REGISTERED NUMBER: 04713781 (England and Wales) |
Rima UK Limited |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
For The Year Ended |
31st December 2022 |
REGISTERED NUMBER: 04713781 (England and Wales) |
Rima UK Limited |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
For The Year Ended |
31st December 2022 |
Rima UK Limited (Registered number: 04713781) |
Contents of the Consolidated Financial Statements |
For The Year Ended 31st December 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 | to | 4 |
Report of the Independent Auditors | 5 | to | 6 |
Consolidated Income Statement | 7 |
Consolidated Other Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 | to | 23 |
Rima UK Limited |
Company Information |
For The Year Ended 31st December 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
8 Hopper Way |
Diss |
Norfolk |
IP22 4GT |
Rima UK Limited (Registered number: 04713781) |
Group Strategic Report |
For The Year Ended 31st December 2022 |
The directors present their strategic report of the company and the group for the year ended 31st December 2022. |
The UK Group comprises Rima UK Ltd and its subsidiary Sirca SA based in Romania. |
The principal activity of the worldwide Group is manufacturing agricultural and industrial components. Sales are made either direct by Sirca SA, in the UK by Rima UK Ltd or worldwide by the ultimate parent, Rima SpA, based in Italy. |
REVIEW OF BUSINESS |
Following the acquisition of Sirca SA in 2012, the Group is well placed to continue to develop and grow the business in the UK and overseas. |
During the year, the Worldwide Group strengthened its market position, retaining key account customers and continued to invest in property and plant in Romania. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Principal risks include the loss of key customers and increases in raw material costs that the Group might be unable to pass onto customers. |
To mitigate the risk associated with the loss of key customers, the Group continues to develop its customer base, not only in the UK but the rest of Europe and worldwide through Rima SpA. |
To mitigate the risk of rising raw material costs, the Group buys in certain raw materials, such as steel, when the price appears favourable. However, the current International instability following the war in Ukraine, Brexit, Covid and impending energy crisis somewhat limits this option. |
The group operates across a number of countries and its exposed to foreign exchange risk. To some extent, this is mitigated by transactions within the Group and with the ultimate parent, being denominated in Euros. |
The business is however, experiencing challenges with its customers as they are less receptive to price increases and prefer postponing or cancelling orders altogether due to cashflow constraints. While we face some uncertainty and are not naive about the negative impact this will potentially have on liquidity, earnings and operations, |
FINANCIAL KEY PERFORMANCE INDICATORS |
The main key performance indicators used by the directors to monitor the performance of the Group are, turnover, gross profit and operating profit. The directors monitor these ib a regular basis along with other operating information. |
In GBP | 2022 | 2021 | Var % |
Turnover | 8,043,801 | 5,995,558 | 34,16% |
Gross profit | 2,978,760 | 1,777,209 | 67.61% |
Gross profit % | 37.03% | 29.64% | 7.39% |
Operating profit | 1,629,413 | 524,848 | 210% |
Operating profit % | 20.26% | 8,75% | 11.51% |
ON BEHALF OF THE BOARD: |
Rima UK Limited (Registered number: 04713781) |
Report of the Directors |
For The Year Ended 31st December 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31st December 2022. |
DIVIDENDS |
An interim dividend of 1.35 per share was paid on 31st December 2022. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31st December 2022 will be £ 120,000 . |
FUTURE DEVELOPMENTS |
The Group is seeking further growth by increasing its customer base worldwide. It is looking to consolidate its position in Europe and develop new markets within EMEA (Europe, the Middle East and Africa). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st January 2022 to the date of this report. |
FINANCIAL INSTRUMENTS |
The Group's activities expose it to a number of risks, including credit risk, cash flow risk and liquidity risk. |
Cash flow risk |
Interest bearing assets and liabilities are, where possible, held at a fixed rate to ensure certainly of cash flows. The policy for mitigating the risks associated with foreign currency exchange is covered in the Strategic report. |
Credit risk |
The Group's financial assets are bank balances and cash, trade and other debtors, including amounts owed by the ultimate parent undertaking. The amounts presented in the balance sheet are net of allowances for doubtful debts, The credit risk on liquid funds is limited because the counterparts are banks with high credit ratings. The Group has no significant concentration of credit risk, other than amounts receivable from or payable to the ultimate parent undertaking. |
