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Company registration number: 07473859
Fidelity Supply Chain Solutions
Filleted financial statements
29 December 2023
Fidelity Supply Chain Solutions
Contents
Directors and other information
Directors responsibilities statement
Statement of financial position
Statement of changes in equity
Notes to the financial statements
Fidelity Supply Chain Solutions
Directors and other information
Directors Mr Saud Alfozan
Mr Stephen Charles Williams
Mr Simon James Vincent
Company number 07473859
Registered office Unit 1, Orion Close
Mustang Park
Daventry
Northamptonshire
NN11 8NW
Business address Unit 1, Orion Close
Mustang Park
Daventry
Northamptonshire
NN11 8NW
Auditor Emery & Co Accountants Limited
The Hayloft, Lodge Farm
Lodge Lane
Cheslyn Hay
Cannock
WS11 0LT
Fidelity Supply Chain Solutions
Directors responsibilities statement
Period ended 29 December 2023
The directors are responsible for preparing the directors report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial period. 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 profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Fidelity Supply Chain Solutions
Statement of financial position
29 December 2023
29/12/23 30/12/22
as restated
Note £ £ £ £
Fixed assets
Tangible assets 5 1,443,167 1,668,332
Investments 6 3,818,116 4,139,964
_______ _______
5,261,283 5,808,296
Current assets
Stocks 13,481 7,007
Debtors:
Amounts falling due after more than one year 7 1,237,896 -
Amounts falling due within one year 7 1,358,569 2,430,769
Cash at bank and in hand 76,244 717,287
_______ _______
2,686,190 3,155,063
Creditors: amounts falling due
within one year 8 ( 2,569,149) ( 1,975,483)
_______ _______
Net current assets 117,041 1,179,580
_______ _______
Total assets less current liabilities 5,378,324 6,987,876
Creditors: amounts falling due
after more than one year 9 ( 4,838,817) ( 9,928,723)
Provisions for liabilities 10 ( 328,593) ( 172,989)
_______ _______
Net assets/(liabilities) 210,914 ( 3,113,836)
_______ _______
Capital and reserves
Called up share capital 12 5,000,200 200
Share premium account 287,922 287,922
Profit and loss account ( 5,077,208) ( 3,401,958)
_______ _______
Shareholders funds/(deficit) 210,914 ( 3,113,836)
_______ _______
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 24 March 2025 , and are signed on behalf of the board by:
Mr Stephen Charles Williams
Director
Company registration number: 07473859
Fidelity Supply Chain Solutions
Statement of changes in equity
Period ended 29 December 2023
Called up share capital Share premium account Profit and loss account Total
£ £ £ £
At 1 January 2022 (as previously reported) 200 287,922 ( 296,098) ( 7,976)
Prior period adjustments (see note 11) (-) (-) (421,261) (421,261)
_______ _______ _______ _______
At 1 January 2022 (restated) 200 287,922 ( 717,359) ( 429,237)
Loss for the period ( 2,684,599) ( 2,684,599)
_______ _______ _______ _______
Total comprehensive income for the period - - ( 2,684,599) ( 2,684,599)
At 30 December 2022 (as previously reported) 200 287,922 (3,267,799) (2,979,677)
Prior period adjustments (see note 11) (-) (-) (134,160) (134,160)
_______ _______ _______ _______
At 30 December 2022 (restated) and 31 December 2022 200 287,922 ( 3,401,959) ( 3,113,837)
Loss for the period ( 1,675,249) ( 1,675,249)
_______ _______ _______ _______
Total comprehensive income for the period - - ( 1,675,249) ( 1,675,249)
Issue of shares 5,000,000 - - (-)
_______ _______ _______ _______
At 29 December 2023 5,000,200 287,922 ( 5,077,208) 210,914
_______ _______ _______ _______
Fidelity Supply Chain Solutions
Notes to the financial statements
Period ended 29 December 2023
1. General information
The company is a private company limited by shares, registered in England. The address of the registered office is Unit 1, Orion Close, Mustang Park, Daventry, Northamptonshire, NN11 8NW.
