REGISTERED NUMBER: NI675553 (Northern Ireland) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 March 2024 |
for |
RGM TOPCO LIMITED |
REGISTERED NUMBER: NI675553 (Northern Ireland) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 March 2024 |
for |
RGM TOPCO LIMITED |
RGM TOPCO LIMITED (Registered number: NI675553) |
Contents of the Consolidated Financial Statements |
for the year ended 31 March 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 17 |
RGM TOPCO LIMITED |
Company Information |
for the year ended 31 March 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Registered Auditors |
Suite 5 Ormeau House |
91-97 Ormeau Road |
Belfast |
Co. Antrim |
BT7 1SH |
RGM TOPCO LIMITED (Registered number: NI675553) |
Group Strategic Report |
for the year ended 31 March 2024 |
The directors present their strategic report of the company and the group for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
The trading results for the year and the group's financial position at the end of the year are shown in the attached financial statements. The directors consider both the results for the year and the prospects for the future as satisfactory. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company uses various financial instruments including bank loans or overdrafts, cash, and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. |
The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below. |
The main risks arising from the company's instruments are interest rate risk and liquidity risk. |
The directors review and agree policies for managing each of these risks and they are summarised below. These policies remain unchanged from previous years. |
Liquidity Risk |
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. Short-term flexibility is achieved by overdraft facilities. |
Currency Risk |
The company is exposed to translation and transaction foreign exchange risk. |
Interest Rate Risk |
The company finances its operations through a mixture of retained profits and bank borrowings. The company exposure to interest rate fluctuations on its borrowings is managed through annual review of its borrowing requirements. |
Credit Risk |
The company's principal financial assets are cash and debtors: the credit risk associated with cash is limited. An assessment is made of prospective commercial customers before goods are supplied on credit. Overdue amounts are reviewed on an ongoing basis and are followed up on a monthly basis. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The group's key performance indicators are as follows: |
2024 | 2023 |
(14 months period) |
£'000 | £'000 |
Turnover | 17,442 | 17,494 |
EBITDA | 627 | 467 |
Net Assets | 2,175 | 2,842 |
ON BEHALF OF THE BOARD: |
RGM TOPCO LIMITED (Registered number: NI675553) |
Report of the Directors |
for the year ended 31 March 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of design, manufacture and installation of ventilation solutions. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Cleaver Black, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
RGM TOPCO LIMITED |
Opinion |
We have audited the financial statements of RGM TOPCO LIMITED (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 March 2024 and of the group's loss 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 Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
RGM TOPCO 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 Report of the Directors. |
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 Statement of Directors' Responsibilities set out on page three, 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. |
Report of the Independent Auditors to the Members of |
RGM TOPCO 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identify and assessing potential risks related to irregularities. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
1. | The nature of the industry and sector, control environment and business performance including the design of the group's remuneration policies; |
2. | Results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
3. | Any matters we identified having obtained and reviewed the group's documentation of their policies and procedures relating to |
(i) Identifying, evaluating and complying with laws and regulations and whether they were aware of any cases | of non-compliance; |
(ii) Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or | alleged fraud; |
(iii) The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
4. | The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud; |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue deferrals. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to risk management override. |
We also obtained an understanding of the legal and regulatory frameworks that the group operates in, focusing on provisions of those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. |
