Company registration number 03582057 (England and Wales)
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
COMPANY INFORMATION
Directors
Mr C J Wilson
Mr C J Matson
Secretary
Mr C J Wilson
Company number
03582057
Registered office
11 Wigmore Street
London
W1U 1PE
Auditor
Elliotts Shah
4th Floor
167 Fleet Street
London
EC4A 2EA
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 31
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Principal activities

The principal activity of the group in the year under review was that of kitchen and bedroom furniture manufacturer and retailer.

Review of the business

The results for the year and financial position of the group are as shown in the annexed financial statements. The cash position remains strong with no borrowings and cash plus short term investments of £2.5m (2022: £3.8m).

 

Group turnover for the year was £18.41m (2022: £15.47m) which reflects an increase of 19.0%. This increase is mainly attributable to a higher volume of sales deliveries made in the year. The directors are pleased to report the Gross Profit was £6.56m (2022: £6.55m). The decrease in Gross Profit margin is due to high inflation on material costs. The directors remain confident of the group's future trading.

 

Strategy

The Group's strategy is to grow organically by increasing market share and profitability. Our organic growth will be built on:

 

- Increasing customer awareness of our brand through advertising, editorials, brochures, website and social media;

- Continuing to develop our products so we can further enhance customer choice and add value to our sales;

- Continuing to invest in our UK furniture factory;

- Maintaining, improving and increasing our network of showrooms;

- Appropriate training of staff.

 

The Group's strong cash position leaves the group well placed to carry out these objectives.

 

Going concern

The Group's cash reserves and no external debt leaves us well placed to adapt to the challenges and take advantage of opportunities to both safeguard and develop our business.

 

 

Principal risks and uncertainties

As with many businesses in our sector and of our size, the business environment and market in which the group operates continues to be challenging from its competitors and is influenced by the current economic conditions impacting on customers purchasing power and from the supply-chain issues that are affecting most businesses. The measures used by the the directors to minimise financial risk include the preparation of profit forecasts and regular monitoring of actual performance against these forecasts. The board is responsible for coordinating the group's risk management and focuses on actively securing the group's short to medium terms cash flows. The group seeks to manage cash flow risks to ensure sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely.

On behalf of the board

Mr C J Wilson
Director
11 September 2024
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
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.

Results and dividends

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

Ordinary dividends were paid amounting to £211,429. 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 C J Wilson
Mr C J Matson
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Research and development

The Group has expenditure of £0.20m (2022: £0.22m), which it has invested in the research and development of automation of its manufacturing processes of kitchen and bedroom furniture.

Auditor

The auditors, Elliotts Shah, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Statement of directors' responsibilities

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

 

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

 

 

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.

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.

ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr C J Wilson
Director
11 September 2024
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
- 4 -
Opinion

We have audited the financial statements of Roundhouse Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, 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 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 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.

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
- 5 -
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:

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.

We gained an understanding of the legal and regulatory framework applicable to the group and parent company and considered the risk of non-compliance to those laws and regulations, including fraud. These laws and regulations included but were not limited to:

 

- compliance with the Companies Act 2006;

- UK accounting standards;

 

We considered compliance with laws and regulations that could give rise to a material misstatement in the company's financial statements. Our tests included, but were not limited to:

 

- agreement of the financial statement disclosures to underlying supporting documentation;

- enquiries of management;

- testing of journal postings made during the year to identify potential management override of controls ; and

- review of meeting minutes throughout the period.

 

We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and discussed how and where these might occur and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
- 6 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

