Company registration number 02840222 (England and Wales)
Randa Accessories UK Limited
Annual report and consolidated financial statements
for the year ended 31 December 2023
Randa Accessories UK Limited
Company information
Directors
Jeffrey Spiegel
Ed Turner
Justin Spiegel
Secretary
Purple Venture Secretaries Limited
Company number
02840222
Registered office
Capital House
25 Chapel Street
London
NW1 5DH
Auditor
Henderson Loggie LLP
The Vision Building
20 Greenmarket
Dundee
DD1 4QB
Business address
Eastfield Industrial Estate
Glenrothes
Fife
KY7 4NX
Bankers
JP Morgan
25 Bank Street
Canary Wharf
London
E14 5JP
Randa Accessories UK Limited
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Company statement of cash flows
13
Notes to the financial statements
14 - 34
Randa Accessories UK Limited
Strategic report
for the year ended 31 December 2023
- 1 -
The Directors present the strategic report for the year ended 31 December 2023.
Review of the business
The group made a pre-tax profit of £774,668 (2022: £953,326) on turnover of £5,750,854 (2022: £7,299,011) for the year ended 31 December 2023. The decrease in turnover has been driven by overbuying by customers in 2022 and holding high stock levels coming into 2023.
The decrease in profit is consequently impacted by the decrease in turnover, while category margin % is relatively consistent, the lower unit volumes in all categories have driven lower cash margin.
Randa has strong cash reserves to ensure the group remains financially strong even when the volume base reduces.
Principal risks and uncertainties
The impact of War in Europe creates economic and political uncertainty. Significant fuel and food cost increases have impacted leaving high interest rates and low consumer confidence. The outlook in 2024 with lower inflation and interest rates expected to come should help to improve confidence.
Retailers continue to struggle and while the company mitigates this risk by carrying credit insurance that limits any financial loss, it is limited in that it cannot replace any customers' turnover.
Development and performance
The directors expect the market place in the year to 31 December 2024 to be similar to 2023. Great design, strong licences and good working customer relations will continue to put us in a strong position.
Key performance indicators
In the opinion of the directors, at a group level the main performance indicator is to ensure the business continues to be profitable overall. The directors consider the key performance indicators of customer and category turnover and net margin, whilst maintaining operating costs within a range of sales.
Jeffrey Spiegel
Director
27 March 2024
Randa Accessories UK Limited
Directors' report
for the year ended 31 December 2023
- 2 -
The Directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company and group continued to be the sale and distribution of neckwear.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The Directors who held office during the year and up to the date of signature of the financial statements were as follows:
Jeffrey Spiegel
Ed Turner
Justin Spiegel
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 auditor of the company 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 auditor of the company is aware of that information.
Strategic report
Included within the strategic report is an indication of the principal risks and uncertainties including the risks associated with the market conditions, competition and legislative and compliance risks.
On behalf of the board
Jeffrey Spiegel
Director
27 March 2024
Randa Accessories UK 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the Directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Randa Accessories UK Limited
Independent auditor's report
to the members of Randa Accessories UK Limited
- 4 -
Opinion
We have audited the financial statements of Randa Accessories UK Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 group's and the parent company's affairs as at 31 December 2023 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
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.
Randa Accessories UK Limited
Independent auditor's report (continued)
to the members of Randa Accessories UK Limited
- 5 -
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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Directors' responsibilities statement, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the parent 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.
As part of our planning process:
We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. Management informed us that there were no instances of known, suspected or alleged fraud;
We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Health and Safety; employment law (including the Working Time Directive) and compliance with the UK Companies Act;
We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetrated, and tailored our risk assessment accordingly; and
Using our knowledge of the company, together with the discussions held with management at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
Randa Accessories UK Limited
Independent auditor's report (continued)
to the members of Randa Accessories UK Limited
- 6 -
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations and fraud;
Reading correspondence with regulators including the Health and Safety Executive to determine the extent of compliance;
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular the application of accruals and provisions in relation to stock and bad debts;
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness;
Testing key revenue lines, in particular cut-off, for evidence of management bias; and
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
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.
