Company registration number 11506640 (England and Wales)
RAVAGO BUILDING SOLUTIONS UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
RAVAGO BUILDING SOLUTIONS UK LIMITED
COMPANY INFORMATION
Directors
Mr S R Norton
Mr T Keisers
Mr P R A Cabuy
Company number
11506640
Registered office
Beech Farm
Lymm Road
Thelwall
Warrington
WA4 2TG
Auditor
MHA Moore and Smalley
Richard House
9 Winckley Square
Preston
PR1 3HP
RAVAGO BUILDING SOLUTIONS UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
RAVAGO BUILDING SOLUTIONS 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 principal activity of the company is the manufacture and distribution of specialised building & industrial products and solutions.

 

The company manufactures a range of thermal insulation, which can be used in a wide range of roofing and flooring applications. The company offers a wide range of products in several thicknesses, different surfaces and various compressive strengths to meet the performance requirements of buildings. The company also manufactures insulation for the Refrigerated Truck business, that are involved in supply chain solutions for the food, pharmaceuticals and any other application requiring a controlled temperature environment.

 

Turnover has been strong throughout 2023 and the company achieved a figure of £29.4m compared to the prior year of £26.3m. The increase in turnover was largely due to higher volumes sold in the year due to the construction sector being stronger than expected. With inflation still higher than government targets throughout the year, we have experienced pressure on our supply chain in terms of pricing which we have had to manage carefully. As a result, our Gross Profit % has remained largely static although does show a small increase, up from 47.8% in 2022 to 48.5% in 2023. Despite inflationary pressures, we have managed to keep overhead costs at a stable level throughout the year, largely due to a decrease in utility costs. As a result, our overall profitability for the year has increased and the board of directors consider 2023 performance to be very satisfactory and are looking to maintain the strong results in 2024.

The company is in a strong financial position with net assets of £8.9m and net current assets of £5.0m at the year end.

Principal risks and uncertainties

Key risks include:

 

 

 

 

Key performance indicators

Given the straightforward nature of the company's operations, the directors are of the opinion that analysis using KPIs other than the financial results, is not necessary for an understanding of the development, performance or position of the business.

RAVAGO BUILDING SOLUTIONS UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Future plans

The company will continue to work at strengthening the business through improvements in internal processes and products, continued development of the workforce, and making use of our Group network, all while focusing on customer needs. The company will continue to monitor and respond to the principal risks and uncertainties surrounding the business, to ensure we have the correct structure and resources in place. The company encourages and will continue to invest in new technology and innovative products, working closely with its client base to ensure their needs are met. We will also continue to work with our site services provider to ensure we have the correct infrastructure in place going forward.

Financial risk management

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company manages its working capital to ensure an excess of current assets over current liabilities.

On behalf of the board

Mr S R Norton
Director
1 March 2024
RAVAGO BUILDING SOLUTIONS UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £2,195,634. The directors do not recommend payment of a further dividend.

Directors

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

Mr S R Norton
Mr T Keisers
Mr P R A Cabuy
Auditor

The auditor, MHA Moore and Smalley, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management objectives and policies, and future developments.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr S R Norton
Director
1 March 2024
RAVAGO BUILDING SOLUTIONS UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

RAVAGO BUILDING SOLUTIONS UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF RAVAGO BUILDING SOLUTIONS UK LIMITED
- 5 -
Opinion

We have audited the financial statements of Ravago Building Solutions 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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 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.

RAVAGO BUILDING SOLUTIONS UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF RAVAGO BUILDING SOLUTIONS UK LIMITED
- 6 -

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 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, are detailed below:

We identified the following areas as those most likely to have a material impact on the financial statements: employment law, health and safety legislation, and compliance with the UK Companies Act.