Liquidity risk |
In order to maintain liquidity to ensure funds are available for ongoing operations and future developments, the Group uses a mixture of long term and short term debt finance. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
Rima UK Limited (Registered number: 04713781) |
Report of the Directors |
For The Year Ended 31st December 2022 |
AUDITORS |
The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Rima UK Limited |
Opinion |
We have audited the financial statements of Rima UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31st December 2022 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
Rima UK Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
-We considered the risk of fraud through management override and in response, we incorporated |
testing of manual journal entries into our audit approach throughout the financial year. |
-We also considered the risk of fraud through assumptions and judgements used within accounting |
estimates and in response, reviewed and scrutinised these estimates in order to detect possible |
management bias. |
- We also considered the risk of fraud associated with the preparation of the financial statements and |
in response, tested the disclosures prepared against relevant supporting documentation. |
However, because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditor |
8 Hopper Way |
Diss |
Norfolk |
IP22 4GT |
Rima UK Limited (Registered number: 04713781) |
Consolidated Income Statement |
For The Year Ended 31st December 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 8,043,801 | 5,995,558 |
Cost of sales | 5,065,041 | 4,218,349 |
GROSS PROFIT | 2,978,760 | 1,777,209 |
Distribution costs | - | 240 |
Administrative expenses | 1,349,347 | 1,252,121 |
1,349,347 | 1,252,361 |
OPERATING PROFIT | 5 | 1,629,413 | 524,848 |
Exceptional items | 6 | - | 4,200 |
1,629,413 | 529,048 |
Income from fixed asset investments | 6,334 | 6,401 |
1,635,747 | 535,449 |
Interest payable and similar expenses | 7 | 43,890 | 52,812 |
PROFIT BEFORE TAXATION | 1,591,857 | 482,637 |
Tax on profit | 8 | 214,555 | 73,351 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,377,302 | 409,286 |
Rima UK Limited (Registered number: 04713781) |
Consolidated Other Comprehensive Income |
For The Year Ended 31st December 2022 |
2022 | 2021 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,377,302 | 409,286 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 1,377,302 | 409,286 |
Total comprehensive income attributable to: |
Owners of the parent | 1,377,302 | 409,286 |
Rima UK Limited (Registered number: 04713781) |
Consolidated Balance Sheet |
31st December 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | (696,234 | ) | (761,211 | ) |
Tangible assets | 12 | 4,935,223 | 5,148,136 |
Investments | 13 | - | - |
4,238,989 | 4,386,925 |
CURRENT ASSETS |
Stocks | 14 | 3,905,298 | 2,493,682 |
Debtors | 15 | 1,437,396 | 911,893 |
Cash at bank and in hand | 588,920 | 703,706 |
5,931,614 | 4,109,281 |
CREDITORS |
Amounts falling due within one year | 16 | 2,334,150 | 1,797,591 |
NET CURRENT ASSETS | 3,597,464 | 2,311,690 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 7,836,453 | 6,698,615 |
CREDITORS |
Amounts falling due after more than one year | 17 | (690,056 | ) | (808,789 | ) |
PROVISIONS FOR LIABILITIES | 20 | (3,262 | ) | (3,993 | ) |
NET ASSETS | 7,143,135 | 5,885,833 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 162,400 | 162,400 |
Revaluation reserve | 22 | 261,168 | 261,168 |
Retained earnings | 22 | 6,719,567 | 5,462,265 |
SHAREHOLDERS' FUNDS | 7,143,135 | 5,885,833 |
The financial statements were approved by the Board of Directors and authorised for issue on 30th September 2023 and were signed on its behalf by: |
C Salvi - Director |
Rima UK Limited (Registered number: 04713781) |
Company Balance Sheet |
31st December 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 17 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 121,029 | 167,104 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Rima UK Limited (Registered number: 04713781) |
Consolidated Statement of Changes in Equity |
For The Year Ended 31st December 2022 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st January 2021 | 162,400 | 5,312,113 | 261,168 | 5,735,681 |
Changes in equity |
Dividends | - | (259,134 | ) | - | (259,134 | ) |
Total comprehensive income | - | 409,286 | - | 409,286 |
Balance at 31st December 2021 | 162,400 | 5,462,265 | 261,168 | 5,885,833 |
Changes in equity |
Dividends | - | (120,000 | ) | - | (120,000 | ) |
Total comprehensive income | - | 1,377,302 | - | 1,377,302 |
Balance at 31st December 2022 | 162,400 | 6,719,567 | 261,168 | 7,143,135 |
Rima UK Limited (Registered number: 04713781) |
Company Statement of Changes in Equity |
