Caseware UK (AP4) 2021.0.152 2021.0.152 2022-01-312022-01-312021-02-01falsefalsefalse29No description of principal activity29 04369121 2021-02-01 2022-01-31 04369121 2020-02-01 2021-01-31 04369121 2022-01-31 04369121 2021-01-31 04369121 2020-02-01 04369121 1 2021-02-01 2022-01-31 04369121 1 2020-02-01 2021-01-31 04369121 4 2021-02-01 2022-01-31 04369121 4 2020-02-01 2021-01-31 04369121 5 2021-02-01 2022-01-31 04369121 5 2020-02-01 2021-01-31 04369121 6 2021-02-01 2022-01-31 04369121 6 2020-02-01 2021-01-31 04369121 7 2021-02-01 2022-01-31 04369121 7 2020-02-01 2021-01-31 04369121 d:CompanySecretary1 2021-02-01 2022-01-31 04369121 d:Director1 2021-02-01 2022-01-31 04369121 d:Director2 2021-02-01 2022-01-31 04369121 d:Director3 2021-02-01 2022-01-31 04369121 d:RegisteredOffice 2021-02-01 2022-01-31 04369121 e:Buildings e:ShortLeaseholdAssets 2021-02-01 2022-01-31 04369121 e:Buildings e:ShortLeaseholdAssets 2022-01-31 04369121 e:Buildings e:ShortLeaseholdAssets 2021-01-31 04369121 e:PlantMachinery 2021-02-01 2022-01-31 04369121 e:PlantMachinery 2022-01-31 04369121 e:PlantMachinery 2021-01-31 04369121 e:PlantMachinery e:OwnedOrFreeholdAssets 2021-02-01 2022-01-31 04369121 e:MotorVehicles 2021-02-01 2022-01-31 04369121 e:MotorVehicles 2022-01-31 04369121 e:MotorVehicles 2021-01-31 04369121 e:MotorVehicles e:OwnedOrFreeholdAssets 2021-02-01 2022-01-31 04369121 e:FurnitureFittings 2021-02-01 2022-01-31 04369121 e:FurnitureFittings 2022-01-31 04369121 e:FurnitureFittings 2021-01-31 04369121 e:FurnitureFittings e:OwnedOrFreeholdAssets 2021-02-01 2022-01-31 04369121 e:OfficeEquipment 2021-02-01 2022-01-31 04369121 e:OfficeEquipment 2022-01-31 04369121 e:OfficeEquipment 2021-01-31 04369121 e:OfficeEquipment e:OwnedOrFreeholdAssets 2021-02-01 2022-01-31 04369121 e:OwnedOrFreeholdAssets 2021-02-01 2022-01-31 04369121 e:CurrentFinancialInstruments 2022-01-31 04369121 e:CurrentFinancialInstruments 2021-01-31 04369121 e:Non-currentFinancialInstruments 2022-01-31 04369121 e:Non-currentFinancialInstruments 2021-01-31 04369121 e:CurrentFinancialInstruments e:WithinOneYear 2022-01-31 04369121 e:CurrentFinancialInstruments e:WithinOneYear 2021-01-31 04369121 e:Non-currentFinancialInstruments e:AfterOneYear 2022-01-31 04369121 e:Non-currentFinancialInstruments e:AfterOneYear 2021-01-31 04369121 e:ReportableOperatingSegment1 2021-02-01 2022-01-31 04369121 e:ReportableOperatingSegment1 2020-02-01 2021-01-31 04369121 e:ReportableOperatingSegment2 2021-02-01 2022-01-31 04369121 e:ReportableOperatingSegment2 2020-02-01 2021-01-31 04369121 f:UnitedKingdom 2021-02-01 2022-01-31 04369121 f:UnitedKingdom 2020-02-01 2021-01-31 04369121 e:UKTax 2021-02-01 2022-01-31 04369121 e:UKTax 2020-02-01 2021-01-31 04369121 e:ShareCapital 2022-01-31 04369121 e:ShareCapital 2021-01-31 04369121 e:RetainedEarningsAccumulatedLosses 2021-02-01 2022-01-31 04369121 e:RetainedEarningsAccumulatedLosses 2022-01-31 04369121 e:RetainedEarningsAccumulatedLosses 2020-02-01 2021-01-31 04369121 e:RetainedEarningsAccumulatedLosses 2021-01-31 04369121 e:RetainedEarningsAccumulatedLosses 2020-02-01 04369121 d:OrdinaryShareClass1 2021-02-01 2022-01-31 04369121 d:OrdinaryShareClass1 2022-01-31 04369121 d:OrdinaryShareClass1 2021-01-31 04369121 d:FRS102 2021-02-01 2022-01-31 04369121 d:Audited 2021-02-01 2022-01-31 04369121 d:FullAccounts 2021-02-01 2022-01-31 04369121 d:PrivateLimitedCompanyLtd 2021-02-01 2022-01-31 04369121 e:WithinOneYear 2022-01-31 04369121 e:WithinOneYear 2021-01-31 04369121 e:BetweenOneFiveYears 2022-01-31 04369121 e:BetweenOneFiveYears 2021-01-31 04369121 e:MoreThanFiveYears 2022-01-31 04369121 e:MoreThanFiveYears 2021-01-31 04369121 e:AcceleratedTaxDepreciationDeferredTax 2022-01-31 04369121 e:AcceleratedTaxDepreciationDeferredTax 2021-01-31 04369121 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2022-01-31 04369121 e:MotorVehicles e:LeasedAssetsHeldAsLessee 2021-01-31 04369121 e:LeasedAssetsHeldAsLessee 2022-01-31 04369121 e:LeasedAssetsHeldAsLessee 2021-01-31 xbrli:shares iso4217:GBP xbrli:pure
Company registration number: 04369121







