Company registration number 01279536 (England and Wales)
RAYTEL GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
RAYTEL GROUP LIMITED
COMPANY INFORMATION
Directors
Mrs E C Biddle
Mr D G Brookes
Mrs F T Hoare Lawrence
Mr R Lawrence
Secretary
Mrs E C Biddle
Company number
01279536
Registered office
Raytel House
1-5 Cutlers Road
South Woodham Ferrers
Chelmsford
Essex
United Kingdom
CM3 5WA
Auditor
Azets Audit Services
7 - 8 Britannia Business Park
Comet Way
Southend-On-Sea
Essex
United Kingdom
SS2 6GE
RAYTEL GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9 - 10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 32
RAYTEL GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The directors present the strategic report for the year ended 30 June 2023.

Review of the business

We are pleased to report that the strong growth reported last year has continued throughout the current financial year thanks to another excellent performance by Rayleigh Instruments Ltd both in export and our UK markets and continued stabilisation within Raytel Security Systems Ltd.

We are continuing to fund this growth from our existing resources and with continued strict financial management and a broad spread of products and markets, we are not aware of any reason why this should not continue throughout the new financial year.

 

Principal risks and uncertainties

Government legislation continuing to increase the financial burden on businesses will always present a major challenge as will any interruption in the supply chain, loss of several major customers and/or export markets. Otherwise, the directors have confidence that the Group will continue to grow strongly in the foreseeable future.

 

Key performance indicators

There are three key performance indicators that highlight the groups result for the year:

2023                 2022

Turnover         £19.4m                 £10.6m                 Gross Profit         32%                 35%                 Profit before tax         10%                 4%    

On behalf of the board

Mr R Lawrence
Director
29 February 2024
RAYTEL GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -

The directors present their annual report and financial statements for the year ended 30 June 2023.

Principal activities

The principal activity of the company and group continued to be that of design, development and supply of control instruments and security systems.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £156,200. The directors do not recommend payment of a further dividend.

Directors

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

Mrs E C Biddle
Mr D G Brookes
Mrs F T Hoare Lawrence
Mr R Lawrence
Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.

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:

 

 

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.

RAYTEL GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
On behalf of the board
Mr R Lawrence
Director
29 February 2024
RAYTEL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RAYTEL GROUP LIMITED
- 4 -
Opinion

We have audited the financial statements of Raytel Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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.

Other information

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

RAYTEL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RAYTEL GROUP 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:

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.

RAYTEL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RAYTEL GROUP 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:

 

 

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.

Use of our report

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

Adam Hubbard BA(Hon) FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
29 February 2024
Chartered Accountants
Statutory Auditor
7 - 8 Britannia Business Park
Comet Way
Southend-On-Sea
Essex
United Kingdom
SS2 6GE
RAYTEL GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
19,398,587
10,567,640
Cost of sales
(13,214,479)
(6,862,493)
Gross profit
6,184,108
3,705,147
Distribution costs
(43,916)
(33,384)
Administrative expenses
(4,119,438)
(3,229,823)
Operating profit
4
2,020,754
441,940
Interest receivable and similar income
9,107
8,000
Interest payable and similar expenses
8
(68,491)
(54,333)
Profit before taxation
1,961,370
395,607
Tax on profit
9
(310,311)
(86,963)
Profit for the financial year
1,651,059
308,644
Profit for the financial year is attributable to:
- Owners of the parent company
1,627,756
294,213
- Non-controlling interests
23,303
14,431
1,651,059
308,644
RAYTEL GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
2023
2022
£
£
Profit for the year
1,651,059
308,644
Other comprehensive income
Currency translation gain/(loss) taken to retained earnings
2,856
(1,033)
Total comprehensive income for the year
1,653,915
307,611
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,630,612
293,180
- Non-controlling interests
23,303
14,431
1,653,915
307,611
RAYTEL GROUP LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
408,717
431,423
Other intangible assets
12
64,129
27,579
Total intangible assets
472,846
459,002
Tangible assets
13
1,579,296
1,653,798
2,052,142
2,112,800
Current assets
Stocks
16
1,917,933
1,293,919
Debtors
17
2,275,519
2,955,783
Cash at bank and in hand
1,854,209
649,385
6,047,661
4,899,087
Creditors: amounts falling due within one year
18
(2,138,790)
(2,365,528)
Net current assets
3,908,871
2,533,559
Total assets less current liabilities
5,961,013
4,646,359
Creditors: amounts falling due after more than one year
19
(409,551)
(573,551)
Provisions for liabilities
Deferred tax liability
2,050
12,978
(2,050)
(12,978)
Net assets
5,549,412
4,059,830
Capital and reserves
Called up share capital
22
1,950,000
1,950,000
Capital redemption reserve
25,000
25,000
Profit and loss reserves
3,503,098
2,028,686
Equity attributable to owners of the parent company
5,478,098
4,003,686
Non-controlling interests
71,314
56,144
5,549,412
4,059,830
RAYTEL GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2023
30 June 2023
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 29 February 2024 and are signed on its behalf by:
29 February 2024
Mr R  Lawrence
Director
Company registration number 01279536 (England and Wales)
RAYTEL GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,551,095
1,601,883
Investments
14
2,000,000
2,000,000
3,551,095
3,601,883
Current assets
Stocks
16
200,436
308,745
Debtors
17
458,242
280,125
Cash at bank and in hand
538,300
315,249
1,196,978
904,119
Creditors: amounts falling due within one year
18
(1,562,210)
(1,199,882)
Net current liabilities
(365,232)
(295,763)
Total assets less current liabilities
3,185,863
3,306,120
Creditors: amounts falling due after more than one year
19
(409,551)
(573,551)
Net assets
2,776,312
2,732,569
Capital and reserves
Called up share capital
22
1,950,000
1,950,000
Capital redemption reserve
25,000
25,000
Profit and loss reserves
801,312
757,569
Total equity
2,776,312
2,732,569

