Company registration number 14746623 (England and Wales)
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
COMPANY INFORMATION
Director
Mr C Ghinn
(Appointed 21 March 2023)
Company number
14746623
Registered office
Unit S
Springhead
Enterprise Park, Springhead Road
Northfleet
Kent
United Kingdom
DA11 8HJ
Auditor
Benee Consulting Limited
48 Durrell Drive
Rugby
Warwickshire
CV22 7GW
Accountants
Oldfield Advisory LLP
Santis House
Curriers Close
Coventry
CV4 8AW
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Director's responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 33
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the period ended 31 December 2023.

Review of the business

The directors have undertaken a fair review of the business and some of the details are shown in the paragraphs below.

 

Russland Investments Limited incorporated on 21 March 2023 and was inactive until it was inserted as the new parent company of the Fixmart group of companies on 18 September 2023.

 

Principal activities

The group operates as a leading distributor of fixings, fasteners, tools and site consumables to building services trades and supplying fast delivery to construction sites across the South-East of the UK.

 

Group reconstruction

As detailed in accounting policy 1.1 of the financial statements, a group reconstruction was undertaken during the period to facilitate the introduction of new shareholders. This resulted in Russland Investments Limited acquiring a 51% controlling interest in the Fixmart group of companies, on the 18 September 2023. The group reconstruction has been accounted for using the purchase method of accounting. The use of merger accounting was prohibited due to a change in the ultimate equity shareholders and an alteration of the non-controlling interests in the net assets of the group. As the purchase method of accounting has been used these financial statements only include the financial results of the group from the 18 September 2023 - being the date that control of the group was obtained.

 

Business environment

The building services and construction sector is a large sector in the UK, and relies on a secure and efficient supply chain.  The group is constantly refining its performance in order to meet this challenge, and focus on achieving its targets.

 

Strategy

As detailed in the preceding paragraphs, the company acquired a family-controlled group. The group has strong values and holds itself to the highest standards. The business was established in 1977, and the success of the group to date is rooted in excellent service and stock availability of quality products. The group strives to meet the demands of its customers, at the same time as targeting high efficiency and sustainability goals.

Principal risks and uncertainties

Risk acceptance and risk management is continually monitored by means of a framework of policies, procedures and internal controls.  All such policies and procedures are overseen by the board of directors and senior management and are constantly under review to comply with statutory regulations and best practice.

 

The principal risks to the business are the general economic situation in the United Kingdom, with inflationary pressures and low confidence. The group continues to offer credit terms to all established customers and the amount of credit offered is continually monitored in order to lessen the effect of any potential defaults, as well as a level of credit insurance in place. 

 

Details of the company approach to liquidity and credit risk are given in the directors report.

Development and performance

The Directors considered that 2023 was an encouraging consolidation year, despite being largely held back by the economic pressures in the market. The business demonstrates the continued underlying financial and strategic core strength of the its value, providing a basis for future growth.

RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

The directors reported an operating profit for the group of 5.7% for the period ended 31 December 2023.

 

The trading subsidiary, Fixmart Limited, reported an operating profit of 21.9% for the year ended 31 December 2023, continuing a track record of strong performance.

 

At the period end, the group had shareholders funds of £13,633,149. The directors believe the group's position to be satisfactory, especially as the group's current assets exceed its current liabilities by £7,276,545, having a strong group current ratio of 3.8 : 1 at the end of the period.

 

Future developments

The group's primary trading subsidiary, Fixmart Limited, continues to perform well and is constantly striving to serve customers with increasing excellent service to enhance performance and customer satisfaction.

 

The directors believe that there is a very strong foundation and have put together a strategic growth plan for the next three years. They will continue to develop the infrastructure to deliver this on plan.

On behalf of the board

.............................................
Mr C Ghinn
Director
19 August 2024
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -

The director presents his annual report and financial statements for the period ended 31 December 2023.

Principal activities

The group operates as a leading distributor of fixings, fasteners, tools and site consumables to building services trades and supplying fast delivery to construction sites across the South-East of the UK.

 

Group reconstruction

Russland Investments Limited incorporated on 21 March 2023 and was inactive until it was inserted as the new parent company of the Fixmart group of companies on 18 September 2023, as detailed in the accounting policy 1.1.