Gavin Black (Senior Statutory Auditor)
For and on behalf of Henderson Loggie LLP
27 March 2024
Chartered Accountants
Statutory Auditor
The Vision Building
20 Greenmarket
Dundee
DD1 4QB
Randa Accessories UK Limited
Group statement of comprehensive income
for the year ended 31 December 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
5,750,854
7,299,011
Cost of sales
(3,751,635)
(4,812,446)
Gross profit
1,999,219
2,486,565
Distribution costs
(668,236)
(886,364)
Administrative expenses
(637,228)
(708,829)
Other operating income
19,130
1,321
Operating profit
4
712,885
892,693
Interest receivable and similar income
8
61,783
60,633
Profit before taxation
774,668
953,326
Tax on profit
9
(139,379)
(232,855)
Profit for the financial year
23
635,289
720,471
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(22,503)
8,153
Total comprehensive income for the year
612,786
728,624
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Randa Accessories UK Limited
Group balance sheet
as at 31 December 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
3,083
4,083
Tangible assets
11
79,852
74,926
Investments
12
5,571
5,571
88,506
84,580
Current assets
Stocks
15
486,410
672,757
Debtors
16
1,253,365
1,277,972
Cash at bank and in hand
6,898,261
6,321,583
8,638,036
8,272,312
Creditors: amounts falling due within one year
17
(1,075,902)
(1,330,276)
Net current assets
7,562,134
6,942,036
Total assets less current liabilities
7,650,640
7,026,616
Provisions for liabilities
Deferred tax liability
18
(11,238)
(11,238)
-
Net assets
7,639,402
7,026,616
Capital and reserves
Called up share capital
21
200,000
200,000
Other reserves
283,482
305,985
Profit and loss reserves
23
7,155,920
6,520,631
Total equity
7,639,402
7,026,616
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 27 March 2024 and are signed on its behalf by:
27 March 2024
Jeffrey Spiegel
Director
Company registration number 02840222 (England and Wales)
Randa Accessories UK Limited
Company balance sheet
as at 31 December 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
3,083
4,083
Tangible assets
11
79,852
74,926
Investments
12
137,625
137,625
220,560
216,634
Current assets
Stocks
15
486,410
672,757
Debtors
16
1,251,164
1,275,563
Cash at bank and in hand
6,618,971
6,018,166
8,356,545
7,966,486
Creditors: amounts falling due within one year
17
(1,072,029)
(1,326,090)
Net current assets
7,284,516
6,640,396
Total assets less current liabilities
7,505,076
6,857,030
Provisions for liabilities
Deferred tax liability
18
(11,238)
(11,238)
-
Net assets
7,493,838
6,857,030
Capital and reserves
Called up share capital
21
200,000
200,000
Profit and loss reserves
23
7,293,838
6,657,030
Total equity
7,493,838
6,857,030
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £636,808 (2022 - £910,663 profit).
