Registration number:
Fitrite Fencing & Decking Limited
for the Period from 1 October 2022 to 31 March 2024
Fitrite Fencing & Decking Limited
Contents
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account and Statement of Retained Earnings |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Fitrite Fencing & Decking Limited
Strategic Report for the period from 1 October 2022 to 31 March 2024
The directors present their strategic report for the period from 1 October 2022 to 31 March 2024.
Principal activity
The principal activity of the group is the sale of uPVC fencing and decking products to both residential and commercial sectors of the UK market.
Fair review of the business
The reporting period covers 18 months from 1 October 2022 to 31 March 2024, following a decision to align the company’s financial year end with wider group reporting timetables and to better reflect the seasonality of the decking sector. The extended period also captures the lead-up to a management buyout (MBO), which successfully completed in February 2025.
During the period, the group recorded a statutory loss of £3.97m, including exceptional costs of £3.52m. These exceptional charges primarily relate to a £2.8m provision against an intercompany balance now deemed irrecoverable. This charge is considered historic in nature and does not affect the ongoing profitability or operations of the business. A further £0.7m of restructuring costs were incurred as part of a wider strategic realignment of the business.
The broader economic environment remained challenging, particularly due to volatility in raw material and energy pricing, as well as a return to pre-Covid trading volumes following the exceptional “staycation” boom of recent years.
The Directors note that while headline results reflect an 18-month accounting period, some users may not see proportional movements when comparing to prior 12-month periods due to one-off adjustments, non-linear trading patterns, and timing differences related to the exceptional items.
Future developments
The MBO in February 2025 marked a significant milestone for the business, transferring ownership from Praesidian Capital to a newly appointed, experienced, leadership team. This transition has brought renewed focus, agility, and accountability to the organisation, with the management team now directly responsible for delivering performance improvements and driving long-term value creation. The new ownership structure has also enabled quicker decision-making, greater operational alignment, and a sharper strategic focus across the business.
Key elements of this restructure included the renewed focus on profitable domestic sales in core regions, and the development of a robust installer network. This was accompanied by consolidation of headcount, strengthening of the supply chain, and improved purchasing arrangements. These actions, combined with a simplification of the group structure and increased empowerment of the management team, position the business well for sustainable performance.
Fitrite Fencing & Decking Limited
Strategic Report for the period from 1 October 2022 to 31 March 2024
Principal risks and uncertainties
Market risk:
Increasing Inflation and interest rates in the UK economy have a negative effect on the company’s input and employment costs. In turn, these factors result in reduced disposable income among the company’s consumer base and with it, a general reduction in consumer confidence.
Market expectations is that inflation will normalise over the next 12 months and with it so will demand for staycations and home improvements.
The company diversifies market risk where possible by operating within multiple markets including but not limited to Leisure, Home Improvements, and Hospitality sectors.
The company is exposed to price risk as fluctuations in raw material prices can impact on suppliers.
Competition risk:
The company operates in a competitive market with other manufacturers and installers trying to win customers. While price is a key consideration, product quality and timeliness of supply are also important to our customers and these considerations lead to a decision based on the overall best value rather than price alone. The company has longstanding trading relationships with most of the national holiday park operators and enjoys preferred supplier status on many of their parks. These market leading service levels and strong customer relationships provide a significant competitive advantage.
Credit risk:
Credit risk is the potential exposure of the company to loss in the event of non-performance by a counter party. The company controls this risk through its insurance cover, credit approval checks for new customers and regular reviews of credit limits where applicable.
Cash flow and liquidity risk:
The decking industry is seasonal but predictable with cash flows being positive during the summer months and negative in the winter. Cash management is a key focus for the company to mitigate the liquidity risk caused by theses seasonal fluctuations.
The company arranged an overdraft facility in 2023 which is renewed annually. The overdraft is there to support working capital requirements particularly during the winter months and as thus far been unused.
Current forecasts and projections, accounting for reasonable changes in trading conditions are reviewed regularly to ensure the company can continue to operate within its working capital facilities for the foreseeable future.
Interest rate risk:
The company faces interest rate risk on its external debt. The company mitigates this risk by fixing the interest rates payable on its loans allowing for more accurate cashflow forecasts.
Approved and authorised by the
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Fitrite Fencing & Decking Limited
Directors' Report for the Period from 1 October 2022 to 31 March 2024
The directors present their report and the for the period from 1 October 2022 to 31 March 2024.
