Company registration number 03811425 (England and Wales)
FORTRESS TECHNOLOGY (EUROPE) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
FORTRESS TECHNOLOGY (EUROPE) LIMITED
COMPANY INFORMATION
Director
Mr S T Gidman
Company number
03811425
Registered office
Granta Lodge
71 Graham Road
Malvern
Worcestershire
WR14 2JS
Auditor
Kendall Wadley LLP
Granta Lodge
71 Graham Road
Malvern
Worcestershire
WR14 2JS
FORTRESS TECHNOLOGY (EUROPE) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 31
FORTRESS TECHNOLOGY (EUROPE) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

The director presents the strategic report for the year ended 30 September 2024.

Fair review of the business

The group supplies inspection systems (Metal Detection, Checkweighing, X-Ray, Vision) and counting equipment predominantly to the Food and Pharmaceutical markets. The group is part of the Fortress Technology group of companies which is principally a privately owned Canadian enterprise operating in the same market area.

Performance continued to be somewhat challenging for 2024 with a slight improvement over the prior year. Pressures such as staff retention and subsequent recruitment of qualified individuals driven principally by the high wage demands of the industry continue to be a challenge. Confidence in the market is medium to high as we see trends from other industries reporting a delay in orders also being attributed to the economic situation.

Principal risks and uncertainties

The principal risk acceptance and risk management is addressed through a range of policies, procedures and internal controls and is subject to regular review by the senior management team.

With this in mind, the directors consider the principal business risks to be:

 

Group performance

The group performance indicates a decline in turnover of £1,760,273 (18.29%). However, due to Fortress Technology Inc waiving amounts due for trade purchases in the amount of £2,744,856 and slightly reduced overheads, this year has resulted in a profit of £1,293,953. There were some extraordinary costs from the closure of Spare Systems Limited, along with an increase in gross profit, which without the debt forgiveness would have resulted in a greater loss than the two years prior, mainly due to the decrease in turnover.

The major costs are a detailed as follows:

 

 

Again, another challenging year and with a revised recovery plan set for the next 2 years well underway. The Directors remain confident that costs will be reduced while revenue and profit margins increase.

FORTRESS TECHNOLOGY (EUROPE) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Key performance indicators

The board monitors the progress of the group by reference of the following KPI’s.

Future developments

The strategy that has been developed around a number of key areas to address the risks identified above continues in the following areas

The "Global Leadership Team" continues to oversee the UK operation with more hands-on involvement along with bringing the wider organization together to review costs, processes, and markets, creating efficiencies at a global strategic level.

On behalf of the board

Mr S T Gidman
Director
25 March 2025
FORTRESS TECHNOLOGY (EUROPE) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

The director presents his annual report and financial statements for the year ended 30 September 2024.

Principal activities

The principal activity of the company and group continued to be that of the manufacture and supply of inspection systems (Metal Detection, Checkweighing, X-Ray, Vision) and counting equipment predominantly to the Food and Pharmaceutical markets.

Results and dividends

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

No ordinary dividends were paid. The director does not recommend payment of a dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr P Brown
(Resigned 1 April 2024)
Mr S T Gidman
Auditor

The auditor, Kendall Wadley LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr S T Gidman
Director
25 March 2025
FORTRESS TECHNOLOGY (EUROPE) LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

FORTRESS TECHNOLOGY (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FORTRESS TECHNOLOGY (EUROPE) LIMITED
- 5 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of matter - Financial statements prepared on a going concern basis

We draw your attention to note 1.4 in the financial statements, which indicates that the financial statements have been prepared on the going concern basis as the ultimate parent company has confirmed continued support of the United Kingdom operations.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

FORTRESS TECHNOLOGY (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FORTRESS TECHNOLOGY (EUROPE) LIMITED
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

- an understanding of the risk assessment process (including the assessment of the risk of fraud) adopted by the Board is obtained and their attitude to risk ascertained

 

- an assessment of the susceptibility to material mis-statement of the financial statements as a result of management over-ride or fraud is made

 

- it is ensured that the engagement team have, collectively, the appropriate competence, capabilities and skills to be involved in the assignment, are fully briefed and understand the risks specific to the group

FORTRESS TECHNOLOGY (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FORTRESS TECHNOLOGY (EUROPE) LIMITED
- 7 -
Audit response to risks identified

The information obtained through the assessment to risk procedures is reviewed and the following work undertaken:

 

- processes to test the outcomes of our assessment include analytical review, the relevance and accuracy of significant accounting estimates, substantive testing of significant transactions, work to identify unusual or unexpected accounting entries including the testing of journal entries, information disclosed in the financial statements is traced to supporting documentation. In all instances it is acknowledged that material mis-statements that arise from fraud may involve deliberate concealment or collusion and are, therefore, by their very nature harder to detect than those arising from error.

