REGISTERED NUMBER: NI676899 (Northern Ireland) |
REDCHERRY BIDCO LIMITED |
Group Strategic Report, Directors' Report and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
REGISTERED NUMBER: NI676899 (Northern Ireland) |
REDCHERRY BIDCO LIMITED |
Group Strategic Report, Directors' Report and |
Consolidated Financial Statements for the Year Ended 31 December 2023 |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Contents of the Consolidated Financial Statements |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Directors' Report | 4 |
Independent Auditors' Report | 6 |
Consolidated Income Statement | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Statement of Cash Flows |
16 |
Notes to the Consolidated Financial Statements | 17 |
REDCHERRY BIDCO LIMITED |
Company Information |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
BANKERS: | HSBC |
1 Dublin Road |
Omagh |
Co. Tyrone |
BT78 1ES |
SOLICITORS: |
20 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Group Strategic Report |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report of the Company and the Group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The principal activity of the group is the manufacture of steel cabinets and associated equipment. The principal activity of the company is as a holding company. |
The group has delivered a strong trading performance for the year ended 31 December 2023 and the business remains in a sound financial position at the year end. |
The directors consider that the key performance indicators are those that communicate the financial performance and strengths of the business as a whole, being revenue, gross profit and operating profit. |
The directors have reviewed the performance of the group in the year. They have reported an increase in revenue to £29,540,795 (2022: £27,097,430). The gross profit margin as increased to 28.5% (2022: 23.7%).The group's operating profit has increased to £4,930,486 (2022: £3,431,166) and the group generated profits before tax of £4,909,783 (2022: £3,372,363). |
Given the increase in the key performance indicators of the group in the current year, the directors are |
satisfied with the group's financial performance. This is further reflected in the fact that the group has |
a strong net asset position of £11,312,592 at the year end (2022: £8,670,182). |
KEY PERFORMANCE INDICATORS |
The Key Performance Indicators during the year were as follows: |
2023 | 2022 |
Revenue: | £29,540,795 | £27,097,430 |
Gross Profit Margin: | 28.5% | 23.7% |
Net Operating Profit Margin: | 16.7% | 12.7% |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group and company's operations expose them to a variety of financial risks that include price risk, economic and competition risk, credit risk, liquidity risk and interest rate risk. The group and company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group and company by monitoring levels of debt finance and the related finance costs. Given the size of the group and company the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the group's and company's finance department. |
Economic risk |
The economic risks facing the group and company includes wages inflation and fall in demand for products. The directors work closely with employees, customers, suppliers and the group and company's financial institutions to carefully manage such risks. |
Competition risk |
Competition risk is managed through close attention to product quality, customer service and sustainable markets. |
Price risk |
The group and company are exposed to commodity price risk as a result of its operations. However, given the size of the group's and company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the group's and company's operations change in size or nature. |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Group Strategic Report |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED |
Credit risk |
The group and company operate policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board. |
Liquidity risk |
The group and company actively maintain a mixture of long-term and short-term debt finance that is designed to ensure that the group and company have sufficient available funds for operations and planned expansions. |
Interest rate risk |
The group and company have both interest-bearing assets and interest bearing liabilities. Interest bearing assets include cash balances, which earn interest at a variable rate. Interest bearing liabilities relate to bank loans and obligations under hire purchase and finance lease agreements, which bear interest at market rates. |
STRATEGY |
The group's success is dependent on the ongoing management of business risks and uncertainties it faces. The directors continue to work closely with suppliers, customers, staff and financial institutions to carefully manage the group's operations. The directors are continually looking for new opportunities to expand the business which will allow the group to be well positioned during 2024. |
FUTURE DEVELOPMENTS |
The group continues to evolve and has returned to relative stability. In the coming years the group aims to increase revenue and profitability. The group will continue to develop relationships with customers and suppliers and generate new work where possible while remaining highly competitive. |
EMPLOYMENT POLICY |
The group policy is to consult and discuss with employees, through unions, matters likely to affect employees' interests. |
Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group performance. |
HEALTH AND SAFETY |
