Company registration number 07527610 (England and Wales)
RIPLEY GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
RIPLEY GROUP LIMITED
COMPANY INFORMATION
Directors
Mr O Ripley
Mr B Ripley
Mr J O Ripley
Mrs J Ripley
Mr M J Ripley
Mr S Ripley
Secretary
Mr S Ripley
Company number
07527610
Registered office
5 North Street
Hailsham
East Sussex
BN27 1DQ
Auditor
Plummer Parsons
4 Frederick Terrace
Frederick Place
Brighton
East Sussex
BN1 1AX
RIPLEY GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
7 -12
Income statement
10
Statement of comprehensive income
11
Group statement of financial position
12
Company statement of financial position
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 36
RIPLEY GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 1 -
The directors present the group strategic report for the year ended 31 March 2022.
Fair review of the business
The directors are pleased with the company’s performance in the year, achieved despite continuing challenges in the market. The company took steps during the year to move into new markets to offset these risks.
Following the year end the metal recycling industry overall experienced contraction in demand and falling prices arising from global trading conditions impacted by the war in Ukraine, rising fuel prices and disruptions in supply lines.
The company is taking positive steps to address this situation including pursuing new business opportunities and rationalising costs.
Principal risks and uncertainties
The directors have set below the principal risks facing the business of the group. A risk management process is applied involving review of all risks identified below, and processes implemented to monitor and mitigate such risks.
Key performance indicators
The Directors use a number of key indicators in assessing and driving performance. The key financial performances indicators used by the group are:
Mr S Ripley
Secretary
20 November 2023
RIPLEY GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
The group directors present their annual report and financial statements for the year ended 31 March 2022.
Principal activities
The principal activity of the company and group continued to be that of scrap metal recycling and export.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr O Ripley
Mr B Ripley
Mr J O Ripley
Mrs J Ripley
Mr M J Ripley
Mr S Ripley
Results and dividends
The results for the year are set out on page 10.
The directors recommend payment of an ordinary dividend amounting to £40,000.
The directors have chosen to include information in relation to the business review and future developments; principal risk and uncertainties within the strategic report in accordance with CA 2006 s414C(11).
Financial instruments
Treasury operations and financial instruments
The group uses financial instruments such as overdrafts, borrowings, cash and other liquid resources, and various other items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of this is to raise finance for the group's operations and manage currency risks, metal price risks, and interest rate risks arising from the group's activities and liabilities. The Directors review and agree policies for managing each of these risks which are summarised below:
Liquidity risk
The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest safely and profitably. Short term requirements are met by the overdraft facilities as well as borrowings.
Interest rate risk
The group is exposed to interest bearing liabilities. It uses interest received from bank deposits to manage its exposure to changes in interest rates.
Foreign currency risk
The group is exposed to translation and transaction foreign currency risks. The Directors believe that the majority of the translation risk and possible benefits associated with assets held in foreign currencies will over time offset each other. A substantial part of the group's sales are denominated in currencies other than sterling, accordingly these transactions exposures, including those associated with forecast transactions, are hedged using forward contracts.
Credit risk
The group seeks to manage the risk of customers defaulting through the use of customer acceptance thresholds, credit verification procedures and establishing credit limits. In addition, where appropriate, the group also uses payments in advance and credit insurance. Trade debtors are regularly monitored to make provisions for doubtful debts as necessary.
RIPLEY GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -
Metal price risk
The group is exposed to the movement in scrap metal prices. This risk is managed by constant price monitoring and purchasing appropriately to match the sales price.
Auditor
Plummer Parsons Accountants Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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 S Ripley
Director
20 November 2023
RIPLEY GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
- 4 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
On behalf of the board
Mr S Ripley
Director
20 November 2023
RIPLEY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RIPLEY GROUP LIMITED
- 5 -
Opinion
We have audited the financial statements of Ripley Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2022 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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.
