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02237482 core:ShareCapital 2022-10-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 02237482

Ford Fuels Limited

Annual Report and Financial Statements

for the Year Ended 31 October 2024

 

Ford Fuels Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 9

Profit and Loss Account

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13 to 24

 

Ford Fuels 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

Farrington Fields Trading Estate
Farrington Gurney
Bristol
BS39 6UU

Auditors

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

Ford Fuels 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 company is that of the sale and distribution of petroleum products.

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 £4,529,194 (2023 - £2,826,118). Dividends were paid during the year of £2,161,035 (2023 - £7,228,834).

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 indications
Given the nature of the business, the company's directors are of the opinion that key performance indicators are important. the company 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 company's key financial and other performance indicators during the year were as follows:

 

Unit

2024

2023

Tangible fixed assets

£

10,838,110

10,872,786

Stocks

£

4,291,484

4,512,056

Trade debtors

£

24,663,846

26,168,731

Trade creditors

£

26,387,112

28,925,921

Net funds*

£

(2,263,778)

(4,009,092)

*Net funds comprise cash at bank and in hand net of preference shares and other borrowings, 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 decreased due to the payment of dividends in the year.

 

 

Ford Fuels 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 company 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 company 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 company 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 company’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 company 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 company 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 company 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 company 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 company 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 Board on 20 May 2025 and signed on its behalf by:


J D Ford
Director

 

Ford Fuels Limited

Directors' Report for the Year Ended 31 October 2024

The directors present their report and the financial statements for the year ended 31 October 2024.

Directors of the company

The directors who held office during the year were as follows:

A J Ford

J D Ford

M Ford

R J Bowers

T Croker (née Ford)

S172 Statement

The Directors of the Company are required to promote the success of the Company 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 Company. 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 Company 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 Company 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

The company has taken exemption from the reporting requirements of Streamlined Energy and Carbon Reporting as this is disclosed in full in its parent entity's accounts. A full copy of the parent accounts can be found at Companies House.

Dividends
Dividends of £2,161,035 (2023 - £7,228,834) were paid during the year.

Information included in the Strategic Report
Disclosure regarding future developments is covered in the strategic report.

 

Ford Fuels Limited

Directors' Report for the Year Ended 31 October 2024

Financial instruments

The company'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 company. The main risks arising from the company'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 company 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 company.

The company’s principal financial assets are bank balances and cash and trade and other receivables. The company’s credit risk is primarily attributable to its trade receivables. The company'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 company aims to mitigate liquidity risk by managing cash generation by its operations, applying cash collection targets and constantly monitors the company's trading results to ensure that the company 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 company 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 auditors

Each director has taken 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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office

Approved by the Board on 20 May 2025 and signed on its behalf by:


J D Ford
Director

 

Ford Fuels Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom 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 company will continue in business.

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

 

Ford Fuels Limited

Independent Auditor's Report to the Members of Ford Fuels Limited

Opinion

We have audited the financial statements of Ford Fuels Limited (the 'company') for the year ended 31 October 2024, which comprise the Profit and Loss Account, Balance Sheet, 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 company's affairs as at 31 October 2024 and of its 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 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.

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 company's ability to continue as a going concern for a period of at least twelve months from when the original 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.

 

Ford Fuels Limited

Independent Auditor's Report to the Members of Ford Fuels Limited

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.

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, or returns adequate for our audit have not been received from branches not visited by us; or

the 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 6, 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 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 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 company’s industry and its control environment and reviewed the 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;

 

Ford Fuels Limited

Independent Auditor's Report to the Members of Ford Fuels Limited

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

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.