The group and company are committed to achieving the highest practicable standards in health and safety management and strive to make all sites and office safe environments for employees and customers alike. |
HUMAN RESOURCES/EMPLOYEES |
The most important resource of the group and company are the people employed: their knowledge and experience is crucial to meeting customer requirements. In this current economic climate it is vitally important that the retention of key staff is achieved. The group and company continue to invest in employment training and development and have introduced appropriate incentive and career progression arrangements. |
ON BEHALF OF THE BOARD: |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Directors' Report |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the audited financial statements of the Company and the Group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group is the manufacture of steel cabinets and associated equipment. The principal activity of the company is as a holding company. |
DIVIDENDS |
The total interim distribution of dividends for the year ended 31 December 2023 were £1,240,000 (2022: £1,725,414). The directors do not recommend payment of a final dividend (2022: £Nil). |
RESEARCH AND DEVELOPMENT |
The group continues to recognise the importance of its research and development programme, which it believes is essential to ensure that the business continues to develop new products and remain competitive in the market. |
DIRECTORS |
The directors who have held office during the whole of the period from 1 January 2023 to the date of this report are as follows: |
Brendan McDermott |
Antain McDermott |
Adam McDermott |
Aaron McDermott |
CHARITABLE AND POLITICAL CONTRIBUTIONS |
The group made charitable donations of £12,851 during the year (2022: £2,506). No expenditure was incurred for political purposes in the current or prior year. |
DISCLOSURES REQUIRED UNDER SCHEDULE 7 |
In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the business review, principal risks and uncertainties and future developments in the company's Strategic Report which would otherwise be required to be disclosed in the Directors' Report. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Group Strategic Report, the Directors' 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group 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 and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Group's auditors are aware of that information. |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Directors' Report |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
AUDITORS |
The auditors, CavanaghKelly, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Independent Auditors' Report to the Members of |
Redcherry Bidco Limited |
Opinion |
We have audited the financial statements of Redcherry Bidco Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of 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 Group's and of the Parent Company affairs as at 31 December 2023 and of the Group's 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. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Redcherry Bidco Limited |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the Parent Company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' 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 set out on page four, 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 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 Group's and 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 Group or the Parent Company or to cease operations, or have no realistic alternative but to do so. |
Independent Auditors' Report to the Members of |
Redcherry Bidco Limited |
Auditors' 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 Auditors' 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. |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation; |
- | We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance; |
- | We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations; |
- | Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and |
- | Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override. |
The audit response to risks identified included: |
- | Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above; |
- | Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; |
- | In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. |
Independent Auditors' Report to the Members of |
Redcherry Bidco Limited |
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 Auditors' 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Consolidated |
Income Statement |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 5 | 29,540,795 | 27,097,430 |
Cost of sales | (21,120,897 | ) | (20,661,060 | ) |
GROSS PROFIT | 8,419,898 | 6,436,370 |
Distribution costs | (1,191,975 | ) | (1,072,905 | ) |
Administrative expenses | (2,297,437 | ) | (1,932,299 | ) |
OPERATING PROFIT | 7 | 4,930,486 | 3,431,166 |
Finance income | 18,972 | - |
4,949,458 | 3,431,166 |
Finance costs | 8 | (39,675 | ) | (58,803 | ) |
PROFIT BEFORE TAXATION | 4,909,783 | 3,372,363 |
Tax on profit | 9 | (1,027,373 | ) | (303,478 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
3,882,410 |
3,068,885 |
Profit attributable to: |
Owners of the parent | 3,882,410 | 3,068,885 |
Total comprehensive income attributable to: |
Owners of the parent | 3,882,410 | 3,068,885 |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Consolidated Statement of Financial Position |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Intangible assets | 12 | 40,099 | 80,199 |
Tangible assets | 13 | 4,212,947 | 4,327,937 |
