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Registration number: 05455463

Rel Acoustics Limited

Filleted Financial Statements

for the Year Ended 31 December 2023

Pages for filing with Registrar

 

Rel Acoustics Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Financial Statements

4 to 11

 

Rel Acoustics Limited

Company Information

Directors

J Hunter

A Brody

D Brody

Registered office

North Road
Bridgend Industrial Estate
Bridgend
Mid Glamorgan
CF31 3TP

Registered number

05455463

Auditors

Corrigan Accountants Limited
1st Floor
25 King Street
Bristol
BS1 4PB

 

Rel Acoustics Limited

(Registration number: 05455463)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

5

166,224

249,224

Tangible assets

6

245,339

257,157

 

411,563

506,381

Current assets

 

Stocks

7

1,110,732

1,721,850

Debtors

8

2,961,265

2,704,827

Cash at bank and in hand

 

1,891,415

474,938

 

5,963,412

4,901,615

Creditors: Amounts falling due within one year

9

(2,816,215)

(2,644,446)

Net current assets

 

3,147,197

2,257,169

Total assets less current liabilities

 

3,558,760

2,763,550

Provisions for liabilities

(60,000)

(63,000)

Net assets

 

3,498,760

2,700,550

Capital and reserves

 

Called up share capital

250,000

250,000

Profit and loss account

3,248,760

2,450,550

Total equity

 

3,498,760

2,700,550

 

Rel Acoustics Limited

(Registration number: 05455463)
Balance Sheet as at 31 December 2023

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 28 October 2024 and signed on its behalf by:


 

A Brody

Director

 

Rel Acoustics Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

Statutory information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
North Road
Bridgend Industrial Estate
Bridgend
Mid Glamorgan
CF31 3TP
United Kingdom

2

Accounting policies

Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented.

Statement of compliance

These financial statements have been prepared in compliance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

The financial statements are prepared in pounds sterling which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity.

Revenue from the sale of goods and hardware is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, which is usually at the point in time when the goods are dispatched.

 

Rel Acoustics Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

2

Accounting policies (continued)

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.


Deferred tax
Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible fixed assets

Tangible fixed assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Plant and machinery

20% on cost

Short leasehold

2% on cost

Fixtures and fittings

20% on cost

Computer equipment

33% on cost

 

Rel Acoustics Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

2

Accounting policies (continued)

Intangible fixed assets

Separately acquired trademarks and licences are initially recorded at cost.

Trademarks, licences and customer-related intangible assets have a finite useful life and are subsequently measured at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Trademarks, patents and licences

20 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Trade debtors

Trade debtors are recognised initially at the transaction price. They are subsequently measured at cost less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

In the year under review, cost of sales includes an expense of £210,097 which arises from a change to the estimation used to value stocks. The change relates to the allocation of freight and duty costs to stocks.

Trade creditors

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost and using the effective interest method if the balance is due in more than one year.

 

Rel Acoustics Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

2

Accounting policies (continued)

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

The company uses a debt factoring arrangement for some of its trade debtors whereby the company receives from a financing company, in advance of the collection of that debt, an advance equal to an agreed percentage of the debt. The financing company takes on responsibility for the collection of the debt and bears the risk of non-payment. Advances owing to the financing company are therefore classified within creditors unless those advances are less than the outstanding trade debts, in which case the amount owing from the financing company is classified as a debtor.

Operating leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

Employee benefits
The costs of short-term employee benefits, including the cost of any unused holiday entitlement, are recognised as an expense in the period in which the employees' services are received.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 8 (2022 - 7). None of the directors are employed by the company (2022: none).

 

Rel Acoustics Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

4

Taxation

Deferred tax

Deferred tax liabilities

2023

Liability
£

Fixed asset timing differences

60,000

60,000

2022

Liability
£

Fixed asset timing differences

63,000

63,000

5

Intangible fixed assets

Goodwill
 £

Trademarks, patents and licences
 £

Total
£

Cost

At 1 January 2023

35,000

1,660,264

1,695,264

At 31 December 2023

35,000

1,660,264

1,695,264

Amortisation

At 1 January 2023

35,000

1,411,040

1,446,040

Amortisation charge

-

83,000

83,000

At 31 December 2023

35,000

1,494,040

1,529,040

Carrying amount

At 31 December 2023

-

166,224

166,224

At 31 December 2022

-

249,224

249,224

 

Rel Acoustics Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

6

Tangible assets

Leasehold property
£

Furniture, fittings and equipment
 £

Plant and equipment
£

Total
£

Cost

At 1 January 2023

303,252

147,375

211,719

662,346

Additions

-

4,619

11,032

15,651

At 31 December 2023

303,252

151,994

222,751

677,997

Depreciation

At 1 January 2023

103,805

145,254

156,130

405,189

Charge for the year

6,065

2,378

19,026

27,469

At 31 December 2023

109,870

147,632

175,156

432,658

Carrying amount

At 31 December 2023

193,382

4,362

47,595

245,339

At 31 December 2022

199,447

2,121

55,589

257,157

7

Stocks

2023
£

2022
£

Finished goods and components

1,110,732

1,721,850

 

Rel Acoustics Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

8

Debtors: amounts falling due within one year

2023
£

2022
£

Trade debtors

430,670

316,051

Amounts owed by group undertakings

2,394,297

2,114,715

Other debtors

915

915

Debt factoring

53,989

174,415

Prepayments

81,394

98,731

2,961,265

2,704,827

9

Creditors

2023
£

2022
£

Bank overdrafts

736

-

Trade creditors

232,576

135,862

Amounts owed to group undertakings

2,263,371

2,263,371

Corporation tax

101,987

59,400

Taxation and social security

106,809

62,324

Other creditors

2,735

50,061

Accruals

108,001

73,428

2,816,215

2,644,446

10

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary of £1 each

250,000

250,000

250,000

250,000

         
 

Rel Acoustics Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

11

Obligations under leases

Operating leases

2023
£

2022
£

The total of future minimum lease payments is as follows:

292,500

318,500

The amount of non-cancellable operating lease payments recognised as an expense during the year was £26,000 (2022 - £26,000).

12

Related party transactions

Balances with parent undertaking

Rel Acoustics America Limited LLC (incorporated in the United States of America) is the company's immediate parent entity by virtue of it's shareholding. The registered office and principal place of business is 800 Addison Street, Berkeley, CA 94710.

Included within debtors note 8 is a balance with the parent company Rel Acoustics America LLC of £2,394,297 (2022: £2,114,715) for amounts paid on behalf of the parent company.

Included in creditors note 9 is an amount due to the parent company of £2,263,371 (2021: £2,263,371).

13

Audit report

As the profit and loss account has been omitted from the filing copy of the financial statements the following information is in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The Independent Auditor's Report was unqualified.
The name of the Senior Statutory Auditor who signed the audit report on 28 October 2024 was Stuart Crisp BSc FCA.
• The auditor was Corrigan Accountants Limited.