The financial statements were approved by the board of directors and authorised for issue on 27 March 2024 and are signed on its behalf by:
27 March 2024
Jeffrey Spiegel
Director
Company registration number 02840222 (England and Wales)
Randa Accessories UK Limited
Group statement of changes in equity
for the year ended 31 December 2023
- 10 -
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
200,000
297,832
5,800,160
6,297,992
Year ended 31 December 2022:
Profit for the year
-
-
720,471
720,471
Other comprehensive income:
Currency translation differences
-
-
8,153
8,153
Total comprehensive income
-
-
728,624
728,624
Other movements
-
8,153
(8,153)
-
Balance at 31 December 2022
200,000
305,985
6,520,631
7,026,616
Year ended 31 December 2023:
Profit for the year
-
-
635,289
635,289
Other comprehensive income:
Currency translation differences
-
-
(22,503)
(22,503)
Total comprehensive income
-
-
612,786
612,786
Other movements
-
(22,503)
22,503
-
Balance at 31 December 2023
200,000
283,482
7,155,920
7,639,402
Randa Accessories UK Limited
Company statement of changes in equity
for the year ended 31 December 2023
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
200,000
5,746,367
5,946,367
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
910,663
910,663
Balance at 31 December 2022
200,000
6,657,030
6,857,030
Year ended 31 December 2023:
Profit and total comprehensive income
-
636,808
636,808
Balance at 31 December 2023
200,000
7,293,838
7,493,838
Randa Accessories UK Limited
Group statement of cash flows
for the year ended 31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
936,280
4,872,951
Income taxes paid
(360,217)
(16,582)
Net cash inflow from operating activities
576,063
4,856,369
Investing activities
Purchase of intangible assets
-
(5,000)
Purchase of tangible fixed assets
(70,465)
(65,468)
Proceeds from disposal of tangible fixed assets
31,800
125
Proceeds from disposal of associates
-
162,000
Interest received
61,783
98,767
Net cash generated from investing activities
23,118
190,424
Net increase in cash and cash equivalents
599,181
5,046,793
Cash and cash equivalents at beginning of year
6,321,583
1,266,637
Effect of foreign exchange rates
(22,503)
8,153
Cash and cash equivalents at end of year
6,898,261
6,321,583
Randa Accessories UK Limited
Company statement of cash flows
for the year ended 31 December 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
939,608
4,869,430
Income taxes paid
(360,217)
(16,466)
Net cash inflow from operating activities
579,391
4,852,964
Investing activities
Purchase of intangible assets
(5,000)
Purchase of tangible fixed assets
(70,465)
(65,468)
Proceeds from disposal of tangible fixed assets
31,800
125
Interest received
60,079
96,047
Dividends received
162,000
Net cash generated from investing activities
21,414
187,704
Net increase in cash and cash equivalents
600,805
5,040,668
Cash and cash equivalents at beginning of year
6,018,166
977,498
Cash and cash equivalents at end of year
6,618,971
6,018,166
Randa Accessories UK Limited
Notes to the Group financial statements
for the year ended 31 December 2023
- 14 -
1
Accounting policies
Company information
Randa Accessories UK Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Capital House, 25 Chapel Street, London, NW1 5DH.
The group consists of Randa Accessories UK Limited and its subsidiary, Randa Shanghai Limited.
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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated financial statements incorporate those of Randa Accessories UK Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 15 -
1.4
Going concern
The financial statements have been prepared on a going concern basis. In making their assessment, the directors have considered relevant information, including trading and cash flow forecasts and the impact of subsequent events. Based on this assessment and having regard to the level of cash reserves, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for the sale of goods in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents & licences
20% straight line
1.7
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:
Freehold land and buildings
4% straight line
Plant and equipment
25% straight line
Fixtures and fittings
25% straight line
Computers
33% straight line
Motor vehicles
20% 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 recognised in the profit and loss account.
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 16 -
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9
Impairment of fixed assets
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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.
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 17 -
1.11
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.
1.12
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 18 -
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 group 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
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.
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 group after deducting all of its liabilities.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 19 -
1.14
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 group’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 if, and only if, there is 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.
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
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 leased asset are consumed.
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 20 -
1.18
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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
1.19
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at the rates ruling at the balance sheet date. Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
Stock provision
In arriving at the valuation of stock it may be necessary for management to make an assessment over the carrying value of stock items and where applicable apply a provision to amend this carrying value to a more accurate level. These provisions are arrived at using management's knowledge and understanding of the business and the industry in which it operates and focuses on potentially obsolete or old items for which the full value may no longer be recoverable.
