Company Registration No. 05272682 (England and Wales)
RSW (IMPORTS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
31 December 2023
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
RSW (IMPORTS) LIMITED
COMPANY INFORMATION
Directors
M Rubens
P Rubens
Secretary
H Rubens
Company number
05272682
Registered office
c/o PM+M
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
Business address
Unit 4
Cowm Top Business Park
Cowm Top Lane
Rochdale
Lancashire
OL11 2PU
RSW (IMPORTS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
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
Notes to the financial statements
15 - 28
RSW (IMPORTS) 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

RSW International Limited imports and distributes a variety of goods including kitchenware, baby products, pet products, stationery, Christmas products and general merchandise from its head office at Cowm Top Business Park, Rochdale.

 

We aim to present a balanced and comprehensive review of the business performance during the year and its financial position at the year end. The review is prepared in the context of the non-complex operations and structure of the business.

 

The trading results of the year and company's financial position at year end are shown in the financial statements.

 

There has been a slight increase in turnover during the year and gross profit levels surpassed prior year levels. Distribution and administrative expenses have increased during the year due to general inflation price increases of carriage and utilities, and regulatory wage rises. This has negatively impacted the net profit compared to last year, however is still strong considering the external market. Stock holding levels have decreased at the year end due to various external factors.

 

The company's key financial and other performance indicators during the year were as follows:

 

Unit 2023 2022

Turnover growth % 1.5 -1.6

Turnover £ 16,280,914 16,037,547

Gross profit margin % 35 34

Profit before tax £ 996,888 1,017,195

 

Given the straightforward nature of the business, we are of the opinion that analysis using non-financial KPI's is not necessary for an understanding of the development, performance or position of the entity.

 

Like all businesses in our industry we operate in a highly competitive and demanding market place, where margins continue to be tight and factors (such as exchange rates) are out of our control. However, we remain confident in our ability to manage the business profitably on an on-going basis. Initiatives to improve sales and margins include introducing new product ranges and making sales to new customers.

Principal risks and uncertainties

The principal risks to the business include availability of products, shipping uncertainty and exchange rates.

The directors of the company manage its risks in a dynamic fashion taking account of the most cost-effective manner.

The company manages its financial risks through the use of bank facilities matched to its working capital needs and through insuring (where appropriate and cost-effective) trade debtors.

RSW (IMPORTS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Price risk, credit risk, liquidity risk and cash flow risk

The principal financial instruments of the business comprise bank balances, bank overdrafts, trade debtors, trade creditors and loans to the business. The main purpose of these instruments is to finance the business' operations.

 

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances are held in such a way that they achieve a competitive rate of interest. The business makes use of money market facilities where funds are available.

 

The risk of exchange rate fluctuations on foreign currency purchases is managed by using foreign currency forward contracts.

 

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

 

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

 

Loans comprise loans from financial institutions. The business manages liquidity risk by ensuring that there are sufficient funds to meet the repayments.

Future developments

The company is in a strong position financially and continues to review the risks which it faces as and when they arise.

 

On behalf of the board

M Rubens
Director
17 May 2024
RSW (IMPORTS) 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.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £500,000. 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:

M Rubens
P Rubens
Auditor

The auditor, PM+M Solutions for Business LLP, is deemed to be reappointed under section 487(2) 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 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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the principal activity of the company.true

 

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.

RSW (IMPORTS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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
M Rubens
Director
17 May 2024
RSW (IMPORTS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RSW (IMPORTS) LIMITED
- 5 -
Opinion

We have audited the financial statements of RSW (Imports) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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:

RSW (IMPORTS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RSW (IMPORTS) LIMITED
- 6 -
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.

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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

RSW (IMPORTS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RSW (IMPORTS) LIMITED
- 7 -

Identifying and assessing potential risks related to irregularities

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Group's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

RSW (IMPORTS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RSW (IMPORTS) LIMITED
- 8 -

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.

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.

