R K Wholesale Limited
Annual report and financial statements
For the period ended 1 July 2023
R K Wholesale Limited
Company information
Directors
Mr R Sutton
Mrs S M Sutton
Secretary
Mrs S M Sutton
Company number
02784084
Registered office
Sutton House
Berry Hill Road
Fenton
Stoke on Trent
Staffordshire
ST4 2NL
Auditor
DJH Mitten Clarke Audit Limited
The Glades
Festival Way
Stoke-on-Trent
Staffordshire
ST1 5SQ
R K Wholesale Limited
Contents
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 10
Income statement
11
Statement of comprehensive income
12
Statement of financial position
13
Statement of changes in equity
14
Notes to the financial statements
15 - 32
R K Wholesale Limited
Strategic report
For the period ended 1 July 2023
- 1 -
The directors present the strategic report for the period ended 1 July 2023.
Review of the business
The principal activity of the company continued to be the research and design, sourcing, distribution, import and sale of electrical and houseware products.
Highlights
Turnover for the period ending 1st July 2023 was £184.6m, a 52.1% improvement vs the prior year (FY22: £121.4m) thanks to exceptional growth in sales of air fryers which saw high levels of consumer demand throughout the reporting period. Compared to 2020, the cumulative average growth rate (CAGR) of the company’s turnover was an impressive 32.4% per annum.
The company continued to grow market share in several key categories during the period. The Tower brand maintained dominance by volume in the air fryer market and grew share considerably in vacuum cleaners, proving again that the company is able to gain traction and accelerate growth in new areas.
The company continued to invest in digital transformation projects during the period and will deploy a new ERP system in Q2 2024 which will enable a step change in operational efficiency and service delivery.
The company purchased the Goblin brand from Glen Electric in January 2023. This acquisition fits perfectly within the existing brand portfolio being a renowned historic British brand name in vacuuming, a category which the company has identified for growth and investment.
Market overview
The consumer durables market remained robust throughout the reporting period. Demand for energy saving products increased substantially, following a surge in the cost of gas and electricity, whilst higher interest rates impacted household disposable income putting pressure on volumes in some categories.
The share of small appliances purchased online as apposed to in physical retail stores continued to increase during the period and is expected to exceed 50% of the market in the coming years.
Consumers continue to demand time saving appliances that are functional, stylish and good value for money.
The company is well placed to benefit from these factors thanks to a rapid product development cycle that follows consumer trends and a wide distribution network with strong relationships with both traditional retailers and online pure players.
Strategic goals
The primary strategic goal of the company is to deliver continued profitable growth through the design, sourcing and distribution of competitively priced high quality consumer goods. International expansion is a key part of delivering this strategy and good progress has been made during the period with turnover generated outside of the United Kingdom increasing by 24.3% to £10.1m (FY22: £8.1m).
The continued shift in consumer spending towards online sales brings further opportunities for growth as existing strong relationships with key players such as Amazon can be leveraged to access more consumers and product fulfilment capabilities.
R K Wholesale Limited
Strategic report (continued)
For the period ended 1 July 2023
- 2 -
Principal risks and uncertainties
The company faces several risks and uncertainties in the course of doing business. Effective strategies have been developed to ensure that these risks are minimized, with a particular focus on the following areas:
Credit risk is a significant concern, as the company may face challenges collecting payments from customers. Comprehensive credit insurance policies and stringent internal limit management policies are in place to mitigate risk in this area.
Foreign currency exchange rate volatility is recognized as a risk factor and mitigated via a policy designed to secure rates at least 6 months in advance.
Sourcing and supply chain management need close management to ensure that instances of over and under stocking are minimized. The company ensures that products are sourced from a wide range of suppliers and countries to minimize the risk of disruption in this area.
Macroeconomic factors such as high rates of interest and inflation can affect demand for non-food products and therefore, represent a risk to turnover and profitability. The company mitigates this risk by developing mass-market products and category managing them to offer high quality at affordable price points.
