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REGISTERED NUMBER: 02737904 (England and Wales)
















Rowecord Holdings Limited

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 30 June 2023







Rowecord Holdings Limited (Registered number: 02737904)








Contents of the Consolidated Financial Statements

for the Year Ended 30 June 2023





Page




Company Information  

1




Group Strategic Report  

2




Report of the Directors  

3




Report of the Independent Auditors  

4




Consolidated Statement of Comprehensive Income

7




Consolidated Balance Sheet  

8




Company Balance Sheet  

9




Consolidated Statement of Changes in Equity  

10




Company Statement of Changes in Equity  

11




Consolidated Cash Flow Statement  

12




Notes to the Consolidated Cash Flow Statement

13




Notes to the Consolidated Financial Statements

14





Rowecord Holdings Limited



Company Information

for the Year Ended 30 June 2023









Directors:

A F Hoppe


I D Hoppe


Mrs A G Morris





Registered office:

Unit A, Leeway House


Leeway Industrial Estate


Newport


NP19 4SL





Registered number:

02737904 (England and Wales)





Auditors:

Haines Watts Wales LLP, Statutory Auditors


7 Neptune Court


Vanguard Way


Cardiff


CF24 5PJ





Bankers:

Lloyds Bank PLC


St William House


Tresillian Terrace


Cardiff


CF10 5BH



Rowecord Holdings Limited (Registered number: 02737904)



Group Strategic Report

for the Year Ended 30 June 2023


The directors present their strategic report of the company and the group for the year ended 30 June 2023.


Review of business

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



2022


2022


2021



£


£


£



Turnover


6,194,432


5,999,316


6,033,501


Gross profit margin (%)


50%


44%


43%


Profit/(Loss) before taxation


420,631


498,318


491,759



At the end of the year, the net assets of the group totalled £8,173,413 (2022: £8,046,725).


Principal risks and uncertainties

The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations.


In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of its bank facilities. All of the business' cash balances are held in such a way that achieves a competitive rate of interest.


Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.


The diversification of the group in terms of work product enables it to take advantage of many opportunities and helps to protect the future earning potential of the business.


Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.


On behalf of the board:






A F Hoppe - Director



12 December 2023



Rowecord Holdings Limited (Registered number: 02737904)



Report of the Directors

for the Year Ended 30 June 2023


The directors present their report with the financial statements of the company and the group for the year ended 30 June 2023.


Principal activities

The principal activities of the group in the year under review were those of the supply and erection of fluid storage system and towers, the provision of scaffolding services and the managing the assets of the group.

Dividends

An interim dividend of 1.84 per share was paid on 9 November 2022. The directors recommend that no final dividend be paid.


The total distribution of dividends for the year ended 30 June 2023 will be £ 300,000 .


Directors

The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report.


A F Hoppe

I D Hoppe

Mrs A G Morris


Political donations and expenditure

There have been no political donations made during the year.


Statement of directors' responsibilities

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.


Company law requires the directors to prepare financial statements for each financial year.  Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period.  In preparing these financial statements, the directors are required to:


-

select suitable accounting policies and then apply them consistently;

-

make judgements and accounting estimates that are reasonable and prudent;

-

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.


Statement as to disclosure of information to auditors

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.


Auditors

The auditors,  Haines Watts Wales LLP, Statutory Auditors, will be proposed for re-appointment at the forthcoming Annual General Meeting.


On behalf of the board:






A F Hoppe - Director



12 December 2023


Report of the Independent Auditors to the Members of

Rowecord Holdings Limited


Qualified Opinion

We have audited the financial statements of Rowecord Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

-give a true and fair view of the state of the group's and of the parent company affairs as at 30 June 2023 and of
the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for qualified opinion

The group accounts do not include the disclosure of the assumptions and valuations used to establish the defined benefit pension scheme position as at 30 June 2023 in respect of Braithwaite Engineers Limited. Nor do they include any balance in relation to said scheme. In addition, we have not received external confirmation of the balance and have therefore not been provided with all of the information and explanations we required for our audit.


