Company registration number 00424854 (England and Wales)
EDE & RAVENSCROFT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
EDE & RAVENSCROFT LIMITED
COMPANY INFORMATION
Directors
E Middleton
J S Middleton
M W Middleton
A T Halls
Company number
00424854
Registered office
93 Chancery Lane
London
WC2A 1DU
Auditor
Ashgates Corporate Services Limited
5 Prospect Place
Millennium Way
Pride Park
Derby
DE24 8HG
EDE & RAVENSCROFT LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 46
EDE & RAVENSCROFT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 1 -

The directors present the strategic report for the year ended 30 September 2022.

Principal activities

The principal activity of the company and group continued to be that of (i) the manufacture, sale and hire of garments (ii) the provision of photographic services and (iii) property investment and development.

Fair review of the business

The group prides itself on its heritage and specialist skills in robe making, bespoke tailoring and as wigmakers. Our business units face pressure from increasing raw material prices and inflationary pressures on costs of all types.

Our Graduation Services business units saw a bounce back from the previous cancelled ceremonies resulting in significantly increased turnover which brought with it challenges of maintaining our service standards for the temporary increased activity levels. The following accounting period is expected to revert back to normalised trading levels.

Competition within the market remains strong as we return to a more normalised market. The business remains focused on providing high service levels to our clients and customers using technology and carefully selected modern practice combined with specialised skills.

The Group disposed of two of its businesses in the Ireland, Lafayette Graduation Services Limited & Lafayette Photography (NI) Ltd details are shown in note 31. The Group acquired a tangential graduation services business, Wm Northam & Co Limited and its results from acquisition are included in the results for the year.

The results of the group for the year ended 30 September 2022 are set out on pages 10 – 15. The impact of the bounce back from the pandemic, most notably in the Graduation Services business units and the impact of acquisition of the business referred to above has resulted in a return to profitability for the year.

The retained net loss of the group of £942,773 (2021: loss £2,918,694) is to be transferred to revenue reserves. At the end of the year, the shareholder funds totalled £25,048,344 (2021: £26,181,031) for the group and £23,554,349 (2021: £23,903,264) for the company. Dividends on the ordinary shares of £3,751,200 (2021: £151,200) were paid by the holding company during the year. The directors do not recommend a payment of a final ordinary dividend.

The directors continually monitor the operating and market risks faced by the group and manage these accordingly. These risks include (i) competitive pressures where lower quality, lower priced alternatives may be available; and (ii) potential shifts in fashion, particularly in relation to specialist products and services provided by the group.

The group's key financial and other performance indicators during the year were as follows:

Unit
2022
2021
Turnover
£
53,143,997
12,760,233
Gross profit margin
%
31
39
Other key performance indicators used by the group are the size and composition of its customer base and the rate of staff turnover. Satisfactory results were achieved for these indicators during the year under review, accepting the effect of the pandemic has made monitoring and assessment of these more difficult.
The Directors have considered the position at the year end and future trading prospects of the Group and have concluded that the Group has sufficient resources and funding facilities in place to trade forward and the financial statements are drawn up on that basis as set out in note 1 of these financial statements.
EDE & RAVENSCROFT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 2 -
Principal risks and uncertainties

Since March 2021 the business has seen a recovery from the impact of the Covid-19 pandemic that has significantly impacted trading of the Group and its subsidiaries and with the risks from erratic post pandemic activities with significant peak month activities. Whilst those trading issues have begun to reduce, the current uncertainty about inflationary pressure on all costs within the group mean that there is a continuing risk.

At the date of signing of this report the Directors remain optimistic that trade has returned to a more normalised level after this trading period. We expect the current year will continue to be impacted by inflationary pressures on all parts of the business and will result in higher costs throughout all the Groups operations. These cost pressures will impact adversely on the group results.

The business units have faced and are expected to face competitive tension which will restrict growth and development potential and the ability to pass on cost increases caused by inflation.

Section 172(1) statement

The Directors have considered the requirements of S172(1) (a-f) of the Companies Act 2006 and are committed to acting and promoting positively the interests of its Employees and Customers and Suppliers together with considering the impact of our operations on our communities and the environment.

The following summarise how the Directors’ have fulfilled their duties:

 

Likely consequences of long term decisions

The Board meet regularly and are responsible for the strategy and long-term vision of the group. The Board understand the business and the ever-changing environment in which we operate.

 

The interest of company employees

The Board recognise that the Group’s employees and workers are fundamental and core to our business and delivery of strategic ambitions.

 

The Board recognise the importance of good communications and endeavour to keep all employees informed of the activities and progress of the group and its plans for the future through the use of group intranet, staff bulletins and staff briefings.

 

Business relationships

Delivering our strategy requires strong mutually beneficial relationships with key suppliers and customers. The Board continuously reviews and approves the Group’s approach to these key relationships.

 

Impact on the community and the environment

The Board are committed to achieving environmental best practice through the business activities of the Group wherever this is practicable.

 

Reputation for high standards of business conduct

The Group aims to maintain the highest possible standards of business conduct to ensure it can continue to maintain its reputation of delivering high quality garments using the necessary specialist skills in robe making, wig making and bespoke tailoring.

 

The Board periodically review all areas of how the Group operates to ensure high standards are maintained within the Group and other business relationships.

EDE & RAVENSCROFT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 3 -

Acting fairly between members of the company

After weighing up all relevant factors, the Board consider which course of action best enables delivery of our strategy through the long-term, whilst taking into consideration the impact on our stakeholders. In doing so, the Board consider that we act fairly between members of the group, whilst noting that sometimes not all stakeholder interests will be fully aligned.

On behalf of the board

A T Halls
Director
28 September 2023
EDE & RAVENSCROFT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 4 -

The directors present their annual report and financial statements for the year ended 30 September 2022.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

E Middleton
EL Middleton
(Resigned 17 May 2022)
J S Middleton
M W Middleton
A T Halls
Financial instruments
Objectives and policies

The Group is exposed to the following risks from its use of financial instruments:

 

- Credit risk

- Liquidity risk

- Interest rate risk

 

The directors have overall responsibility for the establishment and oversight of the Groups risk management framework.

Price risk, credit risk, liquidity risk and cash flow risk

The group’s principal financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors, loans to the group and finance lease agreements. The main purpose of these instruments is to finance the group's operations.

 

In respect of bank balances, the liquidity risk and interest rate risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating and fixed rates of interest. All of the group’s cash balances are held in such a way that achieves a competitive rate of interest. The group makes use of money market facilities where funds are available.

 

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of specific allowances for doubtful debtors.

 

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Loans comprise of loans from financial institutions. The interest rate and monthly repayments on the loans from financial institutions are variable. The group manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.

