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REGISTERED NUMBER: 00178738 (England and Wales)
























STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2023

FOR

RUSSELL'S (KIRBYMOORSIDE) LIMITED

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 7

Report of the Independent Auditors 9

Statement of Comprehensive Income 12

Balance Sheet 13

Statement of Changes in Equity 14

Cash Flow Statement 15

Notes to the Cash Flow Statement 16

Notes to the Financial Statements 18


RUSSELL'S (KIRBYMOORSIDE) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 OCTOBER 2023







DIRECTORS: Mr H E Shaw
Mr J Shaw
Mr W G P Shaw
Mr T P Russell
Mr R N Whitehead
Mr D Ward
Mr J E Nash
Mr A D J Robinson
Mr C J Kellett
Mrs J Long





SECRETARY: Mr C J Kellett





REGISTERED OFFICE: Eden Works
Old Malton
Malton
North Yorkshire
YO17 6RD





REGISTERED NUMBER: 00178738 (England and Wales)





AUDITORS: Fortus Audit LLP
Chartered Accountants & Statutory Auditors
5&6 Manor Court
Manor Garth
Scarborough
North Yorkshire
YO11 3TU

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023


The directors present their strategic report for the year ended 31 October 2023.

REVIEW OF BUSINESS & KEY PERFORMANCE INDICATORS

The principal activity of the company continues to be the sale and servicing of agricultural and groundcare machinery and associated accessories and the directors identify the prosperity of these sectors as significant factors influencing the performance of the company and are committed to meeting the challenge of operating within these markets.

The directors consider turnover, gross profit, profit before taxation and amounts added to reserves are the financial key performance indicators, consideration of which are necessary for an understanding of the development, performance and position of the company's business.

During the financial year:

- Turnover increased by 14.6% to £105,596,364 (2022: £92,243,914); and
- Gross profit reduced by 0.6% to £15,212,145 (2022: £15,305,216); and
- Profit before taxation increased by 24.4% to £2,879,419 (2022: £2,314,326); and
- Comprehensive income added to the reserves increased by 23.3% to £2,597,587 (2022: £2,105,946).

The amount transferred annually to/from reserves is subject to adjustments required to restate the annual cost, assets and liabilities of the company's defined benefit pension scheme in accordance with Financial Reporting Standard 102. The required disclosure is included as note 21 to the accounts.

Other relevant key performance indicators include:

Ratio summary

2023 2022 2021 2020 2019
Gross profit 14.40% 16.59% 13.72% 14.22% 14.77%
Net profit 2.70% 2.50% 2.27% 1.76% 1.56%
Liquidity 115.20% 113.25% 116.66% 118.40% 110.16%
Trading 52.19% 46.88% 29.25% 37.02% 42.07%
Gearing 7.26% 16.29% 12.37% 13.72% 16.33%

The continued strong performance in terms of both yearly profits and cash generation enables the company to react quickly to any commercial opportunities that are identified. The two principal opportunities that the company identified and undertook during the financial year were :

As noted in the prior year financial statements the company brought to market an energy storage solution allowing businesses to reduce their own carbon footprint. This business was hived down during the year to it’s own legal entity (Green Power Hire Limited) 50% owned by Russell’s (Kirbymoorside) Limited and subsequently sold to Speedy Hire PLC on 9th October 2023.

The business acquired land & buildings at our previously leased Rotherham depot and some additional land at our Darley Dale depot.

PRINCIPAL RISKS AND UNCERTAINTIES

Principal risks to the Company include:

Commercial and market environment
External factors including national or market trends, political or regulatory change (including the UK's exit from the EU) and other external factors have an impact on customer spending and market confidence. Although any long-term benefits of Brexit are difficult to predict, in the short-term, the UK's exit from the EU has had little impact on customer confidence as a result of further details being provided by the UK government relating to proposed changes in policy in respect of agriculture which have provided a level of certainty for the agricultural sector.


RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

Lower than anticipated demand could result in increased competition, tighter margins and the transfer of commercial and financial risk down the supply chain together with an adverse impact on revenues, profits, overhead recovery and cash generation.

Changes in customer spending or other external factors could lead to sales delays or cancellations.

In mitigation, the Company undertakes :

- Regular reviews of market trends to ensure actual and anticipated impacts from macroeconomic risks are minimised and managed effectively; and
- Regular monitoring and reporting of financial performance, orders secured, prospects and marshalling of market opportunities is undertaken on a coordinated basis; and
- Close engagement with both customers and suppliers and monitoring of payment cycles.

Supply chain
The Company is reliant on certain key supply chain partners for the successful completion of sales to meet customers' expectations.

The failure of a key supplier or a breakdown in relationships with a key supplier could result in some short-term delay and disruption to the Company's operations which may have a negative impact on the Company's reputation, thereby adversely impacting financial performance.

In mitigation, the Company has :

- Initiatives in place to select supply chain partners that match our expectations in terms of quality, sustainability and commitment to customer service; and
- Strong relationships with key suppliers including a programme of regular meetings and reviews; and
- Ongoing reassessment of the strategic value of supply relationships and the potential to utilise alternative arrangements.

People
The ability to identify, attract, develop and retain talent is crucial to satisfy the current and future needs of the Company. Skills shortages are likely to remain an issue for the foreseeable future and it can become increasingly difficult to recruit capable people and retain key employees, especially those targeted by competitors.

