Company registration number 06400968 (England and Wales)
RDM (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
RDM (UK) LIMITED
COMPANY INFORMATION
Directors
R Puttick
D Holloway
D Watkins
A Arnold
A Bavastock
Company number
06400968
Registered office
153 Lynchford Road
Farnborough
Hampshire
GU14 6HG
Auditor
Alliotts LLP
3 London Square
Cross Lanes
Guildford
GU1 1UJ
RDM (UK) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 26
RDM (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Fair review of the business

Following a number of challenging years adversely impacted by both the national and global economic environments, 2023 might well have been the year that the corner was turned. However, the disastrous consequences of the Liz Truss premiership, followed by the Sunak government’s inability to drive the economy, meant that 2023 remained a difficult year for trading. Despite the challenging economic environment during the year, the company achieved strong turnover and profits, with continued growth in both online performance and bricks and mortar store sales.

The Directors are confident that the strong performance already seen in 2024 will continue, leading to both record turnover and profit levels. The company’s strategy of offering to our customers the widest possible range of motorcycle clothing brands alongside industry leading customer service will continue to drive the company’s future growth in turnover and profitability.

The Directors believe that the company is perfectly positioned to appeal to both the online customer as well as those who prefer the more traditional methods of in store shopping.

 

Principal risks and uncertainties

The main risks faced by the company under normal circumstances are market risks through global and national factors but the directors believe the industry is among the more resilient sectors of the economy. The uncertainty generated by ongoing conflicts in Ukraine and Gaza as well as the continuing cost of living crisis will continue to create challenges for retailers, but the Directors remain confident that the company is in a good position to ride the current storms.

 

Key performance indicators

The Board manages the performance of the business using key performance indicators tailored as appropriate for the division in question. Turnover, margin, sales per square foot, stock days are all key in measuring the company’s performance.

Other performance indicators

 

2023

2022

2021

2020

2019

Turnover

24,125,675

22,102,788

19,073,041

13,593,840

15,784,911

Gross Profit

7,591,639

7,488,991

5,723,792

3,646,135

5,437,644

Future developments

Online sales continue to grow as a percentage of all sales. The company continues to invest budget and resources to ensure that the website offering is industry leading and able to take advantage of rapidly changing website technology. The company’s strategy of “Clicks and Mortar” ie a combination of stores for customers to visit as well as an excellent online offering continues to be the company’s preferred model and the Directors anticipate additional stores in key locations in future.

 

On behalf of the board

D Watkins
Director
3 September 2024
RDM (UK) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Principal activities

The principal activity of the company was that of the sale of motorcycle clothing, accessories, new and used motorcycles and the servicing of these, which the directors consider to be one class of business.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £167,850. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

R Puttick
D Holloway
D Watkins
A Arnold
A Bavastock
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

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.

Medium-sized companies exemption

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

RDM (UK) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
D Watkins
Director
3 September 2024
RDM (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RDM (UK) LIMITED
- 4 -
Opinion

We have audited the financial statements of RDM (UK) Limited (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, the 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 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

RDM (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RDM (UK) LIMITED
- 5 -
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:

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

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

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

RDM (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RDM (UK) LIMITED
- 6 -

Audit response to risks identified

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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.

Christopher Cairns BSc FCA
Senior Statutory Auditor
For and on behalf of Alliotts LLP
3 September 2024
Chartered Accountants
Statutory Auditor
3 London Square
Cross Lanes
Guildford
GU1 1UJ
RDM (UK) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
24,125,675
22,102,787
Cost of sales
(16,534,036)
(14,613,796)
Gross profit
7,591,639
7,488,991
Administrative expenses
(6,966,524)
(6,552,050)
Other operating income
-
0
2,842
Operating profit
4
625,115
939,783
Interest payable and similar expenses
7
(52,655)
(54,820)
Amounts written off investments
8
(31,933)
(31,933)
Profit before taxation
540,527
853,030
Tax on profit
9
(146,649)
(163,551)
Profit for the financial year
393,878
689,479
RDM (UK) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
287,353
252,952
Tangible assets
13
455,923
392,135
Investments
14
63,865
95,797
807,141
740,884
Current assets
Stocks
16
9,857,921
8,396,618
Debtors
17
372,706
538,067
Cash at bank and in hand
1,587,217
1,994,983
11,817,844
10,929,668
Creditors: amounts falling due within one year
18
(9,481,814)
(8,826,523)
Net current assets
2,336,030
2,103,145
Total assets less current liabilities
3,143,171
2,844,029
Creditors: amounts falling due after more than one year
19
(1,564,892)
(1,500,654)
Provisions for liabilities
Deferred tax liability
22
147,837
138,961
(147,837)
(138,961)
Net assets
1,430,442
1,204,414
Capital and reserves
Called up share capital
25
85
91
Capital redemption reserve
26
26
20
Profit and loss reserves
1,430,331
1,204,303
Total equity
1,430,442
1,204,414

