K J Flanagan & Co Limited NI041021 false 2023-10-01 2024-09-30 2024-09-30 The principal activity of the company is wholesaling of carpets and other flooring products Digita Accounts Production Advanced 6.30.9574.0 true true true Class 1 Class 2 Class 3 true NI041021 2023-10-01 2024-09-30 NI041021 2024-09-30 NI041021 bus:OrdinaryShareClass2 2024-09-30 NI041021 core:AcceleratedTaxDepreciationDeferredTax 2024-09-30 NI041021 core:TaxLossesCarry-forwardsDeferredTax 2024-09-30 NI041021 core:RetainedEarningsAccumulatedLosses 2024-09-30 NI041021 core:ShareCapital 2024-09-30 NI041021 core:HirePurchaseContracts core:CurrentFinancialInstruments 2024-09-30 NI041021 core:HirePurchaseContracts core:Non-currentFinancialInstruments 2024-09-30 NI041021 core:CurrentFinancialInstruments 2024-09-30 NI041021 core:CurrentFinancialInstruments core:WithinOneYear 2024-09-30 NI041021 core:Non-currentFinancialInstruments core:AfterOneYear 2024-09-30 NI041021 core:BetweenOneFiveYears 2024-09-30 NI041021 core:WithinOneYear 2024-09-30 NI041021 core:FurnitureFittingsToolsEquipment 2024-09-30 NI041021 core:LandBuildings 2024-09-30 NI041021 core:MotorVehicles 2024-09-30 NI041021 core:OtherPropertyPlantEquipment 2024-09-30 NI041021 core:DeferredTaxation 2024-09-30 NI041021 bus:FRS102 2023-10-01 2024-09-30 NI041021 bus:Audited 2023-10-01 2024-09-30 NI041021 bus:FullAccounts 2023-10-01 2024-09-30 NI041021 bus:RegisteredOffice 2023-10-01 2024-09-30 NI041021 bus:CompanySecretaryDirector1 2023-10-01 2024-09-30 NI041021 bus:Director2 2023-10-01 2024-09-30 NI041021 bus:Director4 2023-10-01 2024-09-30 NI041021 bus:Director5 2023-10-01 2024-09-30 NI041021 bus:Director7 2023-10-01 2024-09-30 NI041021 bus:OrdinaryShareClass2 2023-10-01 2024-09-30 NI041021 bus:Consolidated 2023-10-01 2024-09-30 NI041021 bus:PrivateLimitedCompanyLtd 2023-10-01 2024-09-30 NI041021 bus:Agent1 2023-10-01 2024-09-30 NI041021 1 2023-10-01 2024-09-30 NI041021 2 2023-10-01 2024-09-30 NI041021 core:RetainedEarningsAccumulatedLosses 2023-10-01 2024-09-30 NI041021 core:ShareCapital 2023-10-01 2024-09-30 NI041021 countries:Europe 2023-10-01 2024-09-30 NI041021 countries:UnitedKingdom 2023-10-01 2024-09-30 NI041021 core:ReportableOperatingSegment1 2023-10-01 2024-09-30 NI041021 core:ReportableOperatingSegment2 2023-10-01 2024-09-30 NI041021 core:ReportableOperatingSegment3 2023-10-01 2024-09-30 NI041021 core:FurnitureFittings 2023-10-01 2024-09-30 NI041021 core:FurnitureFittingsToolsEquipment 2023-10-01 2024-09-30 NI041021 core:LandBuildings 2023-10-01 2024-09-30 NI041021 core:MotorVehicles 2023-10-01 2024-09-30 NI041021 core:OtherPropertyPlantEquipment 2023-10-01 2024-09-30 NI041021 core:PlantMachinery 2023-10-01 2024-09-30 NI041021 core:DeferredTaxation 2023-10-01 2024-09-30 NI041021 core:AllAssociates 2023-10-01 2024-09-30 NI041021 core:UKTax 2023-10-01 2024-09-30 NI041021 countries:NorthernIreland 2023-10-01 2024-09-30 NI041021 2023-09-30 NI041021 core:RetainedEarningsAccumulatedLosses 2023-09-30 NI041021 core:ShareCapital 2023-09-30 NI041021 core:FurnitureFittingsToolsEquipment 2023-09-30 NI041021 core:LandBuildings 2023-09-30 NI041021 core:MotorVehicles 2023-09-30 NI041021 core:OtherPropertyPlantEquipment 2023-09-30 NI041021 core:DeferredTaxation 2023-09-30 NI041021 2022-10-01 2023-09-30 NI041021 2023-09-30 NI041021 bus:OrdinaryShareClass2 2023-09-30 NI041021 core:AcceleratedTaxDepreciationDeferredTax 2023-09-30 NI041021 core:TaxLossesCarry-forwardsDeferredTax 2023-09-30 NI041021 core:HirePurchaseContracts core:CurrentFinancialInstruments 2023-09-30 NI041021 core:HirePurchaseContracts core:Non-currentFinancialInstruments 2023-09-30 NI041021 core:CurrentFinancialInstruments 2023-09-30 NI041021 core:CurrentFinancialInstruments core:WithinOneYear 2023-09-30 NI041021 core:Non-currentFinancialInstruments core:AfterOneYear 2023-09-30 NI041021 core:BetweenOneFiveYears 2023-09-30 NI041021 core:WithinOneYear 2023-09-30 NI041021 core:FurnitureFittingsToolsEquipment 2023-09-30 NI041021 core:LandBuildings 2023-09-30 NI041021 core:MotorVehicles 2023-09-30 NI041021 core:OtherPropertyPlantEquipment 2023-09-30 NI041021 1 2022-10-01 2023-09-30 NI041021 2 2022-10-01 2023-09-30 NI041021 core:RetainedEarningsAccumulatedLosses 2022-10-01 2023-09-30 NI041021 core:ShareCapital 2022-10-01 2023-09-30 NI041021 core:SharePremium 2022-10-01 2023-09-30 NI041021 countries:Europe 2022-10-01 2023-09-30 NI041021 countries:UnitedKingdom 2022-10-01 2023-09-30 NI041021 core:UKTax 2022-10-01 2023-09-30 NI041021 2022-09-30 NI041021 core:RetainedEarningsAccumulatedLosses 2022-09-30 NI041021 core:ShareCapital 2022-09-30 NI041021 core:SharePremium 2022-09-30 iso4217:GBP xbrli:pure xbrli:shares