As detailed in the accounting policy 1.1 of the financial statements, the group reconstruction has been accounted for using the acquisition accounting method. Therefore, the comparative financial performance, financial position and cashflows are those reported in the consolidated financial statements of the previous group parent, Fixmart Group UK Limited, for the period ended 31 December 2023.

Results and dividends

The results for the period are set out on page 13.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

The director who held office during the period and up to the date of signature of the financial statements was as follows:

Mr C Ghinn
(Appointed 21 March 2023)
Financial instruments

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Future developments

Details of future developments are given in the Strategic Report.

Auditor

Benee Consulting Limited were appointed as auditor to the company and in accordance with section 485 of Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

 

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
..............................................
Mr C Ghinn
Director
19 August 2024
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 5 -

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
- 6 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

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

RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Extent to which the audit was considered capable of detecting irregularities, including fraud;

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.


RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
- 8 -

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

 

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

 

 

 

Sarah Flint BSc FCA (Senior Statutory Auditor)
For and on behalf of Benee Consulting Limited
19 August 2024
Chartered Accountant and Statutory Auditor
48 Durrell Drive
Rugby
Warwickshire
CV22 7GW
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 9 -
Period
ended
31 December
2023
Notes
£
Turnover
3
4,898,621
Cost of sales
(3,620,886)
Gross profit
1,277,735
Administrative expenses
(1,056,324)
Other operating income
55,509
Operating profit
4
276,920
Interest receivable and similar income
8
14,113
Interest payable and similar expenses
9
(2,118)
Profit before taxation
288,915
Tax on profit
10
(151,382)
Profit for the financial period
137,533
Profit for the financial period is attributable to:
- Owners of the parent company
(15,413)
- Non-controlling interests
152,946
137,533

The profit and loss account has been prepared on the basis that all operations are continuing operations.

RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 10 -
Period
ended
31 December
2023
£
Profit for the period
137,533
Other comprehensive income
-
Total comprehensive income for the period
137,533
Total comprehensive income for the period is attributable to:
- Owners of the parent company
(15,413)
- Non-controlling interests
152,946
137,533
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
Notes
£
£
Fixed assets
Goodwill
11
5,859,336
Tangible assets
12
636,318
6,495,654
Current assets
Stocks
15
1,686,872
Debtors
16
4,170,591
Cash at bank and in hand
4,011,095
9,868,558
Creditors: amounts falling due within one year
17
(2,592,013)
Net current assets
7,276,545
Total assets less current liabilities
13,772,199
Creditors: amounts falling due after more than one year
18
(44,693)
Provisions for liabilities
Deferred tax liability
20
94,357
(94,357)
Net assets
13,633,149
Capital and reserves
Called up share capital
21
9,846,280
Profit and loss reserves
(15,413)
Equity attributable to owners of the parent company
9,830,867
Non-controlling interests
3,802,282
13,633,149

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

The financial statements were approved and signed by the director and authorised for issue on 19 August 2024
19 August 2024
..............................................
Mr C Ghinn
Director
Company registration number 14746623 (England and Wales)
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
Notes
£
£
Fixed assets
Investments
13
9,846,280
Current assets
Cash at bank and in hand
1,312,568
Creditors: amounts falling due within one year
17
(1,315,670)
Net current liabilities
(3,102)
Net assets
9,843,178
Capital and reserves
Called up share capital
21
9,846,280
Profit and loss reserves
(3,102)
Total equity
9,843,178

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £3,102.

