Draft Financial Statements at 06 October 2023 at 10:44:56
Company registration number 04206165 (England and Wales)
RHM (CUMBRIA) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
PAGES FOR FILING WITH REGISTRAR
Draft Financial Statements at 06 October 2023 at 10:45:04
RHM (CUMBRIA) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
Draft Financial Statements at 06 October 2023 at 10:45:04
RHM (CUMBRIA) LIMITED
BALANCE SHEET
AS AT
30 APRIL 2023
30 April 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
1,615,312
1,652,811
Investment property
6
510,000
510,000
2,125,312
2,162,811
Current assets
Stocks
21,500
21,500
Debtors
7
90,702
73,959
Cash at bank and in hand
167,060
163,966
279,262
259,425
Creditors: amounts falling due within one year
8
(610,838)
(798,972)
Net current liabilities
(331,576)
(539,547)
Total assets less current liabilities
1,793,736
1,623,264
Creditors: amounts falling due after more than one year
9
(389,651)
(407,830)
Provisions for liabilities
(12,983)
(14,169)
Net assets
1,391,102
1,201,265
Capital and reserves
Called up share capital
100
100
Revaluation reserve
10
223,714
223,714
Profit and loss reserves
1,167,288
977,451
Total equity
1,391,102
1,201,265
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 April 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Draft Financial Statements at 06 October 2023 at 10:45:04
RHM (CUMBRIA) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2023
30 April 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 5 October 2023 and are signed on its behalf by:
Mr R Bowman
Director
Company registration number 04206165 (England and Wales)
Draft Financial Statements at 06 October 2023 at 10:45:04
RHM (CUMBRIA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 3 -
1
Accounting policies
Company information
RHM (Cumbria) Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Old Police Station, Church Street, Ambleside, Cumbria, LA22 0BT. The principal place of business is The Warehouse, Burrowgate, Penrith, Cumbria, CA11 7TA.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 [XXXX].
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.
1.4
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.
Draft Financial Statements at 06 October 2023 at 10:45:04
RHM (CUMBRIA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 4 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
1% straight line
Leasehold land and buildings
4% straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Computers
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
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.
1.6
Impairment of fixed assets
At each reporting period end date, the company 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.
1.7
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.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Draft Financial Statements at 06 October 2023 at 10:45:04
RHM (CUMBRIA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 5 -
1.9
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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 company 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.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Draft Financial Statements at 06 October 2023 at 10:45:04
RHM (CUMBRIA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 6 -
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 when the company has 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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.14
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 company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
41
36
Draft Financial Statements at 06 October 2023 at 10:45:04
RHM (CUMBRIA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 7 -
4
Intangible fixed assets
Goodwill
£
Cost
At 1 May 2022 and 30 April 2023
25,000
Amortisation and impairment
At 1 May 2022 and 30 April 2023
25,000
Carrying amount
At 30 April 2023
At 30 April 2022
5
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
£
Cost
At 1 May 2022
1,310,380
672,196
613,566
94,462
16,146
2,706,750
Additions
3,498
760
1,634
5,892
At 30 April 2023
1,310,380
672,196
617,064
95,222
17,780
2,712,642
Depreciation and impairment
At 1 May 2022
389,874
558,038
90,369
15,658
1,053,939
Depreciation charged in the year
26,888
14,757
1,215
531
43,391
At 30 April 2023
416,762
572,795
91,584
16,189
1,097,330
Carrying amount
At 30 April 2023
1,310,380
255,434
44,269
3,638
1,591
1,615,312
At 30 April 2022
1,310,380
282,322
55,528
4,093
488
1,652,811
The company has elected to use a previous revaluation as the properties deemed cost removing the requirement for future revaluations.
The freehold property known as Mitre House was revalued externally by Mr R L Griffiths FRICS from SWH Surveys Limited on 31 August 2009. The property valuation at market value was £858,000. The directors have not revalued the other freehold properties of the company as they believe their market value is not materially different to the capitalised cost.
Draft Financial Statements at 06 October 2023 at 10:45:04
RHM (CUMBRIA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 8 -
6
Investment property
2023
£
Fair value
At 1 May 2022 and 30 April 2023
510,000
The freehold investment property is held at fair value as valued by the directors. They believe that the market value of the property is not materially different to the capitalised cost.
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,880
4,551
Other debtors
87,822
69,408
90,702
73,959
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
86,654
71,633
Trade creditors
58,076
52,565
Corporation tax
53,205
71,946
Other taxation and social security
62,383
53,679
Other creditors
350,520
549,149
610,838
798,972
Svenska Handelsbanken AB has a debenture dated 1 July 2008 holding fixed and floating charges over the undertaking and all property and assets present and future including goodwill, book debts, uncalled capital, buildings, fixtures, fixed plant & machinery.
