Company registration number 00354544 (England and Wales)
T N ROBINSON LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
T N ROBINSON LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Statement of income and retained earnings
11
Balance sheet
12
Statement of cash flows
13
Notes to the financial statements
14 - 26
T N ROBINSON LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr C Drake
Mr I Gregory
Ms M Anderson
Ms P Yates
Mr S Thwaite
Secretary
Mr I Gregory
Company number
00354544
Registered office
94-98 Daw Bank
Stockport
Cheshire
UK
SK3 0EH
Auditor
Xeinadin Audit Limited
Riverside House, Kings Reach Business Park
Yew Street
Stockport
Cheshire
United Kingdom
SK4 2HD
T N ROBINSON LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
The Directors are pleased to record a pre-tax profit for the year of £192,652 (2023: £182,874).
The Company's key financial and other performance indicators during the year were as follows:
Despite the acquisition of a new branch in Knutsford at the end of May 2023, turnover for the year remained flat in a continuingly competitive marketplace as the company again refrained where possible from chasing sales with high credit risk and/or low margins. This allowed for an increase in gross margins for a second consecutive year.
The cautious approach to sales was rewarded with a significant reduction in the bad debt charge for the year which fell to £27,881 from over £100,000 in the previous year.
There was however, significant inflationary pressure on wages which grew by over 6% despite static staff numbers. Additionally, energy costs rose substantially as previously contracted rates came to an end at a number of sites.
Other significant overhead cost increases were incurred in insurance, depreciation (as the first full year’s impact of the previous year’s investment in the new IT system was felt) and in interest payable (again reflecting the first full year of the higher levels of interest rates).
In light of these cost increases, the directors are satisfied with the result for the year and feel that the company is in a healthy position looking forward.
T N ROBINSON LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Principal risks and uncertainties
Risk of Bad Debts
Potential exposure to bad debt remains an on-going issue. The company continues to mitigate this risk via credit insurance where available. The nature of the industry however, means that occasional risks need to be taken in supplying customers outside of insured limits. No significant bad debts were incurred during the financial year and none have arisen in the current financial year up to the date of signing these accounts.
Availability of Finance
The company is reliant upon the provision of adequate finance facilities from its bankers.
During the course of the current, or any previous, arrangements there has been no breach of any provisions or covenants to suggest that facilities will not be renewed on an on-going basis. The headroom within the existing facility is felt to be more than sufficient to meet the company’s requirements for the foreseeable future and the company’s relationship with its finance providers is very strong.
Wage Inflation
With staff costs being by far the largest overhead of the company, continued wage inflation has a proportionate impact on the bottom line profit. Recent reductions in headline inflation rates will hopefully reduce this risk going forward.
Future Developments
The company has no immediate plans to further develop its branch network but is always keen to review any acquisition or growth opportunities that may arise.
The company’s intention is that the IT infrastructure will be further developed to improve the on-line aspects of its B2B offering whilst at the same time providing the opportunity to enhance its B2C platform.
Mr I Gregory
Director and secretary
20 September 2024
T N ROBINSON LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of wholesale supply of electrical goods and appliances.
Results and dividends
The Directors are pleased to record a pre-tax profit for the year of £192,652 (2023: £182,874).
The results for the year are set out on page 11.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr M Drake
(Deceased 23 April 2024)
Mr C Drake
Mr I Gregory
Ms M Anderson
Ms P Yates
Mr S Thwaite
Financial instruments
Objectives and policies
The company holds or issues financial instruments in order to achieve three main objectives, being:
i) to finance its operations;
ii) to manage its exposure to interest, credit and liquidity risks arising from its operations and from its sources of finance; and
iii) for trading purposes.
In addition various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company's operations.
Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below.
Liquidity risk
Working capital and liquidity is managed as part of day to day business routines such as the company has no significant concentrations of liquidity risk. Working capital facilities like the invoice financing allows to maintain a good level of liquid funds.
Interest rate risk
The company manages the interest rate risk by agreeing terms of finance with hire purchase providers in advance and also managing the invoice financing facility so as to not draw down unused amounts.
Credit risk
The company monitors credit risk closely and considers that its current policies of credit checks and credit insurance meets its objectives of managing exposure to credit risk.
