Registration number:
for the
Year Ended 31 October 2024
Ford Fuels (Holdings) Limited
Contents
|
Company Information |
|
|
Strategic Report |
|
|
Directors' Report |
|
|
Statement of Directors' Responsibilities |
|
|
Independent Auditor's Report |
|
|
Consolidated Profit and Loss Account |
|
|
Consolidated Balance Sheet |
|
|
Balance Sheet |
|
|
Consolidated Statement of Changes in Equity |
|
|
Statement of Changes in Equity |
|
|
Notes to the Financial Statements |
Ford Fuels (Holdings) Limited
Company Information
|
Directors |
A J Ford J D Ford M Ford R J Bowers T Croker (née Ford) |
|
Company secretary |
J D Ford |
|
Registered office |
|
|
Auditors |
|
Ford Fuels (Holdings) Limited
Strategic Report for the Year Ended 31 October 2024
The directors present their strategic report for the year ended 31 October 2024.
Principal activity
The principal activity of the group is the sale and distribution of petroleum products. The principal activity of the Company is that of a holding company, providing debt finance.
Fair review of the business
The results for the year, which are set out in the profit and loss account, show turnover for the year of
£262,232,827 (2023 - £273,646,412) and a pre-tax profit of £4,499,525 (2023 - £2,727,551). Dividends were paid
during the year of £2,062,468 (2023 - £6,868,060).
The fall in turnover is due to the reduced commodity price of oil products, with underlying volumes having improved for the year. Profit margins have improved during the year.
The directors are pleased with the results of for the year end and consider that the financial position of the group at year-end is satisfactory.
Key performance indicators
Given the nature of the business, the group's directors are of the opinion that key performance indicators are important. The group uses a number of indicators to monitor and improve the development, performance and position of the business. Indicators are reviewed and altered to meet changes in the internal and external environments.
The group's key financial and other performance indicators during the year were as follows:
|
Unit |
2024 |
2023 |
|
|
Tangible fixed assets |
£ |
10,838,037 |
10,872,712 |
|
Stocks |
£ |
4,291,484 |
4,512,056 |
|
Trade debtors |
£ |
24,663,846 |
26,168,731 |
|
Trade creditors |
£ |
26,387,112 |
28,295,921 |
|
Net funds * |
£ |
(2,779,778) |
(4,609,092) |
*Net funds comprise cash at bank and in hand net of preference shares and other loans, excluding finance leases.
Tangible fixed assets have increased as the group continues to modernise the fleet which has the benefit of minimising emissions and complying with various local restrictions. There has been significant investment in supporting infrastructure to enable the planned growth.
Net funds have increased due to the net profit made after deduction of dividends paid for the year.
Ford Fuels (Holdings) Limited
Strategic Report for the Year Ended 31 October 2024
Future developments
The Directors are looking to remain competitive in 2025 and will explore options of expansion through both acquisition and organic growth.
The group believes that the key drivers for its success are the continual focus on excellent customer service, reliable delivery and fair pricing, as well as a strong control over the business.
The directors believe that the group is well positioned to manage risk and prosper during the period due to its:
• Committed workforce.
• Broad spectrum of customers.
• Continued investment in staff development, best practice, modern processes and systems.
• Positive approach to meeting global environmental challenges.
The directors recognise the impact that global factors such as high energy prices and geopolitics can have on both the group and the wider economy. The group supplies a full range of fuel and lubricant products and also provides heating services to domestic households, the agricultural sector, and industry in general. This supply of commodity products to a broad and diverse customer base means that the business is not significantly exposed to any sector specific risk. We recognise the importance of being able to respond quickly and decisively to external challenges and believe we have the team and structure in place to be able to do so. Operations continue to be positive and cash flow reflects that trend. The directors are forecasting that, based on the information and circumstances currently available to them, this will continue for the foreseeable future.
The group has minimal external debt and the financial resources available are sufficient to meet the business' obligations as they fall due. Given these factors, the directors are confident that the group’s strong balance sheet position, together with the enactment of the business continuity plan should it be required, puts the business in a robust financial position during these uncertain times.
The directors fully support the development of staff and look to promote from within the organisation wherever possible. To that end the group supplements the training budget with the apprenticeship levy to invest not only in apprentices but also the management and vocational skills., to enable more internal promotion and advancement. As a result, staff turnover is at a low and healthy level.