Felicity Sang (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
GL51 0UX

20 May 2025

 

Ford Fuels Limited

Profit and Loss Account for the Year Ended 31 October 2024

Note

2024
 £

2023
 £

Turnover

3

262,232,827

273,646,412

Cost of sales

 

(247,898,083)

(260,595,350)

Gross profit

 

14,334,744

13,051,062

Administrative expenses

 

(9,001,088)

(9,154,925)

Operating profit

4

5,333,656

3,896,137

Interest payable and similar charges

5

(804,462)

(1,070,019)

Profit before tax

 

4,529,194

2,826,118

Taxation

9

(1,160,535)

(665,083)

Profit for the financial year

 

3,368,659

2,161,035

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Ford Fuels Limited

(Registration number: 02237482)
Balance Sheet as at 31 October 2024

Note

2024
 £

2023
 £

Fixed assets

 

Goodwill

10

152,292

378,992

Tangible assets

11

10,838,110

10,872,786

 

10,990,402

11,251,778

Current assets

 

Stocks

12

4,291,484

4,512,056

Debtors

13

28,656,254

29,773,083

Cash at bank and in hand

 

6,142,809

5,863,065

 

39,090,547

40,148,204

Creditors: Amounts falling due within one year

14

(32,819,406)

(33,827,698)

Net current assets

 

6,271,141

6,320,506

Total assets less current liabilities

 

17,261,543

17,572,284

Creditors: Amounts falling due after more than one year

14

(7,184,068)

(8,714,985)

Provisions for liabilities

16

(1,615,389)

(1,602,837)

Net assets

 

8,462,086

7,254,462

Capital and reserves

 

Called up share capital

18

4,896

4,896

Profit and loss account

19

8,457,190

7,249,566

Total equity

 

8,462,086

7,254,462

Approved and authorised by the Board on 20 May 2025 and signed on its behalf by:
 


J D Ford
Director

 

Ford Fuels Limited

Statement of Changes in Equity for the Year Ended 31 October 2024

Share capital
£

Profit and loss account
£

Total
£

At 1 November 2022

4,896

12,317,365

12,322,261

Profit for the year

-

2,161,035

2,161,035

Dividends

-

(7,228,834)

(7,228,834)

At 31 October 2023

4,896

7,249,566

7,254,462

Share capital
£

Profit and loss account
£

Total
£

At 1 November 2023

4,896

7,249,566

7,254,462

Profit for the year

-

3,368,659

3,368,659

Dividends

-

(2,161,035)

(2,161,035)

At 31 October 2024

4,896

8,457,190

8,462,086

 

Ford Fuels Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Farrington Fields Trading Estate
Farrington Gurney
Bristol
BS39 6UU

 

2

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 United Kingdom 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.

Name of parent of group

These financial statements are consolidated in the financial statements of Ford Fuels (Holdings) Limited.

The financial statements of Ford Fuels (Holdings) Limited may be obtained from the company's registered office.

Summary of disclosure exemptions

The Company's parent undertaking, Ford Fuels (Holdings) Limited, includes the Company in its consolidated financial statements. The consolidated financial statements of Ford Fuels (Holdings) Limited are prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. In these financial statements, the Company is considered to be a qualifying entity (for the purposes of this FRS) and has applied the exemptions available under FRS102 in respect of the following disclosures:

• Reconciliation of the number of shares outstanding from the beginning to the end of the period;
• Cash Flow Statement and related notes; and
• Key Management Personnel Compensation.

As the consolidated financial statements of Ford Fuels (Holdings) Limited include the disclosures equivalent to those required by FRS 102, the Company has also taken the exemptions available in respect of the following disclosures:

• Certain disclosures required by FRS 102.11 Basic Financial Instruments and FRS 102.12 Other Financial Instrument Issues in respect of financial instruments not falling within the fair value accounting rules of Paragraph 36(4) of Schedule 1.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

 

Ford Fuels Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying 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.

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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made 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.

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 company. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits can be reliably measured, and it is probable that future economic benefits will flow to the entity. The company considers that the risks and rewards of ownership pass when products are delivered to customers and 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.

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 company’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

5 year straight line

Tangible assets

Tangible assets 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.

 

Ford Fuels Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

Depreciation

Depreciation is charged so as to write off the cost of assets 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

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 company will not be able to collect all amounts due according to the original terms of the debtors.

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 company 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 company 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 company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

Ford Fuels Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

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 represent 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.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

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.

 

Ford Fuels Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

Impairment (continued)
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.

