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Registered number: 04340276









RANDOM FACTOR LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
RANDOM FACTOR LIMITED
 

COMPANY INFORMATION


DIRECTORS
T C Clifton 
J L Roberts 




COMPANY SECRETARY
T C Clifton



REGISTERED NUMBER
04340276



REGISTERED OFFICE
2 Chester Road
Colmworth Business Park

Eaton Socon

St Neots

PE19 8YT




INDEPENDENT AUDITORS
Price Bailey LLP
Chartered Accountants & Statutory Auditors

Tennyson House

Cambridge Business Park

Cambridge

CB4 0WZ




SOLICITORS
Hunt & Combs
35 Thorpe Road

Peterborough

PE3 6AG





 
RANDOM FACTOR LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Consolidated Statement of Income and Retained Earnings
9
Consolidated Balance Sheet
10
Company Balance Sheet
11
Consolidated Statement of Changes in Equity
12
Company Statement of Changes in Equity
13
Consolidated Statement of Cash Flows
14
Consolidated Analysis of Net Debt
15
Notes to the Financial Statements
16 - 34


 
RANDOM FACTOR LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

INTRODUCTION
 
This is a balanced and comprehensive review of the performance of our business during the year and its position at the year end consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.

BUSINESS REVIEW
 
Financial overview
The Company achieved a profit before taxation for the year ended 31 December 2023 of £226,586 (2022: £590,435)
The Directors are satisfied with the performance of the business although 2023 has presented the label market with an array of new challenges the business has performed exceptionally, particularly in the light of losing our largest contract. The influence of external economic factors have impacted volume in certain market sectors throughout 2023 but we are delighted that we have offset this impact by securing new business and contracts. 
Turnover
Management consider the results for the year to be in line with overall performance of the market.
Operating costs
Operating costs have been controlled and remain consistent with the prior financial year.

PRINCIPAL RISKS AND UNCERTAINTIES
 
The management of the business and the nature of the Group's strategy are subject to a number of risks. Management have set out below the principal risks facing the business. Where possible processes are in place to monitor and mitigate such risks.
Economic downturn
The success of the business is reliant on consumer demand. An economic downturn, resulting in reduction of consumer demand, will have an impact on the income achieved by the group. In response to this risk, management aim to keep abreast of economic downturn, marketing and pricing strategies are modified to reflect the new market conditions.
Manufacturing of products
The group is reliant on its products being of a high quality and up to date with its customer's demand. This exposes the company to risks in a number of areas which is dependent on its manufacturing in respect of:
- quality of the labels
- pricing of the labels
- range of types of labels offered
Management are confident that the products produced will be of a continued high quality and will meet the market's demand.

Page 1

 
RANDOM FACTOR LIMITED
 

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

FINANCIAL KEY PERFORMANCE INDICATORS
 

The Group measures its financial performance in several areas as follows:
1. Growth in turnover is a key measure of the company's success in winning new business and retaining existing clients. Sales growth remains our key focus across the business, closely followed by tight cost management. The Tough economic situation in not just the UK but Europe and the rest of the world has meant a reduction of 20% in turnover compared to 2022. We have however with better productivity and material usage managed to increase the level of Gross Margin achieved from 32% to 34%. Towards the end of 2023 we saw inflation starting to fall and stability in the rate of interest. We are hopeful that 2024 will star to see a reduction in interest rates which should stimulate the economy.
2. Cash collection and stock leveraging forms part of our working capital management. At the year end average debtor days were 51.6 days (2022 – 46.1 days) compared to a target of 60.0 days. Stock turns of 9.8:1 (2022 - 9.2:1) compares less favorably with 2022. We have dedicated more time to reducing stock and this will continue throughout 2024.