Ceri Dixon BSc (Hons) ACA (Senior Statutory Auditor)
For and on behalf of PM+M Solutions for Business LLP
17 May 2024
Chartered Accountants
Statutory Auditor
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
RSW (IMPORTS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
16,280,914
16,037,547
Cost of sales
(10,696,750)
(10,529,408)
Gross profit
5,584,164
5,508,139
Distribution costs
(812,359)
(728,484)
Administrative expenses
(3,775,713)
(3,648,573)
Operating profit
4
996,092
1,131,082
Interest payable and similar expenses
7
(135,898)
(113,887)
Profit before taxation
860,194
1,017,195
Tax on profit
9
(201,951)
(199,049)
Profit for the financial year
658,243
818,146
Other comprehensive income
Cash flow hedges gain arising in the year
34,926
18,386
Total comprehensive income for the year
693,169
836,532
Total comprehensive income for the year is all attributable to the owners of the parent company.
RSW (IMPORTS) LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
224,896
97,363
Current assets
Stocks
14
3,661,071
5,600,534
Debtors
15
2,534,766
2,217,568
Cash at bank and in hand
870,144
237,130
7,065,981
8,055,232
Creditors: amounts falling due within one year
16
(2,205,059)
(2,894,451)
Net current assets
4,860,922
5,160,781
Total assets less current liabilities
5,085,818
5,258,144
Creditors: amounts falling due after more than one year
17
-
(400,000)
Provisions for liabilities
Deferred tax liability
19
35,387
882
(35,387)
(882)
Net assets
5,050,431
4,857,262
Capital and reserves
Called up share capital
21
100
100
Hedging reserve
22
40,185
5,259
Profit and loss reserves
5,010,146
4,851,903
Total equity
5,050,431
4,857,262

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 17 May 2024 and are signed on its behalf by:
17 May 2024
M Rubens
Director
Company registration number 05272682 (England and Wales)
RSW (IMPORTS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
249,500
249,500
Current assets
Debtors
15
236
236
Cash at bank and in hand
10
10
246
246
Creditors: amounts falling due within one year
16
(214,244)
(214,244)
Net current liabilities
(213,998)
(213,998)
Net assets
35,502
35,502
Capital and reserves
Called up share capital
21
100
100
Profit and loss reserves
35,402
35,402
Total equity
35,502
35,502

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 £500,000 (2022 - £535,000 profit).

The financial statements were approved by the board of directors and authorised for issue on 17 May 2024 and are signed on its behalf by:
17 May 2024
M Rubens
Director
Company registration number 05272682 (England and Wales)
RSW (IMPORTS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Hedging reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
100
(13,127)
4,568,757
4,555,730
Year ended 31 December 2022:
Profit for the year
-
-
818,146
818,146
Other comprehensive income:
Cash flow hedges gains
-
18,386
-
18,386
Total comprehensive income
-
18,386
818,146
836,532
Dividends
10
-
-
(535,000)
(535,000)
Balance at 31 December 2022
100
5,259
4,851,903
4,857,262
Year ended 31 December 2023:
Profit for the year
-
-
658,243
658,243
Other comprehensive income:
Cash flow hedges gains
-
34,926
-
34,926
Total comprehensive income
-
34,926
658,243
693,169
Dividends
10
-
-
(500,000)
(500,000)
Balance at 31 December 2023
100
40,185
5,010,146
5,050,431
RSW (IMPORTS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
35,402
35,502
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
535,000
535,000
Dividends
10
-
(535,000)
(535,000)
Balance at 31 December 2022
100
35,402
35,502
Year ended 31 December 2023:
Profit and total comprehensive income
-
500,000
500,000
Dividends
10
-
(500,000)
(500,000)
Balance at 31 December 2023
100
35,402
35,502
RSW (IMPORTS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
2,657,707
222,474
Interest paid
(135,898)
(113,887)
Income taxes paid
(200,543)
(285,995)
Net cash inflow/(outflow) from operating activities
2,321,266
(177,408)
Investing activities
Purchase of tangible fixed assets
(164,000)
(6,894)
Proceeds from disposal of tangible fixed assets
-
5,083
Repayment of loans
45,320
54,207
Net cash (used in)/generated from investing activities
(118,680)
52,396
Financing activities
Repayment of bank loans
(550,000)
-
Payment of finance leases obligations
-
(2,744)
Dividends paid to equity shareholders
(500,000)
(535,000)
Net cash used in financing activities
(1,050,000)
(537,744)
Net increase/(decrease) in cash and cash equivalents
1,152,586
(662,756)
Cash and cash equivalents at beginning of year
(865,999)
(203,243)
Cash and cash equivalents at end of year
286,587
(865,999)
Relating to:
Cash at bank and in hand
870,144
237,130
Bank overdrafts included in creditors payable within one year
(583,557)
(1,103,129)
RSW (IMPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

RSW (Imports) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is c/o PM+M, New Century House, Greenbank Technology Park, Challenge Way, Blackburn, Lancashire, BB1 5QB.