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 £199,942 (2022 - £207,058 profit).

The financial statements were approved by the board of directors and authorised for issue on 29 February 2024 and are signed on its behalf by:
29 February 2024
Mr R  Lawrence
Director
Company registration number 01279536 (England and Wales)
RAYTEL GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 July 2021
1,950,000
25,000
1,852,506
3,827,506
2,770
3,830,276
Year ended 30 June 2022:
Profit for the year
-
-
294,213
294,213
14,431
308,644
Other comprehensive income:
Currency translation differences
-
-
(1,033)
(1,033)
-
(1,033)
Total comprehensive income
-
-
293,180
293,180
14,431
307,611
Dividends
11
-
-
(117,000)
(117,000)
-
(117,000)
Other movements
-
-
-
-
38,943
38,943
Balance at 30 June 2022
1,950,000
25,000
2,028,686
4,003,686
56,144
4,059,830
Year ended 30 June 2023:
Profit for the year
-
-
1,627,756
1,627,756
23,303
1,651,059
Other comprehensive income:
Currency translation differences
-
-
2,856
2,856
-
2,856
Total comprehensive income
-
-
1,630,612
1,630,612
23,303
1,653,915
Dividends
11
-
-
(156,200)
(156,200)
-
(156,200)
Other movements
-
-
-
-
(8,133)
(8,133)
Balance at 30 June 2023
1,950,000
25,000
3,503,098
5,478,098
71,314
5,549,412
RAYTEL GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2021
1,950,000
25,000
667,510
2,642,510
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
-
207,059
207,059
Dividends
11
-
-
(117,000)
(117,000)
Balance at 30 June 2022
1,950,000
25,000
757,569
2,732,569
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
199,943
199,943
Dividends
11
-
-
(156,200)
(156,200)
Balance at 30 June 2023
1,950,000
25,000
801,312
2,776,312
RAYTEL GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
2,747,784
(174,162)
Interest paid
(68,491)
(54,333)
Income taxes paid
(263,687)
(117,166)
Net cash inflow/(outflow) from operating activities
2,415,606
(345,661)
Investing activities
Purchase of intangible assets
(60,512)
-
Purchase of tangible fixed assets
(584)
(898)
Purchase of subsidiaries
-
(219,497)
Receipts arising from loans made
(910)
4,750
Interest received
9,107
8,000
Net cash used in investing activities
(52,899)
(207,645)
Financing activities
Proceeds from borrowings
-
595,333
Repayment of borrowings
(832,406)
-
Repayment of bank loans
(164,000)
(104,938)
Dividends paid to equity shareholders
(156,200)
(117,000)
Net cash (used in)/generated from financing activities
(1,152,606)
373,395
Net increase/(decrease) in cash and cash equivalents
1,210,101
(179,911)
Cash and cash equivalents at beginning of year
649,385
790,353
Effect of foreign exchange rates
(5,277)
38,943
Cash and cash equivalents at end of year
1,854,209
649,385
RAYTEL GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
68,565
(179,028)
Interest paid
(31,176)
(39,567)
Income taxes paid
(2,138)
(3,325)
Net cash inflow/(outflow) from operating activities
35,251
(221,920)
Investing activities
Interest received
8,000
8,000
Dividends received
500,000
300,700
Net cash generated from investing activities
508,000
308,700
Financing activities
Repayment of bank loans
(164,000)
(104,938)
Dividends paid to equity shareholders
(156,200)
(117,000)
Net cash used in financing activities
(320,200)
(221,938)
Net increase/(decrease) in cash and cash equivalents
223,051
(135,158)
Cash and cash equivalents at beginning of year
315,249
450,407
Cash and cash equivalents at end of year
538,300
315,249
RAYTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -
1
Accounting policies
Company information