The tri-annual valuation statement prepared as at 31 December 2020 by the actuaries Mercer Limited, shows an Actuarial surplus on the pension fund of £245,000. The company has not made a provision for the surplus in the accounts, as the amount has not been quantified under assumptions prevailing as at 30 June 2023.


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 qualified opinion.


Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.


Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.


In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.  We have nothing to report in this regard.


Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-

the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.


Report of the Independent Auditors to the Members of

Rowecord Holdings Limited



Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.



-

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.


Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.


Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:


Our planning procedures identify the legal and regulatory frameworks applicable to the operations and financial statements of the company. These are reviewed internally with the audit team including relevant industry experience and expectations as well as externally with the client management. The key laws and regulations we considered in this context were the UK Companies Act 2006, UK GAAP (FRS 102) and relevant tax legislation.


Once identified, we assess the risks of material misstatements in relation to the laws and regulations, irregularities, including fraud and adjust our testing accordingly. Our audit procedures include:


- Discussing with Directors and management which areas of the business they believe to be more susceptible to

   fraud, and whether they have any knowledge or suspicion of fraudulent activities;

- Obtaining an understanding of the key controls put in place by the company to address risks identified, assessing

   the effectiveness of those and discussing how these are maintained and monitored internally;

- Assessing the risk of management override and review and testing of journal entries made into the accounting

   system, both on an individual and group level;

- Challenging assumptions and judgements made by the company in relation to the significant accounting estimates

   employed in the preparation of the financial statements;

- Discussing with Directors and Management the legal and regulatory obligations of the business and whether they

   have any knowledge or suspicion of non compliance.


Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that

material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularities likely involve collusion, forgery, intentional misrepresentation, or the override of internal controls.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.


Report of the Independent Auditors to the Members of

Rowecord Holdings Limited



Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.





Clive Edwards (Senior Statutory Auditor)

for and on behalf of Haines Watts Wales LLP, Statutory Auditors

7 Neptune Court

Vanguard Way

Cardiff

CF24 5PJ


22 December 2023



Rowecord Holdings Limited (Registered number: 02737904)



Consolidated

Statement of Comprehensive

Income

for the Year Ended 30 June 2023



2023


2022


Notes

£   

£   



Turnover

3

6,194,432


5,999,316




Cost of sales

(3,067,297

)

(3,367,821

)


Gross profit

3,127,135


2,631,495




Administrative expenses

(2,790,532

)

(2,189,368

)


336,603


442,127




Other operating income

18,783


37,277



Operating profit

355,386


479,404




Interest receivable and similar income

68,657


26,243



424,043


505,647




Interest payable and similar expenses

5

(3,412

)

(7,329

)


Profit before taxation

6

420,631


498,318




Tax on profit

8

10,057


-



Profit for the financial year

430,688


498,318




Other comprehensive income

-


-



Total comprehensive income for the year

430,688


498,318




Profit attributable to:

Owners of the parent

358,782


444,785



Non-controlling interests

71,906


53,533



430,688


498,318




Total comprehensive income attributable to:

Owners of the parent

358,782


444,785



Non-controlling interests

71,906


53,533



430,688


498,318





Rowecord Holdings Limited (Registered number: 02737904)



Consolidated Balance Sheet

30 June 2023



2023


2022


Notes

£   

£   


Fixed assets

Tangible assets

11

2,065,364


2,150,008



Investments

12

-


-



Investment property

13

1,610,343


1,582,751



3,675,707


3,732,759




Current assets

Stocks

14

303,581


382,821



Debtors

15

3,113,034


1,630,232



Cash at bank and in hand

2,092,369


3,260,721



5,508,984


5,273,774



Creditors

Amounts falling due within one year

16

(967,945

)

(884,550

)


Net current assets

4,541,039


4,389,224



Total assets less current liabilities

8,216,746


8,121,983




Creditors

Amounts falling due after more than one

year

17

(43,333

)

(75,258

)


