Year Ended
Registration number:
FGP Systems Limited
Contents
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Company Information |
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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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Statement of Income and Retained Earnings |
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Balance Sheet |
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Notes to the Financial Statements |
FGP Systems Limited
Company Information
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Directors |
Sir P Wall Mr A C A Reek W17S Directors Limited Mrs A Chorley Mrs K L Rollo Mr S G Cranfield |
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Company secretary |
Cossey Cosec Services Limited |
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Registered office |
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Auditors |
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FGP Systems Limited
Strategic Report for the Year Ended 31 March 2026
The directors present their strategic report for the year ended 31 March 2026.
Principal activity
The principal activity of the company is the manufacture and sale of engineered and manufactured products and higher level assemblies to the aerospace, defence and commercial sectors.
Fair review of the business
Restructuring at the end of 2025 reshaped the business for the future and the business is operating independently of other group companies for operational cashflow requirements. FGP Lufton, which was causing a cash drain on the business, was closed in October 2025 following the sale of assets and TUPE of the employees. In the short term this has reduced sales in FY26 but in the medium term the removal of this burden has freed up FGP Systems to focus on its strategic customers and future diversification and growth.
Following the negotiations with customers during the year and a restructuring of the intercompany debt position at the end of the year, the balance sheet is significantly stronger. Old debt with HMRC and OBS has been settled and the significant creditor stretch has been paid down.
The company's key financial and other performance indicators during the year were as follows:
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Financial KPIs |
Unit |
2026 |
2025 |
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Growth / (reduction) in turnover |
% |
(14) |
2 |
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Gross margin |
% |
38 |
40 |
Principal risks and uncertainties
Sourcing raw materials continues to be challenging with pressure on lead time and costs. Availability of treatment houses across the industry are constrained.
Approved by the
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FGP Systems Limited
Directors' Report for the Year Ended 31 March 2026
The directors present their report and the financial statements for the year ended 31 March 2026.
Directors of the company
The directors who held office during the year were as follows:
Going concern
The company’s business activities, together with factors likely to affect its future development, performance, and position, are set out in the Strategic Report.
Following negotiations with strategic customers and the sale of the FGP Lufton assets during the year, the HMRC time to pay agreement was fully settled along with the original loan of £3.3m from OBS Finance Ltd.
OBS Finance Limited was the vehicle used by Rcapital Investments LLP at the end of FY26 to provide a new loan of £1.3m to FGP Systems Ltd to settle in full the intercompany liability to Ramp Surface Coatings Limited. The balance of this liability, ultimately representing the loan with OBS, was settled with funds from the sale of FGP Lufton assets and customer support in September 2025.
There is common ownership and management between Rcapital Investments LLP and OBS Finance Limited. This new loan allowed for a restructuring of the group and settlement of intercompany balances.
Cash remains tight into FY27 and continues to be controlled through robust working capital management. Management reviews cash daily and has the support of their ultimate parent company, Rcapital Investments LLP. Focus on delivering predictable results in turn will continue to improve operational cashflows.
The directors’ review of the company’s forecasts and projections show that the company has sufficient headroom to support its operations. On this basis, the directors' have a reasonable expectation that the company has adequate resources in place to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. The directors have satisfied themselves that it is the intention of the Board of Directors of OBS Finance Limited to provide adequate financial support to FGP Systems Limited to enable the company to continue as a going concern for a period of at least 12 months from the approval of the financial statements. OBS Finance Limited acknowledge the need to provide additional funding is a possibility and have confirmed that they have the financial ability to provide this support if required.
FGP Systems Limited
Directors' Report for the Year Ended 31 March 2026
Financial instruments
Objectives and policies
The paragraphs below set out the key risks that have been identified, with the company’s approach to mitigating those risks.
Price risk, credit risk, liquidity risk and cash flow risk
Price risk
The company is exposed to commodity price risk which it partially offsets by either forward buying and/or bulk purchasing of raw materials in order to take advantage of market opportunities. In addition, the company is continually seeking alternative materials which meet the company's strict quality standards. There is also price risk in respect of the loan and other finance provided to the company by various funders. The directors regularly monitor the performance of the group in the light of its finance costs and periodically review the terms and conditions, including pricing of the finance provided.