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

The financial statements were approved and signed by the director and authorised for issue on 19 August 2024
19 August 2024
..............................................
Mr C Ghinn
Director
Company registration number 14746623 (England and Wales)
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 21 March 2023
-
-
-
-
-
Period ended 31 December 2023:
Profit and total comprehensive income
-
(15,413)
(15,413)
152,946
137,533
Issue of share capital
21
9,846,280
-
9,846,280
-
9,846,280
Dividends
-
-
-
(82,209)
(82,209)
Acquisition of subsidiary
-
-
-
3,731,545
3,731,545
Balance at 31 December 2023
9,846,280
(15,413)
9,830,867
3,802,282
13,633,149
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 21 March 2023
-
-
-
Period ended 31 December 2023:
Profit and total comprehensive income
-
(3,102)
(3,102)
Issue of share capital
21
9,846,280
-
9,846,280
Balance at 31 December 2023
9,846,280
(3,102)
9,843,178
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 15 -
2023
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
1,140,033
Interest paid
(2,118)
Income taxes paid
(241,706)
Net cash inflow/(outflow) from operating activities
896,209
Investing activities
Purchase of business
2,370,438
Purchase of tangible fixed assets
(51,147)
Proceeds from disposal of tangible fixed assets
11,752
Repayment of loans
152,780
Interest received
14,113
Net cash generated from/(used in) investing activities
2,497,936
Financing activities
Proceeds from borrowings
812,500
Repayment of borrowings
(80,000)
Payment of finance leases obligations
(33,341)
Dividends paid to non-controlling interests
(82,209)
Net cash generated from/(used in) financing activities
616,950
Net increase in cash and cash equivalents
4,011,095
Cash and cash equivalents at beginning of period
-
Cash and cash equivalents at end of period
4,011,095
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 16 -
2023
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
492,644
Investing activities
Interest received
7,424
Net cash generated from/(used in) investing activities
7,424
Financing activities
Proceeds from borrowings
812,500
Net cash generated from/(used in) financing activities
812,500
Net increase in cash and cash equivalents
1,312,568
Cash and cash equivalents at beginning of period
-
Cash and cash equivalents at end of period
1,312,568
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 17 -
1
Accounting policies
Company information

Russland Investments Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit S, Springhead, Enterprise Park, Springhead Road, Northfleet, Kent, United Kingdom, DA11 8HJ.

 

The group consists of Russland Investments Limited and all of its subsidiaries.

 

The group operates as a leading distributor of fixings, fasteners, tools and site consumables to building services trades and supplying fast delivery to construction sites across the South-East of the UK.

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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

Group reconstruction

Russland Investments Limited incorporated on 21 March 2023 and was inactive until it was inserted as the new parent company of the Fixmart group of companies, on 18 September 2023. The reconstruction has been undertaken to facilitate the introduction of new shareholders.

The group reconstruction has been accounted for using the purchase method of accounting. The use of merger accounting was prohibited due to a change in the ultimate equity shareholders and an alteration of the non-controlling interests in the net assets of the group.

As the purchase method of accounting has been used these financial statements only include the financial results of the group from the 18 September 2023 - being the date that control of the group commenced. No comparative financial information has been reported.

The names of the combining entities (other than the reporting entity) are:

Further details of the combining entities, and the fair value of the net assets acquired, are given in note 23 of the financial statements.

RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.2
Business combinations

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

 

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

1.3
Basis of consolidation

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

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

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

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.7
Tangible fixed assets

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

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

Integral plant
10% on reducing balance
Fixtures and fittings
25% on reducing balance
Computers
33% on reducing balance
Motor vehicles
25% on reducing balance

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

1.8
Fixed asset investments

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

 

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

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

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 group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

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

 

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

RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -

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

 

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

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

1.10
Stocks

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

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

1.12
Financial instruments

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

 

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

 

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

Basic financial assets

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

RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
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 group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

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

1.14
Taxation

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

Current tax

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

Deferred tax

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

 

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

RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.15
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.

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

2
Judgements and key sources of estimation uncertainty

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

 

As detailed in note 20 of the financial statements a fair value exercise was undertaken on the net assets values of the acquired subsidiaries. This required the directors to exercise their professional judgement, most notably when estimating the fair value of stock and allocating an appropriate profit allowance to the procurement activities undertaken prior to control of the group being obtained and the selling and distribution activities undertaken post acquisition.

3
Turnover and other revenue
2023
£
Turnover analysed by class of business
Sales of fixings and tools
4,898,621
2023
£
Turnover analysed by geographical market
United Kingdom
4,898,621
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 24 -
2023
£
Other revenue
Interest income
14,113

All sales were made in United Kingdom.

4
Operating profit
2023
£
Operating profit for the period is stated after charging/(crediting):
Exchange losses
68
Depreciation of owned tangible fixed assets
46,127
Profit on disposal of tangible fixed assets
(3,233)
Amortisation of intangible assets
179,710
Operating lease charges
93,704
5
Auditor's remuneration
2023
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
11,000
Audit of the financial statements of the company's subsidiaries
16,000
27,000
6
Employees