Directors of the group
The directors who held office during the period were as follows:
Information included in the Strategic Report
All items required under Sch. 7 of Large and Medium-sized Companies and Groups (Accounts and Reports Regulations) 2008 to be disclosed in the directors’ report are set out in the strategic report in accordance with s.414C(11) CA 2006.
Disclosure of information to the auditor
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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
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Fitrite Fencing & Decking Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Fitrite Fencing & Decking Limited
Independent Auditor's Report to the Members of Fitrite Fencing & Decking Limited
Opinion
We have audited the financial statements of Fitrite Fencing & Decking Limited (the 'parent company') and its subsidiaries (the 'group') for the period from 1 October 2022 to 31 March 2024, which comprise the Consolidated Profit and Loss Account and Statement of Retained Earnings, Consolidated Balance Sheet, Balance Sheet, Consolidated 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 group's and parent company's affairs as at 31 March 2024 and of the group's loss for the period 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical 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 group'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.
Fitrite Fencing & Decking Limited
Independent Auditor's Report to the Members of Fitrite Fencing & Decking 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:
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the information given in the Strategic Report and Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
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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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 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 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:
Fitrite Fencing & Decking Limited
Independent Auditor's Report to the Members of Fitrite Fencing & Decking Limited
In planning and designing our audit tests, we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.
Following this assessment we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in evaluating the stock.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates, to enable us to identify the key laws and regulations applicable to the company. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.
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.
We then performed audit procedures after consideration of the above risks which included the following:
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obtaining a detailed understanding of the methodology adopted by management and key assumptions underpinning the calculation of stock; |
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enquiring of management concerning actual and potential litigation and claims; |
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reviewing correspondence with HMRC and the group's legal advisors; |
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
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reading minutes of meetings of those charged with governance; and; |
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in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
All engagement team members were informed of the relevant laws and regulations and potential fraud risks at the planning stage and reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify such items.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
Fitrite Fencing & Decking Limited
Independent Auditor's Report to the Members of Fitrite Fencing & Decking Limited
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.
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For and on behalf of
Statutory Auditors & Chartered Accountants
Fitrite Fencing & Decking Limited
Consolidated Profit and Loss Account and Statement of Retained Earnings for the Period from 1 October 2022 to 31 March 2024
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Note |
1 October 2022 to 31 March |
1 October 2021 to 30 September |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Distribution costs |
( |
( |
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Administrative expenses |
( |
( |
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Operating (loss)/profit |
( |
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Exceptional items |
( |
( |
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Interest payable and similar charges |
( |
( |
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(Loss)/profit before tax |
( |
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Taxation |
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( |
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(Loss)/profit for the financial period |
( |
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Profit/(loss) attributable to: |
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Owners of the company |
( |
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Retained earnings brought forward |
4,823,340 |
2,938,806 |
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Retained earnings carried forward |
848,878 |
4,823,340 |
Fitrite Fencing & Decking Limited
(Registration number: 07313572)
Consolidated Balance Sheet as at 31 March 2024
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Note |
31 March |
30 September |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current (liabilities)/assets |
( |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
- |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Retained earnings |
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Equity attributable to owners of the company |
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Shareholders' funds |
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Approved and authorised by the
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Fitrite Fencing & Decking Limited
(Registration number: 07313572)
Balance Sheet as at 31 March 2024
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Note |
31 March |
30 September |
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£ |
£ |
£ |
£ |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investments |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current (liabilities)/assets |
( |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
- |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
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Shareholders' funds |
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The exemption under section 408 of the Companies Act has been taken therefore a Company Profit and Loss Account is not included. The company made a loss after tax for the financial period of £3,673,195 (2022 - profit of £1,915,714).
Approved and authorised by the
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Fitrite Fencing & Decking Limited
Consolidated Statement of Cash Flows for the Period from 1 October 2022 to 31 March 2024
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Note |
1 October 2022 to 31 March |
1 October 2021 to 30 September |
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Cash flows from operating activities |
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(Loss)/profit for the period |
( |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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Loss on disposal of tangible assets |
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- |
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Finance costs |
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Corporation tax expense |
( |
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( |
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Working capital adjustments |
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Decrease in stocks |
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Decrease/(increase) in trade debtors |
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( |
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(Decrease)/increase in trade creditors |
( |
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Cash generated from operations |
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Corporation taxes paid |
( |
( |
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Net cash flow from operating activities |
( |
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Cash flows from investing activities |
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Acquisitions of tangible assets |
( |
( |
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Proceeds from sale of tangible assets |
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- |
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Net cash flows from investing activities |
( |
( |
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Cash flows from financing activities |
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Interest paid |
( |
( |
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Payments to finance lease creditors |
( |
( |
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Net cash flows from financing activities |
( |
( |
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Net (decrease)/increase in cash and cash equivalents |
( |
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Cash and cash equivalents at 1 October |
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Cash and cash equivalents at 31 March |
629,726 |
1,670,966 |
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Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
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General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The company's functional and presentation currency is pound sterling.