OTHER KEY PERFORMANCE INDICATORS
 
The Group measures its non-financial performance in several areas as follows:
1. The securing of new business is a critical area if the business is to continue to grow. The value of contracts won during the year is therefore closely monitored. During the year the level of new business won exceeded our target and helped mitigate our losses.
2. The level of contract losses is also measured. Contract losses are categorised into two areas- those under our control and those outside our control. The level of contract losses under our control was in line with anticipated levels, whilst contract losses outside of our control (receiverships and closures) was broadly as expected.
3. Productivity and efficiency is monitored and assessed using different metrics compared to previous years performance, across a wide range of indicators our performance has improved facilitated by product mix improvements and continued targeted capital expenditure. 


This report was approved by the board on 28 August 2024 and signed on its behalf.





................................................
J L Roberts
Director

Page 2

 
RANDOM FACTOR LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

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

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £136,743 (2022 - £487,122).

The Directors recommend the payment of a dividend this year of £45,000 (2022 - £55,000).

DIRECTORS

The directors who served during the year were:

T C Clifton 
J L Roberts 

FUTURE DEVELOPMENTS

The Directors anticipate no significant changes in the Group's activities for the foreseeable future. 

DISCLOSURE OF INFORMATION TO AUDITORS

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

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

Page 3

 
RANDOM FACTOR LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

POST BALANCE SHEET EVENTS

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

AUDITORS

Under section 487(2) of the Companies Act 2006Price Bailey LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

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





................................................
J L Roberts
Director

Date: 28 August 2024

Page 4

 
RANDOM FACTOR LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF RANDOM FACTOR LIMITED
 

OPINION


We have audited the financial statements of Random Factor Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Income and Retained Earnings, the Consolidated and Company Balance Sheets, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


BASIS FOR OPINION


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


CONCLUSIONS RELATING TO GOING CONCERN


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


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


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


Page 5

 
RANDOM FACTOR LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF RANDOM FACTOR LIMITED (CONTINUED)


OTHER INFORMATION


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


We have nothing to report in this regard.


OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
 

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


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


RESPONSIBILITIES OF DIRECTORS
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
RANDOM FACTOR LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF RANDOM FACTOR LIMITED (CONTINUED)


AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
 

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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations. This included those regulations directly related to the financial statements, including financial reporting, tax legislation and distributable profits and industry regulations including GDPR, employment law and health and safety. 
We communicated the identified laws and regulations with the audit team and remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. 
These included the following:
-  agreeing the financial statement disclosures to underlying supporting documentation to assess     compliance with provisions of relevant laws and regulations described as having a direct effect on the    financial statements;
-  enquiries of management including those responsible for key regulations;
-  performing analytical procedures to identify any unusual or unexpected relationships that may indicate    risks of material misstatement due to fraud;
In addressing the risk of management override of controls, we carried out testing of journal entries and other adjustments for appropriateness, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of significant transactions outside the normal course of business. 
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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


Page 7

 
RANDOM FACTOR LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF RANDOM FACTOR LIMITED (CONTINUED)


USE OF OUR REPORT
 

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





Paul Cullen FCCA (Senior Statutory Auditor)
for and on behalf of
Price Bailey LLP
Chartered Accountants
Statutory Auditors
Tennyson House
Cambridge Business Park
Cambridge
CB4 0WZ

 
Date: 
9 September 2024
Page 8

 
RANDOM FACTOR LIMITED
 

CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
9,512,340
11,871,279

Cost of sales
  
(6,527,196)
(8,386,495)

GROSS PROFIT
  
2,985,144
3,484,784

Distribution costs
  
(115,794)
(89,045)

Administrative expenses
  
(2,569,167)
(2,761,518)

OPERATING PROFIT
 5 
300,183
634,221

Interest receivable and similar income
 9 
3,476
420

Interest payable and expenses
 10 
(77,073)
(44,206)

PROFIT BEFORE TAX
  
226,586
590,435

Tax on profit
 11 
(89,843)
(103,313)

PROFIT AFTER TAX
  
136,743
487,122

  

  

Retained earnings at the beginning of the year
  
3,202,771
2,770,649

Profit for the year attributable to the owners of the parent
  
136,743
487,122

Dividends declared and paid
 12 
(45,000)
(55,000)

RETAINED EARNINGS AT THE END OF THE YEAR
  
3,294,514
3,202,771


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


The notes on pages 16 to 34 form part of these financial statements.