We draw attention to note 16 to the financial statements which describes an ongoing dispute concerning a significant trade receivable balance. Our audit opinion is not modified in this respect.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our opinion is based upon our assessment of the events and conditions existing at the date of signing our report. We cannot however predict all future events and conditions which might arise which may be inconsistent with judgments which were considered reasonable at the time they were made. Our conclusion are therefore not a guarantee that the company will be able to continue in operation.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
RIPLEY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RIPLEY GROUP LIMITED
- 6 -
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
RIPLEY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RIPLEY GROUP LIMITED
- 7 -
Identifying and responding to risk of misstatement due to fraud:
To identify the potential risk of material misstatement due to fraud we assessed the conditions that could provide the opportunity and incentive to commit fraud. As required by auditing standards we performed procedures to address the of risk fraud arising through management override of internal controls, and the potential for bias in accounting estimates. The fraud risks identified were communicated to the audit team and remained alert to any indications of non-compliance throughout the audit
No further fraud risk were identified.
Identifying and responding to the risk of material misstatement due to non compliance with laws and regulations:
Based on our understanding of the group and industry, and through discussion with management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to the Companies Act 2006, the Scrap Metal Dealers Act 2013, health and safety, anti-bribery, anti-money laundering and employment law.
The group is subject to laws and regulations which are specific to the industry in which it operates. Non compliance with these operational regulations have the potential to materially effect amounts or disclosures in the financial statements, either through litigation, the imposition of financial penalties or withdrawal of the group's licence to operate. Auditing standards limit the audit procedures required to identify breaches with these laws and regulations to enquiry of the directors and management and inspection of correspondence, if any. If operational breaches are not disclosed to us or are not evident from a review of correspondence, the audit will not detect those breaches.
We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inappropriate journal entries to increase revenue or reduce expenditure, management bias in accounting estimates and judgmental areas.
RIPLEY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RIPLEY GROUP LIMITED
- 8 -
Audit response to risks identified:
The Audit procedures performed by the group engagement team in response to the identified risk of misstatement arising either through fraud or non compliance with laws and regulations, included the following:
Enquiring into instances of actual, suspected or alleged fraud;
Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations;
Obtaining written representations from directors and management confirming full disclosure to us of any breaches of laws and regulations which have the potential to materially effect amounts or disclosures in the financial statements;
Assessment of identified fraud risk factors;
Challenging assumptions and judgements made by management in its significance accounting estimates:
Identifying and testing journal entries, in particular journal entries posted to revenue, unusual account combinations, journals posted through suspense account and journals posted by unexpected users;
Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud;
Confirmation of related parties with management,
Review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business;
Using data analytics tools to identify any unusual or unexpected transaction that may indicate risks of material misstatement due to fraud;
Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions;
Verification of tangible assets susceptible to fraud or irregularity;
Review of bank statement to identify any indications of window dressing of the bank balances;
Third party confirmation of bank balances;
Confirming the accuracy of opening balances.
RIPLEY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RIPLEY GROUP LIMITED
- 9 -
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non compliance with regulations. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. We are not responsible the prevention of fraud or non-compliance and our audit cannot be expected to identify all non compliances with laws and regulations.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risk of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than that resulting from error, as fraud may involve collusion, forgery, intentional omission, misrepresentations or the override of internal control.
Obtaining an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the companys internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events of conditions that may cast significant doubt on the group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosure's are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the group’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 group’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 group and the group’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Steven Griffin FCA FCCA (Senior Statutory Auditor)
For and on behalf of Plummer Parsons Accountants Limited
20 November 2023
Chartered Accountants
Statutory Auditor
4 Frederick Terrace
Frederick Place
Brighton
East Sussex
BN1 1AX
RIPLEY GROUP LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
- 10 -
2022
2021
Notes
£
£
Revenue
3
63,613,327
48,995,893
Cost of sales
(58,163,861)
(44,402,856)
Gross profit
5,449,466
4,593,037
Administrative expenses
(4,268,667)
(4,309,013)
Other operating income
157,420
398,977
Operating profit
4
1,338,219
683,001
Finance costs
8
(228,824)
(135,979)
Profit before taxation
1,109,395
547,022
Tax on profit
9
(169,887)
(157,857)
Profit for the financial year
24
939,508
389,165
Profit for the financial year is all attributable to the owners of the parent company.
