Company registration number 10067127 (England and Wales)
FLETCHERS ENGINEERING GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
FLETCHERS ENGINEERING GROUP LIMITED
COMPANY INFORMATION
Directors
G J Colclough
S J Fletcher
Company number
10067127
Registered office
J.Fletcher Works, James Nasmyth Way
Nasmyth Business Park
Eccles
Manchester
M30 0SF
Auditor
Champion Accountants LLP
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
FLETCHERS ENGINEERING GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 30
FLETCHERS ENGINEERING GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 November 2024.
Principal Activities
The principal activities of the group are building services, heating and ventilating and air conditioning, together with industrial process, plant installation including both pre-site and on-site fabrication of steelwork, pipe work, tanks and vessels for a wide variety of industries. Maintenance of clients building services facilities is also a significant part of turnover.
Results and Performance
The results of the group for the year show a profit on ordinary activities before tax of £997,751. The shareholder's funds of the company total £3,719,038 as at the year end.
2024 proved to be a significantly good year for the business as several large contracts came to fruition allowing us to realise efficiencies and economies of scale. The business continues into 2025 with a strong order book, ongoing contracts with our longstanding maintenance clients, as well as new business tenders.
Key Performance Indicators (KPIs)
2024 2023 Change
£000 £000 %
Turnover 16,665 15,179 9.79
EBIT 1,203 706 70.40
The principal KPIs are shown above. KPIs are set at various levels throughout the group down to a project level and are closely monitored to control the critical aspects of the group's financial performance.
Principal Risks and Uncertainties
The group is exposed to economic, sector, contract and credit risk. The group mitigates its sector risk by spreading its profit centres over a number of different activities such as technical services, fabrication, heating and ventilation and textile machinery. Due to the current economic conditions, the operating environment of the group continues to be challenging. The group is heavily reliant on strong capital investment by both the public and private sectors for future works. Operational reviews are regularly undertaken to consider the risks specific to individual contracts. The group reduces its exposure to credit risk by carrying out credit checks on potential customers.
Business Environment
2024 proved to be a significantly good year for the group positively impacting our short-term performance and decisions during the year, while the long-term direction of the groupy remains unchanged.
The group continues to secure contracts for the installation of heat pumps in 2025; The order book looks strong for 2025, and our in-depth knowledge of these systems should give us a competitive advantage when looking at securing more work in this relatively new development.
We’ve also secured new long term maintenance contracts for 2025 with existing and new customers.
FLETCHERS ENGINEERING GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 2 -
Strategy
The group will continue to optimise its financial position by maximising return of its major resources of trained labour, maintenance contracts, offsite fabrication facilities and internal infrastructure.
Carbon Reduction
During 2024 we’ve continued to invest in more electric vehicles, the business’ commitment to offsite design for manufacturing and assembly (DFMA) should result in less transporting costs and reduce our carbon footprint further. We continue to make use of the solar panels on our site which provide 80 Kilowatts of renewable energy; 24% of our total consumption came through the solar panels.
S J Fletcher
Director
2 July 2025
FLETCHERS ENGINEERING GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 November 2024.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
G J Colclough
S J Fletcher
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £122,935. The directors do not recommend payment of a further dividend.
Auditor
The auditor, Champion Accountants LLP, 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 auditor of the company 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 auditor of the company is aware of that information.
On behalf of the board
S J Fletcher
Director
2 July 2025
FLETCHERS ENGINEERING GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 4 -
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 group and company, and of the profit or loss of the group 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
FLETCHERS ENGINEERING GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FLETCHERS ENGINEERING GROUP LIMITED
- 5 -
Opinion
We have audited the financial statements of Fletchers Engineering Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group's and the parent company's affairs as at 30 November 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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.
FLETCHERS ENGINEERING GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FLETCHERS ENGINEERING GROUP LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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 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 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
As part of our planning process:
- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102 and Companies Act 2006.
- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment
accordingly.
- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
FLETCHERS ENGINEERING GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FLETCHERS ENGINEERING GROUP LIMITED
- 7 -
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to depreciation methods, amounts recoverable on contracts & cut-off.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
- Testing key revenue lines, in particular cut-off, for evidence of management bias.
- Performing a physical verification of key assets.
- Obtaining third-party confirmation of material bank balances.
- Documenting and verifying all significant related party balances and transactions.
There are inherent limitations in the 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. The risk of not detecting a material misstatement resulting from fraud is higher than one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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 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.
