Company registration number 03207868 (England and Wales)
ROUNDHOUSE DESIGN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ROUNDHOUSE DESIGN LIMITED
COMPANY INFORMATION
Directors
Mr C J Wilson
Mr C J Matson
Secretary
Mr C J Wilson
Company number
03207868
Registered office
11 Wigmore Street
London
W1U 1PE
Auditor
Elliotts Shah
4th Floor
167 Fleet Street
London
EC4A 2EA
ROUNDHOUSE DESIGN LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
ROUNDHOUSE DESIGN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The company's strategy is to grow organically by increasing market share and profitability. Our organic growth will be built on:
- Increasing customer awareness of our brand through advertising, editorials, brochures, website and social media;
- Continuing to develop our products so we can further enhance customer choice and add value to our sales;
- Maintaining and improving our network of showrooms;
- Appropriate training of staff.
The company's strong cash position leaves the company well placed to carry out these objectives.
Review of the business
The directors report a increase in turnover from £15.2m in 2022 to £17.0m in the year ended 31 December 2023, which represents a 12% increase in the Company accounts.
Turnover has increased from £15.5m to £18.4m on a consolidated showroom basis.
Principal risks and uncertainties
As with many businesses in our sector and of our size, the business environment and market in which the company operates continues to be challenging from its competitors and is influenced by the current economic conditions impacting on customers purchasing power. The measures used by the the directors to minimise financial risk include the preparation of profit forecasts, regular monitoring of actual performance against these forecasts. The board is responsible for coordinating the company's risk management and focuses on actively securing the company's short to medium terms cash flows. The company seeks to manage cash flow risks to ensure sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely.
Mr C J Wilson
Director
11 September 2024
ROUNDHOUSE DESIGN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of kitchen and bedroom design, supply and installation.
Results and dividends
The results for the year are set out on page 7.
The total distribution of dividends for the year ended 31 December 2023 is £nil (2022: £1,750,000).
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr C J Wilson
Mr C J Matson
GOING CONCERN
The Directors have undertaken a review of the principal risks and uncertainties that are material to the Company in the current economic environment.
Given the cash balances held in the group, the Company has adequate resources to meet all its commitments as they fall due. The Directors have assessed the financial forecast for a period of more than 12 months from the approval of the financial statements and concluded that the Company will continue to be able to meet obligations when they fall due. The Directors have accordingly adopted the going concern basis in preparing the financial statements.
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Auditor
The auditors, Elliotts Shah, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements 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 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.
ROUNDHOUSE DESIGN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr C J Wilson
Director
11 September 2024
ROUNDHOUSE DESIGN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROUNDHOUSE DESIGN LIMITED
- 4 -
Opinion
We have audited the financial statements of Roundhouse Design Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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.
ROUNDHOUSE DESIGN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROUNDHOUSE DESIGN LIMITED (CONTINUED)
- 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.
We gained an understanding of the legal and regulatory framework applicable to the Company and considered the risk of non-compliance to those laws and regulations, including fraud. These laws and regulations included but were not limited to:
- compliance with the Companies Act 2006;
- UK accounting standards.
We considered compliance with laws and regulations that could give rise to a material misstatement in the company's financial statements. Our tests included, but were not limited to:
- agreement of the financial statement disclosures to underlying supporting documentation;
- enquiries of management;
- testing of journal postings made during the year to identify potential management override of controls ; and
- review of meeting minutes throughout the period.
We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and discussed how and where these might occur and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
ROUNDHOUSE DESIGN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROUNDHOUSE DESIGN LIMITED (CONTINUED)
- 6 -
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.
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.
