Company registration number 05984525 (England and Wales)
RAPPORT HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
RAPPORT HOLDINGS LIMITED
COMPANY INFORMATION
Directors
S S Virani
P B Virani
R J Virani
S R Virani
Secretary
R J Virani
Company number
05984525
Registered office
2nd Floor
Regis House
45 King William Street
London
United Kingdom
EC4R 9AN
Auditor
Azets Audit Services
2nd Floor
Regis House
45 King William Street
London
EC4R 9AN
RAPPORT HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8 - 9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 33
RAPPORT HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 1 -
The directors present the strategic report for the year ended 30 April 2023.
Review of the business
During the period, the group has reduced its turnover for the 12 month period to £5,226,565 (18 months to 30 April 2023: £13,313,639), which is still considered to be lower than expected, mainly due to the ongoing changes in customer base and the pressures of the cost of living crisis in the UK. This has resulted in a gross profit of £1,384,457 (18 months to 30 April 2023: £3,570,813) in the period, as margins on sales has reduced due to its change in customers. The group's administrative expenses have continued to decrease from last year which has resulted in a profit before tax (in relation to turnover) of 1% (18 Months to 30 April 2023: 30.21%).
The group has increased its reserves at the end of the year. The directors were satisfied with the position of the group at the year end.
Principal risks and uncertainties
The main risks and uncertainty perceived by the group are:
Exchange rate risk
A significant number of transactions are in foreign currency so any movement on the exchange rate can have an effect on the group.
Economic climate
The group is always clearly affected when there is a shift in the economic climate. Turnover fell during the last recession as household textiles are not considered a necessary commodity.
Other information and explanations
The company's financial instruments at the balance sheet date comprised cash and liquid resources. The main purpose of these financial instruments is to support the company's operations. The company has various other financial instruments such as trade debtors and trade creditors, which arise directly from its operations.
It is, and has been throughout the period under review, the company's policy that no trading in financial instruments shall be undertaken.
The main risks arising from the company's financial instruments are interest rate, exchange rate and liquidity risk:
Interest rate risk
The company has a policy to manage any exposure to interest rate fluctuations so as to finance its operations through retained profits.
Exchange rate risk
The company has a policy to manage any exposure to exchange rate fluctuations so as to finance its operations through retained profits.
Liquidity risk
The company has confirmed overdraft facilities which will enable the company to meet its liabilities as they fall due.
The company has no financial assets other than debtors, current asset investments and cash at the bank.
Borrowing facilities
The company has no undrawn committed borrowing facilities.
RAPPORT HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 2 -
R J Virani
Director
31 January 2024
RAPPORT HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 3 -
The directors present their annual report and financial statements for the year ended 30 April 2023.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
S S Virani
P B Virani
R J Virani
S R Virani
Results and dividends
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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
R J Virani
Director
31 January 2024
RAPPORT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RAPPORT HOLDINGS LIMITED
- 4 -
Opinion
We have audited the financial statements of Rapport Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 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 and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 April 2023 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
RAPPORT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RAPPORT HOLDINGS LIMITED
- 5 -
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 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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.