2. Statement of compliance
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and investment properties measured at fair value through profit or loss.The financial statements are prepared in sterling, which is the functional currency of the entity.The financial statements cover the period from 1 January 2023 to 31 December 2023. The company's accounting reference date is 29 December 2023. The directors consider the difference between the accounting reference date and the reported financial period end to be immaterial and that these financial statements present a true and fair view of the company's affairs as at 31 December 2023 and of its profit or loss for the year then ended.
Going concern
The company is an indirect subsidiary of Sadita Holding Company W.L.L. (the "ultimate parent"), an international group. The company's liquidity is managed centrally by Fidelity Fulfilment Holding Company Limited (the "immediate parent") via intercompany loans. In reaching their conclusion, the company's directors have considered the forecasts for the company that they have prepared for the period to 31 December 2027 and: The company made losses in the year to 31 December 2024 and forecasts for 2025 begin to show profits. The directors have considered a range of sensitivities, which they believe adequately address any reasonably foreseeable events and circumstances that may be relevant to the company. Sensitivities considered include the failure to achieve cost and efficiency savings. In all reasonably foreseeable circumstances, it has been concluded that the trading and cash flow forecasts for the company require the support of the ultimate parent, whose cashflows incorporate those of the company, show adequate headroom.
Going concern continued
The company has received a letter of support from Sadita Holding Company W.L.L., the ultimate parent, covering a period of at least 12 months from the date of these financial statements which includes: Not seeking repayment of amounts advanced to the company by the parent and/or other members of the group; Advancing further amounts to the company as required by the company. The directors believe that the ultimate parent's audited financial statements for the year ended 31 December 2023 indicate a strong balance sheet and the 2024 unaudited results for the group headed by the ultimate parent show the group continued to make a profit. There are no risks identified that would threaten the group's ability to continue as a going concern and that the group had sufficient liquid assets to meet its liabilities as they fall due in all reasonably foreseeable events and circumstances. The directors are satisfied that this position remains largely unchanged through to the date of approval of these financial statements and there remains sufficient liquidity throughout the going concern period therefore the directors believe it is appropriate to place reliance on the continued support of the company's ultimate parent. On this basis, the directors of the company believe it is appropriate to continue to adopt the going concern basis of accounting in preparing these financial statements.
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. Critical judgements and estimates The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements. Valuation of investments The company holds an investment in a subsidiary in which the company has a participating interest, including additional loans to this company. The directors have made a critical judgement and assessed the valuation of the investment for impairment. The directors do not believe an impairment charge is required. Dilapidation provision Estimation is required in respect of amounts contractually payable to restore leasehold premises back to their original condition. The directors have obtained professional advice in determining the best estimate of amounts which may become payable should the premises be exited at a future point in time.
Judgements and key sources of estimation uncertainty continued
Useful lives of tangible fixed assets The annual depreciation charge depends primarily on the estimated useful life of the assets. The directors regularly review the useful life of the assets and change it if necessary to reflect current conditions. In determining the useful life management consider technological change, patterns of consumption, physical condition and expected economic utilisation of the asset. Changes in the useful life can have a significant impact on the depreciation charge in the financial period.
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.
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.Current taxThe 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 taxDeferred 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.
Foreign currencies
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit and loss.
Tangible assets
Tangible assets are initially recorded at cost, and is subsequently stated at cost less any accumulated depreciation and any accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost of an asset, less its residual value, over the useful economic life of that asset as follows:
Short leasehold property - over the remaining lease term (formerly 15 years straight line)
Plant and machinery - 20% reducing balance
Fittings fixtures and equipment - 20% reducing balance and computer equipment 3 years straight line
Motor vehicles - 20% reducing balance
Racking - 20% reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
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 and loss.
Investment property
Investment property interest, which is property leased to earn rentals, is initially recognised at the lesser of the fair value of the property or the discounted fair value of the property interest. The investment property is subsequently measured at fair value.
