Company registration number 03168088 (England and Wales)
R&M (FIXINGS & SUPPORTS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
R&M (FIXINGS & SUPPORTS) LIMITED
COMPANY INFORMATION
Directors
Mr B Reufels
Mr N Dyer-Smith
Mr W Crook
Mr T Coomer
Secretary
Mr W Crook
Company number
03168088
Registered office
Units 1 & 2
362a Spring Road
Sholing
Southampton
Hampshire
SO19 2PB
Auditor
Fiander Tovell Limited
Stag Gates House
63/64 The Avenue
Southampton
Hampshire
SO17 1XS
R&M (FIXINGS & SUPPORTS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 23
R&M (FIXINGS & SUPPORTS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Business review and future developments
The Company continues to be an internationally renowned supplier of fixings, cable management and support products, power tools and accessories. The Company's expansion into the prefabrications and data centre markets has grown and this is becoming an ever-increasing area of the business.
The Directors are pleased to report a satisfactory trading result for the Year.
Sales increased by 2.84% to £13.324m (2022 - £12.956m) and the Gross Profit margin increased from 20.77% to 25.50%. Total gross profit was £3.397m (2022 - £2.690m).
Net Profit before Tax for the financial year was £664k (2022 - £596k).
Distribution and Administrative expenses have increased by 31.68% or £681k. This was due to a combination of adding to the infrastructure necessary to facilitate future growth and inflationary pressures.
The wholly owned subsidiary in the Netherlands, R & M Europe BV, has enjoyed impressive growth. A lot of the major projects are now served by this venture rather than the UK parent.
Our Balance Sheet remains strong with Net Assets of £3.676m (2022 - £3.204m) and Net Current Assets of £3.533m (2022 - £3.099m). This is because all monies generated have been re-invested in the business.
The Company, as a wholly owned subsidiary of R & M Electrical Group Limited, continues to enjoy headroom in borrowing facilities and is therefore well positioned to maintain excellent supplier relationships and capitalise on any opportunities that may arise.
We remain confident of our future prosperity and growth because of our;
- 18 Year Track Record
- We are independent and privately owned
- We are fully accredited and compliant
- Industry specialists
- Outstanding staff retention
- Innovative and "Can Do" attitude
- Long term trading partnerships with our suppliers who are all market leaders
- Continued investment in the latest IT products to support the business
- Financial strength and headroom in facilities
- Credit worthiness
Principal risks and uncertainties
The key financial performance indicators that management and directors use to monitor the performance of the Company are turnover and profitability, which are commented on above.
Key performance indicators
The Company's principal financial instruments are cash, trade debtors and trade creditors.
The Company continues to manage its cash and borrowing requirements centrally to minimise interest expenses whilst ensuring that the Company has sufficient liquid resources to meet the operational needs of the business.
This includes the use of invoice discounting as detailed in Note 14.
The Company controls its exposure to credit risks by regularly reviewing customers' accounts and limits, and by only granting terms to those whom are credit worthy. Credit reference agencies are used, and credit insurance is used to insure debts.
R&M (FIXINGS & SUPPORTS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The Company's foreign currency exposure arises from the export of goods. The Company counters currency fluctuations by naturally hedging by buying and selling in the same currency and will look to take forward option contracts when this is not possible.
The market is very competitive, and the Company is committed to maintaining its competitive pricing position and maintaining the very high standards of customer service. The Company also continues to build upon its strong relationships with suppliers.
The Company has continued to ensure that our operational costs remain at a sustainable level whilst not affecting our ability to service our customers. We believe that by taking these measures we are in a lean position to be able to react to any additional changes in the marketplace.
Employee involvement
We continue to invest in human resources, health and safety and our quality departments in order to satisfy legislation and protect our employees. The Company has good employee retention and the risk of losing key employees is reduced by offering good remuneration, training and a pleasant working environment.
The Board appreciates that the staff are key to the continued success of the Company. It is the policy of the Company to encourage and develop all members of staff to realise their maximum potential. Wherever possible, vacancies are filled from within the Company and adequate opportunities for internal promotion are created.
The Company supports the principle of equal opportunities in employment and opposes all forms of unlawful or unfair discrimination on the grounds of race, age, nationality, religion, ethnic or national origin, sexual orientation, gender, or gender reassignment, marital status or disability. It is also the policy of the Company, where possible, to give sympathetic consideration to disabled persons in their application for employment with the Company and to protect the interests of existing members of the staff who are disabled.