RAPPORT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RAPPORT HOLDINGS LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Rebecca Boys (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
12 February 2024
Chartered Accountants
Statutory Auditor
2nd Floor
Regis House
45 King William Street
London
EC4R 9AN
RAPPORT HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023
- 7 -
Year
Period
ended
ended
30 April
30 April
2023
2022
as restated
Notes
£
£
Turnover
3
5,226,565
13,313,639
Cost of sales
(3,842,108)
(9,742,826)
Gross profit
1,384,457
3,570,813
Administrative expenses
(1,574,593)
(4,505,214)
Other operating income
219,201
402,409
Operating profit/(loss)
4
29,065
(531,992)
Interest receivable and similar income
8
4,955
3,224,605
Interest payable and similar expenses
9
(1,010)
(1,825)
Gains and losses on investments
10
9,019
(44,431)
Fair value gains and losses on revaluation of assets
15
2,450,000
Profit before taxation
42,029
5,096,357
Tax on profit
11
6,433
(1,074,392)
Profit for the financial year
30
48,462
4,021,965
Other comprehensive income
Revaluation of tangible fixed assets
1,382,000
Tax relating to other comprehensive income
(335,545)
Total comprehensive income for the year
48,462
5,068,420
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
RAPPORT HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2023
30 April 2023
- 8 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
13
38,181
30,874
Tangible assets
14
3,239,415
3,317,427
Investment properties
15
5,200,000
5,200,000
Investments
16
1,241
3,894
8,478,837
8,552,195
Current assets
Stocks
18
1,207,784
2,312,019
Debtors
19
727,281
722,938
Investments
20
2,598,594
2,623,645
Cash at bank and in hand
2,148,386
1,865,864
6,682,045
7,524,466
Creditors: amounts falling due within one year
21
(2,660,730)
(3,609,958)
Net current assets
4,021,315
3,914,508
Total assets less current liabilities
12,500,152
12,466,703
Creditors: amounts falling due after more than one year
22
-
(6,013)
Provisions for liabilities
Deferred tax liability
24
1,083,484
1,092,484
(1,083,484)
(1,092,484)
Net assets
11,416,668
11,368,206
Capital and reserves
Called up share capital
26
960
960
Revaluation reserve
27
1,796,119
1,796,119
Capital redemption reserve
28
16
16
Fair value reserve
29
3,161,525
3,161,525
Profit and loss reserve
30
6,458,048
6,409,586
Total equity
11,416,668
11,368,206
RAPPORT HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2023
30 April 2023
- 9 -
The financial statements were approved by the board of directors and authorised for issue on 31 January 2024 and are signed on its behalf by:
31 January 2024
S S Virani
P B Virani
Director
Director
RAPPORT HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2023
30 April 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Investments
16
80,100
80,100
Current assets
Debtors
19
515,000
475,000
Creditors: amounts falling due within one year
21
(520,124)
(480,124)
Net current liabilities
(5,124)
(5,124)
Net assets
74,976
74,976
Capital and reserves
Called up share capital
26
960
960
Capital redemption reserve
28
16
16
Profit and loss reserve
30
74,000
74,000
Total equity
74,976
74,976
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 year was £0 (2022 - £1,000,000 profit).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 31 January 2024 and are signed on its behalf by:
31 January 2024
S S Virani
P B Virani
Director
Director
Company Registration No. 05984525
RAPPORT HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 11 -
Share capital
Revaluation reserve
Capital redemption reserve
Fair value reserve
Profit and loss reserve
Total
Notes
£
£
£
£
£
£
As restated for the period ended 30 April 2022:
Balance at 1 November 2020
960
2,101,279
16
1,351,615
5,197,531
8,651,401
Effect of change in accounting policy
-
(1,351,615)
-
-
-
(1,351,615)
As restated
960
749,664
16
1,351,615
5,197,531
7,299,786
Period ended 30 April 2022:
Profit for the period
-
-
-
1,809,910
2,212,055
4,021,965
Other comprehensive income:
Revaluation of tangible fixed assets
-
1,382,000
-
-
-
1,382,000
Tax relating to other comprehensive income
-
(335,545)
-
-
(335,545)
Total comprehensive income
-
1,046,455
-
1,809,910
2,212,055
5,068,420
Dividends
12
-
-
-
-
(1,000,000)
(1,000,000)
Balance at 30 April 2022
960
1,796,119
16
3,161,525
6,409,586
11,368,206
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
-
-
48,462
48,462
Balance at 30 April 2023
960
1,796,119
16
3,161,525
6,458,048
11,416,668
RAPPORT HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserve
Total
Notes
£
£
£
£
As restated for the period ended 30 April 2022:
Balance at 1 November 2020
960
16
74,000
74,976
Period ended 30 April 2022:
Profit and total comprehensive income for the period
-
-
1,000,000
1,000,000
Dividends
12
-
-
(1,000,000)
(1,000,000)
Balance at 30 April 2022
960
16
74,000
74,976
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
-
Balance at 30 April 2023
960
16
74,000
74,976
RAPPORT HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2023
- 13 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
37
779,263
(1,943,081)
Interest paid
(1,010)
(1,825)
Income taxes paid
(515,646)
(291,940)
Net cash inflow/(outflow) from operating activities
262,607
(2,236,846)
Investing activities
Purchase of intangible assets
(16,523)
(30,874)
Purchase of tangible fixed assets
(1,896)
(125,830)
Proceeds from disposal of tangible fixed assets
14,410
11,260
Proceeds from disposal of investment property
-
801,324
Proceeds from disposal of joint ventures
2,653
560,007
Proceeds from disposal of investments
27,241
(2,239,850)
Interest received
20,687
35
Other income received from investments
(15,732)
3,224,570