Investments | 14 | - | - |
4,253,046 | 4,408,136 |
CURRENT ASSETS |
Stocks | 15 | 2,737,924 | 2,338,615 |
Receivables: amounts falling due within one year |
16 |
6,857,808 |
6,753,911 |
Cash at bank | 3,532,971 | 3,332,052 |
13,128,703 | 12,424,578 |
PAYABLES |
Amounts falling due within one year | 17 | (5,283,546 | ) | (7,256,891 | ) |
NET CURRENT ASSETS | 7,845,157 | 5,167,687 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
12,098,203 |
9,575,823 |
PAYABLES |
Amounts falling due after more than one year |
18 |
(95,442 |
) |
(208,442 |
) |
PROVISIONS FOR LIABILITIES | 22 | (690,169 | ) | (697,199 | ) |
NET ASSETS | 11,312,592 | 8,670,182 |
CAPITAL AND RESERVES |
Called up share capital | 23 | 42,005 | 42,005 |
Revaluation reserve | 567,203 | 567,203 |
Merger reserve | (4,557,099 | ) | (4,557,099 | ) |
Retained earnings | 15,260,483 | 12,618,073 |
SHAREHOLDERS' FUNDS | 11,312,592 | 8,670,182 |
The financial statements were approved by the Board of Directors and authorised for issue on 20 September 2024 and were signed on its behalf by: |
Antain McDermott - Director |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Company Statement of Financial Position |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Receivables: amounts falling due within one year |
16 |
PAYABLES |
Amounts falling due within one year | 17 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Merger reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 4,000,000 | 2,500,000 |
The financial statements were approved by the Board of Directors and authorised for issue on |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Consolidated Statement of Changes in Equity |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Revaluation | Merger | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | 42,005 | 11,274,602 | 567,203 | (4,557,099 | ) | 7,326,711 |
Changes in equity |
Dividends | - | (1,725,414 | ) | - | - | (1,725,414 | ) |
Total comprehensive income | - | 3,068,885 | - | - | 3,068,885 |
Balance at 31 December 2022 | 42,005 | 12,618,073 | 567,203 | (4,557,099 | ) | 8,670,182 |
Changes in equity |
Dividends | - | (1,240,000 | ) | - | - | (1,240,000 | ) |
Total comprehensive income | - | 3,882,410 | - | - | 3,882,410 |
Balance at 31 December 2023 | 42,005 | 15,260,483 | 567,203 | (4,557,099 | ) | 11,312,592 |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Company Statement of Changes in Equity |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Merger | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Consolidated Statement of Cash Flows |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,754,437 | (446,100 | ) |
Interest paid | (39,854 | ) | (49,301 | ) |
Other interest | - | (9,502 | ) |
Tax paid | (768,972 | ) | (493,881 | ) |
Net cash from operating activities | 1,945,611 | (998,784 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (411,572 | ) | (370,788 | ) |
Interest received | 18,972 | - |
Net cash from investing activities | (392,600 | ) | (370,788 | ) |
Cash flows from financing activities |
Loan repayments in year | (113,000 | ) | (115,086 | ) |
Equity dividends paid | (1,240,000 | ) | (1,725,414 | ) |
Net cash from financing activities | (1,353,000 | ) | (1,840,500 | ) |
Increase/(decrease) in cash and cash equivalents | 200,011 | (3,210,072 | ) |
Cash and cash equivalents at beginning of year |
2 |
3,332,052 |
6,542,124 |
Cash and cash equivalents at end of year |
2 |
3,532,063 |
3,332,052 |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Notes to the Consolidated Statement of Cash Flows |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 4,909,783 | 3,372,363 |
Depreciation charges | 566,662 | 515,272 |
Movement in provisions | - | (850,000 | ) |
Finance costs | 39,675 | 58,803 |
Finance income | (18,972 | ) | - |
5,497,148 | 3,096,438 |
Increase in stocks | (399,309 | ) | (773,325 | ) |
Decrease/(increase) in trade and other debtors | 246,103 | (3,264,390 | ) |
(Decrease)/increase in trade and other creditors | (2,589,505 | ) | 495,177 |
Cash generated from operations | 2,754,437 | (446,100 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 3,532,971 | 3,332,052 |
Bank overdrafts | (908 | ) | - |
3,532,063 | 3,332,052 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 3,332,052 | 6,542,124 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank | 3,332,052 | 200,919 | 3,532,971 |
Bank overdrafts | - | (908 | ) | (908 | ) |
3,332,052 | 200,011 | 3,532,063 |
Debt |
Debts falling due within 1 year | (124,589 | ) | - | (124,589 | ) |
Debts falling due after 1 year | (208,442 | ) | 113,000 | (95,442 | ) |
(333,031 | ) | 113,000 | (220,031 | ) |
Total | 2,999,021 | 313,011 | 3,312,032 |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Notes to the Consolidated Financial Statements |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Redcherry Bidco Limited is a private company, limited by shares, registered in Northern Ireland. The company's registered number and registered office address can be found on the General Information page. The principal activity of the group is the manufacture of steel cabinets and associated equipment. The principal activity of the company is as a holding company. |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis under the historical cost convention except for certain properties that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets. The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the group and company financial statements. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions. |
The company has taken advantage of the following exemptions: |
