REGISTERED NUMBER: 11357321 (England and Wales) |
Riva Home Group Limited |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31st January 2024 |
REGISTERED NUMBER: 11357321 (England and Wales) |
Riva Home Group Limited |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31st January 2024 |
Riva Home Group Limited (Registered number: 11357321) |
Contents of the Consolidated Financial Statements |
for the year ended 31st January 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 |
Consolidated Statement of Comprehensive Income | 7 |
Consolidated Balance Sheet | 8 |
Company Balance Sheet | 9 |
Consolidated Statement of Changes in Equity | 10 |
Company Statement of Changes in Equity | 11 |
Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Financial Statements | 14 |
Riva Home Group Limited |
Company Information |
for the year ended 31st January 2024 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
East Yorkshire |
HU2 8BA |
Riva Home Group Limited (Registered number: 11357321) |
Group Strategic Report |
for the year ended 31st January 2024 |
The director presents his strategic report of the company and the group for the year ended 31st January 2024. |
REVIEW OF BUSINESS |
The directors consider the performance of the group to be satisfactory given trading conditions and the group to be well positioned for future growth. |
The group continued to invest for growth with the acquisition of Voyage Maison in June 23. This was an asset purchase with Voyage Maison employees being TUPED. As part of the acquisition exceptional costs of £234k were incurred shown in note 6.Voyage Maison is a premium brand that is widely recognised and offers a unique product proposition that appeals to a more affluent demographic which has helped Riva Home diversify and grow into a new space. |
The group continues to develop and invest in a multi-channel strategy and new categories. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The key risk for the business is the cost-of-living crisis. Riva continue to offer a wide range of product offerings covering all demographics to mitigate this risk |
KEY PERFORMANCE INDICATORS |
The company's ultimate shareholder is also the director of the company and is closely involved in the |
company's activities. The company directors therefore believe that the analysis of the company performance for the year using key performance indicators is not necessary as the ultimate shareholder already understands the development, performance, and position of the company. |
FINANCIAL RISK MANAGEMENT |
The main financial risks, to which the company is exposed are exchange rate and credit risk. The company manages these risks by entering into forward exchange contracts and having in place robust credit management processes and appropriate credit insurance. |
ON BEHALF OF THE BOARD: |
Riva Home Group Limited (Registered number: 11357321) |
Report of the Director |
for the year ended 31st January 2024 |
The director presents his report with the financial statements of the company and the group for the year ended 31st January 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the sale of homeware. |
DIVIDENDS |
During the year total dividends were paid amounting to £198,000 (2023 £361,200). The director does not recommend the payment of any further dividends. |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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. |
AUDITORS |
The auditors, Smailes Goldie, 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 |
Riva Home Group Limited |
Opinion |
We have audited the financial statements of Riva Home Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st January 2024 which comprise the Consolidated Statement of 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 31st January 2024 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Riva Home Group 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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
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: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
Report of the Independent Auditors to the Members of |
Riva Home Group Limited |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive. |
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. |
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 |
Statutory Auditor |
Regent's Court |
Princess Street |
Hull |
East Yorkshire |
HU2 8BA |
Riva Home Group Limited (Registered number: 11357321) |
Consolidated Statement of Comprehensive Income |
for the year ended 31st January 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 23,300,219 | 19,869,399 |
Cost of sales | 16,066,863 | 14,296,541 |
GROSS PROFIT | 7,233,356 | 5,572,858 |
Administrative expenses | 6,073,446 | 4,848,769 |
1,159,910 | 724,089 |
Other operating income | 244,466 | 289,121 |
OPERATING PROFIT | 5 | 1,404,376 | 1,013,210 |