Net cash generated from investing activities
30,840
2,200,642
Financing activities
Payment of finance leases obligations
(10,925)
(24,106)
Dividends paid to equity shareholders
(1,000,000)
Net cash used in financing activities
(10,925)
(1,024,106)
Net increase/(decrease) in cash and cash equivalents
282,522
(1,060,310)
Cash and cash equivalents at beginning of year
1,865,864
2,926,174
Cash and cash equivalents at end of year
2,148,386
1,865,864
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 14 -
1
Accounting policies
Company information
The Company is a private company limited by shares and is incorporated in England. The registered office is 2nd Floor, Regis House, 45 King William Street, London, EC4R 9AN and its principal place of business is 23 Cosgrove Way, Luton, Bedfordshire, LU1 1XL.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The 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 for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
Basis of Consolidation
The consolidated financial statements incorporate the financial statements of Rapport Holdings Limited and its subsidiaries controlled by the group. Control is achieved where the group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries which are acquired or disposed of during the year are included in total comprehensive income from the date of acquisition and to the date of disposal applying accounting policies that are consistent with the group. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.
The parent company has taken advantage of section 408 of the Companies Act 2006 and has not included its own income statement in these financial statements.
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 15 -
1.2
Going concern
The directors have considered trading up to the date of signing these financial statements and to date revenues have proved resilient.
The directors have also considered the certainty of future cash flows in light of rising inflation for 2023/2024.
At the time of approving the financial statements, the directors have a reasonable expectation that the company and the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
Turnover relates to the sale of home textiles.
1.4
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:
Software
3 years straight line
1.5
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% on revalued balance
Plant and equipment
25% on reducing balance
Fixtures and fittings
25% on reducing balance
Motor vehicles
20% on cost
1.6
Investment properties
Investment property is carried at fair value and any aggregated surplus or deficit arising from changes in fair value is recognised in the income statement. Deferred tax is provided on these gains at the rate expected to apply when the property is sold.
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 16 -
1.7
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.
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.
1.9
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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from 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
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.
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.10
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.
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.
1.11
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.
The group operates an annual bonus plan for its employees. An expense is recognised in the income statement when the group has a legal or constructive obligation to make payment under the bonus plan as a result of past events and a reliable estimate of the obligation can be made.
1.12
Retirement benefits
The group contributes to defined contribution plans for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid, the group has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the statement of financial position. The assets of the plan are held separately from the group in independently administered funds.
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 18 -
1.13
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
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.
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 19 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Impairment of debtors
The group makes an estimate of the recoverable value of its debtors, including inter-company and other debtors. When assessing impairment of debtors, management considers factors including any history of non-payment by the counter-party or any other factors which indicate that they may not be able to settle their obligation to the group in full.
Impairment of inventories
The group makes an estimate of the stock obsolescence. When assessing the impairment of inventories, management considers factors including future selling price of stock and expected demand and best before dates of goods for resale.
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect our current estimates, based on technological advancement future investments, economic utilisation and the physical condition of the assets.
Impairment of intangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect our current estimates, based on technological advancement future investments, economic utilisation and the physical condition of the assets.
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.
Valuation of investment property
The company uses valuations performed by the directors for the basis of the fair value of its investment properties. The investment property valuation as at 30 April 2023, reflect matters such as tenure and tenancy details, prevailing market yields and comparable market transactions.