The loss of key people could adversely impact the Company's existing market position and reputation.

In mitigation, the Company has :

- Obtained external HR support and the Company's employment policies and people strategy were refreshed; and
- Annual appraisal process providing two-way feedback on performance undertaken with employees to highlight opportunities for additional training; and
- Attractive remuneration packages benchmarked against competitors in our industry, where possible; and
- Trainee and apprenticeship schemes in place to safeguard an inflow of new talent; and
- Continuing to improve internal communications in 2023.

Health and safety
Employees of the company work in potentially hazardous situations, which require continuous monitoring and management of health and safety risks. Continued changes in legislation can result in increased risks to both individuals and the company. Ineffective governance over and management of these risks could result in serious injury, death and damage to property or equipment.

A serious health and safety incident could lead to the potential for legal proceedings, regulatory intervention and potential loss of reputation.

In mitigation, the company has :


RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

- External SHE consultants who provide support and training to senior management together with undertaking regular safety audits; and
- Established safety systems, site visits, safety audits, monitoring and reporting, and detailed health and safety policies and procedures in place which focus on prevention and risk reduction and elimination; and
- SHE issues and risks are continually monitored at all sites and are reviewed on a monthly basis by senior management; and
- Thorough and regular employee training programmes; and
- Regular reporting of, and investigation and root cause analysis of accidents and near misses.

Information technology
The Company's core IT systems must be managed effectively, to avoid interruptions, keep pace with new technologies and respond to threats to data and security.

Technology failure, cyber-attack or property damage could lead to IT disruption with resultant loss of confidential data, loss of system functionality and business interruption together with a negative reputational impact and potential breaches of regulations.

In mitigation, the Company undertakes :

- Significant investments in IT systems which are subject to board approval, including anti-virus software, off-site and on-site backups, and software maintenance agreements; and
- Robust business continuity planning on a systematic basis; and
- Data protection and information security policies are in place across the Company and have been updated for GDPR; and
- Cyber threats and how they manifest themselves are communicated regularly to all employees (including practical guidance on how to respond to perceived risks); and
- Insurance covers certain losses and is reviewed annually to establish further opportunities for affordable risk transfer to reduce the financial impact of this risk.

Environmental and climate change
Many businesses are finding that their environmental risks are material to their operations and supply chains or are likely to become so. This may take the form of physical risks from climate change, or business risk from volatile energy and commodity prices.

Organisations of all sizes are increasingly expected to measure and report on their environmental performance as investors, shareholders and other stakeholders increasingly request better environmental disclosures in annual reports and accounts. The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 impose new obligations on directors to report information relating to the impact the business's activities have on the environment. The Regulations came into force on 1 April 2019 and apply to financial years starting on or after 1 April 2019.

The Company's energy usage and CO2 emissions are detailed in the following table :

Energy
source

Year Ended 31 October 2023

Year Ended 31 October 2022



Emissions
(Kg Co2)

% age
split
Energy
use
(kWh)

% age
split

Emissions
(Kg Co2)

% age
split
Energy
use
(kWh)

% age
split
Fleet
transport

1,225,443

82.4%

5,089,432

72.6%

1,048,587

79.0%

4,361,146

71.9%
Electricity 0 0.0% 802,845 11.4% 0 0.0% 508,197 8.4%
Gas 62,031 4.7% 339,820 5.4% 68,993 5.2% 375,227 6.2%
Heating oil 168,095 12.8% 647,743 10.3% 156,155 11.8% 591,567 9.8%
Red diesel 31,948 2.4% 132,523 2.1% 54,195 4% 225,277 3.7%
1,505,957 100% 7,012,363 100% 1,327,930 100% 6,061,414 100%

The methodology used in preparing these are :

- Fleet transport fuel use is measured from a mixture of fuel card data, returns from fuel drawn from company diesel tanks and employee expense returns.

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

- Electricity and gas consumption is measured from monthly meter readings. The Company’s contracts for the supply of electricity are with suppliers who generate all their electricity by zero carbon methods (i.e. nuclear and renewables) & therefore the Company’s CO2 emissions are zero.
- Red diesel consumption is drawn from invoices for the supply of fuel.
- Heating oil consumption is drawn from invoices for the supply of fuel.

Carbon usage is calculated using conversion factors supplied by The Carbon Trust (https://www.carbontrust.com/resources/conversion-factors-energy-and-carbon-conversion-guide) with the exception of electricity.

Intensity Ratio
An Intensity Ratio is a way of assessing the CO2 emissions generated by the Company by way of an appropriate business metric. The metric chosen is Turnover.

2023 2022
Turnover 105,596 92,244
Total Carbon Emissions (Te) 1,488 1,328
Intensity ratio (tCO2e/£M) 14.09 14.40

As a major user of energy, the Company has an important role to play in tackling climate change by reducing the CO2 emissions arising from its operations. The Company is committed to responsible energy management and the best possible standards of energy efficiency in compliance with applicable legislation, in particular, the Energy Saving Opportunity Scheme (ESOS) and ESOS Phase 2. The directors seek to engage the continuous commitment of all stakeholders in the business and through them will identify potential areas for increased efficiency, minimising waste, and monitor and reduce energy consumption. The Company is committed to the following :

- Increasing energy efficiency in order to reduce energy consumption; and
- Reducing consumption of fossil fuels in order to reduce emissions of CO2 and other harmful greenhouse gases; and
- Investing in clean, energy efficient sustainable technologies; and
- Reducing the environmental impact of our business activities; and
- Reducing consumption of raw and processed materials and minimising waste disposal; and
- Supporting the purchase of energy-efficient products and services as appropriate to the business.