Nathalie Yip
Senior Statutory Auditor
For and on behalf of Elliotts Shah
11 September 2024
Chartered Accountants
Statutory Auditor
4th Floor
167 Fleet Street
London
EC4A 2EA
ROUNDHOUSE DESIGN LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
2
16,998,734
15,169,252
Cost of sales
(11,620,050)
(9,423,862)
Gross profit
5,378,684
5,745,390
Administrative expenses
(4,433,242)
(4,269,237)
Other operating income
16,200
20,250
Operating profit
3
961,642
1,496,403
Interest receivable and similar income
6
13,515
6,691
Profit before taxation
975,157
1,503,094
Tax on profit
7
(53,018)
(94,582)
Profit for the financial year
922,139
1,408,512
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ROUNDHOUSE DESIGN LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
922,139
1,408,512
Other comprehensive income
-
-
Total comprehensive income for the year
922,139
1,408,512
ROUNDHOUSE DESIGN LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
890,635
462,921
Current assets
Stocks
10
621,351
937,683
Debtors
11
6,249,538
5,799,569
Cash at bank and in hand
472,885
1,757,146
7,343,774
8,494,398
Creditors: amounts falling due within one year
12
(4,909,070)
(6,573,252)
Net current assets
2,434,704
1,921,146
Total assets less current liabilities
3,325,339
2,384,067
Provisions for liabilities
Deferred tax liability
13
71,585
52,452
(71,585)
(52,452)
Net assets
3,253,754
2,331,615
Capital and reserves
Called up share capital
15
250,100
250,100
Profit and loss reserves
16
3,003,654
2,081,515
Total equity
3,253,754
2,331,615
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 11 September 2024 and are signed on its behalf by:
Mr C J Wilson
Director
Company registration number 03207868 (England and Wales)
ROUNDHOUSE DESIGN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
250,100
2,423,003
2,673,103
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,408,512
1,408,512
Dividends
8
-
(1,750,000)
(1,750,000)
Balance at 31 December 2022
250,100
2,081,515
2,331,615
Year ended 31 December 2023:
Profit and total comprehensive income
-
922,139
922,139
Balance at 31 December 2023
250,100
3,003,654
3,253,754
ROUNDHOUSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
Roundhouse Design Limited is a private company limited by shares incorporated in England and Wales. The registered office is 11 Wigmore Street, London, 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.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income.
The financial statements of the company are consolidated in the financial statements of Roundhouse Holdings Limited. These consolidated financial statements are available from its registered office, 11 Wigmore Street, London W1U 1PE .
1.2
Going concern
A review of the business activity of the Company are covered in the Report of the Directors.true
Included within the current liabilities were deposits received on planned deliveries of kitchens subsequent to the balance sheet date of £2,236,335 (2022 - £3,891,801). After taking into account these deposits, the company's financial projections, available borrowing facilities 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.
Turnover from long term contracts are recognised when materials are delivered to site and for installation charges when work has been completed. The expected profit is spread over the expected duration of site work.
ROUNDHOUSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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
Computers
-25% on cost
Motor vehicles
-25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Included in fixtures, fitting and equipment are showroom displays which are depreciated annually 25% on cost to a residual value of 30% of the cost.
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.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
ROUNDHOUSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.7
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
Trade receivables are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Trade payables are obligation to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less.
ROUNDHOUSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangement.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current or deferred taxation assets and liabilities are not discounted.
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet 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.
ROUNDHOUSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
1.10
Retirement benefits
The company operates a defined contribution pension scheme under its auto-enrollment obligations. 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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Turnover and other revenue
The turnover and profit before taxation are attributable to the one principal activity of the company.