Environmental matters
The group is committed to the care of the environment and the prevention of pollution. The group secured an ISO 14001:2015 accreditation as further evidence of its focus on environmental matters.
The organisation is cognisant of the effect of business decisions on the environment and, where possible, optimises environmentally friendly decisions, making sure that all activities are carried out in confidence with the relevant environmental legislation.
The organisation seeks to minimise waste generation, promote recycling, reduce energy consumption, reduce harmful emissions and, where possible, to work with suppliers who themselves have sound environmental policies. The group is committed to improving environmental performance by setting annual environmental improvement objectives and targets these are regularly monitored, reviewed, and audited against the ISO 14001:2015 standard. Our Environmental Policy, Waste Management Policy and Quality & Environmental Manual are publicised for employees as controlled documents. All employees are also actively encouraged to identify any issues in areas immediately and proffer continual improvement ideas.
Mr T Coomer
Director
18 April 2024
R&M (FIXINGS & SUPPORTS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of electrical wholesale and project management.
Results and dividends
The results for the year are set out on page 8.
The profit for the period, after taxation, amounted to £471,919 (2022 - £499,880).
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr B Reufels
Mr N Dyer-Smith
Mr S Cargill
(Resigned 19 October 2023)
Mr W Crook
Mr T Coomer
Qualifying third party indemnity provisions
Qualifying third party indemnity provisions (as defined in section 234(2) of the Companies Act 2006) are in force for the benefit of the directors and former directors who held office during the year ended 31 December 2023.
Auditor
The auditor, Fiander Tovell, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Matters covered in the strategic report
Key performance indicators and a business review for the year ending 31 December 2023 are disclosed in the Strategic Report as required by s414C(11) of Companies Act 2006.
R&M (FIXINGS & SUPPORTS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Statement of disclosure to auditor
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr T Coomer
Director
18 April 2024
R&M (FIXINGS & SUPPORTS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF R&M (FIXINGS & SUPPORTS) LIMITED
- 5 -
Opinion
We have audited the financial statements of R&M (Fixings & Supports) Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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.
R&M (FIXINGS & SUPPORTS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R&M (FIXINGS & SUPPORTS) LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience.
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment, environmental and health and safety legislation.
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
R&M (FIXINGS & SUPPORTS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R&M (FIXINGS & SUPPORTS) LIMITED
- 7 -
Audit response to risks identified
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships.
tested journal entries to identify unusual transactions.
tested a sample of BACS payments to identify payments being made to unexpected bank accounts.
performed transactional testing on payroll costs in respect of those employees with responsibility or authority in connection with the payroll function.
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Andrew Jay ACA FCCA
Senior Statutory Auditor
For and on behalf of Fiander Tovell Limited
19 April 2024
Chartered Accountants
Statutory Auditor
Stag Gates House
63/64 The Avenue
Southampton
Hampshire
SO17 1XS
R&M (FIXINGS & SUPPORTS) LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
13,323,712
12,955,883
Cost of sales
(9,927,194)
(10,265,539)
Gross profit
3,396,518
2,690,344
Distribution costs
(199,235)
(192,151)
Administrative expenses
(2,629,778)
(1,956,210)
Operating profit
4
567,505
541,983
Interest receivable and similar income
8
218,890
107,907
Interest payable and similar expenses
9
(122,210)
(54,267)
Profit before taxation
664,185
595,623
Tax on profit
10
(192,266)
(95,743)
Profit for the financial year
471,919
499,880
Retained earnings brought forward
3,202,830
2,702,950
Retained earnings carried forward
3,674,749
3,202,830
The profit and loss account has been prepared on the basis that all operations are continuing operations.