Nathalie Yip (Senior Statutory Auditor)
For and on behalf of Elliotts Shah
11 September 2024
Chartered Accountants
Statutory Auditor
4th Floor
167 Fleet Street
London
EC4A 2EA
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
18,412,557
15,474,655
Cost of sales
(11,849,755)
(8,929,256)
Gross profit
6,562,802
6,545,399
Administrative expenses
(6,414,076)
(5,540,008)
Other operating income
73,800
17,285
Operating profit
4
222,526
1,022,676
Interest receivable and similar income
8
223,845
(143,257)
Profit before taxation
446,371
879,419
Tax on profit
9
(152,629)
(142,759)
Profit for the financial year
21
293,742
736,660
Profit for the financial year is attributable to:
- Owners of the parent company
355,748
812,386
- Non-controlling interests
(62,006)
(75,726)
293,742
736,660
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
293,742
736,660
Other comprehensive income
-
-
Total comprehensive income for the year
293,742
736,660
Total comprehensive income for the year is attributable to:
- Owners of the parent company
355,748
812,386
- Non-controlling interests
(62,006)
(75,726)
293,742
736,660
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,622,629
2,269,816
Investments
12
2,060,382
1,850,052
4,683,011
4,119,868
Current assets
Stocks
14
1,226,687
1,587,721
Debtors
15
638,473
641,349
Cash at bank and in hand
472,885
1,757,146
2,338,045
3,986,216
Creditors: amounts falling due within one year
16
(5,047,690)
(6,315,395)
Net current liabilities
(2,709,645)
(2,329,179)
Total assets less current liabilities
1,973,366
1,790,689
Provisions for liabilities
Deferred tax liability
17
211,589
111,225
(211,589)
(111,225)
Net assets
1,761,777
1,679,464
Capital and reserves
Called up share capital
19
594
594
Profit and loss reserves
21
1,862,247
1,717,928
Equity attributable to owners of the parent company
1,862,841
1,718,522
Non-controlling interests
(101,064)
(39,058)
1,761,777
1,679,464

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 11 September 2024 and are signed on its behalf by:
11 September 2024
Mr C J Wilson
Mr C J Matson
Director
Director
Company registration number 03582057 (England and Wales)
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
650,000
650,000
Investments
12
3,150,482
2,940,152
3,800,482
3,590,152
Current assets
Debtors
15
691,744
486,675
Creditors: amounts falling due within one year
16
(4,337,960)
(3,931,782)
Net current liabilities
(3,646,216)
(3,445,107)
Total assets less current liabilities
154,266
145,045
Provisions for liabilities
Deferred tax liability
17
80,061
(6,588)
(80,061)
6,588
Net assets
74,205
151,633
Capital and reserves
Called up share capital
19
594
594
Profit and loss reserves
21
73,611
151,039
Total equity
74,205
151,633

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 £134,001 (2022 - £1,800,558 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 11 September 2024 and are signed on its behalf by:
11 September 2024
Mr C J Wilson
Mr C J Matson
Director
Director
Company registration number 03582057 (England and Wales)
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
767
2,811,533
2,812,300
36,668
2,848,968
Year ended 31 December 2022:
Profit and total comprehensive income
-
812,386
812,386
(75,726)
736,660
Dividends
10
-
(538,773)
(538,773)
-
(538,773)
Own shares acquired
-
(1,367,218)
(1,367,218)
-
(1,367,218)
Reduction of shares
19
(173)
-
(173)
-
(173)
Balance at 31 December 2022
594
1,717,928
1,718,522
(39,058)
1,679,464
Year ended 31 December 2023:
Profit and total comprehensive income
-
355,748
355,748
(62,006)
293,742
Dividends
10
-
(211,429)
(211,429)
-
(211,429)
Balance at 31 December 2023
594
1,862,247
1,862,841
(101,064)
1,761,777
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
767
256,472
257,239
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
1,800,558
1,800,558
Dividends
10
-
(538,773)
(538,773)
Own shares acquired
-
(1,367,218)
(1,367,218)
Reduction of shares
19
(173)
-
(173)
Balance at 31 December 2022
594
151,039
151,633
Year ended 31 December 2023:
Profit and total comprehensive income
-
134,001
134,001
Dividends
10
-
(211,429)
(211,429)
Balance at 31 December 2023
594
73,611
74,205
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
26
(184,605)
1,668,170
Income taxes paid
(105,760)
(193,611)
Net cash (outflow)/inflow from operating activities
(290,365)
1,474,559
Investing activities
Purchase of tangible fixed assets
(795,035)
(740,907)
Proceeds from disposal of tangible fixed assets
-
750
Purchase of investments
-
(1,000,000)
Repayment of loans
(947)
(353)
Interest received
13,515
6,691
Net cash used in investing activities
(782,467)
(1,733,819)
Financing activities
Redemption of shares
-
0
(173)
Share buyback
-
0
(1,367,218)
Dividends paid to equity shareholders
(211,429)
(538,773)
Net cash used in financing activities
(211,429)
(1,906,164)
Net decrease in cash and cash equivalents
(1,284,261)
(2,165,424)
Cash and cash equivalents at beginning of year
1,757,146
3,922,570
Cash and cash equivalents at end of year
472,885
1,757,146

The notes on pages 14 to 31 form part of these financial statements.

ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Roundhouse Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Roundhouse Holdings Limited and all of its subsidiaries.

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 as modified by the revaluation of certain assets.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

 

 

 

 

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.

ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Roundhouse Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

A review of the business activity of the Group and the Company are covered in the Strategic Report.

 

Included within the current liabilities were deposits received on planned deliveries of kitchens subsequent to the balance sheet date of £2,717,528 (2022 - £4,018,313). After taking into account these deposits, the Group's financial projections, available borrowing facilities and other relevant financial matters, the directors consider that the Group will be able to meet its liabilities as they fall due and are satisfied that on the date of approving the financial statements, there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. For this reason, the Directors consider the going concern basis to be appropriate.

1.5
Turnover

Turnover represents the value of design services, manufactured units and installation services including appliances, on the basis of completion of delivery excluding VAT and discounts. Turnover also recognises a proportionate value of the total contract in relation to design services provided.

 

Turnover from long term contracts are recognised when materials are delivered to site and for installation charges when work has been completed. The expected profit is spread over the expected duration of site work.

ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

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
None
Leasehold land and buildings
10% on cost
Plant and equipment
15% on cost / 25% on cost
Fixtures and fittings
25% on cost
Computers
25% on cost
Motor vehicles
25% on cost

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

Plant and equipment is split between assets used in manufacturing which are depreciated at a rate of 15% per annum on cost and assets used in technical department which are depreciated at a rate of 25% per annum on cost.

 

Included in fixtures, fittings and equipment are showroom displays which are depreciated at a rate of 25% per annum on cost to a residual value of 30% of the original cost of the asset.

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.

ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

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

 

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.

ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.10
Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

 

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing 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.

1.11
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.

ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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.

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.

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.

1.14
Taxation

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

ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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
Retirement benefits

The group accounts for pension costs on the basis of contributions paid in the course of the period to a self invested personal pension scheme for its directors and certain key executives. It also operates a defined employee pension scheme under its auto-enrolment obligations.

1.16
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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.17
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.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Delivered sales
17,845,224
14,767,110
Design Services
567,333
707,545
18,412,557
15,474,655
2023
2022
£
£
Other revenue
Grants received
-
(2,965)
Rents received
16,200
20,250
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Research and development costs
200,028
218,214
Government grants
-
2,965
Depreciation of owned tangible fixed assets
442,222
339,750
Profit on disposal of tangible fixed assets
-
(750)
Operating lease charges
617,439
432,334
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
5,000
7,600
Audit of the financial statements of the company's subsidiaries
25,500
25,450
30,500
33,050
For other services
All other non-audit services
38,000
32,850
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Auditor's remuneration
(Continued)
- 22 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Marketing and sales
23
22
-
-
Office and management
39
39
3
4
Manufacturing
39
38
-
-
Total
101
99
3
4