R K Wholesale Limited
Strategic report (continued)
For the period ended 1 July 2023
- 3 -
Development and performance
Key performance indicators
Turnover for the period ending 1st July 2023 was £184.6m, an impressive 52.1% increase compared to the previous year (FY22: £121.4m)
Gross profit for the period was £40.6m representing 22.0% of turnover, a decrease of 1.2% compared to the prior year (FY22: £28.2m; 23.2%) due to key product launches and customer growth initiatives requiring additional promotional support.
Administrative expenses were £25.3m for the period, an increase of £6.8m on the prior year (FY22: £18.5m) driven mainly by further investment in advertising and promotion activities, quality assurance and back-office support functions.
Operating profit for the period ended 1st July 2023 was £58.3m (FY22: £2.8m) largely thanks to a £43.7m profit on disposal of intangible assets relating to the sale of the Tower brand to Sutton Venture Group Limited.
Net current assets were £72.6m as at 1st July 2023, an increase of £46.7m vs the previous year (FY22: £25.9m) coming from an intercompany debtor increase relating to the Tower brand purchase.
Performance in fiscal year 2024 to date has been in line with expectations in terms of turnover growth, market share gain and profitability. Historical and continued investment in new product development has produced a healthy roadmap of new product launches and is expected to deliver continued growth in the years ahead.
Future developments
Whilst inflation is currently high compared to the average for the previous decade, it is expected to fall in the coming years which will ease pressure on household incomes.
The markets in which the company operates are forecast to continue to grow for the foreseeable future, fuelled by consumer demand for time saving energy efficient goods.
CAGR for the UK home and small appliance market as a whole is forecast to be 4.8% to 2027. The company intends to substantially outperform the market over this period by expanding its’ brand and product portfolios and opening new international channels of distribution.
The quality and sustainability of products is a priority for consumers and the company has invested funds to ensure that the highest standards are met.
R K Wholesale Limited
Strategic report (continued)
For the period ended 1 July 2023
- 4 -
Section 172(1) statement
We have had regard to the matters set out in section 172(1)(a) to (f) of the Companies Act 2006 when performing our duty under section 172.
We have made consideration of:
- the likely consequences of any decision in the long term
- the interests of the company's employee
- the need to foster the company's business relationships with suppliers, customers and others
- the impact of the company's operations on the community and the environment
- the desirability of the company maintaining a reputation for high standards of business conduct, and
- the need to act fairly as between members of the company.
Mrs S M Sutton
Secretary
15 February 2024
R K Wholesale Limited
Directors' report
For the period ended 1 July 2023
- 5 -
The directors present their annual report and financial statements for the period ended 1 July 2023.
Results and dividends
The results for the period are set out on page 11.
An interim ordinary dividend was paid amounting to £51,750,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr R Sutton
Mrs S M Sutton
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Business relationships
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the company at the year end were equivalent to 35 day's purchases, based on the average daily amount invoiced by suppliers during the year.
R K Wholesale Limited
Directors' report (continued)
For the period ended 1 July 2023
- 6 -
Energy and carbon report
The company has taken advantage of the available exemption not to disclose energy and carbon reporting in accordance with the Environmental Reporting Guidelines. This information is included in the group directors report of Sutton Venture Group Limited.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
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 company’s auditor 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 company’s auditor is aware of that information.
