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Registered number: 08743548






RLE GLOBAL OPERATIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










img5176.png

 
RLE GLOBAL OPERATIONS LIMITED
 
 
COMPANY INFORMATION


Directors
D Gowland 
R Laufenberg 




Company secretary
N Cushing



Registered number
08743548



Registered office
Insight House
Riverside Business Park

Stoney Common Road

Stansted Mountfitchet

Essex

CM24 8PL




Independent auditors
Venthams
Chartered Accountants & Statutory Auditor

Millhouse

32 - 38 East Street

Rochford

Essex

SS4 1DB





 
RLE GLOBAL OPERATIONS LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Statement of income and retained earnings
 
9
Balance sheet
 
10
Statement of cash flows
 
11
Analysis of net debt
 
12
Notes to the financial statements
 
13 - 26


 
RLE GLOBAL OPERATIONS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present the strategic report for the year ended 31 December 2023.

Business review
 
RLE Global Operations is the UK based Holding Company of the RLE International operations outside of Germany.  This structure was put in place in 2014 with all non-German interest being managed by Global Operations.
The main financial activity of the company is as a group Holding Company, charging management fees to its subsidiaries in order to cover operating costs of the central management team and to pursue other strategic objectives.

Principal risks and uncertainties
 
The business is exposed to a number of risks as a result of its international operations. The directors have set out below the principal business and financial risks facing the business. The directors are of the opinion that a thorough risk management process is adopted which involves the formal review of all the risks identified below. Processes are in place to monitor and where possible mitigate such risks.
Financial risk
The company uses various financial instruments.  These include loans, cash and various items such as trade debtors and trade creditors that arise directly from its operations.
The main risks arising from the company's financial instruments are credit risk and liquidity risk, with currency and interest rate risk being deemed immaterial to the company overall.
Credit risk
The company's principal financial assets are cash and trade debtors.
The credit risk associated with the cash is limited as the counterparties have high credit ratings assigned by international credit-rating agencies.
The principal credit risk therefore arises from the company's trade debtors.  In order to manage credit risk the directors regularly review the subsidiary companies performance, profitability and cashflow.
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs to invest cash assets safely and profitably.  The company policy throughout the year has been to achieve this objective through the day to day management of business decision making, rather than through setting maximum liquidity ratios. 

Financial key performance indicators
 
The directors consider the following to be key performance indicators of the business:-  
                                                                                                                                                                                 
                                                                                                                                     2023                         2022
                                                                                                                                       £                               £
Turnover                                                                       1,251,120             1,621,585                                           Profit on ordinary activities before taxation                                                                  33,169                       287,202
Shareholders' funds                                                                                                6,463,882                    6,542,852

Page 1

 
RLE GLOBAL OPERATIONS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Directors' statement of compliance with duty to promote the success of the Company
 
The Board of Directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard to a range of matters when making decisions for the long term. Key decisions and matters that are of strategic importance to the Company are appropriately informed by s172 factors. Through an open and transparent dialogue with our key stakeholders, we have been able to develop a clear understanding of their needs, assess their perspectives and monitor their impact on our strategic ambition and culture. As part of the Board’s decision-making process, it considers the potential impact of decisions on relevant stakeholders whilst also having regard to a number of broader factors, including the impact of the Company’s operations on the community and environment, responsible business practices and the likely consequences of decisions in the long term.


This report was approved by the board and signed on its behalf.



D Gowland
Director

Date: 13 August 2024

Page 2

 
RLE GLOBAL OPERATIONS LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

Principal activity of the Company continued to be that of strategic management of group operations.

Results and dividends

The profit for the year, after taxation, amounted to £15,950 (2022 -£270,301).

During the year the directors have approved a final dividend of £Nil (2022 - £882,068).

Directors

The directors who served during the year were:

D Gowland 
R Laufenberg 

Future developments

The Company intends to continue operating as an intermediate holding company for the foreseeable future.  
The directors will continue to look for potential investment opportunities within the sector which meet the Company's objectives. 