 

- an understanding of the legal and regulatory framework as applicable to the group is obtained together with knowledge of the procedures put in place by the group in order to comply with the same

 

It should be noted that Auditing standards 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

David Farebrother BSc(Hons) BFP ACA
(Senior Statutory Auditor)
For and on behalf of Kendall Wadley LLP
25 March 2025
Chartered Accountants
Statutory Auditor
Granta Lodge
71 Graham Road
Malvern
Worcestershire
WR14 2JS
FORTRESS TECHNOLOGY (EUROPE) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
7,862,751
9,623,024
Cost of sales
4
(1,776,657)
(5,956,490)
Gross profit
6,086,094
3,666,534
Administrative expenses
(4,754,340)
(4,764,640)
Operating profit/(loss)
5
1,331,754
(1,098,106)
Interest receivable and similar income
9
2,716
1,431
Interest payable and similar expenses
10
(40,517)
(46,064)
Profit/(loss) before taxation
1,293,953
(1,142,739)
Tax on profit/(loss)
12
-
0
(57,100)
Profit/(loss) for the financial year
1,293,953
(1,199,839)
Profit/(loss) for the financial year is all attributable to the owner of the parent company.
FORTRESS TECHNOLOGY (EUROPE) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
£
£
Profit/(loss) for the year
1,293,953
(1,199,839)
Other comprehensive income
-
-
Total comprehensive income for the year
1,293,953
(1,199,839)
Total comprehensive income for the year is all attributable to the owner of the parent company.
FORTRESS TECHNOLOGY (EUROPE) LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
13
-
0
509,846
Other intangible assets
13
12,646
31,506
Total intangible assets
12,646
541,352
Tangible assets
14
440,227
552,592
452,873
1,093,944
Current assets
Stocks
17
2,826,201
2,874,704
Debtors falling due after more than one year
18
92,000
92,000
Debtors falling due within one year
18
2,159,483
1,771,412
Cash at bank and in hand
411,815
345,383
5,489,499
5,083,499
Creditors: amounts falling due within one year
19
(1,318,809)
(4,884,822)
Net current assets
4,170,690
198,677
Total assets less current liabilities
4,623,563
1,292,621
Creditors: amounts falling due after more than one year
20
(6,080,086)
(4,043,097)
Net liabilities
(1,456,523)
(2,750,476)
Capital and reserves
Called up share capital
23
1,000
1,000
Share premium account
499,100
499,100
Profit and loss reserves
(1,956,623)
(3,250,576)
Total equity
(1,456,523)
(2,750,476)
The financial statements were approved by the board of directors and authorised for issue on 25 March 2025 and are signed on its behalf by:
25 March 2025
Mr S T Gidman
Director
Company registration number 03811425 (England and Wales)
FORTRESS TECHNOLOGY (EUROPE) LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
13
12,645
15,436
Tangible assets
14
440,228
533,489
Investments
15
32,020
2,481,961
484,893
3,030,886
Current assets
Stocks
17
2,821,074
1,195,120
Debtors falling due after more than one year
18
92,000
92,000
Debtors falling due within one year
18
1,679,839
1,131,375
Cash at bank and in hand
383,411
242,635
4,976,324
2,661,130
Creditors: amounts falling due within one year
19
(1,288,657)
(6,227,724)
Net current assets/(liabilities)
3,687,667
(3,566,594)
Total assets less current liabilities
4,172,560
(535,708)
Creditors: amounts falling due after more than one year
20
(6,080,086)
(4,043,097)
Net liabilities
(1,907,526)
(4,578,805)
Capital and reserves
Called up share capital
23
1,000
1,000
Share premium account
499,100
499,100
Profit and loss reserves
(2,407,626)
(5,078,905)
Total equity
(1,907,526)
(4,578,805)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit/(loss) and total comprehensive income for the year were £2,671,278 (2023 - £1,939,848) and £2,671,278 (2023 - £1,939,848), respectively.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 25 March 2025 and are signed on its behalf by:
25 March 2025
Mr S T Gidman
Director
Company registration number 03811425 (England and Wales)
FORTRESS TECHNOLOGY (EUROPE) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2022
1,000
499,100
(2,050,737)
(1,550,637)
Year ended 30 September 2023:
Loss and total comprehensive income for the year
-
-
(1,199,839)
(1,199,839)
Balance at 30 September 2023
1,000
499,100
(3,250,576)
(2,750,476)
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
-
1,293,953
1,293,953
Balance at 30 September 2024
1,000
499,100
(1,956,623)
(1,456,523)
FORTRESS TECHNOLOGY (EUROPE) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2022
1,000
499,100
(3,139,057)
(2,638,957)
Year ended 30 September 2023:
Loss and total comprehensive income for the year
-
-
(1,939,848)
(1,939,848)
Balance at 30 September 2023
1,000
499,100
(5,078,905)
(4,578,805)
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
-
2,671,279
2,671,279
Balance at 30 September 2024
1,000
499,100
(2,407,626)
(1,907,526)
FORTRESS TECHNOLOGY (EUROPE) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
27
(1,604,957)
(243,576)
Interest paid
(40,517)
(46,064)
Net cash outflow from operating activities
(1,645,474)
(289,640)
Investing activities
Purchase of intangible assets
-
(11,040)
Purchase of tangible fixed assets
(4,178)
(71,304)
Receipts arising from loans made
-
206,388
Interest received
2,716
1,431
Net cash (used in)/generated from investing activities
(1,462)
125,475
Financing activities
Increase in group borrowing
1,713,368
-
Net cash generated from/(used in) financing activities
1,713,368
-
Net increase/(decrease) in cash and cash equivalents
66,432
(164,165)
Cash and cash equivalents at beginning of year
345,383
509,548
Cash and cash equivalents at end of year
411,815
345,383
FORTRESS TECHNOLOGY (EUROPE) LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
28
(2,561,858)
(187,380)
Interest paid
(40,517)
(46,064)
Income taxes (paid)/refunded
-
214,697
Net cash outflow from operating activities
(2,602,375)
(18,747)
Investing activities
Purchase of intangible assets
-
0
(15,436)
Purchase of tangible fixed assets
(4,178)
(70,673)
Receipts arising from loans made
-
206,388
Interest received
2,715
1,428
Net cash (used in)/generated from investing activities
(1,463)
121,707
Financing activities
Increase in group borrowings
2,744,614
-
0
Net cash generated from/(used in) financing activities
2,744,614
-
Net increase in cash and cash equivalents
140,776
102,960
Cash and cash equivalents at beginning of year
242,635
139,675
Cash and cash equivalents at end of year
383,411
242,635
FORTRESS TECHNOLOGY (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
1
Accounting policies
Company information