The Company views the above commitments as long-term investments for the future although it continually reviews internal and external factors in order to introduce policies that will have an impact, although likely to be small, in the near-term. These include :

- Installation of energy efficient lighting at all our depots; and
- Carbon neutral energy supplies; and
- Carbon-offsetting where current technology is insufficiently mature to reduce carbon emissions.
- Installation of solar panels, where practicable, at depots to reduce the dependency on external energy suppliers.

The Company aims to introduce the following in order to meet the long-term commitments above :

- Conversion of motor fleet to fully electric vehicles when the technology has matured sufficiently to ensure no impact on the Company's operations.

SECTION 172 STATEMENT
Section 172 of the Companies Act 2006 requires each director to act in the way they consider, in good faith, would most likely promote the success of the Company for the benefit of its stakeholders.

The directors welcome their responsibilities to promote the success of the Company in accordance with section 172. They ensure that all decisions are taken for the long term, and collectively and individually aim to always uphold the highest standards of conduct. Similarly, they acknowledge that the business can only grow and prosper over the long-term if it understands and respects the views and needs of the Company's shareholders, customers, employees, suppliers and other stakeholders to whom we are accountable, as well as the environment we operate within.

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023


In doing this, the director must have regard, amongst other matters, to :

- The Company's reputation for high standards of business conduct;
- The likely consequences of any decision in the long term;
- The interests of the Company's employees;
- The need to foster the Company's business relationships with customers, suppliers and others; and
- The impact of the Company's operations on the community and the environment.

While the directors have overall responsibility for managing relationships with all our stakeholders, typically in larger companies, the directors fulfil their duties partly through a governance framework that delegates day-to-day decision making to the employees of the Company. The directors recognise that such delegation needs to be part of a robust governance structure, which covers our values, how we engage with our stakeholders, and how the directors assure themselves that the governance structure and systems of controls continue to be robust. The directors monitor the Company's culture to ensure that high standards of business conduct are maintained by all employees.

A key business decision for the directors is ensuring that they continue to have the right strategy in place for sustainable growth of the Company. Further details of this strategy are set out in the earlier sections of the strategic report. The Board of Directors now consists of five executive and four non-executive directors who meet on a quarterly basis. With three of the four non-executive directors holding a majority of the Company's issued share capital, the majority of shareholders are directly involved in formulating the Company's strategy and are kept up to date on financial performance, health and safety, corporate governance and other regulatory issues.

Open, constructive dialogue with our employees and other key stakeholders is critical to inform the directors' decisions. The directors keep employees informed of relevant Company information including financial performance and any external factors and significant events that might have an impact on them through emails and briefing sessions from executive directors and other members of the senior management team. The directors endeavour to visit the individual depots on a regular basis to discuss ongoing operational performance and promote constructive dialogue with all employees.

The directors are focused on and are committed to the Company continuing to deliver excellent customer service at every stage of their purchase decision and alongside our customer service is our continued focus on product range development, to ensure our products meet the ever-changing needs of our customers. The Company communicates with its customer base via various newsletters etc. in order to promote the Company and keep customers up to date with the latest developments.

The Company has developed long-term relationships with our supply chain and work with them to achieve the best results for our customers. The Company has a timetable of senior contact with suppliers of strategic importance and hold regular meetings with suppliers, covering a broad range of topics including identifying and managing any incidents of modern slavery.

The directors are committed to minimising our impact on the national environment and local communities, as well as maintaining sustainable practices in all our disciplines.

ON BEHALF OF THE BOARD:





Mr C J Kellett - Secretary


11 October 2024

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 OCTOBER 2023


The directors present their report with the financial statements of the company for the year ended 31 October 2023.

DIVIDENDS
The total distribution of dividends made during the year ended 31 October 2023 was £110,000 (2022 : £110,000).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report.

Mr H E Shaw
Mr J Shaw
Mr W G P Shaw
Mr T P Russell
Mr R N Whitehead
Mr D Ward

Other changes in directors holding office are as follows:

Mr J E Nash - appointed 1 April 2023
Mr A D J Robinson - appointed 1 April 2023
Mr C J Kellett - appointed 3 May 2023
Mrs J Long - appointed 28 September 2023

INSURANCE
The company has purchased directors' and officers' liability insurance on behalf of the directors at a cost of £3,278 (2022 - £4,424).

DISCLOSURE IN THE STRATEGIC REPORT
The directors have elected to disclose matters considered to be of strategic importance to the company in the Strategic Report as per Section 414 of the Companies Act 2006.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material
departures disclosed and explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 OCTOBER 2023


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 company'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 company's auditors are aware of that information.