Exceptional item | 6 | (234,914 | ) | - |
Goodwill ammortisation | 6 | (518,418 | ) | (518,418 | ) |
651,044 | 494,792 |
Interest receivable and similar income | 690 | - |
651,734 | 494,792 |
Interest payable and similar expenses | 7 | 439,077 | 183,923 |
PROFIT BEFORE TAXATION | 212,657 | 310,869 |
Tax on profit | 8 | 162,700 | 167,707 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
49,957 |
143,162 |
Profit attributable to: |
Owners of the parent | 49,957 | 143,162 |
Total comprehensive income attributable to: |
Owners of the parent | 49,957 | 143,162 |
Riva Home Group Limited (Registered number: 11357321) |
Consolidated Balance Sheet |
31st January 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 2,851,298 | 3,369,715 |
Tangible assets | 12 | 2,242,867 | 2,553,859 |
Investments | 13 | - | - |
5,094,165 | 5,923,574 |
CURRENT ASSETS |
Stocks | 14 | 7,272,837 | 7,003,908 |
Debtors | 15 | 4,700,163 | 4,645,321 |
Cash at bank and in hand | 332,256 | 147,863 |
12,305,256 | 11,797,092 |
CREDITORS |
Amounts falling due within one year | 16 | 8,961,524 | 8,585,155 |
NET CURRENT ASSETS | 3,343,732 | 3,211,937 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
8,437,897 |
9,135,511 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(3,925,334 |
) |
(4,378,675 |
) |
PROVISIONS FOR LIABILITIES | 21 | (501,797 | ) | (598,027 | ) |
NET ASSETS | 4,010,766 | 4,158,809 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 1,200,100 | 1,200,100 |
Capital redemption reserve | 23 | 1,767,000 | 1,395,000 |
Retained earnings | 23 | 1,043,666 | 1,563,709 |
SHAREHOLDERS' FUNDS | 4,010,766 | 4,158,809 |
The financial statements were approved by the director and authorised for issue on 18th October 2024 and were signed by: |
J Green - Director |
Riva Home Group Limited (Registered number: 11357321) |
Company Balance Sheet |
31st January 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 563,687 | 575,029 |
The financial statements were approved by the director and authorised for issue on |
Riva Home Group Limited (Registered number: 11357321) |
Consolidated Statement of Changes in Equity |
for the year ended 31st January 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st February 2022 | 1,200,100 | 2,153,747 | 1,023,000 | 4,376,847 |
Changes in equity |
Total comprehensive income | - | 143,162 | - | 143,162 |
Dividends | - | (361,200 | ) | - | (361,200 | ) |
Redemption of preference |
shares | - | (372,000 | ) | 372,000 | - |
Balance at 31st January 2023 | 1,200,100 | 1,563,709 | 1,395,000 | 4,158,809 |
Changes in equity |
Total comprehensive income | - | 49,957 | - | 49,957 |
Dividends | - | (198,000 | ) | - | (198,000 | ) |
Redemption of preference |
shares | - | (372,000 | ) | 372,000 | - |
Balance at 31st January 2024 | 1,200,100 | 1,043,666 | 1,767,000 | 4,010,766 |
Riva Home Group Limited (Registered number: 11357321) |
Company Statement of Changes in Equity |
for the year ended 31st January 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st February 2022 |
Changes in equity |
Total comprehensive income | - |
Dividends | - | ( |
) | - | ( |
) |
Redemption of preference |
shares | - | (372,000 | ) | 372,000 | - |
Balance at 31st January 2023 |
Changes in equity |
Total comprehensive income | - |
Dividends | - | ( |
) | - | ( |
) |
Redemption of preference |
shares | - | (372,000 | ) | 372,000 | - |
Balance at 31st January 2024 |
Riva Home Group Limited (Registered number: 11357321) |
Consolidated Cash Flow Statement |
for the year ended 31st January 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,429,070 | 718,333 |
Interest paid | (438,531 | ) | (174,458 | ) |
Interest element of hire purchase payments paid |
- |
(8,882 |
) |
Finance costs paid | (546 | ) | - |
Tax paid | (230,853 | ) | (121,258 | ) |
Net cash from operating activities | 1,759,140 | 413,735 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (270,041 | ) | (825,367 | ) |
Sale of tangible fixed assets | 114,193 | 95,547 |
Interest received | 690 | - |
Net cash from investing activities | (155,158 | ) | (729,820 | ) |
Cash flows from financing activities |
Net movement in stock loan | (450,699 | ) | (291,961 | ) |
Preference share redemption | (372,000 | ) | (372,000 | ) |
Advances on invoice financing facilities | (265,085 | ) | 952,363 |
Repayment of long term loans | (20,632 | ) | - |
Capital repayments in year | (113,173 | ) | (22,424 | ) |
Equity dividends paid | (198,000 | ) | (361,200 | ) |
Non-equity dividends paid | - | (583 | ) |
Net cash from financing activities | (1,419,589 | ) | (95,805 | ) |
Increase/(decrease) in cash and cash equivalents | 184,393 | (411,890 | ) |
Cash and cash equivalents at beginning of year |
2 |
147,863 |
559,753 |
Cash and cash equivalents at end of year |
2 |
332,256 |
147,863 |