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,998,664
3,587,982
130,929
77,186
Social security costs
420,200
397,753
14,510
6,206
Pension costs
71,869
61,088
1,220
932
4,490,733
4,046,823
146,659
84,324
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
117,079
54,000
Company pension contributions to defined contribution schemes
1,220
772
118,299
54,772
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
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
13,515
6,691
Other income from investments
Gains/(losses) on financial instruments measured at fair value through profit or loss
210,330
(149,948)
Total income
223,845
(143,257)
2023
2022
Investment income includes the following:
£
£
Increase/(decrease) in value of investments
210,330
(149,948)
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
48,835
105,760
Adjustments in respect of prior periods
3,429
-
0
Total current tax
52,264
105,760
Deferred tax
Origination and reversal of timing differences
100,365
36,999
Total tax charge
152,629
142,759
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
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
446,371
879,419
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
111,593
167,090
Tax effect of expenses that are not deductible in determining taxable profit
15,332
33,114
Tax effect of income not taxable in determining taxable profit
(52,583)
(142)
Effect of change in corporation tax rate
(3,456)
-
Under/(over) provided in prior years
3,429
(2,608)
Depreciation in excess of capital allowances
26,274
(37,794)
Deferred taxation
100,365
36,998
Research and development expenditure claim
(48,325)
(53,899)
Taxation charge
152,629
142,759
10
Dividends
2023
2022
2023
2022
Recognised as distributions to equity holders:
Per share
Per share
Total
Total
£
£
£
£
Ordinary
Interim paid
355.94
907.03
211,429
538,773
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
650,000
1,654,261
1,601,064
847,646
52,022
440,694
5,245,687
Additions
-
0
487,339
98,160
204,370
5,166
-
0
795,035
Disposals
-
0
-
0
(1,380)
-
0
-
0
-
0
(1,380)
At 31 December 2023
650,000
2,141,600
1,697,844
1,052,016
57,188
440,694
6,039,342
Depreciation and impairment
At 1 January 2023
-
0
718,582
1,395,977
536,614
43,431
281,267
2,975,871
Depreciation charged in the year
-
0
160,315
83,780
138,189
4,986
54,952
442,222
Eliminated in respect of disposals
-
0
-
0
(1,380)
-
0
-
0
-
0
(1,380)
At 31 December 2023
-
0
878,897
1,478,377
674,803
48,417
336,219
3,416,713
Carrying amount
At 31 December 2023
650,000
1,262,703
219,467
377,213
8,771
104,475
2,622,629
At 31 December 2022
650,000
935,679
205,087
311,032
8,591
159,427
2,269,816
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
11
Tangible fixed assets
Company
Freehold land and buildings
£
Cost
At 1 January 2023 and 31 December 2023
650,000
Depreciation and impairment
At 1 January 2023 and 31 December 2023
-
0
Carrying amount
At 31 December 2023
650,000
At 31 December 2022
650,000

The freehold property was valued on an open market basis by an independent valuer in a prior year. At the balance sheet date, the Directors have carried out a valuation with no change to the value of the freehold property of £650,000. The historical cost of the property was £526,404.

Group
Company
2023
2022
2023
2022
£
£
£
£
Freehold
1,300,000
1,300,000
650,000
650,000
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
1,090,100
1,090,100
Other investments
2,060,382
1,850,052
2,060,382
1,850,052
2,060,382
1,850,052
3,150,482
2,940,152
Fixed asset investments revalued

Other investments are revalued in the year to their market value at the balance sheet date.

Fixed asset investments not carried at market value

Investments in subsidiaries are measured at historic cost less provision for impairment.

ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Group
Other
£
Cost or valuation
At 1 January 2023
1,850,052
Valuation changes
210,330
At 31 December 2023
2,060,382
Carrying amount
At 31 December 2023
2,060,382
At 31 December 2022
1,850,052
Movements in fixed asset investments
Company
Shares in subsidiaries
Other
Total
£
£
£
Cost or valuation
At 1 January 2023
1,090,100
1,850,052
2,940,152
Valuation changes
-
210,330
210,330
At 31 December 2023
1,090,100
2,060,382
3,150,482
Carrying amount
At 31 December 2023
1,090,100
2,060,382
3,150,482
At 31 December 2022
1,090,100
1,850,052
2,940,152
13
Subsidiaries

At the balance sheet date, Roundhouse Holdings Limited held the following direct and indirect interests in equity capital of the undertakings indicated below:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Roundhouse Design Limited
11 Wigmore Street, London, W1U 1PE
Ordinary Shares
100.00
Roundhouse Work Limited
11 Wigmore Street, London, W1U 1PE
Ordinary Shares
100.00
Roundhouse (Nightingale Lane) Limited
11 Wigmore Street, London, W1U 1PE
Ordinary Shares
100.00
Roundhouse (Cambridge) Limited
11 Wigmore Street, London, W1U 1PE
Ordinary Shares
75.00
Roundhouse (Cheltenham) Limited
11 Wigmore Street, London, W1U 1PE
Ordinary Shares
75.00
RH (Wimbledon) Limited
11 Wigmore Street, London, W1U 1PE
Ordinary Shares
100.00

In 2024, shares were issued to management of RH (Wimbledon) Ltd, which reduced the company's shareholding in the subsidiary to 85%.

ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
358,968
279,404
-
-
Work in progress
139,662
358,769
-
-
Finished goods and goods for resale
728,057
949,548
-
0
-
0
1,226,687
1,587,721
-
-
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
92,245
135,377
-
0
-
0
Amounts owed by group undertakings
-
-
683,062
484,663
Other debtors
6,193
4,767
8,682
2,012
Prepayments and accrued income
540,035
501,205
-
0
-
0
638,473
641,349
691,744
486,675
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Payments received on account
2,717,528
4,018,313
-
0
-
0
Trade creditors
457,993
562,404
-
0
1,978
Amounts owed to group undertakings
-
0
-
0
4,299,208
3,850,063
Corporation tax payable
48,829
102,324
3,845
43,277
Other taxation and social security
389,020
422,052
5,298
8,677
Other creditors
50,275
48,256
303
481
Accruals and deferred income
1,384,045
1,162,046
29,306
27,306
5,047,690
6,315,395
4,337,960
3,931,782
ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
17
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
131,528
117,813
Revaluations
80,061
(6,588)
211,589
111,225
Liabilities
Liabilities
2023
2022
Company
£
£
Revaluations
80,061
(6,588)
Group
Company
2023
2023
Movements in the year:
£
£
Liability/(Asset) at 1 January 2023
111,225
(6,588)
Charge to profit or loss
100,364
86,649
Liability at 31 December 2023
211,589
80,061
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
71,869
61,088

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.

The group contributes to a self invested personal pension scheme for its directors and certain key employees and also operates a defined employee pension scheme under its auto - enrolment obligations. The contributions made during the period for the directors were £1,220 (2022: £772) and employees £70,649 (2022: £59,770).

 

In the year, the Company has made pensions contributions of £185,000 (2022: £nil) to a personal pension scheme for the retirement benefit of the Directors.

ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
19
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
59,400
59,400
594
594
20
Non-controlling interests
Non-controlling interests relate to 25% shareholding in:
- Roundhouse (Cambridge) Limited
- Roundhouse (Cheltenham) Limited
21
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
1,717,928
2,811,533
151,039
256,472
Profit for the year
355,748
812,386
134,001
1,800,558
Dividends
(211,429)
(538,773)
(211,429)
(538,773)
Own shares acquired
-
(1,367,218)
-
(1,367,218)
At the end of the year
1,862,247
1,717,928
73,611
151,039
22
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
115,320
115,320
-
-
Between two and five years
1,030,000
1,395,000
-
-
In over five years
7,296,800
8,165,800
-
-
8,442,120
9,676,120
-
-

 

 

 

 

 

ROUNDHOUSE HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
23
Related party transactions

Included in creditors are balances due at the year end from fellow group undertakings that are not wholly owned subsidiaries which have common directorship:

- Roundhouse (Cambridge) Limited - £125,000 (2022: £125,000)

- Roundhouse (Cheltenham) Limited - £82,000 (2022: £100,000).

24
Directors' transactions

At the year end, the group had £1,262 (2022: £353) amounts due from the Craig Matson and £39 (2022: £nil) amounts due from the Chris Wilson. These loan amounts were repaid after the year end.

25
Controlling party

The ultimate controlling party is C J Matson by virtue of his beneficial ownership of the issued share capital of the company.

26
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Profit for the year after tax
293,742
736,662
Adjustments for:
Taxation charged
152,629
142,759
Investment income
(223,845)
143,257
Gain on disposal of tangible fixed assets
-
(750)
Depreciation and impairment of tangible fixed assets
442,222
339,750
Movements in working capital:
Decrease/(increase) in stocks
361,034
(858,150)
Increase in debtors
(6,267)
(357,109)
(Decrease)/increase in creditors
(1,204,120)
1,521,751
Cash (absorbed by)/generated from operations
(184,605)
1,668,170
27
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,757,146
(1,284,261)
472,885
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