Company registration number 00650649 (England and Wales)
F.P. (Tools) Limited
Annual Report And Financial Statements
For The Year Ended 30 September 2024
F.P. (Tools) Limited
Company Information
Directors
Mr J S Dale
Mr S N Dale
Mr R L Dale
Company number
00650649
Registered office
Warwick House
Tyseley Lane
Tyseley
Birmingham
B11 3PX
Auditor
Loucas
The Carriage House
Mill Street
Maidstone
Kent
ME15 6YE
Business address
Warwick House
Tyseley Lane
Tyseley
Birmingham
B11 3PX
Bankers
Barclays Bank Plc
Leicester
Leicestershire
LE87 2BB
F.P. (Tools) Limited
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 27
F.P. (Tools) Limited
Strategic Report
For The Year Ended 30 September 2024
Page 1
The directors present the strategic report for the year ended 30 September 2024.
Review of the business
F.P. (Tools) Limited reported a further sales growth of 7.2% arising from both organic within our long-established customer base and through attracting new contracts. Sales of £14.6m generated a profit after tax of £0.75m. The net asset position remained strong at £2.25m. The directors are extremely pleased with the company’s strong liquidity position, evidenced by a current ratio of 1:1.4, which reflects a healthy balance between assets and liabilities and provides a solid foundation for continued operational resilience and growth.
We maintain strong partnerships across our supply chain, allowing us to reliably meet customer demands by consistently delivering high-quality products at competitive prices.
The company continues to devote to our commitment to high service levels, and we expect this to continue in the coming years.
This year marked the full repayment of all loan financing. We are now focused on further investment in the business, having started and rigorously tested our new state-of-the-art cloud-based ERP system, we are now positioned to streamline operations and enhance reporting capabilities.
The company has recently achieved ISO 14001 certification, complementing our existing ISO 9001 accreditation and reinforcing our commitment to both quality management and environmental sustainability.
Principal risks and uncertainties
The directors recognise effective risk management as essential to the company's long-term success and place strong emphasis on maintaining robust systems and structures to identify, assess, and mitigate risk exposure. Key procedures have been established to ensure that internal controls are both effective and appropriate for a company of this scale. A fundamental control remains the directors’ active day-to-day oversight of the business, with additional internal controls continuing to be developed and enhanced.
Key performance indicators
In the light of market conditions, the key performance indicators used by the company are turnover, gross profit percentage, net profit percentage and EBITDA.
2024
2023
Turnover
14,612,790
13,631,638
Gross profit percentage
26.92%
26.77%
Profit after tax percentage
5.16%
6.07%
EBITDA
1,087,471
1,135,226
Mr S N Dale
Director
23 June 2025
F.P. (Tools) Limited
Directors' Report
For The Year Ended 30 September 2024
Page 2
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company continued to be that of distribution and logistical management of factory consumables. This includes, but is not limited to: the supply of tooling, health and safety equipment and janitorial products.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £732,635. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J S Dale
Mr S N Dale
Mr R L Dale
Auditor
The auditor, Loucas, is deemed to be reappointed under section 487 (2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr S N Dale
Director
23 June 2025
F.P. (Tools) Limited
Directors' Responsibilities Statement
For The Year Ended 30 September 2024
Page 3
The directors are responsible 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 then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; 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.
F.P. (Tools) Limited
Independent Auditor's Report
To The Member Of F.P. (Tools) Limited
Page 4
Opinion
We have audited the financial statements of F.P. (Tools) Limited (the 'company') for the year ended 30 September 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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.
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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
F.P. (Tools) Limited
Independent Auditor's Report (Continued)
To The Member Of F.P. (Tools) Limited
Page 5
Matters on which we are required to report by exception
In the light of the 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 or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 directors' responsibilities statement, 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 considered 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:
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements, including how fraud may occur by enquiring of management's own consideration of fraud. In particular we assessed whether judgements made in making accounting estimates are indicative of potential bias, and evaluated the business rationale of significant transactions outside the normal course of business. We also addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and other adjustments. We also considered potential financial or other pressures, opportunities and motivations for fraud. As part of discussions with management we identified the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations and how management monitor these processes.
We obtained an understanding of the legal and regulatory environment applicable to the company and established the most relevant laws and regulations are FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice), Companies Act 2006, direct and indirect taxation legislation in the United Kingdom, and operational laws and regulations including health and safety, employment law, anti-money laundering, anti-bribery and corruption, and GDPR rules.
Additionally we also identified ISO 9001-2015 as being a regulation that could reasonably be expected to have a material effect on the financial statements. This has been identified through our experience of the sector in which the entity operates, and through discussions with the directors and management.