 

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

260,481,224

272,025,755

Rendering of services

1,751,603

1,620,657

262,232,827

273,646,412

The total turnover of the company for the current year and prior year has been derived from its principal activity wholly undertaken in the United Kingdom.

 

4

Operating profit

Arrived at after charging:

2024
 £

2023
 £

Depreciation expense

1,478,925

1,307,253

Amortisation expense

226,700

226,699

Operating lease expense - property

376,131

348,305

Profit on disposal of property, plant and equipment

(17,654)

(30,258)

 

5

Interest payable and similar expenses

2024
£

2023
£

Interest on preference shares

18,213

18,213

Interest on obligations under hire purchase contracts

112,611

57,870

Interest expense on other borrowings

673,638

993,936

804,462

1,070,019

 

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

7,682,202

7,777,676

Social security costs

739,679

803,896

Pension costs

304,638

380,094

8,726,519

8,961,666

 

Ford Fuels Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

 

6

Staff costs (continued)

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Administration and support

42

48

Sales, marketing and distribution

155

148

197

196

 

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration (including benefits in kind)

215,441

243,727

Contributions paid to money purchase schemes

26,500

22,000

241,941

265,727

During the year the number of directors who were receiving benefits was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

3

3

In respect of the highest paid director:

2024
£

2023
£

Remuneration

132,200

102,950

Company contributions to money purchase pension schemes

6,000

6,000

 

8

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

35,715

34,425

Other fees to auditors

Auditor's remuneration - Audit of the parent company's financial statements

5,785

5,575

All other non-audit services

21,003

21,288

26,788

26,863


 

 

Ford Fuels Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

 

9

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

1,149,008

342,831

Deferred taxation

Arising from origination and reversal of timing differences

8,816

322,252

Arising from origination and reversal of timing differences of prior periods

2,711

-

Total deferred taxation

11,527

322,252

Tax expense in the income statement

1,160,535

665,083

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 25% (2023 - 22.5%).

 

The differences are reconciled below:
 

2024
£

2023
£

Profit before tax

4,529,194

2,826,118

Corporation tax at standard rate

1,132,299

635,877

Effect of expense not deductible in determining taxable profit (tax loss)

8,949

3,644

Remeasurement of deferred tax for changes in tax rates

-

38,982

Deferred tax expense from unrecognised temporary difference from a prior period

2,711

-

Net tax effect of ineligible depreciation and super deductions

16,576

(13,420)

Total tax charge

1,160,535

665,083

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Accelerated capital allowances

(1,535,436)

(1,535,436)

2023

Liability
£

Accelerated capital allowances

(1,524,875)

Short term timing differences

966

(1,523,909)

UK corporation tax rate to 25%, effective from April 2023 was announced and substantively enacted on 24 May 2021. The deferred tax assets and liabilities at 31 October 2024 and 31 October 2023 have been calculated based on the rate of 25%.

 

Ford Fuels Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

 

10

Intangible assets

Goodwill
 £

Cost

At 1 November 2023 and at 31 October 2024

1,133,500

Amortisation

At 1 November 2023

754,508

Amortisation charge

226,700

At 31 October 2024

981,208

Carrying amount

At 31 October 2024

152,292

At 31 October 2023

378,992

 

11

Tangible assets

Land and buildings
£

Plant and machinery
£

Fixtures and fittings
 £

Motor vehicles and tankers
 £

Total
£

Cost

At 1 November 2023

4,806,695

2,501,106

960,635

11,882,328

20,150,764

Additions

29,340

295,913

166,047

1,005,203

1,496,503

Disposals

-

-

-

(853,307)

(853,307)

At 31 October 2024

4,836,035

2,797,019

1,126,682

12,034,224

20,793,960

Depreciation

At 1 November 2023

958,151

1,618,492

695,041

6,006,294

9,277,978

Charge for the year

108,685

147,932

135,808

1,086,500

1,478,925

Eliminated on disposal

-

-

-

(801,053)

(801,053)

At 31 October 2024

1,066,836

1,766,424

830,849

6,291,741

9,955,850

Carrying amount

At 31 October 2024

3,769,199

1,030,595

295,833

5,742,483

10,838,110

At 31 October 2023

3,848,544

882,614

265,594

5,876,034

10,872,786

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 - £3,510,738) in respect of freehold land and buildings and short leasehold of £338,765 (2023 - £337,806).