3
Turnover
The turnover and profit before taxation are attributable to the one principal activity of the group.
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
3
Turnover
(Continued)
- 20 -
2023
2022
£
£
Turnover analysed by geographical market
UK
4,300,831
12,228,943
Europe
925,734
1,084,696
5,226,565
13,313,639
4
Operating profit/(loss)
2023
2022
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
213,741
(26,345)
Job retention scheme
-
(104,158)
Depreciation of owned tangible fixed assets
54,477
72,583
Depreciation of tangible fixed assets held under finance leases
22,904
43,937
Profit on disposal of tangible fixed assets
(11,883)
(11,260)
Amortisation of intangible assets
9,216
-
The company qualified for the government job retention scheme to furlough a number of employees for the period November 2020 to September 2021.
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
3,250
3,250
Audit of the financial statements of the company's subsidiaries
31,180
31,180
34,430
34,430
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 21 -
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
Management
10
10
-
-
Employees
30
31
-
-
Total
40
41
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
752,526
1,275,150
Social security costs
70,518
124,784
-
-
Pension costs
43,637
109,923
866,681
1,509,857
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
104,006
125,783
Company pension contributions to defined contribution schemes
-
40,000
104,006
165,783
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
20,687
35
Income from fixed asset investments
Income from participating interests - associates
20,217
12,232
Income from participating interests - joint ventures
3,184,953
Income from other fixed asset investments
(35,949)
27,385
Total income
4,955
3,224,605
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 22 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on finance leases and hire purchase contracts
1,010
1,825
10
Gains and losses on investments
2023
2022
£
£
Other gains and losses
9,019
(44,431)
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
17,302
374,278
Adjustments in respect of prior periods
(14,735)
(12,865)
Total current tax
2,567
361,413
Deferred tax
Origination and reversal of timing differences
(9,000)
712,979
Total tax (credit)/charge
(6,433)
1,074,392
The actual (credit)/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
42,029
5,096,357
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
7,986
968,308
Tax effect of expenses that are not deductible in determining taxable profit
3,257
1,722
Tax effect of income not taxable in determining taxable profit
(7,458)
Effect of change in corporation tax rate
245
-
Permanent capital allowances in excess of depreciation
5,814
(20,816)
Under/(over) provided in prior years
(14,735)
(12,865)
Deferred tax adjustments in respect of prior years
(9,000)
712,979
Capital gains on sale of investments
(101,978)
Fair value movements on investment property
(465,500)
Taxation (credit)/charge
(6,433)
1,074,392
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
11
Taxation
(Continued)
- 23 -
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
£
£
Deferred tax arising on:
Revaluation of property
-
335,545
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
-
1,000,000
13
Intangible fixed assets
Group
Software
£
Cost
At 1 May 2022
30,874
Additions
16,523
At 30 April 2023
47,397
Amortisation and impairment
At 1 May 2022
Amortisation charged for the year
9,216
At 30 April 2023
9,216
Carrying amount
At 30 April 2023
38,181
At 30 April 2022
30,874
The company had no intangible fixed assets at 30 April 2023 or 30 April 2022.
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 24 -
14
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 May 2022
3,132,000
44,855
311,314
371,032
3,859,201
Additions
1,896
1,896
Disposals
(31,936)
(31,936)
At 30 April 2023
3,132,000
44,855
313,210
339,096
3,829,161
Depreciation and impairment
At 1 May 2022
35,000
38,823
263,758
204,193
541,774
Depreciation charged in the year
1,508
11,082
64,791
77,381
Eliminated in respect of disposals
(29,409)
(29,409)
At 30 April 2023
35,000
40,331
274,840
239,575
589,746
Carrying amount
At 30 April 2023
3,097,000
4,524
38,370
99,521
3,239,415
At 30 April 2022
3,097,000
6,032
47,556
166,839
3,317,427
The company had no tangible fixed assets at 30 April 2023 or 30 April 2022.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
25,914
51,346
Freehold land and buildings was valued at the fair value by the directors based on third party external valuations and recent market transactions on arm's length terms for similar properties.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £175,000 (2022 - £175,000).