RAVAGO BUILDING SOLUTIONS UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF RAVAGO BUILDING SOLUTIONS UK LIMITED
- 7 -

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 recognize 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.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Damian Walmsley BA FCA
Senior Statutory Auditor
For and on behalf of MHA Moore and Smalley
Chartered Accountants
Statutory Auditor
Richard House
9 Winckley Square
Preston
PR1 3HP
1 March 2024
RAVAGO BUILDING SOLUTIONS UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
29,371,381
26,264,946
Cost of sales
(15,134,635)
(13,701,852)
Gross profit
14,236,746
12,563,094
Distribution costs
(2,410,099)
(2,149,147)
Administrative expenses
(7,094,057)
(7,128,215)
Other operating income
105,391
102,541
Operating profit
4
4,837,981
3,388,273
Interest payable and similar expenses
6
(66,573)
(79,625)
Profit before taxation
4,771,408
3,308,648
Tax on profit
7
(1,124,203)
(683,037)
Profit for the financial year
3,647,205
2,625,611

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

RAVAGO BUILDING SOLUTIONS UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Negative goodwill
9
(1,859,737)
(1,901,386)
Tangible assets
10
7,210,769
6,902,205
Current assets
Stocks
11
5,087,553
5,470,038
Debtors
12
3,515,928
3,196,554
Cash at bank and in hand
97,274
125,624
8,700,755
8,792,216
Creditors: amounts falling due within one year
13
(3,684,208)
(4,388,163)
Net current assets
5,016,547
4,404,053
Total assets less current liabilities
10,367,579
9,404,872
Creditors: amounts falling due after more than one year
14
-
0
(531,158)
Provisions for liabilities
Deferred tax liability
15
1,422,646
1,380,352
(1,422,646)
(1,380,352)
Net assets
8,944,933
7,493,362
Capital and reserves
Called up share capital
17
50,000
50,000
Profit and loss reserves
8,894,933
7,443,362
Total equity
8,944,933
7,493,362
The financial statements were approved by the board of directors and authorised for issue on 1 March 2024 and are signed on its behalf by:
Mr S R Norton
Mr T Keisers
Director
Director
Mr P R A Cabuy
Director
Company Registration No. 11506640
RAVAGO BUILDING SOLUTIONS UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
50,000
7,276,343
7,326,343
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
2,625,611
2,625,611
Dividends
8
-
(2,458,592)
(2,458,592)
Balance at 31 December 2022
50,000
7,443,362
7,493,362
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
3,647,205
3,647,205
Dividends
8
-
(2,195,634)
(2,195,634)
Balance at 31 December 2023
50,000
8,894,933
8,944,933
RAVAGO BUILDING SOLUTIONS UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
4,373,782
4,451,088
Interest paid
(66,573)
(79,625)
Income taxes paid
(661,789)
(669,092)
Net cash inflow from operating activities
3,645,420
3,702,371
Investing activities
Purchase of tangible fixed assets
(954,478)
(909,348)
Proceeds from disposal of tangible fixed assets
7,500
124,733
Net cash used in investing activities
(946,978)
(784,615)
Financing activities
Repayment of borrowings
(531,158)
(1,291,408)
Dividends paid
(2,195,634)
(2,458,592)
Net cash used in financing activities
(2,726,792)
(3,750,000)
Net decrease in cash and cash equivalents
(28,350)
(832,244)
Cash and cash equivalents at beginning of year
125,624
957,868
Cash and cash equivalents at end of year
97,274
125,624
RAVAGO BUILDING SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Ravago Building Solutions UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Beech Farm, Lymm Road, Thelwall, Warrington, WA4 2TG. The trading address is Estuary Road, King's Lynn, Norfolk, PE30 2HJ.

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 land and buildings acquired as part of a business combination at their fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

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.

 

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.

RAVAGO BUILDING SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.3
Going concern

The war in Ukraine that started in early 2022 is still having an impact on a large number of businesses, due to rising costs, supply issues and ongoing concerns over the economic climate. However the directors believe that the company is well placed to minimise the impact. true

 

Management are continuously assessing the impact of the above on clients, suppliers and employees. Regular contact is taking place throughout the supply chain to minimise any disruption and further increases of costs. The company has organised itself to adjust its activities, working capital and costs in line with the actual business level in order to protect its cash flow. Actions have been taken in the past to enable the business to establish a strong financial platform, and this together with the current balance sheet strength positions the company well.

 

The company is part of a group as detailed in the ultimate controlling party note which has a strong liquidity, considerable headroom in its covenants and is very strongly capitalised by its shareholders enabling the group to support the company for at least the next 12 months if required. Working capital is closely monitored, especially to protect timely collection of debtors.

 

After considering the impact of the above, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided 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.