Riva Home Group Limited (Registered number: 11357321) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 31st January 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 212,657 | 310,869 |
Depreciation charges | 470,663 | 304,421 |
Profit on disposal of fixed assets | (3,823 | ) | (7,844 | ) |
Goodwill ammortisation | 518,417 | 518,418 |
Finance costs | 439,077 | 183,923 |
Finance income | (690 | ) | - |
1,636,301 | 1,309,787 |
Increase in stocks | (268,929 | ) | (1,172,965 | ) |
(Increase)/decrease in trade and other debtors | (54,842 | ) | 894,974 |
Increase/(decrease) in trade and other creditors | 1,116,540 | (313,463 | ) |
Cash generated from operations | 2,429,070 | 718,333 |
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 31st January 2024 |
31/1/24 | 1/2/23 |
£ | £ |
Cash and cash equivalents | 332,256 | 147,863 |
Year ended 31st January 2023 |
31/1/23 | 1/2/22 |
£ | £ |
Cash and cash equivalents | 147,863 | 559,753 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/2/23 | Cash flow | At 31/1/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 147,863 | 184,393 | 332,256 |
147,863 | 184,393 | 332,256 |
Debt |
Finance leases | (113,173 | ) | 113,173 | - |
Debts falling due within 1 year | (4,232,739 | ) | 450,699 | (3,782,040 | ) |
Debts falling due after 1 year | (4,317,966 | ) | 392,632 | (3,925,334 | ) |
(8,663,878 | ) | 956,504 | (7,707,374 | ) |
Total | (8,516,015 | ) | 1,140,897 | (7,375,118 | ) |
Riva Home Group Limited (Registered number: 11357321) |
Notes to the Consolidated Financial Statements |
for the year ended 31st January 2024 |
1. | STATUTORY INFORMATION |
Riva Home Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statement 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. The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value. |
The financial statements are presented in stirling, which is the functional currency of the company, and all values are rounded to the nearest pound (£). |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Going Concern |
In forming their going concern assessment, the directors have reviewed the anticipated trading performance over the next 12 months. Having considered this and other available factors, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of 12 months from the date of approval of these financial statements and have therefore adopted the going concern basis in preparing these financial statements. |
Basis of consolidation |
The group financial statements consolidate the financial statements of Riva Home Group Limited and its subsidiaries for the year ended 31st January 2023. The subsidiary undertakings have been accounted for under the acquisition method of accounting. No company Statement of comprehensive Income is presented for Riva Home Group Limited as permitted by Section 408 of the Companies Act 2006. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Riva Home Group Limited (Registered number: 11357321) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st January 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of value added tax and trade discounts. The policies adopted for the recognition of turnover are as follows: |
Sales of goods |
Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on the date of dispatch of the goods. |
Leases |
Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
Goodwill |
Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
Leasehold improvements | - over the lease term |
Plant and machinery | - 10% and 20% on cost |
Fixtures and Fittings | - 10% and 20% on cost |
Motor Vehicles | - 20% on cost |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the average cost method. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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. |
Riva Home Group Limited (Registered number: 11357321) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st January 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Pension costs and other post-retirement benefits |
When employees have rendered service to the group short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
The group operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable. |
Loans and borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value. |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
Provisions |
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Riva Home Group Limited (Registered number: 11357321) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st January 2024 |
3. | TURNOVER |
The turnover and profit before tax are attributable to the one principal activity of the company. |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 4,685,866 | 4,160,817 |
Social security costs | 415,133 | 361,034 |
Other pension costs | 104,591 | 87,721 |
5,205,590 | 4,609,572 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Management and administration | 41 | 26 |
Sales | 105 | 109 |
2024 | 2023 |
£ | £ |
Director's remuneration | 50,000 | 50,000 |