Energy and carbon report

The Companies Act 2006 (Strategic Report and Directors’ Report) regulation 2018 requires the Group to disclose UK energy consumption and Greenhouse Gas (“GHG”) emissions from SECR regulated sources.

2022
2021
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
1,367,145
1,398,008
EDE & RAVENSCROFT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 5 -
2022
2021
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
86
298
- Fuel consumed for owned transport
134
16
220
314
Scope 2 - indirect emissions
- Electricity purchased
184
14
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
276
33
Total gross emissions
680
361
Intensity ratio
Tonnes CO2e per £m revenue (Scope 1 and 2 emissions)
9
26
Quantification and reporting methodology

Consumption data was determined by using invoices and meter data from suppliers and estimating fuel usage based on expenditure. Emissions were determined by applying the UK government conversion factors to the energy consumption values and aggregating the total.

Intensity measurement

In 2022, an intensity metric of tCO2e per £m turnover has been applied for the annual total emissions.

Measures taken to improve energy efficiency

The Group's policy is to conduct ourselves within the minimum carbon footprint and aim for a reduction over time.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
A T Halls
Director
28 September 2023
EDE & RAVENSCROFT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 6 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

EDE & RAVENSCROFT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EDE & RAVENSCROFT LIMITED
- 7 -
Opinion

We have audited the financial statements of Ede & Ravenscroft Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

EDE & RAVENSCROFT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EDE & RAVENSCROFT LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:

 

 

 

 

 

 

 

EDE & RAVENSCROFT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EDE & RAVENSCROFT LIMITED
- 9 -

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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

David Mark Newborough (Senior Statutory Auditor)
For and on behalf of Ashgates Corporate Services Limited
5 Prospect Place
Millennium Way
Pride Park
Derby
DE24 8HG
28 September 2023
EDE & RAVENSCROFT LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 10 -
Continuing
Discontinued
30 September
Continuing
Discontinued
30 September
operations
operations
2022
operations
operations
2021
Notes
£
£
£
£
£
£
Turnover
3
51,382,170
1,761,827
53,143,997
11,971,869
788,364
12,760,233
Cost of sales
(35,989,481)
(756,360)
(36,745,841)
(7,651,576)
(154,572)
(7,806,148)
Gross profit
15,392,689
1,005,467
16,398,156
4,320,293
633,792
4,954,085
Administrative expenses
(12,168,165)
(693,504)
(12,861,669)
(9,344,826)
(919,517)
(10,264,343)
Other operating income
375,500
83,637
459,137
1,618,492
277,801
1,896,293
Operating profit/(loss)
5
3,600,024
395,600
3,995,624
(3,406,041)
(7,924)
(3,413,965)
Share of results of associates and joint ventures
177,001
-
177,001
253,855
-
253,855
Interest receivable and similar income
8
51,668
-
51,668
36,577
-
36,577
Interest payable and similar expenses
9
(172,426)
(3,045)
(175,471)
(56,742)
(6,148)
(62,890)
Other gains and losses
10
(742,231)
-
(742,231)
120,000
33,041
153,041
Profit/(loss) before taxation
2,914,036
392,555
3,306,591
(3,052,351)
18,969
(3,033,382)
Tax on profit/(loss)
11
(647,951)
-
(647,951)
411,888
(48,860)
363,028
Profit/(loss) for the financial year
28
2,266,085
392,555
2,658,640
(2,640,463)
(29,891)
(2,670,354)
Profit/(loss) for the financial year is attributable to:
- Owners of the parent company
2,532,979
(2,524,453)
- Non-controlling interests
125,661
(145,901)
2,658,640
(2,670,354)
EDE & RAVENSCROFT LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 11 -
2022
2021
£
£
Profit/(loss) for the year
2,658,640
(2,670,354)
Other comprehensive income
Currency translation gain/(loss) taken to retained earnings
85,534
(114,305)
Total comprehensive income for the year
2,744,174
(2,784,659)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
2,618,513
(2,638,758)
- Non-controlling interests
125,661
(145,901)
2,744,174
(2,784,659)
EDE & RAVENSCROFT LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2022
30 September 2022
- 12 -
2022
2021
Notes
£
£
£
£
Fixed assets
Goodwill
13
1,304,054
-
0
Tangible assets
14
5,456,348
6,387,214
Investment property
15
14,314,760
16,015,710
Investments
16
1,500,462
973,459
22,575,624
23,376,383
Current assets
Stocks
19
6,104,556
5,698,225
Debtors
20
13,328,181
12,684,329
Cash at bank and in hand
18,989,439
3,631,818
38,422,176
22,014,372
Creditors: amounts falling due within one year
21
(33,058,635)
(14,995,904)
Net current assets
5,363,541
7,018,468
Total assets less current liabilities
27,939,165
30,394,851
Creditors: amounts falling due after more than one year
22
(2,531,410)
(4,198,535)
Provisions for liabilities
Deferred tax liability
25
249,342
30,877
(249,342)
(30,877)
Net assets
25,158,413
26,165,439
Capital and reserves
Called up share capital
27
16,800
16,800
Revaluation reserve
28
6,021,033
6,210,947
Profit and loss reserves
28
19,010,511
19,953,284
Equity attributable to owners of the parent company
25,048,344
26,181,031
Non-controlling interests
110,069
(15,592)
25,158,413
26,165,439
The financial statements were approved by the board of directors and authorised for issue on 28 September 2023 and are signed on its behalf by:
28 September 2023
A T Halls
Director
Company registration number 00424854 (England and Wales)
EDE & RAVENSCROFT LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2022
30 September 2022
- 13 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
14
5,374,840
5,307,253
Investment property
15
14,314,760
14,657,765
Investments
16
3,417,451
1,157,953
23,107,051
21,122,971
Current assets
Stocks
19
5,624,768
5,537,038
Debtors
20
14,148,017
14,245,493
Cash at bank and in hand
16,341,968
2,835,279
36,114,753
22,617,810
Creditors: amounts falling due within one year
21
(32,877,234)
(16,030,560)
Net current assets
3,237,519
6,587,250
Total assets less current liabilities
26,344,570
27,710,221
Creditors: amounts falling due after more than one year
22
(2,531,100)
(3,806,957)
Provisions for liabilities
Deferred tax liability
25
259,121
-
0
(259,121)
-
Net assets
23,554,349
23,903,264
Capital and reserves
Called up share capital
27
16,800
16,800
Revaluation reserve
28
6,121,781
6,314,020
Profit and loss reserves
28
17,415,768
17,572,444
Total equity
23,554,349
23,903,264

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,402,285 (2021 - £2,864,247 loss).