Registration number: NI041021

K J Flanagan & Co Limited

Annual Report and Financial Statements

for the Year Ended 30 September 2024

 

K J Flanagan & Co Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 9

Profit and Loss Account

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 24

 

K J Flanagan & Co Limited

Company Information

Directors

M P Flanagan

P Flanagan

C McDowell

M Doherty

M Martin

Company secretary

M P Flanagan

Registered office

Millpond Business Park
Saintfield
Down
BT24 7EP

Auditors

C.D. Diamond & Company 46 Hill Street
Belfast
Co. Antrim
BT1 2LB

 

K J Flanagan & Co Limited

Strategic Report for the Year Ended 30 September 2024

The directors present their strategic report for the year ended 30 September 2024.

Principal activity

The principal activity of the company is wholesaling of carpets and other flooring products

Fair review of the business

The results for the year and the financial position of the company are shown in the financial statements. The directors are pleased to report a profit for the year and that the company has maintained its market share

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£000

14,915

15,671

Gross Profit

%

19

19

Operating Profit

£000

52

81

Principal risks and uncertainties

The directors have considered the exposure of the company to price risk, credit risk, liquidity risk and cash flow risk. They are satisfied that all necessary steps have been taken to minimise any such exposure.

The principal risks identified are set out below
- competition from other suppliers
- availability of the product from suppliers
- general economic climate
- major currency fluctuations

Approved and authorised by the Board on 19 June 2025 and signed on its behalf by:
 

.........................................
M P Flanagan
Company secretary and director

 

K J Flanagan & Co Limited

Directors' Report for the Year Ended 30 September 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Directors of the company

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

M P Flanagan - Company secretary and director

P Flanagan

C McDowell

M Doherty

M Martin

Financial Risks

Objectives and policies

The directors have considered the need to disclose financial risks material to the company.

Price risk, credit risk, liquidity risk and cash flow risk

At this stage, the directors are of the opinion that there are no material price, credit, liquidity or cash flow risks. The directors will continue to assess the financial risks and their management on a regular basis.

Future developments

The board intends to continue its policy of expansion and to develop the business

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

The auditors C.D. Diamond & Company are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the Board on 19 June 2025 and signed on its behalf by:
 

.........................................
M P Flanagan
Company secretary and director

 

K J Flanagan & Co Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations. Under that law, the directors have elected to prepare the financial statements in accordance with FRS 102 "The Financial reporting Standard applicable in the UK and Republic of Ireland" issued by the Financial Reporting Council, and promulgated by the Institute of Chartered Accountants in Ireland.

