Company Registration No. 08287128 (England and Wales)
RRH PROPERTY LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
RRH PROPERTY LIMITED
COMPANY INFORMATION
Directors
Mr A Reed
Mr T Reed
Mrs S Young
Company number
08287128
Registered office
The Old Brickworks
Broadway
Market Lavington
DEVIZES
Wiltshire
SN10 5RH
Auditor
Old Mill Audit Limited
Unit 2
Greenways Business Park
Bellinger Close
CHIPPENHAM
Wiltshire
England
SN15 1BN
Bankers
Barclays Bank
Leicester Servicing Centre
LEICESTER
LE87 2BB
Solicitors
Parker Bullen LLP
45 Castle Street
SALISBURY
Wiltshire
SP1 3SS
RRH PROPERTY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group profit and loss account
8
Company profit and loss account
9
Consolidated statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
RRH PROPERTY LIMITED
CONTENTS
Consolidated statement of cash flows
15
Notes to the financial statements
16 - 38
RRH PROPERTY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Fair review of the business

The directors consider the result for the year to continue to be positive.

 

Turnover in the year increased by 55% to £20.6m, and gross profit margin increased by 2.9% to 21.4%. This performance represents an excellent result given the nature of the market in which we operate.

Principal risks and uncertainties

The main risks are as follows:

 

1. A crash in the construction industry would reduce machinery hire and sales rapidly.

 

2. We are always reliant on market needs for machinery hire, however an increasing amount of our contracts are more long term in nature, reducing our exposure to this risk.

 

3. The directors have considered the risk of Brexit to the entity and have taken appropriate steps to mitigate their exposure to it.​

Key performance indicators

The Group key financial and other performance indicators during the year were as follows:

 

     Unit     2023     2022

 

Turnover                    £'000        20,602        13,309

 

Gross Profit                £'000         4,400         2,464

 

Gross Profit Margin                 %         21.4         18.5

 

Administrative expenses            £'000         1,586         1,255

    

Profit/(Loss) before tax            £'000         2,955         1,128

 

Net Assets                £'000         7,377         5,209

 

 

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

 

     Unit     2023     2022

 

Turnover                    £'000        Nil        Nil

 

Administrative expenses            £'000        58        22

 

Other operating income             £'000        195        73

 

Profit/(Loss) before tax            £'000        237        196

 

Net Assets                £'000        813        765

RRH PROPERTY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

By order of the board

Mr T Reed
Secretary
3 November 2023
RRH PROPERTY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company and group continued to be that of the provision of services, including sales, repairs and hire, relating to a wide range of construction and agricultural services.

Directors

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

Mr A Reed
Mr T Reed
Mrs S Young
Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £172,160. The directors do not recommend payment of a further dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

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

The company negotiates purchases with suppliers prior to contracts being drawn in order to finance the purchase of stock and machinery at competitive prices.

 

The company is reliant on the continued support of it's creditors, however the Directors feel there is no risk of default and hence no liquidity risk. All steps are taken to ensure that new customers to the company are able to meet their commitment through the use of credit checks or by insistence on cash only transactions.

Objectives and policies

The ability to buy products competitively from reliable sources is the key to a successful business which is the constant objective of the company.

Auditor

In accordance with the company's articles, a resolution proposing that Old Mill Audit Limited be reappointed as auditor of the group will be put at a General Meeting.

RRH PROPERTY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
Statement of directors' responsibilities

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.

Strategic Report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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.

By order of the board
Mr T Reed
Secretary
3 November 2023
RRH PROPERTY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RRH PROPERTY LIMITED
- 5 -
Opinion

We have audited the financial statements of RRH Property Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 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 or 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 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:

RRH PROPERTY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RRH PROPERTY LIMITED
- 6 -
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 gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

RRH PROPERTY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RRH PROPERTY LIMITED
- 7 -

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. In particular, compliance was reviewed for the company's compliance with Health and Safety regulations and various accreditations (including CHAS, SSIP, Constructionline, ISO and Avetta) as these are essential & beneficial to the trade. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://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.