- from presenting its own Statement of comprehensive income in these financial statements as permitted under section 4085 of the Companies Act 2006; |
- from preparing a Statement of cash flows or Profit and loss account on the basis that it is a qualifying entity, its cash flows and profit and loss is included in the cash flows and profit and loss in the consolidated financial statements; |
- from the financial instrument disclosures, required under FRS 102 paragraphs 11.41 (b) to 11.148(c) and 12.26 to 12.29, as the information is provided in the consolidated statement disclosure; and |
- from disclosing the company's key management personnel compensation as required by FRS 102 paragraph 33.7. |
Basis of consolidation |
The consolidated income statement, consolidated statement of changes in equity, consolidated balance sheet and consolidated statement of cash flows the financial statements of the company and its subsidiary's undertakings made up to 31 December 2023. |
Inter-company transactions, balances and cash flows between group companies are eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue recognition |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sale of goods: |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- the significant risks and rewards of ownership have been transferred to the buyer; |
- the group retains no continuing involvement or control over the goods; |
- the amount of revenue can be measured reliably; |
- it is probable that future economic benefits will flow through the group; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Rendering of services and contracting |
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
- the amount of revenue can be measured reliably; |
- it is probable that the group will receive consideration due under the contract; |
- the stage of completion of the contract at the end of the reporting period can be measured reliably; and |
- the costs incurred and the costs to complete the contract can be measured reliably. |
Goodwill |
Purchased goodwill arising on the acquisition of a business represents the excess of the acquisition cost over the fair value of the identifiable net assets including other intangible fixed assets when they were acquired. Purchased goodwill is capitalised in the Statement of Financial Position and amortised on a straight line basis over its economic useful life of 10 years, which is estimated to be the period during which benefits are expected to arise. On disposal of a business any goodwill not yet amortised is included in determining the profit or loss on sale of the business. |
Goodwill is reviewed for impairment at the end of the first full financial year following acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable. |
Property, plant and equipment |
Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows: |
Land | Nil |
Freehold buildings | 4% | straight line |
Plant and machinery | 20% | reducing balance |
Fixtures, fittings and equipment | 15% | reducing balance |
Motor vehicles | 25% | reducing balance |
Computer equipment | 25% | straight line |
The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Stocks and work in progress |
Stocks are valued at the lower of cost and net realisable value. Stocks are determined on a first-in first-out basis. Cost comprises expenditure incurred in the normal course of business in bringing inventories to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling. |
Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be ncurred in marketing and selling. |
Work in progress is stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each contract to its present stage, plus an element of profit attributable to the current stage of completion. Net realisable value is based on estimated contract price less any further costs expected to be incurred in completion. |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company and group have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by group companies are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the Income Statement. |
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 the Income Statement. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans and overdrafts and hire purchase contracts 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
(iii) Offsetting |
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. |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
(i) Functional and presentation currency |
The group financial statements are presented in pound sterling. |
The company's functional and presentation currency is pound sterling |
(ii) Transactions and balances |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account. |
The trading results of group undertakings are translated into sterling at the average exchange rates for the year. The assets and liabilities of overseas undertakings are translated at the exchange rate rulings at the year end. Exchange adjustments arising from the retranslation of opening net investments and from the translation of the profits or losses at average rates are recognised in "Other comprehensive income". |
Hire purchase and leasing commitments |
Property, plant and equipment held under leasing and Hire Purchase arrangements which transfer substantially all the risks and rewards of ownership to the group are capitalised and included in the Statement of Financial Position at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the Income Statement |
Pension costs |
The group operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the group. Annual contributions payable to the group's pension scheme are charged to the Income Statement in the period to which they relate. |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Net finance expenses |