Mark Turner FCA (Senior Statutory Auditor)
For and on behalf of Champion Accountants LLP
2 July 2025
Chartered Accountants
Statutory Auditor
1 Worsley Court
High Street
Worsley
Manchester
M28 3NJ
FLETCHERS ENGINEERING GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
16,664,910
15,179,735
Cost of sales
(11,720,568)
(11,065,661)
Gross profit
4,944,342
4,114,074
Administrative expenses
(3,740,970)
(3,408,092)
Operating profit
4
1,203,372
705,982
Interest receivable and similar income
7
326
Interest payable and similar expenses
8
(205,621)
(214,057)
Profit before taxation
997,751
492,251
Tax on profit
9
(287,653)
(102,155)
Profit for the financial year
25
710,098
390,096
Other comprehensive income
Revaluation of tangible fixed assets
998,537
Tax relating to other comprehensive income
(249,634)
Total comprehensive income for the year
710,098
1,138,999
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
FLETCHERS ENGINEERING GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 NOVEMBER 2024
30 November 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
Tangible assets
12
4,018,863
3,962,454
4,018,863
3,962,454
Current assets
Stocks
15
50,000
50,000
Debtors
16
3,877,404
3,892,885
Cash at bank and in hand
1,646,883
861,342
5,574,287
4,804,227
Creditors: amounts falling due within one year
17
(3,817,214)
(3,389,999)
Net current assets
1,757,073
1,414,228
Total assets less current liabilities
5,775,936
5,376,682
Creditors: amounts falling due after more than one year
18
(1,532,355)
(1,735,219)
Provisions for liabilities
Deferred tax liability
21
524,543
509,588
(524,543)
(509,588)
Net assets
3,719,038
3,131,875
Capital and reserves
Called up share capital
23
210
210
Revaluation reserve
25
748,903
748,903
Profit and loss reserves
25
2,969,925
2,382,762
Total equity
3,719,038
3,131,875
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 2 July 2025 and are signed on its behalf by:
02 July 2025
S J Fletcher
Director
Company registration number 10067127 (England and Wales)
FLETCHERS ENGINEERING GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2024
30 November 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
632,875
632,875
Total assets less current liabilities
632,875
632,875
Capital and reserves
Called up share capital
23
210
210
Profit and loss reserves
25
632,665
632,665
Total equity
632,875
632,875
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £122,935 (2023 - £24,000 profit).
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 2 July 2025 and are signed on its behalf by:
02 July 2025
S J Fletcher
Director
Company registration number 10067127 (England and Wales)
FLETCHERS ENGINEERING GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 December 2022
210
2,016,666
2,016,876
Year ended 30 November 2023:
Profit for the year
-
-
390,096
390,096
Other comprehensive income:
Revaluation of tangible fixed assets
-
998,537
-
998,537
Tax relating to other comprehensive income
-
(249,634)
(249,634)
Total comprehensive income
-
748,903
390,096
1,138,999
Dividends
10
-
-
(24,000)
(24,000)
Balance at 30 November 2023
210
748,903
2,382,762
3,131,875
Year ended 30 November 2024:
Profit and total comprehensive income
-
-
710,098
710,098
Dividends
10
-
-
(122,935)
(122,935)
Balance at 30 November 2024
210
748,903
2,969,925
3,719,038
FLETCHERS ENGINEERING GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2022
210
632,665
632,875
Year ended 30 November 2023:
Profit and total comprehensive income for the year
-
24,000
24,000
Dividends
10
-
(24,000)
(24,000)
Balance at 30 November 2023
210
632,665
632,875
Year ended 30 November 2024:
Profit and total comprehensive income
-
122,935
122,935
Dividends
10
-
(122,935)
(122,935)
Balance at 30 November 2024
210
632,665
632,875
FLETCHERS ENGINEERING GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
1,691,462
667,288
Interest paid
(205,621)
(214,057)
Income taxes (paid)/refunded
(122,898)
423,645
Net cash inflow from operating activities
1,362,943
876,876
Investing activities
Purchase of tangible fixed assets
(378,037)
(167,515)
Proceeds on disposal of tangible fixed assets
110,991
45,625
Interest received
326
Net cash used in investing activities
(267,046)
(121,564)
Financing activities
Repayment of bank loans
(240,675)
(241,413)
Payment of finance leases obligations
53,254
(24,145)
Dividends paid to equity shareholders
(122,935)
(24,000)
Net cash used in financing activities
(310,356)
(289,558)
Net increase in cash and cash equivalents
785,541
465,754
Cash and cash equivalents at beginning of year
861,342
395,588
Cash and cash equivalents at end of year
1,646,883
861,342
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 14 -
1
Accounting policies
Company information
Fletchers Engineering Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is J.Fletcher Works, James Nasmyth Way, Nasmyth Business Park, Eccles, Manchester, M30 0SF.