Page 3

 
RLE GLOBAL OPERATIONS LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Engagement with suppliers, customers and others

Delivering the Company strategy requires strong mutually beneficial relationships with suppliers, customers and other key stakeholders. The directors receive information updates on a variety of topics that indicate and inform how these stakeholders have been engaged and continue to perform.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsVenthamswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





D Gowland
Director

Date: 13 August 2024

Page 4

 
RLE GLOBAL OPERATIONS LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RLE GLOBAL OPERATIONS LIMITED
 

Opinion


We have audited the financial statements of RLE Global Operations Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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.


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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 
RLE GLOBAL OPERATIONS LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RLE GLOBAL OPERATIONS LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the 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.


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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.


Page 6

 
RLE GLOBAL OPERATIONS LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RLE GLOBAL OPERATIONS LIMITED (CONTINUED)

Auditors' 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 Auditors' 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.


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:

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation. 
- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include employment law, fire safety, health and safety legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit proceedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 7

 
RLE GLOBAL OPERATIONS LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RLE GLOBAL OPERATIONS LIMITED (CONTINUED)

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 2006Our 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 Auditors' 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.





Trevor McCarthy (Senior Statutory Auditor)
  
for and on behalf of
Venthams
 
Chartered Accountants
Statutory Auditor
  
Millhouse
32 - 38 East Street
Rochford
Essex
SS4 1DB

 
Date: 
13 August 2024
Page 8

 
RLE GLOBAL OPERATIONS LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
1,251,120
1,621,585

Cost of sales
  
(77,149)
(74,316)

Gross profit
  
1,173,971
1,547,269

Administrative expenses
  
(2,913,712)
(3,217,258)

Other operating income
 5 
1,206,605
1,899,256

Operating (loss)/profit
 6 
(533,136)
229,267

Income from shares in group undertakings
  
613,411
101,162

Interest receivable and similar income
 10 
1,014
-

Interest payable and similar expenses
 11 
(48,120)
(43,227)

Profit before tax
  
33,169
287,202

Tax on profit
 12 
(17,219)
(16,901)

Profit after tax
  
15,950
270,301

  

  

Retained earnings at the beginning of the year
  
1,822,621
2,434,388

Profit for the year
  
15,950
270,301

Dividends declared and paid
  
(94,920)
(882,068)

Retained earnings at the end of the year
  
1,743,651
1,822,621

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

Page 9

 
RLE GLOBAL OPERATIONS LIMITED
REGISTERED NUMBER:08743548

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
306,250
336,250

Tangible assets
 15 
606
1,834

Investments
 16 
6,703,467
6,835,144

  
7,010,323
7,173,228

Current assets
  

Debtors: amounts falling due within one year
 17 
3,898,000
4,067,452

Cash at bank and in hand
 18 
47,762
21,315

  
3,945,762
4,088,767

Creditors: amounts falling due within one year
 19 
(4,492,203)
(4,719,143)

Net current liabilities
  
 
 
(546,441)
 
 
(630,376)

Total assets less current liabilities
  
6,463,882
6,542,852

  

Net assets
  
6,463,882
6,542,852


Capital and reserves
  

Called up share capital 
 20 
1,060,791
1,060,791

Share premium account
 21 
3,659,440
3,659,440

Profit and loss account
 21 
1,743,651
1,822,621

  
6,463,882
6,542,852


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




D Gowland
Director

Date: 13 August 2024

Page 10

 
RLE GLOBAL OPERATIONS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
15,950
270,301

Adjustments for:

Amortisation of intangible assets
30,000
30,000

Depreciation of tangible assets
1,228
1,301

(Profit)/loss on disposal of investment
(124,599)
(36,271)

Interest paid
48,120
43,227

Dividends and interest received
(614,425)
(101,162)

Taxation charge
17,219
16,901

(Increase) in debtors
(481,097)
(560)

Decrease in amounts owed by groups
650,549
223,402

(Decrease)/increase in creditors
(106,477)
159,808

(Decrease)/increase in amounts owed to groups
(116,186)
282,934

Corporation tax (paid)
(21,496)
(13,069)