Tim Lerwill BSc BFP FCA (Senior Statutory Auditor)
for and on behalf of Old Mill Audit Limited
8 November 2023
Statutory Auditor
Unit 2
Greenways Business Park
Bellinger Close
CHIPPENHAM
Wiltshire
England
SN15 1BN
RRH PROPERTY LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
20,602,003
13,309,230
Cost of sales
(16,202,357)
(10,844,739)
Gross profit
4,399,646
2,464,491
Administrative expenses
(1,586,094)
(1,254,979)
Other operating income
141,122
2,913
Operating profit
4
2,954,674
1,212,425
Interest payable and similar expenses
8
(151,454)
(84,772)
Profit before taxation
2,803,220
1,127,653
Tax on profit
9
(462,680)
(445,919)
Profit for the financial year
2,340,540
681,734
Profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

RRH PROPERTY LIMITED
COMPANY PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
£
£
Administrative expenses
(57,745)
(21,834)
Other operating income
194,735
73,233
Operating profit
136,990
51,399
Interest receivable and similar income
171,260
167,820
Interest payable and similar expenses
(71,235)
(22,783)
Profit before taxation
237,015
196,436
Tax on profit
(17,184)
(33,856)
Profit for the financial year
219,831
162,580
RRH PROPERTY LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
2023
2022
£
£
Profit for the year
2,340,540
681,734
Other comprehensive income
-
-
Total comprehensive income for the year
2,340,540
681,734
Total comprehensive income for the year is all attributable to the owners of the parent company.
RRH PROPERTY LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
10,942,331
8,722,742
Current assets
Stocks
15
1,270,095
1,149,714
Debtors
16
4,152,369
2,261,315
Cash at bank and in hand
628,041
295,186
6,050,505
3,706,215
Creditors: amounts falling due within one year
17
(4,290,051)
(3,287,302)
Net current assets
1,760,454
418,913
Total assets less current liabilities
12,702,785
9,141,655
Creditors: amounts falling due after more than one year
18
(3,484,145)
(2,584,490)
Provisions for liabilities
Deferred tax liability
21
1,841,449
1,348,354
(1,841,449)
(1,348,354)
Net assets
7,377,191
5,208,811
Capital and reserves
Called up share capital
23
170,200
170,200
Revaluation reserve
457,153
457,153
Profit and loss reserves
6,749,838
4,581,458
Equity attributable to owners of the parent company
7,377,191
5,208,811
The financial statements were approved by the board of directors and authorised for issue on 3 November 2023 and are signed on its behalf by:
03 November 2023
Mr A Reed
Mr T Reed
Director
Director
RRH PROPERTY LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,780,741
2,786,617
Investments
13
200
200
2,780,941
2,786,817
Current assets
Debtors
16
32,572
16,152
Cash at bank and in hand
21,885
9,908
54,457
26,060
Creditors: amounts falling due within one year
17
(607,142)
(587,188)
Net current liabilities
(552,685)
(561,128)
Total assets less current liabilities
2,228,256
2,225,689
Creditors: amounts falling due after more than one year
18
(1,286,545)
(1,348,833)
Provisions for liabilities
Deferred tax liability
21
128,626
111,442
(128,626)
(111,442)
Net assets
813,085
765,414
Capital and reserves
Called up share capital
23
170,200
170,200
Revaluation reserve
457,153
457,153
Profit and loss reserves
185,732
138,061
Total equity
813,085
765,414

 