AUDITORS
The auditors, Fortus Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



Mr C J Kellett - Secretary


11 October 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
RUSSELL'S (KIRBYMOORSIDE) LIMITED


Opinion
We have audited the financial statements of Russell's (Kirbymoorside) Limited (the 'company') for the year ended 31 October 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 October 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the 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 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 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
RUSSELL'S (KIRBYMOORSIDE) LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of 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 seven, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK.

We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance.

We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.

Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above.

We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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
RUSSELL'S (KIRBYMOORSIDE) 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.




Frances Howard FCA (Senior Statutory Auditor)
for and on behalf of Fortus Audit LLP
Chartered Accountants & Statutory Auditors
5&6 Manor Court
Manor Garth
Scarborough
North Yorkshire
YO11 3TU

11 October 2024

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023

2023 2022
Notes £    £    £    £   

TURNOVER 2 105,596,364 92,243,914

Cost of sales 90,384,219 76,938,698
GROSS PROFIT 15,212,145 15,305,216

Administrative expenses 14,619,828 12,234,456
592,317 3,070,760

Other operating income 163,215 138,578
OPERATING PROFIT 4 755,532 3,209,338

Profit/loss on sale of operatn 5 4,628,636 -
Loss on hive down of
operations 5 (226,972 ) -
5,157,196 3,209,338

Interest receivable and similar income 2,220 292
Other finance income 22 33,000 1,000
35,220 1,292
5,192,416 3,210,630

Interest payable and similar expenses 6 2,312,997 896,304
PROFIT BEFORE TAXATION 2,879,419 2,314,326

Tax on profit 7 442,332 656,340
PROFIT FOR THE FINANCIAL YEAR 2,437,087 1,657,986

OTHER COMPREHENSIVE INCOME
Actuarial gains in defined benefit
pension scheme 225,000 605,000
Movement in deferred tax relating to net
defined benefit pension scheme surplus (64,500 ) (157,040 )
Income tax relating to components of
other comprehensive income

-

-
OTHER COMPREHENSIVE INCOME FOR THE
YEAR, NET OF INCOME TAX

160,500

447,960
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

2,597,587

2,105,946

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

BALANCE SHEET
31 OCTOBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 6 6
Tangible assets 10 11,522,848 13,842,634
Investments 11 - 50
11,522,854 13,842,690

CURRENT ASSETS
Stocks 12 47,169,908 36,069,861
Debtors 13 16,078,287 12,350,671
Cash in hand 8,598 8,007
63,256,793 48,428,539
CREDITORS
Amounts falling due within one year 14 55,706,629 42,816,374
NET CURRENT ASSETS 7,550,164 5,612,165
TOTAL ASSETS LESS CURRENT LIABILITIES 19,073,018 19,454,855

CREDITORS
Amounts falling due after more than
one year

15

(3,263,906

)

(5,587,839

)

PROVISIONS FOR LIABILITIES 20 (996,743 ) (1,348,734 )

PENSION ASSET 22 698,250 504,750
NET ASSETS 15,510,619 13,023,032

CAPITAL AND RESERVES
Called up share capital 21 110,000 110,000
Retained earnings 15,400,619 12,913,032
SHAREHOLDERS' FUNDS 15,510,619 13,023,032

The financial statements were approved by the Board of Directors and authorised for issue on 11 October 2024 and were signed on its behalf by:





Mr T P Russell - Director


RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 November 2021 110,000 10,917,086 11,027,086

Changes in equity
Dividends - (110,000 ) (110,000 )
Total comprehensive income - 2,105,946 2,105,946
Balance at 31 October 2022 110,000 12,913,032 13,023,032

Changes in equity
Dividends - (110,000 ) (110,000 )
Total comprehensive income - 2,597,587 2,597,587
Balance at 31 October 2023 110,000 15,400,619 15,510,619

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 7,876,112 1,962,766
Interest paid (2,064,714 ) (801,129 )
Interest element of hire purchase
payments paid

(248,283

)

(95,175

)
Tax paid (235,000 ) (222,384 )
Net cash from operating activities 5,328,115 844,078

Cash flows from investing activities
Purchase of intangible fixed assets - (6 )
Purchase of tangible fixed assets (12,442,927 ) (6,570,051 )
Purchase of fixed asset investments - (50 )
Sale of tangible fixed assets 11,935,282 988,165
Sale of fixed asset investments 50 -
Interest received - 292
Net cash from investing activities (507,595 ) (5,581,650 )

Cash flows from financing activities
New hire purchase in year 2,441,782 5,215,055
Hire purchase repayments in (4,508,884 ) (1,243,427 )
Loan repayments in year (219,523 ) (244,098 )
Equity dividends paid (110,000 ) (110,000 )
Net cash from financing activities (2,396,625 ) 3,617,530

Increase/(decrease) in cash and cash equivalents 2,423,895 (1,120,042 )
Cash and cash equivalents at beginning
of year

2

(2,724,841

)

(1,604,799

)

Cash and cash equivalents at end of
year

2

(300,946

)

(2,724,841

)

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2023 2022
£    £   
Profit before taxation 2,879,419 2,314,326
Depreciation charges 2,884,015 1,618,799
Profit on disposal of fixed assets (56,584 ) (28,993 )
Pension charge adjustment (33,000 ) (9,000 )
Finance income 35,220 1,000
Finance costs 2,312,997 896,304
Finance income (35,220 ) (1,292 )
7,986,847 4,791,144
Increase in stocks (11,100,047 ) (12,907,833 )
Increase in trade and other debtors (3,727,616 ) (2,462,617 )
Increase in trade and other creditors 14,716,928 12,542,072
Cash generated from operations 7,876,112 1,962,766