Summary of disclosure exemptions
The company has taken advantage of the exemption under Financial Reporting Standard 102 Section 1AC.35 from disclosing transactions and balances with fellow group undertakings that are wholly owned.
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2024.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Disclosure of long or short period
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
Key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets and their carrying amount is determined by the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually and amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The carrying amount is £833,611 (2022 -£1,015,172).
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 value added tax.
The company recognises revenue when the significant risks and rewards of ownership have been transferred to the buyer; the company retains no continuing involvement or control over the goods; the amount of revenue can be measured reliably and it is probable that future economic benefits will flow to the entity.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
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 corporation 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 group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated 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.
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
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:
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Asset class |
Depreciation method and rate |
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Leasehold property improvements |
10% straight line |
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Plant and machinery |
10-33.3% straight line |
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Furniture, fittings & equipment |
33% straight line |
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Office equipment |
33% straight line |
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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.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
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Asset class |
Amortisation method and rate |
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Goodwill |
10% straight line |
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.
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.
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 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 group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
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.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.
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.
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
Financial instruments
Financial assets
Basic financial assets, including trade and other receivables, are initially recognised at transaction price, 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 for a similar asset. Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 and any subsequent reversal is recognised in profit or loss.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities
Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
|
Turnover |
The analysis of the group's Turnover for the period from continuing operations is as follows:
|
1 October 2022 to 31 March |
1 October 2021 to 30 September |
|
|
Sale of goods |
|
|
|
Rendering of services |
|
|
|
|
|
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
|
Operating (loss)/profit |
Arrived at after charging/(crediting)
|
1 October 2022 to 31 March |
1 October 2021 to 30 September |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
Loss on disposal of property, plant and equipment |
|
- |
|
Exceptional items |
|
1 October 2022 to 31 March |
1 October 2021 to 30 September |
|
|
Exceptional items |
3,515,930 |
858,724 |
Exceptional costs in the period relate primarily to the writedown of an historic intercompany balance deemed irrecoverable following a group restructure, alongside costs associated with the operational realignment of the business.
|
Interest payable and similar expenses |
|
1 October 2022 to 31 March |
1 October 2021 to 30 September |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
( |
|
Foreign exchange (losses)/gains |
( |
|
|
|
|
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
1 October 2022 to 31 March |
1 October 2021 to 30 September |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the period, analysed by category was as follows:
|
1 October 2022 to 31 March |
1 October 2021 to 30 September |
|
|
Manufacturing and installation |
|
|
|
Office and management |
|
|
|
Selling and distribution |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the period was as follows:
|
1 October 2022 to 31 March |
1 October 2021 to 30 September |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
491,204 |
214,928 |
