Company Registration No. 02389423 (England and Wales)
REGA DEVELOPMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
REGA DEVELOPMENTS LIMITED
COMPANY INFORMATION
Director
RL K Gandy
Company number
02389423
Registered office
Unit 6 Coopers Way
Temple Farm Industrial Estate
Southend-on-Sea
Essex
SS2 5TE
Auditor
Rickard Luckin Limited
1st Floor
19 Clifftown Road
Southend-On-Sea
Essex
SS1 1AB
REGA DEVELOPMENTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 32
REGA DEVELOPMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The director presents the strategic report for the year ended 30 June 2023.

Review of the business

The Directors are satisfied with the performance of the business. Turnover has decreased this year by 36.9% as expected given the move away from the demand in Rega equipment whilst Covid restrictions were implemented. Both turnover and profitability are returning to pre Covid levels, a level at which the group Directors believe the business is best suited to serve customers.

 

Gross profit margin has decreased to 40.2% (2022 - 41.5%) in the year. The gross profit margin achieved in the year is particularly pleasing given the large increase in supplier costs experienced and our decision to maintain our high staff levels. Margins have been maintained by increasing production efficiency and maintaining pre-covid sales volume. At the end of the year the business had net assets of £22,633,228 (2022 - £21,058,568).

 

Future developments

Now that trade has returned to pre Covid levels management expect to sustain the current level of performance into the future. Despite worldwide inflationary pressures management do not expect a fall in margins given the businesses diversification of products across different price ranges and the ability to always meet demand using existing stock. The cash balance has increased to £9.1m (2022: £8.6m) in the year. The company’s long term aim is to maintain cash at these levels given its operational importance, allowing the business to meet demand despite increasing supplier costs and supply chain time constraints that would otherwise result in an enforced reduction in trade. It also allows us to invest in our infrastructure, Plant & Equipment and development of new products.

Principal risks and uncertainties

The principal risk of the Group is in respect to market trends and the demand for products.

 

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

 

The Group’s principle financial instruments comprise cash and liquid resources. The main purpose of these instruments is to finance the Group’s operations. The Group has various other financial instruments such as trade debtors and trade creditors that arise directly from it’s operations.

 

In respect of bank balances, the liquidity risk is managed by maintaining a positive cash balance. All of the Group’s cash balances are held in such a way that achieves a competitive rate of interest. The Group makes use of money market facilities where funds are available.

 

Trade debtors are managed in respect of credit and cash flow risk policies concerning the credit offered to customers and 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.

 

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

REGA DEVELOPMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
Key performance indicators

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

 

2023        2022        

Turnover        £13,739,985    £21,763,173            

Gross profit margin    40.2%        41.5%        

Profit before tax        £1,874,721    £4,047,788

On behalf of the board

RL K Gandy
Director
21 January 2024
REGA DEVELOPMENTS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

The director presents his annual report and financial statements for the year ended 30 June 2023.

Principal activities

The principal activity of the company is that of a holding company. The principal activity of the group continued to be that of manufacturing and selling audio equipment.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

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

RL K Gandy
Auditor

The auditor, Rickard Luckin Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

On behalf of the board
RL K Gandy
Director
21 February 2024
REGA DEVELOPMENTS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

REGA DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF REGA DEVELOPMENTS LIMITED
- 5 -
Opinion

We have audited the financial statements of Rega Developments Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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:

REGA DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF REGA DEVELOPMENTS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Capability of the audit in detecting irregularity, including fraud

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management; through communications with other group auditors, through communications with legal counsel, and via inspection of the group’s regulatory and legal correspondence.

We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the group.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the group is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution; relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

REGA DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF REGA DEVELOPMENTS LIMITED
- 7 -

Secondly the group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; waste electronic equipment regulations; data protection laws; anti-bribery and anti-corruption legislation.

ISAs (UK) limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements.

In relation to fraud, we performed the following specific procedures in addition to those already noted:

These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with ISAs (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.

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.