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;

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.

 

K J Flanagan & Co Limited

Independent Auditor's Report to the Members of K J Flanagan & Co Limited

Opinion

We have audited the financial statements of K J Flanagan & Co Limited (the 'company') for the year ended 30 September 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, 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 30 September 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 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.

 

K J Flanagan & Co Limited

Independent Auditor's Report to the Members of K J Flanagan & Co Limited

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.

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 4], 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 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design precedures 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:

 

K J Flanagan & Co Limited

Independent Auditor's Report to the Members of K J Flanagan & Co Limited

Based on our understanding of the company and the industry, we identified the principal risks of non-compliance with laws and regulations related to UK tax regulations, and considered the extent to which non-compliance may have a material effect on the financial statements. We evaluated management potential motivations and opportunities for fraudulent manipulation of the financial statements. We concluded the principal risks were related to management override of controls, posting inappropriate journals and management bias in accounting for estimates. Audit procedures performed were

- discussions with management regarding consideration of known or suspected non-compliances with laws and regulations and fraud and how they assess, identify and respond to fraud risks within the company
- evaluation of the effectiveness of management's controls designed to prevent and detect any irregularities
- testing of significant manual journal entries and instances of management override of controls
- testing of assumptions and judgements made in significant accounting estimates
- whether in addressing the risk of fraud through management override of controls, the appropriateness of journal entries and judgements used in making accounting estimates, are indicative of potential bias and the need to evaluate the rationale of any significant transactions outside the normal course of business.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one due to error, as fraud may include deliberate concealment by misrepresentation or forgery or collusion.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, identify and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional ommissions, misrepresentations, or the override of internal controls.

 

K J Flanagan & Co Limited

Independent Auditor's Report to the Members of K J Flanagan & Co Limited

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.

-Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

-Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify are opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.
 

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 our report

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

......................................
John O'Kane (Senior Statutory Auditor)
For and on behalf of C.D. Diamond & Company, Statutory Auditor
 46 Hill Street
Belfast
Co. Antrim
BT1 2LB

 

K J Flanagan & Co Limited

Independent Auditor's Report to the Members of K J Flanagan & Co Limited

19 June 2025

 

K J Flanagan & Co Limited

Profit and Loss Account for the Year Ended 30 September 2024

Note

2024
£

2023
£

Turnover

3

14,915,985

15,671,496

Cost of sales

 

(12,057,463)

(12,671,821)

Gross profit

 

2,858,522

2,999,675

Administrative expenses

 

(2,986,677)

(2,918,642)

Other operating income

180,000

-

Operating profit

4

51,845

81,033

Interest payable and similar expenses

5

5,572

17,016

Profit before tax

 

57,417

98,049

Tax on profit

8

(14,657)

9,285

Profit for the financial year

 

42,760

107,334

The above results were derived from continuing operations.

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

 

K J Flanagan & Co Limited

(Registration number: NI041021)
Balance Sheet as at 30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

9

1,415,530

1,329,959

Current assets

 

Stocks

10

2,972,058

3,249,237

Debtors

11

1,275,070

1,296,204

Cash at bank and in hand

 

136,085

254,595

 

4,383,213

4,800,036

Creditors: Amounts falling due within one year

13

(3,127,572)

(3,467,818)

Net current assets

 

1,255,641

1,332,218

Total assets less current liabilities

 

2,671,171

2,662,177

Creditors: Amounts falling due after more than one year

13

(166,093)

(214,516)

Provisions for liabilities

14

(82,970)

(68,313)

Net assets

 

2,422,108

2,379,348

Capital and reserves

 

Called up share capital

2,500

2,500

Retained earnings

2,419,608

2,376,848

Shareholders' funds

 

2,422,108

2,379,348

Approved and authorised by the Board on 19 June 2025 and signed on its behalf by:
 

.........................................
M P Flanagan
Company secretary and director

 