F.P. (Tools) Limited
Independent Auditor's Report (Continued)
To The Member Of F.P. (Tools) Limited
Page 6
We considered the extent of compliance with these laws and regulations as part of our procedures on the related financial statement lines. We made enquiries of management with regards to compliance with the above laws and regulations and corroborated any necessary evidence, for example, review and inspection of legal invoices and correspondence with the relevant authorities and the entity's solicitors. With regards to ISO 9001-2015 we also reviewed inspection documents from both internal audits carried out by management, and external audits from the NQA Global Certification Body.
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, misrepresentation or through collusion. There are inherent limitations in the audit procedures performed as non-compliance with laws and regulations may not necessarily be reflected in transactions reported in the financial statements, and therefore we may be less likely to become aware of it. Management and those charged with governance of the entity have the primary responsibility for the prevention and detection of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Mr Athos Louca FCCA, ICPAC
Senior Statutory Auditor
For and on behalf of Loucas
24 June 2025
Chartered Certified Accountants
Statutory Auditor
The Carriage House
Mill Street
Maidstone
Kent
ME15 6YE
F.P. (Tools) Limited
Profit And Loss Account
For The Year Ended 30 September 2024
Page 7
2024
2023
Notes
£
£
Turnover
3
14,612,790
13,631,638
Cost of sales
(10,679,100)
(9,982,936)
Gross profit
3,933,690
3,648,702
Distribution costs
(120,928)
(147,134)
Administrative expenses
(2,791,810)
(2,398,785)
Operating profit
4
1,020,952
1,102,783
Interest receivable and similar income
8
2,069
Interest payable and similar expenses
9
(1,740)
(36,707)
Profit before taxation
1,021,281
1,066,076
Tax on profit
10
(266,940)
(239,021)
Profit for the financial year
754,341
827,055
The profit and loss account has been prepared on the basis that all operations are continuing operations.
F.P. (Tools) Limited
Statement Of Comprehensive Income
For The Year Ended 30 September 2024
Page 8
2024
2023
£
£
Profit for the year
754,341
827,055
Other comprehensive income
-
-
Total comprehensive income for the year
754,341
827,055
F.P. (Tools) Limited
Balance Sheet
As At 30 September 2024
Page 9
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
47,240
Tangible assets
13
760,692
748,405
807,932
748,405
Current assets
Stocks
14
572,622
612,393
Debtors
15
4,403,794
4,315,341
Cash at bank and in hand
154,598
174,073
5,131,014
5,101,807
Creditors: amounts falling due within one year
16
(3,647,209)
(3,585,411)
Net current assets
1,483,805
1,516,396
Total assets less current liabilities
2,291,737
2,264,801
Provisions for liabilities
Deferred tax liability
18
40,888
35,658
(40,888)
(35,658)
Net assets
2,250,849
2,229,143
Capital and reserves
Called up share capital
20
4,000
4,000
Revaluation reserve
21
427,485
427,485
Capital redemption reserve
22
22,200
22,200
Profit and loss reserves
1,797,164
1,775,458
Total equity
2,250,849
2,229,143
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 23 June 2025 and are signed on its behalf by:
Mr S N Dale
Director
Company registration number 00650649 (England and Wales)
F.P. (Tools) Limited
Statement Of Changes In Equity
For The Year Ended 30 September 2024
Page 10
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 October 2022
4,000
427,485
22,200
1,748,403
2,202,088
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
-
827,055
827,055
Dividends
11
-
-
-
(800,000)
(800,000)
Balance at 30 September 2023
4,000
427,485
22,200
1,775,458
2,229,143
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
-
754,341
754,341
Dividends
11
-
-
-
(732,635)
(732,635)
Balance at 30 September 2024
4,000
427,485
22,200
1,797,164
2,250,849
F.P. (Tools) Limited
Statement Of Cash Flows
For The Year Ended 30 September 2024
Page 11
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
893,958
1,528,125
Interest paid
(1,740)
(36,707)
Income taxes paid
(237,770)
(326,732)
Net cash inflow from operating activities
654,448
1,164,686
Investing activities
Purchase of intangible assets
(49,099)
Purchase of tangible fixed assets
(78,856)
(59,644)
Proceeds from disposal of tangible fixed assets
1,662
609
Interest received
2,069
Net cash used in investing activities
(124,224)
(59,035)
Financing activities
Repayment of bank loans
(42,083)
(626,000)
Dividends paid
(732,635)
(800,000)
Net cash used in financing activities
(774,718)
(1,426,000)
Net decrease in cash and cash equivalents
(244,494)
(320,349)
Cash and cash equivalents at beginning of year
(342,063)
(21,714)
Cash and cash equivalents at end of year
(586,557)
(342,063)
Relating to:
Cash at bank and in hand
154,598
174,073
Bank overdrafts included in creditors payable within one year
(741,155)
(516,136)
F.P. (Tools) Limited
Notes To The Financial Statements
For The Year Ended 30 September 2024
Page 12
1
Accounting policies
Company information
F.P. (Tools) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Warwick House, Tyseley Lane, Tyseley, Birmingham, B11 3PX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.