Finance expenses: |
Finance expenses comprise interest payable on borrowings and leases. |
Finance income: |
Finance income comprises interest receivable on funds invested in loans and cash and cash equivalents. Interest is recognised in profit or loss as it accrues. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within current liabilities. |
Distributions to equity holders |
Dividends and other distributions to the group's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the group's shareholders. These amounts are recognised in the statements of changes in equity. |
Share capital |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
Warranty provision |
Provisions for warranty related costs are recognised based on experience of the costs of making good claims under warranty. The future cash flows are estimated based on a number of factors, including historical claim and cost experience, and the nature of the product sold, and are discounted at a current pre-tax rate that reflects the risks specific to the provision. The estimate for warranty related costs is reviewed annually and adjusted as appropriate through cost of sales. |
Merger reserve |
A merger reserve was recognised as part of the group restructuring on 26 February 2021 and has been recorded equal to the value of share premium which would have been recorded if the provisions of section 612 of the Companies Act 2006 had not been applicable. |
4. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, income and expenditure in the reporting period. Actual results could differ from those estimates. Therefore, management believe the critical accounting policies where estimates, judgements and assumptions are necessarily applied are summarised below: |
Warranty Provision |
The group offers a warranty for any faulty goods sold. Provision is made for potential claims under warranty for goods which have been returned. Management review the level of sales and the number of warranty claims made on a regular basis in order to calculate the provision for future claims for goods sold. |
5. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the Group. |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
6. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 4,255,837 | 3,712,516 |
Social security costs | 425,471 | 377,453 |
Other pension costs | 116,790 | 106,190 |
4,798,098 | 4,196,159 |
The average number of employees including directors employed during the year was as follows: |
2023 | 2022 |
Production and selling | 102 | 99 |
Administration and Directors | 23 | 18 |
125 | 117 |
2023 | 2022 |
£ | £ |
Directors' emoluments | 638,635 | 527,194 |
Pension | 10,308 | 10,670 |
Retirement benefits are accruing to four (2022: four) directors under a defined contribution | scheme. |
Highest paid director: |
2023 | 2022 |
£ | £ |
Aggregate emoluments | 370,646 | 259,705 |
Pension Contributions | 2,692 | 2,800 |
The directors are considered to be the key management of the group. |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 465,779 | 465,779 |
Auditor's remuneration | 11,950 | 11,340 |
Non audit services: Taxation | 10,950 | 25,615 |
Non audit services: Advisory | - | 1,815 |
Foreign exchange differences | (3,005 | ) | (117,731 | ) |
Research and development | - | 2,312 |
8. | FINANCE COSTS |
2023 | 2022 |
£ | £ |
Bank interest | 28,065 | 49,301 |
Other interest | 11,610 | 9,502 |
39,675 | 58,803 |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 911,239 | 363,427 |
Adjustment in respect of prior |
period | 123,164 | (64,488 | ) |
Total current tax | 1,034,403 | 298,939 |
Deferred tax: |
Deferred tax | (8,491 | ) | 10,114 |
Adjustment in respect of prior |
period | 1,995 | (5,575 | ) |
Impact of rate change | (534 | ) | - |
Total deferred tax | (7,030 | ) | 4,539 |
Tax on profit | 1,027,373 | 303,478 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 4,909,783 | 3,372,363 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.520 % (2022 - 19 %) |
1,154,781 |
640,749 |
Effects of: |
Expenses not deductible for tax purposes | 7,885 | 9,193 |
Income not taxable for tax purposes | (4,462 | ) | - |
Depreciation in excess of capital allowances | 57,454 | 27,599 |
Adjustments to tax charge in respect of previous periods | 125,159 | (70,063 | ) |
Impact of super deduction | (42 | ) | - |
Patent box regime | - | (152,000 | ) |
Research and development tax credit | (312,868 | ) | (152,000 | ) |
Impact of rate change | (534 | ) | - |
Total tax charge | 1,027,373 | 303,478 |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of 1 each |
Interim | 1,240,000 | 1,725,414 |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 801,999 |
AMORTISATION |
At 1 January 2023 | 721,800 |
Amortisation for year | 40,100 |
At 31 December 2023 | 761,900 |
NET BOOK VALUE |
At 31 December 2023 | 40,099 |
At 31 December 2022 | 80,199 |
The company had no intangible fixed assets at 31 December 2023. |
13. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2023 | 5,087,656 | 3,489,446 | 663,326 |
Additions | 137,998 | 212,527 | 45,658 |
At 31 December 2023 | 5,225,654 | 3,701,973 | 708,984 |
DEPRECIATION |
At 1 January 2023 | 1,854,654 | 2,816,948 | 360,806 |
Charge for year | 209,277 | 207,636 | 58,040 |
At 31 December 2023 | 2,063,931 | 3,024,584 | 418,846 |
NET BOOK VALUE |
At 31 December 2023 | 3,161,723 | 677,389 | 290,138 |
At 31 December 2022 | 3,233,002 | 672,498 | 302,520 |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | PROPERTY, PLANT AND EQUIPMENT - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 257,956 | 305,707 | 9,804,091 |