R&M (FIXINGS & SUPPORTS) LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
234,162
156,131
Investments
12
100
100
234,262
156,231
Current assets
Stocks
14
1,128,623
1,106,674
Debtors
15
5,467,388
6,324,956
Cash at bank and in hand
1,012,062
352,951
7,608,073
7,784,581
Creditors: amounts falling due within one year
16
(4,074,592)
(4,685,555)
Net current assets
3,533,481
3,099,026
Total assets less current liabilities
3,767,743
3,255,257
Creditors: amounts falling due after more than one year
17
(37,224)
(24,810)
Provisions for liabilities
Deferred tax liability
19
54,770
26,617
(54,770)
(26,617)
Net assets
3,675,749
3,203,830
Capital and reserves
Called up share capital
21
1,000
1,000
Profit and loss reserves
3,674,749
3,202,830
Total equity
3,675,749
3,203,830
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 18 April 2024 and are signed on its behalf by:
Mr T Coomer
Director
Company registration number 03168088 (England and Wales)
R&M (FIXINGS & SUPPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information
R&M (Fixings & Supports) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Units 1 & 2, 362a Spring Road, Sholing, Southampton, Hampshire, SO19 2PB.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
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.
The financial statements of the company are consolidated in the financial statements of R&M Electrical Group Limited. These consolidated financial statements are available online from Companies House.
1.2
Going concern
The financial statements have been prepared on the going concern basis as they remain confident measures have been taken that will enable the Company to continue trading successfully. The Company's business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategic Report. In addition, the Strategic Report include the Company’s objectives, policies, and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its exposures to the credit risk and liquidity risk. true
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.
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.
R&M (FIXINGS & SUPPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Over the length of the lease
Plant and equipment
12.5% straight line
Fixtures and fittings
12.5% straight line
Computers
33% straight line
Motor vehicles
20% 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 credited or charged to profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
R&M (FIXINGS & SUPPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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.
1.7
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.
1.8
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.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors 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.
R&M (FIXINGS & SUPPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
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.
R&M (FIXINGS & SUPPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
R&M (FIXINGS & SUPPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
R&M (FIXINGS & SUPPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 16 -
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.
Property dilapidations and onerous leases
Under certain operating leases for land and buildings, the Company is obligated to make repairs of dilapidations to the leases property upon the expiry of the lease. The Company charges amounts to profit and loss so that, by the end of the lease, a total provision is accrued that is estimated to be equal to the future costs of those dilapidation obligations.
Where repairs are made part way through the lease that will reduce the estimated costs of dilapidation obligations at the expiry of the lease, the costs of those repairs are charged against the dilapidation provision.
Where leased properties are committed to be vacated, the Company provides for the best estimate of of the future unrecoverable costs of its obligations under those leases.
Stock provisioning
The Company holds stock that is subject to changing industry demands. As a result, it is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of inventory, as well as applying assumptions around anticipated saleability of goods.
Impairment of debtors
The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
3
Turnover
The whole of the turnover is attributable to the principal activity of the Company and arose within the United Kingdom.
2023
2022
£
£
Turnover analysed by class of business
Electrical wholesale and project management
13,323,712
12,955,883
In the opinion of the directors, the disclosure of separate segmental information in accordance with FRS 102 would be prejudicial to the interests of the group.
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
81,351
(97,157)
Depreciation of owned tangible fixed assets
54,972
42,646
Profit on disposal of tangible fixed assets
(2,651)
(5,511)
Impairment of stocks recognised or reversed
70,539
26,890
Operating lease charges
301,748
294,346
R&M (FIXINGS & SUPPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
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 company
19,996
19,250
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
All staff
33
31
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
1,483,387
1,043,638
Social security costs
136,553
119,516
Pension costs
53,928
45,109
1,673,868
1,208,263
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
375,964
213,416
Company pension contributions to defined contribution schemes
9,277
8,152
385,241
221,568
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
197,462
119,607
R&M (FIXINGS & SUPPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
218,890
107,907
9
Interest payable and similar expenses
2023
2022
£
£
Interest on invoice finance arrangements
78,228
47,764
Interest payable to group undertakings
36,458
Interest on finance leases and hire purchase contracts
5,839
3,937
Other interest
1,685
2,566
122,210
54,267
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
140,985
87,959
Adjustments in respect of prior periods
23,127
Total current tax
164,112
87,959
Deferred tax
Origination and reversal of timing differences
28,154
7,205
Previously unrecognised tax loss, tax credit or timing difference
579
Total deferred tax
28,154
7,784
Total tax charge
192,266
95,743
R&M (FIXINGS & SUPPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 19 -
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
664,185
595,623
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
156,220
113,168
Tax effect of expenses that are not deductible in determining taxable profit
12,919
(15,117)
Adjustments in respect of prior years
23,127
(579)
Effect of change in corporation tax rate
(1,729)
Taxation charge for the year
192,266
95,743
11
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
47,790
16,920
18,614
169,155
252,479
Additions
19,170
1,797
125,385
146,352
Disposals
(41,495)
(41,495)
At 31 December 2023
47,790
36,090
18,614
1,797
253,045
357,336
Depreciation and impairment
At 1 January 2023
17,232
8,893
10,720
59,503
96,348
Depreciation charged in the year
4,224
4,056
2,281
499
43,912
54,972
Eliminated in respect of disposals
(28,146)
(28,146)
At 31 December 2023
21,456
12,949
13,001
499
75,269
123,174
Carrying amount
At 31 December 2023
26,334
23,141
5,613
1,298
177,776
234,162
At 31 December 2022
30,558
8,027
7,894
109,652
156,131
The net book value above includes an amount of £146,435 (2022 - £94,704) in respect of assets held under finance leases and hire purchase contracts. The related depreciation on assets held under finance leases and hire purchase agreements is £40,661 (2022 - £23,216).