Credit risk
The principal financial assets are trade debtors and plant and machinery assets. The customer relationships are very good and are proactively managed by the sales, commercial and account management teams. The plant and machinery are maintained and serviced proactively to a high level supported with total planned maintenance (TPM) programmes by our internal and external maintenance support teams. The company also uses the services of national and international credit ratings agencies to set the parameters to ensure certainty of our receivables.
Liquidity risk
The directors and senior management team have maintained the available credit lines if needed to support the business, which was beneficial during the last trading period, as the business had planned to support a relevant labour skill set and infrastructure that was more aligned to the recovery in customer demand from FY25 onwards.
Cash flow risk
The directors and senior management team closely monitor the company's cash position with monthly reviews and cash flow forecasts reported to the board in order to mitigate any working capital movements and minimise the risk to the business.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the
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FGP Systems Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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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 United Kingdom 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 company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
FGP Systems Limited
Independent Auditor's Report to the Members of FGP Systems Limited
Opinion
We have audited the financial statements of FGP Systems Limited (the 'company') for the year ended 31 March 2026, which comprise the Statement of Income and Retained Earnings, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 March 2026 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
FGP Systems Limited
Independent Auditor's Report to the Members of FGP Systems 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 year 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, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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:
FGP Systems Limited
Independent Auditor's Report to the Members of FGP Systems Limited
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the company. We gained an understanding of the company and the industry in which the company operates as part of this assessment to identify the key laws and regulations affecting the company. Key regulations we identified were AS9100 in relation to the aerospace industry, health and safety regulations, employment law and also those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and tax legislation.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
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Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements; |
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Reviewing legal and professional costs to identify any possible non-compliance; |
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Reviewing Board minutes; and |
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Reviewing latest AS9100 compliance and accreditation certificates. |
We assessed the susceptibility of the financial statements to material misstatement through management override or fraud and obtained an understanding of the controls in place to mitigate the risk of fraud. We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements. The key risk we identified was in relation to the existence and accuracy of revenue. Based upon our understanding we designed and conducted audit procedures including:
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Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness; |
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Testing a sample of revenue to delivery confirmation and customer cash collection; and |
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Reviewing estimates and judgements made in the accounts for any indication of bias, and challenged assumptions used by management in making the estimates. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.
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.
FGP Systems Limited
Independent Auditor's Report to the Members of FGP Systems 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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Towngate House
2 - 8 Parkstone Road
Dorset
BH15 2PW
FGP Systems Limited
Statement of Income and Retained Earnings
Year Ended 31 March 2026
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Note |
2026 |
2025 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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|
|
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Distribution costs |
( |
( |
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Administrative expenses |
( |
( |
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Other operating income |
|
|
|
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Operating profit/(loss) |
|
( |
|
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Interest payable and similar charges |
( |
( |
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Profit/(loss) before tax |
|
( |
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Taxation |
( |
( |
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Profit/(loss) for the financial year |
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( |
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Retained earnings brought forward |
(2,763,919) |
(1,530,541) |
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Retained earnings carried forward |
357,800 |
(2,763,919) |
FGP Systems Limited
Balance Sheet
31 March 2026
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Note |
2026 |
2025 |
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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 assets/(liabilities) |
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( |
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Total assets less current liabilities |
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( |
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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/(liabilities) |
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( |
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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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( |
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Shareholders' funds/(deficit) |
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( |
Approved and authorised by the
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Company Registration Number: 09794421
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
The principal place of business is:
20 - 22 Cumberland Drive
Granby Industrial Estate
Weymouth
DT4 9TB
England
These financial statements were authorised for issue by the
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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'.
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.
Group accounts not prepared
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
Going concern
The company’s business activities, together with factors likely to affect its future development, performance, and position, are set out in the Strategic Report.