Net cash generated from operating activities

(701,214)
876,812


Cash flows from investing activities

Purchase of tangible fixed assets
-
(937)

Purchase of fixed asset investments
(13,327)
(100,000)

Sale of fixed asset investments
269,603
36,271

Interest received
1,014
-

Dividends received
424,893
-

Income from investments in related companies
188,518
101,162

Net cash from investing activities

870,701
36,496

Cash flows from financing activities

Dividends paid
(94,920)
(882,068)

Interest paid
(48,120)
(43,227)

Net cash used in financing activities
(143,040)
(925,295)

Net increase/(decrease) in cash and cash equivalents
26,447
(11,987)

Cash and cash equivalents at beginning of year
21,315
33,302

Cash and cash equivalents at the end of year
47,762
21,315


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
47,762
21,315


Page 11

 
RLE GLOBAL OPERATIONS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

21,315

26,447

47,762

Debt due within 1 year

-

-

-


21,315
26,447
47,762

Page 12

 
RLE GLOBAL OPERATIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

RLE Global Operations is a private company limited by shares incorporated in England and Wales. The registered office is Insight House, Riverside Business Park, Stoney Common Road, Stansted Mountfitchet, Essex, CM24 8PL.
The principal activity of the company continued to be that of strategic management of group operations.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of a state other than the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 401 of the Companies Act 2006.

 
2.3

Going concern

Taking into account a period exceeding 12 months from the date of approval of these financial statements, the directors have a reasonable expectation that it has adequate resources to continue in operational existence for the foreseeable future. These financial statements have therefore been prepared on the going concern basis.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Page 13

 
RLE GLOBAL OPERATIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Page 14

 
RLE GLOBAL OPERATIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Intellectual property
-
10
years

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Computer equipment
-
3 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 15

 
RLE GLOBAL OPERATIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or  loss.
 
Page 16

 
RLE GLOBAL OPERATIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.16
Financial instruments (continued)


Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 17

 
RLE GLOBAL OPERATIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies 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.
The key source of estimation uncertainty for the company is that of contract accounting resulting in deferred income. Costs per project are analysed in detail each month and cumulative comparisons made against the stage of completion and agreed billing schedules.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Management charge
1,251,120
1,621,585

1,251,120
1,621,585


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
540,000
573,583

Rest of Europe
180,000
180,000

Rest of the world
531,120
868,002

1,251,120
1,621,585



5.


Other operating income

2023
2022
£
£

Management services fees receivable
1,206,605
1,899,256

1,206,605
1,899,256


Page 18

 
RLE GLOBAL OPERATIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2023
2022
£
£

Exchange differences
56,082
30,868


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements

13,950
10,000

Fees payable to the Company's auditors and their associates in respect of:

All other services
2,200
2,670


8.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
647,361
791,025

Social security costs
72,357
96,743

Cost of defined contribution scheme
7,709
6,565

727,427
894,333


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Directors
2
2



Employees
1
1

3
3

Page 19

 
RLE GLOBAL OPERATIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
647,361
791,025

Company contributions to defined contribution pension schemes
6,667
4,000

654,028
795,025


During the year retirement benefits were accruing to 1 director (2022 -1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £533,473 (2022 -£663,425).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £6,667 (2022 -£4,000).


10.


Interest receivable

2023
2022
£
£


Other interest receivable
1,014
-

1,014
-


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
48,120
43,227

48,120
43,227

Page 20

 
RLE GLOBAL OPERATIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
24,452

Adjustments in respect of previous periods
(26,383)
(7,551)

Tax on investment income not recoverable
43,602
-


Total current tax
17,219
16,901

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 -lower than) the standard rate of corporation tax in the UK of 25% (2022 -19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
33,169
287,202


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 -19%)
8,292
54,568

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
13
154

Capital allowances for year in excess of depreciation
307
16

Utilisation of tax losses
(253)
(4,174)

Adjustments to tax charge in respect of prior periods
(26,383)
(7,551)

Non-taxable income
(140,901)
(26,112)

Unrelieved tax losses carried forward
77,288
-

Group relief
98,856
-

Total tax charge for the year
17,219
16,901


Factors that may affect future tax charges

The Company has tax losses of £309,150 (2022: £Nil) available to carry forward against future trading profits.