The income statement has been prepared on the basis that all operations are continuing operations.
RIPLEY GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
- 11 -
2022
2021
£
£
Profit for the year
939,508
389,165
Other comprehensive income
-
-
Total comprehensive income for the year
939,508
389,165
Total comprehensive income for the year is all attributable to the owners of the parent company.
RIPLEY GROUP LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2022
31 March 2022
- 12 -
2022
2021
Notes
£
£
£
£
Fixed assets
Property, plant and equipment
12
5,416,434
5,906,573
Current assets
Inventories
15
4,812,897
4,877,227
Trade and other receivables
16
9,396,111
5,786,997
Cash and cash equivalents
601,278
912,599
14,810,286
11,576,823
Current liabilities
17
(13,254,964)
(11,577,272)
Net current assets/(liabilities)
1,555,322
(449)
Total assets less current liabilities
6,971,756
5,906,124
Non-current liabilities
18
(1,003,333)
(847,434)
Provisions for liabilities
21
(372,962)
(362,737)
Net assets
5,595,461
4,695,953
Equity
Called up share capital
23
432
432
Retained earnings
24
5,595,029
4,695,521
Total equity
5,595,461
4,695,953
The financial statements were approved by the board of directors and authorised for issue on 20 November 2023 and are signed on its behalf by:
20 November 2023
Mr S Ripley
Director
RIPLEY GROUP LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
31 March 2022
- 13 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
13
232
232
Current assets
Cash and cash equivalents
200
200
Net current assets
200
200
Total assets less current liabilities
432
432
Equity
Called up share capital
23
432
432
As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £40,000 (2021 - £16,000 profit).
The financial statements were approved by the board of directors and authorised for issue on 20 November 2023 and are signed on its behalf by:
20 November 2023
Mr S Ripley
Director
Company Registration No. 07527610
RIPLEY GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 14 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 April 2020
432
4,322,356
4,322,788
Year ended 31 March 2021:
Profit and total comprehensive income
-
389,165
389,165
Dividends
10
-
(16,000)
(16,000)
Balance at 31 March 2021
432
4,695,521
4,695,953
Year ended 31 March 2022:
Profit and total comprehensive income
-
939,508
939,508
Dividends
10
-
(40,000)
(40,000)
Balance at 31 March 2022
432
5,595,029
5,595,461
RIPLEY GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 15 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 April 2020
432
432
Year ended 31 March 2021:
Profit and total comprehensive income for the year
-
16,000
16,000
Dividends
10
-
(16,000)
(16,000)
Balance at 31 March 2021
432
432
Year ended 31 March 2022:
Profit and total comprehensive income
-
40,000
40,000
Dividends
10
-
(40,000)
(40,000)
Balance at 31 March 2022
432
432
RIPLEY GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
- 16 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(216,025)
2,665,392
Interest paid
(228,824)
(135,979)
Income taxes refunded/(paid)
2,034
(42,425)
Net cash (outflow)/inflow from operating activities
(442,815)
2,486,988
Investing activities
Purchase of property, plant and equipment
(433,483)
(807,315)
Proceeds on disposal of property, plant and equipment
-
40,000
Net cash used in investing activities
(433,483)
(767,315)
Financing activities
Repayment of bank loans
(60,000)
(60,000)
Payment of finance leases obligations
326,856
(22,649)
Dividends paid to equity shareholders
(40,000)
(16,000)
Net cash generated from/(used in) financing activities
226,856
(98,649)
Net (decrease)/increase in cash and cash equivalents
(649,442)
1,621,024
Cash and cash equivalents at beginning of year
(2,669,649)
(4,290,673)
Cash and cash equivalents at end of year
(3,319,091)
(2,669,649)
Relating to:
Cash at bank and in hand
601,278
912,599
Bank overdrafts included in creditors payable within one year
(3,920,369)
(3,582,248)
RIPLEY GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
- 17 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Investing activities
Dividends received
40,000
16,000
Net cash generated from investing activities
40,000
16,000
Financing activities
Dividends paid to equity shareholders
(40,000)
(16,000)
Net cash used in financing activities
(40,000)
(16,000)
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
200
200
Cash and cash equivalents at end of year
200
200
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 18 -
1
Accounting policies
Company information
Ripley Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 5 North Street, Hailsham, East Sussex, BN27 1DQ.
