Company registration number 01067101 (England and Wales)
ROBINSON YOUNG LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ROBINSON YOUNG LTD
COMPANY INFORMATION
Directors
Mr M C G Robinson
Mr K A Sperling
Mr J Bridge
Secretary
Mr J Bridge
Company number
01067101
Registered office
Ibson House
Eastern Way
Bury St Edmunds
IP32 7AB
Auditor
Ensors Accountants LLP
Saxon House
Moseley's Farm Business Centre
Fornham All Saints
Bury St Edmunds
IP28 6JY
Business address
Ibson House
Eastern Way
Bury St Edmunds
IP32 7AB
ROBINSON YOUNG LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
ROBINSON YOUNG LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The Directors are pleased to report a further year of profitable growth for the Company despite recessionary headwinds felt across the UK. Sales of £36.8m were +5.0% vs. last trading year. Supported by volume gains, the Business navigated high-cost inflation predominantly impacting administrative expenses, to deliver operating profit +£0.46m ahead of last trading year.
Robinson Young remains focused on growing our sales base for our principal suppliers, concentrating on profitable and growing sectors in a highly competitive marketplace that continues to experience a level of disruption. Furthermore, we were again able to extend our portfolio adding the health & beauty range of Henkel Ltd, which is testament to our market reputation. We were also delighted to add the Solar Buddies business, which is backed by the Dragons Den.
Gross margin accretion was driven by annualisation of necessary price increases, careful management of customer & supplier mix and optimising promotional strategy.
The Company has a strong presence in both its traditional markets of Retail and Cash and Carry; we have once again received awards recognising our high levels of customer service. In addition, we have experienced strong and continuing growth in new areas particularly the discount sector and on-line where we consider ourselves sector experts. Our expertise in servicing on-line retailers remains a key factor in this year’s results.
Customer service is at the heart of everything we do, and our sales and marketing team are renowned for their engagement and support of supplier and customer initiatives. We continue to attract new and exciting principal suppliers to enhance our offering in the marketplace and are well placed to continue to grow both top line sales and profits in the coming years.
Principal risks and uncertainties
The objective of the Company is to manage its risks within parameters agreed and approved by the Company's directors.
Credit Risk: The continued need for a secured bank facility and the large value of debt owed by customers at any one time possess a credit risk to the Company. This risk is mitigated through daily credit chasing, monitoring, and reporting of the debtor’s ledger and management of the cashflow position. Our cash availability remains very strong and supports us in not only financing our day to day working capital requirements, but also any capital investments, such as IT.
Trading Risk: The loss of key suppliers and key customers would form a risk to the trading potential of the Company. This risk is mitigated by building strong and long-lasting trading relationships based upon excellent customer service and continuous improvement. The business has a wide base of suppliers and customers ensuring that the Company is not over reliant on a small number of contracts. We have benefited from a great reputation in the market by landing new supplier contracts. In 2023 these included Solar Buddies, Botanycl and Cuxson Gerrard.
Exchange Risk: The Company is exposed to exchange rate movements and its subsequent effect on margin. The directors actively seek to mitigate this risk by using forward contracts, currency options and other hedging facilities.
Commodity Market Risk: The uncertain international economic environment inevitably increases the likelihood of commodity price rises. This puts pressure on margins and subsequently the profitability of the business. Constant communication about these issues with our key suppliers and customers enables prices to be adjusted accordingly to reflect these changes without undue market disruption.
ROBINSON YOUNG LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators
Sales and Profit: In a low margin industry sales levels and trading margins are key to ensuring continued profitability and growth. Net sales are monitored daily. Trading margins are negotiated and reviewed as and when applicable and reported in the monthly management accounts. Budgets and forecasts are prepared and reviewed on a regular basis.
Customer Satisfaction: The directors believe that to compete effectively in an extremely competitive market, high standards of customer service should be attained. Customer satisfaction is monitored internally via an analysis of delivery performance (daily and monthly), customer complaints, customer returns and sales credit notes and externally by reference to the annual Cash & Carry Management Supplier Survey. In 2023 we have further added to our suite of daily reporting, with KPI’s on customer delivery times.
Other performance indicators
Cashflow: The ability to meet all future business commitments is dependent on close monitoring of the company's cash position and on meeting all its secured banking obligations. Current and future cash requirements are monitored and reported upon on a daily, monthly, and annual basis.
