Company registration number 01755171 (England and Wales)
REALCO EQUIPMENT LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
PAGES FOR FILING WITH REGISTRAR
REALCO EQUIPMENT LIMITED
CONTENTS
Page
Company information
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 9
REALCO EQUIPMENT LIMITED
COMPANY INFORMATION
- 1 -
Director
P A Booth
Secretary
S Booth
Company number
01755171
Registered office
Riverside House
Kings Reach Business Park
Yew Street
Stockport
Cheshire
UK
SK4 2HD
Accountants
Hallidays
Riverside House
Kings Reach Business Park
Yew Street
Stockport
Cheshire
SK4 2HD
REALCO EQUIPMENT LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
112,208
122,198
Current assets
Stocks
4
124,265
110,000
Debtors
5
590,838
745,738
Cash at bank and in hand
34,356
68,499
749,459
924,237
Creditors: amounts falling due within one year
6
(612,039)
(781,441)
Net current assets
137,420
142,796
Total assets less current liabilities
249,628
264,994
Creditors: amounts falling due after more than one year
7
(17,500)
(29,348)
Provisions for liabilities
(18,248)
(19,857)
Net assets
213,880
215,789
Capital and reserves
Called up share capital
9
100
100
Profit and loss reserves
213,780
215,689
Total equity
213,880
215,789
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 September 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
REALCO EQUIPMENT LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 SEPTEMBER 2023
30 September 2023
- 3 -
The financial statements were approved and signed by the director and authorised for issue on 5 February 2024
P A Booth
Director
Company registration number 01755171 (England and Wales)
REALCO EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
1
Accounting policies
Company information
Realco Equipment Limited is a private company limited by shares incorporated in England and Wales. The registered office is Riverside House, Kings Reach Business Park, Yew Street, Stockport, Cheshire, UK, SK4 2HD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on a going concern basis.true
1.3
Turnover
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Premises improvements
20% Reducing Balance
Plant and equipment
20% Reducing Balance
Fixtures and fittings
20% Reducing Balance
Office equipments
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 credited or charged to profit or loss.
REALCO EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Equity instruments
Equity instruments issued by the company 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 company.
1.8
Taxation
Current tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
REALCO EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.10
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leases asset are consumed.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
20
20
3
Tangible fixed assets
Premises improvements
Plant and equipment
Fixtures and fittings
Office equipments
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 October 2022
128,601
149,444
51,740
11,809
69,633
411,227
Additions
13,929
208
3,089
17,226
At 30 September 2023
142,530
149,444
51,948
14,898
69,633
428,453
Depreciation and impairment
At 1 October 2022
76,167
111,448
43,827
10,440
47,147
289,029
Depreciation charged in the year
11,645
7,599
1,624
727
5,621
27,216
At 30 September 2023
87,812
119,047
45,451
11,167
52,768
316,245
Carrying amount
At 30 September 2023
54,718
30,397
6,497
3,731
16,865
112,208
At 30 September 2022
52,434
37,996
7,913
1,369
22,486
122,198
Included within the net book value of tangible fixed assets above is £12,086 (2022: £16,114) in respect of assets held under finance leases and similar hire purchase contracts. Depreciation for the year on these assets was £4,029 (2022: £5,371).
REALCO EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 7 -
4
Stocks
2023
2022
£
£
Stocks
124,265
110,000
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
420,506
536,493
Amounts due from related parties
104,029
94,940
Other debtors
66,303
114,305
590,838
745,738
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
8
266,562
381,986
Obligations under hire purchase contracts
1,848
7,677
Trade creditors
220,028
231,383
Corporation tax
54,685
65,412
Other taxation and social security
53,513
68,727
Accruals and deferred income
15,403
26,256
612,039
781,441
7
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
8
17,500
27,500
Obligations under hire purchase contracts
1,848
17,500
29,348
REALCO EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
8
Loans and overdrafts
2023
2022
£
£
Bank loans
284,062
409,486
Obligations under hire purchase contracts
9,525
9,525
293,587
419,011
Payable within one year
268,410
389,663
Payable after one year
17,500
29,348
Secured Creditors
Included within bank borrowings is an invoice discounting facility amounting to £256,562 (2022:£371,986). As part of the security for the facility there is a fixed and floating charge over all of the property and undertakings of the company.
Amounts owing under hire purchase contracts are secured against the related asset.
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
100
100
100
100
10
Financial commitments, guarantees and contingent liabilities
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £12,250 (2022 - £36,750).
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
12,250
36,873
The amount of non-cancellable operating lease payments recognised as an expense during the year was £24,500 (2022: £24,623).
12
Related party transactions
REALCO EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
12
Related party transactions
(Continued)
- 9 -
During the year the company paid rent at a normal commercial rate amounting to £24,500 (2022: £22,208) to related parties in respect of property occupied by the company. At the balance sheet date, the total amount due from related parties was £104,028 (2022: £94,940). This amount is interest free and repayable on demand.
13
Directors' transactions
During the year the company advanced monies to the director on an interest free basis. At the balance sheet date the amount due from the director was £27,076 (2022: £68,113). This amount is repayable on demand.
14
Control
There is no ultimate controlling party by virtue of the shareholdings.