Page 9

 
RANDOM FACTOR LIMITED
REGISTERED NUMBER: 04340276

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

FIXED ASSETS
  

Tangible assets
 14 
3,470,286
3,506,708

  
3,470,286
3,506,708

CURRENT ASSETS
  

Stocks
 16 
517,979
969,964

Debtors
 17 
2,090,317
1,785,244

Cash at bank and in hand
 18 
483,226
511,636

  
3,091,522
3,266,844

Creditors: amounts falling due within one year
 19 
(1,863,524)
(2,091,688)

NET CURRENT ASSETS
  
 
 
1,227,998
 
 
1,175,156

TOTAL ASSETS LESS CURRENT LIABILITIES
  
4,698,284
4,681,864

Creditors: amounts falling due after more than one year
 20 
(929,048)
(1,036,889)

PROVISIONS FOR LIABILITIES
  

Deferred taxation
 24 
(263,722)
(231,204)

Other provisions
 25 
(125,000)
(125,000)

NET ASSETS
  
3,380,514
3,288,771


CAPITAL AND RESERVES
  

Called up share capital 
 26 
60,250
60,250

Capital redemption reserve
 27 
39,750
39,750

Other reserves
 27 
(14,000)
(14,000)

Profit and loss account
 27 
3,294,514
3,202,771

EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY
  
3,380,514
3,288,771


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



................................................
J L Roberts
Director

Date: 28 August 2024


The notes on pages 16 to 34 form part of these financial statements.

Page 10

 
RANDOM FACTOR LIMITED
REGISTERED NUMBER: 04340276

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

FIXED ASSETS
  

Tangible assets
 14 
2,166,071
2,201,203

Fixed asset investments
 15 
2,800,992
2,800,992

  
4,967,063
5,002,195

Cash at bank and in hand
 18 
2,056
1,589

Creditors: amounts falling due within one year
 19 
(1,698,044)
(1,644,420)

NET CURRENT LIABILITIES
  
 
 
(1,695,988)
 
 
(1,642,831)

Creditors: amounts falling due after more than one year
 20 
(825,715)
(971,736)

NET ASSETS
  
2,445,360
2,387,628


CAPITAL AND RESERVES
  

Called up share capital 
 26 
60,250
60,250

Capital redemption reserve
 27 
39,750
39,750

Other reserves
 27 
(14,000)
(14,000)

Profit and loss account
 27 
2,359,360
2,301,628

  
2,445,360
2,387,628


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


................................................
J L Roberts
Director

Date: 28 August 2024


The notes on pages 16 to 34 form part of these financial statements.

Page 11

 

 
RANDOM FACTOR LIMITED


 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



Called up share capital
Capital redemption reserve
Other reserves - own shares
Profit and loss account
Equity attributable to owners of parent Company
Total equity


£
£
£
£
£
£



At 1 January 2022
60,250
39,750
(14,000)
2,770,649
2,856,649
2,856,649



Comprehensive income for the year


Profit for the year
-
-
-
487,122
487,122
487,122



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
(55,000)
(55,000)
(55,000)





At 1 January 2023
60,250
39,750
(14,000)
3,202,771
3,288,771
3,288,771



Comprehensive income for the year


Profit for the year
-
-
-
136,743
136,743
136,743



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
(45,000)
(45,000)
(45,000)



At 31 December 2021
60,250
39,750
(14,000)
3,294,514
3,380,514
3,380,514



The notes on pages 16 to 34 form part of these financial statements.