REGA DEVELOPMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF REGA DEVELOPMENTS LIMITED
- 8 -

Use of our report

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

Neil Brewer (Senior Statutory Auditor)
For and on behalf of Rickard Luckin Limited
1 February 2024
Chartered Accountants
Statutory Auditor
1st Floor
19 Clifftown Road
Southend-On-Sea
Essex
SS1 1AB
REGA DEVELOPMENTS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
Year
Period
ended
ended
30 June
30 June
2023
2022
Notes
£
£
Turnover
3
13,739,985
21,763,173
Cost of sales
(8,223,759)
(12,721,931)
Gross profit
5,516,226
9,041,242
Distribution costs
(77,055)
(82,619)
Administrative expenses
(3,750,296)
(4,921,640)
Operating profit
4
1,688,875
4,036,983
Interest receivable and similar income
8
185,846
10,805
Profit before taxation
1,874,721
4,047,788
Tax on profit
9
(300,061)
(379,587)
Profit for the financial year
1,574,660
3,668,201
Profit for the financial year is all attributable to the owner of the parent company.
Total comprehensive income for the year is all attributable to the owner of the parent company.
REGA DEVELOPMENTS LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
4,647
5,042
Tangible assets
11
4,689,761
4,477,684
4,694,408
4,482,726
Current assets
Stocks
14
9,600,411
9,129,074
Debtors
15
746,810
1,230,260
Cash at bank and in hand
9,155,693
8,632,513
19,502,914
18,991,847
Creditors: amounts falling due within one year
16
(1,099,608)
(2,016,993)
Net current assets
18,403,306
16,974,854
Total assets less current liabilities
23,097,714
21,457,580
Provisions for liabilities
Deferred tax liability
17
464,486
399,012
(464,486)
(399,012)
Net assets
22,633,228
21,058,568
Capital and reserves
Called up share capital
19
1,252
1,252
Merger reserve
17,389,115
17,389,115
Profit and loss reserves
5,242,861
3,668,201
Total equity
22,633,228
21,058,568
The financial statements were approved and signed by the director and authorised for issue on 21 January 2024
21 January 2024
RL K Gandy
Director
Company registration number 02389423 (England and Wales)
REGA DEVELOPMENTS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,353,034
1,354,446
Investments
12
1,250
1,250
1,354,284
1,355,696
Current assets
Debtors
15
2
2
Cash at bank and in hand
107,666
35,843
107,668
35,845
Creditors: amounts falling due within one year
16
(29,342)
(18,318)
Net current assets
78,326
17,527
Net assets
1,432,610
1,373,223
Capital and reserves
Called up share capital
19
1,252
1,252
Profit and loss reserves
1,431,358
1,371,971
Total equity
1,432,610
1,373,223

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the period was £59,387 (2022 - £1,371,971 profit).

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

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

The financial statements were approved and signed by the director and authorised for issue on 21 January 2024
21 January 2024
RL K Gandy
Director
Company registration number 02389423 (England and Wales)
REGA DEVELOPMENTS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
Share capital
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2021
2
-
-
0
2
Period ended 30 June 2022:
Profit and total comprehensive income
-
-
3,668,201
3,668,201
Bonus issue of shares
19
1,250
-
-
0
1,250
Transfers
-
17,389,115
-
17,389,115
Balance at 30 June 2022
1,252
17,389,115
3,668,201
21,058,568
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
1,574,660
1,574,660
Balance at 30 June 2023
1,252
17,389,115
5,242,861
22,633,228
REGA DEVELOPMENTS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2021
2
-
0
2
Period ended 30 June 2022:
Profit and total comprehensive income for the period
-
1,371,971
1,371,971
Bonus issue of shares
19
1,250
-
0
1,250
Balance at 30 June 2022
1,252
1,371,971
1,373,223
Year ended 30 June 2023:
Profit and total comprehensive income
-
59,387
59,387
Balance at 30 June 2023
1,252
1,431,358
1,432,610
REGA DEVELOPMENTS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
1,062,956
1,915,463
Income taxes paid
(76,655)
(13,134)
Net cash inflow from operating activities
986,301
1,902,329
Investing activities
Purchase of business
-
10,128,477
Purchase of tangible fixed assets
(670,717)
(3,432,805)
Proceeds from disposal of tangible fixed assets
21,750
23,707
Interest received
185,846
10,805
Net cash (used in)/generated from investing activities
(463,121)
6,730,184
Net increase in cash and cash equivalents
523,180
8,632,513
Cash and cash equivalents at beginning of year
8,632,513
-
0
Cash and cash equivalents at end of year
9,155,693
8,632,513
REGA DEVELOPMENTS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
78,045
35,843
Income taxes paid
(6,222)
-
0
Net cash inflow from operating activities
71,823
35,843
Investing activities
Purchase of tangible fixed assets
-
0
(1,355,858)
Dividends received
-
0
1,355,858
Net cash used in investing activities
-
-
Net increase in cash and cash equivalents
71,823
35,843
Cash and cash equivalents at beginning of year
35,843
-
0
Cash and cash equivalents at end of year
107,666
35,843
REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -
1
Accounting policies
Company information

Rega Developments Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 6 Coopers Way, Temple Farm Industrial Estate, Southend-on-Sea, Essex, SS2 5TE.