Trade debtors recovery
Credit control is an important function which requires assessment, on an ongoing basis, of the recoverability of amounts due from trade debtors. Where recovery is in doubt, the management will adequately provide against this specific debt and will arrive at such conclusions based on the knowledge of the debtor and their “ability to pay”. The management adopt a prudent approach to credit control.
Accruals
Management estimate requirements for accruals using post year end information and information available from detailed budgets. This identifies costs and income that are expected to be incurred or received for goods/services provided by and to other parties. Accruals are only released when there is a reasonable expectation that these costs will not be invoiced in the future.
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
- 21 -
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Neckwear
5,750,854
7,299,011
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom & Ireland
5,750,854
7,299,011
2023
2022
£
£
Other revenue
Interest income
61,783
98,767
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(6,852)
62,567
Depreciation of owned tangible fixed assets
29,483
36,960
Loss/(profit) on disposal of tangible fixed assets
4,256
(125)
Amortisation of intangible assets
1,000
917
Operating lease charges
88,064
88,217
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 group and company
15,750
14,800
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
- 22 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
2023
2022
Number
Number
Distribution
13
11
Sales
11
11
Admin
12
12
Total
36
34
Their aggregate remuneration comprised:
Group
2023
2022
£
£
Wages and salaries
2,119,403
2,399,895
Social security costs
220,478
331,715
Pension costs
184,429
180,371
2,524,310
2,911,981
Included in the above remuneration is £1,333,118 (2022 - £1,360,734) recharged to Randa UK Limited, a related company, for employees utilised in its business.
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
200,000
200,000
The number of directors for whom retirement benefits are accruing under defined benefit schemes amounted to 0 (2022 - 0).
The directors are deemed to be the Key Management Personnel.
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
- 23 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
46,929
3,511
Interest receivable from group companies
14,854
95,256
Total interest revenue
61,783
98,767
Income from fixed asset investments
Income from participating interests - joint ventures
(38,134)
Total income
61,783
60,633
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
61,783
98,767
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
169,478
227,210
Adjustments in respect of prior periods
(53,618)
6,842
Total UK current tax
115,860
234,052
Foreign current tax on profits for the current period
116
Total current tax
115,860
234,168
Deferred tax
Origination and reversal of timing differences
22,041
14,868
Adjustment in respect of prior periods
1,478
(16,181)
Total deferred tax
23,519
(1,313)
Total tax charge
139,379
232,855
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
9
Taxation (continued)
- 24 -
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
774,668
953,326
Expected tax charge based on the standard rate of corporation tax in the UK of 24% (2022: 19%)
182,047
181,132
Adjustments in respect of prior years
(53,618)
6,842
Effect of overseas tax rates
357
116
Deferred tax adjustments in respect of prior years
1,478
(16,181)
Other short term timing differences
9,115
60,946
Taxation charge
139,379
232,855
On 3 March 2021, the UK Budget 2021 announcements included measures to support economic recovery as a result of the COVID-19 pandemic. These included an increase to the UK’s main corporation tax rate to 25%, which became effective from 1 April 2023. The 25% rate was granted Royal Assent on 10 June 2021 and so was substantively enacted at the balance sheet date. As a result the closing deferred tax balances as at 31 December 2023 are recognised at 25% (2022 - 25%) and the corporation tax rate effective in the period has been apportioned between the previous rate of 19% and the new rate of 25% at 23.5% (2022 - 19%).