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 JANUARY 2022


RADIOTRADE LIMITED






































img66d8.png                        

 


RADIOTRADE LIMITED
 


 
COMPANY INFORMATION


Directors
R D Searle 
D J Keevil 
P R Bearryman 




Company secretary
N McDonald



Registered number
04369121



Registered office
Unit 5 The Ringway Centre
Edison Road

Basingstoke

Hampshire

RG21 6YH




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

3000a Parkway

Whiteley

Hampshire

PO15 7FX





 


RADIOTRADE LIMITED
 



CONTENTS



Page
Strategic Report
1
Directors' Report
2 - 3
Independent Auditors' Report
4 - 7
Statement of Income and Retained Earnings
8
Statement of Financial Position
9
Statement of Cash Flows
10 - 11
Analysis of Net Debt
12
Notes to the Financial Statements
13 - 24


 


RADIOTRADE LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2022

The Directors present the strategic report of Radiotrade Limited (“Company”) for the year-end 31 January 2022.  

Business review
 
The principle activity of RadioTrade is the supply and distribution of communications products to a UK dealer channel. The company formed in late 2011 and has seen good growth and an expanding portfolio of products and services. 
There is a continuing strategy to grow the product portfolio and continue to support our longstanding client and supplier base. We value our Partner and supplier relationships greatly and have invested heavily to ensure we have the right people and systems in place to allow sustained levels of support while we grow. IT systems, communications and workflows have been improved to cater for increased revenues and to maintain efficiency.

Financial key performance indicators
 
ole76a2.png

The year Feb 21 to Jan 22 provided an increase in revenue of 23% over the previous year and also produced a much better performance in Gross and Net Profit. Gross profit increased by 34% and pre-tax profit increased by 51%. Stock levels have decreased by 42% to £1.4m which was due to supplier deliveries impacted by component shortages. This has led to a very large order book at the end of 2022 trading year that will carry into the next accounting period. 
Cash and net assets are deemed reasonable for the trading year.

Principal Risks and Uncertainties

The risk associated with Covid and supplier component shortages is a concern but our strong trading through 2021 has shown the resilience of the business in this difficult period. There remains good equity in the business and we feel confident the business is sustainable in the current climate. 


This report was approved by the board and signed on its behalf.



R D Searle
Director

Date: 5 September 2022

Page 1

 


RADIOTRADE LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2022

The directors present their report and the financial statements for the year ended 31 January 2022.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £983,945 (2021 - £656,662).

Particulars of recommended dividends are detailed in the notes to the financial statements.

Directors

The directors who served during the year were:

R D Searle 
D J Keevil 
P R Bearryman 

Future developments

Please refer to the strategic report.