The financial statements were approved by the board of directors and authorised for issue on 3 November 2023 and are signed on its behalf by:
03 November 2023
Mr A Reed
Mr T Reed
Director
Director
Company registration number 08287128 (England and Wales)
RRH PROPERTY LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
170,200
457,153
4,079,494
4,706,847
Period ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
681,734
681,734
Dividends
10
-
-
(179,770)
(179,770)
Balance at 31 March 2022
170,200
457,153
4,581,458
5,208,811
Period ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
2,340,538
2,340,538
Dividends
10
-
-
(172,160)
(172,160)
Balance at 31 March 2023
170,200
457,153
6,749,836
7,377,189
RRH PROPERTY LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
170,200
457,153
155,251
782,604
Period ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
162,580
162,580
Dividends
10
-
-
(179,770)
(179,770)
Balance at 31 March 2022
170,200
457,153
138,061
765,414
Period ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
219,831
219,831
Dividends
10
-
-
(172,160)
(172,160)
Balance at 31 March 2023
170,200
457,153
185,732
813,085
RRH PROPERTY LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
2,535,542
1,719,608
Interest paid
(151,454)
(84,772)
Income taxes refunded/(paid)
153,806
(58,041)
Net cash inflow from operating activities
2,537,894
1,576,795
Investing activities
Purchase of tangible fixed assets
(3,764,822)
(1,989,199)
Proceeds from disposal of tangible fixed assets
691,262
392,791
Net cash used in investing activities
(3,073,560)
(1,596,408)
Financing activities
Repayment of borrowings
(187,220)
261,585
Repayment of bank loans
(145,291)
965,038
Payment of finance leases obligations
1,373,192
(1,458,608)
Dividends paid to equity shareholders
(172,160)
(179,770)
Net cash generated from/(used in) financing activities
868,521
(411,755)
Net increase/(decrease) in cash and cash equivalents
332,855
(431,368)
Cash and cash equivalents at beginning of year
295,186
726,554
Cash and cash equivalents at end of year
628,041
295,186
RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
1
Accounting policies
Company information

RRH Property Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Old Brickworks, Broadway, Market Lavington, DEVIZES, Wiltshire, SN10 5RH.

 

The group consists of RRH Property Limited and its subsidiary Reeds Construction & Engineering Limited, as shown in note 14.

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. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.2
Basis of consolidation

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.

The consolidated financial statements incorporate those of RRH Property Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 March 2023. 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.

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.

1.3
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.

RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.4
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.

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.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.5
Intangible fixed assets - goodwill

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. The original 2014 accounts show a sum of £210,000 and since then the accounts have been restated to reverse the previous revaluation. The remaining £10,000 has been amortised to nil and not revalued, the directors felt it prudent to do this as no formal valuation was carried out on the business in 2015.

1.6
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.

Plant and machinery is depreciated at 15% reducing balance with the exception of hire fleet assets with a net book value in excess of £20,000. Depreciation on hire fleet assets is charged at 10% reducing balance. Once hire fleet assets net book value drops below £20,000 these assets are transferred to plant and machinery and subsequently depreciated at 15% reducing balance.

 

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:

Land and buildings Freehold
Revalued on an annual basis
Land and buildings Leasehold
10% straight line
Plant and machinery
15% reducing balance
Hire fleet > £20,000
10% reducing balance
Computer equipment
25% reducing balance
Motor vehicles
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 recognised in the profit and loss account.

RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
1.7
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.

1.8
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.

1.9
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.

1.10
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.

RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
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, 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.

RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
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.

1.11
Equity instruments

Equity instruments issued by the group 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 group.

1.12
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.

 

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of the timing difference. Deferred tax relating to non-depreciable property measured using the revaluation model and investment property is measured using the tax rates and allowances that would apply to sale of the asset

RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 22 -
1.13
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.

1.14
Retirement benefits

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

1.15
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.

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.

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 assets are consumed.

1.16

Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Doubtful debts

The directors have reviewed all significant debts on a case by case basis and have made a provision for doubtful debts based upon their knowledge of both the specific customer and the current economic conditions within the industry.

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.

Depreciation

The directors use their knowledge of the business and the industry to estimate the useful life and residual value of property, plant and equipment in order to arrive at applicable depreciation rates. In accordance with section 17 of FRS 102, the directors review and update these estimates if there are indicators that current estimates should change.

 

Assets classified as hire fleet with a value in excess of £20,000 are depreciated at a rate of 10% on a reducing balance basis and adjusted as appropriate to reflect the asset's net realisable value at the year end.

 

There is inherent uncertainty within these estimates as factors such as unexpected wear and tear, technological advancement and changes in market prices may result in future changes to the appropriate rate of depreciation. The carrying value of property, plant and equipment at the year end is set out in the notes to these financial statements.

RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Repairs and maintenance sales
1,445,402
1,471,524
Machinery sales
6,506,147
4,940,486
Plant hire
12,650,454
6,897,220
20,602,003
13,309,230
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
20,561,003
13,068,399
Europe
41,000
240,831
20,602,003
13,309,230
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
332,433
256,731
Depreciation of tangible fixed assets held under finance leases
558,358
456,665
Profit on disposal of tangible fixed assets
(36,820)
(33,033)
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,086
2,950
Audit of the financial statements of the company's subsidiaries
11,988
6,250
17,074
9,200
RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administrative staff
27
24
3
3
Drivers
36
30
-
-
Total
63
54
3
3

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,729,838
2,893,647
-
0
-
0
Social security costs
303,250
215,323
-
-
Pension costs
155,379
139,040
-
0
-
0
3,188,467
3,248,010
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
244,200
27,120
Company pension contributions to defined contribution schemes
75,594
67,395
319,794
94,515
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
72,300
9,140
Company pension contributions to defined contribution schemes
8,169
36,000

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3)

RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
10,746
1
Other interest on financial liabilities
71,235
22,783
81,981
22,784
Other finance costs:
Interest on finance leases and hire purchase contracts
67,314
59,667
Other interest
2,159
2,321
Total finance costs
151,454
84,772
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(123,391)
Adjustments in respect of prior periods
(30,415)
-
0
Total current tax
(30,415)
(123,391)
Deferred tax
Origination and reversal of timing differences
493,095
569,310
Total tax charge
462,680
445,919
RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Taxation
(Continued)
- 27 -

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

2023
2022
£
£
Profit before taxation
2,803,220
1,127,653
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
532,612
214,254
Tax effect of expenses that are not deductible in determining taxable profit
486
3,013
Depreciation on assets not qualifying for tax allowances
180
435
Other non-reversing timing differences
4,124
26,747
Under/(over) provided in prior years
(30,413)
-
0
Uplift relating to enhanced allowances
(187,843)
(95,390)
Deferred tax adjustments in relation to change in rates
104,960
296,860
38,574
-
0
Taxation charge
462,680
445,919
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
172,160
179,770
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
10,000
Amortisation and impairment
At 1 April 2022 and 31 March 2023
10,000
Carrying amount
At 31 March 2023
-
0
At 31 March 2022
-
0
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
12
Tangible fixed assets
Group
Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Hire fleet > £20,000
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 April 2022
2,835,021
39,204
753,312
6,693,954
58,877
1,050,631
11,430,999
Additions
201
74,291
83,285
3,357,772
8,243
241,030
3,764,822
Disposals
-
0
-
0
(62,368)
(957,562)
-
0
(75,143)
(1,095,073)
Transfers
-
0
-
0
25,922
(25,922)
-
0
-
0
-
0
At 31 March 2023
2,835,222
113,495
800,151
9,068,242
67,120
1,216,518
14,100,748
Depreciation and impairment
At 1 April 2022
48,404
34,234
432,838
1,748,153
37,920
406,708
2,708,257
Depreciation charged in the year
6,077
5,932
56,163
633,385
6,808
182,426
890,791
Eliminated in respect of disposals
-
0
-
0
(34,882)
(352,513)
-
0
(53,236)
(440,631)
Transfers
-
0
-
0
4,925
(4,925)
-
0
-
0
-
0
At 31 March 2023
54,481
40,166
459,044
2,024,100
44,728
535,898
3,158,417
Carrying amount
At 31 March 2023
2,780,741
73,329
341,107
7,044,142
22,392
680,620
10,942,331
At 31 March 2022
2,786,617
4,970
320,474
4,945,801
20,957
643,923
8,722,742
RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
Company
Land and buildings Freehold
£
Cost or valuation
At 1 April 2022
2,835,021
Additions
201
At 31 March 2023
2,835,222
Depreciation and impairment
At 1 April 2022
48,404
Depreciation charged in the year
6,077
At 31 March 2023
54,481
Carrying amount
At 31 March 2023
2,780,741
At 31 March 2022
2,786,617

The carrying value of land and buildings comprises:

Group
Company
2023
2022
2023
2022
£
£
£
£
Freehold
2,780,741
2,718,247
2,780,741
2,718,247