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
- 25 -
10
Intangible fixed assets
Group
Patents & licences
£
Cost
At 1 January 2023 and 31 December 2023
5,000
Amortisation and impairment
At 1 January 2023
917
Amortisation charged for the year
1,000
At 31 December 2023
1,917
Carrying amount
At 31 December 2023
3,083
At 31 December 2022
4,083
Company
Patents & licences
£
Cost
At 1 January 2023 and 31 December 2023
5,000
Amortisation and impairment
At 1 January 2023
917
Amortisation charged for the year
1,000
At 31 December 2023
1,917
Carrying amount
At 31 December 2023
3,083
At 31 December 2022
4,083
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
- 26 -
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
523,844
25,821
101,783
367,634
66,589
1,085,671
Additions
4,280
2,394
2,041
61,750
70,465
Disposals
(791)
(3,556)
(62,439)
(66,786)
At 31 December 2023
523,844
30,101
103,386
366,119
65,900
1,089,350
Depreciation and impairment
At 1 January 2023
519,973
20,837
88,174
363,431
18,330
1,010,745
Depreciation charged in the year
3,582
2,904
5,954
2,266
14,777
29,483
Eliminated in respect of disposals
(791)
(3,556)
(26,383)
(30,730)
At 31 December 2023
523,555
23,741
93,337
362,141
6,724
1,009,498
Carrying amount
At 31 December 2023
289
6,360
10,049
3,978
59,176
79,852
At 31 December 2022
3,871
4,984
13,609
4,203
48,259
74,926
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
11
Tangible fixed assets (continued)
- 27 -
Company
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
523,844
25,821
101,783
367,634
66,589
1,085,671
Additions
4,280
2,394
2,041
61,750
70,465
Disposals
(791)
(3,556)
(62,439)
(66,786)
At 31 December 2023
523,844
30,101
103,386
366,119
65,900
1,089,350
Depreciation and impairment
At 1 January 2023
519,973
20,837
88,174
363,431
18,330
1,010,745
Depreciation charged in the year
3,582
2,904
5,954
2,266
14,777
29,483
Eliminated in respect of disposals
(791)
(3,556)
(26,383)
(30,730)
At 31 December 2023
523,555
23,741
93,337
362,141
6,724
1,009,498
Carrying amount
At 31 December 2023
289
6,360
10,049
3,978
59,176
79,852
At 31 December 2022
3,871
4,984
13,609
4,203
48,259
74,926
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
132,626
132,626
Investments in joint ventures
14
5,571
5,571
4,999
4,999
5,571
5,571
137,625
137,625
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
12
Fixed asset investments (continued)
- 28 -
Movements in fixed asset investments
Group
Shares in joint ventures
£
Cost or valuation
At 1 January 2023 and 31 December 2023
5,571
Carrying amount
At 31 December 2023
5,571
At 31 December 2022
5,571
Movements in fixed asset investments
Company
Shares in subsidiaries and joint ventures
£
Cost or valuation
At 1 January 2023 and 31 December 2023
137,625
Carrying amount
At 31 December 2023
137,625
At 31 December 2022
137,625
13
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Randa Shanghai Limited
China
International trade consultants
Ordinary
100.00
14
Joint ventures
Details of joint ventures at 31 December 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Interest held
% Held Direct
Moss Bros Finance Limited
UK
Holding company
Ordinary
49.99
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
- 29 -
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
486,410
672,757
486,410
672,757
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
958,791
1,157,226
958,791
1,157,226
Corporation tax recoverable
60,697
60,697
Other debtors
151,803
12,937
151,216
12,394
Prepayments and accrued income
82,074
95,528
80,460
93,662
1,253,365
1,265,691
1,251,164
1,263,282
Deferred tax asset (note 18)
12,281
12,281
1,253,365
1,277,972
1,251,164
1,275,563
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Trade creditors
195,270
319,820
195,270
319,820
Corporation tax payable
183,660
183,660
Other taxation and social security
94,010
106,353
94,010
106,353
Government grants
19
1,173
1,173
Other creditors
93,344
1,048
93,344
1,048
Accruals and deferred income
693,278
718,222
689,405
714,036
1,075,902
1,330,276
1,072,029
1,326,090
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
- 30 -
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
14,988
-
-
7,053
Other timing differences
(3,750)
-
-
5,228
11,238
-
-
12,281
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
14,988
-
-
7,053
Other timing differences
(3,750)
-
-
5,228
11,238
-
-
12,281
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 January 2023
(12,281)
(12,281)
Charge to profit or loss
23,519
23,519
Liability at 31 December 2023
11,238
11,238
19
Government grants
Group
Company
2023
2022
2023
2022
£
£
£
£
Arising from government grants
-
1,173
-
1,173
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
184,429
180,371
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
20
Retirement benefit schemes (continued)
- 31 -
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Included in the above is £120,942 (2022 - £117,489) recharged to Randa UK Limited, a related company, for employees utilised in its business.