 

The group consists of Rega Developments Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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 Rega Developments 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 30 June 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 17 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Patents & licences
Over the life of the patent
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 18 -

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
960 years straight line
Leasehold land and buildings
Over the term of the lease
Leasehold improvements
10% straight line
Plant and equipment
10% reducing balance
Tooling
50% straight line
Computers
25% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset 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.

REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 19 -
1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Work in progress is recognised within raw materials and components in the financial statements. Work in progress is valued at the cost of each component and the labour incurred to bring the component to its current condition. Once work is completed on each component the item is removed from work in progress and recognised as an item of stock.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
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.

REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 20 -
1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 21 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
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.

1.15
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 22 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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 fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

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

1.18
Leases

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.

1.19
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 23 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation

Depreciation is based on an estimate of the useful economic life of each asset. Leasehold improvements are expected to have a useful economic life of 10 years, whilst tooling is expected to have a two year life span. Plant & machinery, Computer equipment and motor vehicles are expected to reduce in value between 10% to 25% each year.

Deferred taxation

The deferred taxation calculation is based on the differences between the net book value of fixed assets and the accelerated capital allowances claimed on the same underlying assets, adjusted for any general provisions and taxable losses carried forward to future years.

3
Turnover
2023
2022
£
£
Turnover analysed by geographical market
Sales - UK
4,136,458
5,396,395
Sales - Europe
5,238,368
8,082,355
Sales - Rest of the world
4,365,159
8,284,423
13,739,985
21,763,173

Other revenue is disclosed per note 8.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
12,134
(3,317)
Research and development costs
458,884
670,234
Depreciation of owned tangible fixed assets
443,370
425,826
Amortisation of intangible assets
395
395
Operating lease charges
116,359
184,241
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,000
5,000
Audit of the financial statements of the company's subsidiaries
18,500
17,400
23,500
22,400
REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 24 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
60
54
-
-
81
102
-
-
Total
141
156
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,456,090
4,885,246
-
0
-
0
Pension costs
67,966
118,401
-
0
-
0
3,524,056
5,003,647
-
0
-
0
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
38,750
38,000
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
177,939
10,805
Other interest income
7,907
-
Total income
185,846
10,805
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
177,939
10,805
REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 25 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
123,094
189,842
Adjustments in respect of prior periods
111,493
-
0
Total current tax
234,587
189,842
Deferred tax
Origination and reversal of timing differences
65,474
189,745
Total tax charge
300,061
379,587

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

2023
2022
£
£
Profit before taxation
1,874,721
4,047,788
Expected tax charge based on the standard rate of corporation tax in the UK of 20.50% (2022: 19.00%)
384,318
769,080
Tax effect of expenses that are not deductible in determining taxable profit
(734)
34,019
Effect of change in corporation tax rate
14,461
95,763
Permanent capital allowances in excess of depreciation
(9,444)
-
0
Other non-reversing timing differences
-
0
40,149
Under/(over) provided in prior years
111,493
-
0
Research and development enhance expense
(111,750)
(281,239)
Patent box
(88,283)
(278,185)
Taxation charge
300,061
379,587
REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
10
Intangible fixed assets
Group
Patents & licences
£
Cost
At 1 July 2022 and 30 June 2023
5,437
Amortisation and impairment
At 1 July 2022
395
Amortisation charged for the year
395
At 30 June 2023
790
Carrying amount
At 30 June 2023
4,647
At 30 June 2022
5,042
The company had no intangible fixed assets at 30 June 2023 or 30 June 2022.
REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 27 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Tooling
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost
At 1 July 2022
1,355,858
987,000
528,187
1,383,218
150,399
191,768
202,348
4,612,943
Additions
-
0
-
0
114,004
329,905
116,257
42,537
68,014
670,717
Disposals
-
0
-
0
-
0
(9,336)
(117,047)
(34,589)
(48,260)
(209,232)
At 30 June 2023
1,355,858
987,000
642,191
1,703,787
149,609
199,716
222,102
5,074,428
Depreciation and impairment
At 1 July 2022
1,412
1,028
78,564
89,407
77,176
48,395
25,112
135,259
Depreciation charged in the year
1,412
1,028
93,642
162,962
78,733
48,098
57,495
443,370
Eliminated in respect of disposals
-
0
-
0
-
0
(9,336)
(117,047)
(34,589)
(32,990)
(193,962)
At 30 June 2023
2,824
2,056
172,206
243,033
38,862
61,904
49,617
384,667
Carrying amount
At 30 June 2023
1,353,034
984,944
469,985
1,460,754
110,747
137,812
172,485
4,689,761
At 30 June 2022
1,354,446
985,972
449,623
1,293,811
73,223
143,373
177,236
4,477,684
REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 28 -
Company
Freehold land and buildings
£
Cost
At 1 July 2022 and 30 June 2023
1,355,858
Depreciation and impairment
At 1 July 2022
1,412
Depreciation charged in the year
1,412
At 30 June 2023
2,824
Carrying amount
At 30 June 2023
1,353,034
At 30 June 2022
1,354,446
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
1,250
1,250
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022 and 30 June 2023
1,250
Carrying amount
At 30 June 2023
1,250
At 30 June 2022
1,250
13
Subsidiaries