Svenska Handelsbanken AB have two legal charges, one dated 1 July 2008 and the other dated 30 September 2008, over property of the company to secure liabilities to the Bank. Svenska Handelsbanken AB took a further charge out on 9 February 2021 over the properties owned by the company to secure further finances lent to the company.
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
389,651
407,830
Draft Financial Statements at 06 October 2023 at 10:45:04
RHM (CUMBRIA) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 9 -
10
Revaluation reserve
2023
2022
£
£
At the beginning and end of the year
223,714
223,714
11
Related party transactions
R.H.M. (Cumbria) Limited paid rent totalling £0 (2021: £0) during the year to Mr R Bowman & Mrs H Bowman for the use of the property from which R.H.M. (Cumbria) Limited trades.
The Terrace and Printrooms Limited, a company controlled by Mr MJ Bowman, owed the company £61634 (2022: £46674) at the reporting date.
The Terrace and Printrooms Limited was charged a fee for the use of the company assets totalling £0 (2022: £26223) during the year. There was a further charge for insurance totalling £0 (2021: £1,500) during the year.
The Terrace and Printrooms Limited charged the company a management fee during the year amounting to £5,621 (2021: £6,425 ).
A close family member to a company director was charged £0 (2022: £1000) for use of the company assets during the year.
No transactions with related parties were undertaken, other than disclosed in the notes, such as are required to be disclosed under the FRS102 Section 1A.
12
Directors' transactions
The directors were not advanced any amounts during the period.
2023-04-302022-05-01false05 October 2023CCH SoftwareCCH Accounts Production 2023.200No description of principal activityMrs H BowmanMr M J BowmanMr R BowmanMr M J Bowman042061652022-05-012023-04-30042061652023-04-30042061652022-04-3004206165core:LandBuildingscore:OwnedOrFreeholdAssets2023-04-3004206165core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-04-3004206165core:PlantMachinery2023-04-3004206165core:FurnitureFittings2023-04-3004206165core:ComputerEquipment2023-04-3004206165core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-3004206165core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-04-3004206165core:PlantMachinery2022-04-3004206165core:FurnitureFittings2022-04-3004206165core:ComputerEquipment2022-04-3004206165core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-3004206165core:CurrentFinancialInstrumentscore:WithinOneYear2022-04-3004206165core:Non-currentFinancialInstrumentscore:AfterOneYear2023-04-3004206165core:Non-currentFinancialInstrumentscore:AfterOneYear2022-04-3004206165core:CurrentFinancialInstruments2023-04-3004206165core:CurrentFinancialInstruments2022-04-3004206165core:ShareCapital2023-04-3004206165core:ShareCapital2022-04-3004206165core:RevaluationReserve2023-04-3004206165core:RevaluationReserve2022-04-3004206165core:RetainedEarningsAccumulatedLosses2023-04-3004206165core:RetainedEarningsAccumulatedLosses2022-04-3004206165bus:Director22022-05-012023-04-3004206165core:Goodwill2022-05-012023-04-3004206165core:LandBuildingscore:OwnedOrFreeholdAssets2022-05-012023-04-3004206165core:LandBuildingscore:LongLeaseholdAssets2022-05-012023-04-3004206165core:PlantMachinery2022-05-012023-04-3004206165core:FurnitureFittings2022-05-012023-04-3004206165core:ComputerEquipment2022-05-012023-04-30042061652021-05-012022-04-3004206165core:Goodwill2022-04-3004206165core:Goodwill2023-04-3004206165core:Goodwill2022-04-3004206165core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-3004206165core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-04-3004206165core:PlantMachinery2022-04-3004206165core:FurnitureFittings2022-04-3004206165core:ComputerEquipment2022-04-30042061652022-04-3004206165core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-05-012023-04-3004206165core:WithinOneYear2023-04-3004206165core:WithinOneYear2022-04-3004206165core:Non-currentFinancialInstruments2023-04-3004206165core:Non-currentFinancialInstruments2022-04-3004206165bus:PrivateLimitedCompanyLtd2022-05-012023-04-3004206165bus:SmallCompaniesRegimeForAccounts2022-05-012023-04-3004206165bus:FRS1022022-05-012023-04-3004206165bus:AuditExemptWithAccountantsReport2022-05-012023-04-3004206165bus:Director12022-05-012023-04-3004206165bus:Director32022-05-012023-04-3004206165bus:CompanySecretary12022-05-012023-04-3004206165bus:FullAccounts2022-05-012023-04-30xbrli:purexbrli:sharesiso4217:GBP