Company registration number 04816267 (England and Wales)
ROYCE PEELING GREEN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ROYCE PEELING GREEN LIMITED
COMPANY INFORMATION
Directors
J.S. Brownson
C.M. Poston
P.R. Owen
M.A. Chatten
D Prais
J.J. Redmond
C Dutton
I Wynn
J Hayward
B.H. Brownson
(Appointed 5 April 2024)
Secretary
J.J. Redmond
Company number
04816267
Registered office
The Copper Room
Deva City Office Park
Trinity Way
Manchester
M3 7BG
Auditor
Chadwick and Company (Manchester) Limited
272 Manchester Road
Droylsden
Manchester
M43 6PW
Bankers
Barclays Bank plc
1st Floor
3 Hardman Street
Spinningfields
Manchester
M3 3HF
ROYCE PEELING GREEN LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 22
ROYCE PEELING GREEN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The directors are pleased with the results for the year and the state of the company's affairs at the balance sheet date.
The board are confident that both turnover and profitability will be improved in the current year.
Principal risks and uncertainties
Risks affecting the company have been identified as falling into four categories:
• Financial: direct responsibility falls to the Chief Financial Officer
• Operational: direct responsibility falls to the Chief Operating Officer
• Professional: falls under the leadership of the Chief Executive
• Strategic: considered by the Board of the holding company.
Financial and operational risks
The company has policies and procedures in place covering financial and non-financial operational activities. These include strict controls and procedures covering key processes, such as the expenditure that can be incurred by directors and staff on behalf of the company. The company has expenditure limits which are regularly reviewed by the Board and, depending on the type of expenditure, prior approval must be sought before expenditure can be incurred. The management of financial and operational risks falls to the Chief Financial Officer and Chief Operating Officer respectively. The Board of the holding company is tasked with reviewing the management of these risks and reporting thereon to the Board.
Professional risk
The Chief Executive provides risk management and quality leadership, monitoring adherence to policies, procedures and professional standards and is supported by representatives from each of the company’s client service functions. Quality assurance and independence are central to the services the company provides to its clients. Quality control policies and procedures in key areas have been established and are maintained by the company to ensure that it complies with relevant professional standards and regulatory requirements. The company's policies and procedures comply with the International Standard on Quality Management (ISQM) 1 issued by the International Auditing and Assurance Standards Board.
J.J. Redmond
Director
9 September 2024
ROYCE PEELING GREEN 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 company's principal activity continued to be the provision of accountancy and other professional services.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £425,000. 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:
J.S. Brownson
C.M. Poston
P.R. Owen
M.A. Chatten
D Prais
J.J. Redmond
C Dutton
I Wynn
J Hayward
B.H. Brownson
(Appointed 5 April 2024)
Auditor
In accordance with the company's articles, a resolution proposing that Chadwick and Company (Manchester) Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
J.J. Redmond
Director
9 September 2024
ROYCE PEELING GREEN LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
ROYCE PEELING GREEN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROYCE PEELING GREEN LIMITED
- 4 -
Opinion
We have audited the financial statements of Royce Peeling Green Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ROYCE PEELING GREEN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROYCE PEELING GREEN 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
At the planning stage of the audit we gain an understanding of the laws and regulations which apply to the company and how management seek to comply with them. This helps us to make appropriate risk assessments.
During the audit we focus on relevant risk areas and review compliance with laws and regulations through making relevant enquiries and corroboration by, for example, reviewing Board Minutes and other documentation.
We assess the risk of material misstatement in the financial statements including as a result of fraud and undertake procedures including:
Review of controls set in place by management
Enquiry of management as to whether they consider fraud or other irregularities may have occurred or where such opportunity might exist
Challenge of management assumptions with regard to accounting estimates
Identification and testing of journal entries, particularly those which may appear to be unusual by size or nature.
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 are 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 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.
ROYCE PEELING GREEN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROYCE PEELING GREEN LIMITED
- 6 -
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.