The financial statements were approved by the board of directors and authorised for issue on 28 September 2023 and are signed on its behalf by:
28 September 2023
A T Halls
Director
Company registration number 00424854 (England and Wales)
EDE & RAVENSCROFT LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 14 -
Share capital
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 October 2020
16,800
6,082,211
22,871,978
28,970,989
130,309
29,101,298
Year ended 30 September 2021:
Loss for the year
-
-
(2,524,453)
(2,524,453)
(145,901)
(2,670,354)
Other comprehensive income:
Currency translation differences
-
-
(114,305)
(114,305)
-
(114,305)
Total comprehensive income
-
-
(2,638,758)
(2,638,758)
(145,901)
(2,784,659)
Dividends
12
-
-
(151,200)
(151,200)
-
(151,200)
Transfers
-
128,736
(128,736)
-
-
-
Balance at 30 September 2021
16,800
6,210,947
19,953,284
26,181,031
(15,592)
26,165,439
Year ended 30 September 2022:
Profit for the year
-
-
2,532,979
2,532,979
125,661
2,658,640
Other comprehensive income:
Currency translation differences
-
-
85,534
85,534
-
85,534
Total comprehensive income
-
-
2,618,513
2,618,513
125,661
2,744,174
Dividends
12
-
-
(3,751,200)
(3,751,200)
-
(3,751,200)
Transfers
-
(189,914)
189,914
-
-
-
Balance at 30 September 2022
16,800
6,021,033
19,010,511
25,048,344
110,069
25,158,413
EDE & RAVENSCROFT LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 15 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2020
16,800
6,218,325
20,683,586
26,918,711
Year ended 30 September 2021:
Loss and total comprehensive income for the year
-
-
(2,864,247)
(2,864,247)
Dividends
12
-
-
(151,200)
(151,200)
Transfers
-
95,695
(95,695)
-
Balance at 30 September 2021
16,800
6,314,020
17,572,444
23,903,264
Year ended 30 September 2022:
Profit and total comprehensive income
-
-
3,402,285
3,402,285
Dividends
12
-
-
(3,751,200)
(3,751,200)
Transfers
-
(192,239)
192,239
-
Balance at 30 September 2022
16,800
6,121,781
17,415,768
23,554,349
EDE & RAVENSCROFT LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 16 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
36
22,373,203
3,880,354
Income taxes refunded
20,435
345,162
Net cash inflow from operating activities
22,393,638
4,225,516
Investing activities
Purchase of tangible fixed assets and investment properties
(783,353)
(37,413)
Proceeds from disposal of tangible fixed assets
-
800
Proceeds from disposal of investment property
280,000
-
Purchase of subsidiaries, net of cash acquired
(1,082,132)
-
Proceeds from disposal of subsidiaries, net of cash disposed
590,404
-
Purchase of investments
(350,000)
-
Interest received
51,668
36,577
Net cash used in investing activities
(1,293,413)
(36)
Financing activities
Proceeds from borrowings
-
87,299
Repayment of borrowings
-
(70,998)
Repayment of bank loans
(1,796,889)
(74,099)
Payment of finance leases obligations
(36,213)
-
Interest paid
(175,471)
(62,890)
Dividends paid to equity shareholders
(3,751,200)
(151,200)
Net cash used in financing activities
(5,759,773)
(271,888)
Net increase in cash and cash equivalents
15,340,452
3,953,592
Cash and cash equivalents at beginning of year
3,630,414
(296,253)
Effect of foreign exchange rates
18,573
(26,925)
Cash and cash equivalents at end of year
18,989,439
3,630,414
Relating to:
Cash at bank and in hand
18,989,439
3,631,818
Bank overdrafts included in creditors payable within one year
-
(1,404)

The notes on pages 17 to 46 form part of these financial statements.

EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 17 -
1
Accounting policies
Company information

Ede & Ravenscroft Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 93 Chancery Lane, London, WC2A 1DU.

 

The group consists of Ede & Ravenscroft Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Ede & Ravenscroft Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 September 2022 - with the exception of one subsidiary (Ede and Ravenscroft (Malaysia) Sdn. Bhd). Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 18 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 19 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
2% - 5% straight line
Freehold land
not depreciated
Long leasehold land and buildings
over the lease term
Machinery, fixtures and fittings
2% - 33% staight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 20 -
1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 21 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 22 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 23 -
1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
2
Judgements and key sources of estimation uncertainty
(Continued)
- 24 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Impairment of debtors:

On a periodic basis management makes an estimation of the recoverability of debtors. Management make such estimations taking into account their knowledge of the customers, connected companies and subsidiary companies of the group.

Valuation of investment properties:

The valuations rely on a number of estimations and assumptions being made in relation to market conditions and developments.

Impairment of stock:

Management calculates impairments by considering the nature and condition of the stocks and applies assumptions around anticipated saleability of finished goods and future usage of raw materials, overheads and labour.

Impairment of assets:

Upon acquisition, management make an estimation as to the useful economic life of each asset and set a depreciation rate accordingly. On a periodic basis, management makes an estimation of the remaining useful economic lives of assets. Management make such estimations taking into account their knowledge of the assets.

3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Garment sales and hires
37,079,061
9,236,495
Photography sales
15,107,802
2,504,611
Rental income
957,134
1,019,127
53,143,997
12,760,233
2022
2021
£
£
Turnover analysed by geographical market
UK
47,489,697
11,014,272
Europe
2,891,372
893,399
Rest of world
2,762,928
852,562
53,143,997
12,760,233
2022
2021
£
£
Other revenue
Interest income
51,668
36,577
Grants received
50,965
1,423,254
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 25 -
4
Exceptional item
2022
2021
£
£
Expenditure
Impairment of property, plant and equipment
-
172,011
-
172,011

During the prior year £172,011 impairment was recognised in respect of the photographic archive, within the machinery, fixtures and fittings category.