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 25 -
15
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 May 2022
5,202,190
-
Disposals
(2,190)
-
At 30 April 2023
5,200,000
-
The company's investment freehold property is valued at the year end by the board of directors at open market value taking account of rental yield in conjunction with professional valuers. Any surplus/deficit is recognised in the statement of comprehensive income.
Historical cost is £2,034,428 (2022: £2,034,428).
The carrying value of land and buildings comprises:
Group
Company
2023
2022
2023
2022
£
£
£
£
Freehold
5,200,000
5,200,000
-
-
16
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
17
80,100
80,100
Investments in joint ventures
2,653
Unlisted investments
1,241
1,241
1,241
3,894
80,100
80,100
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
16
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Group
Shares in group undertakings and participating interests
Other investments other than loans
Total
£
£
£
Cost or valuation
At 1 May 2022 and 30 April 2023
2,653
1,241
3,894
Impairment
At 1 May 2022
-
-
-
Disposals
2,653
-
2,653
At 30 April 2023
2,653
-
2,653
Carrying amount
At 30 April 2023
-
1,241
1,241
At 30 April 2022
2,653
1,241
3,894
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 May 2022 and 30 April 2023
80,100
Carrying amount
At 30 April 2023
80,100
At 30 April 2022
80,100
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 27 -
17
Subsidiaries
Details of the company's subsidiaries at 30 April 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Virsons Ltd
2nd Floor, Regis House, 45 King William Street, London EC4R 9AN
Ordinary Shares
100.00
Rapport Home Furnishings Ltd
2nd Floor, Regis House, 45 King William Street, London EC4R 9AN
Ordinary Shares
100.00
18
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
1,207,784
2,312,019
An impairment loss of £2,101,307 (2022: £2,503,929) was recognised in cost of sales against stock during the period due to slow-moving and obsolete stock.
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
535,148
621,549
Corporation tax recoverable
154,234
8,497
Amounts owed by group undertakings
-
-
515,000
475,000
Other debtors
37,899
92,892
727,281
722,938
515,000
475,000
20
Current asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Listed investments
2,598,594
2,623,645
-
-
The historical cost value of the current asset investments is £2,617,644 (2022: £2,650,403).
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 28 -
21
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
23
5,404
10,316
Trade creditors
462,924
351,770
Corporation tax payable
17,302
384,644
Other taxation and social security
95,026
100,802
-
-
Other creditors
2,030,074
2,118,736
520,124
480,124
Accruals and deferred income
50,000
643,690
2,660,730
3,609,958
520,124
480,124
22
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
23
6,013
23
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
8,194
10,925
In two to five years
8,914
8,194
19,839
-
-
Less: future finance charges
(2,790)
(3,510)
5,404
16,329
Finance lease payments represent rentals payable by the company or group 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 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 29 -
24
Deferred taxation
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
52,000
61,000
Investment property
1,031,484
1,031,484
1,083,484
1,092,484
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 May 2022
1,092,484
-
Credit to profit or loss
(9,000)
-
Liability at 30 April 2023
1,083,484
-
25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
43,637
109,923
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.
26
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary C shares of £1 each
160
160
160
160
Ordinary A shares of £1 each
800
800
800
800
960
960
960
960
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 30 -
27
Revaluation reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
Prior year adjustment
-
(1,351,615)
-
-
At the beginning of the year
1,796,119
749,664
Revaluation surplus arising in the year
1,382,000
Deferred tax on revaluation of tangible assets
-
(335,545)
-
-
At the end of the year
1,796,119
1,796,119
-
28
Capital redemption reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
16
16
16
16
29
Fair value reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
3,161,525
1,351,615
-
-
Fair value transfer
-
1,809,910
-
-
At the end of the year
3,161,525
3,161,525
-
-
30
Profit and loss reserve
Group
Company
2023
2022
2023
2022
as restated
as restated
£
£
£
£
At the beginning of the year
6,452,507
3,845,916
74,000
74,000
Prior year adjustment
(42,921)
-
-
-
As restated
6,409,586
5,197,531
74,000
74,000
Profit for the year
48,462
4,021,965
1,000,000
Current year profits transferred to non-distributable reserve
-
(1,809,910)
-
-
Dividends
-
(1,000,000)
-
(1,000,000)
At the end of the year
6,458,048
6,409,586
74,000
74,000
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 31 -
31
Financial commitments, guarantees and contingent liabilities
The group has contingent liabilities in respect of a duty deferment guarantee of £50,000 (2022: £50,000) in favour of HM Revenue and Customs.