Fortress Technology (Europe) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Granta Lodge, 71 Graham Road, Malvern, Worcestershire, WR14 2JS.

 

The group consists of Fortress Technology (Europe) Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Fortress Technology (Europe) Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group of which this company forms part has adequate resources to continue in operational existence for the foreseeable future. The ultimate parent company has confirmed continued support of the United Kingdom operations, it is on this premise that the going concern basis of accounting is adopted in the preparation of these financial statements.

FORTRESS TECHNOLOGY (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.5
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
Over 5 years on cost
Patents & licences
Over 1-5 years on cost
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
Over the life of the lease (15 years)
Plant and equipment
15% straight line
Fixtures and fittings
33% straight line
Motor vehicles
25% straight line

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 recognised in the profit and loss account.

FORTRESS TECHNOLOGY (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

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

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss.

1.12
Cash and cash equivalents

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

1.13
Financial instruments

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

 

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

 

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

FORTRESS TECHNOLOGY (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

FORTRESS TECHNOLOGY (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.14
Equity instruments

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

1.15
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.16
Employee benefits

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

 

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

 

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

1.17
Retirement benefits

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

1.18
Leases

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 leased asset are consumed.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

FORTRESS TECHNOLOGY (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Machines
4,659,155
7,964,004
Spare parts
2,623,239
979,963
Service
425,592
366,025
Repairs
49,611
130,913
Other
105,154
182,119
7,862,751
9,623,024
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
3,172,611
3,682,265
European Area
3,802,729
4,325,979
Rest of the World
887,411
1,614,780
7,862,751
9,623,024
2024
2023
£
£
Other revenue
Interest income
2,716
1,431
4
Exceptional item
2024
2023
£
£
Income
-
-
Expenditure
Exceptional item - Cost of sales
(2,744,856)
-
(2,744,856)
-
FORTRESS TECHNOLOGY (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
4
Exceptional item
(Continued)
- 22 -

The parent company, Fortress Technology Inc., has waived amounts due in respect of trade purchases. This has resulted in an exceptional reduction to cost of sales of £2,744,856 as shown above.