The group consists of Ripley Group Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements are consolidated financial statements and 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 in full compliance with the requirements of FRS 102.
The financial statements are in full compliance with these regulations.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Ripley Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2022. 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.
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 19 -
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 statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the truegroup has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Revenue
Turnover represents amounts receivable for materials and services supplied net of VAT and trade discounts.
The turnover and profit/(loss) on ordinary activities before taxation is attributable to the purchasing, processing and sale of ferrous and non-ferrous scrap metal and associated activities.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life which is considered to be five years.
1.7
Property, plant and equipment
Property, plant and equipment 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
No depreciation
Leasehold improvements
10% straight line basis
Plant and equipment
10% straight line basis
Fixtures and fittings
25% straight line basis
Motor vehicles
20% straight line basis
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 income statement.
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 20 -
1.8
Non-current investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.9
Impairment of non-current 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.
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 21 -
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.
1.10
Inventories
Inventories 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 inventories to their present location and condition.
Inventories 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 inventories 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.
1.11
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.
1.12
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's statement of financial position 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.
Basic financial assets
Basic financial assets, which include trade and other receivables 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.
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 22 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 23 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
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.
1.14
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.15
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 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 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 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 if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.16
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 non-current 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.
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 24 -
1.17
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.18
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.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
1.19
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.
1.20
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
1.21
Provisions for liabilities
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events and where, it is more likely than not, an outflow of resources will be required to settle the obligation and the amount can be estimated reliably.
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.
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 25 -
3
Revenue
An analysis of the group's revenue is as follows:
2022
2021
£
£
Revenue analysed by class of business
Scrap and scrap related sales
63,613,327
48,995,893
2022
2021
£
£
Revenue analysed by geographical market
United Kingdom
41,251,739
26,372,329
Rest of the World
22,361,588
22,623,564
63,613,327
48,995,893
2022
2021
£
£
Other revenue
Grants received
45,420
350,977
4
Operating profit
2022
2021
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(231,884)
376,383
Government grants
(45,420)
(350,977)
Depreciation of owned property, plant and equipment
647,465
843,706
Depreciation of property, plant and equipment held under finance leases
276,157
266,918
Profit on disposal of property, plant and equipment
-
(40,000)
Operating lease charges
248,389
192,017
Exchange differences recognised in profit or loss during the year, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £231,884 (2021 - £376,383).
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
44,100
27,170
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 26 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Adminstration
42
40
-
-
Operational
52
50
-
-
Total
94
90
Their aggregate remuneration comprised:
Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
1,907,964
1,661,750
Social security costs
184,158
159,091
-
-
Pension costs
44,115
39,740
2,136,237
1,860,581
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
32,526
31,929
8
Finance costs
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
167,833
117,683
Other finance costs:
Interest on finance leases and hire purchase contracts
58,957
17,379
Other interest
2,034
917
Total finance costs
228,824
135,979
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
159,662
21,921
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
9
Taxation
2022
2021
£
£
(Continued)
- 27 -
Deferred tax
Origination and reversal of timing differences
10,225
135,936
Total tax charge
169,887
157,857
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:
2022
2021
£
£
Profit before taxation
1,109,395
547,022
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
210,785
103,934
Tax effect of expenses that are not deductible in determining taxable profit
12,714
8,008
Tax effect of income not taxable in determining taxable profit
(7,600)
Permanent capital allowances in excess of depreciation
44,204
25,385
Research and development tax credit
(30,389)
Tax losses utilised
(77,652)
(107,806)
Deferred tax adjustments
10,225
135,936
Taxation charge
169,887
157,857
10
Dividends
2022
2021
Recognised as distributions to equity holders:
£
£
Final paid
40,000
16,000
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2021 and 31 March 2022
1,000,000
Amortisation and impairment
At 1 April 2021 and 31 March 2022
1,000,000
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
11
Intangible fixed assets
(Continued)
- 28 -
Carrying amount
At 31 March 2022
At 31 March 2021
The company had no intangible fixed assets at 31 March 2022 or 31 March 2021.