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 October 2023
31.10.23 1.11.22
£    £   
Cash and cash equivalents 8,598 8,007
Bank overdrafts (309,544 ) (2,732,848 )
(300,946 ) (2,724,841 )
Year ended 31 October 2022
31.10.22 1.11.21
£    £   
Cash and cash equivalents 8,007 24,252
Bank overdrafts (2,732,848 ) (1,629,051 )
(2,724,841 ) (1,604,799 )


RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.11.22 Cash flow At 31.10.23
£    £    £   
Net cash
Cash at bank and in hand 8,007 591 8,598
Bank overdrafts (2,732,848 ) 2,423,304 (309,544 )
(2,724,841 ) 2,423,895 (300,946 )
Debt
Finance leases (5,280,404 ) 2,067,102 (3,213,302 )
Debts falling due within 1 year (258,268 ) (6,921 ) (265,189 )
Debts falling due after 1 year (1,870,654 ) 226,443 (1,644,211 )
(7,409,326 ) 2,286,624 (5,122,702 )
Total (10,134,167 ) 4,710,519 (5,423,648 )

4. MAJOR NON-CASH TRANSACTIONS

The total of new finance leases and hire purchase contracts during the year was £2,441,782 (2022 - £5,215,055).

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023


1. ACCOUNTING POLICIES

General information and basis of preparation
Russell's (Kirbymoorside) Limited is a private company limited by shares incorporated in England, United Kingdom. The address of the registered office is given in the company information on page 1 of these financial statements. The nature of the company's operations and principal activities are the retailing and servicing of agricultural and ground care machinery.

The financial statements have been prepared in accordance with applicable accounting standards including 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 on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the company.

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.

Critical accounting judgements and key sources of estimation uncertainty
Preparation of the financial statements requires management to make significant judgements and estimates.
Provisions in respect of of both wholegoods and parts stock are included in the financial statements. Management assess stock on the basis of the amount of time it has been held by the company and on the basis of amount recoverable.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The policies adopted for the recognition of turnover are as follows:

Sale of goods
Turnover from the sale of goods, both machinery and parts, 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 costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually upon dispatch of the goods and with the issue of the associated invoice to the buyer.

Rendering of services
Turnover from the servicing of machinery is recognised upon completion of the service process and with the issue of the associated invoice to the customer.

Hire of equipment
For both short and long term hire, revenue is recognised over time as the hire period progresses. The stand-alone selling price is determined based on the contracted prices at which the company hires out the equipment under the specific contract with the customer and commences when the equipment is collected or has been delivered to a customer's premises and has been accepted by the customer. Revenue is recognised to the extent that ir is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. Therefore, the amount of revenue recognised is adjusted for expected returns, contract corrections and any negotiated rebate, which are estimated based on historic data.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2006 and 2023, has been amortised evenly over its estimated useful life of ten years.

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


1. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are recorded at cost less depreciation and any impairment. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold buildings- 2.5% to 5% on cost
Improvements to leasehold properties- At varying rates (see below)
Plant and machinery- At varying rates (see below)
Fixtures and fittings- 5% to 10% on cost
Motor vehicles- 20% to 25% on cost

Improvements to leasehold properties are depreciated over the remaining period of the property lease and are therefore subject to varying rates of depreciation.

Included within plant and machinery is a fleet of items which are available for hire. These items are depreciated at a variable rate relative to the amount of hire income generated, thereby trying to align the loss in value with usage. All plant and machinery which is not available for hire is depreciated at between 10 and 25% on cost.

As part of the purchase of the new depot from R E S Tractors Ltd during the year, discussions were held in relation to fixed assets to be acquired as part of the purchase. A reasonable purchase value was agreed for those assets but as they have been previously depreciated by R E S Tractors Ltd, the decision was made to write these assets off over a shorter period than outlined above. This policy is consistent with treatment of the fixed assets purchased from Platts Harris Ltd in the previous year.

Investments in associates
Investments in associates are held at cost.

Stocks
Finished goods stocks 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.

Parts stock is valued on an average cost basis uses the weighted average of all inventories purchased in a period to assign value to the cost of goods sold as well as the cost of goods still available for sale. Parts included in work-in-progress are valued on the same basis as general parts stock while the labour element is valued on the basis of direct labour charged at a standard hourly rate.


RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


1. ACCOUNTING POLICIES - continued
Taxation
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

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.

Pension costs and other post-retirement benefits

When employees have rendered service to the company, 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 company operates a defined benefit plan for some employees and directors, although the plan closed to future accrual on 31 May 2016. Full disclosure is given in note 21 to the financial statements. A liability for the company's obligations under the plan is recognised net of plan assets. The net change in the net defined benefit liability is recognised as the cost of the defined benefit plan during the period. Pension plan assets are measured at fair value and the defined benefit obligation is measured on an actuarial basis using the projected unit method. Actuarial valuations are obtained at least triennially and are updated at each balance sheet date.

The company also operates defined contribution plans for the benefit of its employees and directors. Contributions are expensed as they become payable.