The group consists of Fletchers Engineering Group Limited and all of its subsidiaries.
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.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Fletchers Engineering Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 November 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
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% straight line
Plant and equipment
15% straight line
Fixtures and fittings
15% straight line
Computers
15% straight line
Motor vehicles
25% 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 recognised in the profit and loss account.
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.7
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
1.9
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.
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.10
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.
1.11
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
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 group 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.
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 18 -
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 group 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the group 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 group.
1.13
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 19 -
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 if, and only if, there is 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.
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leased asset are consumed.
1.17
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.
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 20 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of goods
182,521
97,417
Sales of services
16,482,389
15,082,318
16,664,910
15,179,735
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
16,482,389
15,082,318
Overseas
182,521
97,417
16,664,910
15,179,735
2024
2023
£
£
Other revenue
Interest income
-
326
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(836)
33
Depreciation of owned tangible fixed assets
47,555
46,872
Depreciation of tangible fixed assets held under finance leases
109,699
78,372
Loss on disposal of tangible fixed assets
53,383
957
Operating lease charges
9,061
15,102
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 21 -
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 group and company
-
-
Audit of the financial statements of the company's subsidiaries
16,500
19,550
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
7
5
2
2
Production staff
99
101
-
-
Administrative staff
27
31
-
-
Total
133
137
2
2
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,121,174
5,435,334
Social security costs
663,560
581,554
-
-
Pension costs
356,651
191,546
7,141,385
6,208,434
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
326
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 22 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
106,164
113,544
Interest on invoice finance arrangements
71,796
65,761
Interest on finance leases and hire purchase contracts
27,661
23,899
Other interest
-
10,853
Total finance costs
205,621
214,057
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
272,698
122,897
Adjustments in respect of prior periods
(65,694)
Total current tax
272,698
57,203
Deferred tax
Origination and reversal of timing differences
14,955
44,952
Total tax charge
287,653
102,155
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
997,751
492,251
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.01%)
249,438
113,267
Tax effect of expenses that are not deductible in determining taxable profit
38,215
6,585
Tax effect of utilisation of tax losses not previously recognised
(2,296)
Permanent capital allowances in excess of depreciation
50,293
Research and development tax credit
(57,797)
Under/(over) provided in prior years
(7,897)
Taxation charge
287,653
102,155
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
9
Taxation
(Continued)
- 23 -
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of property
-
249,634
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
122,935
24,000
11
Intangible fixed assets
Group
Negative goodwill
£
Cost
At 1 December 2023 and 30 November 2024
(117,980)
Amortisation and impairment
At 1 December 2023 and 30 November 2024
(117,980)
Carrying amount
At 30 November 2024
At 30 November 2023
The company had no intangible fixed assets at 30 November 2024 or 30 November 2023.
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 24 -
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 December 2023
3,300,000
380,062
27,104
61,652
838,090
4,606,908
Additions
23,221
1,285
34,340
319,191
378,037
Disposals
(310,085)
(310,085)
At 30 November 2024
3,300,000
403,283
28,389
95,992
847,196
4,674,860
Depreciation and impairment
At 1 December 2023
293,392
19,191
47,345
284,526
644,454
Depreciation charged in the year
30,293
2,538
5,763
118,660
157,254
Eliminated in respect of disposals
(145,711)
(145,711)
At 30 November 2024
323,685
21,729
53,108
257,475
655,997
Carrying amount
At 30 November 2024
3,300,000
79,598
6,660
42,884
589,721
4,018,863
At 30 November 2023
3,300,000
86,670
7,913
14,307
553,564
3,962,454
The company had no tangible fixed assets at 30 November 2024 or 30 November 2023.
The carrying value of land and buildings comprises:
Group
Company
2024
2023
2024
2023
£
£
£
£
Freehold
3,300,000
3,300,000
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
564,450
522,190
Land and buildings with a carrying amount of £3,300,000 were revalued at 4 October 2023 by Roger Hannah Chartered Surveyors, independent valuers not connected with the group on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. As at 30 November 2024, management feel that the valuation is materially correct.