Director's pension contributions to money purchase schemes | 6,000 | 6,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 470,663 | 290,330 |
Depreciation - assets on hire purchase contracts | - | 14,091 |
(Profit)/loss on disposal of fixed assets | (3,823 | ) | 8,908 |
Goodwill amortisation | 518,417 | 518,418 |
Auditors' remuneration - parent | 5,000 | 5,000 |
Auditors' remuneration - subsidiaries | 25,000 | 25,000 |
Foreign exchange differences | 2,021 | (69,648 | ) |
Other operating leases | 819,127 | 691,727 |
6. | EXCEPTIONAL ITEMS |
The exceptional costs which are included in the Statement of Comprehensive Income relate to costs incurred in an asset purchase with Voyage Maison as highlighted in the strategic report. |
GOODWILL AMORTISATION |
Goodwill on consolidation is being amortised in line with the stated accounting policy (see note 2). |
Riva Home Group Limited (Registered number: 11357321) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st January 2024 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | 185,413 | 19,487 |
Bank loan interest | 6,771 | - |
Bank stocking loans interest | 246,347 | 154,971 |
Hire purchase | - | 8,882 |
A redeemable preference dividend | 390 | 420 |
B redeemable preference dividend | 36 | 43 |
Irredeemable preference dividend | 120 | 120 |
439,077 | 183,923 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 258,930 | 60,644 |
Deferred tax | (96,230 | ) | 107,063 |
Tax on profit | 162,700 | 167,707 |
Reconciliation of total tax 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: |
2024 | 2023 |
£ | £ |
Profit before tax | 212,657 | 310,869 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
53,164 |
59,065 |
Effects of: |
Expenses not deductible for tax purposes | 8,928 | 3,297 |
Capital allowances in excess of depreciation | (18,546 | ) | (18,849 | ) |
Goodwill ammortisation not deductible for tax purposes | 129,605 | 98,499 |
Change in rate of Deferred tax | (10,451 | ) | 25,695 |
Total tax charge | 162,700 | 167,707 |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
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. |
Riva Home Group Limited (Registered number: 11357321) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st January 2024 |
10. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim - paid | 198,000 | 361,200 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1st February 2023 |
and 31st January 2024 | 5,184,178 |
AMORTISATION |
At 1st February 2023 | 1,814,463 |
Amortisation for year | 518,417 |
At 31st January 2024 | 2,332,880 |
NET BOOK VALUE |
At 31st January 2024 | 2,851,298 |
At 31st January 2023 | 3,369,715 |
12. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Leasehold | Plant and | and | Motor |
Improvements | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st February 2023 | 84,175 | 744,747 | 1,975,360 | 382,540 | 3,186,822 |
Additions | 16,667 | 131,107 | 99,517 | 22,750 | 270,041 |
Disposals | - | - | - | (196,888 | ) | (196,888 | ) |
At 31st January 2024 | 100,842 | 875,854 | 2,074,877 | 208,402 | 3,259,975 |
DEPRECIATION |
At 1st February 2023 | 6,312 | 74,489 | 359,443 | 192,719 | 632,963 |
Charge for year | 9,252 | 162,405 | 265,615 | 33,391 | 470,663 |
Eliminated on disposal | - | - | - | (86,518 | ) | (86,518 | ) |
At 31st January 2024 | 15,564 | 236,894 | 625,058 | 139,592 | 1,017,108 |
NET BOOK VALUE |
At 31st January 2024 | 85,278 | 638,960 | 1,449,819 | 68,810 | 2,242,867 |
At 31st January 2023 | 77,863 | 670,258 | 1,615,917 | 189,821 | 2,553,859 |
Riva Home Group Limited (Registered number: 11357321) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st January 2024 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1st February 2023 | 149,552 |
Disposals | (148,790 | ) |
Transfer to ownership | (762 | ) |
At 31st January 2024 | - |
DEPRECIATION |
At 1st February 2023 | 53,627 |
Eliminated on disposal | (52,579 | ) |
Transfer to ownership | (1,048 | ) |
At 31st January 2024 | - |
NET BOOK VALUE |
At 31st January 2024 | - |
At 31st January 2023 | 95,925 |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in group undertakings | 2023 | 2022 |
£ | £ |
Cost |
At 1st February 2022 | 8,062,046 | 8,062,046 |
Additions | - | - |
At 31st January 2023 | 8,062,046 | 8,062,046 |
Details of group undertaking at the year end are as follows: |
Proportion |
Name of company | Held | Nature of business |
Riva Paoletti Limited* | Ordinary shares | 100% | Distribution wholesale of drapery goods |
Ismail Textiles Limited | Ordinary shares | 100% | Distribution wholesale of drapery goods |
Riva EL Limited | Ordinary shares | 100% | Management company |
Distro Logistics Limited* | Ordinary shares | 100% | Management company |
* Shares of the undertaking marked with an asterisk (*) are held directly by the company. |
All of the above companies are registered in England. |
