Company registration number 13610249 (England and Wales)
ROUNDHOUSE (CHELTENHAM) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ROUNDHOUSE (CHELTENHAM) LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
ROUNDHOUSE (CHELTENHAM) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
467,022
395,151
Current assets
Stocks
29,767
-
Debtors
4
110,099
149,112
139,866
149,112
Creditors: amounts falling due within one year
5
(821,574)
(518,817)
Net current liabilities
(681,708)
(369,705)
Total assets less current liabilities
(214,686)
25,446
Provisions for liabilities
(34,978)
(33,221)
Net liabilities
(249,664)
(7,775)
Capital and reserves
Called up share capital
6
1,000
1,000
Share premium account
99,000
99,000
Profit and loss reserves
7
(349,664)
(107,775)
Total equity
(249,664)
(7,775)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 11 September 2024 and are signed on its behalf by:
Mr C J Wilson
Director
Company registration number 13610249 (England and Wales)
ROUNDHOUSE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Roundhouse (Cheltenham) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 11 Wigmore Street, London, England, W1U 1PE.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
1.2
Going concern
The financial statements have been prepared on a going concern basis, which assumes the continued support oftrue group companies for a period greater than 12 months from the date of approval of these financial statements. The financial statements do not include any adjustments that would result from a failure to obtain continued support.
In the initial stage of operation, the Company has net current liabilities of £681,708 (2022: £369,705) at the balance sheet date. The company's financial projections, available borrowing facilities, financial support from its group undertakings and other relevant financial matters, the directors consider that the Company will be able to meet its liabilities as they fall due and are satisfied that on the date of approving the financial statements, there is a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Directors consider the going concern basis to be appropriate.
1.3
Turnover
Turnover represents the value of design services, manufactured units and installation services including appliances, on the basis of completion of delivery excluding VAT and discounts. Turnover also recognises a proportionate value of the total contract in relation to design services provided.
1.4
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 land and buildings
10% on cost
Plant and equipment
25% on cost
Fixtures and fittings
25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
ROUNDHOUSE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
Included in fixtures and fittings are showroom displays which are depreciated at 25% per annum on cost to a residual value of 30% of the original cost.
Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and accumulated impairment losses.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.6
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
1.7
Financial instruments
Financial assets and financial liabilities are recognised on the Company's balance sheet when the Company has become a party to the contractual provisions of the instrument.
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.
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.
ROUNDHOUSE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.
1.8
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.
1.9
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.
1.10
Retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
ROUNDHOUSE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
2
1
3
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2023
262,268
132,883
395,151
Additions
87,855
1,100
52,413
141,368
At 31 December 2023
350,123
1,100
185,296
536,519
Depreciation and impairment
At 1 January 2023
Depreciation charged in the year
23,014
275
46,208
69,497
At 31 December 2023
23,014
275
46,208
69,497
Carrying amount
At 31 December 2023
327,109
825
139,088
467,022
At 31 December 2022
262,268
132,883
395,151
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
82,000
100,000
Other debtors
28,099
49,112
110,099
149,112
ROUNDHOUSE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Payments received on account
194,499
Amounts owed to group undertakings
552,584
514,024
Taxation and social security
3,073
2,000
Other creditors
519
294
Accruals and deferred income
70,899
2,499
821,574
518,817
6
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
100,000
100,000
1,000
1,000
7
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
(107,775)
Loss for the year
(241,889)
(107,775)
At the end of the year
(349,664)
(107,775)
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Nathalie Yip
Statutory Auditor:
Elliotts Shah
Date of audit report:
11 September 2024
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
720,000
810,000
ROUNDHOUSE (CHELTENHAM) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
10
Related party transactions
In the period, the Company has entered into related party transactions on an arms-length basis with its parent company and fellow subsidiary undertaking, which it has common directorship.
Included in debtors and creditors are balances due at the year end from the parent company and fellow group undertaking which have common directorship:
- Amounts due from Roundhouse Holdings Limited - £82,000 (2022: £100,000).
- Amounts due to Roundhouse Design Limited - £552,584 (2022: £514,024).
11
Parent company
The ultimate parent company is Roundhouse Holdings Limited, a company registered in England and Wales, which owns 75% of the issued share capital of the company.
The ultimate controlling party is C J Matson by virtue of his beneficial ownership of the issued share capital of the ultimate parent company, Roundhouse Holdings Limited.