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 25 -
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
632,875
632,875
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 December 2023 and 30 November 2024
632,875
Carrying amount
At 30 November 2024
632,875
At 30 November 2023
632,875
14
Subsidiaries
Details of the company's subsidiaries at 30 November 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Callow Engineering Limited
England & Wales
Dormant
Ordinary
0
100.00
Callow Process Systems Limited
England & Wales
Dormant
Ordinary
0
100.00
Fletcher Engineering Group Limited
England & Wales
Dormant
Ordinary
0
100.00
J Fletcher (Engineers) Limited
England & Wales
Engineering
Ordinary
100.00
-
Parex Mather Limited
England & Wales
Dormant
Ordinary
0
100.00
Sir James Farmer Norton (UK) Limited
England & Wales
Dormant
Ordinary
0
100.00
William Birch (Machinery) Limited
England & Wales
Dormant
Ordinary
0
100.00
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
50,000
50,000
-
-
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 26 -
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,802,046
2,831,280
Amounts recoverable on contracts
750,450
644,002
Other debtors
5
5
Prepayments and accrued income
324,903
417,598
3,877,404
3,892,885
-
-
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
19
245,381
241,412
Obligations under finance leases
20
116,723
105,249
Trade creditors
1,812,602
2,134,487
Corporation tax payable
480,643
330,843
Other taxation and social security
510,616
245,717
-
-
Other creditors
116,170
13,515
Accruals and deferred income
535,079
318,776
3,817,214
3,389,999
Obligations under finance leases and hire purchase contracts are secured on the assets concerned.
Included in other creditors is an amount of £364 (2023: Cr £11,969) due to Bibby Financial Services Limited which is secured by a fixed and floating charge over the group's assets.
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
1,166,895
1,411,539
Obligations under finance leases
20
365,460
323,680
1,532,355
1,735,219
-
-
Obligations under finance leases and hire purchase contracts are secured on the assets concerned.
Amounts included above which fall due after five years are as follows:
Payable by instalments
818,989
912,557
-
-
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 27 -
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,412,276
1,652,951
Payable within one year
245,381
241,412
Payable after one year
1,166,895
1,411,539
Bank loans are secured by way of a fixed and floating charge over the assets of the group.
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
116,722
105,249
In two to five years
365,461
323,680
482,183
428,929
-
-
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
274,909
259,954
Revaluations
249,634
249,634
524,543
509,588
The company has no deferred tax assets or liabilities.
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
21
Deferred taxation
(Continued)
- 28 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 December 2023
509,588
-
Charge to profit or loss
14,955
-
Liability at 30 November 2024
524,543
-
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
356,651
191,546
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
Ordinary A of £1 each
80
80
80
80
Ordinary B of £1 each
20
20
20
20
Ordinary C of £1 each
10
10
10
10
210
210
210
210
24
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
189,164
205,645
-
-
Between two and five years
76,885
177,623
-
-
266,049
383,268
-
-
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 29 -
25
Reserves
Profit and loss reserves - This reserve records retained earnings and accumulated losses.
Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income.
26
Directors' transactions
Dividends totalling £14,665 (2023 - £19,200) were paid in the year in respect of shares held by the company's directors.
27
Related party transactions
The company has taken advantage of FRS 102 paragraph 33.1A available to companies producing consolidated group financial statements and chosen not to disclose related party transactions within the group for 100% owned subsidiaries.
28
Controlling party
By virtue of his majority shareholding in the company, S J Fletcher is the controlling party of the company and group.
29
Cash generated from group operations
2024
2023
£
£
Profit after taxation
710,098
390,096
Adjustments for:
Taxation charged
287,653
102,155
Finance costs
205,621
214,057
Investment income
(326)
Loss on disposal of tangible fixed assets
53,383
957
Depreciation and impairment of tangible fixed assets
157,254
125,244
Movements in working capital:
Decrease/(increase) in debtors
15,481
(350,037)
Increase in creditors
261,972
185,142
Cash generated from operations
1,691,462
667,288
FLETCHERS ENGINEERING GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 30 -
30
Analysis of changes in net debt - group
2024
£
Opening net funds/(debt)
Cash and cash equivalents
861,342
Loans
(1,652,951)
Obligations under finance leases
(428,929)
(1,220,538)
Changes in net debt arising from:
Cash flows of the entity
972,962
Closing net funds/(debt) as analysed below
(247,576)
Closing net funds/(debt)
Cash and cash equivalents
1,646,883
Loans
(1,412,276)
Obligations under finance leases
(482,183)
(247,576)
2024-11-302023-12-01falsefalseCCH SoftwareCCH Accounts Production 2025.100No description of principal activityG J ColcloughS J 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