For The Year Ended 31st December 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st January 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st December 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st December 2022 |
Rima UK Limited (Registered number: 04713781) |
Consolidated Cash Flow Statement |
For The Year Ended 31st December 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 717,173 | 1,160,447 |
Interest paid | (43,890 | ) | (52,705 | ) |
Interest element of hire purchase or finance lease rental payments paid |
- |
(107 |
) |
Tax paid | (114,692 | ) | 18,984 |
Net cash from operating activities | 558,591 | 1,126,619 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (643 | ) |
Purchase of tangible fixed assets | (471,083 | ) | (262,101 | ) |
Sale of tangible fixed assets | 95,955 | 71,990 |
Dividends received | 6,334 | 6,401 |
Net cash from investing activities | (368,794 | ) | (184,353 | ) |
Cash flows from financing activities |
Group loan repayments in year | (184,583 | ) | (678,377 | ) |
New group loans in year | - | (26,454 | ) |
Capital repayments in year | - | (4,755 | ) |
Equity dividends paid | (120,000 | ) | (259,134 | ) |
Net cash from financing activities | (304,583 | ) | (968,720 | ) |
Decrease in cash and cash equivalents | (114,786 | ) | (26,454 | ) |
Cash and cash equivalents at beginning of year | 2 | 703,706 | 730,160 |
Cash and cash equivalents at end of year | 2 | 588,920 | 703,706 |
Rima UK Limited (Registered number: 04713781) |
Notes to the Consolidated Cash Flow Statement |
For The Year Ended 31st December 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation | 1,591,857 | 482,637 |
Depreciation charges | 522,487 | 519,915 |
Loss on disposal of fixed assets | - | 2,481 |
Finance costs | 43,890 | 52,812 |
Finance income | (6,334 | ) | (6,401 | ) |
2,151,900 | 1,051,444 |
Increase in stocks | (1,411,616 | ) | (168,001 | ) |
Increase in trade and other debtors | (331,468 | ) | (12,434 | ) |
Increase in trade and other creditors | 308,357 | 289,438 |
Cash generated from operations | 717,173 | 1,160,447 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31st December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 588,920 | 703,706 |
Year ended 31st December 2021 |
31/12/21 | 1/1/21 |
£ | £ |
Cash and cash equivalents | 703,706 | 730,160 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/1/22 | Cash flow | At 31/12/22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 703,706 | (114,786 | ) | 588,920 |
703,706 | (114,786 | ) | 588,920 |
Debt |
Debts falling due within 1 year | (587,444 | ) | 13,712 | (573,732 | ) |
Debts falling due after 1 year | (799,973 | ) | 112,649 | (687,324 | ) |
(1,387,417 | ) | 126,361 | (1,261,056 | ) |
Total | (683,711 | ) | 11,575 | (672,136 | ) |
Rima UK Limited (Registered number: 04713781) |
Notes to the Consolidated Financial Statements |
For The Year Ended 31st December 2022 |
1. | STATUTORY INFORMATION |
Rima UK Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The Group financial statements are presented in Sterling (£), however the Group's functional currency is Euros. |
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment.and have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Critical accounting judgements and key sources of estimation uncertainty |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Key accounting estimates and assumptions |
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will by definition seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
Property valuations |
The Group carries its freehold property at fair value. The valuation of the Group's property is inherently subjective due to the nature and location of the property. As a result, the valuation is subject to a degree of uncertainty and are made on the basis which may not prove accurate. |
Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
Provisions |
The Group assesses the need for provisions for corporation tax, impairment of stocks and impairment of trade debtors in its financial statements which require management to make judgements. The judgements, estimates and associated assumptions necessary to calculate these provisions are based on historical experience and other reasonable factors. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover from the sale of goods is recognised when all of the following conditions are satisfied: |
- the Group has transferred the significant risks and rewards of ownership to the buyer; |
- the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of turnover can be measured reliably; |
- it is probable that the Group will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
Rima UK Limited (Registered number: 04713781) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31st December 2022 |