As a supplier of fossil fuels, the group is conscious of our environmental obligations and alongside the traditional products of kerosene and red and white diesel we have continued to invest in renewable products such as hydrotreated vegetable oil (HVO).
The group also offers a carbon offset option to customers. This offsets the carbon emitted in the manufacture and use of the product with an equal amount of carbon emission savings by supporting projects around the globe.
Principal risks and uncertainties
In common with most UK businesses, inflationary pressure in the economy and its impact on the broader economic outlook will present potential risks and challenges to the business. In addition the sector specific risks of driver shortages and issues with fuel pricing and availability remain present.
The directors believe that the company is well placed to respond to these risks by differentiating our business from that of competitors through improved customer services and investment in enhanced information systems, together with measures being implemented to recruit, train and retain the best driving talent.
Risks in relation to financial instruments are detailed in the Directors' Report.
Going concern
The group has sufficient financial resources available and continues to trade profitably generating cash. The directors expect that these trends will continue. The directors therefore have reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.
Approved by the
Director
Ford Fuels (Holdings) Limited
Directors' Report for the Year Ended 31 October 2024
The directors present their report and the consolidated financial statements for the year ended 31 October 2024.
Directors of the company
The directors who held office during the year were as follows:
J D Ford
A J Ford
M Ford
R J Bowers
T Croker (née Ford)
S172 Statement
The Directors of the group are required to promote the success of the group for the benefit of the Members / Shareholders as a whole. Section 172(1) of the Companies Act 2006) expands this duty and requires the Directors to consider a broader range of interested parties when considering the promotion of the group. This wider group of stakeholders will include employees, customers, regulators and others, and the Board will look to understand and take into account the needs of each stakeholder whilst recognising that different stakeholders may have conflicting priorities and not all decisions made will be to the benefit of all stakeholder groups.
When making decisions the Board should consider the following:
• the likely consequences of any decisions in the long-term;
• the interests of the Company’s employees (as applicable);
• the need to foster the Company’s business relationships with suppliers, customers and others;
• the impact of the Company’s operations on the community and environment;
• the desirability of the Company maintaining a reputation for high standards of business conduct, and
• the need to act fairly as between members of the Company.
The directors believe that they have effectively implemented their duties under section 172 of the Companies Act 2006. At every Board meeting the Directors review the performance of the group against its strategy. The financial performance is reviewed and measured against the Key Performance Indicators as set by the Board. The compliance with existing legal and regulatory requirements are reviewed, together with any new regulations that are to be introduced or are being proposed. Any new regulations are discussed and their potential impact on the group and its stakeholders assessed. The Board recognises the importance of, and is committed to, understanding the views of Shareholders and maintaining communication with its Shareholders in the most appropriate manner.
Streamlined Energy and Carbon Reporting
|
2024 |
2023 |
|
|
Scope 1 emissions |
2,895,513 |
2,858,684 |
|
Scope 2 emissions |
56,169 |
60,743 |
|
2,951,682 |
2,919,427 |
|
Intensity measurement - Tonnes of C02e per £1m revenue |
0.1 |
0.1 |
The report data has been collated internally and CO2e have been calculated using average prices per kwh of energy and price per litre of fuel taken from supplier invoices. CO2e has been calculated using the National Energy Foundation Carbon Calculator.
We have reported on the emissions sources required under the Companies Act 2006 (Strategic Report and Directors' Reports) Regulations 2013 apart from the exclusions noted. The reported sources fall within our Consolidated Financial Statements and are for emissions over which we have financial control. We do not have responsibility for any emissions sources that are not included in our consolidated statements.
The group takes very seriously the effect of carbon emissions on the planet and our carbon footprint. We have endeavoured in the past, and will continue in the future, to reduce our emissions wherever possible.
Ford Fuels (Holdings) Limited
Directors' Report for the Year Ended 31 October 2024
We have for many years put solar panels on our properties and have this year generated 64,500 kwh. We have also continued to invest in our fleet in more energy efficient vehicles both with the HGV fleet where all new vehicles are Euro 6 compliant and with electric vehicles in the car fleet.
There has also been continued investment in technology and training of staff in planning optimal routes for our delivery vehicles which reduce vehicle miles and therefore reduce emissions. We also continue to enable working from home for staff through investment in IT and change to process to avoid commuter miles where practical.
In prior years, the group also invested in water harvesting equipment which has significantly reduced the amount of mains water used.
Dividends
Dividends of £2,062,468 (2023 - £6,868,060) were paid during the year.