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case the investments are held at cost and assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Leases and lease incentives
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.Lease incentivesThe benefit of rental incentives are recognised as a reduction of the rental expense. The benefit is allocated, on the straight line basis, over the shorter of the lease term or a period ending on a date from which it is expected that the prevailing market rental will be payable.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense. 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.
Borrowing costs related to fixed assets
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in the profit or loss in the period in which they are incurred.
4. Employee numbers
The average number of persons employed by the company during the period amounted to 45 (2022: 41 ).
5. Tangible assets
Short leasehold property Plant and machinery Fixtures, fittings and equipment Motor vehicles Racking Total
£ £ £ £ £ £
Cost
At 31 December 2022 447,101 336,686 628,226 41,082 789,353 2,242,448
Additions 15,158 1,230 45,309 - 49,656 111,353
Transfers 288,565 ( 11,790) ( 310,120) - 33,346 1
_______ _______ _______ _______ _______ _______
At 29 December 2023 750,824 326,126 363,415 41,082 872,355 2,353,802
_______ _______ _______ _______ _______ _______
Depreciation
At 31 December 2022 60,933 98,912 240,502 - 173,769 574,116
Charge for the year 47,171 40,199 64,333 7,505 123,002 282,210
Transfers 71,003 ( 1,568) ( 74,059) - 4,624 -
Impairment losses - 37,831 16,478 - - 54,309
_______ _______ _______ _______ _______ _______
At 29 December 2023 179,107 175,374 247,254 7,505 301,395 910,635
_______ _______ _______ _______ _______ _______
Carrying amount
At 29 December 2023 571,717 150,752 116,161 33,577 570,960 1,443,167
_______ _______ _______ _______ _______ _______
At 30 December 2022 386,168 237,774 387,724 41,082 615,584 1,668,332
_______ _______ _______ _______ _______ _______
6. Investments
Shares in group undertakings and participating interests Investment property
£ £
Cost or valuation
At 31 December 2022 461,209 4,139,962
Disposals ( 461,207) -
Revaluations - ( 321,848)
_______ _______
At 29 December 2023 2 3,818,114
_______ _______
Impairment
At 31 December 2022 461,207 -
Disposals ( 461,207) -
_______ _______
At 29 December 2023 - -
_______ _______
Carrying amount
At 29 December 2023 2 3,818,114
_______ _______
At 30 December 2022 2 4,139,962
_______ _______
The company purchased BKS Logistics Limited during the previous year. The business in the company was hived into Fidelity Supply Chain Solutions Ltd. The investment was fully impaired in the previous year due to the company no longer operating. The investment in BKS Logistics Limited was disposed of in these financial statements because the company was dissolved on 21 November 2023.
7. Debtors
Debtors falling due within one year are as follows:
29/12/23 30/12/22
£ £
Trade debtors 590,533 536,265
Amounts owed by group undertakings and undertakings in which the company has a participating interest 462,342 434,140
Other debtors 305,694 1,460,364
_______ _______
1,358,569 2,430,769
_______ _______
Debtors falling due after one year are as follows:
29/12/23 30/12/22
£ £
Other debtors 1,237,896 -
_______ _______
8. Creditors: amounts falling due within one year
29/12/23 30/12/22
£ £
Bank loans and overdrafts 20,831 75,458
Trade creditors 645,861 586,879
Amounts owed to group undertakings 1,160,907 240,000
Social security and other taxes 56,520 106,609
Other creditors 685,030 966,537
_______ _______
2,569,149 1,975,483
_______ _______
The obligations under finance leases and hire purchase contracts totalling £480,058 (2022: £537,698) are secured on the assets to which they relate.
9. Creditors: amounts falling due after more than one year
29/12/23 30/12/22
£ £
Bank loans and overdrafts 15,962 32,138
Amounts owed to group undertakings - 4,569,824
Other creditors 4,822,855 5,326,761
_______ _______
4,838,817 9,928,723
_______ _______
The obligations under finance leases and hire purchase contracts totalling £3,966,418(2022: £4,393,486) are secured on the assets to which they relate.