Employees: The directors believe that a safe, healthy, and fulfilled workforce is key to ensuring continued success and for offering a platform for growth. The Company measures and reports on absence, staff turnover and employee stability via various indices on a regular basis.
Mr J Bridge
Director
24 July 2024
ROBINSON YOUNG LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activities of the Company during the year were that of sales, marketing and distribution brokers; selling non-food products to the distributive and allied trades. There have been no significant changes to the Company's principal activities during the year.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £420,795. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr M C G Robinson
Mr K A Sperling
Mr J Bridge
Supplier payment policy
The Company aims to pay all its creditors promptly and in accordance with contractual and other legal obligations. It is the company's policy to agree the payment terms with each supplier at the start of business and to ensure that they are aware of the terms of payment.
Auditor
In accordance with the company's articles, a resolution proposing that Ensors Accountants LLP be reappointed as auditor of the company will be put at a General Meeting.
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 review of business and risks.
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 company’s auditor 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 company’s auditor is aware of that information.
On behalf of the board
Mr J Bridge
Director
24 July 2024
ROBINSON YOUNG LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
ROBINSON YOUNG LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ROBINSON YOUNG LTD
- 5 -
Opinion
We have audited the financial statements of Robinson Young Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ROBINSON YOUNG LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ROBINSON YOUNG LTD (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our audit was designed to include tests of detail together with an assessment of the control environment to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. This included work on areas where we consider there is a higher risk of fraud including transactions with related parties, revenue recognition and management override of systems and control.
ROBINSON YOUNG LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ROBINSON YOUNG LTD (CONTINUED)
- 7 -
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company are complying with the legal and regulatory framework;
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
inquired of management, those charged with governance and the entity's solicitors about any non-compliance with laws and regulations.
Reviewed board minutes for any indication of non-compliance with laws and regulations and indications of fraud.
Tested journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions.
Robustly challenged accounting estimates to ensure no indication of management bias.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Malcolm McGready
Senior Statutory Auditor
For and on behalf of Ensors Accountants LLP
12 August 2024
Chartered Accountants
Statutory Auditor
Saxon House
Moseley's Farm Business Centre
Fornham All Saints
Bury St Edmunds
IP28 6JY
ROBINSON YOUNG LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
36,759,889
35,026,663
Cost of sales
(30,105,973)
(29,425,754)
Gross profit
6,653,916
5,600,909
Distribution costs
(4,244,262)
(4,155,661)
Administrative expenses
(1,610,211)
(1,109,468)
Other operating income
75,292
75,308
Operating profit
4
874,735
411,088
Interest receivable and similar income
8
18,158
7,039
Interest payable and similar expenses
9
(103,564)
(98,971)
Profit before taxation
789,329
319,156
Tax on profit
10
(178,375)
(60,413)
Profit for the financial year
610,954
258,743
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ROBINSON YOUNG LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
228,948
125,562
Investments
13
308,283
308,293
537,231
433,855
Current assets
Stocks
15
3,125,275
2,966,776
Debtors
16
9,306,168
8,669,950
Cash at bank and in hand
12,756
21,523
12,444,199
11,658,249
Creditors: amounts falling due within one year
17
(10,054,705)
(9,385,538)
Net current assets
2,389,494
2,272,711
Total assets less current liabilities
2,926,725
2,706,566
Provisions for liabilities
Deferred tax liability
19
38,000
8,000
(38,000)
(8,000)
Net assets
2,888,725
2,698,566
Capital and reserves
Called up share capital
21
12,120
12,120
Profit and loss reserves
22
2,876,605
2,686,446
Total equity
2,888,725
2,698,566
The financial statements were approved by the board of directors and authorised for issue on 24 July 2024 and are signed on its behalf by:
Mr M C G Robinson
Director
Company registration number 01067101 (England and Wales)
ROBINSON YOUNG LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
12,120
6,189,079
6,201,199
Year ended 31 December 2022:
Profit and total comprehensive income
-
258,743
258,743
Dividends
11
-
(3,761,376)
(3,761,376)
Balance at 31 December 2022
12,120
2,686,446
2,698,566
Year ended 31 December 2023:
Profit and total comprehensive income
-
610,954
610,954
Dividends
11
-
(420,795)
(420,795)
Balance at 31 December 2023
12,120
2,876,605
2,888,725
ROBINSON YOUNG LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Robinson Young Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Ibson House, Eastern Way, Bury St Edmunds, IP32 7AB. The company registration number is 01067101.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
- Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts and is recognised on despatch of the goods.