When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.
The company recognises revenue from the following major sources:
The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:
Sale of goods
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
1
Accounting policies
(Continued)
Page 13
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
10-20% on straight line basis
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% on straight line basis, land is not depreciated
Plant and equipment
12.5% on straight line basis (previously 15% on reducing balance)
Fixtures and fittings
15% on reducing balance
Computers
20% on straight line basis
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
During the year, the accounting estimate for depreciating plant and machinery has changed from 15% reducing balance to 12.5% straight line on cost. This has resulted in an additional £3,211 of depreciation charges recognised in the current year, with the net book value of plant and machinery being lowered accordingly. In future periods, plant and machinery will now be written off over a shorter time period.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
1
Accounting policies
(Continued)
Page 14
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
1
Accounting policies
(Continued)
Page 15
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
1
Accounting policies
(Continued)
Page 16
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
As lessee
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
1
Accounting policies
(Continued)
Page 17
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
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 amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock provision
Management reviews the stock balances to determine if stock is able to be sold at amounts greater than or equal to their carrying amounts plus any costs to sell. The review covers all stock lines to allow for the identification of obsolete and slow-moving stock items. The identification process includes reviewing historical performance of stock items along with current operational plans. The stock provision represents the difference between the cost of stock items and its estimated net realisable value.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of Goods
14,612,790
13,631,638
2024
2023
£
£
Turnover analysed by geographical market
UK
13,985,339
13,202,071
Asia & Middle East
346,454
346,970
Africa
176,246
16,494
Europe
55,609
15,210
USA
49,142
50,893
14,612,790
13,631,638
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
3
Turnover and other revenue
(Continued)
Page 18
2024
2023
£
£
Other revenue
Interest income
2,069
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
4,053
5,574
Depreciation of owned tangible fixed assets
61,448
29,543
Loss/(profit) on disposal of tangible fixed assets
248
(31)
Amortisation of intangible assets
1,859
2,900
Operating lease charges
136,263
100,253
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
6,200
5,250
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
3
3
Sales
11
11
Distribution
19
19
Administration
4
3
Purchasing
6
7
Finance
5
3
Total
48
46
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
6
Employees
(Continued)
Page 19
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,630,858
1,420,836
Social security costs
169,808
146,995
Pension costs
193,743
175,597
1,994,409
1,743,428
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
295,896
242,049
Company pension contributions to defined contribution schemes
74,533
62,500
370,429
304,549
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
163,124
139,513
Company pension contributions to defined contribution schemes
46,667
39,167
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
2,069
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
813
35,675
Other finance costs:
Other interest
927
1,032
1,740
36,707
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
Page 20
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
254,651
229,835
Adjustments in respect of prior periods
7,059
Total current tax
261,710
229,835
Deferred tax
Origination and reversal of timing differences
5,230
9,186
Total tax charge
266,940
239,021
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,021,281
1,066,076
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
255,320
234,643
Tax effect of expenses that are not deductible in determining taxable profit
2,986
2,400
Adjustments in respect of prior years
7,059
Effect of change in corporation tax rate
1,080
Permanent capital allowances in excess of depreciation
(489)
Depreciation on assets not qualifying for tax allowances
1,575
1,387
Taxation charge for the year
266,940
239,021
11
Dividends
2024
2023
£
£
Interim paid
732,635
800,000
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
Page 21
12
Intangible fixed assets
Software
£
Cost
At 1 October 2023
14,500
Additions
49,099
Disposals
(14,500)
At 30 September 2024
49,099
Amortisation and impairment
At 1 October 2023
14,500
Amortisation charged for the year
1,859
Disposals
(14,500)
At 30 September 2024
1,859
Carrying amount
At 30 September 2024
47,240
At 30 September 2023
Intangible fixed assets with a carrying amount of £47,240 (2023 - £nil) have been pledged to secure borrowings of the company.
