RONALD PHILLIPS LIMITED
Company registration number 00511581 (England and Wales)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
RONALD PHILLIPS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
RONALD PHILLIPS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
4
93,400
163,100
Tangible assets
5
43,012
50,262
Investments
6
1,719
136,412
215,081
Current assets
Stocks
13,333,193
12,389,841
Debtors
7
1,483,046
1,613,495
Cash at bank and in hand
649,577
357,718
15,465,816
14,361,054
Creditors: amounts falling due within one year
8
(4,361,492)
(3,070,747)
Net current assets
11,104,324
11,290,307
Total assets less current liabilities
11,240,736
11,505,388
Creditors: amounts falling due after more than one year
9
(870,167)
(1,149,998)
Net assets
10,370,569
10,355,390
Capital and reserves
Called up share capital
3,999
3,999
Capital redemption reserve
1,334
1,334
Profit and loss reserves
10,365,236
10,350,057
Total equity
10,370,569
10,355,390
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 6 June 2024
Mr S A Phillips
Director
Company registration number 00511581 (England and Wales)
RONALD PHILLIPS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
3,999
1,334
10,031,668
10,037,001
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
542,033
542,033
Dividends
-
-
(223,644)
(223,644)
Balance at 31 December 2022
3,999
1,334
10,350,057
10,355,390
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
131,819
131,819
Dividends
-
-
(116,640)
(116,640)
Balance at 31 December 2023
3,999
1,334
10,365,236
10,370,569
RONALD PHILLIPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Ronald Phillips Limited is a private company limited by shares incorporated in England and Wales. The registered office is 26 Bruton Street, London, W1J 6QL.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, The principal accounting policies adopted are set out below.
1.2
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.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Leasehold
over 25 years
Fixtures, fittings & equipment
over 4 years
Motor vehicles
25% reducing balance basis
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.
RONALD PHILLIPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
RONALD PHILLIPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
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 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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
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.
2
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
17,250
17,500
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
16
15
RONALD PHILLIPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
4
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
697,000
Amortisation and impairment
At 1 January 2023
533,900
Amortisation charged for the year
69,700
At 31 December 2023
603,600
Carrying amount
At 31 December 2023
93,400
At 31 December 2022
163,100
5
Tangible fixed assets
Land and buildings Leasehold
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
417,844
337,178
161,704
916,726
Additions
7,184
7,184
At 31 December 2023
417,844
344,362
161,704
923,910
Depreciation and impairment
At 1 January 2023
417,844
310,070
138,550
866,464
Depreciation charged in the year
8,645
5,789
14,434
At 31 December 2023
417,844
318,715
144,339
880,898
Carrying amount
At 31 December 2023
25,647
17,365
43,012
At 31 December 2022
27,108
23,154
50,262
6
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
1,719
Fixed asset investments not carried at market value
The shareholding in Masterpiece London Limited represented 9% of the issued share capital.
RONALD PHILLIPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Fixed asset investments
(Continued)
- 7 -
Movements in fixed asset investments
Shares in joint ventures
£
Cost or valuation
At 1 January 2023
1,719
Disposals
(1,719)
At 31 December 2023
-
Carrying amount
At 31 December 2023
-
At 31 December 2022
1,719
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
963,887
1,198,491
Other debtors
519,159
415,004
1,483,046
1,613,495
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
403,406
249,642
Trade creditors
2,828,311
1,286,147
Taxation and social security
249,244
452,337
Other creditors
880,531
1,082,621
4,361,492
3,070,747
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
595,252
779,768
Other creditors
274,915
370,230
870,167
1,149,998
RONALD PHILLIPS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Creditors: amounts falling due after more than one year
(Continued)
- 8 -
The bank borrowings are secured by a fixed and floating charge over all the present fixed and floating assets of the company in favour of the company's bankers, an assignment over the director's life policy and a personal guarantee from the director.
There is a fixed and floating Mortgage Debenture provided by Ronald Phillips Limited dated 02 August 2023 in the Bank's standard form.
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Elwyn Turner FCA
Statutory Auditor:
Dyke Yaxley Limited
11
Financial commitments, guarantees and contingent liabilities
Ronald Phillips Limited has given a counter indemnity totalling £500,000 in respect of guarantees and bonds given by the bank in favour of HM Customs and Excise.
12
Operating lease commitments
Lessee
Operating lease payments represent rentals payable by the company for certain of its properties. Leases are negotiated for an average term of 10 years and rentals are fixed for an average of 5 years with an option to extend at the prevailing market rate.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
996,000
291,500
13
Related party transactions
During the year loans with related parties are held in other creditors to the balance in aggregate of £500,199 (2022: £664,199)
14
Directors' transactions
During the year dividends of £36,640 (2022: £55,644) were paid to S A Phillips. Further dividends were paid of £80,000 (2022: £168,000) to the Phillips Settlement Trust. This is a trust in favour of the children of Mr S A Phillips.
The company's bankers have an assignment over a Life Assurance Policy with a death benefit of not less than £250,000 on the life of Mr S A Phillips.
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