement. The adjustment is not considered material to process a prior year adjustment and the adjustment in the reserves note shows this correction. |
23. | NON-CONTROLLING INTERESTS |
As at the balance sheet date the minority interest was composed of 12% of the shareholding in Fluorocarbon Limited, Fluorocarbon Polymers SRL and Fluorocarbon SBN. BHD. |
24. | ULTIMATE PARENT COMPANY |
At the year end Fluorocarbon Group Limited was the ultimate parent company. The largest group, as at the year end, in which the results of the company are consolidated is that headed by Fluorocarbon Group Limited. |
Since the year end, in October 2024, the ultimate parent company of the group became Ergi Industries Ltd. |
25. | CONTINGENT LIABILITIES |
As at 30 June 2024, Fluorocarbon Group Limited provided a cross-guarantee along with fellow subsidiary companies, on bank debts for the sum of £2,226,591 (2023: £3,237,542) held in a subsidiary company. |
FLUOROCARBON GROUP LIMITED (REGISTERED NUMBER: 05847899) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
26. | RELATED PARTY DISCLOSURES |
During the year the following transactions occurred between Fluorocarbon Group Limited and Fluorocarbon Limited and Fluorocarbon Polymers SRL, subsidiaries which are not wholly owned by the group: |
2024 | 2023 |
£ | £ |
Dividends received from subsidiary company | - | 13,886 |
Amount owed from subsidiary companies | 2,443,361 | 2,256,101 |
During the year the following transactions occurred between the Fluorocarbon group companies and Hartog Hutton Limited, a company controlled by Mr T J Wells, a director. |
2024 | 2023 |
£ | £ |
Management charges payable | 93,750 | 144,088 |
Amount owed (to) / from Hartog Hutton Limited | (34,589 | ) | (24,589 | ) |
During the year the following transactions occurred between the Fluorocarbon group companies and Cent Serve Limited, a company controlled by Mr F Wells, a director. |
2024 | 2023 |
£ | £ |
Services related to IT & Marketing Projects | (107,456 | ) | (102,000 | ) |
Shared Service Centre costs | (80,000 | ) | (80,000 | ) |
Interim Finance & Operations support | (4,980 | ) | (47,240 | ) |
Amounts owed from Cent Serve Limited | 214,202 | - |
During the year, a total of key management personnel compensation of £ 216,321 (2023 - £ 217,991 ) was paid. |
27. | ULTIMATE CONTROLLING PARTY |
At the year end the ultimate controlling party was Mr T J Wells by virtue of his controlling interest in the ultimate parent company. |