By order of the board
Mrs S M Sutton
Secretary
15 March 2024
R K Wholesale Limited
Independent auditor's report
To the members of R K Wholesale Limited
- 7 -
Opinion
We have audited the financial statements of R K Wholesale Limited (the 'company') for the period ended 1 July 2023 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 1 July 2023 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
R K Wholesale Limited
Independent auditor's report (continued)
To the members of R K Wholesale Limited
- 8 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
R K Wholesale Limited
Independent auditor's report (continued)
To the members of R K Wholesale Limited
- 9 -
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
assessing the valuation of the brands and the reasonableness of the presumptions made;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
R K Wholesale Limited
Independent auditor's report (continued)
To the members of R K Wholesale Limited
- 10 -
Gary Neil Chadwick FCCA
Senior Statutory Auditor
For and on behalf of DJH Mitten Clarke Audit Limited
15 March 2024
Accountants
Statutory Auditor
The Glades
Festival Way
Stoke-on-Trent
Staffordshire
ST1 5SQ
R K Wholesale Limited
Income statement
For the period ended 1 July 2023
- 11 -
Period
Year
ended
ended
1 July
30 June
2023
2022
Notes
£
£
Turnover
3
184,617,121
121,396,723
Cost of sales
(144,015,137)
(93,170,466)
Gross profit
40,601,984
28,226,257
Administrative expenses
(25,346,534)
(18,527,980)
Other operating income
279,896
245,865
Demurrage costs
4
(969,388)
(7,166,014)
Profit on disposal of intangible assets
4
43,740,000
Operating profit
5
58,305,958
2,778,128
Interest receivable and similar income
9
56
Interest payable and similar expenses
10
(1,252,780)
(445,464)
Profit before taxation
57,053,234
2,332,664
Tax on profit
11
(2,482,035)
Profit for the financial period
54,571,199
2,332,664
The income statement has been prepared on the basis that all operations are continuing operations.
R K Wholesale Limited
Statement of comprehensive income
For the period ended 1 July 2023
- 12 -
Period
Year
ended
ended
1 July
30 June
2023
2022
£
£
Profit for the period
54,571,199
2,332,664
Other comprehensive income
Revaluation of tangible fixed assets
4,259,600
Tax relating to other comprehensive income
8,843,360
(1,469,425)
Other comprehensive income for the period
8,843,360
2,790,175
Total comprehensive income for the period
63,414,559
5,122,839
R K Wholesale Limited
Statement of financial position
As at 1 July 2023
- 13 -
1 July 2023
30 June 2022
Notes
£
£
£
£
Fixed assets
Intangible assets
13
3,318,000
49,101,000
Tangible assets
14
21,397,377
19,237,517
24,715,377
68,338,517
Current assets
Stocks
15
8,785,464
11,041,684
Debtors
16
133,061,362
55,016,132
Cash at bank and in hand
6,286,990
3,162,060
148,133,816
69,219,876
Creditors: amounts falling due within one year
17
(75,534,197)
(43,260,345)
Net current assets
72,599,619
25,959,531
Total assets less current liabilities
97,314,996
94,298,048
Creditors: amounts falling due after more than one year
18
(724,771)
(529,022)
Provisions for liabilities
Deferred tax liability
21
3,290,354
12,133,714
(3,290,354)
(12,133,714)
Net assets
93,299,871
81,635,312
Capital and reserves
Called up share capital
24
50,000
50,000
Revaluation reserve
25
11,661,892
49,391,096
Profit and loss reserves
26
81,587,979
32,194,216
Total equity
93,299,871
81,635,312
The financial statements were approved by the board of directors and authorised for issue on 15 March 2024 and are signed on its behalf by:
Mr R Sutton
Mrs S M Sutton
Director
Director
Company registration number 02784084 (England and Wales)
R K Wholesale Limited
Statement of changes in equity
For the period ended 1 July 2023
- 14 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2021
50,000
46,775,997
30,186,476
77,012,473
Year ended 30 June 2022:
Profit for the year
-
-
2,332,664
2,332,664
Other comprehensive income:
Revaluation of tangible fixed assets
-
4,259,600
-
4,259,600
Tax relating to other comprehensive income
-
(1,469,425)
(1,469,425)
Total comprehensive income for the year
-
2,790,175
2,332,664
5,122,839
Dividends
12
-
-
(500,000)
(500,000)
Transfers
-
(175,076)
175,076
-
Balance at 30 June 2022
50,000
49,391,096
32,194,216
81,635,312
Period ended 1 July 2023:
Profit for the period
-
-
54,571,199
54,571,199
Other comprehensive income:
Tax relating to other comprehensive income
-
8,843,360
8,843,360
Total comprehensive income for the period
-
8,843,360
54,571,199
63,414,559
Dividends
12
-
-
(51,750,000)
(51,750,000)
Transfers
-
(46,572,564)
46,572,564
-
Balance at 1 July 2023
50,000
11,661,892
81,587,979
93,299,871
R K Wholesale Limited
Notes to the financial statements
For the period ended 1 July 2023
- 15 -
1
Accounting policies
Company information
R K Wholesale Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sutton House, Berry Hill Road, Fenton, Stoke on Trent, Staffordshire, ST4 2NL.