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
Page 22
13
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 October 2023
630,000
271,162
80,873
139,816
6,646
1,128,497
Additions
33,930
22,835
22,091
78,856
Disposals
(100,267)
(2,162)
(102,429)
Transfers
15,900
(3,813)
(12,087)
At 30 September 2024
630,000
220,725
99,895
147,658
6,646
1,104,924
Depreciation and impairment
At 1 October 2023
26,560
184,519
62,317
103,356
3,340
380,092
Depreciation charged in the year
6,300
41,085
4,191
9,047
825
61,448
Eliminated in respect of disposals
(100,267)
(252)
(100,519)
Revaluation
3,213
(2)
3,211
Transfers
530
(876)
346
At 30 September 2024
32,860
129,080
65,632
112,495
4,165
344,232
Carrying amount
At 30 September 2024
597,140
91,645
34,263
35,163
2,481
760,692
At 30 September 2023
603,440
86,643
18,556
36,460
3,306
748,405
All tangible fixed assets with a carrying amount of £760,692 (2023 - £748,405) have been pledged to secure borrowings of the company.
The carrying value of land and buildings comprises:
2024
2023
£
£
Freehold
597,140
603,440
Land and buildings were revalued in 2020 by independent valuers. The valuations provided were at market value and conformed to international valuation standards, based on recent market transactions on arm’s length terms for similar properties. The value has not changed materially at 30 September 2024.
The revaluation surplus is disclosed in note 21.
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
13
Tangible fixed assets
(Continued)
Page 23
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
2024
2023
£
£
Cost
401,639
401,639
Accumulated depreciation
(201,467)
(197,451)
Carrying value
200,172
204,188
14
Stocks
2024
2023
£
£
Raw materials and consumables
572,622
612,393
The carrying amount of stocks includes £572,622 (2023 - £612,393) pledged as security for liabilities.
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,038,826
3,422,918
Amounts owed by group undertakings
300,000
754,914
Other debtors
8,564
Prepayments and accrued income
64,968
128,945
4,403,794
4,315,341
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
741,155
558,219
Trade creditors
2,414,610
2,415,724
Corporation tax
113,775
89,835
Other taxation and social security
180,530
185,971
Other creditors
17,329
20,005
Accruals and deferred income
179,810
315,657
3,647,209
3,585,411
The bank borrowings represent the invoice discounting facility. Barclays Bank holds a fixed and floating charge over the assets of the company.
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
Page 24
17
Loans and overdrafts
2024
2023
£
£
Bank loans
42,083
Bank overdrafts
741,155
516,136
741,155
558,219
Payable within one year
741,155
558,219
The bank borrowings represent the invoice discounting facility. Barclays Bank holds a fixed and floating charge over the assets of the company.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
40,888
35,658
2024
Movements in the year:
£
Liability at 1 October 2023
35,658
Charge to profit or loss
5,230
Liability at 30 September 2024
40,888
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
193,743
175,597
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Contributions totaling £17,329 (2023 - £15,255) were payable to the scheme at the end of the year and are included in creditors.
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
Page 25
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4,000
4,000
4,000
4,000
21
Revaluation reserve
Revaluation reserve represents the cumulative movement on revaluation of freehold property.
22
Capital redemption reserve
The capital redemption reserve contains the nominal value of own shares that have been acquired by the company and cancelled.
23
Guarantee
The company's Bankers have provided a guarantee to HM Revenue & Customs in connection with the Duty Deferment for goods imported from outside the European Union. The amount guaranteed is £15,000 (2023 - £30,000).
24
Operating lease commitments
As lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within 1 year
101,287
121,475
Years 2-5
140,305
176,402
241,592
297,877
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
Page 26
25
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
350,199
300,898
Transactions with related parties
During the year the company entered into the following transactions with related parties:
2024
2023
£
£
Other related parties
18,168
34,972
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Other related parties
-
8,597
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Other related parties
18,168
-
26
Ultimate controlling party
The immediate and ultimate parent undertaking is F P Tools Holdings Limited company number 12349514, a company incorporated in the UK.
The results of the company are consolidated into FP Tools Holdings Limited. Copies of the consolidated accounts are available from the registered office, The Carriage House, Mill Street, Maidstone, Kent, ME15 6YE.
F.P. (Tools) Limited
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
Page 27
27
Cash generated from operations
2024
2023
£
£
Profit after taxation
754,341
827,055
Adjustments for:
Taxation charged
266,940
239,021
Finance costs
1,740
36,707
Investment income
(2,069)
Loss/(gain) on disposal of tangible fixed assets
248
(31)
Amortisation and impairment of intangible assets
1,859
2,900
Depreciation and impairment of tangible fixed assets
64,660
29,543
Movements in working capital:
Decrease/(increase) in stocks
39,771
(167,786)
Increase in debtors
(88,453)
(224,370)
(Decrease)/increase in creditors
(145,079)
785,086
Cash generated from operations
893,958
1,528,125
28
Analysis of changes in net debt
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
174,073
(19,475)
154,598
Bank overdrafts
(516,136)
(225,019)
(741,155)
(342,063)
(244,494)
(586,557)
Borrowings excluding overdrafts
(42,083)
42,083
-
(384,146)
(202,411)
(586,557)
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