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
2023
2022
2023
2022
£
£
£
£
Hire fleet > £20,000
5,452,140
3,636,511
-
0
-
0
Motor vehicles
350,960
338,186
-
0
-
0
5,803,100
3,974,697
-
-
Depreciation charge for the year in respect of leased assets
558,358
456,665
-
-
RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
12
Tangible fixed assets
(Continued)
- 30 -

Freehold Land and buildings were independently valued at 27 August 2021 by Savills Chartered Valuation Surveyors, who are independent of the company and have experience of valuing similar properties. The valuation as at 27 August 2021 was deemed by the directors to be reflective at 31 March 2023.

Group
Company
2023
2022
2023
2022
£
£
£
£
Cost
2,378,068
2,377,868
2,378,068
2,377,868
Accumulated depreciation
54,481
48,404
54,481
48,404
Carrying value
2,323,587
2,329,464
2,323,587
2,329,464
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
200
200
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
200
Carrying amount
At 31 March 2023
200
At 31 March 2022
200
RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Reeds Construction & Engineering Limited
The Old Brickworks Broadway, Market Lavington, Devizes, Wiltshire, England, SN10 5RH UK
Ordinary A, B, C and D Shares
100.00

The investments in subsidiaries are all stated at cost.

The amount of dividends received from the subsidiaries totalled £117,260 (2022: £167,820).

15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
806,733
563,863
-
-
Finished goods and goods for resale
463,362
585,851
-
0
-
0
1,270,095
1,149,714
-
-
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,796,415
1,602,389
22,612
8,000
Corporation tax recoverable
-
0
123,391
-
0
-
0
Other debtors
198,357
26,968
9,210
-
0
Prepayments and accrued income
157,597
508,567
750
8,152
4,152,369
2,261,315
32,572
16,152
RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
136,959
169,962
86,959
111,629
Obligations under finance leases
20
1,256,803
895,554
-
0
-
0
Other borrowings
19
74,365
261,585
-
0
-
0
Trade creditors
2,002,963
1,714,789
13,748
4,630
Amounts owed to group undertakings
-
0
-
0
471,960
455,054
Other taxation and social security
86,665
68,232
5,984
275
Liability for share based payments
10,500
8,000
10,500
8,000
Other creditors
9,733
2,137
9,363
1,900
Accruals and deferred income
712,063
167,043
8,628
5,700
4,290,051
3,287,302
607,142
587,188

Creditors amounts falling due within one year includes £1,393,762 (2022 - £1,065,516), on which security has been given.

18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
1,428,212
1,540,500
1,286,545
1,348,833
Obligations under finance leases
20
2,055,933
1,043,990
-
0
-
0
3,484,145
2,584,490
1,286,545
1,348,833

At the year end the loan and overdraft balances in RRH Property Limited are secured by a cross guarantee across the group and by a legal charge over the freehold land and property in RRH Property Limited.

In addition to this, the loan and overdraft balances in Reeds Construction & Engineering Limited are secured by the government as the company took out a Coronavirus Business Interruption Loan in the period.

 

During the year, the following security over Reeds Construction & Engineering Limited has been satisfied: "an unlimited debenture and a first legal charge of £600,000 over the residential property belonging to the director Mr A Reed." Thus the company is no longer subject to this charge.

 

The obligations under finance leases are secured against the assets to which they relate.

Amounts included above which fall due after five years are as follows:
Payable by instalments
916,694
902,320
916,694
902,320
RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 33 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,565,171
1,710,462
1,373,504
1,460,462
Other loans
74,365
261,585
-
0
-
0
1,639,536
1,972,047
1,373,504
1,460,462
Payable within one year
211,324
431,547
86,959
111,629
Payable after one year
1,428,212
1,540,500
1,286,545
1,348,833

Loan terms agreed on the bank loan in August 2020 state floating rate of interest and is repayable in equal monthly instalments over 60 months commencing after the end of a capital repayment holiday of 12 months from the date of drawdown. No restrictions are imposed on the entity.