1.1
Reporting period
The financial statements represent a period of one year and one day. The period was extended to facilitate the intra-group sale of a Trademark.
The financial statements are still considered comparable.
1.2
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, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
The financial statements of the company are consolidated in the financial statements of Sutton Venture Group Limited. These consolidated financial statements are available from its registered office, Sutton House, Berry Hill Road, Fenton, Stoke on Trent, Staffordshire, ST4 2NL.
Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with other group entities where the relationship is one of being wholly owned.
1.3
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
1
Accounting policies
(Continued)
- 16 -
1.4
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
Revenue from royalty agreements is recognised on an accruals basis in accordance with the substance of the agreement (usually on the sale of the right to use the entity's trademark), 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.
1.5
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:
Trademarks / Brands
Over its estimated useful economic life of 20 years
Where the directors consider the carrying amount of an intangible fixed asset is equal to it's recoverable amount, no amortisation is charged.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% per annum on revalued cost
Computer equipment
33.33% per annum on cost
Fixtures, plant and equipment
15% / 25% per annum on net book value
Motor vehicles
25% per annum on net book value
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
1
Accounting policies
(Continued)
- 17 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company 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.
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.
1.8
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.
1.9
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.
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
1
Accounting policies
(Continued)
- 18 -
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors , cash and bank balances and amounts due from fellow group companies, 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 company 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 company after deducting all of its liabilities.
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and amounts due to fellow group companies, 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 company’s contractual obligations expire or are discharged or cancelled.
1.11
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.
1.12
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
1
Accounting policies
(Continued)
- 20 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
1
Accounting policies
(Continued)
- 21 -
1.17
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
1.18
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 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 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.
Critical judgements
Bad debt provision
A provision for bad debts is made where, in the opinion of the directors, the recoverability of the debt is no longer considered probable.
Valuation of freehold land and buildings
The directors use the market opinion of qualified, external valuers when valuing freehold land and buildings.
Stock provisions
The directors make an estimate for provisions for obsolete and slow moving stock based on available data and trend analysis.
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
- 22 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
174,557,077
113,307,962
European Union
8,842,361
7,533,603
Rest of the world
1,217,683
555,158
184,617,121
121,396,723
2023
2022
£
£
Other revenue
Interest income
56
-
Royalty income
221,886
193,990
Grants received
58,010
51,875
4
Exceptional items
2023
2022
£
£
Expenditure
Demurrage costs
969,388
7,166,014
Profit on disposal of intangible assets
(43,740,000)
-
(42,770,612)
7,166,014
In the current and previous period due to the effects of the global pandemic on the movement and storage of goods, the company incurred exceptional demurrage costs over and above the normal level of trade. These exceptional costs have shown a reduction in the current period and not expected to be repeated in future periods.