12
Property, plant and equipment
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2021
1,169,135
3,201,726
6,399,627
296,017
1,017,484
12,083,989
Additions
25,438
352,799
55,246
433,483
At 31 March 2022
1,169,135
3,227,164
6,752,426
351,263
1,017,484
12,517,472
Depreciation and impairment
At 1 April 2021
70,217
1,139,917
3,821,343
230,988
914,951
6,177,416
Depreciation charged in the year
2,899
322,716
496,239
47,129
54,639
923,622
At 31 March 2022
73,116
1,462,633
4,317,582
278,117
969,590
7,101,038
Carrying amount
At 31 March 2022
1,096,019
1,764,531
2,434,844
73,146
47,894
5,416,434
At 31 March 2021
1,098,918
2,061,809
2,578,284
65,029
102,533
5,906,573
The company had no property, plant and equipment at 31 March 2022 or 31 March 2021.
The carrying value of land and buildings comprises:
Group
Company
2022
2021
2022
2021
£
£
£
£
Freehold
1,930,194
1,933,093
Short leasehold
3,529,062
4,123,618
5,459,256
6,056,711
-
-
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
12
Property, plant and equipment
(Continued)
- 29 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2022
2021
2022
2021
£
£
£
£
Plant and equipment
1,190,255
1,225,905
Motor vehicles
35,007
83,611
1,225,262
1,309,516
-
-
13
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
14
232
232
Movements in non-current investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2021 and 31 March 2022
232
Carrying amount
At 31 March 2022
232
At 31 March 2021
232
14
Subsidiaries
Details of the company's subsidiaries at 31 March 2022 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
C Gearing & Son Ltd
United Kingdom
Metal Recycling
Ordinary
-
100
H Ripley & Co Ltd
United Kingdom
Metal Recycling
Ordinary
100
-
Ripleys Auto Spares Ltd
United Kingdom
Metal Recycling
Ordinary
100
-
The subsidiaries listed above are included in these consolidated financial statements.
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 30 -
15
Inventories
Group
Company
2022
2021
2022
2021
£
£
£
£
Finished goods and goods for resale
4,812,897
4,877,227
16
Trade and other receivables
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade receivables
4,834,264
3,473,299
Corporation tax recoverable
124
Other receivables
3,447,529
1,851,152
Prepayments and accrued income
1,114,318
462,422
9,396,111
5,786,997
-
-
Included under trade receivables is an amount of £147,196 which is the subject of an ongoing legal dispute. The directors are confident that the dispute will be resolved in the company's favour and therefore consider that no provision is required for this amount.
17
Current liabilities
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
19
3,980,369
3,642,248
Obligations under finance leases
20
412,050
301,093
Trade payables
7,932,933
6,626,785
Corporation tax payable
205,817
44,245
Other taxation and social security
166,361
58,677
-
-
Other payables
418,788
709,230
Accruals and deferred income
138,646
194,994
13,254,964
11,577,272
18
Non-current liabilities
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
19
225,000
285,000
Obligations under finance leases
20
778,333
562,434
1,003,333
847,434
-
-
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
18
Non-current liabilities
(Continued)
- 31 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
45,000
-
-
19
Borrowings
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
285,000
345,000
Bank overdrafts
3,920,369
3,582,248
4,205,369
3,927,248
-
-
Payable within one year
3,980,369
3,642,248
Payable after one year
225,000
285,000
Bank loans and overdrafts are secured by fixed and floating charges over the assets of the company.
Finance lease obligations are secured on the underlying assets.
The bank loan is repayable over a period of 10 years. Interest is charged at a rate of of 3.71% p.a. fixed for the duration of the loan.