 

Ford Fuels Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

 

11

Tangible assets (continued)

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

     

Depreciation of £537,571 (2023 - £425,614) was charged on these assets during the year.

 

12

Stocks

2024
£

2023
£

Goods for resale

4,291,484

4,512,056

 

13

Debtors

Note

2024
£

2023
£

Trade debtors

 

24,663,846

26,168,731

Other debtors

 

1,064,424

1,315,451

Prepayments and accrued income

 

1,336,902

622,183

Amounts due from group companies

 

1,591,082

1,566,319

Corporation tax asset

9

-

100,399

 

28,656,254

29,773,083

 

14

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

15

4,395,437

4,067,428

Trade creditors

 

26,387,112

28,295,921

Social security and other taxes

 

170,810

180,979

Accrued expenses

 

947,039

1,283,370

Corporation tax liability

9

919,008

-

 

32,819,406

33,827,698

Due after one year

 

Loans and borrowings

15

6,948,568

8,473,485

Government Grant

 

235,500

241,500

 

7,184,068

8,714,985

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 company's debtors.

 

Ford Fuels Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

 

15

Loans and borrowings

2024
£

2023
£

Current loans and borrowings

HP and finance lease liabilities

1,053,440

749,426

Other borrowings

3,341,997

3,318,002

4,395,437

4,067,428

2024
£

2023
£

Non-current loans and borrowings

HP and finance lease liabilities

1,883,978

1,919,330

Preference shares

151,776

151,776

Other borrowings

4,912,814

6,402,379

6,948,568

8,473,485

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:

Dividend

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 Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

 

16

Deferred tax and other provisions

Deferred tax
£

Dilapidation provision
£

Total
£

At 1 November 2023

1,523,909

78,928

1,602,837

Increase in provision

11,527

1,025

12,552

At 31 October 2024

1,535,436

79,953

1,615,389

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.

 

17

Pension and other schemes

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £304,638 (2023 - £380,094). Contributions totalling £nil (2023 - £nil) were payable to the scheme at the end of the year and are included in accruals.

 

18

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary A of £1 each

1,360

1,360

1,360

1,360

Ordinary B of £1 each

1,237

1,237

1,237

1,237

Ordinary C of £1 each

1,360

1,360

1,360

1,360

Ordinary E of £1 each

816

816

816

816

Ordinary F of £1 each

123

123

123

123

 

4,896

4,896

4,896

4,896

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 E shares lowest in terms of order of repayment.

 

19

Reserves

Called up share capital

This represents the nominal value of the issued equity share capital of the company.

Retained earnings

This represents the cumulative profits or losses, net of dividends paid and other adjustments.

 

Ford Fuels Limited

Notes to the Financial Statements for the Year Ended 31 October 2024

 

20

Obligations under leases

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

409,999

319,778

Later than one year and not later than five years

989,301

991,549

Later than five years

190,527

180,206

1,589,827

1,491,533

The amount of non-cancellable operating lease payments recognised as an expense during the year was £376,131 (2023 - £348,305).

 

21

Commitments

Capital commitments

The total amount contracted for but not provided in the financial statements was £856,043 (2023 - £1,508,122).

 

22

Related party transactions

Key management personnel are considered to be the directors of the company and key management personnel 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 loans advanced to the company at a rate of 5% above the bank base rate. The total interest accrued in the year amounted to £673,633 (2023 - £986,848). The prior year accrued interest has been credited to the loan accounts during the 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).

 

23

Control

The immediate and ultimate parent company is Ford Fuels (Holdings) Limited, a company that prepares consolidated financial statements which are available from Farrington Fields Trading Estate, Farrington Gurney, Bristol BS39 6UU.