The company has no significant concentrations of credit risk. Amounts shown in the balance sheet best represent the maximum credit risk exposure in the event other parties fail to perform their obligations under financial instruments.
T N ROBINSON LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Auditor
In accordance with the company's articles, a resolution proposing that Xeinadin Audit Limited be reappointed as auditor of the company will be put at a General Meeting.
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.
Going concern
The financial statements have been prepared on a going concern basis.
On behalf of the board
Mr C Drake
Mr I Gregory
Director
Director
20 September 2024
T N ROBINSON LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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.
T N ROBINSON LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF T N ROBINSON LIMITED
- 7 -
Opinion
We have audited the financial statements of T N Robinson Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of income and retained earnings, the balance sheet, 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:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
T N ROBINSON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF T N ROBINSON LIMITED
- 8 -
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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.
T N ROBINSON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF T N ROBINSON LIMITED
- 9 -
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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement,
including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators, and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
T N ROBINSON LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF T N ROBINSON LIMITED
- 10 -
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.
Philip Jones BA Hons (FCCA) (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Limited
Statutory Auditor
Riverside House, Kings Reach Business Park
Yew Street
Stockport
Cheshire
SK4 2HD
United Kingdom
20 September 2024
T N ROBINSON LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
16,486,502
16,767,683
Cost of sales
(11,955,447)
(12,430,269)
Gross profit
4,531,055
4,337,414
Distribution costs
(1,943,800)
(1,826,813)
Administrative expenses
(2,346,467)
(2,336,012)
Other operating income
68,500
67,500
Operating profit
4
309,288
242,089
Interest receivable and similar income
8
404
1,474
Interest payable and similar expenses
9
(117,040)
(60,689)
Profit before taxation
192,652
182,874
Tax on profit
10
(77,561)
(35,519)
Profit for the financial year
115,091
147,355
Retained earnings brought forward
2,906,409
2,804,050
Dividends
11
(44,996)
Retained earnings carried forward
3,021,500
2,906,409
The profit and loss account has been prepared on the basis that all operations are continuing operations.
T N ROBINSON LIMITED
BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,665,876
1,610,014
Investments
14
5,050
5,050
1,670,926
1,615,064
Current assets
Stocks
15
2,737,665
2,911,393
Debtors
16
3,403,689
3,199,400
Cash at bank and in hand
60,540
28,299
6,201,894
6,139,092
Creditors: amounts falling due within one year
17
(4,303,967)
(4,381,568)
Net current assets
1,897,927
1,757,524
Total assets less current liabilities
3,568,853
3,372,588
Creditors: amounts falling due after more than one year
18
(306,964)
(266,699)
Provisions for liabilities
Deferred tax liability
20
105,389
64,480
(105,389)
(64,480)
Net assets
3,156,500
3,041,409
Capital and reserves
Called up share capital
22
135,000
135,000
Profit and loss reserves
3,021,500
2,906,409
Total equity
3,156,500
3,041,409
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 20 September 2024 and are signed on its behalf by:
Mr C Drake
Mr I Gregory
Director
Director
Company registration number 00354544 (England and Wales)
T N ROBINSON LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
637,125
(92,355)
Interest paid
(117,040)
(60,689)
Income taxes paid
(15,228)
(29,936)
Net cash inflow/(outflow) from operating activities
504,857
(182,980)
Investing activities
Purchase of tangible fixed assets
(338,925)
(270,481)
Proceeds from disposal of tangible fixed assets
73,899
500
Interest received
404
1,474
Net cash used in investing activities
(264,622)
(268,507)
Financing activities
Repayment of borrowings
(40,000)
(40,000)
Payment of finance leases obligations
96,540
12,356
Dividends paid
(44,996)
Net cash generated from/(used in) financing activities
56,540
(72,640)
Net increase/(decrease) in cash and cash equivalents
296,775
(524,127)
Cash and cash equivalents at beginning of year
(1,217,385)
(693,258)
Cash and cash equivalents at end of year
(920,610)
(1,217,385)
Relating to:
Cash at bank and in hand
60,540
28,299
Bank overdrafts included in creditors payable within one year
(981,150)
(1,245,684)
T N ROBINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information
T N Robinson Limited is a private company limited by shares incorporated in England and Wales. The registered office is 94-98 Daw Bank, Stockport, Cheshire, UK, SK3 0EH.