Audit response to risks identified |
As a result of performing the above, we identified revenue deferrals as a key audit matter related to the potential risk of fraud. Our procedures to respond to risks identified included the following: |
1 | Enquiring of management and external legal counsel concerning actual and potential litigation and claims; |
2 | Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
3 | Reading minutes of meetings of those charged with governance and reviewing regulatory correspondence; |
4 | Obtaining an understanding of the provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; |
5 | In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries; assessing whether the judgements made in making accounting estimates are indicative of potential bias; and evaluating the business rationale of any significant transactions that are outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
RGM TOPCO 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 a Report of the Auditors 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 |
Registered Auditors |
Suite 5 Ormeau House |
91-97 Ormeau Road |
Belfast |
Co. Antrim |
BT7 1SH |
RGM TOPCO LIMITED (Registered number: NI675553) |
Consolidated |
Income Statement |
for the year ended 31 March 2024 |
Period |
1/2/22 |
Year Ended | to |
31/3/24 | 31/3/23 |
as restated |
Notes | £ | £ |
TURNOVER | 17,442,212 | 17,494,228 |
Cost of sales | (14,168,726 | ) | (13,700,393 | ) |
GROSS PROFIT | 3,273,486 | 3,793,835 |
Distribution costs | (27,005 | ) | (44,524 | ) |
Administrative expenses | (3,443,822 | ) | (4,175,137 | ) |
(197,341 | ) | (425,826 | ) |
Other operating income | 44,100 | 94,998 |
OPERATING LOSS | 4 | (153,241 | ) | (330,828 | ) |
Interest payable and similar expenses | 5 | (532,068 | ) | (516,709 | ) |
LOSS BEFORE TAXATION | (685,309 | ) | (847,537 | ) |
Tax on loss | 6 | 18,158 | (41,411 | ) |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
Loss attributable to: |
Owners of the parent | (667,151 | ) | (888,948 | ) |
RGM TOPCO LIMITED (Registered number: NI675553) |
Consolidated |
Other Comprehensive Income |
for the year ended 31 March 2024 |
Period |
1/2/22 |
Year Ended | to |
31/3/24 | 31/3/23 |
as restated |
Notes | £ | £ |
LOSS FOR THE YEAR | (667,151 | ) | (888,948 | ) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(667,151 |
) |
(888,948 |
) |
Note |
Prior year adjustment | 8 | (87,710 | ) |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
(754,861 |
) |
Total comprehensive income attributable to: |
Owners of the parent | (754,861 | ) | (888,948 | ) |
RGM TOPCO LIMITED (Registered number: NI675553) |
Consolidated Balance Sheet |
31 March 2024 |
2024 | 2023 |
as restated |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 3,867,774 | 4,328,467 |
Tangible assets | 10 | 776,251 | 802,085 |
4,644,025 | 5,130,552 |
CURRENT ASSETS |
Stocks | 11 | 4,585,495 | 4,850,832 |
Debtors | 12 | 2,172,599 | 2,195,684 |
Cash at bank and in hand | 53,400 | 2,992 |
6,811,494 | 7,049,508 |
CREDITORS |
Amounts falling due within one year | 13 | (4,596,162 | ) | (4,871,961 | ) |
NET CURRENT ASSETS | 2,215,332 | 2,177,547 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
6,859,357 |
7,308,099 |
CREDITORS |
Amounts falling due after more than one year |
14 |
(4,561,553 |
) |
(4,337,563 |
) |
PROVISIONS FOR LIABILITIES | 18 | (122,839 | ) | (128,420 | ) |
NET ASSETS | 2,174,965 | 2,842,116 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 6,522 | 6,522 |
Share premium | 20 | 167,500 | 167,500 |
Retained earnings | 20 | 2,000,943 | 2,668,094 |
SHAREHOLDERS' FUNDS | 2,174,965 | 2,842,116 |
The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2024 and were signed on its behalf by: |
R Murphy - Director |
Mrs K Murphy - Director |
RGM TOPCO LIMITED (Registered number: NI675553) |
Company Balance Sheet |
31 March 2024 |
2024 | 2023 |
as restated |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
Company's loss for the financial year | (946,616 | ) | (937,086 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
RGM TOPCO LIMITED (Registered number: NI675553) |
Consolidated Statement of Changes in Equity |
for the year ended 31 March 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 February 2022 | 6,522 | 3,557,042 | 167,500 | 3,731,064 |
Changes in equity |
Total comprehensive income | - | (801,238 | ) | - | (801,238 | ) |
Balance at 31 March 2023 | 6,522 | 2,755,804 | 167,500 | 2,929,826 |
Prior year adjustment | - | (87,710 | ) | - | (87,710 | ) |
As restated | 6,522 | 2,668,094 | 167,500 | 2,842,116 |
Changes in equity |
Total comprehensive income | - | (667,151 | ) | - | (667,151 | ) |
Balance at 31 March 2024 | 6,522 | 2,000,943 | 167,500 | 2,174,965 |
RGM TOPCO LIMITED (Registered number: NI675553) |