Following negotiations with strategic customers and the sale of the FGP Lufton assets during the year, the HMRC time to pay agreement was fully settled along with the original loan of £3.3m from OBS Finance Ltd.
OBS Finance Limited was the vehicle used by Rcapital Investments LLP at the end of FY26 to provide a new loan of £1.3m to FGP Systems Ltd to settle in full the intercompany liability to Ramp Surface Coatings Limited. The balance of this liability, ultimately representing the loan with OBS, was settled with funds from the sale of FGP Lufton assets and customer support in September 2025.
There is common ownership and management between Rcapital Investments LLP and OBS Finance Limited. This new loan allowed for a restructuring of the group and settlement of intercompany balances.
Cash remains tight into FY27 and continues to be controlled through robust working capital management. Management reviews cash daily and has the support of their ultimate parent company, Rcapital Investments LLP. Focus on delivering predictable results in turn will continue to improve operational cashflows.
The directors’ review of the company’s forecasts and projections show that the company has sufficient headroom to support its operations. On this basis, the directors' have a reasonable expectation that the company has adequate resources in place to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. The directors have satisfied themselves that it is the intention of the Board of Directors of OBS Finance Limited to provide adequate financial support to FGP Systems Limited to enable the company to continue as a going concern for a period of at least 12 months from the approval of the financial statements. OBS Finance Limited acknowledge the need to provide additional funding is a possibility and have confirmed that they have the financial ability to provide this support if required.
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
Key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported. These estimates and judgments are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
A) Key sources of estimation uncertainty
Accounting estimates and assumption are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
i) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation, and the physical condition of the assets. See notes to the accounts for the carrying amount of the property, plant, and equipment and for the useful economic lives for each class of assets.
ii) Stock provision
The company utilises raw materials in its provision of engineering precision services and is subject to varying raw material prices. As a result, it is necessary to consider the recoverability of the cost of the stock and the associated provisioning required. When calculating the inventory provision, management consider the nature and condition of the inventory, as well as applying assumptions around anticipated salability of finished goods and future use of raw materials.
iii) Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of the debtors and historical experience.
iv) Impairment of intangible assets and goodwill
The company considers whether intangible assets and/or goodwill are impaired. Where an indication of impairment is identified the estimation of the recoverable value requires estimation of the recoverable value of the cash generating units (CGUs). This requires estimation of the future cash flows from the CGUs and also selection of appropriate discount rates in order to calculate the net present value of those cash flows.
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
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, returns, rebates and discounts and after eliminating sales within the company.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Government grants
Grants are recognised in the financial statements when there is reasonable assurance that the entity will comply with the conditions attached to them and the grants will be received.
Grants become receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable.
Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
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 company operates and generates taxable income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
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Plant and machinery |
3 -15 yrs straight line |
|
Fixtures and fittings |
25% straight line |
|
Motor vehicles |
25% straight line |
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Leasehold improvements (plant and machinery) |
In line with the terms of the lease |
|
Equipment |
25% straight line |
Goodwill
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:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
10% straight line |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
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 stocks 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.
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.
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
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 company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
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Turnover |
The analysis of the company's Turnover for the year by market is as follows:
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2026 |
2025 |
|
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UK |
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|
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Rest of world |
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|
|
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Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2026 |
2025 |
|
|
R&D expenditure credit (RDEC) |
371,022 |
270,547 |
|
Customer support |
2,051,517 |
- |
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Miscellaneous other income |
9,945 |
4,730 |
|
|
|
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
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Exceptional other operating income and admin costs |
Included on the face of the income statement within other operating income is customer support income of £2,051,517 (2025 - £nil). This relates to funding received following negotiations with strategic customers facilitate the ongoing capacity of the company to manufacture and deliver goods.
Included within administrative expenses are bad debt expense reversals of £1,219,137 (2025 - £nil). This relates to amounts recovered by the company from FGP Lufton after the sale of its assets, which the company had previously provided against in FY24.
Also included within administrative expenses is an inter-company loan waiver of £1,837,626 (2025 - £nil). This relates to the settlement agreement reached with Ramp Surface Coatings Limited and represents the difference between the creditor at the date of the agreement and the amounts paid to to settle the amount.