Net assets

8,173,413


8,046,725




Capital and reserves

Called up share capital

19

162,500


162,500



Capital redemption reserve

20

37,510


37,510



Retained earnings

20

7,729,915


7,671,133



Shareholders' funds

7,929,925


7,871,143




Non-controlling interests

21

243,488


175,582



Total equity

8,173,413


8,046,725




The financial statements were approved by the Board of Directors and authorised for issue on 12 December 2023 and were signed on its behalf by:





I D Hoppe - Director




A F Hoppe - Director




Rowecord Holdings Limited (Registered number: 02737904)



Company Balance Sheet

30 June 2023



2023


2022


Notes

£   

£   


Fixed assets

Tangible assets

11

945,119


980,780



Investments

12

373,201


455,485



Investment property

13

1,610,343


1,582,751



2,928,663


3,019,016




Current assets

Debtors

15

2,018,165


1,290,265



Cash at bank

1,716,631


2,626,074



3,734,796


3,916,339



Creditors

Amounts falling due within one year

16

(156,671

)

(215,825

)


Net current assets

3,578,125


3,700,514



Total assets less current liabilities

6,506,788


6,719,530




Capital and reserves

Called up share capital

19

162,500


162,500



Capital redemption reserve

20

37,500


37,500



Retained earnings

20

6,306,788


6,519,530



Shareholders' funds

6,506,788


6,719,530




Company's profit/(loss) for the financial year

87,258


(497,236

)



The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.  


The financial statements were approved by the Board of Directors and authorised for issue on 12 December 2023 and were signed on its behalf by:






A F Hoppe - Director




Rowecord Holdings Limited (Registered number: 02737904)



Consolidated Statement of Changes in Equity

for the Year Ended 30 June 2023



Called up


Capital


share


Retained


redemption


capital


earnings


reserve

£   

£   

£   


Balance at 1 July 2021

162,500


7,618,349


37,510




Changes in equity

Dividends

-


(392,001

)

-



Total comprehensive income

-


444,785


-



Balance at 30 June 2022

162,500


7,671,133


37,510




Changes in equity

Dividends

-


(300,000

)

-



Total comprehensive income

-


358,782


-



Balance at 30 June 2023

162,500


7,729,915


37,510




Non-controlling


Total


Total


interests


equity

£   

£   

£   


Balance at 1 July 2021

7,818,359


126,049


7,944,408




Changes in equity

Dividends

(392,001

)

(4,000

)

(396,001

)


Total comprehensive income

444,785


53,533


498,318



Balance at 30 June 2022

7,871,143


175,582


8,046,725




Changes in equity

Dividends

(300,000

)

(4,000

)

(304,000

)


Total comprehensive income

358,782


71,906


430,688



Balance at 30 June 2023

7,929,925


243,488


8,173,413





Rowecord Holdings Limited (Registered number: 02737904)



Company Statement of Changes in Equity

for the Year Ended 30 June 2023



Called up


Capital



share


Retained


redemption


Total


capital


earnings


reserve


equity

£   

£   

£   

£   


Balance at 1 July 2021

162,500


7,408,767


37,500


7,608,767




Changes in equity

Dividends

-


(392,001

)

-


(392,001

)


Total comprehensive income

-


(497,236

)

-


(497,236

)


Balance at 30 June 2022

162,500


6,519,530


37,500


6,719,530




Changes in equity

Dividends

-


(300,000

)

-


(300,000

)


Total comprehensive income

-


87,258


-


87,258



Balance at 30 June 2023

162,500


6,306,788


37,500


6,506,788





Rowecord Holdings Limited (Registered number: 02737904)



Consolidated Cash Flow Statement

for the Year Ended 30 June 2023



2023


2022


Notes

£   

£   


Cash flows from operating activities

Cash generated from operations

1

(628,439

)

352,162



Interest paid

(3,412

)

(7,329

)


Net cash from operating activities

(631,851

)

344,833




Cash flows from investing activities

Purchase of tangible fixed assets

(261,974

)

(261,078

)


Purchase of investment property

(1,694

)

(5,000

)


Sale of tangible fixed assets

439


14,250



Sale of investment property

-


526,500



Interest received

68,657


26,243



Net cash from investing activities

(194,572

)

300,915




Cash flows from financing activities

Net loan repayments in year

(37,929

)