5
Operating profit/(loss)
2022
2021
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange losses
17,201
136,699
Government grants
(50,965)
(1,423,254)
Depreciation of owned tangible fixed assets
619,329
661,337
Profit on disposal of tangible fixed assets
-
(800)
Amortisation of intangible assets
54,958
-
Rentals - plant, machinery and other
476,175
426,680
6
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
105,000
93,751
Audit of the financial statements of the company's subsidiaries
7,887
3,250
112,887
97,001
For other services
Taxation compliance services
8,167
7,000
All other non-audit services
11,750
6,400
19,917
13,400
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 26 -
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Manufacturing
53
38
36
38
Administration and support
49
76
49
47
Sales and distribution
83
49
83
41
Total
185
163
168
126
The average number of workers in the group and company during the year was:
Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Ceremony workers
339
33
339
33
Total
339
33
339
33

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
9,190,797
4,626,670
8,084,024
3,882,586
Social security costs
652,985
366,200
626,850
351,066
Pension costs
360,823
200,269
331,507
166,373
10,204,605
5,193,139
9,042,381
4,400,025
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Other interest income
51,668
36,577
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 27 -
9
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
165,182
50,931
Interest on preference shares
2,016
2,016
Other interest on financial liabilities
6,091
4,970
173,289
57,917
Other finance costs:
Interest on finance leases and hire purchase contracts
2,182
4,973
Total finance costs
175,471
62,890
10
Other gains and losses
2022
2021
£
£
Fair value gains/(losses) on financial instruments
Fair value movement on investment property
(109,836)
120,000
Profit or (loss) on sale of investments in subsidiaries
2,325
-
Profit or (loss) on sale of investment property
(10,000)
-
(117,511)
120,000
Other gains/(losses)
Gain on disposal of investments held at fair value
-
33,041
Gains or (losses) on disposal of subsidiaries
(624,720)
-
(742,231)
153,041
11
Taxation
2022
2021
£
£
Current tax
Corporation tax
70,001
64,618
Adjustments in respect of prior periods
(3,951)
(63,116)
Total current tax
66,050
1,502
Deferred tax
Origination and reversal of timing differences
626,938
(449,805)
Adjustment in respect of prior periods
(45,037)
85,275
Total deferred tax
581,901
(364,530)
Total tax charge/(credit)
647,951
(363,028)
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
11
Taxation
(Continued)
- 28 -

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit/(loss) before taxation
3,306,591
(3,033,382)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
628,252
(576,342)
Tax effect of expenses that are not deductible in determining taxable profit
57,279
61,365
Effect of tax losses
(431,782)
506,397
Adjustments in respect of prior years
(3,951)
(63,116)
Capital allowances in excess of depreciation
(132,795)
75,037
Other tax effects for reconciliation between accounting profit and tax expense
(106,237)
(28,158)
Effect of foreign tax rates
(50,210)
103,691
Fair value movement on properties
20,869
(29,140)
Decrease from effect of joint ventures results reported net of tax
(33,630)
(48,232)
Profit on disposal of invesment
118,255
-
0
Deferred taxation
581,901
(364,530)
Taxation charge/(credit)
647,951
(363,028)
12
Dividends
2022
2021
Recognised as distributions to equity holders:
£
£
Interim paid
3,751,200
151,200
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 29 -
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 October 2021
1,918,288
Additions
1,379,012
Disposals
(839,406)
Exchange adjustments
13,461
At 30 September 2022
2,471,355
Amortisation and impairment
At 1 October 2021
1,918,288
Amortisation charged for the year
54,958
Disposals
(819,406)
Exchange adjustments
13,461
At 30 September 2022
1,167,301
Carrying amount
At 30 September 2022
1,304,054
At 30 September 2021
-
0
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 30 -
14
Tangible fixed assets
Group
Land and buildings
Machinery, fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2021
9,935,044
10,874,257
609,138
21,418,439
Additions
-
0
690,243
64,117
754,360
Business combinations
-
0
21,219
-
0
21,219
Disposals
(1,149,512)
(855,786)
(190,956)
(2,196,254)
Transfer to investment property
(72,551)
-
0
-
0
(72,551)
Exchange adjustments
28,616
41,708
21,952
92,276
At 30 September 2022
8,741,597
10,771,641
504,251
20,017,489
Depreciation and impairment
At 1 October 2021
4,668,876
9,834,903
527,446
15,031,225
Depreciation charged in the year
300,651
257,379
61,299
619,329
Eliminated in respect of disposals
(274,452)
(729,125)
(126,155)
(1,129,732)
Transfers
132,323
(132,323)
-
0
-
0
Transfer to investment property
(23,494)
-
0
-
0
(23,494)
Exchange adjustments
6,646
36,837
20,330
63,813
At 30 September 2022
4,810,550
9,267,671
482,920
14,561,141
Carrying amount
At 30 September 2022
3,931,047
1,503,970
21,331
5,456,348
At 30 September 2021
5,266,168
1,039,354
81,692
6,387,214
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
14
Tangible fixed assets
(Continued)
- 31 -
Company
Land and buildings
Machinery, fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2021
8,814,148
9,599,371
279,096
18,692,615
Additions
-
0
592,044
32,072
624,116
Transfer to investment property
(72,551)
-
0
-
0
(72,551)
At 30 September 2022
8,741,597
10,191,415
311,168
19,244,180
Depreciation and impairment
At 1 October 2021
4,408,516
8,717,680
259,166
13,385,362
Depreciation charged in the year
293,205
179,521
34,746
507,472
Transfers
132,323
(132,323)
-
0
-
0
Transfer to investment property
(23,494)
-
0
-
0
(23,494)
At 30 September 2022
4,810,550
8,764,878
293,912
13,869,340
Carrying amount
At 30 September 2022
3,931,047
1,426,537
17,256
5,374,840
At 30 September 2021
4,405,632
881,691
19,930
5,307,253

The carrying value of land and buildings comprises:

Group
Company
2022
2021
2022
2021
£
£
£
£
Freehold
3,931,047
5,263,952
3,938,821
4,403,416
Long leasehold
-
0
2,216
-
0
2,216
3,931,047
5,266,168
3,938,821
4,405,632

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2022
2021
2022
2021
£
£
£
£
Machinery, fixtures and fittings
-
0
22,970
-
0
22,970
Motor vehicles
18,222
86,072
14,386
36,906
18,222
109,042
14,386
59,876
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 32 -
15
Investment property
Group
Company
2022
2022
£
£
Fair value
At 1 October 2021
16,015,710
14,657,765
Additions
7,774
7,774
Transfers from owner-occupied property
49,057
49,057
Disposals
(1,682,612)
(290,000)
Net gains or losses through fair value adjustments
(109,836)
(109,836)
Foreign currency adjustments
34,667
-
At 30 September 2022
14,314,760
14,314,760

The fair value of the investment properties were reviewed by the directors at 30 September 2022. The fair values have been determined by carrying out a review of the property market and investment yields in the area. The directors also consider general property valuation changes from the dates of previous external valuations and consult with professional valuers for informal commentary around market prices.