Page 12

 

 
RANDOM FACTOR LIMITED


 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



Called up share capital
Capital redemption reserve
Other reserves - own shares
Profit and loss account
Total equity


£
£
£
£
£



At 1 January 2022
60,250
39,750
(14,000)
2,213,929
2,299,929



Comprehensive income for the year


Profit for the year
-
-
-
142,699
142,699



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
(55,000)
(55,000)





At 1 January 2023
60,250
39,750
(14,000)
2,301,628
2,387,628



Comprehensive income for the year


Profit for the year
-
-
-
102,732
102,732



Contributions by and distributions to owners


Dividends: Equity capital
-
-
-
(45,000)
(45,000)



At 31 December 2023
60,250
39,750
(14,000)
2,359,360
2,445,360



The notes on pages 16 to 34 form part of these financial statements.

Page 13

 
RANDOM FACTOR LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

CASH FLOWS FROM OPERATING ACTIVITIES

Profit for the financial year
136,743
487,122

ADJUSTMENTS FOR:

Amortisation of intangible assets
-
6,472

Depreciation of tangible assets
306,383
311,693

Loss on disposal of tangible assets
275
(1,815)

Interest paid
77,073
44,206

Interest received
(3,476)
(420)

Taxation charge
89,843
103,313

Decrease/(increase) in stocks
451,985
(64,388)

(Increase) in debtors
(305,073)
(33,972)

(Decrease) in creditors
(219,167)
(271,301)

Corporation tax (paid)
(104,959)
(126,692)

NET CASH GENERATED FROM OPERATING ACTIVITIES

429,627
454,218

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of tangible fixed assets
(270,236)
(264,125)

Sale of tangible fixed assets
-
17,500

Interest received
3,476
420

HP interest paid
(5,871)
(3,000)

NET CASH FROM INVESTING ACTIVITIES

(272,631)
(249,205)

CASH FLOWS FROM FINANCING ACTIVITIES

New secured loans
155,000
-

Repayment of loans
(146,022)
(156,020)

New finance leases
-
157,523

Repayment of finance leases
(78,182)
(117,776)

Dividends paid
(45,000)
(55,000)

Interest paid
(71,202)
(41,206)

NET CASH USED IN FINANCING ACTIVITIES
(185,406)
(212,479)

(DECREASE) IN CASH AND CASH EQUIVALENTS
(28,410)
(7,466)

Cash and cash equivalents at beginning of year
511,636
519,102

CASH AND CASH EQUIVALENTS AT THE END OF YEAR
483,226
511,636


CASH AND CASH EQUIVALENTS AT THE END OF YEAR COMPRISE:

Cash at bank and in hand
483,226
511,636


The notes on pages 16 to 34 form part of these financial statements.

Page 14

 
RANDOM FACTOR LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

511,636

(28,410)

483,226

Debt due after 1 year

(971,736)

42,688

(929,048)

Debt due within 1 year

(170,303)

(51,665)

(221,968)

Finance leases

(143,335)

78,183

(65,152)


(773,738)
40,796
(732,942)

The notes on pages 16 to 34 form part of these financial statements.

Page 15

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


GENERAL INFORMATION

Random Factor Limited is a private company limited by shares incorporated in England and Wales, United Kingdom. The registered office is 2 Chester Road, Colmworth Business Park, St Neots, PE19 8YT.
The principal activity of the Company continued to be that of a holding company. It's sole subsidiary company is a label producer and supplier.

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

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

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Income and Retained Earnings in these financial statements.

The Company's level of rounding is to the nearest Pound.

The following principal accounting policies have been applied:

 
2.2

BASIS OF CONSOLIDATION

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

GOING CONCERN

The directors have prepared projected budgets and on the basis of these budgets, the directors have considered the company to continue to operate as a going concern. The directors are confident that the company will have sufficient funds to meet its liabilities as they fall due for a period of not less than 12 months from the date of approval of these financial statements.
The directors continue to monitor cashflow closely and exercise tight credit control and, based on their forecasts and built up reserves, consider it appropriate to continue to prepare the financial statements on a going concern basis.

 
2.4

TURNOVER

Turnover comprises revenue recognised by the company in respect of goods supplied during the year, exclusive of Value Added Tax and trade discounts. Turnover is recognised on despatch of goods.

Page 16

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.5

INTANGIBLE ASSETS

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of Comprehensive Income and Retained Earnings over its useful economic life of 20 years.

