Company registration number 02835344 (England and Wales)
Randa UK Limited
Annual report and financial statements
for the year ended 31 December 2023
Randa UK Limited
Company information
Director
J Spiegel
Secretary
B Walshe
Company number
02835344
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 UK Limited
Contents
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
Randa UK Limited
Strategic Report
for the year ended 31 December 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Fair review of the business

The company made a pre-tax profit of £4,852,491 (2022: £5,228,688) on turnover of £31,884,979 (2022 £32,005,153) for the year ended 31 December 2023. The decrease in turnover is largely due to overbuying by retailers in 2022.  The decrease in profit is largely due to movements in foreign exchange creating a gain in 2022 and a loss in 2023.

 

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 director expects the market place in 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 director, at a group level the main performance indicator is to ensure the business continues to be profitable overall. The director considers the key performance indicators of customer and category turnover and net margin, whilst maintaining operating costs within a range of sales.

 

On behalf of the board

J Spiegel
Director
27 March 2024
Randa UK Limited
Director's report
for the year ended 31 December 2023
- 2 -

The director presents the 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 the sale and distribution of belts, small leather goods and luggage products.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £3,215,693. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

J 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 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.

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
J Spiegel
Director
27 March 2024
Randa UK Limited
Director's responsibilities statement
for the year ended 31 December 2023
- 3 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Randa UK Limited
Independent auditor's report
to the members of Randa UK Limited
- 4 -
Opinion

We have audited the financial statements of Randa UK Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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 UK Limited
Independent auditor's report (continued)
to the members of Randa 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:

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 director's 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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:

Randa UK Limited
Independent auditor's report (continued)
to the members of Randa UK Limited
- 6 -

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

 

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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. The primary responsibility for the prevention and detection of irregularities and fraud rests with the director.

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.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 UK Limited
Statement of comprehensive income
for the year ended 31 December 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
31,884,979
32,005,153
Cost of sales
(24,696,938)
(25,143,905)
Gross profit
7,188,041
6,861,248
Distribution costs
(1,535,732)
(1,801,375)
Administrative expenses
(812,980)
236,283
Other operating income
11,154
2,791
Operating profit
4
4,850,483
5,298,947
Interest receivable and similar income
6
26,638
24,997
Interest payable and similar expenses
7
(24,630)
(95,256)
Profit before taxation
4,852,491
5,228,688
Tax on profit
8
(1,140,489)
(991,998)
Profit for the financial year
3,712,002
4,236,690

The profit and loss account has been prepared on the basis that all operations are continuing operations.

Randa UK Limited
Balance sheet
as at 31 December 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
677
473
Current assets
Stocks
12
444,065
1,002,790
Debtors
13
4,747,691
4,859,161
Cash at bank and in hand
4,744,579
4,374,600
9,936,335
10,236,551
Creditors: amounts falling due within one year
14
(2,926,628)
(3,722,949)
Net current assets
7,009,707
6,513,602
Net assets
7,010,384
6,514,075
Capital and reserves
Called up share capital
16
2
2
Profit and loss reserves
17
7,010,382
6,514,073
Total equity
7,010,384
6,514,075
The financial statements were approved and signed by the director and authorised for issue on 27 March 2024
J Spiegel
Director
Company Registration No. 02835344
Randa UK Limited
Statement of changes in equity
for the year ended 31 December 2023
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
2
2,277,383
2,277,385
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
4,236,690
4,236,690
Balance at 31 December 2022
2
6,514,073
6,514,075
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
3,712,002
3,712,002
Dividends
9
-
(3,215,693)
(3,215,693)
Balance at 31 December 2023
2
7,010,382
7,010,384
Randa UK Limited
Statememt of cash flows
for the year ended 31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
5,118,873
1,496,224
Interest paid
(24,630)
(95,256)
Income taxes paid
(1,534,743)
(569,893)
Net cash inflow from operating activities
3,559,500
831,075
Investing activities
Purchase of tangible fixed assets
(466)
(630)
Interest received
26,638
24,997
Net cash generated from investing activities
26,172
24,367
Financing activities
Dividends paid
(3,215,693)
-
0
Net cash used in financing activities
(3,215,693)
-
Net increase in cash and cash equivalents
369,979
855,442
Cash and cash equivalents at beginning of year
4,374,600
3,519,158
Cash and cash equivalents at end of year
4,744,579
4,374,600
Randa UK Limited
Notes to the financial statements
for the year ended 31 December 2023
- 11 -
1
Accounting policies
Company information

Randa UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Capital House, 25 Chapel Street, London, NW1 5DH.

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.

1.2
Going concern

The financial statements have been prepared on a going concern basis. The directortrue has considered relevant information, including the financial projections, forecast future cash flows and the impact of subsequent events in making his assessment. Based on this assessment and having regard to the resources available to the company, the director has concluded that there is no material uncertainty and that he can continue to adopt the going concern basis in preparing the annual report and financial statements.

1.3
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.

1.4
Intangible fixed assets - goodwill

Goodwill is recognised at cost and is amortised to the profit and loss account over the period which the directors believe the company will derive direct economic benefit from the goodwill.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery
20% straight line
Fixtures, fittings & equipment
20% straight line
Computer equipment
33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Randa UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 12 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
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.