Matters covered in the Strategic Report

The company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the company's Strategic Report the Company's Strategic Report Information Required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.
The directors are aware of the matter set out in section 172(1)(a) to (f) (duty to promote the success of the company) when performing their duties and do so appropriately.

Page 2

 


RADIOTRADE LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





R D Searle
Director

Date: 5 September 2022

Page 3

 


RADIOTRADE LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RADIOTRADE LIMITED

Opinion


We have audited the financial statements of Radiotrade Limited (the 'Company') for the year ended 31 January 2022, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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 January 2022 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 Auditors' 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Page 4

 


RADIOTRADE LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RADIOTRADE LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and 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.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 2, 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.


Page 5

 


RADIOTRADE LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RADIOTRADE LIMITED (CONTINUED)

Auditors' 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 Auditors' 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:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, and general regulations such as health and safety. There are no industry specific laws and regulations which would be deemed to have a significant impact on the financial statements. We assessed the extent of compliance with the appropriate laws and regulations as part of our procedures on the related financial statement items.
We understood how the Company is complying with the legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures and the company secretary. 
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any issues in this area. 
We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
-  Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
-  Challenging assumptions and judgments made by management in its significant accounting estimates; and
-  Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
-  Posting of unusual journals and complex transactions. 
-  Misappropriation of funds through fraudulent purchase ledger and payroll activity
-  Manipulation of amounts subject to significant judgment or estimate.
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 or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 6

 


RADIOTRADE LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RADIOTRADE LIMITED (CONTINUED)

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 2006Our 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 Auditors' 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.





James Hadfield FCA (Senior Statutory Auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
3000a Parkway
Whiteley
Hampshire
PO15 7FX

5 September 2022
Page 7

 


RADIOTRADE LIMITED
 


 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JANUARY 2022

2022
2021
Note
£
£

  

Turnover
 3 
17,585,663
14,326,149

Cost of sales
  
(15,125,368)
(12,495,020)

Gross profit
  
2,460,295
1,831,129

Administrative expenses
  
(1,220,124)
(1,114,485)

Other operating income
 4 
-
104,230

Operating profit
  
1,240,171
820,874

Interest receivable and similar income
 8 
100
80

Interest payable and similar expenses
 9 
(8,545)
(4,036)

Profit before tax
  
1,231,726
816,918

Tax on profit
 10 
(247,781)
(160,256)

Profit after tax
  
983,945
656,662

  

  

Retained earnings at the beginning of the year
  
4,272,560
3,775,898

  
4,272,560
3,775,898

Profit for the year
  
983,945
656,662

Dividends declared and paid
  
(250,000)
(160,000)

Retained earnings at the end of the year
  
5,006,505
4,272,560
The notes on pages 13 to 24 form part of these financial statements.

Page 8

 


RADIOTRADE LIMITED
REGISTERED NUMBER:04369121



STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 12 
462,036
266,962

  
462,036
266,962

Current assets
  

Stocks
 13 
1,446,051
2,373,801

Debtors: amounts falling due within one year
 14 
2,339,599
2,754,846

Cash at bank and in hand
  
1,942,597
340,375

  
5,728,247
5,469,022

Creditors: amounts falling due within one year
 15 
(1,044,998)
(1,414,833)

Net current assets
  
 
 
4,683,249
 
 
4,054,189

Total assets less current liabilities
  
5,145,285
4,321,151

Creditors: amounts falling due after more than one year
  
(23,647)
-

Provisions for liabilities
  

Deferred tax
 17 
(115,033)
(48,491)

  
 
 
(115,033)
 
 
(48,491)

Net assets
  
5,006,605
4,272,660


Capital and reserves
  

Called up share capital 
 18 
100
100

Profit and loss account
 19 
5,006,505
4,272,560

  
5,006,605
4,272,660


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




R D Searle
Director

Date: 5 September 2022

The notes on pages 13 to 24 form part of these financial statements.