Information included in the Strategic Report
Disclosure regarding future developments is covered in the strategic report.
Financial Instruments
The group's financial instruments comprise cash and liquid resources, and various other items such as trade debtors and trade creditors etc. that arise directly from its operations. The main purpose of these financial instruments is to finance the operations of the group. The main risks arising from the group's financial instruments are set out below.
Price risk:
Price risk is the risk that the fair value of a financial asset will fluctuate because of changes in market prices (other than those due to interest rates and currency). The group has limited exposure as it does not hold any financial instruments at fair value.
Credit risk:
Credit risk refers to a risk that a counterparty will default on its contractual obligations resulting in a financial loss to the group.
The group’s principal financial assets are bank balances and cash and trade and other receivables. The group’s credit risk is primarily attributable to its trade receivables. The group's policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. The amounts presented in the balance sheet are, where appropriate, net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
Liquidity risk:
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.
The group aims to mitigate liquidity risk by managing cash generation by its operations, applying cash collection targets and constantly monitors the group's trading results to ensure that the group can meet its future obligations as they fall due.
Cash flow risk:
Cash flow risk is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability such as future interest payments on a variable rate loans or changes in exchange rates.
The group has limited exposure to exchange rate risk, by virtue of the limited transactions in foreign currency. The impact of potential future increases in the cost of finance is mitigated by outstanding finance leases and hire purchase contracts being arranged at fixed interest rates for the term of the agreement.
Disclosure of information to the auditor
Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Ford Fuels (Holdings) Limited
Directors' Report for the Year Ended 31 October 2024
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
Director
Ford Fuels (Holdings) Limited
Statement of Directors' Responsibilities
The directors are responsible for preparing the Strategic Report, 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 year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company and of the profit or loss of the group and company for that period. In preparing these financial statements, the directors are required to:
• | select suitable accounting policies and apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Ford Fuels (Holdings) Limited
Independent Auditor's Report to the Members of Ford Fuels (Holdings) Limited
Opinion
We have audited the financial statements of Ford Fuels (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 2024 and of the group's profit for the year then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standards, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the audited financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
|
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
|
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
Ford Fuels (Holdings) Limited
Independent Auditor's Report to the Members of Ford Fuels (Holdings) Limited
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 7, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
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.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We considered the nature of the parent company’s industry and its control environment and reviewed the parent company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty, such as compliance with RDCO legislation.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
|
• |
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
|
• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; |
|
• |
enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
Ford Fuels (Holdings) Limited
Independent Auditor's Report to the Members of Ford Fuels (Holdings) Limited
|
• |
reading minutes of meetings of those charged with governance. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of this 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.
For and on behalf of
Staverton Court
Staverton
GL51 0UX
Ford Fuels (Holdings) Limited
Consolidated Profit and Loss Account for the Year Ended 31 October 2024
|
Note |
2024 |
2023 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Operating profit |
|
|
|
|
Interest payable and similar charges |
( |
( |
|
|
Profit before tax |
|
|
|
|
Taxation |
( |
( |
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The group has no recognised gains or losses for the year other than the results above.
Ford Fuels (Holdings) Limited
(Registration number: 09532415)
Consolidated Balance Sheet as at 31 October 2024
|
Note |
2024 |
2023 |
|
|
Fixed assets |
|||
|
Intangible assets |
|
|
|
|
Tangible assets |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
5,863,065 |
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Capital redemption reserve |
|
- |
|
|
Profit and loss account |
|
|
|
|
Total equity |
|
|
Approved and authorised by the
Director
Ford Fuels (Holdings) Limited
(Registration number: 09532415)
Balance Sheet as at 31 October 2024
|
Note |
2024 |
2023 |
|
|
Fixed assets |
|||
|
Investments |
|
|
|
|
Current assets |
|||
|
Cash at bank and in hand |
- |
- |
|
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current liabilities |
( |
( |
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
|
|
|
|
Capital redemption reserve |
|
- |
|
|
Profit and loss account |
|
|
|
|
Total equity |
|
|
The company made a profit after tax for the financial year of £2,121,705 (2023 - £7,192,934).
Approved and authorised by the Board on 22 May 2025 and signed on its behalf by:
.........................................