16
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
17
-
0
-
0
2,425,203
515,705
Investments in joint ventures
18
643,720
466,717
135,506
135,506
Unlisted investments
856,742
506,742
856,742
506,742
1,500,462
973,459
3,417,451
1,157,953
Movements in fixed asset investments
Group
Shares in joint ventures
Other investments
Total
£
£
£
Cost or valuation
At 1 October 2021
466,717
506,742
973,459
Additions
-
350,000
350,000
Share of current year profits
177,003
-
177,003
At 30 September 2022
643,720
856,742
1,500,462
Carrying amount
At 30 September 2022
643,720
856,742
1,500,462
At 30 September 2021
466,717
506,742
973,459
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
16
Fixed asset investments
(Continued)
- 33 -
Movements in fixed asset investments
Company
Shares in subsidiaries and joint ventures
Other investments
Total
£
£
£
Cost or valuation
At 1 October 2021
1,191,175
506,742
1,697,917
Additions
1,909,500
350,000
2,259,500
Disposals
(102)
-
(102)
At 30 September 2022
3,100,573
856,742
3,957,315
Impairment
At 1 October 2021
539,964
-
539,964
Disposals
(100)
-
(100)
At 30 September 2022
539,864
-
539,864
Carrying amount
At 30 September 2022
2,560,709
856,742
3,417,451
At 30 September 2021
651,211
506,742
1,157,953
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 34 -
17
Subsidiaries

Details of the company's subsidiaries at 30 September 2022 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Luke Eyres Limited
93 Chancery Lane, London, WC2A 1DU
Sales of manufactured textile garments
Ordinary
100.00
Lafayette Photography Limited
93 Chancery Lane, London, WC2A 1DU
Provision of photography services
Ordinary
100.00
Armstrong and Oxford Limited
C/O Edwin Foley & Co, Oakpark Drive, Woodlands, Republic of Ireland
Hiire and sale of academic dress and legal wear
Ordinary
100.00
Ede & Ravenscroft (Malaysia) SDN.BHD
Lot 336 3rd Floor Campbell Complex, Jalan Dang Wangi, Malaysia
Merchandising, tailoring and hiring of academic dress, and the provision of photographic services
Ordinary
51.00
Hall Bros Limited
93 Chancery Lane, London, WC2A 1DU
Property letting.
Ordinary
100.00
Absolute Careers Limited
93 Chancery Lane, London, WC2A 1DU
Dormant company
Ordinary
100.00
Ede & Ravenscroft Photography Limited
93 Chancery Lane, London, WC2A 1DU
Dormant company
Ordinary
100.00
E&R Services Limited
93 Chancery Lane, London, WC2A 1DU
Dormant company
Ordinary
100.00
Fashion House Services Limited
93 Chancery Lane, London, WC2A 1DU
Dormant company
Ordinary
100.00
Lionheart Academic Portraits Limited
93 Chancery Lane, London, WC2A 1DU
Dormant company
Ordinary
100.00
Ede & Ravenscroft Nigeria Limited
5th Floor Akuro House, 24 Campbell Street, Nigeria
Dormant company
Ordinary
100.00
Ede & Ravenscroft (Hong Kong) Limited
Bank of America Tower, 12 Harcourt Rd, Hong Kong, China
Dormant company
Ordinary
100.00
Wm. Northam & Company Limited
93 Chancery Lane, London, WC2A 1DU
Robemaking, hire of academic gowns and photographic services.
Ordinary
100.00

 

The period end of all subsidiaries' noted above is consistent with the parent entity with the exception of Ede & Ravenscroft (Malaysia) Sdn. Bhd. The period end of this subsidiary is 31 December.

 

 

Exemption from audit by parent guarantee

For the year ending 30 September 2022 the following subsidiaries were entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies:

 

Lafayette Photography Limited - Company number 05699331

 

Luke Eyres Limited - Company number 02341012

 

As required Ede & Ravenscroft Limited have issued a guarantee under Section 479c of the Companies Act 2006, which guarantees all outstanding liabilities to which the subsidiary companies listed above are subject at the end of the financial year, until they are satisfied in full and the guarantee is enforceable against Ede & Ravenscroft Limited by any person to whom the subsidiary companies listed above is liable in respect of those liabilities.

 

EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 35 -
18
Joint ventures

Details of joint ventures at 30 September 2022 are as follows:

Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
First Sight Media Limited
Suite 3-4 Wesley House,Venturepark , Carterton, OX18 1AD, England & Wales
Video streaming and production
Ordinary
50.00
19
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Raw materials
1,920,203
1,473,352
1,802,801
1,464,715
Property development - work in progress
90,359
90,359
90,359
90,359
Work in progress
614,973
247,842
614,973
247,842
Finished goods
3,479,021
3,886,672
3,116,635
3,734,122
6,104,556
5,698,225
5,624,768
5,537,038

Group

 

Impairment of stock

 

The amount of impairment loss included in profit or loss is £31,330 (2021 - £156,700).

 

The carrying amount of stocks pledged as security for liabilities amounted to £6,104,556 (2021 - £5,698,225).

 

Company

 

Impairment of stock

 

The amount of impairment loss included in profit or loss is (£85,992) (2021 - £156,700).

 

The carrying amount of stocks pledged as security for liabilities amounted to £5,624,768 (2021 - £5,537,038).

20
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,839,119
3,854,976
6,245,823
4,214,046
Amounts owed by group undertakings
-
-
308,417
1,240,060
Other debtors
6,582,991
7,863,926
6,699,563
7,849,133
Prepayments and accrued income
906,071
639,891
894,214
616,718
13,328,181
12,358,793
14,148,017
13,919,957
Deferred tax asset (note 25)
-
0
325,536
-
0
325,536
13,328,181
12,684,329
14,148,017
14,245,493
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 36 -
21
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
23
1,250,000
1,396,557
1,250,000
1,250,000
Obligations under finance leases
24
24,638
35,362
23,210
23,641
Payments received on account
6,306,199
2,132,655
6,306,199
2,132,655
Trade creditors
8,702,986
4,005,537
8,507,780
3,904,853
Amounts owed to group undertakings
-
0
-
0
881,121
1,724,722
Corporation tax payable
86,640
3,224
-
0
-
0
Other taxation and social security
1,038,675
1,186,188
1,011,589
1,079,399
Other creditors
4,436,892
1,686,387
4,192,189
1,564,531
Accruals and deferred income
11,212,605
4,549,994
10,705,146
4,350,759
33,058,635
14,995,904
32,877,234
16,030,560
22
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
23
2,497,500
4,139,344
2,497,500
3,750,000
Obligations under finance leases
24
310
25,591
-
0
23,357
Other borrowings
23
33,600
33,600
33,600
33,600
2,531,410
4,198,535
2,531,100
3,806,957
23
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
3,747,500
5,534,497
3,747,500
5,000,000
Bank overdrafts
-
0
1,404
-
0
-
0
Preference shares
33,600
33,600
33,600
33,600
3,781,100
5,569,501
3,781,100
5,033,600
Payable within one year
1,250,000
1,396,557
1,250,000
1,250,000
Payable after one year
2,531,100
4,172,944
2,531,100
3,783,600
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
23
Loans and overdrafts
(Continued)
- 37 -

Group

 

Bank borrowings

 

The carrying amount at year end is £3,747,500 (2021 - £5,535,901).