5
Operating profit/(loss)
2024
2023
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(93,737)
(136,217)
Depreciation of owned tangible fixed assets
116,543
124,327
Amortisation of intangible assets
18,860
139,038
Impairment of intangible assets
509,846
-
0
Operating lease charges
266,390
265,974
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
13,500
12,390
Audit of the financial statements of the company's subsidiaries
10,750
12,083
24,250
24,473
7
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
83
97
68
73
FORTRESS TECHNOLOGY (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
7
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,199,085
3,522,821
2,817,730
2,847,887
Social security costs
327,958
355,334
302,654
294,314
Pension costs
86,805
104,799
74,539
72,220
3,613,848
3,982,954
3,194,923
3,214,421
8
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
40,793
80,614
Company pension contributions to defined contribution schemes
1,224
2,418
42,017
83,032
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
2,716
1,431
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,716
1,431
10
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
40,517
46,011
Other finance costs:
Other interest
-
53
Total finance costs
40,517
46,064
FORTRESS TECHNOLOGY (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
11
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Goodwill
13
509,846
-
Recognised in:
Administrative expenses
509,846
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

12
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
-
0
57,100

The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit/(loss) before taxation
1,293,953
(1,142,739)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
323,488
(217,120)
Tax effect of expenses that are not deductible in determining taxable profit
345
273
Tax effect of utilisation of tax losses not previously recognised
(495)
-
0
Depreciation on assets not qualifying for tax allowances
9,030
5,617
Under/(over) provided in prior years
-
0
57,100
Amortisation of goodwill on consolidation
127,462
21,933
Unequalised timing differences
(459,830)
189,297
Taxation charge
-
57,100
FORTRESS TECHNOLOGY (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
13
Intangible fixed assets
Group
Goodwill
Software
Patents & licences
Total
£
£
£
£
Cost
At 1 October 2023
2,145,495
141,885
15,436
2,302,816
Disposals
-
0
(138,922)
-
0
(138,922)
At 30 September 2024
2,145,495
2,963
15,436
2,163,894
Amortisation and impairment
At 1 October 2023
1,635,649
125,816
-
0
1,761,465
Amortisation charged for the year
-
0
15,773
3,087
18,860
Impairment losses
509,846
-
0
-
0
509,846
Disposals
-
0
(138,923)
-
0
(138,923)
At 30 September 2024
2,145,495
2,666
3,087
2,151,248
Carrying amount
At 30 September 2024
-
0
297
12,349
12,646
At 30 September 2023
509,846
16,069
15,436
541,352
Company
Software
Patents & licences
Total
£
£
£
Cost
At 1 October 2023
-
0
15,436
15,436
Transfers
2,963
-
0
2,963
At 30 September 2024
2,963
15,436
18,399
Amortisation and impairment
At 1 October 2023
-
0
-
0
-
0
Amortisation charged for the year
-
0
3,087
3,087
Transfers
2,667
-
0
2,667
At 30 September 2024
2,667
3,087
5,754
Carrying amount
At 30 September 2024
296
12,349
12,645
At 30 September 2023
-
0
15,436
15,436

More information on impairment movements in the year is given in note 11.