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

Group
Company
2023
2023
Number
Number
17
-
29
-
5
-
Total
51
-
0
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2023
2023
£
£
Wages and salaries
467,660
-
0
Social security costs
41,571
-
509,231
-
0
7
Director's remuneration
2023
£
Remuneration for qualifying services
88,868
8
Interest receivable and similar income
2023
£
Interest income
Interest on bank deposits
14,113
2023
Investment income includes the following:
£
Interest on financial assets not measured at fair value through profit or loss
14,113
9
Interest payable and similar expenses
2023
£
Other finance costs:
Interest on finance leases and hire purchase contracts
2,118
10
Taxation
2023
£
Current tax
UK corporation tax on profits for the current period
253,874
Deferred tax
Origination and reversal of timing differences
(102,492)
Total tax charge
151,382
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 26 -

The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

2023
£
Profit before taxation
288,915
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50%
67,895
Tax effect of expenses that are not deductible in determining taxable profit
9,694
Effect of change in corporation tax rate
105
Permanent capital allowances in excess of depreciation
26,764
Amortisation on assets not qualifying for tax allowances
46,924
Taxation charge
151,382

Factors that may affect future tax charges

 

From 1 April 2023, the main rate of corporation tax increased from 19% to 25% for companies in the United Kingdom with profits exceeding £250,000. This change will place a greater tax burden on the company in future accounting periods, in comparison with previous years.

11
Intangible fixed assets
Group
Goodwill
£
Cost
At 21 March 2023
-
0
Additions
6,039,046
At 31 December 2023
6,039,046
Amortisation and impairment
At 21 March 2023
-
0
Amortisation charged for the period
179,710
At 31 December 2023
179,710
Carrying amount
At 31 December 2023
5,859,336
The company had no intangible fixed assets at 31 December 2023.
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 27 -
12
Tangible fixed assets
Group
Integral plant
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 21 March 2023
-
0
-
0
-
0
-
0
-
0
Additions
51,704
276,052
33,938
329,270
690,964
Disposals
-
0
(16,120)
-
0
(8,966)
(25,086)
At 31 December 2023
51,704
259,932
33,938
320,304
665,878
Depreciation and impairment
At 21 March 2023
-
0
-
0
-
0
-
0
-
0
Depreciation charged in the period
1,556
19,215
3,808
21,548
46,127
Eliminated in respect of disposals
-
0
(16,120)
-
0
(447)
(16,567)
At 31 December 2023
1,556
3,095
3,808
21,101
29,560
Carrying amount
At 31 December 2023
50,148
256,837
30,130
299,203
636,318
The company had no tangible fixed assets at 31 December 2023.
13
Fixed asset investments
Group
Company
2023
2023
Notes
£
£
Investments in subsidiaries
14
-
0
9,846,280
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 21 March 2023
-
Additions
9,846,280
At 31 December 2023
9,846,280
Carrying amount
At 31 December 2023
9,846,280
14
Subsidiaries

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

RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
14
Subsidiaries
(Continued)
- 28 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Fixmart Group UK Limited
Unit S, Springhead Enterprise Park, Springhead Road, Northfleet, Kent, DA11 8HG
Ordinary
51.00
-
Fixmart Group Holdings Limited
As above
Ordinary
-
51.00
Fixmart Group UK Limited
As above
Ordinary
-
51.00
Fixmart Holdings Limited
As above
Ordinary
-
51.00
Fixmart Limited
As above
Ordinary
-
51.00
15
Stocks
Group
Company
2023
2023
£
£
Finished goods and goods for resale
1,686,872
-
0

The differences between purchase and replacement cost are not material.

16
Debtors
Group
Company
2023
2023
Amounts falling due within one year:
£
£
Trade debtors
3,588,721
-
0
Other debtors
438,978
-
0
Prepayments and accrued income
142,892
-
0
4,170,591
-
17
Creditors: amounts falling due within one year
Group
Company
2023
2023
Notes
£
£
Obligations under finance leases
19
62,285
-
0
Trade creditors
855,647
-
0
Amounts owed to group undertakings
-
0
903,398
Corporation tax payable
421,066
-
0
Other taxation and social security
313,507
-
Other creditors
425,153
400,000
Accruals and deferred income
514,355
12,272
2,592,013
1,315,670
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 29 -
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2023
Notes
£
£
Obligations under finance leases
19
44,693
-
0
19
Finance lease obligations
Group
Company
2023
2023
£
£
Future minimum lease payments due under finance leases:
Within one year
62,285
-
0
In two to five years
44,693
-
0
106,978
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Deferred taxation

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

Liabilities
2023
Group
£
Accelerated capital allowances
100,767
Revaluations
(6,410)
94,357
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the period:
£
£
Asset at 21 March 2023
-
-
Charge to profit or loss
94,357
-
Liability at 31 December 2023
94,357
-
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
20
Deferred taxation
(Continued)
- 30 -

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

21
Share capital
Group and company
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary of £1 each
9,846,280
9,846,280
22
Non-controlling interest

The non-controlling interest control 49% of the ordinary share capital of Fixmart Group UK Limited.