Riva Home Group Limited (Registered number: 11357321) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st January 2024 |
14. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Stocks | 7,046,837 | 6,666,908 |
Work-in-progress | 226,000 | 337,000 |
7,272,837 | 7,003,908 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 3,686,295 | 2,732,712 |
Amounts owed by group undertakings | - | - |
Other debtors | 471,631 | 1,357,518 |
Prepayments and accrued income | 542,237 | 555,091 |
4,700,163 | 4,645,321 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 3,410,040 | 3,860,739 |
Preference shares (see note 18) | 372,000 | 372,000 |
Hire purchase contracts (see note 19) | - | 52,464 |
Trade creditors | 311,314 | 609,229 |
Corporation tax | 260,539 | 232,462 |
Social security and other taxes | 752,964 | 720,645 |
VAT | - | - | 38,976 | - |
Other creditors | 2,866,923 | 2,053,973 |
Accruals and deferred income | 987,744 | 683,643 |
8,961,524 | 8,585,155 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 18) | 37,334 | 57,966 |
Preference shares (see note 18) | 3,888,000 | 4,260,000 |
Hire purchase contracts (see note 19) | - | 60,709 |
3,925,334 | 4,378,675 |
Riva Home Group Limited (Registered number: 11357321) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st January 2024 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank stocking loans | 3,410,040 | 3,860,739 |
Preference shares | 372,000 | 372,000 | 372,000 | 372,000 |
3,782,040 | 4,232,739 |
Amounts falling due between one and | two years: |
Bank loans 1-2 years | 20,298 | 20,043 |
Preference shares | 372,000 | 372,000 | 372,000 | 372,000 |
392,298 | 392,043 |
Amounts falling due between two and | five years: |
Bank loans 2-5 years | 17,036 | 37,923 |
Preference shares | 1,116,000 | 1,116,000 | 1,116,000 | 1,116,000 |
1,133,036 | 1,153,923 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Preference shares | 2,400,000 | 2,772,000 | 2,400,000 | 2,772,000 |
Details of shares shown as liabilities are as follows: |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
A redeemable preference | £1 | 3,900,000 | 4,200,000 |
B redeemable preference | £1 | 360,000 | 432,000 |
4,260,000 | 4,632,000 |
Riva Home Group Limited (Registered number: 11357321) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st January 2024 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | - | 52,464 |
Between one and five years | - | 60,709 |
- | 113,173 |
Group |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year | 898,829 | 787,440 |
Between one and five years | 2,806,654 | 2,660,780 |
In more than five years | 3,764,583 | 4,089,583 |
7,470,066 | 7,537,803 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Hire purchase contracts | - | 113,173 |
Stocking loan | 3,389,997 | 3,840,952 |
Invoice financing facility | 1,784,704 | 2,049,789 |
5,174,701 | 6,003,914 |
The loans and overdrafts are secured by fixed and floating charges over the assets of the company. |
Hire purchase liabilities are secured over the assets to which the agreement relate. |
21. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 501,797 | 598,027 |
Riva Home Group Limited (Registered number: 11357321) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st January 2024 |
21. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1st February 2023 | 598,027 |
Provided during year | (96,230 | ) |
Balance at 31st January 2024 | 501,797 |
22. | CALLED UP SHARE CAPITAL |
The ordinary share capital of £100 (2023 £100) is allotted, called up and fully paid. |
The irredeemable preference share capital of £1,200,000 (2023 £1,200,000) is allotted, called up and fully paid. |
23. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1st February 2023 | 1,563,709 | 1,395,000 | 2,958,709 |
Profit for the year | 49,957 | - | 49,957 |
Dividends | (198,000 | ) | - | (198,000 | ) |
Redemption of preference share | (372,000 | ) | 372,000 | - |
At 31st January 2024 | 1,043,666 | 1,767,000 | 2,810,666 |
24. | CAPITAL COMMITMENTS |
2024 | 2023 |
£ | £ |
Contracted but not provided for in the |
financial statements | 84,065 | 37,587 |
25. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
The amount due to the group from the directors at the the year end were £16,887 (2023 - Nil). The maximum amount outstanding in the year was £16,887. Interest charged is variable and equals the groups cost of borrowing. No amounts have been waived or written off during the current or prior periods. |
26. | RELATED PARTY DISCLOSURES |
Other related parties |
2024 | 2023 |
£ | £ |
Amount due from related party | 407,275 | 1,332,000 |
During the year, a total of key management personnel compensation of £ 362,399 (2023 - £ 365,504 ) was paid. |
Riva Home Group Limited (Registered number: 11357321) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st January 2024 |
27. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is J Green. |