The group operates under a cross guarantee and debenture dated 22 September 2020 given by Virsons Ltd, Rapport Holdings Limited and Rapport Home Furnishings Limited.
32
Operating lease commitments
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
95,708
80,403
-
-
Between two and five years
160,767
213,996
-
-
256,475
294,399
-
-
33
Capital commitments
Amounts contracted for but not provided in the financial statements:
Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of intangible assets
-
21,885
-
-
34
Ultimate parent company
The group is controlled by the directors, by virtue of their controlling interest in the company's share capital.
35
Related party transactions
Remuneration of key management personnel
During the period, a total of key management personnel of £110,842 (2022: £165,283) was paid.
Transactions with related parties
The group received a profit share of £nil (2022: £128,488) during the prior year from Virko Properties. The group held a controlling interest in this unincorporated joint venture.
Other information
The RajVir Foundation
During the year, the company paid a donation totalling £nil (2022: £1,006,000) to The RajVir Foundation, a charitable company in which P B Virani, R J Virani and S S Virani are also directors.
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 32 -
36
Directors' transactions
Dividends totalling £0 (2022 - £550,000) were paid in the year in respect of shares held by the company's directors.
At the balance sheet date, the directors were owed £20,000 (2022: £550,000) from the group.
37
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
48,462
4,021,965
Adjustments for:
Taxation (credited)/charged
(6,433)
1,074,392
Finance costs
1,010
1,825
Investment income
(4,955)
(3,224,605)
Gain on disposal of tangible fixed assets
(11,883)
(11,260)
Fair value gain on investment properties
(2,450,000)
Amortisation and impairment of intangible assets
9,216
-
Depreciation and impairment of tangible fixed assets
77,381
116,520
Other gains and losses
-
44,431
Movements in working capital:
Decrease/(increase) in stocks
1,104,235
(582,402)
Decrease in debtors
139,204
1,158,044
Decrease in creditors
(576,974)
(2,091,991)
Cash generated from/(absorbed by) operations
779,263
(1,943,081)
38
Analysis of changes in net funds - group
1 May 2022
Cash flows
30 April 2023
£
£
£
Cash at bank and in hand
1,865,864
282,522
2,148,386
Obligations under finance leases
(16,329)
10,925
(5,404)
1,849,535
293,447
2,142,982
39
Prior period adjustment
The results for the period ended 30 April 2022, have been amended to reflect the reclassifcation of loans made in relation to property investments in which the company has an interest, and the subsequent impairment of those balances.
The impact to the Statement of Comprehensive Income increased administrative expenditure by £788,620 and reduced amounts written off investments by £788,620. There was no impact on net profit for the year. Deferred taxation was reduced by £197,155 and corporation tax was reduced by 154,234 in relation to the change in treatment of the investments.
RAPPORT HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
39
Prior period adjustment
(Continued)
- 33 -
Reconciliation of changes in equity - group
1 November
30 April
2020
2022
£
£
Adjustments to prior year
Release of deferred taxation
-
(197,155)
Change in corporation tax charge
-
154,234
Total adjustments
-
(42,921)
Equity as previously reported
7,299,786
11,411,127
Equity as adjusted
7,299,786
11,368,206
Analysis of the effect upon equity
Equity reserve
-
(42,921)
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Release of deferred taxation
(197,155)
Change in corporation tax charge
154,234
Total adjustments
(42,921)
Profit as previously reported
4,064,886
Profit as adjusted
4,021,965
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Total adjustments
-
Profit as previously reported
1,000,000
Profit as adjusted
1,000,000
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