Michael Royle BA (Hons) FCA (Senior Statutory Auditor)
For and on behalf of Chadwick and Company (Manchester) Limited
Chartered Accountants
Statutory Auditor
272 Manchester Road
Droylsden
Manchester
M43 6PW
9 September 2024
ROYCE PEELING GREEN LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
6,389,569
5,692,226
Cost of sales
(4,879)
(107,653)
Gross profit
6,384,690
5,584,573
Administrative expenses
(5,609,453)
(4,824,843)
Other operating income
36,910
Operating profit
4
775,237
796,640
Interest receivable and similar income
8
1,060
Interest payable and similar expenses
9
(113,025)
(66,153)
Profit before taxation
662,212
731,547
Tax on profit
10
(216,074)
(199,469)
Profit for the financial year
446,138
532,078
Retained earnings brought forward
2,606,831
2,574,753
Dividends
11
(425,000)
(500,000)
Retained earnings carried forward
2,627,969
2,606,831
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ROYCE PEELING GREEN LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
994,048
1,293,786
Tangible assets
13
34,645
39,542
1,028,693
1,333,328
Current assets
Debtors
14
4,020,895
3,470,235
Cash at bank and in hand
797,568
988,832
4,818,463
4,459,067
Creditors: amounts falling due within one year
15
(2,949,186)
(2,306,665)
Net current assets
1,869,277
2,152,402
Total assets less current liabilities
2,897,970
3,485,730
Creditors: amounts falling due after more than one year
16
(270,000)
(878,898)
Net assets
2,627,970
2,606,832
Capital and reserves
Called up share capital
20
1
1
Profit and loss reserves
2,627,969
2,606,831
Total equity
2,627,970
2,606,832
The financial statements were approved by the board of directors and authorised for issue on 9 September 2024 and are signed on its behalf by:
J.S. Brownson
Director
Company registration number 04816267 (England and Wales)
ROYCE PEELING GREEN LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
604,707
1,023,958
Interest paid
(113,025)
(66,153)
Income taxes paid
(142,344)
(111,116)
Net cash inflow from operating activities
349,338
846,689
Investing activities
Purchase of tangible fixed assets
(20,967)
(13,367)
Proceeds from disposal of tangible fixed assets
891
Interest received
1,060
Net cash used in investing activities
(20,076)
(12,307)
Financing activities
Proceeds from borrowings
26,141
314,362
Repayment of bank loans
(120,000)
(90,000)
Payment of finance leases obligations
(1,667)
(10,762)
Dividends paid
(425,000)
(500,000)
Net cash used in financing activities
(520,526)
(286,400)
Net (decrease)/increase in cash and cash equivalents
(191,264)
547,982
Cash and cash equivalents at beginning of year
988,832
440,850
Cash and cash equivalents at end of year
797,568
988,832
ROYCE PEELING GREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information
Royce Peeling Green Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Copper Room, Deva City Office Park, Trinity Way, Manchester, M3 7BG.
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 immediate parent company is RPG Holdings Limited. The ultimate parent and the largest and smallest group financial statements that consolidate this company is RPG Group Limited.
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 services net of Value Added Tax.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Intangible fixed assets - goodwill
The cost of goodwill, less estimated current economic value, is written off in equal annual instalments over its estimated useful economic life.
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:
Leasehold property alterations
Over 10 years
Plant and machinery
10% - 20% straight line
Fixtures, fittings & equipment
10% straight line
Computer equipment
25% - 33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
ROYCE PEELING GREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.6
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
ROYCE PEELING GREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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.
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.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
ROYCE PEELING GREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
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.
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.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
ROYCE PEELING GREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
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.
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.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Accountancy and other professional services
6,389,569
5,692,226
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
6,389,569
5,692,226
ROYCE PEELING GREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 15 -
2023
2022
£
£
Other revenue
Interest income
-
1,060
Grants received
-
36,910
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(36,910)
Depreciation of owned tangible fixed assets
17,237
19,793
Depreciation of tangible fixed assets held under finance leases
8,600
10,692
Profit on disposal of tangible fixed assets
(864)
-
Amortisation of intangible assets
299,738
299,735
Operating lease charges
135,597
126,006
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,000
7,750
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Directors
9
9
Professional services
59
52
Administration
11
5
Total
79
66
ROYCE PEELING GREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,086,231
2,794,556
Social security costs
344,013
312,257
Pension costs
348,926
228,863
3,779,170
3,335,676
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
799,951
751,918
Company pension contributions to defined contribution schemes
281,120
151,368
1,081,071
903,286
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 8 (2022 - 8).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
101,491
114,345
Company pension contributions to defined contribution schemes
58,282
20,399
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,060
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,060
ROYCE PEELING GREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
9,770
12,372
Other interest on financial liabilities
93,724
51,755