21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200,000
200,000
200,000
200,000
Each ordinary share carries one vote and is entitled to participate pari passu with other ordinary shares in any dividend or capital distribution.
22
Other reserves
Other reserves include all current and prior period gains and losses on translation of the foreign subsidiary for consolidation purposes.
23
Profit and loss reserves
Profit and loss reserves include all current and prior period retained profits and losses.
24
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
93,810
100,060
93,810
100,060
Between two and five years
71,338
156,148
71,338
156,148
In over five years
374,250
383,250
374,250
383,250
539,398
639,458
539,398
639,458
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
- 32 -
25
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Commissions
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Other related parties
16,581
9,397
2,399,947
3,834,599
Company
Other related parties
16,581
9,397
2,399,947
3,834,599
Management charges paid / (received)
Interest received
2023
2022
2023
2022
£
£
£
£
Group
Entities with control, joint control or significant influence over the company
210,786
421,531
-
-
Other related parties
(1,632,578)
(1,619,274)
14,854
95,256
Company
Entities with control, joint control or significant influence over the company
210,786
421,531
-
-
Other related parties
(1,632,578)
(1,619,274)
14,854
95,256
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2023
2022
£
£
Group
Other related parties
83,941
-
Company
Other related parties
83,941
-
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
25
Related party transactions (continued)
- 33 -
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Other related parties
138,880
10,352
Company
Other related parties
138,880
10,352
26
Controlling party
The ultimate controlling company is Randa Corp, which is incorporated in the United States of America, H Spiegel owns 88% of the share capital of Randa Corp. The group is both the largest and smallest group of undertakings including Randa Accessories UK Limited for which consolidated accounts are drawn up.
27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
635,289
(720,471)
Adjustments for:
Taxation charged
139,379
232,855
Investment income
(61,783)
(60,633)
Loss/(gain) on disposal of tangible fixed assets
4,256
(125)
Amortisation and impairment of intangible assets
1,000
917
Depreciation and impairment of tangible fixed assets
29,483
36,960
Movements in working capital:
Decrease/(increase) in stocks
186,347
(436,214)
Decrease in debtors
73,023
4,539,453
Decrease in creditors
(69,541)
(158,383)
Decrease in deferred income
(1,173)
(2,350)
Cash generated from operations
936,280
4,872,951
Randa Accessories UK Limited
Notes to the Group financial statements (continued)
for the year ended 31 December 2023
- 34 -
28
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
636,808
(910,663)
Adjustments for:
Taxation charged
139,379
232,739
Investment income
(60,079)
(258,047)
Loss/(gain) on disposal of tangible fixed assets
4,256
(125)
Amortisation and impairment of intangible assets
1,000
917
Depreciation and impairment of tangible fixed assets
29,483
36,960
Movements in working capital:
Decrease/(increase) in stocks
186,347
(436,214)
Decrease in debtors
72,815
4,539,319
Decrease in creditors
(69,228)
(154,432)
Decrease in deferred income
(1,173)
(2,350)
Cash generated from operations
939,608
4,869,430
29
Analysis of changes in net funds - group
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
£
£
£
£
Cash at bank and in hand
6,321,583
599,181
(22,503)
6,898,261
30
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
6,018,166
600,805
6,618,971
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100Jeffrey SpiegelEd TurnerJustin SpiegelPurple Venture Secretaries 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