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 £.
1.2
Going concern
Atruet 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.
In concluding the company is a going concern, the directors have made the following considerations:
The directors have reviewed a 2 year cashflow forecast and statement of profit and loss forecast for a period ending 31st March 2026, which was prepared by management. The results of the forecasts led management to conclude the company could continue to exist for a period of at least 12 months from the date of the audit report.
1.3
Turnover
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
1.4
Intangible fixed assets - goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
1.5
Amortisation
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
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.
T N ROBINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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
2% straight line
Leasehold land and buildings
Over the duration of the lease
Leasehold improvements
Over the duration of the lease
Fixtures and fittings
10-25% straight line
Computer equipment
10-25% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Borrowing costs
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the average method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
1.9
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.
1.10
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.
T N ROBINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
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.
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, 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.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss,except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
T N ROBINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.12
Retirement benefits
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
1.14
Foreign exchange
The functional currency of the company is Sterling. Transactions in foreign currencies are recorded at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the closing rates at the balance sheet date. All exchange differences are included in the income statement.
1.15
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
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.
There are no significant estimates.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
T N ROBINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 18 -
2024
2023
£
£
Turnover analysed by geographical market
UK
16,486,502
16,767,683
2024
2023
£
£
Other revenue
Interest income
404
1,474
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
12,400
11,500
Depreciation of owned tangible fixed assets
226,591
169,129
(Profit)/loss on disposal of tangible fixed assets
(17,427)
1,053
Operating lease charges
297,688
262,492
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
12,400
11,500
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration and support
25
24
Sales, marketing and distribution
58
54
Other departments
-
5
Total
83
83
T N ROBINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Employees
(Continued)
- 19 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,382,189
2,219,562
Social security costs
228,762
227,035
Pension costs
89,194
79,368
2,700,145
2,525,965
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
277,521
240,144
Company pension contributions to defined contribution schemes
32,927
25,567
310,448
265,711
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
108,888
98,015
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
404
1,474
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
404
1,474
T N ROBINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
9,813
9,238
Interest on invoice finance arrangements
97,230
46,920
Other interest on financial liabilities
1,579
882
108,622
57,040
Other finance costs:
Interest on finance leases and hire purchase contracts
8,418
3,649
117,040
60,689
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
36,652
15,228
Deferred tax
Origination and reversal of timing differences
40,909
20,291
Total tax charge
77,561
35,519
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:
2024
2023
£
£
Profit before taxation
192,652
182,874
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
48,163
34,746
Tax effect of expenses that are not deductible in determining taxable profit
3,624
3,516
Permanent capital allowances in excess of depreciation
(15,135)
(23,034)
UK deferred tax movement
40,909
20,291
Taxation charge for the year
77,561
35,519
In the Spring Budget 2021, the Government announced that from 1 April 2023 the corporation tax rate would increase to 25%. This new law was substantively enacted on 24 May 2021. Deferred tax balances have been remeasured to either 19% or 25% depending on when the Directors expect these timing differences to reverse. The impact of the change in tax rate has been recognised in tax expense in profit or loss, except to the extent that it relates to items previously recognised outside profit or loss. For the company, such items include, in particular, remeasurements of post-employment benefit liabilities and the expected tax deduction in excess of the recognised expense for equity settled share-based payments.
T N ROBINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
11
Dividends
2024
2023
£
£
Final paid
44,996
12
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 April 2023
643,383
1,156,968
108,250
611,331
567,905
299,223
3,387,060
Additions
1,650
14,628
27,010
75,347
220,290
338,925
Disposals
(2,268)
(45,189)
(102,776)
(150,233)
At 31 March 2024
645,033
1,156,968
122,878
636,073
598,063
416,737
3,575,752
Depreciation and impairment
At 1 April 2023
285,499
414,041
91,341
533,436
293,203
159,526
1,777,046
Depreciation charged in the year
13,137
24,593
7,424
24,792
74,199
82,446
226,591
Eliminated in respect of disposals
(1,631)
(45,105)
(47,025)
(93,761)
At 31 March 2024
298,636
438,634
98,765
556,597
322,297
194,947
1,909,876
Carrying amount
At 31 March 2024
346,397
718,334
24,113
79,476
275,766
221,790
1,665,876
At 31 March 2023
357,884
742,927
16,909
77,895
274,702
139,697
1,610,014
Included within the net book value of motor vehicles above is £204,232 in respect of assets held under hire purchase contracts (2023: £93,971). Depreciation for the year on these assets was £52,739 (2023: £43,358).