J D Ford
Director
Ford Fuels (Holdings) Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 October 2024
Equity attributable to the parent company
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
|
At 1 November 2022 |
|
- |
|
|
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
At 31 October 2023 |
4,896 |
- |
5,083,173 |
5,088,069 |
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
|
At 1 November 2023 |
|
- |
|
|
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
Purchase of own share capital |
- |
84,000 |
(84,000) |
- |
|
At 31 October 2024 |
|
|
|
|
Ford Fuels (Holdings) Limited
Statement of Changes in Equity for the Year Ended 31 October 2024
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
|
At 1 November 2022 |
|
- |
- |
|
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
At 31 October 2023 |
4,896 |
- |
324,874 |
329,770 |
|
Share capital |
Capital redemption reserve |
Profit and loss account |
Total |
|
|
Opening total equity |
4,896 |
- |
324,874 |
329,770 |
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
Purchase of own share capital |
- |
84,000 |
(84,000) |
- |
|
At 31 October 2024 |
|
|
|
|
Ford Fuels (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
There are no cash flow movements in the company, therefore no company cash flow has been presented.
Going concern
After reviewing the group and company's forecasts and projections, the directors have a reasonable expectation that the group and company has adequate resources to continue in operational existence for the foreseeable future. The group and company therefore continues to adopt the going concern basis in preparing its financial statements.
Critical accounting judgements and key source of estimation uncertainty
In the application of the group and company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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. |
Judgements
No significant judgements have been identified by management in preparing these financial statements.
Key sources of estimation uncertainty
No key sources of uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.
Ford Fuels (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 October 2024.
No profit and loss account is presented for the company as permitted by section 408 of the Companies Act 2006.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of the subsidiaries acquired during the current and prior year are included in the Profit and Loss Account under the acquisition accounting method. The results and cashflows of all the combining entities are brought into the group financial statements from the date of acquisition.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
The results of the subsidiary acquired by way of group reconstruction during 2016 are included in the Profit and Loss Account under the merger accounting method. The results and cashflows of all the combining entities are brought into the group financial statements from the beginning of the financial year in which the combination occurred and the comparatives restated by including the total comprehensive income for all the combining entities for the previous reporting period and their statement of financial position. Any merger expenses are charged to the statement of comprehensive income as part of the Profit and Loss of the group at the effective date of the group reconstruction.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Revenue is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group. The group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits can be consider that the risks and rewards of ownership pass when products are delivered to customers and when services are performed and it is at this point revenue is recognised.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Ford Fuels (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Intangible assets
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
Straight line over 5 years |
Tangible assets
Tangible assets other than freehold land are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Freehold land |
Nil |
|
Freehold buildings |
2% of cost |
|
Leasehold buildings |
4% of cost or term of lease |
|
Plant and equipment |
15% of written down value |
|
Fixtures and fittings |
15% of written down value |
|
Computer equipment |
25% of cost |
|
Cars and vans |
25% of written down value |
|
Tankers |
Straight line over 10 years to residual value of £1,000 |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Dividends on securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.
Ford Fuels (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
Stocks
Stock is valued at the lower of cost and net realisable value.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the group has an obligation at the reporting date as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Hire purchase and leasing
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
Assets held under hire purchase agreements are capitalised as tangible fixed assets and are depreciated over the shorter of the lease term and their useful lives. The capital element of future finance payments is included within creditors. Finance charges are allocated to accounting periods over the length of the contract and represent a constant proportion of the balance of capital repayments outstanding.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Redeemable preference shares are classified as a liability and recognised as per the borrowings accounting policy above.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Pensions
The pension costs charged in the financial statements represented the contributions payable by the company to the personal pension schemes during the period. The company contributes to personal pensions on behalf of the employees.
Ford Fuels (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
Financial instruments
Classification
Recognition and measurement
All financial assets and liabilities of the group are measured at amortised cost and their fair value is considered to equate to their carrying value.
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
|
Revenue |
The analysis of the group's Turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sale of goods |
|
|
|
Rendering of services |
|
|
|
|
|
The total turnover of the group for the current year and prior year has been derived from its principle activity wholly undertaken in the United Kingdom.
Ford Fuels (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Operating profit |
Arrived at after charging
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Amortisation of grant capital |
(6,000) |
(6,000) |
|
Operating lease expense - property |
|
|
|
Profit on disposal of property, plant and equipment |
(17,654) |
(30,258) |
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on preference shares |
|
|
|
Interest on obligations under hire purchase contracts |
|
|
|
Interest expense on other borrowings |
|
|
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Administration and support |
|
|
|
Sales, marketing and distribution |
|
|
|
|
|
Company
The company incurred no staff costs and had no employees other than the directors.