1.8
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.

1.9
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.

Randa UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 13 -
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 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.

Randa UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Randa UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
1
Accounting policies (continued)
- 15 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
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.

1.13
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.

1.14
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.

Randa UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock provisions

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 managements 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.

Bad debt provision

During the course of the year and during the year end process management are required to determine whether any debts should be regarded as bad debts. This process is based on their knowledge of the business coupled with post year end information identifying debts not recovered relating to the previous financial period.

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 and 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.

3
Turnover and other revenue

Turnover has been derived from the company's principal activity undertaken in the UK and Ireland.

 

 

2023
2022
£
£
Other revenue
Interest income
26,638
24,997
Randa UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 17 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
259,147
(736,485)
Fees payable to the company's auditor for the audit of the company's financial statements
13,100
12,200
Depreciation of owned tangible fixed assets
262
1,321
(Profit)/loss on disposal of tangible fixed assets
-
503
Operating lease charges
47,922
23,469

In addition, recharges of £1,333,118 (2022 - £1,360,734) have been received from Randa Accessories UK Limited, a related party, in respect of staff directly employed by Randa Accessories UK Limited but utilised by Randa UK Limited.

5
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
41,978
40,000

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2022 - 0).

 

The director is deemed to be the Key Management Personnel.

6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
25,961
724
Other interest income
677
24,273
Total income
26,638
24,997
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
25,961
724
Randa UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 18 -
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
14,854
95,256
Other finance costs:
Other interest
9,776
-
0
24,630
95,256
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,139,035
994,560
Deferred tax
Origination and reversal of timing differences
1,454
(2,562)
Total tax charge
1,140,489
991,998

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
4,852,491
5,228,688
Expected tax charge based on the standard rate of corporation tax in the UK of 24% (2022: 19%)
1,140,335
993,451
Effect of change in corporation tax rate
154
(1,453)
Taxation charge for the year
1,140,489
991,998

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 UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 19 -
9
Dividends
2023
2022
£
£
Final paid
3,215,693
-
0
10
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
164,019
Amortisation and impairment
At 1 January 2023 and 31 December 2023
164,019
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
11
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
47,571
52,583
14,312
114,466
Additions
-
0
349
117
466
Disposals
-
0
(250)
(1,782)
(2,032)
At 31 December 2023
47,571
52,682
12,647
112,900
Depreciation and impairment
At 1 January 2023
47,571
52,583
13,839
113,993
Depreciation charged in the year
-
0
23
239
262
Eliminated in respect of disposals
-
0
(250)
(1,782)
(2,032)
At 31 December 2023
47,571
52,356
12,296
112,223
Carrying amount
At 31 December 2023
-
0
326
351
677
At 31 December 2022
-
0
-
0
473
473
Randa UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
- 20 -
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
444,065
1,002,790
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
4,647,708
4,743,080
Other debtors
38,801
78,247
Prepayments and accrued income
57,461
32,659
4,743,970
4,853,986
Deferred tax asset (note 15)
3,721
5,175
4,747,691
4,859,161
14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,882,815
1,848,402
Amounts owed to group undertakings
154,288
11,776
Corporation tax
98,968
494,676
Other taxation and social security
14,125
66,808
Other creditors
5,091
1,396
Accruals and deferred income
771,341
1,299,891
2,926,628
3,722,949
15
Deferred taxation

The following are the deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
471
675
Other short term timing differences
3,250
4,500
3,721
5,175
Randa UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
15
Deferred taxation (continued)
- 21 -
2023
Movements in the year:
£
Asset at 1 January 2023
(5,175)
Charge to profit or loss
1,454
Asset at 31 December 2023
(3,721)
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2

Every ordinary share carries one vote and is entitled to participate pari passu with other ordinary shares in any dividend or capital distribution.

17
Profit and loss reserves

Profit and loss reserves include all current and prior period retained profits and losses.

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
48,402
47,922
Between two and five years
39,762
88,164
88,164
136,086
19
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Purchases
2023
2022
2023
2022
£
£
£
£
Other related parties
-
0
24,273
227,460
335,373
Randa UK Limited
Notes to the financial statements (continued)
for the year ended 31 December 2023
19
Related party transactions (continued)
- 22 -
Management charges payable
Interest payable
2023
2022
2023
2022
£
£
£
£
Other related parties
1,632,578
1,619,274
14,854
95,256

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Other related parties
154,288
11,776
20
Ultimate controlling party

The immediate and ultimate parent company is Randa International Holdings LLC, which is organised and incorporated in the United States of America.

21
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
3,712,002
4,236,690
Adjustments for:
Taxation charged
1,140,489
991,998
Finance costs
24,630
95,256
Investment income
(26,638)
(24,997)
(Gain)/loss on disposal of tangible fixed assets
-
503
Depreciation and impairment of tangible fixed assets
262
1,321
Movements in working capital:
Decrease/(increase) in stocks
558,725
(481,838)
Decrease/(increase) in debtors
110,016
(909,731)
Decrease in creditors
(400,613)
(2,412,978)
Cash generated from operations
5,118,873
1,496,224
22
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
4,374,600
369,979
4,744,579
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