K J Flanagan & Co Limited

Statement of Changes in Equity for the Year Ended 30 September 2024

Share capital
£

Retained earnings
£

Total
£

At 1 October 2023

2,500

2,376,848

2,379,348

Profit for the year

-

42,760

42,760

At 30 September 2024

2,500

2,419,608

2,422,108

Share capital
£

Share premium
£

Retained earnings
£

Total
£

At 1 October 2022

5,000

2,329,200

3,957,064

6,291,264

Profit for the year

-

-

107,334

107,334

Other comprehensive income

-

-

2,329,200

2,329,200

Total comprehensive income

-

-

2,436,534

2,436,534

Dividends

-

-

(4,016,750)

(4,016,750)

Other share capital movements

(2,500)

-

-

(2,500)

Other share premium reserve movements

-

(2,329,200)

-

(2,329,200)

At 30 September 2023

2,500

-

2,376,848

2,379,348

 

K J Flanagan & Co Limited

Statement of Cash Flows for the Year Ended 30 September 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

42,760

107,334

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

329,902

299,697

Loss/(profit) on disposal of tangible assets

180

(3,639)

Finance costs

5

13,598

11,039

Income tax expense

8

14,657

(9,285)

 

401,097

405,146

Working capital adjustments

 

Decrease/(increase) in stocks

10

277,179

(501,275)

Decrease in trade debtors

11

21,134

976,906

(Decrease)/increase in trade creditors

13

(169,551)

1,844,416

Net cash flow from operating activities

 

529,859

2,725,193

Cash flows from investing activities

 

Acquisition of subsidiaries

-

(1,000,000)

Proceeds from sale of subsidiaries

 

-

4,019,250

Acquisitions of tangible assets

(431,910)

(565,248)

Proceeds from sale of tangible assets

 

16,249

18,855

Net cash flows from investing activities

 

(415,661)

2,472,857

Cash flows from financing activities

 

Interest paid

5

(13,598)

(11,039)

Proceeds from bank borrowing draw downs

 

(302,134)

(1,497,866)

Redemption of shares classified as liabilities

 

-

(2,500)

Payments to finance lease creditors

 

(24,169)

(4,125)

Dividends paid

-

(4,016,750)

Net cash flows from financing activities

 

(339,901)

(5,532,280)

Net decrease in cash and cash equivalents

 

(225,703)

(334,230)

Cash and cash equivalents at 1 October

 

254,595

588,825

Cash and cash equivalents at 30 September

 

28,892

254,595

 

K J Flanagan & Co Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

1

General information

The company is a private company limited by share capital, incorporated in Northern Ireland.

The address of its registered office is:
Millpond Business Park
Saintfield
Down
BT24 7EP

These financial statements were authorised for issue by the Board on 19 June 2025.

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 on the going concern basis and in accordance with the historical cost convention modified to include certain items at fair value. The financial statements were prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The financial statements are presented in Sterling (£) and figures are rounded to the nearest £1

Going concern

The financial statements have been prepared on a going concern basis. The directors believe that it is appropriate for the financial statements to be prepared on the going concern basis, which assumes the company will continue in operational existence for the forseeable future.

Revenue recognition

Turnover 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. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account.

 

K J Flanagan & Co Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income 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 in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet 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

Property

20% straight line

Plant and machinery

15% reducing balance

Fixtures and fittings

20% straight line

Motor vehicles

25% reducing balance

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

 

K J Flanagan & Co Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

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. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. 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 subsequently measured at amortised cost using the effective interest method.

 

K J Flanagan & Co Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

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.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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.

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

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

2024
£

2023
£

Sale of goods

14,915,985

15,671,496

 

K J Flanagan & Co Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

The analysis of the company's turnover for the year by market is as follows:

2024
£

2023
£

UK

8,763,325

8,984,392

Europe

6,152,660

6,687,104

14,915,985

15,671,496

4

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

329,902

299,697

Loss/(profit) on disposal of property, plant and equipment

180

(3,639)

 

K J Flanagan & Co Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

5

Interest payable and similar expenses

2024
£

2023
£

Interest on obligations under finance leases and hire purchase contracts

13,598

11,039

Foreign exchange losses

(19,170)

(28,055)

(5,572)

(17,016)

6

Staff costs

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

2024
£

2023
£

Wages and salaries

1,278,045

1,194,327

Social security costs

244,619

236,870

Pension costs, defined contribution scheme

80,779

142,719

Other employee expense

15,986

-

1,619,429

1,573,916

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

2024
No.

2023
No.

Sales, marketing and distribution

83

82

83

82

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

201,465

183,676

Contributions paid to money purchase schemes

4,584

64,583

206,049

248,259

8

Taxation

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

 