(126,381

)


Non-controlling interest dividend paid

(4,000

)

(4,000

)


Equity dividends paid

(300,000

)

(392,001

)


Net cash from financing activities

(341,929

)

(522,382

)



(Decrease)/increase in cash and cash equivalents

(1,168,352

)

123,366



Cash and cash equivalents at beginning

of year

2

3,260,721


3,137,355




Cash and cash equivalents at end of year

2

2,092,369


3,260,721





Rowecord Holdings Limited (Registered number: 02737904)



Notes to the Consolidated Cash Flow Statement

for the Year Ended 30 June 2023


1.

Reconciliation of profit before taxation to cash generated from operations


2023


2022

£   

£   



Profit before taxation

420,631


498,318




Depreciation charges

320,430


503,485




Profit on disposal of fixed assets

(148

)

(486,991

)



Tax paid

-


(10,057

)



Finance costs

3,412


7,329




Finance income

(68,657

)

(26,243

)


675,668


485,841




Decrease in stocks

79,240


95,964




(Increase)/decrease in trade and other debtors

(1,482,795

)

80,845




Increase/(decrease) in trade and other creditors

99,448


(310,488

)



Cash generated from operations

(628,439

)

352,162




2.

Cash and cash equivalents



The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:



Year ended 30 June 2023


30.6.23


1.7.22

£   

£   



Cash and cash equivalents

2,092,369


3,260,721




Year ended 30 June 2022


30.6.22


1.7.21

£   

£   



Cash and cash equivalents

3,260,721


3,137,355





3.

Analysis of changes in net funds



At 1.7.22

Cash flow

At 30.6.23

£   

£   

£   



Net cash



Cash at bank and in hand

3,260,721


(1,168,352

)

2,092,369



3,260,721


(1,168,352

)

2,092,369




Debt


Debts falling due within 1 year

(37,928

)

6,003


(31,925

)



Debts falling due after 1 year

(75,258

)

31,925


(43,333

)


(113,186

)

37,928


(75,258

)



Total

3,147,535


(1,130,424

)

2,017,111





Rowecord Holdings Limited (Registered number: 02737904)



Notes to the Consolidated Financial Statements

for the Year Ended 30 June 2023


1.

Statutory information



Rowecord Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.


2.

Accounting policies



Basis of preparing the financial statements


These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.  The financial statements have been prepared under the historical cost convention.



The financial statements have been prepared on a going concern basis and are prepared in sterling, which is the functional currency of the company.



Basis of consolidation


The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 June 2023.



Subsidiary undertakings are included using the acquisitions method of accounting.  Under this method the group profit and loss account and statement of cashflows include the results and cashflows of subsidiaries from the date of acquisition and to the date of sale outside the group in the case of disposals of subsidiaries.  The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.



Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.


Changes in accounting estimate - tubes and fittings

Fittings has previously been written down at a standard rate of 4 years and tubes has been written down at a rate of 5 years.

On review, the Directors have updated these estimates so that fittings are to now be written off over 6 years rather than 4 years and tubes are to be written off over 6 years 8 months rather than 5 years. It is considered to be a more accurate reflection of the life and value of the assets held.


Turnover


Turnover represents amounts chargeable, net of value added tax, in respect of scaffold services and the supply and installation of steel and GRP water tanks and supporting towers, adjusted for amounts recoverable on contracts.



Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty.  The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs (as defined above) as contract activity progresses.  Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract.  Revenues derived from variations on contracts are recognised only when they have been accepted by the customer.  Full provision is made for losses on all contracts in the year in which they are first foreseen.



Tangible fixed assets

All tangible fixed assets are initially recorded at cost. Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Freehold property- 1-10% straight line
Plant and machinery- Between 50% and 10% on cost
Fixtures and fittings- 25% on cost and 15% on cost
Motor vehicles- 25% on cost and 20% on cost

Fixed asset investments
Fixed asset investments are stated as historical cost less provision for any diminution in value.


Rowecord Holdings Limited (Registered number: 02737904)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2023


2.