5
Operating profit
2023
2022
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange losses/(gains)
769,889
(1,243,239)
Government grants
(58,010)
(51,875)
Depreciation of owned tangible fixed assets
561,112
564,492
Depreciation of tangible fixed assets held under finance leases
179,078
133,281
(Profit)/loss on disposal of tangible fixed assets
-
58,847
(Profit)/loss on disposal of intangible fixed assets
(43,040,000)
Operating lease charges
60,155
73,307
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
- 23 -
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
73,700
63,800
7
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2022
Number
Number
Management and administration
187
209
Distribution and warehousing
222
226
Sales
23
23
Total
432
458
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
15,820,999
13,705,879
Social security costs
789,242
561,337
Pension costs
416,879
255,298
17,027,120
14,522,514
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
17,810
17,735
Company pension contributions to defined contribution schemes
77,684
9,470
95,494
27,205
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
- 24 -
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
56
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
276,591
105,375
Interest on finance leases and hire purchase contracts
-
5,594
Other interest
976,189
334,495
1,252,780
445,464
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
2,482,035
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
57,053,234
2,332,664
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
14,263,309
443,206
Tax effect of expenses that are not deductible in determining taxable profit
2,041
557,173
Tax effect of income not taxable in determining taxable profit
(10,959,473)
Effect of change in corporation tax rate
(543,143)
Depreciation
185,048
143,758
Capital allowances
(113,804)
(209,870)
Group loss relief
(351,943)
(836,767)
R&D relief
(97,500)
Taxation charge for the period
2,482,035
-
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
11
Taxation
(Continued)
- 25 -
In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
£
£
Deferred tax arising on:
Revaluation of property
(8,843,360)
1,469,425
Factors that may affect future tax charges:
The UK Budget 2021 announcements on 3 March 2021 included measures to support economic recovery as a result of the ongoing COVID-19 pandemic. These included an increase to the UK's main corporation tax rate to 25%, effective from 1 April 2023.
These changes were substantively enacted at the balance sheet date and hence have been reflected in the measurement of corporation and deferred tax balances at the period end.
12
Dividends
2023
2022
£
£
Interim paid
51,750,000
500,000
13
Intangible fixed assets
Trademarks / Brands
£
Cost
At 1 July 2022
49,101,000
Additions
1,177,000
Disposals
(46,960,000)
At 1 July 2023
3,318,000
Amortisation and impairment
At 1 July 2022 and 1 July 2023
Carrying amount
At 1 July 2023
3,318,000
At 30 June 2022
49,101,000
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
- 26 -
14
Tangible fixed assets
Freehold land and buildings
Assets under construction
Computer equipment
Fixtures, plant and equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 July 2022
17,470,668
444,684
3,350,786
1,695,362
22,961,500
Additions
2,298,603
289,586
417,892
3,006,081
Disposals
(174,000)
(174,000)
At 1 July 2023
17,470,668
2,298,603
444,684
3,640,372
1,939,254
25,793,581
Depreciation and impairment
At 1 July 2022
2,996
444,684
2,436,465
839,838
3,723,983
Depreciation charged in the period
289,112
261,357
189,721
740,190
Eliminated in respect of disposals
(67,969)
(67,969)
At 1 July 2023
292,108
444,684
2,697,822
961,590
4,396,204
Carrying amount
At 1 July 2023
17,178,560
2,298,603
942,550
977,664
21,397,377
At 30 June 2022
17,467,672
914,321
855,524
19,237,517
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Fixtures, plant and equipment
863,189
571,265
Motor vehicles
144,803
223,249
1,007,992
794,514
Freehold land and buildings with a carrying amount of £16.81m were revalued at 28 June 2022 by Mark Weller MRCIS of Lambert Smith Hampton, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
The revaluation surplus is disclosed in note 24.
If freehold land and buildings were measured using the cost model, the carrying amounts would be as follows:
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
14
Tangible fixed assets
(Continued)
- 27 -
2023
2022
£
£
Cost
4,761,000
4,761,000
Accumulated depreciation
(952,200)
(856,980)
Carrying value
3,808,800
3,904,020
15
Stocks
2023
2022
£
£
Goods for resale
8,785,464
11,041,684
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
55,160,186
38,266,132
Corporation tax recoverable
393,138
296,824
Amounts owed by group undertakings
70,413,521
10,624,234
Other debtors
4,903,365
2,912,739
Prepayments and accrued income
2,191,152
2,916,203
133,061,362
55,016,132
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
19
22,851,100
17,366,587
Obligations under finance leases
20
387,169
256,392
Trade creditors
12,858,600
13,886,606
Amounts owed to group undertakings
168,579
336,255
Corporation tax
2,482,035
1,673,569
Other taxation and social security
24,416,279
2,358,478
Government grants
22
34,583
49,281
Other creditors
833,821
262,919
Accruals and deferred income
11,502,031
7,070,258
75,534,197
43,260,345
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
17
Creditors: amounts falling due within one year
(Continued)
- 28 -
Included within bank loans and overdrafts are amounts of £22,959,938 (2022 - £16,489,529) in respect of invoice discounting facilities. These amounts are secured by a fixed charge on all purchased debts.