 
2.6

TANGIBLE FIXED ASSETS

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

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives. 

Depreciation is provided on the following basis:

Freehold property
-
      2% straight line
Plant and machinery
-
      5-20% straight line
Fixtures and fittings
-
      5-10% straight line
Computer equipment
-
     18-32% straight line

 
2.7

OPERATING LEASES: THE GROUP AS LESSEE

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.8

VALUATION OF INVESTMENTS

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.9

STOCKS

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.10

DEBTORS

Short term debtors are measured at transaction price, less any impairment.

Page 17

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.11

CASH AND CASH EQUIVALENTS

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

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

 
2.12

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income and Retained Earnings.

 
2.13

CREDITORS

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

 
2.14

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

 
2.15

FINANCE COSTS

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

 
2.16

DIVIDENDS

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

Page 18

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.17

LEASED ASSETS: THE GROUP AS LESSEE

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.18

PENSIONS

Defined contribution pension plan

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

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

 
2.19

HOLIDAY PAY ACCRUAL

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.20

INTEREST INCOME

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

 
2.21

BORROWING COSTS

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.22

PROVISIONS FOR LIABILITIES

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 19

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.23

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


3.



JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group's accounting policies, the directors are required to make significant judgements, estimates and assumptions. The estimates and associated assumptions are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates.
Estimates and judgements are continually evaluated. 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 revision and future periods where the revision affects both current and future periods.
Details of the Company's significant accounting judgements and critical estimates include:
Impairment of stock and work in progress
Management have assessed the need to write off or provide against any specific items based on the levels held at period end and the expected sales of such items in the immediate period post year end. Management take into account historic sales data at the date the estimate is made.
Impairment of trade debtors
The recoverability of trade debtors has been assessed at the year end and up until the date of signing
these financial statements. Management have based the decision to provide for any amounts based on
their judgement of all the available information and their experience of the specific nature of the trade
debtor in question.

Page 20

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


TURNOVER

The whole of the turnover is attributable to the one principal activity of the Group.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
9,046,535
11,391,106

Rest of Europe
465,805
480,173

9,512,340
11,871,279



5.


OPERATING PROFIT

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
306,383
311,693

Amortisation of intangible assets, including goodwill
-
6,472

Fees payable to the Group's auditor and its associates for the audit of the Company's annual financial statements
17,250
16,250

Exchange differences
(16,363)
(12,080)

Operating lease rentals
57,948
49,410

Profit on disposal of tangible fixed assets
275
(1,816)

Defined contribution pension cost
119,146
124,950


6.


AUDITORS' REMUNERATION

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
4,000
4,000

Page 21

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


EMPLOYEES

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


Group
Group
2023
2022
£
£


Wages and salaries
1,448,507
1,573,649

Social security costs
148,160
169,623

Cost of defined contribution scheme
119,146
124,950

1,715,813
1,868,222


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

Group
2023
Group
2022
No.
No.
Production and development

42

47

Office management

4

4

46

51


The Company has no employees other than the Directors, who did not receive any remuneration (2022 - £NIL).


8.


DIRECTORS' REMUNERATION




During the year retirement benefits were accruing to 2 Directors (2022 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £107,225 (2022 - £107,385).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £7,541 (2022 - £11,622).


9.


INTEREST RECEIVABLE

2023
2022
£
£


Other interest receivable
3,476
420

Page 22

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Bank interest payable
682
1,055

Mortgage interest payable
70,319
40,151

Finance leases and hire purchase contracts
5,871
3,000

Other interest payable
201
-

77,073
44,206

Page 23

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


TAXATION


2023
2022
£
£

CORPORATION TAX


Current tax on profits for the year
57,325
104,959


DEFERRED TAX


Origination and reversal of timing differences
32,518
(1,646)


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
89,843
103,313

FACTORS AFFECTING TAX CHARGE FOR THE YEAR

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

2023
2022
£
£


Profit on ordinary activities before tax
226,586
590,435


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
56,647
112,183

EFFECTS OF:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
(3,301)
1,428

Capital allowances for year in excess of depreciation
2,681
(11,461)

Relief on profit on disposal of fixed assets
69
2,980

Changes in provisions leading to an increase (decrease) in the tax charge
1,229
(171)

Deferred tax
32,518
(1,646)

TOTAL TAX CHARGE FOR THE YEAR
89,843
103,313


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.