K J Flanagan & Co Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

2024
£

2023
£

Deferred taxation

Arising from origination and reversal of timing differences

14,657

(9,285)

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 25% (2023 - 25%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

57,417

98,049

Corporation tax at standard rate

14,354

24,512

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

303

581

Tax decrease from effect of unrelieved tax losses carried forward

-

(47,311)

Deferred tax expense relating to changes in tax rates or laws

-

71,816

Decrease from effect of tax incentives

-

(11,392)

Tax decrease from effect of adjustment in research and development tax credit

-

(47,491)

Total tax charge/(credit)

14,657

(9,285)

Deferred tax

 

K J Flanagan & Co Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Accelerated tax depreciation

-

294,874

Tax losses carry-forwards

211,904

-

211,904

294,874

2023

Asset
£

Liability
£

Accelerated tax depreciation

-

262,117

Tax losses carry-forwards

193,804

-

193,804

262,117

9

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 October 2023

61,931

315,643

1,344,694

1,344,635

3,066,903

Additions

-

166,719

179,396

85,795

431,910

Disposals

-

-

(24,620)

-

(24,620)

At 30 September 2024

61,931

482,362

1,499,470

1,430,430

3,474,193

Depreciation

At 1 October 2023

61,931

251,958

672,215

750,848

1,736,952

Charge for the year

-

45,177

184,715

100,010

329,902

Eliminated on disposal

-

-

(8,191)

-

(8,191)

At 30 September 2024

61,931

297,135

848,739

850,858

2,058,663

Carrying amount

At 30 September 2024

-

185,227

650,731

579,572

1,415,530

At 30 September 2023

-

63,692

672,480

593,787

1,329,959

Included within the net book value of land and buildings above is £Nil (2023 - £Nil) in respect of freehold land and buildings.
 

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:

 

K J Flanagan & Co Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

2024
£

2023
£

Motor vehicles

406,214

384,470

   

10

Stocks

2024
£

2023
£

Other inventories

2,972,058

3,249,237

There is no material difference between the carrying amount of inventories and its replacement cost.

11

Debtors

Current

2024
£

2023
£

Trade debtors

1,077,927

1,092,798

Other debtors

4,796

4,784

Prepayments

192,347

198,622

 

1,275,070

1,296,204

12

Cash and cash equivalents

2024
£

2023
£

Cash on hand

2,865

1,898

Cash at bank

133,220

252,697

136,085

254,595

Bank overdrafts

(107,193)

-

Cash and cash equivalents in statement of cash flows

28,892

254,595

13

Creditors

 

K J Flanagan & Co Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

17

266,743

437,438

Trade creditors

 

663,715

460,790

Social security and other taxes

 

322,795

229,511

Other payables

 

1,726,218

2,216,996

Accruals

 

148,101

123,083

 

3,127,572

3,467,818

Due after one year

 

Loans and borrowings

17

166,093

214,516

Ulster Bank hold a full inter company cross guarantee between K J Flanagan & Co Ltd, Flanagan Flooring Distributors (Scotland) Ltd and Flanagan Flooring Distributors (Ireland) Ltd collateralised by all monies debenture conferring on the bank, fixed and floating security over the property assets undetaking rights and revenues.

14

Provisions for liabilities

Deferred tax
£

Total
£

At 1 October 2023

68,313

68,313

Increase (decrease) in existing provisions

14,657

14,657

At 30 September 2024

82,970

82,970

15

Pension and other schemes

Defined contribution pension scheme

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 £80,779 (2023 - £142,719).

16

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

B Ordinary shares of £1 each

2,500

2,500

2,500

2,500

       
 

K J Flanagan & Co Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

17

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Hire purchase contracts

166,093

214,516

Current loans and borrowings

2024
£

2023
£

Bank borrowings

-

302,134

Bank overdrafts

107,193

-

Hire purchase contracts

159,550

135,304

266,743

437,438

18

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

159,550

135,304

Later than one year and not later than five years

166,093

214,516

325,643

349,820

19

Related party transactions

Summary of transactions with associates

During the year K J Flanagan & Co Limited made sales of £6,790,261 (2023 - £7,211,852) to associated companies, and purchases of £1,024,558 (2023 - £938,098) from associates. At the the balance sheet date the amount owed from/(to) K J Flanagan & Co Limited to/(from) associates was £(1,709,027) (2023.- (£2,200,704))