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Operating profit/(loss) |
Arrived at after charging/(crediting)
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2026 |
2025 |
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Depreciation expense |
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Amortisation expense |
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Foreign exchange (gains)/losses |
( |
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Operating lease expense - plant and machinery |
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Loss on disposal of property, plant and equipment |
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Interest payable and similar expenses |
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2026 |
2025 |
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Interest on obligations under finance leases and hire purchase contracts |
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|
|
Interest expense on other finance liabilities |
|
|
|
|
|
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2026 |
2025 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2026 |
2025 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2026 |
2025 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
Sums paid to third parties for directors' services |
|
|
|
443,699 |
456,092 |
During the year the number of directors who were receiving benefits was as follows:
|
2026 |
2025 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2026 |
2025 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
|
Auditor's remuneration |
|
2026 |
2025 |
|
|
Audit of the financial statements |
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2026 |
2025 |
|
|
Current taxation |
||
|
UK corporation tax |
|
- |
|
UK corporation tax adjustment to prior periods |
- |
|
|
70,494 |
67,637 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2025 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2026 |
2025 |
|
|
Profit/(loss) before tax |
|
( |
|
Corporation tax at standard rate |
|
( |
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Effect of revenues exempt from taxation |
( |
- |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
( |
|
|
Decrease from tax losses for which no deferred tax asset was recognised |
- |
( |
|
Tax increase arising from group relief |
- |
|
|
Deferred tax expense from unrecognised tax loss or credit |
|
- |
|
Tax increase from effect of adjustment in research and development tax credit |
|
|
|
Total tax charge |
|
|
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
|
Intangible assets |
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 April 2025 |
|
|
|
At 31 March 2026 |
|
|
|
Amortisation |
||
|
At 1 April 2025 |
|
|
|
Amortisation charge |
|
|
|
At 31 March 2026 |
|
|
|
Carrying amount |
||
|
At 31 March 2026 |
- |
- |
|
At 31 March 2025 |
|
|
|
Tangible assets |
|
Furniture, fittings and equipment |
Motor vehicles |
Plant and machinery |
Total |
|
|
Cost or valuation |
||||
|
At 1 April 2025 |
|
|
|
|
|
Additions |
- |
- |
|
|
|
Disposals |
( |
- |
( |
( |
|
At 31 March 2026 |
|
|
|
|
|
Depreciation |
||||
|
At 1 April 2025 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
( |
- |
( |
( |
|
At 31 March 2026 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 March 2026 |
|
|
|
|
|
At 31 March 2025 |
|
|
|
|
The carrying amount of tangible assets pledged as security for liabilities amounted to £2,424,864 (2025 - £3,371,427).
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
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:
|
2026 |
2025 |
|
|
Plant and machinery |
185,560 |
766,321 |
|
Investments |
|
2026 |
2025 |
|
|
Investments in subsidiaries |
- |
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 April 2025 |
|
|
Revaluation |
( |
|
At 31 March 2026 |
- |
|
Provision |
|
|
Carrying amount |
|
|
At 31 March 2026 |
- |
|
At 31 March 2025 |
|
Details of undertakings
Details of the investments 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 |
|
|
2026 |
2025 |
|||
|
Subsidiary undertakings |
||||
|
|
4th Floor 24 Old Bond Street, Mayfair, London, W1S 4AW United Kingdom |
|
|
|
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
Subsidiary undertakings
FGP Lufton Limited
FGP Lufton Limited entered administration during the year ended 31 March 2026. As a result, the company no longer exercises control over FGP Lufton Limited at the reporting date and the investment has been derecognised.