Raytel Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Raytel House, 1-5 Cutlers Road, South Woodham Ferrers, Chelmsford, Essex, United Kingdom, CM3 5WA.

 

The group consists of Raytel Group Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

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

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Raytel Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

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

 

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

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

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that 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.

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

1.5
Research and development expenditure

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

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

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

 

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

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
Over 3 years
1.8
Tangible fixed assets

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

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
Straight line over 50 years
Plant and equipment
20% on cost
Fixtures and fittings
20% on cost
Computers
33% straight line

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

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.10
Impairment of fixed assets

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

 

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

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

 

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

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

RAYTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 19 -
1.11
Stocks

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

 

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.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

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

RAYTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 20 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

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

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

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

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

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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

 

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

1.17
Retirement benefits

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

1.18
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

RAYTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 22 -
1.19
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

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

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods and rendering of services
19,398,587
10,567,640
2023
2022
£
£
Other revenue
Interest income
9,107
8,000
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(241,785)
26,742
Research and development costs
264,901
160,933
Depreciation of owned tangible fixed assets
75,086
75,088
Amortisation of intangible assets
46,668
34,857
Operating lease charges
125,530
89,600
RAYTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 23 -
5
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
Production, sales and administration
62
62
23
24

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,492,627
1,950,126
745,110
682,646
Social security costs
319,469
208,197
92,935
70,688
Pension costs
42,408
37,636
9,798
11,400
2,854,504
2,195,959
847,843
764,734
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
357,535
346,991

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
105,457
136,608
7
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
18,000
14,000
For other services
All other non-audit services
8,220
-
RAYTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 24 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
46,925
38,667
Dividends on redeemable preference shares not classified as equity
900
900
47,825
39,567
Other finance costs:
Other interest
20,666
14,766
Total finance costs
68,491
54,333
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
307,067
85,152
Foreign current tax on profits for the current period
10,398
3,375
Total current tax
317,465
88,527
Deferred tax
Origination and reversal of timing differences
(7,154)
(1,564)
Total tax charge
310,311
86,963
RAYTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
9
Taxation
(Continued)
- 25 -

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

2023
2022
£
£
Profit before taxation
1,961,370
395,607
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
490,343
75,165
Tax effect of expenses that are not deductible in determining taxable profit
25,306
27,085
Tax effect of income not taxable in determining taxable profit
(125,000)
(133)
Tax effect of utilisation of tax losses not previously recognised
(14,841)
-
0
Effect of change in corporation tax rate
70,581
-
Permanent capital allowances in excess of depreciation
(2,160)
(1,122)
Other non-reversing timing differences
15,000
1,900
Patent Box and Research & development enhanced relief
(133,249)
(11,310)
Effect of overseas subsidiaries included in consolidation
(8,515)
(3,058)
Deferred tax movement
(7,154)
(1,564)
Taxation charge
310,311
86,963
10
Individual Income Statement