Accounting policies - continued



Investments in associates


Investments in associate undertakings are recognised at cost.



Investment property


Investment properties are recognised at fair value by valuation. The properties held for investment purposes have not been re-stated on transition to FRS102 as the directors' deemed the required adjustment to be immaterial to the financial statements.



Stocks


Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs.  Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.



Net realisable value is also based on the estimated useful life of stock which is written down over 2 years.



Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.


Foreign currencies

Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the profit and loss account.


Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.


Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.

One subsidiary company operates a defined benefit pension scheme but has not incorporated them into these accounts. In the opinion of the directors, the cost of providing the additional accounting disclosures for the defined benefit pension scheme as at 30 June 2023 would far outweigh the benefit to the group.


Rowecord Holdings Limited (Registered number: 02737904)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2023


3.

Turnover



The turnover and profit before taxation are attributable to the principal activities of the group.



An analysis of turnover by geographical market is given below:



2023


2022

£   

£   



United Kingdom

5,559,712


5,355,288




Rest of the world

634,720


644,028



6,194,432


5,999,316




4.

Employees and directors


2023


2022

£   

£   



Wages and salaries

3,055,038


3,061,560




Social security costs

352,692


311,842




Other pension costs

185,999


110,263



3,593,729


3,483,665





The average number of employees during the year was as follows:


2023


2022



Directors

3


3




Production

55


57




Admin

25


24



83


84





Key management personnel are deemed to be the directors.



2023


2022

£   

£   



Directors' remuneration

259,827


298,689




Directors' pension contributions to money purchase schemes  

-


12,700





The number of directors to whom retirement benefits were accruing was as follows:



Money purchase schemes

2


2





Information regarding the highest paid director is as follows:


2023


2022

£   

£   



Emoluments etc

119,307


147,317




5.

Interest payable and similar expenses



2023


2022

£   

£   



Bank loan interest

3,412


7,329





Rowecord Holdings Limited (Registered number: 02737904)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2023


6.

Profit before taxation



The profit is stated after charging/(crediting):



2023


2022

£   

£   



Hire of plant and machinery

336,870


438,864




Other operating leases

36,602


19,000




Depreciation - owned assets

320,429


503,485




Profit on disposal of fixed assets

(148

)

(494,351

)



7.

Auditors' remuneration


2023


2022

£   

£   



Fees payable to the company's auditors for the audit of the company's

financial statements

14,625


12,050




Total audit fees

14,625


12,050




8.

Taxation



Analysis of the tax credit


The tax credit on the profit for the year was as follows:


2023


2022

£   

£   



Current tax:


UK corporation tax

(10,057

)

-




Tax on profit

(10,057

)

-





Reconciliation of total tax credit included in profit and loss


The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:



2023


2022

£   

£   



Profit before tax

420,631


498,318




Profit multiplied by the standard rate of corporation tax in the UK of 19 %

(2022 - 19 %)  

79,920


94,680





Effects of:


Expenses not deductible for tax purposes

26,377


2,782




Income not taxable for tax purposes

(3,040

)

(9,998

)



Depreciation in excess of capital allowances

6,036


21,927




Utilisation of tax losses

(121,723

)

(129,078

)



Adjustments to tax charge in respect of previous periods

(10,057

)

-




Losses carried forward  

12,458


28,924




Capital gain  

-


82,769




Profit on disposal of fixed assets  

(28

)

(92,006

)



Total tax credit

(10,057

)

-




9.

Individual statement of comprehensive income



As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.




Rowecord Holdings Limited (Registered number: 02737904)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2023


10.

Dividends


2023


2022

£   

£   



Ordinary shares of £1 each


Interim

300,000


392,001




11.