12.


DIVIDENDS

2023
2022
£
£


Declared in the year
45,000
55,000

Page 24

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


INTANGIBLE ASSETS

Group and Company





Goodwill

£



Cost


At 1 January 2023
1,553,411



At 31 December 2023

1,553,411



Amortisation


At 1 January 2023
1,553,411



At 31 December 2023

1,553,411



Net book value



At 31 December 2023
-



At 31 December 2022
-



Page 25

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


TANGIBLE FIXED ASSETS

Group






Freehold property
Plant and machinery
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2023
2,306,599
3,440,949
488,547
6,236,095


Additions
-
40,133
230,103
270,236


Disposals
-
-
(13,936)
(13,936)



At 31 December 2023

2,306,599
3,481,082
704,714
6,492,395



Depreciation


At 1 January 2023
105,396
2,302,239
321,751
2,729,386


Charge for the year on owned assets
35,132
181,434
48,020
264,586


Charge for the year on financed assets
-
22,193
19,604
41,797


Disposals
-
-
(13,660)
(13,660)



At 31 December 2023

140,528
2,505,866
375,715
3,022,109



Net book value



At 31 December 2023
2,166,071
975,216
328,999
3,470,286



At 31 December 2022
2,201,203
1,138,710
166,796
3,506,709




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold
2,166,071
2,201,203

2,166,071
2,201,203


Included in freehold property is land of £550,000 which will not be depreciated.

Page 26

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           14.TANGIBLE FIXED ASSETS (CONTINUED)


Company






Freehold property

£

Cost


At 1 January 2023
2,306,599



At 31 December 2023

2,306,599



Depreciation


At 1 January 2023
105,396


Charge for the year on owned assets
35,132



At 31 December 2023

140,528



Net book value



At 31 December 2023
2,166,071



At 31 December 2022
2,201,203





The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold
2,166,071
2,201,203


Included in freehold property is land of £550,000 which will not be depreciated.

The carrying amount of investment property, which the Company rents to another group entity when it has chosen to account for such properties using the cost model is £2,166,071 (2022 - £2,201,203)

Page 27

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


FIXED ASSET INVESTMENTS

Company





Investments in subsidiary companies

£



COST


At 1 January 2023
2,800,992



At 31 December 2023

2,800,992





SUBSIDIARY UNDERTAKING


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Lattice Labels Ltd
2 Chester Road, PE19 8YT
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

Lattice Labels Ltd
3,736,146
79,715


16.


STOCKS

Group
Group
2023
2022
£
£

Raw materials and consumables
406,241
754,194

Work in progress (goods to be sold)
3,469
-

Finished goods and goods for resale
108,269
215,770

517,979
969,964


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 28

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


DEBTORS

Group
Group
2023
2022
£
£



Trade debtors
2,008,397
1,746,843

Prepayments and accrued income
81,920
38,401

2,090,317
1,785,244



18.


CASH AND CASH EQUIVALENTS

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
483,226
511,636
2,056
1,589



19.


CREDITORS: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
221,968
170,303
170,302
170,302

Trade creditors
1,050,203
1,373,135
-
-

Amounts owed to group undertakings
-
-
1,499,319
1,445,282

Corporation tax
57,325
104,959
28,423
28,836

Other taxation and social security
199,823
125,808
-
-

Obligations under finance lease and hire purchase contracts
65,153
78,182
-
-

Other creditors
82,704
86,534
-
-

Accruals and deferred income
186,348
152,767
-
-

1,863,524
2,091,688
1,698,044
1,644,420


The aggregate amount of creditors in the Company’s and Group’s balance sheet as at the year end in respect of which security has been given by the company is £1,151,016 (2022 - £1,142,039). 
The aggregate amount of creditors in the Group's balance sheet as at the year end in respect of which security has been given by the Group on hire purchase is £65,153 (2022 - £78,182). Hire purchase contracts outstanding were secured against the assets to which they related.