Company Statement of Changes in Equity |
for the year ended 31 March 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 February 2022 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 March 2023 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 March 2024 | 6,522 | (2,391,921 | ) | 167,500 | (2,217,899 | ) |
RGM TOPCO LIMITED (Registered number: NI675553) |
Consolidated Cash Flow Statement |
for the year ended 31 March 2024 |
Period |
1/2/22 |
Year Ended | to |
31/3/24 | 31/3/23 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,141,435 | (440,628 | ) |
Interest paid | (484,254 | ) | (430,708 | ) |
Interest element of hire purchase payments paid |
(47,814 |
) |
(86,001 |
) |
Tax paid | 12,577 | 36,081 |
Net cash from operating activities | 621,944 | (921,256 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | (122,954 | ) | (137,732 | ) |
Purchase of tangible fixed assets | (215,611 | ) | (613,490 | ) |
Sale of tangible fixed assets | 24,168 | (5,800 | ) |
Net cash from investing activities | (314,397 | ) | (757,022 | ) |
Cash flows from financing activities |
Loan repayments in year | (164,037 | ) | (223,324 | ) |
Capital repayments in year | (6,698 | ) | 298,238 |
Amount introduced by directors | 52,733 | 700,000 |
Amount withdrawn by directors | (135,800 | ) | (212,117 | ) |
Government grants | 44,100 | 94,998 |
Net cash from financing activities | (209,702 | ) | 657,795 |
Increase/(decrease) in cash and cash equivalents | 97,845 | (1,020,483 | ) |
Cash and cash equivalents at beginning of year |
2 |
(927,525 |
) |
92,958 |
Cash and cash equivalents at end of year | 2 | (829,680 | ) | (927,525 | ) |
RGM TOPCO LIMITED (Registered number: NI675553) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 31 March 2024 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1/2/22 |
Year Ended | to |
31/3/24 | 31/3/23 |
as restated |
£ | £ |
Loss before taxation | (685,309 | ) | (847,537 | ) |
Depreciation charges | 808,434 | 857,477 |
(Profit)/loss on disposal of fixed assets | (7,510 | ) | 5,800 |
Government grants | (44,100 | ) | (94,998 | ) |
Finance costs | 532,068 | 516,709 |
603,583 | 437,451 |
Decrease/(increase) in stocks | 265,337 | (1,759,885 | ) |
Decrease in trade and other debtors | 23,085 | 347,635 |
Increase in trade and other creditors | 249,430 | 534,171 |
Cash generated from operations | 1,141,435 | (440,628 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2024 |
31/3/24 | 1/4/23 |
£ | £ |
Cash and cash equivalents | 53,400 | 2,992 |
Bank overdrafts | (883,080 | ) | (930,517 | ) |
(829,680 | ) | (927,525 | ) |
Period ended 31 March 2023 |
31/3/23 | 1/2/22 |
as restated |
£ | £ |
Cash and cash equivalents | 2,992 | 92,958 |
Bank overdrafts | (930,517 | ) | - |
(927,525 | ) | 92,958 |
RGM TOPCO LIMITED (Registered number: NI675553) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 31 March 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/4/23 | Cash flow | At 31/3/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,992 | 50,408 | 53,400 |
Bank overdrafts | (930,517 | ) | 47,437 | (883,080 | ) |
(927,525 | ) | 97,845 | (829,680 | ) |
Debt |
Finance leases | (459,202 | ) | 6,698 | (452,504 | ) |
Debts falling due within 1 year | (230,409 | ) | (2,502 | ) | (232,911 | ) |
Debts falling due after 1 year | (3,587,868 | ) | 166,539 | (3,421,329 | ) |
(4,277,479 | ) | 170,735 | (4,106,744 | ) |
Total | (5,205,004 | ) | 268,580 | (4,936,424 | ) |
RGM TOPCO LIMITED (Registered number: NI675553) |
Notes to the Consolidated Financial Statements |
for the year ended 31 March 2024 |
1. | STATUTORY INFORMATION |
RGM TOPCO LIMITED is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
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 entity after deducting all of its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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. |
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income. |
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 goods), the amount of revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the entity and the costs incurred in respect of the transaction can be measured reliably. |
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered. In the case of long-term contracts, turnover is derived on the basis of amounts certified during the period. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of different business are being amortised over their useful life. |
RGM TOPCO LIMITED (Registered number: NI675553) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Long leasehold | - 25% on reducing balance |
Plant and machinery | - 25% on reducing balance and 20% on cost |
Fixtures and fittings | - 25% on reducing balance |
Motor vehicles | - 25% on reducing balance and 20% on cost |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