Page 9

 


RADIOTRADE LIMITED
 



STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2022

2022
2021
£
£

Cash flows from operating activities

Profit for the financial year
983,945
656,662

Adjustments for:

Depreciation of tangible assets
95,139
94,757

Profit on disposal of tangible assets
(15,548)
(14,948)

Government grants
-
(104,230)

Interest paid
8,545
4,036

Interest received
(100)
(80)

Taxation charge
247,781
160,256

Decrease in stocks
927,750
563,651

Decrease/(increase) in debtors
415,247
(214,001)

(Decrease)/increase in creditors
(396,014)
309,586

Corporation tax (paid)
(158,612)
(201,465)

Net cash generated from operating activities

2,108,133
1,254,224


Cash flows from investing activities

Purchase of tangible fixed assets
(331,059)
(75,671)

Sale of tangible fixed assets
56,671
116,076

Government grants received
-
104,230

Interest received
100
80

Net cash from investing activities

(274,288)
144,715
Page 10

 


RADIOTRADE LIMITED
 



STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2022


2022
2021

£
£



Cash flows from financing activities

Repayment of/new finance leases
26,682
(12,213)

Movements on invoice discounting
-
(944,532)

Dividends paid
(250,000)
(160,000)

Interest paid
(8,545)
(4,036)

Net cash used in financing activities
(231,863)
(1,120,781)

Net increase in cash and cash equivalents
1,601,982
278,158

Cash and cash equivalents at beginning of year
340,375
62,217

Cash and cash equivalents at the end of year
1,942,357
340,375


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,942,597
340,375

Bank overdrafts
(240)
-

1,942,357
340,375


The notes on pages 13 to 24 form part of these financial statements.

Page 11

 


RADIOTRADE LIMITED
 



ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JANUARY 2022




At 1 February 2021
Cash flows
At 31 January 2022
£

£

£

Cash at bank and in hand

340,375

1,404,448

1,744,823

Bank overdrafts

-

(4,104)

(4,104)

Finance leases

-

(26,682)

(26,682)


340,375
1,373,662
1,714,037

The notes on pages 13 to 24 form part of these financial statements.

Page 12

 


RADIOTRADE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022

1.


General information

Radiotrade Limited is a private company limited by shares incorporated in England and Wales. The address of the registered office is disclosed on the company information page. The registered address is also the principal place of business.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.

The following principal accounting policies have been applied:

 
2.2

Going concern

At the time of approving the financial statements, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. In making their assessment the Directors have considered the company's current financial position and future cash flow. 
Therefore, the Directors continue to adopt the going concern basis of accounting in prepering these annual financial statements.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'admin expenses'.

Page 13

 


RADIOTRADE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 14

 


RADIOTRADE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022

2.Accounting policies (continued)

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 15

 


RADIOTRADE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance and straight line basis.

Depreciation is provided on the following basis:

Short-term leasehold property
-
10 years straight line
Plant and machinery
-
25 - 33% reducing balance
Motor vehicles
-
25% reducing balance
Fixtures and fittings
-
25% reducing balance
Office equipment
-
33% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in first out, actual and average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is 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.

 
2.13

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

 
2.14

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 16

 


RADIOTRADE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022

3.


Turnover

An analysis of turnover by class of business is as follows:


2022
2021
£
£

Sales - Goods
16,244,688
13,917,234

Sales - Services
1,340,975
408,915

17,585,663
14,326,149


Analysis of turnover by country of destination:

2022
2021
£
£

United Kingdom
17,585,663
14,326,149

17,585,663
14,326,149



4.


Other operating income

2022
2021
£
£

Government grants receivable
-
104,230

-
104,230



5.


Auditors' remuneration

Fees payable to the Company's auditor for the audit of the Company's annual financial statements totalled £10,500 (2021 - £10,200).

Page 17

 


RADIOTRADE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022

6.


Employees

Staff costs, including directors' remuneration, were as follows:


2022
2021
£
£

Wages and salaries
1,082,865
977,263

Social security costs
111,825
94,042

Cost of defined contribution scheme
38,669
32,455

1,233,359
1,103,760


The average monthly number of employees, including the directors, during the year was as follows:


        2022
        2021
            No.
            No.







Director
3
3



Administration
18
18



Sales
4
5



Service
4
3

29
29


7.


Directors' remuneration

2022
2021
£
£

Directors' emoluments
346,001
278,720

Company contributions to defined contribution pension schemes
13,837
9,028

359,838
287,748


During the year retirement benefits were accruing to 3 directors (2021 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £125,474 (2021 - £124,826).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £3,607 (2021 - £3,607).

Page 18

 


RADIOTRADE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022

8.


Interest receivable

2022
2021
£
£


Other interest receivable
100
80

100
80


9.