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.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs.

Hire purchase and leasing commitments
Tangible fixed assets acquired under finance leases or hire purchase contracts are capitalised and depreciated in the same manner as other tangible fixed assets. The related obligations, net of future finance charges, are included in creditors.

Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


2. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Sales of goods 93,026,027 82,008,389
Rendering of services 8,734,013 8,060,833
Hire of equipment 3,836,324 2,174,692
105,596,364 92,243,914

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 104,487,976 90,730,316
EU & EEA 1,105,958 1,244,343
Rest of Europe - 37,935
Rest of the World 2,430 231,320
105,596,364 92,243,914

3. EMPLOYEES AND DIRECTORS

20232022
££
Wages and salaries9,172,2857,675,205
Social security costs1,026,038794,408
Pension costs278,287276,628
10,476,6108,746,241

The average monthly number of employees during the year was as follows:
20232022

Management and administration2727
Sales8777
Service11993
233197

2023 2022
£    £   
Directors' remuneration 850,590 468,569
Directors' pension contributions to money purchase schemes 52,884 7,455

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 4 1

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


3. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 239,639 276,123

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

20232022
£   £   
Depreciation - owned assets706,278672,400
Depreciation - assets on hire purchase contracts2,177,737946,399
Profit on disposal of fixed assets(56,584)(28,993)
Auditors remuneration20,74019,500
Auditors remuneration for non-audit services--
Auditors remuneration in respect of associated pension schemes4,2503,600
Operating lease cost198,466136,711

5. EXCEPTIONAL ITEMS
2023 2022
£    £   
Profit/loss on sale of operatn 4,628,636 -
Loss on hive down of
operations (226,972 ) -
4,401,664 -

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 240,001 95,737
Other interest 1,824,713 705,392
Hire purchase 248,283 95,175
2,312,997 896,304

7. 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 797,798 246,188
Under/(over)provision in prior year (3,475 ) 2
Total current tax 794,323 246,190

Origination and reversal of timing differences (351,991 ) 410,150
Tax on profit 442,332 656,340

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


7. TAXATION - continued

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 2,879,419 2,314,326
Profit multiplied by the standard rate of corporation tax in the UK
of 25% (2022 - 19%)

719,855

439,722

Effects of:
Expenses not deductible for tax purposes 87,359 53,785
Capital allowances in excess of depreciation - (247,129 )
Depreciation in excess of capital allowances 86,777 -
Adjustments to tax charge in respect of previous periods (3,475 ) 2
Pension cost relief in excess of pension cost charge (8,250 ) (190 )
Change in recognised deferred tax liability (351,991 ) 410,150
Change in tax rate impact (87,943 ) -
Total tax charge 442,332 656,340

Tax effects relating to effects of other comprehensive income

2023
Gross Tax Net
£    £    £   
Actuarial gains in defined benefit
pension scheme 225,000 - 225,000
Movement in deferred tax relating to net
defined benefit pension scheme surplus (64,500 ) - (64,500 )
160,500 - 160,500

2022
Gross Tax Net
£    £    £   
Actuarial gains in defined benefit
pension scheme 605,000 - 605,000
Movement in deferred tax relating to net
defined benefit pension scheme surplus (157,040 ) - (157,040 )
447,960 - 447,960

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


7. TAXATION - continued

Tax effects relating to effects of other comprehensive income

Deferred tax on defined benefit pension scheme obligations:

Origination and reversal of timing differences64,500153,500
Effect of changes in tax rate-3,540
Total 64,500157,040

Changes in corporation tax rates

In the Spring Budget 2022, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). This new law was substantively enacted on 24 May 2022.

In the Autumn Statement in November 2022, the government confirmed the increase in corporation tax rate to 25% from April 2023.

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of 1 each
Final 110,000 110,000

9. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 November 2022
and 31 October 2023 185,006
AMORTISATION
At 1 November 2022
and 31 October 2023 185,000
NET BOOK VALUE
At 31 October 2023 6
At 31 October 2022 6

The goodwill purchased during the year was acquired for the purchase of certain assets of RES Tractors Ltd on 6th June 2022.

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


10. TANGIBLE FIXED ASSETS
Fixtures
Land and Plant and and Motor
buildings machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 November 2022 7,239,374 9,066,273 358,166 2,918,404 19,582,217
Additions 685,331 10,502,401 142,071 1,113,124 12,442,927
Disposals - (13,940,952 ) (13,000 ) (207,144 ) (14,161,096 )
At 31 October 2023 7,924,705 5,627,722 487,237 3,824,384 17,864,048
DEPRECIATION
At 1 November 2022 979,359 2,926,325 124,050 1,709,849 5,739,583
Charge for year 152,877 2,193,108 39,094 498,936 2,884,015
Eliminated on disposal - (2,094,456 ) (1,321 ) (186,621 ) (2,282,398 )
At 31 October 2023 1,132,236 3,024,977 161,823 2,022,164 6,341,200
NET BOOK VALUE
At 31 October 2023 6,792,469 2,602,745 325,414 1,802,220 11,522,848
At 31 October 2022 6,260,015 6,139,948 234,116 1,208,555 13,842,634

Included in cost of land and buildings is freehold land of £ 2,061,225 (2022 - £ 1,811,173 ) which is not depreciated.