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

The financial statements were approved by the board of directors and authorised for issue on 3 September 2024 and are signed on its behalf by:
D Watkins
Director
Company registration number 06400968 (England and Wales)
RDM (UK) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
111
-
0
800,481
800,592
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
689,479
689,479
Dividends
10
-
-
(163,552)
(163,552)
Own shares acquired
-
-
(122,105)
(122,105)
Redemption of shares
25
(20)
20
-
0
-
0
Balance at 31 December 2022
91
20
1,204,303
1,204,414
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
393,878
393,878
Dividends
10
-
-
(167,850)
(167,850)
Redemption of shares
25
(6)
6
-
0
-
0
Balance at 31 December 2023
85
26
1,430,331
1,430,442
RDM (UK) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
636,739
549,774
Interest paid
(52,655)
(54,820)
Income taxes paid
(136,148)
(88,967)
Net cash inflow from operating activities
447,936
405,987
Investing activities
Purchase of intangible assets
(114,867)
(110,411)
Purchase of tangible fixed assets
(199,182)
(196,042)
Proceeds from disposal of tangible fixed assets
12,451
40,700
Proceeds from disposal of subsidiaries
31,932
31,933
Proceeds from disposal of investments
(31,933)
(31,933)
Net cash used in investing activities
(301,599)
(265,753)
Financing activities
Purchase of treasury shares
-
0
(122,105)
Repayment of borrowings
211,338
(43,209)
Repayment of bank loans
(162,500)
(81,250)
Payment of finance leases obligations
30,180
4,932
Dividends paid
(167,850)
(163,552)
Net cash used in financing activities
(88,832)
(405,184)
Net increase/(decrease) in cash and cash equivalents
57,505
(264,950)
Cash and cash equivalents at beginning of year
1,529,712
1,794,662
Cash and cash equivalents at end of year
1,587,217
1,529,712
Relating to:
Cash at bank and in hand
1,587,217
1,994,983
Bank overdrafts included in creditors payable within one year
-
0
(465,271)
RDM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

RDM (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 153 Lynchford Road, Farnborough, Hampshire, GU14 6HG.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 402 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that none of it's subsidiary undertakings need to be included in the consolidated. The financial statements present information about the company as an individual entity and not about its group.

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 at the point of sale.

 

The company sells motor bikes and motor bike accessories in their stores and at exhibitions. In all cases money is received at the point of sale, either from the customer or from a financing company where the customer chooses to take out finance.

 

Online sales are recognised at the point the customer accepts the goods.

 

Motor bike services are also carried out with sales recognised once the service is complete and paid for.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
25% on written down value
Website
25% on written down value
RDM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.5
Tangible fixed assets

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

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

Land and buildings Leasehold
Over the lesser of the period of the lease and 10 years on cost
Plant and machinery
25% on written down value
Fixtures, fittings & equipment
25% on written down value
Motor vehicles
25% on cost

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.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

1.7
Impairment of fixed assets

At each reporting period 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price after making due allowance for obsolete and slow moving items.

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.

1.9
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.

RDM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.10
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.

RDM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

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

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
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.

1.12
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.

RDM (UK) LIMITED
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.

1.13
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.

1.14
Retirement benefits
The company operates a defined contribution scheme. Contributions payable for the year are charged in the profit and loss account.
1.15
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.

1.16
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.17
Leases

Tangible fixed assets acquired under finance leases or hire purchase contracts are capitalised and depreciated in the same manner as other tangible fixed assets. The related obligations, net of future finance charges, are included in creditors.

 

Rentals applicable to operating leases, where substantially all the benefits and risks of ownership remain with the lessor, are charged to the profit and loss account as incurred.

1.18
Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

 

RDM (UK) LIMITED
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.

Consignment stock treatment

The Directors have assessed the consignment stock agreements in place with suppliers against FRS102 section 4 and section 13.

 

Considering the facts of the agreements, primarily the risks and rewards of the agreement, the stock has been recognised as an asset on the balance sheet. A creditor balance has also been recognised in line with guidance on the application of consignment stock.