FORTRESS TECHNOLOGY (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
14
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
102,300
1,210,403
193,188
14,000
1,519,891
Additions
-
0
-
0
4,178
-
0
4,178
Disposals
(102,300)
(408,617)
-
0
-
0
(510,917)
At 30 September 2024
-
0
801,786
197,366
14,000
1,013,152
Depreciation and impairment
At 1 October 2023
98,834
702,289
154,176
12,000
967,299
Depreciation charged in the year
3,466
75,608
36,469
1,000
116,543
Eliminated in respect of disposals
(102,300)
(408,617)
-
0
-
0
(510,917)
At 30 September 2024
-
0
369,280
190,645
13,000
572,925
Carrying amount
At 30 September 2024
-
0
432,506
6,721
1,000
440,227
At 30 September 2023
3,466
508,114
39,012
2,000
552,592
Company
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2023
770,344
193,188
3,000
966,532
Additions
-
0
4,178
-
0
4,178
Group transfers
-
0
31,441
-
0
31,441
At 30 September 2024
770,344
228,807
3,000
1,002,151
Depreciation and impairment
At 1 October 2023
277,867
154,176
1,000
433,043
Depreciation charged in the year
70,816
36,469
1,000
108,285
Group transfers
-
0
20,595
-
0
20,595
At 30 September 2024
348,683
211,240
2,000
561,923
Carrying amount
At 30 September 2024
421,661
17,567
1,000
440,228
At 30 September 2023
492,477
39,012
2,000
533,489
FORTRESS TECHNOLOGY (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
32,020
2,481,961
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023 and 30 September 2024
2,481,961
Impairment
At 1 October 2023
-
Impairment losses
2,449,941
At 30 September 2024
2,449,941
Carrying amount
At 30 September 2024
32,020
At 30 September 2023
2,481,961
16
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Sparc Malvern Limited
England & Wales
Ordinary share capital
100.00
Sparc Systems Limited
England & Wales
Ordinary share capital
100.00
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,373,784
1,616,529
1,373,784
120,179
Work in progress
182,501
251,081
177,374
67,847
Finished goods and goods for resale
1,269,916
1,007,094
1,269,916
1,007,094
2,826,201
2,874,704
2,821,074
1,195,120
FORTRESS TECHNOLOGY (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 28 -
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,764,525
1,426,756
1,322,823
892,006
Amounts owed by group undertakings
-
5,302
-
-
Other debtors
177,133
155,470
139,444
150,470
Prepayments and accrued income
217,825
183,884
217,572
88,899
2,159,483
1,771,412
1,679,839
1,131,375
Amounts falling due after more than one year:
Prepayments and accrued income
92,000
92,000
92,000
92,000
Total debtors
2,251,483
1,863,412
1,771,839
1,223,375
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Payments received on account
21,058
143,481
-
0
-
0
Trade creditors
484,262
501,165
481,833
328,988
Amounts owed to group undertakings
-
0
3,755,835
-
0
5,468,820
Other taxation and social security
77,943
94,178
77,943
67,709
Deferred income
21
595,116
127,021
595,116
127,021
Other creditors
32,550
13,340
32,550
13,340
Accruals and deferred income
107,880
249,802
101,215
221,846
1,318,809
4,884,822
1,288,657
6,227,724
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Amounts owed to group undertakings
5,951,286
4,043,097
5,951,286
4,043,097
Accruals and deferred income
128,800
-
0
128,800
-
0
6,080,086
4,043,097
6,080,086
4,043,097
FORTRESS TECHNOLOGY (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
21
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Other deferred income
595,116
127,021
595,116
127,021
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
86,805
104,799

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
265,785
320,983
265,785
234,670
Between two and five years
938,259
970,972
938,259
920,000
In over five years
460,000
690,000
460,000
690,000
1,664,044
1,981,955
1,664,044
1,844,670

The parent company, Fortress Technology Inc., has provided a guarantee in respect of a rental agreement on one of the properties occupied. At 30 September 2024 the total commitment due under that lease and included above is £1,610,000 (2023 - £1,840,000).

FORTRESS TECHNOLOGY (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 30 -
25
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
343,332
334,765
26
Controlling party

The company's parent is Fortress Technology Inc. Consolidated financial statements can be obtained from the registered office of that organisation, 51 Marshall Drive, Scarborough, Ontario, Canada M1B 5NS. As the company is a wholly owned subsidiary it has taken advantage of the exemption not to disclose related party transactions between itself and other members of the group.

27
Cash absorbed by group operations
2024
2023
£
£
Profit/(loss) for the year after tax
1,293,953
(1,199,839)
Adjustments for:
Taxation charged
-
0
57,100
Finance costs
40,517
46,064
Investment income
(2,716)
(1,431)
Amortisation and impairment of intangible assets
528,706
139,038
Depreciation and impairment of tangible fixed assets
116,543
124,327
Other gains and losses
(3,561,014)
-
Movements in working capital:
Decrease in stocks
48,503
428,784
(Increase)/decrease in debtors
(388,071)
348,993
Decrease in creditors
(149,473)
(155,900)
Increase/(decrease) in deferred income
468,095
(30,712)
Cash absorbed by operations
(1,604,957)
(243,576)
FORTRESS TECHNOLOGY (EUROPE) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 31 -
28
Cash absorbed by operations - company
2024
2023
£
£
Profit/(loss) for the year after tax
2,671,279
(1,939,848)
Adjustments for:
Taxation credited
(64,928)
(214,697)
Finance costs
40,517
46,064
Investment income
(2,715)
(1,428)
Amortisation and impairment of intangible assets
3,087
-
Depreciation and impairment of tangible fixed assets
108,285
112,910
Other gains and losses
2,504,352
-
Trade liability waived
(6,305,870)
Movements in working capital:
Increase in stocks
(1,625,954)
(30,146)
(Increase)/decrease in debtors
(548,464)
27,306
Increase in creditors
190,458
1,843,171
Increase/(decrease) in deferred income
468,095
(30,712)
Cash absorbed by operations
(2,561,858)
(187,380)
29
Analysis of changes in net funds - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
345,383
66,432
411,815
30
Analysis of changes in net funds - company
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
242,635
140,776
383,411
2024-09-302023-10-01falsefalseCCH SoftwareCCH Accounts Production 2025.100Mr S T GidmanMr S T 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