Additions | 11,000 | 4,389 | 411,572 |
At 31 December 2023 | 268,956 | 310,096 | 10,215,663 |
DEPRECIATION |
At 1 January 2023 | 189,583 | 254,163 | 5,476,154 |
Charge for year | 23,748 | 27,861 | 526,562 |
At 31 December 2023 | 213,331 | 282,024 | 6,002,716 |
NET BOOK VALUE |
At 31 December 2023 | 55,625 | 28,072 | 4,212,947 |
At 31 December 2022 | 68,373 | 51,544 | 4,327,937 |
The company had no fixed assets at 31 December 2023 (2022: £Nil). |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Holdings in related undertakings |
The company holds 20% or more of the share capital in the following company: |
Name |
Country of incorporation |
Nature of business |
Details of investment |
Proportion held by company |
Redcherry Investments Limited |
Northern Ireland |
Engineering |
Ordinary |
100% |
The address of the above entity is 87 Goland road, Ballygawley, Tyrone, BT70 2LA. |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
15. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Raw materials | 2,477,686 | 2,035,521 |
Work-in-progress | 165,370 | 154,468 |
Finished goods | 94,868 | 148,626 |
2,737,924 | 2,338,615 |
The company has no stock as at 31 December 2023 (2022: £Nil). |
16. | RECEIVABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade receivables | 5,781,622 | 6,037,154 |
Amounts owed by group undertakings | - | - |
Amounts owed by participating interests | 350,000 | - | - | - |
Other receivables | 6,950 | 140,963 |
VAT | 137,264 | - |
Prepayments and accrued income | 581,972 | 575,794 |
6,857,808 | 6,753,911 |
The amounts owed by group undertakings and participating interests are considered repayable on demand and no interest is charged in respect of same. |
17. | PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 19) | 125,497 |
124,589 |
Trade payables | 3,222,608 | 4,041,620 |
Amounts owed to group undertakings | - | - |
Tax | 291,097 | 25,666 |
Social security and other taxes | 245,966 | 306,667 |
Other payables | 1,016,704 | 1,941,204 |
Accruals | 381,674 | 817,145 |
5,283,546 | 7,256,891 |
The amounts owed to group undertakings are considered repayable on demand and no interest is charged in respect of same. |
18. | PAYABLES: AMOUNTS FALLING DUE AFTER ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 19) | 95,442 | 208,442 |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
19. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | 908 | - |
Bank loans | 124,589 | 124,589 |
125,497 | 124,589 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 95,442 | 124,589 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | - | 83,853 |
The bank loan is repayable by monthly instalments commencing 30th November 2020 and carries interest of base rate plus 2.5%. The bank loan and overdraft are secured by fixed and floating charge over book debts of the company and leased mortgage over certain property. |
20. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable |
operating leases |
2023 | 2022 |
£ | £ |
Within one year | - | 6,830 |
Between one and five years | - | 8,395 |
- | 15,225 |
Hire purchases are secured by the assets to which they relate. |
21. | FINANCIAL INSTRUMENTS |
2023 | 2022 |
Financial assets that are debt instruments measured at amortised cost |
6,138,572 | 6,178,117 |
Financial liabilities measured at amortised cost. | 4,746,483 | 6,924,558 |
Financial assets measured at amortised cost comprise of trade debtors and other receivables. |
Amounts owed by group undertakings and participating interests are considered repayable on demand and no interest is charged in respect of same. |
Financial liabilities measured at amortised cost comprise of bank loans, amounts owed under hire purchase agreements, trade payables, other payables and accruals. |
REDCHERRY BIDCO LIMITED (REGISTERED NUMBER: NI676899) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
22. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 190,169 | 197,199 |
Other provisions |
Warranty provisions | 500,000 | 500,000 |
Aggregate amounts | 690,169 | 697,199 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 January 2023 | 197,199 | 350,000 |
Provided during year | (7,030 | ) | - |
Balance at 31 December 2023 | 190,169 | 350,000 |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Nomina l value: |
2023 |
2022 |
Number: | Class: |
28,505 | Ordinary A | £1 | 28,505 | 28,505 |
4,500 | Ordinary B | £1 | 4,500 | 4,500 |
4,500 | Ordinary C | £1 | 4,500 | 4,500 |
4,500 | Ordinary D | £1 | 4,500 | 4,500 |
42,005 | 42,005 |
24. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme in respect of the company employees. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the group and amounted to £116,790 (2022: £106,190). At the year end, there is £Nil (2022: £23,241) outstanding in respect of pension contributions. |
25. | RELATED PARTY TRANSACTIONS |
The company has availed of the exemption under FRS 102 in relation to the disclosure of transactions with group companies. |
The following related party transactions have been identified that fall to be disclosed under FRS102 |
paragraph 33 'Related Party Transactions'. |
Directors of the group are considered as related parties due to their position within the company. The dividends of £1,240,000 (2022: £1,725,414) were paid to the directors of the company by virtue of their shareholding in Redcherry Bidco Limited. Included within other payables are amounts due to the directors of £999,008 (2022: £1,899,008). |
26. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party at the year end was considered to be the directors of the company. |