During the period the number of directors who were receiving benefits and share incentives was as follows:
|
1 October 2022 to 31 March |
1 October 2021 to 30 September |
|
|
Accruing benefits under money purchase pension scheme |
|
|
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
In respect of the highest paid director:
|
1 October 2022 to 31 March |
1 October 2021 to 30 September |
|
|
Remuneration |
|
|
|
Auditors' remuneration |
|
1 October 2022 to 31 March |
1 October 2021 to 30 September |
|
|
Audit of these financial statements |
21,000 |
17,000 |
|
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
- |
5,400 |
|
|
|
|
|
Other fees to auditors |
||
|
Taxation compliance services |
|
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
1 October 2022 to 31 March |
1 October 2021 to 30 September |
|
|
Current taxation |
||
|
UK corporation tax |
( |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
|
|
Tax (receipt)/expense in the income statement |
( |
|
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
1 October 2022 to 31 March |
1 October 2021 to 30 September |
|
|
(Loss)/profit before tax |
( |
|
|
Corporation tax at standard rate |
( |
|
|
Tax decrease from effect of capital allowances and depreciation |
( |
( |
|
Tax (decrease)/increase from other short-term timing differences |
( |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Deferred tax expense from unrecognised temporary difference from a prior period |
|
- |
|
Total tax (credit)/charge |
( |
|
Deferred tax
Group
Deferred tax assets and liabilities
|
2024 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Other provisions |
- |
( |
|
- |
- |
|
2022 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Other provisions |
- |
( |
|
- |
|
The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
|
Intangible assets |
Group
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 October 2022 |
|
|
|
At 31 March 2024 |
|
|
|
Amortisation |
||
|
At 1 October 2022 |
|
|
|
Amortisation charge |
|
|
|
At 31 March 2024 |
|
|
|
Carrying amount |
||
|
At 31 March 2024 |
|
|
|
At 30 September 2022 |
|
|
Company
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 October 2022 |
|
|
|
At 31 March 2024 |
|
|
|
Amortisation |
||
|
At 1 October 2022 |
|
|
|
Amortisation charge |
|
|
|
At 31 March 2024 |
|
|
|
Carrying amount |
||
|
At 31 March 2024 |
|
|
|
At 30 September 2022 |
|
|
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
|
Tangible assets |
Group
|
Land and buildings |
Plant and machinery |
Furniture, fittings and equipment |
Office equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||||
|
At 1 October 2022 |
|
|
|
|
700,637 |
|
|
Additions |
- |
|
- |
|
|
|
|
Disposals |
- |
( |
- |
( |
( |
( |
|
At 31 March 2024 |
|
|
|
|
|
|
|
Depreciation |
||||||
|
At 1 October 2022 |
|
|
|
|
|
|
|
Charge for the period |
|
|
- |
|
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
( |
( |
|
Impairment |
- |
- |
- |
|
- |
|
|
Foreign exchange movements |
- |
- |
- |
( |
- |
( |
|
At 31 March 2024 |
|
|
|
|
|
|
|
Carrying amount |
||||||
|
At 31 March 2024 |
|
|
- |
|
|
|
|
At 30 September 2022 |
|
|
- |
|
|
|
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:
|
31 March |
30 September |
|
|
Vehicles, plant and machinery |
320,078 |
397,627 |
Restriction on title and pledged as security
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
Company
|
Land and buildings |
Plant and machinery |
Furniture, fittings and equipment |
Office equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||||
|
At 1 October 2022 |
|
|
|
|
|
|
|
Revaluations |
- |
- |
- |
|
- |
|
|
Additions |
- |
|
- |
|
|
|
|
Disposals |
- |
( |
- |
( |
( |
( |
|
At 31 March 2024 |
|
|
|
|
|
|
|
Depreciation |
||||||
|
At 1 October 2022 |
|
|
|
|
|
|
|
Charge for the period |
|
|
- |
|
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
( |
( |
|
Impairment |
- |
- |
- |
|
- |
|
|
At 31 March 2024 |
|
|
|
|
|
|
|
Carrying amount |
||||||
|
At 31 March 2024 |
|
|
- |
|
|
|
|
At 30 September 2022 |
|
|
- |
|
|
|
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:
|
31 March |
30 September |
|
|
Vehicles, plant and machinery |
320,078 |
397,627 |
Restriction on title and pledged as security
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
|
Investments |
Company
|
31 March |
30 September |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 October 2022 |
|
|
Carrying amount |
|
|
At 31 March 2024 |
|
|
At 30 September 2022 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2024 |
2022 |
|||
|
Subsidiary undertakings |
||||
|
|
Unit F, St Mowden Park, Spinners Road, Wheatley Hall Road, Doncaster, DN2 4LT |
|
|
|
|
|
Unit F, St Mowden Park, Spinners Road, Wheatley Hall Road, Doncaster, DN2 4LT |
|
|
|
|
|
Unit F, St Mowden Park, Spinners Road, Wheatley Hall Road, Doncaster, DN2 4LT |
|
|
|
|
|
Unit F, St Mowden Park, Spinners Road, Wheatley Hall Road, Doncaster, DN2 4LT |
|
|
|
|
|
Unit F, St Mowden Park, Spinners Road, Wheatley Hall Road, Doncaster, DN2 4LT |
|
|
|
* denotes a sub-subsidiary.