2023
2022
£
£
Turnover analysed by class of business
Delivered sales
16,523,888
14,515,780
Design Services
474,846
653,472
16,998,734
15,169,252
2023
2022
£
£
Other revenue
Interest income
13,515
6,691
Rents received
16,200
20,250
3
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
163,014
104,200
Profit on disposal of tangible fixed assets
-
(750)
Operating lease charges
397,937
308,379
ROUNDHOUSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
4
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
15,000
16,450
For other services
All other non-audit services
17,000
15,000
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Marketing and Sales
19
19
Office and management
28
27
Total
47
46
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,127,467
2,082,274
Social security costs
229,924
240,015
Pension costs
39,173
34,247
2,396,564
2,356,536
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
13,515
6,691
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
30,456
62,476
Adjustments in respect of prior periods
3,429
Total current tax
33,885
62,476
ROUNDHOUSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Taxation
2023
2022
£
£
(Continued)
- 17 -
Deferred tax
Origination and reversal of timing differences
19,133
32,106
Total tax charge
53,018
94,582
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
975,157
1,503,094
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
243,789
285,588
Tax effect of expenses that are not deductible in determining taxable profit
2,759
479
Tax effect of income not taxable in determining taxable profit
(142)
Effect of change in corporation tax rate
(1,916)
Group relief
(206,352)
(201,635)
Under/(over) provided in prior years
3,429
Capital allowances in excess of depreciation
(7,824)
(21,814)
Deferred tax
19,133
32,106
Taxation charge for the year
53,018
94,582
8
Dividends
2023
2022
2023
2022
Per share
Per share
Total
Total
£
£
£
£
Ordinary
Interim paid
7.00
1,750,000
ROUNDHOUSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
9
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
501,985
144,151
561,778
7,781
185,831
1,401,526
Additions
399,484
41,693
149,551
590,728
At 31 December 2023
901,469
185,844
711,329
7,781
185,831
1,992,254
Depreciation and impairment
At 1 January 2023
272,833
85,340
500,835
7,781
71,816
938,605
Depreciation charged in the year
48,300
28,518
53,584
32,612
163,014
At 31 December 2023
321,133
113,858
554,419
7,781
104,428
1,101,619
Carrying amount
At 31 December 2023
580,336
71,986
156,910
81,403
890,635
At 31 December 2022
229,152
58,811
60,943
114,015
462,921
10
Stocks
2023
2022
£
£
Finished goods and goods for resale
621,351
937,683
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
92,245
113,835
Amounts owed by group undertakings
5,729,488
5,297,830
Other debtors
4,818
3,392
Prepayments and accrued income
422,987
384,512
6,249,538
5,799,569
ROUNDHOUSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
12
Creditors: amounts falling due within one year
2023
2022
£
£
Payments received on account
2,236,335
3,891,801
Trade creditors
303,922
355,749
Amounts owed to group undertakings
651,741
651,741
Corporation tax
30,456
59,047
Other taxation and social security
518,274
542,116
Other creditors
18,009
17,085
Accruals and deferred income
1,150,333
1,055,713
4,909,070
6,573,252
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
71,585
52,452
2023
Movements in the year:
£
Liability at 1 January 2023
52,452
Charge to profit or loss
19,133
Liability at 31 December 2023
71,585
14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
39,173
34,247
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.
15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
250,100
250,100
250,100
250,100
ROUNDHOUSE DESIGN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
16
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
2,081,515
2,423,003
Profit for the year
922,139
1,408,512
Dividends declared and paid in the year
-
(1,750,000)
At the end of the year
3,003,654
2,081,515
17
Financial commitments, guarantees and contingent liabilities
The company has given a cross guarantee and a debenture for the debts due to the lenders of companies under common control. The debenture was created on 16 June 2009 by way of a fixed and floating charge over assets of the company.
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
24,000
24,000
Between two and five years
370,500
468,000
In over five years
3,158,900
3,530,900
3,553,400
4,022,900
19
Related party transactions
Included in debtors are balances due at the year end from fellow group undertakings that are not wholly owned subsidiaries which have common directorship:
- Roundhouse (Cambridge) Limited - £251,813 (2022: £455,989)
- Roundhouse (Cheltenham) Limited - £552,584 (2021: £514,024)
20
Directors' transactions
At the year end, the company had £1,262 (2022: £353) amounts due from the director Craig Matson and £39 (2022: £nil) amounts due from the director Chris Wilson.
21
Ultimate controlling party
The company is a wholly owned subsidiary of Roundhouse Holdings Limited, a company registered in England and Wales. Roundhouse Holdings Limited is under the control of C J Matson by virtue of his beneficial interest in that 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.
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