Tangible fixed assets



Group


Improvements



Freehold


to


Plant and


property


property


machinery

£   

£   

£   



Cost


At 1 July 2022

832,967


230,024


1,760,272




Additions

-


-


117,510




Disposals

-


-


(24,830

)



At 30 June 2023

832,967


230,024


1,852,952




Depreciation


At 1 July 2022

37,977


44,234


793,781




Charge for year

12,658


23,003


221,840




Eliminated on disposal

-


-


(24,540

)



At 30 June 2023

50,635


67,237


991,081




Net book value


At 30 June 2023

782,332


162,787


861,871




At 30 June 2022

794,990


185,790


966,491





Fixtures



and


Motor



fittings


vehicles


Totals

£   

£   

£   



Cost


At 1 July 2022

25,685


569,702


3,418,650




Additions

550


143,914


261,974




Disposals

(1,199

)

(7,100

)

(33,129

)



At 30 June 2023

25,036


706,516


3,647,495




Depreciation


At 1 July 2022

21,717


370,933


1,268,642




Charge for year

2,463


86,363


346,327




Eliminated on disposal

(1,199

)

(7,099

)

(32,838

)



At 30 June 2023

22,981


450,197


1,582,131




Net book value


At 30 June 2023

2,055


256,319


2,065,364




At 30 June 2022

3,968


198,769


2,150,008





The net carrying value of tangible fixed assets include the following in respect of assets held under asset purchase agreements:




2022



2021




£   



£   





Plant and machinery


62,587



109,016





Rowecord Holdings Limited (Registered number: 02737904)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2023


11.

Tangible fixed assets - continued



Company


Improvements



Freehold


to



property


property


Totals

£   

£   

£   



Cost


At 1 July 2022


and 30 June 2023

832,967


230,024


1,062,991




Depreciation


At 1 July 2022

37,977


44,234


82,211




Charge for year

12,658


23,003


35,661




At 30 June 2023

50,635


67,237


117,872




Net book value


At 30 June 2023

782,332


162,787


945,119




At 30 June 2022

794,990


185,790


980,780




Included in land and buildings is £200,000 (2022: £200,000) relating to land which has not been depreciated.

12.

Fixed asset investments



Company


Shares in


group


undertakings

£   



Cost


At 1 July 2022

455,485




Impairments

(82,284

)



At 30 June 2023

373,201




Net book value


At 30 June 2023

373,201




At 30 June 2022

455,485





The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:



Subsidiaries




Rowecord Total Access Limited


Registered office: Kemys Way, Swansea Enterprise Park, Swansea


Nature of business: Supply of scaffolding services


%


Class of shares:

holding



Ordinary

80.00


2023

2022


£   

£   



Aggregate capital and reserves

1,945,378


1,605,849




Profit for the year

359,529


267,666





Rowecord Holdings Limited (Registered number: 02737904)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2023


12.

Fixed asset investments - continued



Braithwaite Engineers Limited


Registered office: Units A & B Leeway House, Leeway Industrial Estate, Newport


Nature of business: Fluid storage systems and structural steel


%


Class of shares:

holding



Ordinary

100.00


2023

2022


£   

£   



Aggregate capital and reserves

49,827


132,210




Loss for the year

(82,383

)

(169,012

)




13.

Investment property



Group and Company


Total




£





Fair value




At 1st July 2022


1,608,649




Additions


1,694




At 30 June 2022


1,610,343





Depreciation




At 1st July 2022


25,898




Charge in the year


(25,898

)



At 30th June 2022


25,898





Net book value




At 30th June 2023


1,610,343




At 30th June 2022


1,582,751





Group and Company



Fair value at 30th June 2022 is represented by:




£




Cost


1,610,343






The Investment property was purchased in April 2021.



The directors have reviewed the valuation of the Investment property based on their knowledge of the local property market, area and sector. There is no change to the fair value of the Investment property as at 30 June 2023.



Rowecord Holdings Limited (Registered number: 02737904)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2023


13.

Investment property - continued



Company


Total

£   



Fair value


At 1 July 2022

1,608,649




Additions

1,694




At 30 June 2023

1,610,343




Depreciation


At 1 July 2022

25,898




Charge for year

(25,898

)



At 30 June 2023

-




Net book value


At 30 June 2023

1,610,343




At 30 June 2022

1,582,751




14.

Stocks



Group


2023

2022


£   

£   



Stocks

303,581


382,821




15.