R&M (FIXINGS & SUPPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
12
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
13
100
100
13
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
R & M Europe B.V.
Industrieweg69, Middenmeer, The Netherlands, 1775 PV
Ordinary
100.00
14
Stocks
2023
2022
£
£
Finished goods and goods for resale
1,128,623
1,106,674
An impairment charge of £70,539 (2022: £26,890) was recognised in cost of sales during the year.
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,829,830
1,516,364
Amounts owed by group undertakings
3,303,630
4,418,292
Other debtors
175,609
237,343
Prepayments and accrued income
158,319
152,957
5,467,388
6,324,956
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
R&M (Fixings & Supports) Limited ("the Company") operate an invoice discounting arrangement. The main terms of the agreement are as follows:
The Company, acting as a trustee for the invoice discounter, collects the remittances and banks them in a separate bank account which is maintained by the invoice discounter. All amounts held in the account are shown as a liability within creditors: amounts falling due within one year. The invoice discounting charges recognised in the period were:
Administration charges: £12,504 - (2022 - £12,504)
Discounting charges: £65,724 - (2022 - £35,260)
R&M (FIXINGS & SUPPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
18
48,664
33,726
Trade creditors
1,816,713
1,963,225
Amounts owed to group undertakings
273,607
1,293,298
Corporation tax
91,154
95,605
Other taxation and social security
29,680
29,572
Other creditors
1,479,678
742,141
Accruals and deferred income
335,096
527,988
4,074,592
4,685,555
17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
18
37,224
24,810
18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
48,664
33,726
In two to five years
37,224
24,810
85,888
58,536
All finance lease liabilities are secured over the assets to which they attain.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
54,770
26,617
R&M (FIXINGS & SUPPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Deferred taxation
(Continued)
- 22 -
2023
Movements in the year:
£
Liability at 1 January 2023
26,617
Charge to profit or loss
28,153
Liability at 31 December 2023
54,770
The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within the same period.
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
53,928
45,109
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,000
1,000
1,000
1,000
22
Financial commitments, guarantees and contingent liabilities
The ultimate controlling party, Niedax Galvanik GmbH and International Electrical Investments Limited entered into a Composite Group Guarantee and Debenture on 23 December 2021. The assets of the Company are secured by fixed and floating charges.
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
289,490
292,883
Between two and five years
185,303
426,176
474,793
719,059
24
Related party transactions
R&M (FIXINGS & SUPPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Related party transactions
(Continued)
- 23 -
The company has taken advantage of the provisions of FRS 102 section 33.1A allowing transactions between wholly owned group entities not to be disclosed.
There were no other transactions with related parties.
25
Ultimate controlling party
The immediate parent company is R&M Electrical Group Limited, a company incorporated in the United Kingdom. This is the smallest group which prepares consolidated financial statements that incorporate the results of the Company for the period ended 31 December 2023.
The directors consider the ultimate controlling party to be Niedax Galvanik GmbH, a company incorporated in Germany. This is the largest group which the results of the Company are consolidated in.
Copies of the consolidated financial statements noted above may be obtained from the registered office, Units 1&2, 362a Spring Road, Sholing, Southampton, Hampshire, SO19 2PB
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