Investment in subsidiary

The investment is in a dormant subsidiary. The cost less impairment value of the subsidiary relates to the value of goodwill held within said subsidiary. The cost is being impaired over 10 years representing an equivalent amortisation in the subsidiary holding the rights to the relating goodwill.

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 Provisions

This is assessed by the Directors. At the year end an appropriate adjustment is made to stock against the level of slow moving or obsolete stock items that, in their opinion, exist at the balance sheet date.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Bike sales
1,734,394
1,408,265
Clothing sales
21,941,847
20,312,671
Parts and services
449,434
381,851
24,125,675
22,102,787
RDM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 17 -
2023
2022
£
£
Other revenue
Grants received
-
2,842
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(2,842)
Fees payable to the company's auditor for the audit of the company's financial statements
15,900
29,965
Depreciation of owned tangible fixed assets
130,529
99,312
(Profit)/loss on disposal of tangible fixed assets
(7,586)
4,052
Amortisation of intangible assets
80,466
64,448
Operating lease charges
991,987
960,708
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
161,098
153,925
Company pension contributions to defined contribution schemes
17,163
319,558
178,261
473,483

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022 - 5).

6
Employees

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

2023
2022
Number
Number
Management
5
5
Service
120
113
Total
125
118
RDM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,175,091
2,923,328
Social security costs
261,243
262,568
Pension costs
73,873
367,733
3,510,207
3,553,629
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
52,655
54,820
8
Amounts written off investments
2023
2022
£
£
Other gains and losses
(31,933)
(31,933)
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
137,773
136,148
Deferred tax
Origination and reversal of timing differences
8,876
27,403
Total tax charge
146,649
163,551
RDM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 19 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
540,527
853,030
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
127,132
162,076
Tax effect of expenses that are not deductible in determining taxable profit
10,287
751
Change in unrecognised deferred tax assets
7,639
6,067
Permanent capital allowances in excess of depreciation
1,517
(11,920)
Deferred tax adjustments in respect of prior years
74
6,577
Taxation charge for the year
146,649
163,551
10
Dividends
2023
2022
£
£
Final paid
167,850
163,552
11
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Fixed asset investments
14
31,933
31,933
Recognised in:
Amounts written off investments
31,933
31,933

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

RDM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
12
Intangible fixed assets
Software
Website
Total
£
£
£
Cost
At 1 January 2023
388,282
102,082
490,364
Additions
114,867
-
0
114,867
At 31 December 2023
503,149
102,082
605,231
Amortisation and impairment
At 1 January 2023
152,758
84,654
237,412
Amortisation charged for the year
76,109
4,357
80,466
At 31 December 2023
228,867
89,011
317,878
Carrying amount
At 31 December 2023
274,282
13,071
287,353
At 31 December 2022
235,524
17,428
252,952
13
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
26,313
847,126
248,820
84,479
1,206,738
Additions
-
0
-
0
104,732
94,450
199,182
Disposals
-
0
-
0
-
0
(23,354)
(23,354)
At 31 December 2023
26,313
847,126
353,552
155,575
1,382,566
Depreciation and impairment
At 1 January 2023
26,313
696,591
74,184
17,515
814,603
Depreciation charged in the year
-
0
37,635
56,961
35,933
130,529
Eliminated in respect of disposals
-
0
-
0
-
0
(18,489)
(18,489)
At 31 December 2023
26,313
734,226
131,145
34,959
926,643
Carrying amount
At 31 December 2023
-
0
112,900
222,407
120,616
455,923
At 31 December 2022
-
0
150,535
174,636
66,964
392,135
RDM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 21 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Motor vehicles
120,616
66,965
14
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
15
63,865
95,797
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 & 31 December 2023
287,393
Impairment
At 1 January 2023
191,596
Impairment losses
31,932
At 31 December 2023
223,528
Carrying amount
At 31 December 2023
63,865
At 31 December 2022
95,797
15
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Southampton Property Limited
153 Lynchford Road, Farnborough, Hampshire
Ordinary
100.00
16
Stocks
2023
2022
£
£
Finished goods and goods for resale
9,857,921
8,396,618
RDM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
17
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
45,236
245,455
Other debtors
33,654
38,758
Prepayments and accrued income
293,816
253,854
372,706
538,067
18
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
20
162,500
647,987
Obligations under finance leases
21
25,878
19,224
Other borrowings
20
418,129
76,226
Trade creditors
8,572,127
7,859,443
Corporation tax
137,773
136,148
Other taxation and social security
132,832
57,800
Other creditors
12,465
10,595
Accruals and deferred income
20,110
19,100
9,481,814
8,826,523
19
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
20
243,750
386,034
Obligations under finance leases
21
69,267
45,741
Other borrowings
20
-
0
130,565
Other creditors
1,251,875
938,314
1,564,892
1,500,654

Long term creditors include £1,251,875 (2022: £938,314) which relate to a rolling consignment stock balance with one supplier which has been agreed as due greater than one year by nature of it's continuously rolling basis.