103,494
64,127
Other finance costs:
Interest on finance leases and hire purchase contracts
285
2,026
Other interest
9,246
113,025
66,153
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
216,074
199,469
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
662,212
731,547
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
155,620
138,994
Tax effect of expenses that are not deductible in determining taxable profit
600
464
Permanent capital allowances in excess of depreciation
1,666
2,366
Amortisation on assets not qualifying for tax allowances
70,438
56,950
Tax relief on share options
(12,250)
Under/(over) provided in prior years
695
Taxation charge for the year
216,074
199,469
11
Dividends
2023
2022
£
£
Final paid
425,000
500,000
ROYCE PEELING GREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
12
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
3,424,650
Amortisation and impairment
At 1 January 2023
2,130,864
Amortisation charged for the year
299,738
At 31 December 2023
2,430,602
Carrying amount
At 31 December 2023
994,048
At 31 December 2022
1,293,786
13
Tangible fixed assets
Leasehold property alterations
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
70,012
112,995
72,112
48,172
303,291
Additions
20,967
20,967
Disposals
(45,786)
(27,948)
(73,734)
At 31 December 2023
70,012
67,209
72,112
41,191
250,524
Depreciation and impairment
At 1 January 2023
59,685
102,141
70,597
31,326
263,749
Depreciation charged in the year
1,275
10,214
1,507
12,841
25,837
Eliminated in respect of disposals
(45,781)
(27,926)
(73,707)
At 31 December 2023
60,960
66,574
72,104
16,241
215,879
Carrying amount
At 31 December 2023
9,052
635
8
24,950
34,645
At 31 December 2022
10,327
10,854
1,515
16,846
39,542
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
£
£
Plant and machinery
8,601
ROYCE PEELING GREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,356,501
1,057,884
Amounts recoverable on work in progress
806,951
730,710
Amount due from parent undertaking
1,627,275
1,560,524
Amounts due from fellow group undertakings
46,959
24,318
Amounts due from associate undertakings
595
302
Other debtors
1,590
1,717
Prepayments and accrued income
181,024
94,780
4,020,895
3,470,235
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
17
220,000
220,000
Obligations under finance leases
18
1,667
Other borrowings
17
405,503
Trade creditors
154,823
118,077
Amounts owed to group undertakings
177,393
159,419
Corporation tax
295,632
221,902
Other taxation and social security
638,133
615,265
Other creditors
543,955
628,782
Accruals and deferred income
513,747
341,553
2,949,186
2,306,665
Obligations under finance leases are secured on the asset to which the finance relates.
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
270,000
390,000
Other borrowings
17
379,362
Other creditors
109,536
270,000
878,898
Obligations under finance leases are secured on the asset to which the finance relates.
ROYCE PEELING GREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
17
Loans and overdrafts
2023
2022
£
£
Bank loans
490,000
610,000
Other loans
405,503
379,362
895,503
989,362
Payable within one year
625,503
220,000
Payable after one year
270,000
769,362
The bank overdraft and long-term loans are secured by a fixed and floating charge on the assets of the company.
18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
1,667
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
348,926
228,863
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.
20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
21
Financial commitments, guarantees and contingent liabilities
The company has guaranteed the bank overdraft of its immediate parent undertaking, RPG Holdings Limited. At 31 December 2023 there was a contingent liability of £Nil (2022: £Nil) in respect of this guarantee.
The company has guaranteed the bank overdraft of its fellow subsidiary undertaking, RPG Services Limited. At 31 December 2023 there was a contingent liability of £Nil (2022: £Nil) in respect of this guarantee.
ROYCE PEELING GREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
22
Operating lease commitments
Lessee
The operating leases represent leases to third parties. The leases are negotiated over terms of 5 - 10 years and rentals are fixed for 5 years. All leases include a provision for five-yearly upward rent reviews according to prevailing market conditions. There are no options in place for either party to extend the lease terms.
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
170,637
134,173
Between two and five years
414,973
585,610
585,610
719,783
23
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2022
£
£
Aggregate compensation
1,081,071
903,286
Transactions with related parties
The company has entered into the following transactions with related parties:
Messrs J.S. Brownson, C.M. Poston, P.R. Owen, M.A. Chatten, directors, have entered into personal guarantees with the company's bankers limited to £100,000 each in respect of the bank overdraft and bank loans. D Prais, director, has entered into personal guarantee with the company's bankers limited to £50,000 in respect of the bank overdraft and bank loans.
Mr M.A. Chatten, director, has entered into a further personal guarantee with the company's bankers limited to £100,000 in respect of a bank loan.
ROYCE PEELING GREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
24
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
446,138
532,078
Adjustments for:
Taxation charged
216,074
199,469
Finance costs
113,025
66,153
Investment income
(1,060)
Gain on disposal of tangible fixed assets
(864)
-
Amortisation and impairment of intangible assets
299,738
299,735
Depreciation and impairment of tangible fixed assets
25,837
30,485
Movements in working capital:
Increase in debtors
(550,660)
(240,899)
Increase in creditors
55,419
137,997
Cash generated from operations
604,707
1,023,958
25
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
988,832
(191,264)
797,568
Borrowings excluding overdrafts
(989,362)
93,859
(895,503)
Obligations under finance leases
(1,667)
1,667
-
(2,197)
(95,738)
(97,935)
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