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

11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
156,200
117,000
RAYTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
12
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 July 2022
454,129
39,730
493,859
Additions - business combinations
-
0
60,512
60,512
At 30 June 2023
454,129
100,242
554,371
Amortisation and impairment
At 1 July 2022
22,706
12,151
34,857
Amortisation charged for the year
22,706
23,962
46,668
At 30 June 2023
45,412
36,113
81,525
Carrying amount
At 30 June 2023
408,717
64,129
472,846
At 30 June 2022
431,423
27,579
459,002
The company had no intangible fixed assets at 30 June 2023 or 30 June 2022.
13
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 July 2022
1,924,370
384,021
87,964
44,138
2,440,493
Additions
-
0
584
-
0
-
0
584
At 30 June 2023
1,924,370
384,605
87,964
44,138
2,441,077
Depreciation and impairment
At 1 July 2022
347,494
332,106
87,964
19,131
786,695
Depreciation charged in the year
38,292
24,298
-
0
12,496
75,086
At 30 June 2023
385,786
356,404
87,964
31,627
861,781
Carrying amount
At 30 June 2023
1,538,584
28,201
-
0
12,511
1,579,296
At 30 June 2022
1,576,876
51,915
-
0
25,007
1,653,798
RAYTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
13
Tangible fixed assets
(Continued)
- 27 -
Company
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 July 2022 and 30 June 2023
1,924,370
190,265
72,835
44,075
2,231,545
Depreciation and impairment
At 1 July 2022
347,494
190,265
72,835
19,068
629,662
Depreciation charged in the year
38,292
-
0
-
0
12,496
50,788
At 30 June 2023
385,786
190,265
72,835
31,564
680,450
Carrying amount
At 30 June 2023
1,538,584
-
0
-
0
12,511
1,551,095
At 30 June 2022
1,576,876
-
0
-
0
25,007
1,601,883
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
2,000,000
2,000,000

Rayleigh Instruments Sp. z o.o, a subsidary undertaking with a carrying value of £7,168, has been dissolved after the balance sheet date.

Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022 and 30 June 2023
2,000,000
Carrying amount
At 30 June 2023
2,000,000
At 30 June 2022
2,000,000
15
Subsidiaries

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

RAYTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
15
Subsidiaries
(Continued)
- 28 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Rayleigh Instruments Limited
Raytel House, 1-5 Cutlers Road, South Woodham Ferrers, Essex, CM3 5WA
Ordinary
100.00
-
Raytel Security Systems Limited
Raytel House, 1-5 Cutlers Road, South Woodham Ferrers, Essex, CM3 5WA
Ordinary
100.00
-
Elektroflo Limited
Raytel House, 1-5 Cutlers Road, South Woodham Ferrers, Essex, CM3 5WA
Ordinary
100.00
-
Rayleigh Instruments Sp. Z o. o.
Warszawie, Aleje Jerozolimskie 214
Ordinary
-
51.00
Uxeon Sp. Z o. o.
Warszawie, Aleje Jerozolimskie 214
Ordinary
-
51.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Rayleigh Instruments Limited
5,443,078
1,875,645
Raytel Security Systems Limited
253,799
48,145
Elektroflo Limited
2
Rayleigh Instruments Sp. Z o. o.
(3,215)
(5,869)
Uxeon Sp. Z o. o.
165,352
70,024
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
1,054,650
1,145,886
200,436
308,745
Work in progress
863,283
148,033
-
-
1,917,933
1,293,919
200,436
308,745
RAYTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 29 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,961,322
2,620,049
6
6
Corporation tax recoverable
7,460
7,153
-
0
-
0
Amounts owed by group undertakings
-
-
194,351
-
Other debtors
99,166
117,236
63,885
80,119
2,067,948
2,744,438
258,242
80,125
Deferred tax asset (note 8 )
7,571
11,345
-
0
-
0
2,075,519
2,755,783
258,242
80,125
Amounts falling due after more than one year:
Other debtors
200,000
200,000
200,000
200,000
Total debtors
2,275,519
2,955,783
458,242
280,125
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
115,589
115,589
115,589
115,589
Other borrowings
20
10,000
842,406
10,000
10,000
Trade creditors
847,364
588,147
214,127
166,617
Amounts owed to group undertakings
-
0
-
0
1,040,573
710,273
Corporation tax payable
141,375
87,290
-
0
2,138
Other taxation and social security
434,349
440,208
61,477
105,802
Other creditors
547,398
256,796
120,444
89,463
Accruals and deferred income
42,715
35,092
-
0
-
0
2,138,790
2,365,528
1,562,210
1,199,882
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
409,551
573,551
409,551
573,551
RAYTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
19
Creditors: amounts falling due after more than one year
(Continued)
- 30 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
165,227
224,369
165,227
224,369
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
525,140
689,140
525,140
689,140
Preference shares
10,000
10,000
10,000
10,000
Other loans
-
0
832,406
-
0
-
0
535,140
1,531,546
535,140
699,140
Payable within one year
125,589
957,995
125,589
125,589
Payable after one year
409,551
573,551
409,551
573,551