Interest payable and similar expenses

2022
2021
£
£


Other interest payable
8,545
4,036

8,545
4,036


10.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
181,239
158,528


181,239
158,528


Total current tax
181,239
158,528

Deferred tax


Origination and reversal of timing differences
51,229
1,728

Changes to tax rates
15,313
-

Total deferred tax
66,542
1,728


Taxation on profit on ordinary activities
247,781
160,256
Page 19

 


RADIOTRADE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2021 - higher than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit on ordinary activities before tax
1,231,726
816,918


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
234,028
155,214

Effects of:


Expenses not deductible for tax purposes
296
(337)

Capital allowances for year in excess of depreciation
-
352

Short-term timing difference leading to an increase (decrease) in taxation
-
1,728

Other timing differences leading to an increase (decrease) in taxation
(14,151)
-

Book profit on chargeable assets
-
2,840

Other differences leading to an increase (decrease) in the tax charge
-
459

Changes in taxation rates
27,608
-

Total tax charge for the year
247,781
160,256


11.


Dividends

2022
2021
£
£


Dividends paid
250,000
160,000

250,000
160,000

Page 20


RADIOTRADE LIMITED
  
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2022



12.


Tangible fixed assets






Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 February 2021
8,386
358,097
29,839
140,830
95,606
632,758


Additions
-
280,859
45,475
498
4,227
331,059


Disposals
-
(78,461)
-
-
-
(78,461)



At 31 January 2022

8,386
560,495
75,314
141,328
99,833
885,356



Depreciation


At 1 February 2021
2,586
202,323
18,269
79,207
63,411
365,796


Charge for the year
838
63,319
7,127
13,717
9,861
94,862


Disposals
-
(37,338)
-
-
-
(37,338)



At 31 January 2022

3,424
228,304
25,396
92,924
73,272
423,320



Net book value



At 31 January 2022
4,962
332,191
49,918
48,404
26,561
462,036



At 31 January 2021
5,800
155,774
11,570
61,623
32,195
266,962



:

Page 21

 


RADIOTRADE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022

           12.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2022
2021
£
£



Motor vehicles
40,931
-

40,931
-


13.


Stocks

2022
2021
£
£

Raw materials and consumables
1,446,051
2,373,801

1,446,051
2,373,801



14.


Debtors

2022
2021
£
£


Trade debtors
1,635,327
2,154,868

Prepayments and accrued income
704,272
599,978

2,339,599
2,754,846


Page 22

 


RADIOTRADE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022

15.


Creditors: Amounts falling due within one year

2022
2021
£
£

Bank overdrafts
240
-

Trade creditors
248,686
186,893

Corporation tax
181,239
158,335

Other taxation and social security
269,666
1,031,162

Obligations under finance lease and hire purchase contracts
3,035
-

Other creditors
4,104
-

Accruals and deferred income
338,028
38,443

1,044,998
1,414,833


Securities
The bank overdraft is secured by a debenture charge over all the assets of the company.


16.


Creditors: Amounts falling due after more than one year

2022
2021
£
£

Net obligations under finance leases and hire purchase contracts
23,647
-

23,647
-



17.


Deferred taxation




2022
2021


£

£






At beginning of year
48,491
46,763


Charged to profit or loss
66,542
1,728



At end of year
115,033
48,491

The provision for deferred taxation is made up as follows:

2022
2021
£
£


Accelerated capital allowances
115,033
48,491

115,033
48,491

Page 23

 


RADIOTRADE LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2022

18.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



100 (2021 - 100) Ordinary shares of £1.00 each
100
100

Each ordinary share has equal voting and dividend rights.



19.


Reserves

Profit and loss account

The reserve records retained earnings and accumulated losses.


20.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £38,669 (2021 - £32,455). Contributions totalling £14,266 (2021 - £4,030) were payable to the fund at the reporting date and are included in creditors.


21.


Commitments under operating leases

At 31 January 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£
£


Not later than 1 year
154,319
147,546

Later than 1 year and not later than 5 years
433,445
459,051

Later than 5 years
96,250
201,250

684,014
807,847

During the year, the company paid £159,552 (2021 - £166,205) in respect of operating lease commitments.


22.


Controlling party

The ultimate controlling party is the director, R D Searle, by virtue of his shareholding.

 
Page 24