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FERITECH GLOBAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
Feritech Global Ltd is a private limited company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the company information page.
The presentation currency of the financial statements is the Pound Sterling (£).
2.ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. 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.
The following principal accounting policies have been applied:
The Company has generated a loss after tax of £514,113 in the current year (2022: £380,567 profit) and at the year-end date had net current liabilities of £1,610,938 (2022: £669,633 asset).
Management accounts indicate a further loss for the year to March 2025 of £1m, although of this loss £0.447m relates to a one-off bad debt write off and £0.56m in relation to an aborted asset build (non-recurring). However, with the losses incurred in 2025, the company balance sheet has overall net liabilities at 31 March 2025. Whilst Addtech (ultimate controlling party) has provided a letter of support declaring their intention to provide financial support to the UK company for a period of at least 12 months from the date of signing the 2024 financial statements, no formal deed of undertaking has been issued to confirm the necessary support. The UK Company is forecasting a return to profits in 25/26 however, the Directors recognise that the weakened financial position at March 2025 does create an uncertainty, and have therefore concluded that a material uncertainty exists in relation to events or conditions that may cast significant doubt on the ability of the Company to realise its assets and discharge its liabilities in the normal course of business and, therefore, continue to operate as a going concern. The Directors’ assumptions and outlook assume continued support to finance business operations will be available from the parent company. The financial statements do not reflect the adjustments that would be necessary should the ability of the Company to trade be jeopardised due to the loss of such support.
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FERITECH GLOBAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
2.ACCOUNTING POLICIES (CONTINUED)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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FERITECH GLOBAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
2.ACCOUNTING POLICIES (CONTINUED)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
From 1 January 2023, the following depreciation bases changed:
Plant and machinery changed from 25% reducing balance to 10% straight-line Fixtures and fittings changed from 25% reducing balance to 10% straight-line Computer equipment changed from 25% reducing balance to 10% straight-line The changes were made in order to better reflect the useful life of the assets.
Furthermore, in the prior year the plant and machinery was held at valuation. During the current period, it was decided that these assets should be held at historical cost less impairment for improved reliability of the amounts in the financial statements. Prior year figures have been restated and details of the adjustments carried out can be found in note 16.
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FERITECH GLOBAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
2.ACCOUNTING POLICIES (CONTINUED)
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FERITECH GLOBAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
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FERITECH GLOBAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
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FERITECH GLOBAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
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FERITECH GLOBAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
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FERITECH GLOBAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
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FERITECH GLOBAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
Change in accounting policy
During the year, the company changed its accounting policy for tangible fixed assets from the revaluation model to the cost model, to provide more accurate information and to align with the accounting policies of the new parent company.
The change has been applied retrospectively in accordance with FRS 102. As a result, the revaluation surplus previously recognised has been removed from equity and the assets are now carried at historical cost less accumulated depreciation and impairment.
The effects of the changes are as follows:
Plant and machinery cost as at 1 January 2022 reduced by £1,648,084
Assets under construction cost as at 1 January 2022 increased by £122,843
Revaluation reserve as at 1 January 2022 reduced by £1,063,508
Other comprehensive income for revaluation reduced by £457,494
Depreciation expense in administrative expenses increased by £63,848 Depreciation charge in tangible fixed assets increased by £63,848
Furthermore, as a result of the change in policy, an amendment to the deferred taxation figure is required in the previous year to de-recognise the deferred tax values on revaluation.
The effect of the adjustment is as follows:
Deferred taxation and profit and loss account as at 1 January 2022 increased by £265,877
Deferred taxation movement during the year ended 31 December 2022 decreased by £114,374
Prior year adjustments
After the prior year end, several figures were identified that required adjusting. These relate to credit notes raised post year-end, delivery of assets being delayed and stock values being recognised incorrectly.
The impact of these adjustments has reduced profit in 2022 from £825,584 to £380,567, a movement of £445,017.The figures that have changed materially are turnover reduced by £499,775, trade debtors reduced by £182,930, deferred income increased by £316,845 cost of sales increased by £105,268 and stocks decreased by £105,268.
Comparative figures for the 15 months period ended 31 December 2024 have been restated accordingly for all adjustments noted above.
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FERITECH GLOBAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
The ultimate and immediate parent undertaking is
The qualification in the audit report was as follows:
We were not appointed as auditor of the company until after 31 March 2024 and thus did not observe the
counting of physical inventories at the end of the period. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 March 2024, which are included in the balance sheet at £179,423, by using other audit procedures. As the corresponding figures were unaudited, we were also unable to verify the inventory quantities held at 31 December 2022, which were included in the balance sheet at £133,136.
Consequently, we were unable to determine whether any adjustment to these amounts was necessary.
The audit report also contains the following emphasis of matter:
Material uncertainty related to going concern
We draw attention to note 2.2 in the financial statements, which indicates that the Company is reliant on
continued Group support and, whilst a letter of support has been received, no formal deed of undertaking has been issued to confirm the necessary support. As stated in note 2.2, these events or conditions, along with the other matters as set forth in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
The audit report was signed on 19 May 2025 by
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