13
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
T N Robinson (Crewe) Limited
94-98 Daw Bank, Stockport, Cheshire, SK3 0EH
Dormant company
Ordinary
100.00
T N ROBINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Subsidiaries
(Continued)
- 22 -
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
T N Robinson (Crewe) Limited
1,050
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
1,050
1,050
Other investments
4,000
4,000
5,050
5,050
15
Stocks
2024
2023
£
£
Raw materials and consumables
2,737,665
2,911,393
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,140,215
2,983,257
Amounts owed by group undertakings
106,600
87,253
Other debtors
13,596
11,390
Prepayments and accrued income
143,278
117,500
3,403,689
3,199,400
T N ROBINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
19
1,021,150
1,285,684
Obligations under finance leases
53,238
36,963
Trade creditors
2,935,920
2,795,783
Amounts owed to group undertakings
1,050
1,050
Corporation tax
36,651
15,227
Other taxation and social security
169,653
176,414
Other creditors
17,684
19,519
Accruals and deferred income
68,621
50,928
4,303,967
4,381,568
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
121,964
41,699
Other borrowings
19
185,000
225,000
306,964
266,699
19
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
981,150
1,245,684
Preference shares
135,000
135,000
Hire Purchase and finance lease liabilities
175,202
78,662
Other loans
90,000
130,000
1,381,352
1,589,346
Payable within one year
1,074,388
1,322,647
Payable after one year
306,964
266,699
The drawdown on invoice discounting facility is secured by way of an all assets debenture, an unlimited corporate guarantee executed by T N Robinson (Holdings) Limited and a limited personal guarantee executed by the directors.
Obligations under finance lease and hire purchase contracts are secured on the assets concerned.
T N ROBINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
105,389
64,480
2024
Movements in the year:
£
Liability at 1 April 2023
64,480
Charge to profit or loss
40,909
Liability at 31 March 2024
105,389
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
89,194
79,368
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.
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
135,000
135,000
135,000
135,000
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
135,000
135,000
135,000
135,000
Preference shares classified as liabilities
135,000
135,000
T N ROBINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
22
Share capital
(Continued)
- 25 -
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions:
The ordinary shares have full voting rights.
Preference shares have the following rights, preferences and restrictions:
The shares are non voting, redeemable at the company's discretion with a 3 month notice period and hold preferential ranking re any distributions.
23
Operating lease commitments
Lessee
The total of future minimum lease payments is as follows:
2024
2023
£
£
Within one year
35,128
56,453
Between two and five years
231,966
220,936
In over five years
60,300
24,550
327,394
301,939
24
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
2024
2023
Amounts due to related parties
£
£
1,050
1,050
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
106,600
87,253
Other information
The amounts due to and from related parties are interest free and repayable on demand.
25
Ultimate controlling party
The company's immediate parent is T N Robinson (Holdings) Limited.
The ultimate controlling party is Mr C Drake.
T N ROBINSON LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
26
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
115,091
147,355
Adjustments for:
Taxation charged
77,561
35,519
Finance costs
117,040
60,689
Investment income
(404)
(1,474)
(Gain)/loss on disposal of tangible fixed assets
(17,427)
1,053
Depreciation and impairment of tangible fixed assets
226,591
169,129
Movements in working capital:
Decrease/(increase) in stocks
173,728
(228,544)
(Increase)/decrease in debtors
(204,289)
191,990
Increase/(decrease) in creditors
149,234
(468,072)
Cash generated from/(absorbed by) operations
637,125
(92,355)
27
Analysis of changes in net debt
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
28,299
32,241
60,540
Bank overdrafts
(1,245,684)
264,534
(981,150)
(1,217,385)
296,775
(920,610)
Borrowings excluding overdrafts
(265,000)
40,000
(225,000)
Obligations under finance leases
(78,662)
(96,540)
(175,202)
(1,561,047)
240,235
(1,320,812)
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