Company registration number 04972149 (England and Wales)
Redgate Holdings Limited
Unaudited financial statements
For the year ended 28 February 2023
Redgate Holdings Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 9
Redgate Holdings Limited
Statement of financial position
As at 28 February 2023
28 February 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
4,190,268
3,824,384
Investments
5
1,400
1,400
4,191,668
3,825,784
Current assets
Debtors
6
2,043,655
2,093,600
Cash at bank and in hand
562,317
746,963
2,605,972
2,840,563
Creditors: amounts falling due within one year
7
(2,112,247)
(2,027,454)
Net current assets
493,725
813,109
Total assets less current liabilities
4,685,393
4,638,893
Creditors: amounts falling due after more than one year
8
(1,302,252)
(1,431,373)
Provisions for liabilities
(374,917)
(289,352)
Net assets
3,008,224
2,918,168
Capital and reserves
Called up share capital
7
7
Revaluation reserve
9
406,965
417,964
Profit and loss reserves
2,601,252
2,500,197
Total equity
3,008,224
2,918,168
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 28 February 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.
Redgate Holdings Limited
Statement of financial position (continued)
As at 28 February 2023
28 February 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 13 November 2023 and are signed on its behalf by:
Mr T A Manley
Director
Company Registration No. 04972149
Redgate Holdings Limited
Notes to the financial statements
For the year ended 28 February 2023
- 3 -
1
Accounting policies
Company information
Redgate Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is Redgate Lane, West Gorton, Manchester, United Kingdom, M12 4RY.
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 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.
1.3
Intangible fixed assets - goodwill
Goodwill being the amount paid in connection with the acquisition of a business in 2007, was amortised over its estimated useful life until fully written down.
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.
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
2% on cost
Leasehold land and buildings
5% on cost
Plant and equipment
20% on cost
IT equipment
5% on cost
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
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
Impairment of fixed assets
Redgate Holdings Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
1
Accounting policies
(Continued)
- 4 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
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 statement of financial position 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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Redgate Holdings Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
1
Accounting policies
(Continued)
- 5 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.
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 income statement, 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.
1.9
Employee benefits
Short term employment benefits, including holiday pay are recognised as an expense in the income statement in the period in which they are incurred.
1.10
Retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.
1.11
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 statement of financial position 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.
1.12
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.
Redgate Holdings Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
46
44
3
Intangible fixed assets
Goodwill
£
Cost
At 1 March 2022 and 28 February 2023
86,750
Amortisation and impairment
At 1 March 2022 and 28 February 2023
86,750
Carrying amount
At 28 February 2023
At 28 February 2022
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 March 2022
2,336,718
4,835,794
7,172,512
Additions
1,126,314
1,126,314
Disposals
(97,702)
(97,702)
At 28 February 2023
2,336,718
5,864,406
8,201,124
Depreciation and impairment
At 1 March 2022
212,443
3,135,685
3,348,128
Depreciation charged in the year
19,952
711,446
731,398
Eliminated in respect of disposals
(68,670)
(68,670)
At 28 February 2023
232,395
3,778,461
4,010,856
Carrying amount
At 28 February 2023
2,104,323
2,085,945
4,190,268
At 28 February 2022
2,124,275
1,700,109
3,824,384
Redgate Holdings Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
4
Tangible fixed assets
(Continued)
- 7 -
Freehold buildings were valued on an open market basis on 2 November 2010 by Matthews & Goodman Property Advisers.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Freehold land and buildings
2023
2022
£
£
Cost
1,696,756
1,696,756
Accumulated depreciation
(156,880)
(142,881)
Carrying value
1,539,876
1,553,875
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
1,400
1,400
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,354,455
1,313,308
Other debtors
63,843
28,257
Prepayments and accrued income
625,357
752,035
2,043,655
2,093,600
Redgate Holdings Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
- 8 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
79,595
94,106
Obligations under finance leases
666,822
529,910
Trade creditors
933,668
1,037,363
Corporation tax
83,523
Other taxation and social security
245,013
131,144
Other creditors
62,205
70,721
Accruals and deferred income
124,944
80,687
2,112,247
2,027,454
Bank loans of £79,595 (2022:£94,106) due within one year are secured by a legal charge on the company's Land and Buildings.
Finance leases of £666,822 (2022:£529,910) due within one year are secured against the asset to which they relate.
8
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
822,337
901,990
Obligations under finance leases
479,915
529,383
1,302,252
1,431,373
Bank loans of £822,337 (2022:£901,990) due after more than one year are secured by a legal charge on the company's Land and Buildings.
Finance leases of £479,915 (2022:£529,383) due after more than one year are secured against the asset to which they relate.
Amounts included above which fall due after five years are as follows:
Payable by instalments
(503,957)
(583,610)
Redgate Holdings Limited
Notes to the financial statements (continued)
For the year ended 28 February 2023
- 9 -
9
Revaluation reserve
2023
2022
£
£
At the beginning of the year
417,964
428,963
Transfer to retained earnings
(10,999)
(10,999)
At the end of the year
406,965
417,964