1.5
Intangible fixed assets - goodwill

Negative goodwill represents the difference between the cost of acquisition of a business and the fair value of the net assets acquired. It is initially recognised as a negative asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Negative goodwill is amortised to the profit and loss account over the period in which the associated tangible fixed assets are depreciated or sold. As the negative goodwill is attributable to freehold land and buildings, and freehold land is not depreciated, the annual amortisation charge is 5% of the freehold buildings element of the negative goodwill.

1.6
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
Buildings 20 years straight line
Plant and equipment
10 years straight line
Fixtures and fittings
10 years straight line
Computers
3 years straight line

Freehold land and assets in the course of construction are not depreciated.

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.

RAVAGO BUILDING SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.7
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).

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
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.

1.9
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

RAVAGO BUILDING SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, 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

All of the company's liabilities are basic financial liabilities.

Derecognition of financial liabilities

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

1.11
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.

RAVAGO BUILDING SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.12
Taxation

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

Current tax

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

Deferred tax

Deferred tax liabilities are recognised for all timing differences.

 

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.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
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.

1.16
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.

RAVAGO BUILDING SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

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

Impairment of trade debtors

At the end of the reporting period, management undertake an assessment of the recoverability of trade debtors based upon their knowledge of the customers, ageing of the balances outstanding and previous write off history. Where necessary, an impairment is recorded as a doubtful debt.

 

The actual level of debt collected may differ from the estimated level of recovery.

Impairment of stock

At the end of the reporting period, management undertake an assessment of stock, based upon their knowledge of the market and the movement of each stock item. Where necessary, an impairment is recognised in the profit and loss account.

 

The actual net realisable value may differ from the estimated level of recovery.

Business combination

In accordance with FRS102, assets acquired as part of a business combination have been recognised at their fair values at the date of acquisition. This was based on an assessment by management of the fair values.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful life of tangible fixed assets

The useful economic life and expected residual value of tangible fixed assets is assessed at the point of purchase. This is reviewed at the end of the reporting period, to determine whether the estimates are still appropriate.

Useful life of goodwill

The useful life of goodwill is assessed at the point of initial recognition, and is amortised on a systematic basis over its life.

RAVAGO BUILDING SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Attributable to the principal activities
29,371,381
26,264,946
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
27,784,379
24,919,688
Overseas
1,587,002
1,345,258
29,371,381
26,264,946
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
32,735
42,023
Fees payable to the company's auditor for the audit of the company's financial statements
20,575
18,700
Depreciation of owned tangible fixed assets
621,122
536,686
Loss on disposal of tangible fixed assets
17,292
-
Release of negative goodwill
(41,649)
(41,649)
Operating lease charges
85,622
70,616

 

5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Production
29
28
Sales
11
10
Administration
3
2
Total
43
40
RAVAGO BUILDING SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,104,509
1,970,715
Social security costs
216,185
196,961
Pension costs
261,276
225,069
2,581,970
2,392,745

No remuneration was paid to the directors in the current or previous year.

6
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
44,271
68,717
Other finance costs:
Other interest
22,302
10,908
66,573
79,625
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,082,491
513,859
Adjustments in respect of prior periods
(582)
57,838
Total current tax
1,081,909
571,697
Deferred tax
Origination and reversal of timing differences
42,294
111,340
Total tax charge
1,124,203
683,037
RAVAGO BUILDING SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Taxation
(Continued)
- 20 -

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
4,771,408
3,308,648
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
1,121,281
628,643
Tax effect of expenses that are not deductible in determining taxable profit
7,357
7,043
Adjustments in respect of prior years
(582)
57,838
Effect of change in corporation tax rate
4,204
(8,726)
Depreciation on assets not qualifying for tax allowances
1,890
13,706
Other permanent differences
(159)
(7,554)
Negative goodwill released not taxable
(9,788)
(7,913)
Taxation charge for the year
1,124,203
683,037

Factors affecting future tax and charges

In March 2021 the Chancellor confirmed, in the budget, an increase in the corporation tax rate from 19% to 25%. The Finance Bill 2021 had its third reading on 24 May 2021 and is now considered substantively enacted. The timing differences expected to reverse on or after 1 April 2023 have been accounted for at 25% and and therefore deferred tax has been provided for at 25% (2022: 25%).