The cost of land and buildings is spilt as follows :


20232022
££
Freehold land and buildings7,712,6547,055,448
Improvements to leasehold property212,051183,926
7,924,7057,239,374

Tangible fixed assets with a net book value of £5,196,199 (2022 - £5,258,215) have been pledged as security for liabilities of the company.

In addition, tangible fixed assets with a net book value of £2,532,682 (2022 - £5,682,721)) are financed held under hire purchase contracts. These assets have restricted title.


RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


11. FIXED ASSET INVESTMENTS
Interest
in
associate
£   
COST
At 1 November 2022 50
Disposals (50 )
At 31 October 2023 -
NET BOOK VALUE
At 31 October 2023 -
At 31 October 2022 50

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Associated company

Green Power Hire Limited
Registered office: Eden Works, Old Malton, Malton, North Yorkshire, YO17 6RD.
Nature of business:
%
Class of shares: holding
Ordinary £1 50.00
2023 2022
£    £   
Aggregate capital and reserves 100 100

12. STOCKS
2023 2022
£    £   
Work-in-progress 475,345 569,433
Finished goods 46,694,563 35,500,428
47,169,908 36,069,861

A provision for impairment of £1,360,929 (2022 - £630,989) was recognised in cost of sales in the period for finished goods classed as slow-moving.

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 14,926,653 9,587,642
Other debtors 216,157 1,127,369
Prepayments and accrued income 935,477 1,635,660
16,078,287 12,350,671

A provision for impairment of £527,006 (2022 - £475,595) was recognised in administrative expenses in the period for trade debtors classed as potentially irrecoverable.

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 16) 574,733 2,991,116
Hire purchase contracts (see note 17) 1,593,607 1,563,219
Trade creditors 47,683,317 33,277,578
Corporation tax 805,512 246,188
Social security and other taxes 1,132,049 217,818
Directors' current accounts 260,000 260,000
Accruals and deferred income 3,657,411 4,260,455
55,706,629 42,816,374

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 16) 1,644,211 1,870,654
Hire purchase contracts (see note 17) 1,619,695 3,717,185
3,263,906 5,587,839

16. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 309,544 2,732,848
Bank loans 265,189 258,268
574,733 2,991,116

Amounts falling due between one and two years:
Bank loans 265,189 258,268

Amounts falling due between two and five years:
Bank loans 585,024 572,627

Amounts falling due in more than five years:

Repayable by instalments
Bank loans 793,998 1,039,759

The company has five bank loans, the details and repayments of which are as follows:

AccountMaturity dateRepaymentInterest rate
Agricultural mortgage13 March 2026£33,435 per annumBase rate + 1.1%
Agricultural mortgage5 May 2026£9,260 per quarterBase rate + 1.35%
Business loan8 August 2026£4,363 per monthBase rate + 2.1%
Business loan30 April 2026£4,332 per monthBase rate + 2.45%
Business loan31 July 2026£10,354 per monthBase rate + 1.95%

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 1,593,607 1,563,219
Between one and five years 1,619,695 3,717,185
3,213,302 5,280,404

Non-cancellable operating leases
2023 2022
£    £   
Within one year 141,846 127,957
Between one and five years 224,068 310,294
365,914 438,251

18. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 309,544 2,732,848
Bank loans 1,909,400 2,128,922
Hire purchase contracts 3,213,302 5,280,404
5,432,246 10,142,174

The bank loans and overdraft are secured by means of a legal charge over the company's freehold properties and a debenture over the other assets and undertakings of the company.

19. FINANCIAL INSTRUMENTS

2023 2022
£ £
Financial assets that are debt instruments measured at amortised
cost

Cash in hand 8,598 8,007
Debtors (note 12) 16,078,287 12,350,671
Financial liabilities measured at amortised cost
Creditors due within one year (note 13) (54,912,306 ) (42,816,374 )
Creditors due after one year (note 14) (3,263,906 ) (5,587,839 )

20. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 996,743 1,348,734

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


20. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 November 2022 1,348,734
Increase/(decrease) in (351,991 )
accelerated capital allowances
Increase in rolled over
property gains
Balance at 31 October 2023 996,743

20232022
££
Accelerated capital allowances572,706938,584
Rolled over gains424,037410,150
996,7431,348,734

In the Spring Budget 2022, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19%, as previously enacted). This new law was substantively enacted on 24 May 2022.

In the Autumn Statement in November 2023, the government confirmed the increase in corporation tax rate to 25% from April 2023.

When calculating the deferred taxation provision above, the company has used the corporation tax rate of 25% on the remaining unreversed items.

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
110,000 Ordinary 1 110,000 110,000

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


22. EMPLOYEE BENEFIT OBLIGATIONS

The company operated a defined benefit scheme in the UK which was closed to new members and future accruals on 31 May 2016. This is a separate trustee administered fund holding the pension scheme assets to meet long term pension liabilities. A full actuarial valuation was carried out at 31 May 2019 and updated to 31 October 2023 by a qualified actuary, independent of the scheme's sponsoring employer. That actuarial valuation showed a deficit of £66,000 and the company agreed with the trustees to eliminate the deficit by the payment of an additional contributions of £13,000 in 2021 & £8,055 in 2022. The best estimate of contributions to be paid by the employer to the scheme for the period beginning after 31 October 2023 is £Nil.