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 or deferred taxation assets and liabilities are not discounted. |
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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
RGM TOPCO LIMITED (Registered number: NI675553) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
The directors have assessed, based on the anticipated activities of the company, that there are adequate resources in place to meet the on-going costs of the business for a minimum of 12 months from the date of signing of the financial statements. In coming to this conclusion, the directors have assessed the entity's current financing arrangements and liquid resources. For this reason, the financial statements have been prepared on a going concern basis which presumes the utilisation of assets and liabilities in the normal course of business. |
Financial instruments |
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 entity after deducting all of its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
3. | EMPLOYEES AND DIRECTORS |
Period |
1/2/22 |
Year Ended | to |
31/3/24 | 31/3/23 |
as restated |
£ | £ |
Wages and salaries | 3,232,640 | 4,442,795 |
Social security costs | 308,179 | 370,948 |
Other pension costs | 66,071 | 96,152 |
3,606,890 | 4,909,895 |
The average number of employees during the year was NIL (2023 - NIL). |
The average number of employees by undertakings that were proportionately consolidated during the year was 95 (2023 - 115 ) . |
Year ended 31/3/24 |
Period 1/2/22 to 31/3/23 |
£ | £ |
Directors' remuneration | 385,548 | 413,375 |
Information regarding the highest paid director is as follows: |
Year ended 31/3/24 |
Period 1/2/22 to 31/3/23 |
£ | £ |
Emoluments | 84,000 | 98,000 |
RGM TOPCO LIMITED (Registered number: NI675553) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
4. | OPERATING LOSS |
The operating loss is stated after charging/(crediting): |
Period |
1/2/22 |
Year Ended | to |
31/3/24 | 31/3/23 |
as restated |
£ | £ |
Hire of plant and machinery | 21,873 | 20,789 |
Depreciation - owned assets | 224,787 | 268,362 |
(Profit)/loss on disposal of fixed assets | (7,510 | ) | 5,800 |
Goodwill amortisation | 577,049 | 580,262 |
Patents and licences amortisation | 6,598 | 8,854 |
Auditors' remuneration | 23,450 | 20,800 |
Foreign exchange differences | 14,309 | (42,483 | ) |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1/2/22 |
Year Ended | to |
31/3/24 | 31/3/23 |
as restated |
£ | £ |
Bank interest | 69,280 | 34,669 |
Bank loan interest | 414,974 | 396,039 |
Hire purchase | 543 | 26,785 |
Leasing | 47,271 | 59,216 |
532,068 | 516,709 |
6. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
Period |
1/2/22 |
Year Ended | to |
31/3/24 | 31/3/23 |
as restated |
£ | £ |
Current tax: |
CT adj re Prior Year | (12,577 | ) | (36,081 | ) |
Deferred tax | (5,581 | ) | 77,492 |
Tax on loss | (18,158 | ) | 41,411 |
RGM TOPCO LIMITED (Registered number: NI675553) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
6. | TAXATION - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1/2/22 |
Year Ended | to |
31/3/24 | 31/3/23 |
as restated |
£ | £ |
Loss before tax | (685,309 | ) | (847,537 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
(171,327 |
) |
(161,032 |
) |
Effects of: |
Depreciation in excess of capital allowances | 139,319 | 124,150 |
Utilisation of tax losses | 13,850 | 78,293 |
Total tax (credit)/charge | (18,158 | ) | 41,411 |
7. | 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. |
8. | PRIOR YEAR ADJUSTMENT |
A prior period adjustment has been made to allow for understated accruals in 2023 financial statements. The impact on the 2023 financial statements was to increase creditors and reduce reserves by £87,710. |
9. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | 5,416,647 | 25,000 | 5,441,647 |
Additions | 122,954 | - | 122,954 |
At 31 March 2024 | 5,539,601 | 25,000 | 5,564,601 |
AMORTISATION |
At 1 April 2023 | 1,094,778 | 18,402 | 1,113,180 |
Amortisation for year | 577,049 | 6,598 | 583,647 |
At 31 March 2024 | 1,671,827 | 25,000 | 1,696,827 |
NET BOOK VALUE |
At 31 March 2024 | 3,867,774 | - | 3,867,774 |
At 31 March 2023 | 4,321,869 | 6,598 | 4,328,467 |
RGM TOPCO LIMITED (Registered number: NI675553) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
9. | INTANGIBLE FIXED ASSETS - continued |
Company |
Goodwill |
£ |
COST |
At 1 April 2023 |
Additions |
At 31 March 2024 |
AMORTISATION |
At 1 April 2023 |
Amortisation for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Long | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2023 | 73,407 | 951,738 | 197,459 | 416,983 | 1,639,587 |
Additions | - | 78,750 | 5,434 | 131,427 | 215,611 |
Disposals | - | (23,336 | ) | - | (37,336 | ) | (60,672 | ) |
At 31 March 2024 | 73,407 | 1,007,152 | 202,893 | 511,074 | 1,794,526 |
DEPRECIATION |