 

The principal place of business is Unit 4, Cowm Top Business Park, Cowm Top Ln, Rochdale OL11 2PU.

 

The group consists of RSW (Imports) 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.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company RSW (Imports) 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 31 December 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.

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.

RSW (IMPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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
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:

Fixtures and fittings
12.5%-25% straight line
Motor vehicles
25% reducing balance
Short term leasehold property
13% 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.

1.6
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.

1.7
Impairment of fixed assets

At each reporting period end date, the group 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.

1.8
Stocks

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

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.

RSW (IMPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.9
Cash at bank and in hand

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.

1.10
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.

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

Impairment of financial assets

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

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss 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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group, are initially recognised at transaction.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. See 1.10 for the derivatives policy.

 

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.

RSW (IMPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial liabilities

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

1.11
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.

1.12
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

 

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

Hedge accounting

The group uses foreign currency forward contracts to hedge its exposure to variability in cashflow and fair values on stock purchases in foreign currencies. These purchases are either firm commitments or highly probable forecast transactions in the currency of the forward contract. These derivatives are measured at fair value at each balance sheet date.

Fair value gains or losses on the derivatives at the balance sheet date are recognised as an asset or liability with a corresponding gain or loss in other comprehensive income and are recorded in a specific cashflow hedging reserve. On completion of the hedged stock purchase transaction; the cumulative hedging gain is recognised in the initial cost of the stock.

1.13
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.

RSW (IMPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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.

1.14
Employee benefits

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

 

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

1.15
Retirement benefits

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

1.16
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.

1.17
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 key source of estimation uncertainty that have an effect on the amounts recognised in the financial statements are described below.

 

Management provisions for stock items by considering both the expected net realisable value of the items and their historical performance.

 

Management determines the net realisable value of assets by drawing upon their past experiences.

RSW (IMPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
3
Turnover
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
12,055,744
12,150,860
Europe
3,259,887
3,191,971
Rest of the world
965,283
694,716
16,280,914
16,037,547

All turnover arose within the main principle activity, the importation and distribution of general retail merchandise.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
36,467
49,840
Profit on disposal of tangible fixed assets
-
0
(562)
Operating lease charges
688,412
581,469
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
2,250
-
Audit of the financial statements of the company's subsidiaries
13,250
13,500
15,500
13,500
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Warehouse, sales and administration
50
52
-
-
Directors
2
2
2
2
Total
52
54
2
2
RSW (IMPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,962,745
1,893,216
-
0
-
0
Social security costs
205,156
207,498
-
0
-
0
Pension costs
201,988
143,055
-
0
-
0
2,369,889
2,243,769
-
0
-
0
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
135,898
113,887
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
320,005
291,206
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
222,731
211,456
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
167,532
200,629
Adjustments in respect of prior periods
(86)
5,977
Total current tax
167,446
206,606
Deferred tax
Origination and reversal of timing differences
34,505
(7,557)
Total tax charge
201,951
199,049
RSW (IMPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 22 -

From the 1 April 2023 the Corporation Tax rate changed to 25%. During the period the effective tax rate was 23.52%.

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
860,194
1,017,195
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
202,318
193,267
Tax effect of expenses that are not deductible in determining taxable profit
(3,290)
845
Adjustments in respect of prior years
(86)
5,977
Other permanent differences
967
773
Under/(over) provided in prior years
1
-
0
Remeasurement of defered tax for changes in tax rates
2,041
(1,813)
Taxation charge
201,951
199,049
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
500,000
535,000
RSW (IMPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
11
Tangible fixed assets
Group
Fixtures and fittings
Motor vehicles
Short term leasehold property
Total
£
£
£
£
Cost
At 1 January 2023
622,038
108,611
74,189
804,838
Additions
164,000
-
0
-
0
164,000
At 31 December 2023
786,038
108,611
74,189
968,838
Depreciation and impairment
At 1 January 2023
580,821
52,465
74,189
707,475
Depreciation charged in the year
20,878
15,589
-
0
36,467
At 31 December 2023
601,699
68,054
74,189
743,942
Carrying amount
At 31 December 2023
184,339
40,557
-
0
224,896
At 31 December 2022
41,217
56,146
-
0
97,363
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
249,500
249,500
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
249,500
Carrying amount
At 31 December 2023
249,500
At 31 December 2022
249,500
RSW (IMPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
13
Subsidiaries