Ford Fuels (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration (including benefits in kind) |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
241,941 |
265,727 |
During the year the number of directors who were receiving benefits was as follows:
|
2024 |
2023 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of these financial statements |
5,785 |
5,575 |
|
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
35,715 |
34,425 |
|
|
|
|
|
Other fees to auditors |
||
|
Auditors' remuneration - non audit work |
|
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
2,711 |
- |
|
Total deferred taxation |
|
|
|
Tax expense in the income statement |
|
|
Ford Fuels (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
9 |
Taxation (continued) |
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Remeasurement of deferred tax for changes in tax rate |
- |
|
|
Deferred tax expense from unrecognised temporary difference from a prior period |
|
- |
|
Net tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
|
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
|
2024 |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
( |
|
Short term timing differences |
( |
|
( |
|
2023 |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
( |
|
Short term timing differences |
|
|
( |
Increases in the UK corporation tax rate to 25%, effective from April 2023 was announced and substantively enacted on 24 May 2021.
|
Intangible assets |
Group
Ford Fuels (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
10 |
Intangible assets (continued) |
|
Goodwill |
|
|
Cost |
|
|
At 1 November 2023 and at 31 October 2024 |
|
|
Amortisation |
|
|
At 1 November 2023 |
|
|
Amortisation charge |
|
|
At 31 October 2024 |
|
|
Carrying amount |
|
|
At 31 October 2024 |
|
|
At 31 October 2023 |
|
Ford Fuels (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Tangible assets |
Group
|
Land and buildings |
Plant and machinery |
Fixtures and fittings |
Motor vehicles |
Total |
|
|
Cost |
|||||
|
At 1 November 2023 |
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
Disposals |
- |
- |
- |
( |
( |
|
At 31 October 2024 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 November 2023 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
( |
|
At 31 October 2024 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 October 2024 |
|
|
|
|
|
|
At 31 October 2023 |
|
|
|
|
|
Fixed assets include £795,000 (2023 - £795,000) in respect of land which is not subject to depreciation.
Included within the net book value of land and buildings above is £3,430,434 (2023 - £3,510,724) in respect of freehold land and buildings and short leasehold of £338,765 (2023 - £337,806).
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2024 |
2023 |
|
|
Motor vehicles |
4,165,155 |
3,588,485 |
|
Investments |
Company
|
Subsidiaries
|
|
|
Cost and carrying amount |
|
|
At 31 October 2023 and 31 October 2024 |
|
Ford Fuels (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
Investments continued
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital, which are all registered in England and Wales, are as follows:
|
Undertaking |
Principal activity |
Holding |
Proportion of voting rights and shares held |
|
|
2024 |
2023 |
|||
|
Subsidiary undertakings |
||||
|
|
Sale and distribution of petroleum products. |
Ordinary |
|
|
Ford Fuels Limited has the same registered office as that of the Company.
|
Stocks |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Goods for resale |
|
|
- |
- |
|
Debtors |
|
Group |
Company |
||||
|
Note |
2024 |
2023 |
2024 |
2023 |
|
|
Trade debtors |
|
|
- |
- |
|
|
Other debtors |
|
|
- |
- |
|
|
Prepayments |
|
|
- |
- |
|
|
Corporation tax asset |
- |
|
- |
- |
|
|
|
|
- |
- |
||
|
Creditors |
|
Group |
Company |
||||
|
Note |
2024 |
2023 |
2024 |
2023 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
|
Trade creditors |
|
|
- |
- |
|
|
Amounts due to related parties |
- |
- |
|
|
|
|
Social security and other taxes |
|
|
- |
- |
|
|
Accrued expenses |
|
|
- |
- |
|
|
Corporation tax liability |
919,008 |
- |
- |
- |
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Deferred income |
|
|
- |
- |
|
|
7,700,068 |
9,314,985 |
667,776 |
751,776 |
||
Ford Fuels (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
Creditors continued
Trade creditors
Trade creditors include £8,140,803 (2023 - £11,982,230) in respect of monies due to a supplier of petroleum products. This balance is secured by a floating charge over all the group debtors.
|
Loans and borrowings |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Current loans and borrowings |
||||
|
HP and finance lease liabilities |
|
|
- |
- |
|
Other borrowings |
|
|
- |
- |
|
|
|
- |
- |
|
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Non-current loans and borrowings |
||||
|
HP and finance lease liabilities |
|
|
- |
- |
|
Preference shares |
|
|
|
|
|
Other borrowings |
|
|
- |
- |
|
|
|
|
|
|
Finance lease liabilities
Obligations under finance lease and hire purchase contracts are secured over the related assets.