20
Finance lease obligations
Group
Company
2022
2021
2022
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
412,050
301,093
In two to five years
778,333
562,434
1,190,383
863,527
-
-
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 32 -
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
2022
2021
Group
£
£
Accelerated capital allowances
372,962
440,390
Tax losses
-
(77,653)
372,962
362,737
The company has no deferred tax assets or liabilities.
Group
Company
2022
2022
Movements in the year:
£
£
Liability at 1 April 2021
362,737
-
Charge to profit or loss
10,225
-
Liability at 31 March 2022
372,962
-
The deferred tax liability set out above is expected to reverse within the foreseeable future and relates to accelerated capital allowances that are expected to mature within the same period.
22
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
44,115
39,740
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.
23
Share capital
Group and company
2022
2021
Ordinary share capital
£
£
Issued and fully paid
432 Ordinary Shares of £1 each
432
432
The company has one class of ordinary shares in issue. The shares entitle the holder to vote at general meetings, and to participate fully in a distribution of assets in the event of a winding up, but have no right to fixed dividends.
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 33 -
24
Retained earnings
Group
Company
2022
2021
2022
2021
£
£
£
£
At the beginning of the year
4,695,521
4,322,356
-
-
Profit for the year
939,508
389,165
40,000
16,000
Dividends
(40,000)
(16,000)
(40,000)
(16,000)
At the end of the year
5,595,029
4,695,521
-
25
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
90,914
90,914
-
-
Between two and five years
48,417
131,417
-
-
139,331
222,331
-
-
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 34 -
26
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Purchases
2022
2021
2022
2021
£
£
£
£
Group
Other related parties
100,449
178,507
1,604,805
1,138,005
H. Ripley & Co (Partnership), is controlled by the director/shareholders of the parent company. The partnerships provides key management personnel services to the parent company.
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2022
2021
£
£
Group
Key management personnel
395,230
614,476
Other related parties
6,946
23,078
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2022
2022
2022
2021
Balance
Provision
Net
Balance
£
£
£
£
Group
Other related parties
3,434,844
64,000
3,370,844
1,982,129
27
Directors' transactions
Dividends totalling £40,000 (2021 - £16,000) were paid in the year in respect of shares held by the company's directors.
At the balance sheet date, an amount of £395,230 (2021: £614,476) was owed to the Directors of the Parent Company. The loans are interest free with no fixed date of repayment. The amounts are included within "Creditors: amounts falling due within one year", and form part of "Other creditors".
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 35 -
28
Cash (absorbed by)/generated from group operations
2022
2021
£
£
Profit for the year after tax
939,508
389,165
Adjustments for:
Taxation charged
169,887
157,857
Finance costs
228,824
135,979
Gain on disposal of property, plant and equipment
-
(40,000)
Depreciation and impairment of property, plant and equipment
923,622
1,110,624
Movements in working capital:
Decrease/(increase) in inventories
64,330
(733,887)
Increase in trade and other receivables
(3,609,238)
(191,241)
Increase in trade and other payables
1,067,042
1,836,895
Cash (absorbed by)/generated from operations
(216,025)
2,665,392
29
Cash absorbed by operations - company
2022
2021
£
£
Profit for the year after tax
40,000
16,000
Adjustments for:
Investment income
(40,000)
(16,000)
Cash absorbed by operations
-
-
30
Analysis of changes in net debt - group
1 April 2021
Cash flows
31 March 2022
£
£
£
Cash at bank and in hand
912,599
(311,321)
601,278
Bank overdrafts
(3,582,248)
(338,121)
(3,920,369)
(2,669,649)
(649,442)
(3,319,091)
Borrowings excluding overdrafts
(345,000)
60,000
(285,000)
Obligations under finance leases
(863,527)
(326,856)
(1,190,383)
(3,878,176)
(916,298)
(4,794,474)
RIPLEY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 36 -
31
Analysis of changes in net funds - company
1 April 2021
31 March 2022
£
£
Cash at bank and in hand
200
200
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