Page 21

 
RLE GLOBAL OPERATIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Dividends

2023
2022
£
£


Equity dividends paid
94,920
882,068

94,920
882,068


14.


Intangible assets




Intellectual property

£



Cost


At 1 January 2023
450,000



At 31 December 2023

450,000



Amortisation


At 1 January 2023
113,750


Charge for the year on owned assets
30,000



At 31 December 2023

143,750



Net book value



At 31 December 2023
306,250



At 31 December 2022
336,250



Page 22

 
RLE GLOBAL OPERATIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Tangible fixed assets





Computer equipment

£



Cost or valuation


At 1 January 2023
3,942



At 31 December 2023

3,942



Depreciation


At 1 January 2023
2,108


Charge for the year on owned assets
1,228



At 31 December 2023

3,336



Net book value



At 31 December 2023
606



At 31 December 2022
1,834


16.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
6,835,144


Additions
13,327


Disposals
(145,004)



At 31 December 2023
6,703,467




Page 23

 
RLE GLOBAL OPERATIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

RLE International Product Development Limited
1 Endeavour Drive, Festival Business Park, Basildon, Essex, SS14 3WB, UK
Ordinary
100%
RLE International Inc.
11400 Metro Airport Center Drive, Suite 100, Romulus, Michigan 48174
Ordinary
100%
RLE International Iberia S.L.U.
Fructuós Gelabert, 2-4, 2º 7ª, 08970 Sant Joan Despí, Barcelona
Ordinary
100%
RLE International China Inc.
Room 201, 880 Rushui Rd, Jiading District, Shanghai
Ordinary
100%
RLE FutureMotiv Limited
Insight House Riverside Business Park, Stoney Common Road, Stansted, Essex, CM24 8PL, UK
Ordinary
100%
RLE India Prvt. Ltd
8th Floor, Innovator Building, Whitefield, Bangalore, 560066 India
Ordinary
100%
RLE VESOFTx Spotka z.o.o.
Na Ostatnim Groszu 3/1 pietro, 54-207 Wroclaw, Poland
Ordinary
60%


17.


Debtors

2023
2022
£
£


Amounts owed by group undertakings
3,416,095
4,066,644

Prepayments and accrued income
481,905
808

3,898,000
4,067,452



18.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
47,762
21,315

47,762
21,315


Page 24

 
RLE GLOBAL OPERATIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
15,040
9,152

Amounts owed to group undertakings
3,648,906
3,765,092

Taxation and social security
61,501
130,617

Other creditors
863
810

Accruals and deferred income
765,893
813,472

4,492,203
4,719,143



20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



10,607,914 (2022 -10,607,914) Ordinary shares of £0.10 each
1,060,791
1,060,791



21.


Reserves

Share premium account

Share premium represents the excess of proceeds received over the nominal value of new shares issued.

Profit and loss account

All reserves in respect of profit and loss are distributable reserves.


22.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £7,709 (2022: £6,565). Contributions totalling £863 (2022: £810) were payable to the fund at the balance sheet date and are included in creditors.


23.


Related party transactions

The Company has taken advantage of the exemption in FRS102 which does not require disclosure of transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

Page 25

 
RLE GLOBAL OPERATIONS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Controlling party

The Company is a wholly owned subsidiary of RLE International GmbH which is the ultimate parent company. RLE International GmbH is a company registered in Germany, the address of the registered office is Brodhausen 1, 51491, Overath, Cologne, Germany.
There is deemed to be no ultimate controlling party in the current and preceding year due to R Laufenberg and H-J Laufenberg, and members of their families, each holding an equal shareholding in RLE International GmbH.
 
The parent of the largest and smallest group into which the results of this company are consolidated is RLE International GmbH, a company registered in Germany.  Copies of the group financial statements can be obtained from Brodhausen 1, 51491 Overath, Germany.

 
Page 26