2. | ACCOUNTING POLICIES - continued |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixed assets in progress | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Rima UK Limited (Registered number: 04713781) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31st December 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other financial institutions, loans to and from related parties. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present fair value of the future cash flows and subsequently att amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received. However, if the arrangements of a short term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a a rate of interest that is not a market rate or in the case of an out-right short term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated income statement. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date. |
Creditors |
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2022 | 2021 |
£ | £ |
United Kingdom | 4,421,285 | 1,606,790 |
Europe | 3,622,516 | 4,300,992 |
Rest of the world | - | 87,776 |
8,043,801 | 5,995,558 |
4. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 1,254,171 | 1,008,266 |
Social security costs | 26,120 | 21,954 |
Other pension costs | 1,089 | 1,521 |
1,281,380 | 1,031,741 |
The average number of employees during the year was as follows: |
2022 | 2021 |
Management and administration | 19 | 8 |
Production | 78 | 87 |
The average number of employees by undertakings that were proportionately consolidated during the year was 90 (2021 - 85 ) . |
Rima UK Limited (Registered number: 04713781) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31st December 2022 |
4. | EMPLOYEES AND DIRECTORS - continued |
2022 | 2021 |
£ | £ |
Directors' remuneration | 122,900 | 39,900 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Depreciation - owned assets | 588,041 | 585,555 |
Loss on disposal of fixed assets | - | 2,481 |
Negative goodwill amortisation | (65,170 | ) | (65,170 | ) |
Patents and licences amortisation | 193 | 356 |
Auditors' remuneration | 10,500 | - |
Foreign exchange differences | (56,760 | ) | 78,556 |
Negative goodwill amortisation | 65,170 | (65,170 | ) |
Auditors' remuneration | 10,500 | 12,200 |
6. | EXCEPTIONAL ITEMS |
2022 | 2021 |
£ | £ |
Exceptional items | - | 4,200 |
During the year, the parent company received furlough claims from the government totalling £Nil (2021- £4,200) under the Coronavirus Job Retention Scheme. |
The sums assisted the company in paying for staff members who were put on temporary leave ("furlough") due to coronavirus (COVID-19) global pandemic and has been included under Exceptional Items. |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank loan interest | 43,890 | 52,705 |
Hire purchase | - | 107 |
43,890 | 52,812 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | 215,286 | 74,362 |
Deferred tax | (731 | ) | (1,011 | ) |
Tax on profit | 214,555 | 73,351 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
Rima UK Limited (Registered number: 04713781) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31st December 2022 |
10. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Ordinary shares of £1 each |
Interim | 120,000 | 259,134 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
Negative | and |
goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1st January 2022 | (1,477,763 | ) | 24,277 | (1,453,486 | ) |
Disposals | - | (346 | ) | (346 | ) |
At 31st December 2022 | (1,477,763 | ) | 23,931 | (1,453,832 | ) |
AMORTISATION |
At 1st January 2022 | (715,711 | ) | 23,436 | (692,275 | ) |
Amortisation for year | (65,170 | ) | 193 | (64,977 | ) |
Eliminated on disposal | - | (346 | ) | (346 | ) |
At 31st December 2022 | (780,881 | ) | 23,283 | (757,598 | ) |
NET BOOK VALUE |
At 31st December 2022 | (696,882 | ) | 648 | (696,234 | ) |
At 31st December 2021 | (762,052 | ) | 841 | (761,211 | ) |
12. | TANGIBLE FIXED ASSETS |
Group |
Fixed |
Freehold | Short | Plant and | assets in |
property | leasehold | machinery | progress | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st January 2022 | 2,770,397 | 15,577 | 6,218,772 | 167,732 | 9,172,478 |
Additions | - | - | 97,135 | 373,948 | 471,083 |
Disposals | - | - | (90,860 | ) | (95,955 | ) | (186,815 | ) |
At 31st December 2022 | 2,770,397 | 15,577 | 6,225,047 | 445,725 | 9,456,746 |
DEPRECIATION |
At 1st January 2022 | 215,508 | 12,087 | 3,799,440 | (2,693 | ) | 4,024,342 |
Charge for year | 97,785 | 306 | 489,950 | - | 588,041 |
Eliminated on disposal | - | - | (90,860 | ) | - | (90,860 | ) |
At 31st December 2022 | 313,293 | 12,393 | 4,198,530 | (2,693 | ) | 4,521,523 |
NET BOOK VALUE |
At 31st December 2022 | 2,457,104 | 3,184 | 2,026,517 | 448,418 | 4,935,223 |
At 31st December 2021 | 2,554,889 | 3,490 | 2,419,332 | 170,425 | 5,148,136 |
Rima UK Limited (Registered number: 04713781) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31st December 2022 |
12. | TANGIBLE FIXED ASSETS - continued |
Company |
Short | Plant and |