23
Acquisition of a business

On 18 September 2023 the group acquired 51% percent of the issued capital of Fixmart Group UK Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Intangible assets
80,619
-
80,619
Property, plant and equipment
601,867
(31,862)
570,005
Inventories
1,652,759
422,916
2,075,675
Trade and other receivables
5,592,850
-
5,592,850
Cash and cash equivalents
2,370,438
-
2,370,438
Borrowings
(130,989)
-
(130,989)
Obligations under finance leases
(74,507)
-
(74,507)
Trade and other payables
(1,523,347)
-
(1,523,347)
Tax liabilities
(711,515)
-
(711,515)
Provisions
(436,981)
-
(436,981)
Deferred tax
(99,086)
(97,764)
(196,850)
Total identifiable net assets
7,322,108
293,290
7,615,398
Non-controlling interests
(3,731,545)
Goodwill
5,962,427
Total consideration
9,846,280
The consideration was satisfied by:
£
Issue of shares
9,846,280
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
23
Acquisition of a business
(Continued)
- 31 -
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
4,898,621
Profit after tax
137,533

The names of the combining entities (other than the reporting entity) are:

 

The book values detailed above comprise the five Fixmart companies. The activities of the companies are detailed below:

 

24
Related party transactions

Included in debtors falling due within one year, are loans made to directors totalling £131,503. No interest is being charged on these loans and they are repayable on demand.

 

Included within debtors falling due within one year is an interest free loan to The Welfare Trust of £183,252 (2022 - £136,341).

 

Included in debtors falling due within one year, are loans made to related parties totalling £33,768. No interest is being charged on these loans and they are repayable on demand.

 

Included in debtors falling due within one year, are loans made to a director of a subsidiary company of £83,920. No interest is being charged on these loans and they are repayable on demand.

 

The group transferred the leasehold property to Northfleet Properties Ltd by way of a dividend in specie at a valuation of £1,300,000. Northfleet Properties Ltd is controlled by directors of Fixmart Group UK Limited.

 

During the period, the group repaid a loan of £80,000 which had been made by a close family member of one of the directors of the company's subsidiaries.

 

Included in creditors falling due within one year, are loans from directors totalling £407,480. No interest is being charged on these loans and they are repayable on demand.

 

Included within wages is an annual salary of £15,000 paid to one of the directors' daughters.

RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 32 -
25
Directors' transactions

Directors advances, credits or guarantees

 

Included in debtors falling due within one year, are loans made to directors totalling £131,503. The maximum balance during the year was £1,020,603. No interest is being charged on these loans and they are repayable on demand.

26
Ultimate Controlling Party

The ultimate controlling party is the board of Directors.

27
Cash generated from/(absorbed by) group operations
2023
£
Profit for the period after tax
137,533
Adjustments for:
Taxation charged
151,382
Finance costs
2,118
Investment income
(14,113)
Gain on disposal of tangible fixed assets
(3,233)
Amortisation and impairment of intangible assets
179,710
Depreciation and impairment of tangible fixed assets
46,127
Movements in working capital:
Decrease in stocks
388,803
Decrease in debtors
1,269,479
Decrease in creditors
(1,017,773)
Cash generated from/(absorbed by) operations
1,140,033
28
Cash generated from/(absorbed by) operations - company
2023
£
Loss for the period after tax
(3,102)
Adjustments for:
Investment income
(7,424)
Movements in working capital:
Increase in creditors
503,170
Cash generated from/(absorbed by) operations
492,644
RUSSLAND INVESTMENTS LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 33 -
29
Analysis of changes in net funds - group
21 March 2023
Cash flows
Acquisitions and disposals
New finance leases
31 December 2023
£
£
£
£
£
Cash at bank and in hand
-
4,011,095
-
-
4,011,095
Obligations under finance leases
-
(106,978)
65,812
(65,812)
(106,978)
-
3,904,117
65,812
(65,812)
3,904,117
30
Analysis of changes in net funds - company
21 March 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
-
1,312,568
1,312,568
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