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.
ROBINSON YOUNG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets
Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and machinery
5 Years and 10 Years Straight Line
Fixtures, fittings & equipment
20% Straight line
Computer equipment
3 years and 7 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
1.6
Impairment of fixed assets
At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is calculated using the first-in first-out method and consists of direct materials and, where applicable, 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.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
ROBINSON YOUNG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
ROBINSON YOUNG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
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.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
ROBINSON YOUNG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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 leases asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.16
The company has arrangements whereby it factors its debts on a recourse basis. Accordingly, the gross amount of debts factored is included within trade debtors, and the cash advanced thereon is shown within other creditors. Interest and administration charges arising from factoring are charged to the profit and loss account when incurred.
ROBINSON YOUNG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Long Term Agreements
The company enters into Long Term Agreements with both its customers and suppliers. These agreements are usually based on achieving agreed sales targets on certain products. At the year end the company provides for amounts that it considers payable and recoverable under these contract terms.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock provisioning
The company sells products which are subject to changing consumer demands. As a result it is necessary to consider the recoverability of the cost of the stock and the associated provisioning required. When calculating the provision, management considers the nature and age of the stock as well as applying assumptions around anticipated saleability of stock.
Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the aging profile of debtors, whether covered by insurance and historical experience.
Depreciation
The company estimates the rates of depreciation used to write down the difference classes of assets that the company owns. This is based on prior experience of asset lives while taking into account any additional circumstances.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by geographical market
Great Britain
36,651,319
34,766,786
Other European Countries
108,570
259,877
36,759,889
35,026,663
ROBINSON YOUNG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 17 -
2023
2022
£
£
Other revenue
Interest income
658
39
Dividends received
17,500
7,000
The company's turnover is all attributable to the principal activity.
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
191,789
(21,580)
Depreciation of owned tangible fixed assets
45,782
37,216
Operating lease charges
397,586
411,212
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
21,000
17,460
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Sales and distribution staff
51
52
Administrative staff
22
21
Total
73
73
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,539,794
2,243,407
Social security costs
219,076
211,074
Pension costs
99,473
98,030
2,858,343
2,552,511
ROBINSON YOUNG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
154,249
110,829
Company pension contributions to defined contribution schemes
5,805
15,547
160,054
126,376
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 3).
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
658
39
Income from fixed asset investments
Income from shares in group undertakings
17,500
7,000
Total income
18,158
7,039
9
Interest payable and similar expenses
2023
2022
£
£
Interest on invoice finance arrangements
96,456
98,971
Other interest
7,108
103,564
98,971
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
143,000
52,000
Adjustments in respect of prior periods
5,375
413
Total current tax
148,375
52,413
Deferred tax
Origination and reversal of timing differences
30,000
8,000
Total tax charge
178,375
60,413
ROBINSON YOUNG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 19 -
The UK Corporation tax rates were 19% until 31st March 2023, from 1 April 2023 the corporation tax rate increased to 25%. Deferred taxes for both the previous and current year have been calculated using the rates enacted at the balance sheet date, being 25%.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
789,329
319,156
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
197,332
60,640
Tax effect of expenses that are not deductible in determining taxable profit
6,929
2,707
Under/(over) provided in prior years
5,375
Deferred tax adjustments in respect of prior years
(17,683)
Dividend income
(4,375)
Other adjustments
(72)
(2,934)
Adjustment re change in rate of tax
(9,131)
Taxation charge for the year
178,375
60,413
11
Dividends
2023
2022
£
£
Interim paid
420,795
3,761,376
ROBINSON YOUNG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
12
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 January 2023
491,710
985,228
1,476,938
Additions
149,168
149,168
At 31 December 2023
491,710
1,134,396
1,626,106
Depreciation and impairment
At 1 January 2023
421,983
929,393
1,351,376
Depreciation charged in the year
7,428
38,354
45,782
At 31 December 2023
429,411
967,747
1,397,158
Carrying amount
At 31 December 2023
62,299
166,649
228,948
At 31 December 2022
69,727
55,835
125,562
13
Fixed asset investments
2023
2022
Notes
£
£
Investments in associates
14
58,283
58,293
Unlisted investments
250,000
250,000
308,283
308,293
Unlisted investments relate to 250,000 A shares of £1 each in Depden Developments Limited a company incorporated in England and Wales. These are non voting shares and can be redeemed at the option of Depden Developments Limited. This is valued at cost less impairment which is equivalent to fair value.