leasehold | machinery | Totals |
£ | £ | £ |
COST |
At 1st January 2022 |
Additions |
At 31st December 2022 |
DEPRECIATION |
At 1st January 2022 |
Charge for year |
At 31st December 2022 |
NET BOOK VALUE |
At 31st December 2022 |
At 31st December 2021 |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st January 2022 |
and 31st December 2022 |
NET BOOK VALUE |
At 31st December 2022 |
At 31st December 2021 |
14. | STOCKS |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Stocks | 3,905,298 | 2,493,682 |
The difference between purchase price or production cost of stocks and their replacement cost is not material. |
Stock is recognised in cost of sales during the year as an expense was £3,699,910 (2021 - £3,044,075) for the Group and £1,490,801 (2021 - £1,224,626) for the Company. |
Rima UK Limited (Registered number: 04713781) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31st December 2022 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade debtors | 927,843 | 538,465 |
Amounts owed by group undertakings | 477,332 | 283,297 |
Other debtors | 3,900 | 64,962 |
Prepayments | 28,321 | 25,169 |
1,437,396 | 911,893 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 573,732 | 587,444 |
Trade creditors | 856,985 | 839,434 |
Bills of exchange payable | 4,974 | 1,984 |
Amounts owed to group undertakings | 197,455 | 65,209 |
Corporation tax | 167,725 | 67,131 |
Social security and other taxes | 46,343 | 26,632 |
Net wages | 4,120 | 5,712 | 4,120 | 5,712 |
VAT | 72,019 | 55,737 | 125,432 | 94,717 |
Other creditors | 270,947 | 97,947 |
Pension fund | 1,018 | 1,269 | 1,018 | 1,269 |
Accrued expenses | 138,832 | 49,092 |
2,334,150 | 1,797,591 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans (see note 18) | 648,438 | 751,540 |
Other loans (see note 18) | 38,886 | 48,433 |
Other creditors | 2,732 | 8,816 |
690,056 | 808,789 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Amounts falling due within one year or on demand: |
Bank loans | 573,732 | 587,444 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years | 648,438 | 751,540 |
Other loans - 1-2 years | 38,886 | 48,433 | 38,886 |
687,324 | 799,973 |
In 2020, the parent company obtained a bank loan under the UK Coronavirus Bounce Back Loan Scheme. The annual interest for the first 12 months is in effect 0%. Thereafter, interest is charged at 2.5% per annum above the Bank of England base rate. |
Rima UK Limited (Registered number: 04713781) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31st December 2022 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2022 | 2021 |
£ | £ |
Bank loans | 1,222,170 | 1,338,984 |
Amounts included in bank loans of £1,222,170 (2021 - £1,338,984) are secured on the property owned by Sirca SA. |
Obligations under finance leases and hire purchase contracts are secured on related assets. |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Deferred tax | 3,262 | 3,993 | 3,262 | 3,993 |
Group |
Deferred |
tax |
£ |
Balance at 1st January 2022 | 3,993 |
Utilised during year | (731 | ) |
Balance at 31st December 2022 | 3,262 |
Company |
Deferred |
tax |
£ |
Balance at 1st January 2022 |
Provided during year | ( |
) |
Balance at 31st December 2022 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 162,400 | 162,400 |
22. | RESERVES |
Group |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1st January 2022 | 5,462,265 | 261,168 | 5,723,433 |
Profit for the year | 1,377,302 | 1,377,302 |
Dividends | (120,000 | ) | (120,000 | ) |
At 31st December 2022 | 6,719,567 | 261,168 | 6,980,735 |
Rima UK Limited (Registered number: 04713781) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31st December 2022 |
22. | RESERVES - continued |
Revaluation reserve |
The surplus or deficit arising on historical valuations of company assets, less associated deferred tax. |
Profit and loss account |
The profit and loss account includes all current and prior period retained profits and losses. |
23. | ULTIMATE PARENT COMPANY |
Rima SpA (incorporated in Italy ) is regarded by the directors as being the company's ultimate parent company. |
The ultimate controlling parties are Mr. R Faganelli, Mr. A Monfardini and Mr G Zonta by virtue of their shareholdings in Rima SpA. |
24. | RELATED PARTY DISCLOSURES |
Transactions with related parties during the year were as follows: |
2022 | 2021 |
£ | £ |
Purchase of stock for resale from Rima SpA | 273,954 | 137,850 |
Sales to Rima SpA | 2,347,451 | 53,775 |
Amounts due from Rima SpA | 85,209 | 25,332 |
Amounts due to Rima SpA | 139,482 | 15,260 |
Rima SpA holds 162,397 of the 162,400 issued ordinary shares of Rima UK Limited. |
Three of the directors of Rima SpA, A Monfardini, R Faganelli and G Zonta, are also directors of Rima UK Limited. |
The Company has taken advantage of the exception made available under FRS 102 paragraph 33.1A not to disclose the transactions between wholly owned members of a Group. |