The bank loan relates to the mortgage held on the freehold property together with all buildings & fixtures (including trade fixtures) with Lloyds TSB Bank plc.

 

The other loan balances relates to invoices factoring accounts with Lloyds TSB Commercial Financial Limited.

 

All loans are secured by way of fixed & floating charges over fixed plant & machinery, all present & future book & other debts, all moveable plant & machinery, implements, utensils, furniture & equipment along with the Goodwill of the business and the full benefit of all licences & guarantees.

 

The preference shares carry a cumulative right to dividends. The preference shareholder have no rights in the event of a winding up beyond arrears of dividend and repayment of capital. They have no right to vote except on the winding up of the company, or on a proposed modification of the rights to their shares.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
42,408
37,636

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.

22
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
1,950,000 Ordinary of £1 each
1,950,000
1,950,000

.

RAYTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
22
Share capital
(Continued)
- 31 -
23
Financial commitments, guarantees and contingent liabilities

The company has cross-guaranteed the overdraft of the other companies in the group. At the balance sheet date the total group balances were in debit at £388,789 (2022: £279,894 debit). This figure includes the company's own debit balance of £314,398 (2022: £91,151 debit).

 

Contingent liability

 

On 31 December 2021 Rayleigh Instruments Limited, a subsidiary of Raytel Group Limited, entered into an agreement which required the company to acquire a percentage of the shares of Uxeon Sp. Z o.o., a company in which Rayleigh Instruments Limited holds a controlling interest as at the balance sheet date, on the event of the resignation of a key employee on or before 31 December 2035.

 

The fair value of the consideration payable in such an event is estimated to be between £265,865 and £149,017.

24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
65,838
48,721
4,152
3,543
Between two and five years
116,429
78,297
5,882
-
182,267
127,018
10,034
3,543
25
Controlling party

The ultimate controlling party is R Lawrence by virtue of his directorship and beneficial interest in the majority shareholding.

26
Non-Controlling Interests

Non-controlling interests represent a 49% shareholding in Rayleigh Instruments SP. Z o.o and Uxeon SP. Z o.o.

RAYTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 32 -
27
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
1,651,059
308,457
Adjustments for:
Taxation charged
310,311
86,963
Finance costs
68,491
54,333
Investment income
(9,107)
(8,000)
Amortisation and impairment of intangible assets
46,668
34,857
Depreciation and impairment of tangible fixed assets
75,086
75,088
Movements in working capital:
Increase in stocks
(624,014)
(130,862)
Decrease/(increase) in debtors
677,707
(806,343)
Increase in creditors
551,583
211,345
Cash generated from/(absorbed by) operations
2,747,784
(174,162)
28
Analysis of changes in net funds/(debt) - group
1 July 2022
Cash flows
Other non-cash changes
Exchange rate movements
30 June 2023
£
£
£
£
£
Cash at bank and in hand
649,385
1,210,101
-
(5,277)
1,854,209
Borrowings excluding overdrafts
(1,531,546)
996,406
-
-
(535,140)
(882,161)
2,206,507
-
(5,277)
1,319,069
29
Analysis of changes in net funds/(debt) - company
1 July 2022
Cash flows
Other non-cash changes
30 June 2023
£
£
£
£
Cash at bank and in hand
315,249
223,051
-
538,300
Borrowings excluding overdrafts
(699,140)
164,000
-
(535,140)
(383,891)
387,051
-
3,160
2023-06-302022-07-01falseCCH SoftwareCCH Accounts Production 2023.300Mr D G BrookesMrs F T Hoare LawrenceMrs F T Hoare LawrenceMr R LawrenceMr R LawrenceMrs E C 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