RDM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
20
Loans and overdrafts
2023
2022
£
£
Bank loans
406,250
568,750
Bank overdrafts
-
0
465,271
Other loans
418,129
206,791
824,379
1,240,812
Payable within one year
580,629
724,213
Payable after one year
243,750
516,599

Loans existing at 31 December 2023:

 

On the 1 June 2020, the company was loaned £650,000 by HSBC under the CBILS. Interest is charged on the capital value at 3.99% over the BOE interest rate payable monthly commencing 1 July 2021. Capital repayments of £13,542 per month are payable beginning 1 July 2022. The use of this loan is restricted to general working capital requirements.

 

On the 19 February 2021 the company was loaned £250,000 by 'Funding Circle' under the CBILS. Interest is charged on the capital value at 10.1% commencing 1 April 2022. Capital and interest repayments of £6,353 per month are payable beginning 1 April 2022.

 

On the 21 November 2023 the company was advanced £500,000 by Wayflyer incurring a transaction fee of £30,000. The advance and transaction fee are payable in weekly £21,696 instalments until the advance plus transaction fee value is repaid.

21
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
25,878
19,168
In two to five years
69,267
45,797
95,145
64,965

Finance lease payments represent rentals payable by the company for certain items of motor vehicles. 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 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

RDM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
22
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
147,837
138,961
2023
Movements in the year:
£
Liability at 1 January 2023
138,961
Charge to profit or loss
8,876
Liability at 31 December 2023
147,837

The deferred tax liability set out above is expected to reverse over the life of the assets to which it relates and relates to accelerated capital allowances that are expected to mature within the same period.

23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
73,873
367,733

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.

24
Share-based payment transactions
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 January 2023
-
0
-
0
-
0
-
0
Granted
995
-
0
148.00
-
0
Outstanding at 31 December 2023
995
-
0
148.00
-
0
Exercisable at 31 December 2023
-
0
-
0
-
0
-
0

The weighted average share price at the date of exercise for share options exercised during the year was £0 (2022 - £0).

RDM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Share-based payment transactions
(Continued)
- 25 -

The options outstanding at 31 December 2023 had an exercise price of £148, and a remaining contractual life of ten years.

25
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
-
80
-
80
B Ordinary shares of of £1 each
-
11
-
11
Ordniary shares of 1p each
8,474
-
85
-
8,474
91
85
91

Ordinary shares rank equally with one vote each and equal rights except in relation to capital, dividends and distributions.

On 12 October 2023, all issued ordinary shares and issued B ordinary shares were subdivided from denominations of £1.00 each to 100 £0.01, holding all other rights the same as prior to the subdivision.

Additionally, all issued B ordinary shares were re-designated as ordinary shares.

26
Capital redemption reserve

On 12 October 2023, 626 ordinary shares were purchased by the company at par.

27
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
633,859
553,537
Between two and five years
1,564,507
1,103,023
In over five years
532,740
129,640
2,731,106
1,786,200
28
Related party transactions
Transactions with related parties

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

Rental expense paid to shareholders of £91,681 (2022: £43,885).

Amounts owed to shareholders £6,250 (2022: £nil).

 

RDM (UK) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
29
Ultimate controlling party

There is no ultimate controlling party of RDM (UK) Limited.

30
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
393,878
689,479
Adjustments for:
Taxation charged
146,649
163,551
Finance costs
52,655
54,820
(Gain)/loss on disposal of tangible fixed assets
(7,586)
4,052
Amortisation and impairment of intangible assets
80,466
64,448
Depreciation and impairment of tangible fixed assets
130,529
99,312
Other gains and losses
31,933
31,933
Movements in working capital:
Increase in stocks
(1,461,303)
(1,875,272)
Decrease/(increase) in debtors
165,361
(196,173)
Increase in creditors
1,104,157
1,513,624
Cash generated from operations
636,739
549,774
31
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,994,983
(407,766)
1,587,217
Bank overdrafts
(465,271)
465,271
-
0
1,529,712
57,505
1,587,217
Borrowings excluding overdrafts
(775,541)
(48,838)
(824,379)
Obligations under finance leases
(64,965)
(30,180)
(95,145)
689,206
(21,513)
667,693
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