Page 29

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


CREDITORS: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
929,048
971,736
825,715
971,736

Net obligations under finance leases and hire purchase contracts
-
65,153
-
-

929,048
1,036,889
825,715
971,736


The aggregate amount of creditors in the Group's balance sheet as at the year end in respect of which security has been given by the Group on hire purchase is £Nil (2022 - £65,153). Hire purchase contracts outstanding were secured against the assets to which they related.
The Group’s bank holds security over the bank borrowings, held within the parent company, which were outstanding at the year end in relation to the total net book value of the Company’s and Group’s assets at the year end via debenture and via a cross guarantee over the property at 2 Chester Road, Colmworth Business Park, Eaton Socon, St Neots.


21.


LOANS


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans
221,968
170,303
170,302
170,303

AMOUNTS FALLING DUE 1-2 YEARS

Bank loans
929,048
971,736
825,715
971,736

AMOUNTS FALLING DUE 2-5 YEARS


1,151,016
1,142,039
996,017
1,142,039



22.


HIRE PURCHASE AND FINANCE LEASES


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
65,153
78,182

Between 1-5 years
-
65,153

65,153
143,335

Page 30

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


FINANCIAL INSTRUMENTS

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
483,226
511,636
-
-

Financial assets that are debt instruments measured at amortised cost
2,008,397
1,746,843
-
-

2,491,623
2,258,479
-
-


Financial liabilities

Financial liabilities measured at amortised cost
(2,535,424)
(2,897,810)
(2,495,336)
(2,587,320)


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by group undertakings and other debtors.


Financial liabilities measured at amortised cost comprise bank loans, trade creditors, amounts owed to group undertakings, obligations under finance lease and hire purchase contracts, other creditors and accruals.

Page 31

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


DEFERRED TAXATION


Group



2023


£






At beginning of year
(231,204)


Charged to profit or loss
(32,518)



At end of year
(263,722)

Company


2023






At end of year
-
The provision for deferred taxation is made up as follows:

Group
Group
2023
2022
£
£

Accelerated capital allowances
(264,778)
(231,204)

Otehr short term timing differences
1,056
-

(263,722)
(231,204)


25.


PROVISIONS


Group



Dilapidations Provision

£





At 1 January 2023
125,000



At 31 December 2023
125,000

A dilapidations provision has been included in the financial statements in respect of remedial work required to reinstate the buildings when vacated. 

Page 32

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

26.


SHARE CAPITAL

2023
2022
£
£
Allotted, called up and fully paid



60,250 (2022 - 60,250) Ordinary shares of £1.00 each
60,250
60,250



27.


RESERVES

Capital redemption reserve

A non-distributable reserve into which amounts are transferred following the redemption or purchase of a company's own shares.

Other reserves

Other reserves relate to Treasury shares.

Profit and loss account

Includes all current and prior period retained profits / losses less any dividends paid.


28.


PENSION COMMITMENTS

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £119,146 (2022 - £124,950). Contributions totalling £Nil (2022 - £Nil) were payable to the fund at the balance sheet date.


29.


COMMITMENTS UNDER OPERATING LEASES

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£


Not later than 1 year
39,463
49,728

Later than 1 year and not later than 5 years
7,607
28,602

47,070
78,330


Page 33

 
RANDOM FACTOR LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

30.


RELATED PARTY TRANSACTIONS

The Group has taken advantage of the exemption from the requirement to disclose transactions with wholly owned group companies.
Only the Directors are considered to be key management and personnel. Total remuneration in respect of these individuals is disclosed in note 8.


31.


CONTROLLING PARTY

The ultimate controlling related parties of the company are the Board of Directors of 
Random Factor Limited by virtue of their directorships and shareholding of this Company.


Page 34