Debtors



Group


Company


2023

2022

2023

2022


£   

£   

£   

£   



Amounts falling due within one year:



Trade debtors

806,792


548,069


27,751


48,310




Amounts owed by group undertakings

-


-


423,528


663,253




Amounts recoverable on contract

534,041


297,538


-


-




Other debtors

487,449


246,799


339,022


115,867




Tax

18,345


36,619


-


-




Prepayments and accrued income

41,408


51,207


17,477


12,835




Prepayments

14,612


-


-


-



1,902,647


1,180,232


807,778


840,265





Amounts falling due after more than one

year:



Other debtors

1,210,387


450,000


1,210,387


450,000





Aggregate amounts

3,113,034


1,630,232


2,018,165


1,290,265





Rowecord Holdings Limited (Registered number: 02737904)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2023


16.

Creditors: amounts falling due within one year




Group


Company


2023

2022

2023

2022


£   

£   

£   

£   



Bank loans and overdrafts (see note 18)

20,000


20,000


-


-




Asset finance loan (see note 18)

11,925


17,928


-


-




Payments on account

20,885


-


-


-




Trade creditors

392,794


329,828


64,305


23,464




Tax

(10,057

)

-


(10,057

)

-




Social security and other taxes

128,176


118,647


-


-




VAT

45,634


92,757


54,026


95,012




Other creditors

54,178


30,545


-


-




Accrued expenses

304,410


274,845


48,397


97,349



967,945


884,550


156,671


215,825




17.

Creditors: amounts falling due after more than one year




Group


2023

2022


£   

£   



Bank loans (see note 18)

43,333


63,333




Asset finance loan (see note 18)

-


11,925



43,333


75,258





The asset finance loans are secured against the assets which they relate to.


18.

Loans



An analysis of the maturity of loans is given below:



Group


2023

2022


£   

£   



Amounts falling due within one year or on

demand:



Bank loans

20,000


20,000




Asset finance loan

11,925


17,928



31,925


37,928




Amounts falling due between one and two

years:



Bank loans - 1-2 years

20,000


20,000




Asset finance loan - 1-2 years

-


11,925



20,000


31,925




Amounts falling due between two and five

years:



Bank loans - 2-5 years

23,333


43,333




19.

Called up share capital



Allotted, issued and fully paid:


Number:

Class:

Nominal

2023

2022



value:

£   

£   



162,500

Ordinary

£1

162,500


162,500





Rowecord Holdings Limited (Registered number: 02737904)



Notes to the Consolidated Financial Statements - continued

for the Year Ended 30 June 2023


20.

Reserves



Group


Capital



Retained


redemption



earnings


reserve


Totals

£   

£   

£   




At 1 July 2022

7,671,133


37,510


7,708,643




Profit for the year

358,782


358,782




Dividends

(300,000

)

(300,000

)



At 30 June 2023

7,729,915


37,510


7,767,425





Company


Capital



Retained


redemption



earnings


reserve


Totals

£   

£   

£   




At 1 July 2022

6,519,530


37,500


6,557,030




Profit for the year

87,258


87,258




Dividends

(300,000

)

(300,000

)



At 30 June 2023

6,306,788


37,500


6,344,288





The company profit for the year includes an impairment loss relating to shares held in group undertakings of £141,000.


21.

Non-controlling interests



Profits relating to to minority interests in Rowecord Total Access Limited during the year were £71,906 (2022: £53,533).



As at 30 June 2023, net assets in relation to minority interest were £243,488 (2022: £175,582).


22.

Pension commitments



The group operates defined contribution pension schemes. The pension cost charge for the year represents contributions payable by the group to the scheme and amounts to £127,998  (2022: £110,264).


23.

Other financial commitments



Contingent liabilities include bank and insurances held guarantees entered into during the normal course of trade.


24.

Related party disclosures



Entities under common ownership  

2023

2022


£   

£   



Sales  

1,070,280


1,372,626




Purchases  

114,290


65,832




Amount due from related party  

59,654


452,624




Amount due to related party  

33,292


872




25.

Ultimate controlling party



The shareholders as a body are considered to be the ultimate controlling party as no one individual holds in excess of 50% of the issued share capital.