Preference shares
The rights attached to the preference shares are as follows:
Dividends:
The shares carry the right to a dividend of 12% of the nominal value of the shares which is cumulative should the company be unable to make a distribution for any financial year.
On winding up:
On winding up the shareholders are entitled to have the paid up element of each share, together with any arrears in dividend paid in priority to the ordinary shareholders.
Voting rights:
The shares carry no votes.
Other borrowings
Other borrowings includes loans due to the directors and other members of their families, which incur interest at 5% plus the current base rate. The amounts due to the directors are £3,404,780 (2023 - £4,596,859) and to other family members £4,850,031 (2023 - £5,123,522).
Ford Fuels (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Deferred tax and other provisions |
Group
|
Deferred tax |
Dilapidation provision |
Total |
|
|
At 1 November 2023 |
|
|
|
|
Increase in existing provisions |
|
|
|
|
At 31 October 2024 |
|
|
|
|
|
|||
The dilapidation provision represents management's best estimate of dilapidation costs accrued to date in respect of a leasehold property. It is expected that the provision will become payable upon the expiration of the lease.
|
Pension and other schemes |
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
Ordinary A of £1 each |
1,050 |
1,050 |
1,050 |
1,050 |
|
Ordinary B of £1 each |
1,037 |
1,037 |
1,037 |
1,037 |
|
Ordinary D of £1 each |
585 |
585 |
585 |
585 |
|
Ordinary E of £1 each |
272 |
272 |
272 |
272 |
|
Ordinary A1 of £1 each |
245 |
245 |
245 |
245 |
|
Ordinary A2 of £1 each |
25 |
25 |
25 |
25 |
|
Ordinary A3 of £1 each |
15 |
15 |
15 |
15 |
|
Ordinary A4 of £1 each |
5 |
5 |
5 |
5 |
|
Ordinary A5 of £1 each |
5 |
5 |
5 |
5 |
|
Ordinary A6 of £1 each |
5 |
5 |
5 |
5 |
|
Ordinary A7 of £1 each |
5 |
5 |
5 |
5 |
|
Ordinary A8 of £1 each |
5 |
5 |
5 |
5 |
|
Ordinary B1 of £1 each |
5 |
5 |
5 |
5 |
|
Ordinary B2 of £1 each |
5 |
5 |
5 |
5 |
|
Ordinary C1 of £1 each |
458 |
458 |
458 |
458 |
|
Ordinary C2 of £1 each |
458 |
458 |
458 |
458 |
|
Ordinary C3 of £1 each |
398 |
398 |
398 |
398 |
|
Ordinary C4 of £1 each |
318 |
318 |
318 |
318 |
|
4,896 |
4,896 |
4,896 |
4,896 |
|
Ford Fuels (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
Share capital continued
All ordinary shares in issue rank pari-passu in all respect, other than dividend rights and repayment of capital on winding up when the shares rank alphabetically in order of priority with the A shares ranking highest and the C4 shares lowest in terms of order of repayment.
On 5th July 2024 there was a share buy back and cancellation of 84,000 5.75% Preference shares, which are accounted for as a liability due to the rights attached, see note 16.
|
Reserves |
The company has recognised the following reserves:
Retained earnings
This reserve records: accumulated profit and loss; other comprehensive income; dividends and other distributions; and share based payments transactions.
Capital redemption reserve
This reserve was created to preserve the company's capital integrity following the redemption or repurchase of its own shares, ensuring compliance with legal requirements and maintaining the company's capital structure.
|
Obligations under leases |
Group
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Commitments |
Group
Capital commitments
The total amount contracted for but not provided in the financial statements was £
|
Related party transactions |
Key management personnel are considered to be the directors of the company and key management compensation is disclosed in note 7 to the financial statements.
The company has an agreement with the directors and their families, whereby it pays interest on the unsecured loans advanced to the company at a rate of 5% above bank base rate. The total interest accrued in the year amounted to £673,633 (2023 - £986,848) with the prior year accrual credited to the loan accounts during the current year.
The amount owed to directors at the period end was £3,414,586 (2023 - £4,596,859), while the amount of interest paid in the period to the directors was £316,224 (2023 - £470,852).
Ford Fuels (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Control |
The company is controlled by the directors who own 100% of the called up share capital.