E.M. Richford Limited
Unaudited Financial Statements
For the year ended 31 December 2023
Pages for Filing with Registrar
Company Registration No. 00151054 (England and Wales)
E.M. Richford Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
E.M. Richford Limited
Balance Sheet
As at 31 December 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
328,567
346,989
Investments
5
2
2
328,569
346,991
Current assets
Stock
1,969,812
2,109,509
Debtors
6
1,046,489
874,048
Cash at bank and in hand
1,009,770
681,326
4,026,071
3,664,883
Creditors: amounts falling due within one year
7
(487,504)
(413,803)
Net current assets
3,538,567
3,251,080
Total assets less current liabilities
3,867,136
3,598,071
Creditors: amounts falling due after more than one year
8
(21,593)
(31,568)
Net assets
3,845,543
3,566,503
Capital and reserves
Called up share capital
9
18,182
18,182
Capital redemption reserve
5,105
5,105
Profit and loss reserves
3,822,256
3,543,216
Total equity
3,845,543
3,566,503
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
E.M. Richford Limited
Balance Sheet (Continued)
As at 31 December 2023
Page 2
The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
R. Napper
Director
Company Registration No. 00151054
E.M. Richford Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 3
1
Accounting policies
Company information
E.M. Richford Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, 9 Appold Street, London, EC2A 2AP.
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 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 pound.
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 and services 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.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Intangible fixed assets - goodwill
Goodwill is determined by comparing the amount paid on the acquisition of a business and the aggregate fair value of its separable net assets, and is written off over its estimated economic life of 10 years.
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 five 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.
E.M. Richford Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 4
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 Freehold
straight line over 50 years
Plant and machinery
10% or 20% on cost
Fixtures, fittings & equipment
10% or 20% on cost
Motor vehicles
25% reducing balance
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.
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.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
Stock
Stock 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 stock to their present location and condition.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
1.7
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.
1.8
Financial instruments
The Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial assets are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.
Basic financial assets, which include trade and other receivables 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.
E.M. Richford Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 5
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.
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
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.
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.
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.
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
E.M. Richford Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 6
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
In accordance with FRS 19, deferred tax is recognised as a liability or asset if transactions or events that give the company the obligation to pay more tax in future or a right to pay less tax in future have occurred by the balance sheet date.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the profit and loss account.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 17 (2022: 23).
E.M. Richford Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 7
3
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
300,000
Amortisation and impairment
At 1 January 2023 and 31 December 2023
300,000
Carrying amount
At 31 December 2023
At 31 December 2022
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
582,301
170,442
752,743
Disposals
(2,083)
(2,083)
At 31 December 2023
582,301
168,359
750,660
Depreciation and impairment
At 1 January 2023
260,047
145,707
405,754
Depreciation charged in the year
10,446
6,101
16,547
Eliminated in respect of disposals
(208)
(208)
At 31 December 2023
270,493
151,600
422,093
Carrying amount
At 31 December 2023
311,808
16,759
328,567
At 31 December 2022
322,254
24,735
346,989
Included in freehold land and buildings is land at cost of £60,000 which is not depreciated.
5
Fixed asset investments
2023
2022
£
£
Other investments other than loans
2
2
Investments are measured at fair value through profit or loss
E.M. Richford Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 8
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
383,011
337,266
Amounts owed by group undertakings
596,599
480,849
Prepayments and accrued income
66,879
55,933
1,046,489
874,048
Trade debtors disclosed above are measured at amortised cost.
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
10,129
9,725
Trade creditors
303,096
239,208
Corporation tax
3,045
Other taxation and social security
98,478
110,211
Other creditors
5,137
5,157
Accruals and deferred income
67,619
49,502
487,504
413,803
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
21,593
31,568
During 2021 the company obtained a bank loan from Lloyds Bank plc under the Governments Coronavirus Bounce Back Loan scheme. Interest has been payable at 2.5% since January 2022 and the loan is repayable by December 2026.
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
'A' Ordinary Shares of £1 each
10,500
10,500
10,500
10,500
'B' Ordinary Shares of £1 each
4,046
4,046
4,046
4,046
'C' Ordinary Shares of £1 each
3,636
3,636
3,636
3,636
18,182
18,182
18,182
18,182
E.M. Richford Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
9
Called up share capital
(Continued)
Page 9
The A, B and C shares all rank equally in all respects, save that dividends at different amounts may be paid on each class, or to the exclusion of one or more classes altogether.
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
77,651
108,566
11
Related party transactions
During the year, a dividend of £10,000 (2022: £4,000) was declared to E.M. Richford Holdings Limited.
At the year end the Company was owed £596,599 (2022: £480,849) by E.M. Richford Holdings Limited.
12
Parent company
The ultimate controlling party is considered to be E.M. Richford Holdings Limited by virtue of its controlling interest in the issued share capital of the company.
13
Subsidiaries
These financial statements are separate company financial statements for E.M. Richford.
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Personal Impressions Limited
England and Wales
Ordinary
100.00
Country Love Crafts Limited
England and Wales
Ordinary
100.00
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