The principal activity of FGP Lufton Limited was the manufacture and sale of engineering parts for the aerospace industry.
|
Stocks |
|
2026 |
2025 |
|
|
Raw materials and consumables |
|
|
|
Work in progress |
|
|
|
Finished goods and goods for resale |
|
|
|
|
|
The carrying amount of stocks pledged as security for liabilities amounted to £
|
Debtors |
|
2026 |
2025 |
|
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Accrued income |
|
- |
|
Corporation tax asset |
|
|
|
|
|
The carrying amount of trade debtors pledged as security for liabilities amounted to £2,140,402 (2025 - £2,389,613).
|
Cash and cash equivalents |
|
2026 |
2025 |
|
|
Cash at bank |
|
|
|
Short-term deposits |
|
|
|
|
|
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
|
Creditors |
|
Note |
2026 |
2025 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Amounts due to group undertakings |
- |
|
|
|
Social security and other taxes |
|
|
|
|
Other creditors |
|
|
|
|
Accruals |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
|
|
Other creditors |
|
|
|
|
|
|
|
Loans and borrowings |
Non-current loans and borrowings
|
2026 |
2025 |
|
|
Hire purchase contracts |
|
|
|
Other borrowings |
|
- |
|
|
|
|
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
Current loans and borrowings
|
2026 |
2025 |
|
|
Hire purchase contracts |
|
|
|
Other borrowings |
|
- |
|
|
|
|
Hire purchase contracts are secured over the assets to which they relate.
Other borrowings of £1,003,884 (2025 - £nil) due within one year relates to an invoice discounting facility. Amounts are secured over the trade debtors of the company and interest is charged at 2.00% over the Bank of England Base Rate.
Other borrowings of £1,327,247 (2025 - £nil) due after one year relates to a loan facility from OBS Finance Limited. Interest accrues at 15% per annum. The capital together with all accrued interest is due for repayment in February 2028.
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2026 |
2025 |
|
|
Not later than one year |
- |
|
|
Later than one year and not later than five years |
- |
|
|
- |
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Provisions for liabilities |
|
Deferred tax |
Other provisions |
Total |
|
|
At 1 April 2025 |
|
|
|
|
Increase (decrease) in existing provisions |
|
|
|
|
At 31 March 2026 |
|
|
|
|
|
|||
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2026 |
2025 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
1 |
|
1 |
|
Commitments |
FGP Systems Limited was party to a group-wide security arrangement in connection with a £5,000,000 secured loan facility provided by OBS Finance Limited to FGP Group Holdings Ltd and its subsidiaries. Under the terms of a debenture dated 29 January 2024, FGP Systems Limited, together with Ramp Surface Coatings Limited, FGP Lufton Limited, and Heartland Engineering Limited, has granted security over its assets and is jointly and severally liable for the obligations of the group under the facility.
As at the prior balance sheet date, the total drawn balance under the facility was approximately £4,500,000. Accordingly, FGP Systems Limited was exposed to the liabilities of the other group companies under the terms of the joint and several guarantee.
During the year the £5m facility previously provided by OBS Finance Limited was fully repaid. On 9 February 2026, FGP Systems Limited became a borrower under the OBS Facility Agreement and received a further advance of £1.3m.
|
Related party transactions |
Summary of transactions with other related parties
During the year the company paid £24,000 (2025: £26,200) for services rendered by companies with common directorships.
FGP Systems Limited
Notes to the Financial Statements
Year Ended 31 March 2026
|
Parent and ultimate parent undertaking |
At the reporting date of 31 March 2026, the company's immediate parent was RSC Group Holdings Limited (formerly FGP Group Holdings Limited), incorporated in England and Wales.
The company's ultimate parent undertaking at that date was Rcapital Investments LLP, incorporated in England and Wales. The consolidated financial statements of RSC Group Holdings Limited are the smallest and largest group financial statements in which the results of the company are consolidated. Copies of those financial statements are available from 4th Floor 24 Old Bond Street, London, W1S 4AW.
On 1 April 2026, following the completion of a group reorganisation, the company's immediate parent undertaking changed to FGPS Holdings Limited.
As a result of this transaction, the company's ultimate parent undertaking has not changed.
The transaction occurred after the reporting date and therefore did not affect the company's financial position as at 31 March 2026. The change has been disclosed as a non-adjusting event after the end of the reporting period.