Details of the company's subsidiary at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
RSW International Limited
United Kingdom
Wholesaler distribution of consumer goods
Ordinary
100.00
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods
3,661,071
5,600,534
-
0
-
0
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,019,586
1,699,285
-
0
-
0
Other debtors
375,969
279,940
236
236
Prepayments and accrued income
139,211
238,343
-
0
-
0
2,534,766
2,217,568
236
236
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
583,557
1,253,129
-
0
-
0
Trade creditors
437,332
587,137
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
214,244
214,244
Corporation tax payable
167,532
200,629
-
0
-
0
Other taxation and social security
701,987
592,451
-
-
Other creditors
179,015
63,423
-
0
-
0
Accruals and deferred income
135,636
197,682
-
0
-
0
2,205,059
2,894,451
214,244
214,244
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
-
0
400,000
-
0
-
0
RSW (IMPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
-
0
550,000
-
0
-
0
Bank overdrafts
583,557
1,103,129
-
0
-
0
583,557
1,653,129
-
-
Payable within one year
583,557
1,253,129
-
0
-
0
Payable after one year
-
0
400,000
-
0
-
0

Bank import loans of £583,557 (2022 - £1,045,873) and Coronavirus Business Interruption Loans of £nil (2022 - £550,000) are secured by way of a debenture including fixed charge over all present freehold and leasehold property.

 

Invoice financing loans of £nil (2022 - £57,256) are secured over the debtors to which they relate.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
35,387
882
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
882
-
Charge to profit or loss
34,505
-
Liability at 31 December 2023
35,387
-
RSW (IMPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
201,988
143,055

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. The creditor at year end was £8,002 (2022 - £3,130).

21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
51
51
51
51
Ordinary B shares of £1 each
49
49
49
49
100
100
100
100

During the year the share capital was redesigned into Ordinary A shares and Ordinary B shares.

22
Hedging reserve

The company has a policy of buying forward currency contracts to match to a proportion of the known future foreign currency purchases whenever the rates for such forward contracts appear reasonable to the directors. As these policies mature, the underlying foreign currency purchased is used to pay for stock and the underlying gain or loss is recognised when the stock is sold.  Under accounting standards the company is required to recognise the market value at year end of outstanding forward currency contracts as an asset or a liability and to show the change in that market value each year as a movement on the hedging reserve.

 

At 31 December 2023 the company had recognised in relation to future years’ trading a hedging related asset of £40,185 and recorded a £34,926 change from the asset recognised in the previous year of £5,259.

23
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
-
164,000
-
-
RSW (IMPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
24
Directors' transactions

Dividends totalling £500,000 (2022 - £535,000) were paid in the year in respect of shares held by the company's directors.

Included within other debtors is an amount due from a director of £nil (2022 - £45,320) and amounts advanced and repaid in the year were £138,595 and £326,740 respectively.

 

The maximum balance owed by the director during the year was £169,320.

25
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
2023
2022
£
£
Group
Related parties
817,369
723,042
Expenses reimbursed
Services purchased
2023
2022
2023
2022
£
£
£
£
Group
Related parties
-
9,434
(986,015)
(998,876)

At the year end, an amount of £306,530 (2022 - £187,852) was owed from companies related by virtue of a directors joint control.

26
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
658,243
818,146
Adjustments for:
Taxation charged
201,951
199,049
Finance costs
135,898
113,887
Gain on disposal of tangible fixed assets
-
(562)
Depreciation and impairment of tangible fixed assets
36,467
49,840
Movements in working capital:
Decrease/(increase) in stocks
1,939,463
(1,904,953)
(Increase)/decrease in debtors
(327,592)
1,106,965
Increase/(decrease) in creditors
13,277
(159,898)
Cash generated from operations
2,657,707
222,474
RSW (IMPORTS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
27
Analysis of changes in net funds/(debt) - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
237,130
633,014
870,144
Bank overdrafts
(1,103,129)
519,572
(583,557)
(865,999)
1,152,586
286,587
Borrowings excluding overdrafts
(550,000)
550,000
-
(1,415,999)
1,702,586
286,587
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