 

The bank loan advanced during 2015/16 has a fixed rate of interest at 2.5% over base and is repayable in equal instalments over 15 years. No restrictions are imposed on the entity. At the year end, the total loan outstanding amounts to £410,403.

 

 

Other loans relate to external finance provided for stock purchases and are expected to be repaid within 12 months.

 

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
1,256,803
895,554
-
0
-
0
In two to five years
2,055,933
1,043,990
-
0
-
0
3,312,736
1,939,544
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is five years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. A commercial rate of interest is charged on each hire purchase agreement.

 

Assets held on hire purchase agreements are secured on the asset to which they relate.

RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 34 -
21
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
ACAs
2,146,129
1,412,884
Tax losses
(4,159)
(23,198)
Revaluations
(300,521)
(38,574)
Retirement benefit obligations
-
(2,758)
1,841,449
1,348,354
Liabilities
Liabilities
2023
2022
Company
£
£
ACAs
132,785
134,640
Tax losses
(4,159)
(23,198)
128,626
111,442
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
1,348,354
111,442
Charge to profit or loss
493,095
(17,184)
Liability at 31 March 2023
1,841,449
128,626

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 35 -
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit and loss in respect of defined contribution schemes
155,379
139,040

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 £24,773 (2022 - £17,613) were payable to the scheme at the end of the year and are included in creditors due within one year.

23
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
24 Ordinary A of £1 each
24
24
24 Ordinary B of £1 each
24
24
130 Ordinary C of £1 each
130
130
2 Ordinary D of £1 each
2
2
10 Ordinary E of £1 each
10
10
10 Ordinary G of £1 each
10
10
200
200
Preference share capital
Issued and fully paid
170,000 Class 1 of £1 each
170,000
170,000
Preference shares classified as equity
170,000
170,000
Total equity share capital
170,200
170,200

Redeemable preference shares

 

The preference shares are redeemable at the option of the company. They are redeemable at £1 per share and carry no voting rights.

 

Ordinary shares

 

Ordinary 'A', 'B', 'C', 'D', 'E', 'F' and 'G' shares rank Pari Passu and have full voting rights, rights to dividends and rights to proceeds on winding up of the company.

 

All shares in the company are classed as equity shares.

RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 36 -
24
Operating lease commitments

The below commitments include operating leases on rental property used by the group. The agreements contain fixed charges payable by the company.

 

The lease payments during the year outside of the group totalled £10,401 with a further £72,000 being charged by the parent to its subsidiary Reeds Construction & Engineering Limited.

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
2023
2022
2023
2022
£
£
£
£
Within one year
15,162
10,401
-
-
Between two and five years
27,757
-
-
-
42,919
10,401
-
-
RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 37 -
25
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
345,900
94,598

Group

Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
2023
2022
£
£
Company
Entities over which the company has control, joint control or significant influence
72,000
72,000

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Company
Entities over which the company has control, joint control or significant influence
471,960
455,054

Sales of goods to related parties were made at the company's usual list price. Purchases were made at market price discounted to reflect the quantity of goods purchased and the relationships between the parties.

 

The amounts outstanding are unsecured and will be settled in cash.

26
Controlling party

RRH Property Limited is the Parent company of the RRH Property Limited Group.

 

The ultimate controlling party is Mr T Reed by virtue of his controlling shareholding in RRH Property Limited.

RRH PROPERTY LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 38 -
27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,340,540
681,734
Adjustments for:
Taxation charged
462,680
445,919
Finance costs
151,454
84,772
Gain on disposal of tangible fixed assets
(36,820)
(33,033)
Depreciation and impairment of tangible fixed assets
890,791
713,396
Movements in working capital:
Increase in stocks
(120,381)
(143,039)
(Increase)/decrease in debtors
(2,014,445)
209,128
Increase/(decrease) in creditors
861,723
(239,269)
Cash generated from operations
2,535,542
1,719,608
28
Analysis of changes in net debt - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
295,186
332,855
628,041
Borrowings excluding overdrafts
(1,972,047)
332,511
(1,639,536)
Obligations under finance leases
(1,939,544)
(1,373,192)
(3,312,736)
(3,616,405)
(707,826)
(4,324,231)
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