10. Provisions
Dilapidation provision Refund provision Total
£ £ £
At 31 December 2022 172,989 - 172,989
Additions 8,850 146,754 155,604
_______ _______ _______
At 29 December 2023 181,839 146,754 328,593
_______ _______ _______
The dilapidation provision relates to the estimated costs of dilapidations at the end of the lease term for Units 1 and 2 Orion Close, Mustang Park, Daventry, Northamptonshire, NN11 8NW. The lease for Unit 1 commenced on 24 May 2021 and the lease for Unit 2 commenced on 13 January 2020 and both leases were for a 15 year lease term.In accordance with Section 21 of FRS 102, a provision has been recognised for the estimated cost of dilapidations expected to arise at the end of the lease terms. The provision reflects a dilapidation report which estimated the costs required to restore the properties to the condition stipulated in the lease agreements.The total estimated dilapidation cost for Unit 1 is £158,301 and the total cost for Unit 2 is £168,713. These amounts have been discounted to present value using a discount rate of 5% to account for the time value of money over the lease term. The resulting present value of the provision as at 31 December 2023 for Unit 1 is £85,196 (2022: £81,049) and for Unit 2 is £96,643 (2022: £91,940).The discount is being unwound over the lease term for each property and released to the profit or loss account.The company has recognised a further provision of £146,754 for refunds in respect of services rendered. This provision represents managements best estimate of probable outflow of economic benefits resulting from past events.The estimate is based on specific contractual terms and management's assessment of potential future outflow of economic benefits. Key assumptions used in determining the provision involved assessing contracts eligible for refunds based on the duration of services rendered. The timing of the outflow of economic benefits associated with this provision is expected to occur primarily within subsequent financial years.
11. Prior period errors
There were errors that were made in the prior year which has resulted in prior year adjustments. The prior year errors have resulted from the following: During the current year, an error was identified relating to the accounting treatment of a lease incentive received in a prior period. Specifically, upon inception of a lease, a reduced rent period was incorrectly deducted from rental expense in the period the reduction was received. In accordance with FRS 102 Section 1A, lease incentives should be recognised as a reduction of rental expense on a straight-line basis over the lease term. Therefore, a prior year adjustment has been made to restate the comparative financial statements, spreading the lease incentive over the appropriate lease term. During the current year, a review of the lease agreements and associated building alterations revealed that a dilapidation provision, required under FRS 102 Section 1A, had not been recognised in prior periods. Specifically, alterations made to the leased premises shortly after the lease commencement gave rise to a present obligation to restore the property to its original condition at the end of the lease term. Despite the existence of this obligation, no provision was established in the prior year financial statements. Consequently, a prior period adjustment has been made to recognise the dilapidation provision, impacting the comparative figures for assets, liabilities and profit or loss.
The prior, prior period adjustment totalling £421,261 was a result of two errors as follows:
A lease incentive error has resulted in losses brought forward at 1 January 2022 increasing by £398, 735.
Summary of the prior, prior years accounting impact £
Increase in other creditors - due within one year 398,735
_______
A dilapidation provision has resulted in losses brought forward at 1 January 2022 increasing by £22, 526.
Summary of the prior, prior years accounting impact £
Increase in provisions 9,858
Increase in depreciation 12,668
_______
22,526
_______
The prior period adjustment totalling £134,160 was a result of two errors as follows:
A lease incentive error has resulted in losses at 30 December 2022 increasing by £115,426.
Summary of the prior years accounting impact £
Increase in other creditors - due within one year 115,426
_______
A dilapidation provision has resulted in losses at 30 December 2022 increasing by £18,734.
Summary of the prior years accounting impact £
Increase in provisions 8,420
Increase in depreciation 10,314
_______
18,734
_______
12. Called up share capital
Issued, called up and fully paid
29/12/23 30/12/22
No £ No £
Ordinary shares of £ 1.00 each 5,000,200 5,000,200 200 200
_______ _______ _______ _______
Share movements
No £
Ordinary :
At 31 December 2022 200 200
Issue of shares 5,000,000 5,000,000
_______ _______
At 29 December 2023 5,000,200 5,000,200
_______ _______
The company allotted 2,500,000 ordinary shares of £1.00 each to Fidelity Fulfilment Holding Company Limited on the 24th July 2023 and a further 2,500,000 ordinary shares of £1.00 on the 4th December 2023. The total capitalisation of £5,000,000 will be applied to the loan amount between Fidelity Fulfilment Holding Company Limited and Fidelity Supply Chain Solutions Ltd.
13. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year 740,678 740,678
Later than 1 year and not later than 5 years 2,962,712 2,962,712
Later than 5 years 5,431,639 6,172,317
_______ _______
9,135,029 9,875,707
_______ _______
14. Contingent assets and liabilities
The company has identified a potential contingent liability arising from the non-application of Value Added Tax (VAT) on certain intercompany recharges. Management has conducted a comprehensive review of these recharges to assess the potential liability and this review is currently ongoing.Based on preliminary assessments, management estimates that the potential liability relating to the non-charged intra-group VAT on these intercompany recharges will be in excess of £188,000.The ultimate amount of the liability, if any, will depend on the final determination of the VAT treatment of these recharges by the relevant tax authorities. The company will recognise a provision for this liability once a reliable estimate can be determined. Until such time, and given the uncertainties surrounding the final determination, no provision has been recognised in these financial statements.Therefore, the company has a contingent liability in respect of the potential VAT arising from the aforementioned intercompany recharges. The outcome of the ongoing review and any subsequent communication with the tax authorities will determine the final liability.
15. Events after the end of the reporting period
On 23 December 2024, the company allotted 2,000,000 ordinary shares for a total consideration of £2,000,000. The purpose of this issuance was to convert amounts owed by the company to its parent company, Fidelity Fulfilment Holding Company Limited, into share capital.
16. Limitation of auditors liability
There is a limited liability agreement in place with the auditors Emery & Co Accountants Limited, this was approved with a written resolution dated 19 February 2024.
17. Summary audit opinion
The auditor's report for the period dated 27 March 2025 was unqualified.
The senior statutory auditor was Miss Lisa Joanne Emery FCCA for and on behalf of Emery & Co Accountants Limited
18. Related party transactions
During the year, Fidelity Supply Chain Solutions Ltd made purchases of £12,000 (2022: £8,000) from C J Consultancy, a close relation of one of the directors.Included within trade creditors was an amount of £Nil (2022: £1,000) due to C J Consultancy. During the year, Fidelity Supply Chain Solutions Ltd made loans of £88,701 (2022: £Nil) to Make of Buy Groep, a group company. During the year, Fidelity Supply Chain Solutions Ltd received loans of £1,344,644 (2022: £1,072,000) from Sadita (UK) Limited, a group company .During the year, Fidelity Supply Chain Solutions Ltd paid loan interest of £Nil (2022: £114,457) to Sadita (UK) Limited.During the year, Fidelity Supply Chain Solutions Ltd made loan repayments of £Nil (2022: £70,000) to Sadita (UK) Limited.During the year, Fidelity Supply Chain Solutions Ltd novated a loan of £Nil (2022: £3,154,447) from Sadita (UK) Limited to Fidelity Fulfilment Holding Company Limited.During the year, Fidelity Supply Chain Solutions Ltd made payments of £1,343,946 (2022: £Nil) to the shareholders of Make of Buy Groep for a fellow group company to purchase a majority shareholding in Make or Buy Groep.
19. Parent company
Fidelity Supply Chain Solutions Ltd became a subsidiary of Fidelity Fulfilment Holding Company Limited on 13 September 2022, on the same date Sadita (UK) Limited acquired 49% of the shares in Fidelity Fulfillment Holding Company Limited. The company's ultimate parent is Sadita Holding Company W.L.L., a company incorporated in Kuwait. This company heads the largest group in which the results of the company are included. The consolidated financial statements of this company are available to the public and may be obtained from Sadita Holding Company W.L.L., Kuwait City - Fahad Al Salem Street - Al Joun Center - P.O. Box 26332, State of Kuwait.