Movements in fixed asset investments
Shares in associate
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2023
58,293
250,000
308,293
Valuation changes
(10)
-
(10)
At 31 December 2023
58,283
250,000
308,283
Carrying amount
At 31 December 2023
58,283
250,000
308,283
At 31 December 2022
58,293
250,000
308,293
ROBINSON YOUNG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
14
Associates
Details of the company's associates at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Powermed Plus Limited
Chilcompton Green Lane, Aspley Guise, Milton Keynes
Ordinary
35.00
15
Stocks
2023
2022
£
£
Finished goods and goods for resale
3,125,275
2,966,776
Consignment stock excluded from the Balance Sheet at 31 December 2023 had a cost of £2,459,111 (2022: £3,748,784).
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
6,830,118
6,300,056
Amounts owed by group undertakings
1,788,124
1,788,124
Other debtors
518,698
414,543
Prepayments and accrued income
169,228
167,227
9,306,168
8,669,950
Included in trade debtors are debts of £6,374,811 (2022: £5,491,090) which have been assigned to Lloyds TSB Commercial Finance Limited. The company has received advances of £2,297,491 (2022: £2,785,582) against these debts which are included within other creditors.
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
107,272
Other borrowings
18
2,297,491
2,785,582
Trade creditors
4,724,759
4,460,165
Amounts owed to group undertakings
1,139,815
741,051
Corporation tax
143,000
10,614
Other taxation and social security
347,276
250,841
Other creditors
742,027
674,477
Accruals and deferred income
660,337
355,536
10,054,705
9,385,538
ROBINSON YOUNG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
18
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
107,272
Other loans
2,297,491
2,785,582
2,297,491
2,892,854
Payable within one year
2,297,491
2,892,854
The bank overdraft is secured by a debenture dated 13 May 2009.
Other loans consist of amounts advanced from debt factoring and is secured against trade debtors.
19
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
ACAs
47,000
19,000
Retirement benefit obligations
(2,000)
(2,000)
General Provision
(7,000)
-
Unrealised foreign exchange gain
-
(9,000)
38,000
8,000
2023
Movements in the year:
£
Liability at 1 January 2023
8,000
Charge to profit or loss
30,000
Liability at 31 December 2023
38,000
The deferred tax asset set out above is expected to reverse within 12 months and relates to accelerated capital allowances and unrealised foreign exchange adjustments that are expected to mature within the same period.
ROBINSON YOUNG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
99,473
98,030
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.
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
12,120
12,120
12,120
12,120
The company has one class of ordinary shares which carry no rights to fixed income. Each ordinary share ranks pari passu in regards to voting rights and dividends.
22
Profit and loss reserves
The profit and loss account includes all current and prior period retained profits and losses.
23
Financial commitments, guarantees and contingent liabilities
At 31 December the company had outstanding forward currency contracts for the purpose of paying its creditors. The total commitment is for $1,107,000 (2022: $2,469,000) for the 9 Months ending September 2025. The effect of the contracts are to hedge the company's exposure to fluctuation in the exchange rates.
24
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
420,558
387,544
Between two and five years
1,509,455
1,221,209
In over five years
937,333
1,233,333
2,867,346
2,842,086
26
Directors' transactions
Investments includes £250,000 relating to 250,000 A shares of £1 each in Depden Developments Limited a company incorporated in England and Wales. These are non voting shares and can be redeemed at the option of Depden Developments Limited. This is valued at cost less impairment as fair value cannot be reliably determined. Mr M C G Robinson is the sole shareholder and director of Depden Developments Limited.
ROBINSON YOUNG LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
27
Ultimate controlling party
The immediate and ultimate parent company is considered to be Robinson Young Holdings Limited, a company registered in England and Wales. The company is considered to be both the immediate and ultimate parent company. Copies of the Robinson Young Holdings Limited group financial statements are available from The Registrar of Companies, Companies House, Crown Way, Maindy, Cardiff.
At the year end £1,788,124 (2022: £1,788,124) was receivable from the parent company and is included in debtors due within one year.
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