At 1 April 2023 | 17,733 | 531,328 | 135,250 | 153,191 | 837,502 |
Charge for year | 13,918 | 105,804 | 21,118 | 83,947 | 224,787 |
Eliminated on disposal | - | (19,961 | ) | - | (24,053 | ) | (44,014 | ) |
At 31 March 2024 | 31,651 | 617,171 | 156,368 | 213,085 | 1,018,275 |
NET BOOK VALUE |
At 31 March 2024 | 41,756 | 389,981 | 46,525 | 297,989 | 776,251 |
At 31 March 2023 | 55,674 | 420,410 | 62,209 | 263,792 | 802,085 |
Fixed assets with a carrying value of £554,356 (2023: £513,143) are held under finance leases. The depreciation charge for the year on these assets was £150,737 (2023: £168,650). |
RGM TOPCO LIMITED (Registered number: NI675553) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
11. | STOCKS |
Group |
2024 | 2023 |
as restated |
£ | £ |
Stocks | 450,999 | 502,412 |
Work-in-progress | 4,134,496 | 4,348,420 |
4,585,495 | 4,850,832 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
as restated | as restated |
£ | £ | £ | £ |
Trade debtors | 2,021,946 | 1,891,095 |
Other debtors | 40,938 | 84,026 |
VAT | 87,907 | 193,810 |
Prepayments and accrued income | 21,808 | 26,753 |
2,172,599 | 2,195,684 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 15) | 1,115,991 | 1,160,926 |
Hire purchase contracts (see note 16) | 201,419 | 229,344 |
Trade creditors | 1,619,726 | 1,819,649 |
Credit Card | - | 63,438 | - | - |
Amounts owed to group undertakings | - | - |
Social security and other taxes | 117,567 | 163,127 |
Other creditors | 576,807 | 383,258 |
Accruals | 90,973 | 95,473 | - | - |
Directors' current accounts | 873,679 | 956,746 | - | - |
4,596,162 | 4,871,961 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans (see note 15) | 238,829 | 405,368 |
Other loans (see note 15) | 3,182,500 | 3,182,500 |
Hire purchase contracts (see note 16) | 251,085 | 229,858 |
Accruals and deferred income | 889,139 | 519,837 |
4,561,553 | 4,337,563 |
RGM TOPCO LIMITED (Registered number: NI675553) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
as restated | as restated |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 883,080 | 930,517 |
Bank loans | 232,911 | 230,409 |
1,115,991 | 1,160,926 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 232,911 | 230,409 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 5,918 | 174,959 |
Other loans - 2-5 years | 3,182,500 | 3,182,500 |
3,188,418 | 3,357,459 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
as restated |
£ | £ |
Net obligations repayable: |
Within one year | 201,419 | 229,344 |
Between one and five years | 251,085 | 229,858 |
452,504 | 459,202 |
RGM TOPCO LIMITED (Registered number: NI675553) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
17. | SECURED DEBTS |
Danske Bank have an all monies debenture held over the assets of the company. |
As well as an all monies circular guarantee and indemnity. A lien on all securities or other property of the guarantors held by the bank whether for safe custody or otherwise. |
Fixed & floating charge - all monies. By way of fixed equitable charge (I) all purchased debts being any book debts as defined in the agreement, purchased or purported to be purchased by the security holder pursuant to the agreement the ownership of which fail to vest absolutely and effectively in the security holder for any reason and (ii) all other debts, being those other than the purchased debts, now or at any time hereafter owing or becoming due to the company on any account whatsoever and (iii) all associated rights as defined in the agreement and reference to " a debt" and to a "contract of sale" in or in connection with such definition shall include reference to an other debt and to any contract giving rise to an other debt. By way of a floating charge all the undertaking and all the rights and assets of the company whatsoever and wheresoever both present and future including the company's stock in trade and its uncalled capital other than such property as shall be subject to the fixed charge above detailed from time to time. |
18. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
as restated |
£ | £ |
Deferred tax | 122,839 | 128,420 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2023 | 128,420 |
Provided during year | (5,581 | ) |
Balance at 31 March 2024 | 122,839 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | as restated |
£ | £ |
B ordinary | £1 | 2,162 | 2,162 |
A1 Ordinary | £1 | 2,162 | 2,162 |
A2 Ordinary | £1 | 2,198 | 2,198 |
6,522 | 6,522 |
RGM TOPCO LIMITED (Registered number: NI675553) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31 March 2024 |
20. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 April 2023 | 2,755,804 | 167,500 | 2,923,304 |
Prior year adjustment | (87,710 | ) | (87,710 | ) |
2,668,094 | 2,835,594 |
Deficit for the year | (667,151 | ) | (667,151 | ) |
At 31 March 2024 | 2,000,943 | 167,500 | 2,168,443 |