 

Bank borrowings are denominated in sterling and interest is charged on a fixed interest basis. The interest rate is 3.16% and the final instalment is due in July 2025.

 

The bank loans are secured by virtue of a legal charge over certain freehold land and building owned by the group.

 

The bank overdrafts are secured by virtue of legal charges and debentures against all of the current and fixed assets owned by the group.

 

Other borrowings

 

Obligations under finance lease and hire purchase contracts have a carrying amount at the year end of £24,948 (2021 - £60,953).

 

The obligations under finance lease and hire purchase contracts are secured on the related asset.

 

Company

 

Bank borrowings

 

The carrying amount at year end is £3,747,500 (2021 - £ 5,000,000).

 

Bank borrowings are denominated in sterling and interest is charged on a fixed interest basis. The interest rate is 3.16% and the final instalment is due in July 2025.

 

The bank loans are secured by virtue of a legal charge over certain freehold land and building owned by the group.

 

The bank overdrafts are secured by virtue of legal charges and debentures against all of the current and fixed assets owned by the group.

 

Other borrowings

 

Obligations under finance lease and hire purchase contracts have a carrying amount at the year end of £23,210 (2021 - £46,998).

 

The obligations under finance lease and hire purchase contracts are secured on the related asset.

EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 38 -
24
Finance lease obligations
Group
Company
2022
2021
2022
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
25,173
37,850
23,701
25,548
In two to five years
320
26,267
-
0
23,848
25,493
64,117
23,701
49,396
Less: future finance charges
(545)
(3,164)
(491)
(2,398)
24,948
60,953
23,210
46,998
25
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2022
2021
2022
2021
Group
£
£
£
£
Accelerated capital allowances
590,135
292,951
-
-
Tax losses
-
-
463,632
693,001
Revaluations
-
105,391
-
-
Investment property
122,839
-
-
-
712,974
398,342
463,632
693,001
Liabilities
Liabilities
Assets
Assets
2022
2021
2022
2021
Company
£
£
£
£
Accelerated capital allowances
599,914
272,977
-
-
Tax losses
-
-
463,632
693,001
Revaluations
-
94,488
-
-
Investment property
122,839
-
-
-
722,753
367,465
463,632
693,001
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
25
Deferred taxation
(Continued)
- 39 -
Group
Company
2022
2022
Movements in the year:
£
£
Asset at 1 October 2021
(294,659)
(325,536)
Charge to profit or loss
581,901
584,657
Transfer on disposal
(38,868)
-
Exchange rate movement
968
-
Liability at 30 September 2022
249,342
259,121

Group

The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £(371,305) (2021 - £(621,064)). The reversal of deferred tax calculation assumes carry forward losses will be utilised in the subsequent account period.

 

Company

The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £(371,380) (2021 - £(621,592)). The reversal of deferred tax calculation assumes carry forward losses will be utilised in the subsequent account period.

 

26
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
360,823
200,269

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Contributions totalling £35,075 (2021 - £17,694) were payable to the scheme at the end of the year and are included in creditors.

27
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
16,800
16,800
16,800
16,800

Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions:
Each share has full voting rights in the company with respect to voting, dividends and distributions.

EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 40 -
28
Reserves
Profit and loss reserves

Group

 

Profit and loss account

 

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

 

Minority interest

 

The minority interest reserve represents the element of the above attributable to minority shareholders of subsidiaries within the group.

 

Fair value reserve

 

The fair value reserve represents the cumulative gains and impairments in relation to the group's non-current assets which are carried at fair value. The reserve also encompasses any deferred taxation movements on such gains.

 

Company

 

Profit and loss account

 

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.

 

Fair value reserve

 

The fair value reserve represents the cumulative gains and impairments in relation to the company's non-current assets which are carried at fair value. The reserve also encompasses any deferred taxation movements on such gains.

29
Acquisition of a business

On 30 May 2022 the group acquired 100% percent of the issued capital of Wm. Northam & Co. Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Plant and equipment
21,219
-
21,219
Inventories
136,691
-
136,691
Trade and other receivables
1,021,260
-
1,021,260
Cash and cash equivalents
827,368
-
827,368
Trade and other payables
(1,390,912)
-
(1,390,912)
Tax liabilities
(27,205)
-
(27,205)
Deferred tax
12,067
-
12,067
Total identifiable net assets
600,488
-
600,488
Goodwill
1,299,512
Total consideration
1,900,000
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
29
Acquisition of a business
(Continued)
- 41 -
The consideration was satisfied by:
£
Cash
1,900,000
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
1,746,608
Profit after tax
264,679

The goodwill arising on the acquisition of the business is attributable to the anticipated profitability of the company in relation to the contracts already held and the expectation of the market share being at least maintained into the future.

30
Disposals

On 5 May 2022 the group disposed of its 100% holding in Lafayette Graduation Services Limited. Included in these financial statements are profits of £425,347 arising from the company's interests in Lafayette Graduation Services Limited up to the date of its disposal.

 

Net assets disposed of
£
Cash and cash equivalents
685,845
Property, plant and equipment
2,383,854
Trade and other receivables
536,219
Inventories
58,622
Trade and other payables
(1,022,151)
Tax liabilities
(24,144)
Obligations under finance leases
(3,585)
Borrowings
(441,171)
Deferred tax
(39,262)
2,134,227
Loss on disposal
(805,323)
Total consideration
1,328,904
The consideration was satisfied by:
£
Cash
1,328,904
1,328,904
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
30
Disposals
(Continued)
- 42 -

On 5 May 2022 the group disposed of its 100% holding in Lafayette Photography (NI) Limited. Included in these financial statements are losses of £32,791 arising from the company's interests in Lafayette Photography (NI) Limited up to the date of its disposal.

 

Net assets disposed of
£
Cash and cash equivalents
53,653
Intangible assets
20,000
Property, plant and equipment
75,280
Trade and other receivables
12,008
Inventories
16,511
Trade and other payables
(314,816)
Borrowings
(43,783)
(181,147)
Gain on disposal
182,147
Total consideration
1,000
The consideration was satisfied by:
£
Cash
1,000
31
Discontinued operations
Lafayette Graduation Services Ltd

On 5th May 2022 the group completed the sale of the business. The disposal was effected in order to streamline its service offering.

A loss of £805,323 arose on the disposal, being the proceeds of the sale, less the carrying amount of the business assets and attributable goodwill.

Lafayette Photography (NI) Ltd

On 5th May 2022 the group completed the sale of the business. The disposal was effected in order to streamline its service offering.

A gain of £182,147 arose on the disposal, being the proceeds of the sale, less the carrying amount of the business assets and attributable goodwill.

EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 43 -
32
Financial commitments, guarantees and contingent liabilities

Group

 

The group have entered into cross guarantees and debentures to its bankers in respect of the liabilities of other related companies. The contingent liability as at 30 September 2022 is £4,525,364 (2021 - £3,711,306). The future outcome is dependent upon the performance of individual companies concerned. However the directors do not expect any liabilities to crystallise.

 

Company

 

The company has entered in cross guarantees and debentures to its bankers in respect of the liabilities of other group and related companies. The contingent liability as at the 30 September 2022 is £527,098 (2021 - £3,571,993). The future outcome is dependent upon the performance of individual companies concerned. However the directors do not expect any liability to crystallise.

33
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
256,100
269,900
254,900
269,900
Between two and five years
978,837
1,079,600
978,237
1,079,600
In over five years
1,185,000
1,428,537
1,185,000
1,428,537
2,419,937
2,778,037
2,418,137
2,778,037
Lessor

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
294,411
523,944
294,411
523,944
Between two and five years
577,652
747,063
577,652
747,063
In over five years
249,288
339,288
249,288
339,288
1,121,351
1,610,295
1,121,351
1,610,295
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 44 -
34
Related party transactions
Transactions with related parties
Companies with common directors and/or common ultimate beneficial shareholders and other related individuals.
Income and receivables from related parties
Sale of goods
Interest received
Management charges received
2022
2021
2022
2021
2022
2021
£
£
£
£
£
£
Group
Other related parties
394,125
1,868,594
51,276
38,651
300,711
315,600
Company
-
-
-
-
-
-
Other related parties
394,125
1,868,594
51,276
38,651
300,711
315,600
Expenditure with and payables to related parties
Purchase of goods
Costs recharged
Management charges paid
2022
2021
2022
2021
2022
2021
£
£
£
£
£
£
Group
Other related parties
4,952,381
1,330,865
32,000
32,000
2,798,000
1,998,000
Company
-
-
-
-
-
-
Other related parties
4,829,835
1,330,865
32,000
32,000
2,798,000
1,998,000
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 45 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2022
2021
Balance
Balance
£
£
Group
Other related parties
1,380,695
6,382,754
Company
Other related parties
1,118,237
6,382,754
35
Controlling party

There is no ultimate controlling party.

36
Cash generated from group operations
2022
2021
£
£
Profit/(loss) for the year after tax
2,658,640
(2,670,354)
Adjustments for:
Share of results of associates and joint ventures
(177,001)
(253,855)
Taxation charged/(credited)
647,951
(363,028)
Finance costs
175,471
62,890
Investment income
(51,668)
(36,577)
Gain on disposal of tangible fixed assets
-
(800)
Amortisation and impairment of intangible assets
54,958
-
Depreciation and impairment of tangible fixed assets
619,329
833,348
Other gains and losses
742,231
(153,041)
Movements in working capital:
(Increase)/decrease in stocks
(618,155)
1,272,704
(Increase)/decrease in debtors
(2,543,809)
2,463,844
Increase in creditors
20,865,256
2,725,223
Cash generated from operations
22,373,203
3,880,354
EDE & RAVENSCROFT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 46 -
37
Analysis of changes in net funds/(debt) - group
1 October 2021
Cash flows
Acquisitions and disposals
Exchange rate movements
30 September 2022
£
£
£
£
£
Cash at bank and in hand
3,631,818
15,251,178
87,870
18,573
18,989,439
Bank overdrafts
(1,404)
1,404
-
-
-
0
3,630,414
15,252,582
87,870
18,573
18,989,439
Borrowings excluding overdrafts
(5,534,497)
1,311,935
484,954
(9,892)
(3,747,500)
Obligations under finance leases
(60,953)
36,213
-
(208)
(24,948)
(1,965,036)
16,600,730
572,824
8,473
15,216,991
38
Events after the reporting date

After the balance sheet date, dividends of £151,200 were voted and paid.

39
Directors' transactions

At the balance sheet date, an amount of £359,000 (2021 - £nil) was owed to a director of the company.