Included within bank loans and overdrafts are amounts of £Nil (2022 - £868,567) in respect short-term import loans, these are secured by a fixed and floating charge over the assets of the company.
The bank overdraft is secured.
Amounts due under finance lease and hire purchase contracts are secured on the assets to which they relate.
Freehold property is secured by a debenture.
There is also an unlimited multilateral guarantee in place dated 1 August 2019 between R K Wholesale Limited, Sutton Venture Group Limited, Clearco Specialists Limited, Powerforce Distribution Limited and Sourcing Partner Limited.
18
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
20
724,771
496,168
Government grants
22
32,854
724,771
529,022
Amounts due under finance lease and hire purchase contracts are secured on the assets to which they relate.
19
Loans and overdrafts
2023
2022
£
£
Bank overdrafts and invoice discounting facilities
22,851,100
17,366,587
Payable within one year
22,851,100
17,366,587
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
- 29 -
20
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
387,169
256,392
In two to five years
724,771
496,168
1,111,940
752,560
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is three years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
21
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Deferred tax in relation to revalued freehold property
2,962,034
2,962,034
Deferred tax in relation to revalued intangible fixed assets
328,320
9,171,680
3,290,354
12,133,714
2023
Movements in the period:
£
Liability at 1 July 2022
12,133,714
Credit to other comprehensive income
(8,843,360)
Liability at 1 July 2023
3,290,354
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
- 30 -
22
Government grants
2023
2022
£
£
Arising from government grants
34,583
82,135
34,583
82,135
Deferred income is included in the financial statements as follows:
2023
2022
£
£
Current liabilities
34,583
49,281
Non-current liabilities
32,854
34,583
82,135
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
416,879
255,298
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
24
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
Each class of ordinary shares carry full voting, dividend and capital distribution rights.
25
Revaluation reserve
The revaluation reserve represents the excess of the fair value of assets over their book value.
26
Profit and loss reserves
The retained earnings reserve holds the retained earnings of the Company, after the deduction of any dividends paid in the period.
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
- 31 -
27
Guarantee
A guarantee has been given dated 04 November 2019 in favour of HMRC, which amounted to £100,000 at 1 July 2023 (2022: £100,000).
28
Events after the reporting date
After the period end the company re-financed its invoiced discounting and loan facilities with Close Brothers.
29
Related party transactions
Transactions with related parties
The company is a wholly owned subsidiary of Sutton Venture Group Limited and as such, has taken advantage of the exemption available not to disclose group transactions.
Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Entities over which the entity has control, joint control or significant influence
1,943,909
2,602,235
1,570,681
2,860,994
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
Entities over which the entity has control, joint control or significant influence
1,723,784
495,261
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Entities over which the entity has control, joint control or significant influence
11,672,868
8,818,009
30
Directors' transactions
Interest free loans have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director loan account
-
1,059,056
913,464
(1,750,000)
222,520
1,059,056
913,464
(1,750,000)
222,520
R K Wholesale Limited
Notes to the financial statements (continued)
For the period ended 1 July 2023
- 32 -
31
Ultimate controlling party
The ultimate parent company of R K Wholesale Limited is Sutton Venture Group Limited, incorporated in England and Wales.
The ultimate controlling party is considered to be Mr R Sutton by virtue that he is the majority shareholder in Sutton Venture Group Limited.
The largest and smallest group in which the results of the company are consolidated is that headed by Sutton Venture Group Limited, incorporated in England and Wales. The consolidated accounts of this company are available to the public and may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ. No other group accounts include the results of the company.
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