8
Dividends
2023
2022
£
£
Final paid
2,195,634
2,458,592
RAVAGO BUILDING SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
9
Intangible fixed assets
Negative goodwill
£
Cost
At 1 January 2023 and 31 December 2023
(2,067,982)
Amortisation and impairment
At 1 January 2023
(166,596)
Amortisation charged for the year
(41,649)
At 31 December 2023
(208,245)
Carrying amount
At 31 December 2023
(1,859,737)
At 31 December 2022
(1,901,386)
10
Tangible fixed assets
Freehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
£
Cost
At 1 January 2023
2,737,220
826,739
4,485,571
382,671
85,008
8,517,209
Additions
-
0
684,233
257,427
12,818
-
0
954,478
Disposals
-
0
-
0
(47,234)
-
0
-
0
(47,234)
Transfers
-
0
(676,458)
676,458
-
0
-
0
-
0
At 31 December 2023
2,737,220
834,514
5,372,222
395,489
85,008
9,424,453
Depreciation and impairment
At 1 January 2023
286,561
-
0
1,095,376
149,942
83,125
1,615,004
Depreciation charged in the year
74,560
-
0
504,401
40,775
1,386
621,122
Eliminated in respect of disposals
-
0
-
0
(22,442)
-
0
-
0
(22,442)
At 31 December 2023
361,121
-
0
1,577,335
190,717
84,511
2,213,684
Carrying amount
At 31 December 2023
2,376,099
834,514
3,794,887
204,772
497
7,210,769
At 31 December 2022
2,450,659
826,739
3,390,195
232,729
1,883
6,902,205
RAVAGO BUILDING SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
11
Stocks
2023
2022
£
£
Raw materials and consumables
1,779,513
1,920,141
Finished goods and goods for resale
3,308,040
3,549,897
5,087,553
5,470,038
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,735,937
3,087,834
Amounts owed by group undertakings
548,208
-
0
Prepayments and accrued income
231,783
108,720
3,515,928
3,196,554
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,599,843
2,401,210
Corporation tax
912,491
492,371
Other taxation and social security
326,923
594,324
Other creditors
178,189
214,769
Accruals and deferred income
666,762
685,489
3,684,208
4,388,163
14
Creditors: amounts falling due after more than one year
2023
2022
£
£
Loans from group undertakings
-
0
531,158

The loan was repayable by 11 December 2024. Interest is payable at 2.4% plus 3 months LIBOR.

RAVAGO BUILDING SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
15
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
840,362
798,180
Land and buildings fair value adjustment
587,737
586,936
Short term timing differences
(5,453)
(4,764)
1,422,646
1,380,352
2023
Movements in the year:
£
Liability at 1 January 2023
1,380,352
Charge to profit or loss
42,294
Liability at 31 December 2023
1,422,646

As at the signing date of these financial statements, the company has not finalised its capital expenditure programme for the forthcoming year, and therefore an assessment as to the likely movement of the related timing differences cannot be made.

16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
261,276
225,069

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
RAVAGO BUILDING SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
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
78,643
64,663
Between two and five years
70,902
106,353
149,545
171,016
19
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
745,543
501,758
20
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
247,204
226,206
Other information

In accordance with FRS102 section 33.1A, transactions with other group undertakings owned 100% within the group have not been disclosed in these financial statements.

21
Ultimate controlling party

The company is a wholly owned subsidiary of Ravago Building Solutions SA, a company incorporated in Luxembourg.

 

The ultimate holding company is Ravago SA, a company incorporated in Luxembourg. Its registered office is 16 Rue Notre Dame, L-2240 Luxembourg. The smallest and largest group into which the company is consolidated is that of Ravago SA.

RAVAGO BUILDING SOLUTIONS UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
22
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
3,647,205
2,625,611
Adjustments for:
Taxation charged
1,124,203
683,037
Finance costs
66,573
79,625
Loss on disposal of tangible fixed assets
17,292
-
Amortisation and impairment of intangible assets
(41,649)
(41,649)
Depreciation and impairment of tangible fixed assets
621,122
536,686
Movements in working capital:
Decrease/(increase) in stocks
382,485
(276,616)
Increase in debtors
(319,374)
(204,167)
(Decrease)/increase in creditors
(1,124,075)
1,048,561
Cash generated from operations
4,373,782
4,451,088
23
Analysis of changes in net funds/(debt)
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
125,624
(28,350)
97,274
Borrowings excluding overdrafts
(531,158)
531,158
-
(405,534)
502,808
97,274
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