For the period ending 31 March 2024 the following subsidiaries were entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies:
Fitrite South Limited (registered number: 12502113)
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
|
Stocks |
|
Group |
Company |
|||
|
31 March |
30 September |
31 March |
30 September |
|
|
Other stocks |
|
|
|
|
|
Debtors |
|
Group |
Company |
||||
|
Current |
Note |
31 March |
30 September |
31 March |
30 September |
|
Trade debtors |
|
|
|
|
|
|
Amounts owed by related parties |
- |
|
- |
|
|
|
Other debtors |
|
|
|
|
|
|
Prepayments |
|
|
|
|
|
|
Corporation tax asset |
|
- |
|
- |
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
31 March |
30 September |
31 March |
30 September |
|
|
Cash on hand |
|
|
|
|
|
Cash at bank |
|
|
|
|
|
|
|
|
|
|
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
|
Creditors |
|
Group |
Company |
||||
|
Note |
31 March |
30 September |
31 March |
30 September |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Trade creditors |
|
|
|
|
|
|
Amounts due to related parties |
|
|
|
|
|
|
Social security and other taxes |
|
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
|
|
Other creditors |
|
|
|
|
|
|
Accruals |
|
|
|
|
|
|
Corporation tax liability |
- |
581,324 |
- |
512,456 |
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Loans and borrowings |
Current loans and borrowings
|
Group |
Company |
|||
|
31 March |
30 September |
31 March |
30 September |
|
|
Hire purchase contracts |
|
|
|
|
|
Other borrowings |
|
|
|
|
|
|
|
|
|
|
Non-current loans and borrowings
|
Group |
Company |
|||
|
31 March |
30 September |
31 March |
30 September |
|
|
Hire purchase contracts |
|
|
|
|
|
Other borrowings |
- |
|
- |
|
|
|
|
|
|
|
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
Group and company
Other borrowings
Hire purchase contracts are denominated in sterling with a nominal interest rate of various commercial rates, and the final instalment is due on 30 September 2026. The carrying amount at year end is £288,533 (2022 - £367,472).
Tangible assets with a net book value of £320,078 (2022 - £397,627) are pledged as collateral against hire purchase contracts.
|
Provisions for liabilities |
Group
|
Deferred tax |
Total |
|
|
At 1 October 2022 |
|
|
|
Increase (decrease) in existing provisions |
( |
( |
|
At 31 March 2024 |
- |
- |
|
|
||
Company
|
Deferred tax |
Total |
|
|
At 1 October 2022 |
|
|
|
Increase (decrease) in existing provisions |
( |
( |
|
At 31 March 2024 |
- |
- |
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
31 March |
30 September |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
304,056 |
|
304,056 |
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
|
Reserves |
Group and company
Share capital
Represents the nominal value of shares issued.
Profit and loss account
Includes all current and prior periods distributable profits and losses.
|
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
|
31 March |
30 September |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
31 March |
30 September |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the period was £
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
Company
Finance leases
The total of future minimum lease payments is as follows:
|
31 March |
30 September |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
31 March |
30 September |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the period was £
|
Commitments |
Company
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
|
Related party transactions |
Group
Summary of transactions with other related parties
Income and receivables from related parties
|
2024 |
Parent |
|
Amounts receivable from related party |
- |
|
|
|
|
2022 |
Parent |
|
Amounts receivable from related party |
|
|
|
|
Expenditure with and payables to related parties
|
2024 |
Parent |
Other related parties |
|
Rendering of services |
|
- |
|
Amounts payable to related party |
- |
|
|
|
||
|
2022 |
Parent |
Other related parties |
|
Rendering of services |
|
- |
|
Amounts payable to related party |
- |
|
|
|
||
Fitrite Fencing & Decking Limited
Notes to the Financial Statements for the Period from 1 October 2022 to 31 March 2024
Company
Summary of transactions with other related parties
Income and receivables from related parties
|
2024 |
Parent |
|
Amounts receivable from related party |
- |
|
|
|
|
2022 |
Parent |
|
Amounts receivable from related party |
|
|
|
|
Expenditure with and payables to related parties
|
2024 |
Other related parties |
|
Amounts payable to related party |
|
|
|
|
|
2022 |
Parent |
Other related parties |
|
Rendering of services |
|
- |
|
Amounts payable to related party |
- |
|
|
|
||
|
Parent and ultimate parent undertaking |
The company's immediate parent is
The most senior parent entity producing publicly available financial statements is
On 6 February 2025, Fitrite Group Limited became the ultimate parent of Fitrite Fencing & Decking Limited.