The English High Court ruling in Lloyds Banking Group Pension Trustees Limited v Lloyds Bank plc and others was published on 26 October 2018 and held that UK pension schemes with Guaranteed Minimum Pensions (GMPs) accrued from 17 May 1990 must equalise for the different effects of these GMPs between men and women. The case also gave some guidance on related matters, including the methods for equalisation. The trustees of the scheme will need to obtain legal advice covering the impact of the ruling on this scheme, before deciding with the employer on the method to adopt. An allowance for the additional liabilities as a result of this ruling is included within the defined benefit obligation.

The long-term expected rate of return on cash is determined by reference to bank base rates at the balance sheet date. The long-term expected return on bonds is determined by reference to UK long dated government and corporate bond yields at the balance sheet date. The long-term expected rate of return on equities is based on the rate of return on bonds with an allowance for out-performance.

The amounts recognised in the balance sheet are as follows:

Defined benefit
pension plans
2023 2022
£    £   
Present value of funded obligations (3,649,000 ) (4,000,000 )
Fair value of plan assets 4,580,000 4,673,000
931,000 673,000
Present value of unfunded obligations - -
Surplus 931,000 673,000
Deferred tax liability (232,750 ) (168,250 )
Net asset 698,250 504,750

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


22. EMPLOYEE BENEFIT OBLIGATIONS - continued

The amounts recognised in profit or loss are as follows:

Defined benefit
pension plans
2023 2022
£    £   
Current service cost - -
Net interest from net defined benefit
asset/liability

(33,000

)

(1,000

)
Past service cost - -
(33,000 ) (1,000 )

Actual return on plan assets 40,000 (1,086,000 )

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit
pension plans
2023 2022
£    £   
Opening defined benefit obligation 4,000,000 5,821,000
Interest cost 193,000 104,000
Actuarial losses/(gains) (411,000 ) (1,796,000 )
Benefits paid (133,000 ) (129,000 )
3,649,000 4,000,000

Changes in the fair value of scheme assets are as follows:

Defined benefit
pension plans
2023 2022
£    £   
Opening fair value of scheme assets 4,673,000 5,880,000
Contributions by employer - 8,000
Expected return 226,000 105,000
Actuarial gains/(losses) (186,000 ) (1,191,000 )
Benefits paid (133,000 ) (129,000 )
4,580,000 4,673,000

The amounts recognised in other comprehensive income are as follows:

Defined benefit
pension plans
2023 2022
£    £   
Actuarial gains/(losses) 225,000 -
225,000 -

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


22. EMPLOYEE BENEFIT OBLIGATIONS - continued

The major categories of scheme assets as amounts of total scheme assets are as follows:

Defined benefit
pension plans
2023 2022
£    £   
UK Equities 1,702,000 634,000
Overseas Equities - 1,234,000
Bonds 2,527,000 -
Corporate Bonds - 1,806,000
Fixed Interest Bonds - 589,000
Index Linked Bonds - 3,000
Property 39,000 28,000
Cash 312,000 379,000
4,580,000 4,673,000

None of the fair values of the assets shown above include any of the Company's own financial instruments or any property occupied by, or other assets used by, the Company.

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2023 2022
Discount rate 5.80% 4.90%
Inflation - RPI 3.20% 3.20%
Inflation - CPI 2.30% 2.30%

Duration used to set discount rate (in years)1213

The mortality assumptions adopted at 31 October 2023 imply the following life expectancies:

Male retiring at age 65 in 2023 : 22.3 years (2022 - 22.5 years)
Female retiring at age 65 in 2023 : 24.8 years (2022 - 24.2 years)
Male retiring at age 65 in 2043 : 23.5 years (2022 - 23.8 years)
Female retiring at age 65 in 2043 : 26.1 years (2022 - 25.7 years)

Defined contribution scheme

The company operates defined contribution pension schemes for the benefit of its employees. The assets of those schemes are held separately from those of the company, being invested with insurance companies or the National Employment Savings Trust. The cost to the company for the year was £278,287 (2022 - £204,578). The amount of contributions outstanding at the year end was £39,572 (2022 - £32,572).

RUSSELL'S (KIRBYMOORSIDE) LIMITED (REGISTERED NUMBER: 00178738)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2023


23. RELATED PARTY DISCLOSURES

During the year, the company made sales to companies with common shareholders totalling £438,897 (2022 - £546,532) and at the year end those related parties owed the company £nil (2022 - £713). The company also purchased goods and services from companies with common shareholders totalling £177,395 (2022 - £371,000) and at the year end the company owed these related parties £nil (2022 - £128,358).

Included in debtors is a loan from the company to its associate of £nil (2022 - £3,631) and included in creditors is a loan from a shareholder related party to the company of £260,000 (2022 - £260,000).

The defined benefit pension scheme is a related party. The Company’s only transactions with the defined benefit plan are the contributions paid to the plan as detailed in note 20.

Key management personnel compensation in the year amounted to £1,327,117 (2022 - £1,022,914) and, additionally during the year, total dividends of £55,256 (2022 - £55,256) were paid to the directors.

24. ULTIMATE CONTROLLING PARTY

The company is controlled by certain directors who together with their families own the majority of the issued shares.