2022-09-302021-10-01falseCCH SoftwareCCH Accounts Production 2023.200E MiddletonEL MiddletonJ S MiddletonM W MiddletonMr A T HallsA T Halls340228500424854bus:Consolidated2021-10-012022-09-30004248542021-10-012022-09-3000424854bus:Director12021-10-012022-09-3000424854bus:Director32021-10-012022-09-3000424854bus:Director42021-10-012022-09-3000424854bus:CompanySecretaryDirector12021-10-012022-09-3000424854bus:Director22021-10-012022-09-3000424854bus:Director52021-10-012022-09-3000424854bus:CompanySecretary12021-10-012022-09-3000424854bus:RegisteredOffice2021-10-012022-09-3000424854bus:Consolidated2022-09-30004248542022-09-3000424854bus:Consolidated2020-10-012021-09-30004248542020-10-012021-09-3000424854core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-10-012022-09-3000424854core:RetainedEarningsAccumulatedLossesbus:Consolidated2020-10-012021-09-3000424854core:Goodwillbus:Consolidated2022-09-3000424854core:Goodwillbus:Consolidated2021-09-3000424854bus:Consolidated2021-09-30004248542021-09-3000424854core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2022-09-3000424854core:PlantMachinerybus:Consolidated2022-09-3000424854core:MotorVehiclesbus:Consolidated2022-09-3000424854core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2021-09-3000424854core:PlantMachinerybus:Consolidated2021-09-3000424854core:MotorVehiclesbus:Consolidated2021-09-3000424854core:PlantMachinery2022-09-3000424854core:MotorVehicles2022-09-3000424854core:LandBuildingscore:OwnedOrFreeholdAssets2021-09-3000424854core:PlantMachinery2021-09-3000424854core:MotorVehicles2021-09-3000424854core:ShareCapitalbus:Consolidated2022-09-3000424854core:ShareCapitalbus:Consolidated2021-09-3000424854core:RevaluationReservebus:Consolidated2022-09-3000424854core:RevaluationReservebus:Consolidated2021-09-3000424854core:ShareCapital2022-09-3000424854core:ShareCapital2021-09-3000424854core:RevaluationReserve2022-09-3000424854core:RevaluationReserve2021-09-3000424854core:RetainedEarningsAccumulatedLosses2022-09-3000424854core:ShareCapitalbus:Consolidated2020-09-3000424854core:SharePremiumbus:Consolidated2020-09-3000424854core:RetainedEarningsAccumulatedLossesbus:Consolidated2020-09-3000424854core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-09-3000424854core:Non-controllingInterestsbus:Consolidated2021-09-3000424854core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-09-3000424854core:Non-controllingInterestsbus:Consolidated2022-09-3000424854core:ShareCapital2020-09-3000424854core:RevaluationReserve2020-09-3000424854core:RetainedEarningsAccumulatedLosses2020-09-3000424854core:RetainedEarningsAccumulatedLosses2021-09-3000424854bus:Consolidated2020-09-3000424854core:Goodwill2021-10-012022-09-3000424854core:LandBuildingscore:OwnedOrFreeholdAssets2021-10-012022-09-3000424854core:LandBuildingscore:LongLeaseholdAssets2021-10-012022-09-3000424854core:LeaseholdImprovements2021-10-012022-09-3000424854core:PlantMachinery2021-10-012022-09-3000424854core:MotorVehicles2021-10-012022-09-3000424854core:UKTaxbus:Consolidated2021-10-012022-09-3000424854core:UKTaxbus:Consolidated2020-10-012021-09-3000424854bus:Consolidated12021-10-012022-09-3000424854bus:Consolidated12020-10-012021-09-3000424854bus:Consolidated22021-10-012022-09-3000424854bus:Consolidated22020-10-012021-09-3000424854bus:Consolidated32021-10-012022-09-3000424854bus:Consolidated32020-10-012021-09-3000424854bus:Consolidated42021-10-012022-09-3000424854bus:Consolidated42020-10-012021-09-3000424854bus:Consolidated52021-10-012022-09-3000424854bus:Consolidated52020-10-012021-09-3000424854core:Goodwillbus:Consolidated2021-09-3000424854core:Goodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2021-10-012022-09-3000424854core:Goodwillbus:Consolidated2021-10-012022-09-3000424854core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2021-09-3000424854core:PlantMachinerybus:Consolidated2021-09-3000424854core:MotorVehiclesbus:Consolidated2021-09-3000424854bus:Consolidated2021-09-3000424854core:PlantMachinery2021-09-3000424854core:MotorVehicles2021-09-30004248542021-09-3000424854core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2021-10-012022-09-3000424854core:PlantMachinerybus:Consolidated2021-10-012022-09-3000424854core:MotorVehiclesbus:Consolidated2021-10-012022-09-3000424854core:LandBuildingscore:OwnedOrFreeholdAssets2022-09-3000424854core:LandBuildingscore:LongLeaseholdAssetsbus:Consolidated2022-09-3000424854core:LandBuildingscore:LongLeaseholdAssetsbus:Consolidated2021-09-3000424854core:LandBuildingscore:LongLeaseholdAssets2022-09-3000424854core:LandBuildingscore:LongLeaseholdAssets2021-09-3000424854core:UnlistedNon-exchangeTradedbus:Consolidated2022-09-3000424854core:UnlistedNon-exchangeTradedbus:Consolidated2021-09-3000424854core:UnlistedNon-exchangeTraded2022-09-3000424854core:UnlistedNon-exchangeTraded2021-09-3000424854core:Subsidiary1bus:Consolidated2021-10-012022-09-3000424854core:Subsidiary2bus:Consolidated2021-10-012022-09-3000424854core:Subsidiary3bus:Consolidated2021-10-012022-09-3000424854core:Subsidiary4bus:Consolidated2021-10-012022-09-3000424854core:Subsidiary5bus:Consolidated2021-10-012022-09-3000424854core:Subsidiary6bus:Consolidated2021-10-012022-09-3000424854core:Subsidiary7bus:Consolidated2021-10-012022-09-3000424854core:Subsidiary8bus:Consolidated2021-10-012022-09-3000424854core:Subsidiary9bus:Consolidated2021-10-012022-09-3000424854core:Subsidiary10bus:Consolidated2021-10-012022-09-3000424854core:Subsidiary11bus:Consolidated2021-10-012022-09-3000424854core:Subsidiary12bus:Consolidated2021-10-012022-09-3000424854core:Subsidiary13bus:Consolidated2021-10-012022-09-3000424854core:Subsidiary1bus:Consolidated12021-10-012022-09-3000424854core:Subsidiary2bus:Consolidated12021-10-012022-09-3000424854core:Subsidiary3bus:Consolidated12021-10-012022-09-3000424854core:Subsidiary4bus:Consolidated12021-10-012022-09-3000424854core:Subsidiary5bus:Consolidated12021-10-012022-09-3000424854core:Subsidiary6bus:Consolidated12021-10-012022-09-3000424854core:Subsidiary7bus:Consolidated12021-10-012022-09-3000424854core:Subsidiary8bus:Consolidated12021-10-012022-09-3000424854core:Subsidiary10bus:Consolidated12021-10-012022-09-3000424854core:Subsidiary11bus:Consolidated12021-10-012022-09-3000424854core:Subsidiary13bus:Consolidated12021-10-012022-09-3000424854core:Subsidiary9bus:Consolidated12021-10-012022-09-3000424854core:Subsidiary12bus:Consolidated12021-10-012022-09-3000424854core:JointVenture1bus:Consolidated12021-10-012022-09-3000424854core:CurrentFinancialInstruments2022-09-3000424854core:CurrentFinancialInstrumentsbus:Consolidated2022-09-3000424854core:CurrentFinancialInstrumentsbus:Consolidated2021-09-3000424854core:CurrentFinancialInstruments2021-09-3000424854core:WithinOneYearbus:Consolidated2022-09-3000424854core:WithinOneYearbus:Consolidated2021-09-3000424854core:CurrentFinancialInstrumentscore:WithinOneYear2022-09-3000424854core:CurrentFinancialInstrumentscore:WithinOneYear2021-09-3000424854core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-09-3000424854core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2021-09-3000424854core:Non-currentFinancialInstrumentscore:AfterOneYear2022-09-3000424854core:Non-currentFinancialInstrumentscore:AfterOneYear2021-09-3000424854core:Non-currentFinancialInstrumentsbus:Consolidated2022-09-3000424854core:Non-currentFinancialInstrumentsbus:Consolidated2021-09-3000424854core:Non-currentFinancialInstruments2022-09-3000424854core:Non-currentFinancialInstruments2021-09-3000424854core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-09-3000424854core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2021-09-3000424854core:WithinOneYear2022-09-3000424854core:WithinOneYear2021-09-3000424854core:BetweenTwoFiveYearsbus:Consolidated2022-09-3000424854core:BetweenTwoFiveYearsbus:Consolidated2021-09-3000424854core:BetweenTwoFiveYears2022-09-3000424854core:BetweenTwoFiveYears2021-09-3000424854bus:PrivateLimitedCompanyLtd2021-10-012022-09-3000424854bus:FRS1022021-10-012022-09-3000424854bus:Audited2021-10-012022-09-3000424854bus:ConsolidatedGroupCompanyAccounts2021-10-012022-09-3000424854bus:FullAccounts2021-10-012022-09-30xbrli:purexbrli:sharesiso4217:GBP