Details of the company's subsidiaries at 30 June 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Rega Research Limited
Unit 6 Coopers Way Temple Farm Industrial Estate Southend-on-Sea Essex SS2 5TE
Ordinary
100.00
REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 29 -
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
9,302,794
8,923,684
-
-
Finished goods and goods for resale
297,617
205,390
-
0
-
0
9,600,411
9,129,074
-
-
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
487,906
832,416
-
0
-
0
Corporation tax recoverable
-
0
41,060
-
0
-
0
Other debtors
160,522
282,067
2
2
Prepayments and accrued income
98,382
74,717
-
0
-
0
746,810
1,230,260
2
2
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
797,838
879,356
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
5,000
-
0
Corporation tax payable
123,094
6,222
15,842
6,222
Other taxation and social security
86,257
87,145
4,000
3,384
Other creditors
7,722
7,976
-
0
-
0
Accruals and deferred income
84,697
1,036,294
4,500
8,712
1,099,608
2,016,993
29,342
18,318
17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
464,486
399,012
The company has no deferred tax assets or liabilities.
REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
17
Deferred taxation
(Continued)
- 30 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 July 2022
399,012
-
Charge to profit or loss
65,474
-
Liability at 30 June 2023
464,486
-

The deferred tax liability relates to accelerated capital allowances that is expected to reverse over the course of the underlying assets useful economic life.

18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
67,966
118,401

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

Contributions totalling £5,792 (2022: £98,597) were payable to the scheme at the end of the year and are included within other creditors.

19
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,252
1,252
1,252
1,252
20
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
2023
2022
2023
2022
£
£
£
£
Within one year
166,786
86,786
-
-
Between two and five years
632,476
312,477
-
-
In over five years
472,652
205,211
-
-
1,271,914
604,474
-
-
REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 31 -
21
Related party transactions

As at 30 June 2023 £1,500 (2022: £nil) is owed to the group by a pension scheme in which the group is a sponsoring employer. These amounts are repayable on demand and interest is not charged on amounts due from related parties.

22
Controlling party

The company is ultimately controlled by the Director due to his 100% ownership of the share capital.

23
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,574,660
3,668,201
Adjustments for:
Taxation charged
300,061
379,587
Investment income
(185,846)
(10,805)
Gain on disposal of tangible fixed assets
(6,480)
-
Amortisation and impairment of intangible assets
395
395
Depreciation and impairment of tangible fixed assets
443,370
425,826
Movements in working capital:
Increase in stocks
(471,337)
(1,815,837)
Decrease/(increase) in debtors
442,390
(97,501)
Decrease in creditors
(1,034,257)
(634,403)
Cash generated from operations
1,062,956
1,915,463
24
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
59,387
1,371,971
Adjustments for:
Taxation charged
15,842
6,222
Investment income
-
0
(1,355,858)
Depreciation and impairment of tangible fixed assets
1,412
1,412
Movements in working capital:
Increase in creditors
1,404
12,096
Cash generated from operations
78,045
35,843
REGA DEVELOPMENTS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 32 -
25
Analysis of changes in net funds - group
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
8,632,513
523,180
9,155,693
26
Analysis of changes in net funds - company
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
35,843
71,823
107,666
2023-06-302022-07-01falseCCH SoftwareCCH Accounts Production 2023.300RL K 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