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COMPANY REGISTRATION NUMBER: 06228303
Red Ribbon Asset Management Plc
Financial Statements
30 June 2023
Red Ribbon Asset Management Plc
Financial Statements
Year ended 30 June 2023
Contents
Pages
Officers and professional advisers
1
Strategic report
2 to 7
Directors' report
8 to 10
Independent auditor's report to the members
11 to 14
Consolidated statement of comprehensive income
15
Consolidated statement of financial position
16
Company statement of financial position
17
Consolidated statement of changes in equity
18
Company statement of changes in equity
19
Consolidated statement of cash flows
20
Notes to the financial statements
21 to 32
Red Ribbon Asset Management Plc
Officers and Professional Advisers
The board of directors
Mr Arvid Traaseth Pedersen
Mr Paul Anthony Rodker
Mr Prem Nath Pasricha
Mr Suchit Punnose
Mr Zulfiqar Ali Khan
Company secretary
Arvid Pedersen
Registered office
16 Berkeley Street
London
W1J 8DZ
Auditor
SRV Delson
Chartered Certified Accountants & statutory auditor
Maruti House
1st Floor
369 Station Road
Harrow
HA1 2AW
Bankers
Barclays Bank Plc
48 Regent Street
London
W1B 5RA
Red Ribbon Asset Management Plc
Strategic Report
Year ended 30 June 2023
The directors present their Strategic report for the Group and Company for the year ended 30 June 2023.
Principal activities
The Group's principal activities during the year has been the development of brands in sectors that has tremendous potential in the Indian market. These brands are created to capture the export of established products, services and technology from the UK to India. The Group has also been developing Impact Investment products to cater to an increasing audience of Impact investors.
Business model
The Group's business model is to incubate, scale and list brands created for sectors identified for development. An opportunity is identified with detailed research and external third party validation based on which investment is made to incorporate a company into which an industry leader with a proven track record is appointed as the CEO and mandated to establish and grow the business in the Indian market. The business model is to capture the significant growth and income potential offered by the Indian economy by identifying the sectors that are topical at the time of the investment. Investments made are Impact Investments which have to deliver a measurable social and environmental impact and also give market rate returns, otherwise known as the Triple P Bottom line of People, Planet and Profit. Impact investment is a risk mitigation process to enable a long term and sustainable growth for every project the Group incubates
Business review and results
The Group has been developing three flagship projects namely Eco Hotels (World's first carbon neutral hotel brand) with an agenda to roll out 10,000 budget hotel rooms across India, Modulex (India's first steel modular buildings factory) with an annual capacity of 200,000 sq m per annum which will complement the roll out of Eco Hotels and also capitalise on the huge construction market in India. CrowdInvest, which is a crowd funding platform that is being launched in the UK and India is reaching final stages of development of technology. The Group acquired a fund management business in Gibraltar, called Red Ribbon Fund Management Limited, which has four funds listed on the Gibraltar Stock Exchange. This acquisition enables the Group to offer a range of products to investors that wish to participate in the Growth Markets, mainly India. The Group will also be launching funds which will target the UK real estate market where there are synergies between offsite construction facility in India and the affordable housing opportunities in the UK. The projects have made steady progress and with the Indian economy growing at a steady pace and the investment climate improving on the basis of the policies initiated by the new government, the Group is poised to launch these projects to the next level of development including listing some of the projects on the London market to raise further capital to expand, consolidate and secure their respective balance sheets.
Key performance indicators
Macro economic factors, performance of the Indian economy and general sentiment of investors towards growth markets are the Key Performance Indicators for the Group. These factors are directly linked to the ability of the Group to secure ongoing investments for the company and for the Group both in the UK and in India.
Principal risks and uncertainties
Retaining key management, continued raising of investments, exchange rate fluctuation are the principal risks associated with the Group
Future developments
The Group is considering listing some of the projects in the London market and corporate advisors have been identified to carry out the listing process.
Section 172 statement
This statement has been prepared solely to provide information to assess how the Directors have performed their duty to promote the success of the group. Any forward-looking statements are made in good faith, based on the information available up to the time of their approval of this report and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information. The Board continues to take account of the impact of its decisions on all of our stakeholders, who include employees, customers, suppliers, shareholders, regulators, governments and local community. The Board believes that part of that responsibility includes understanding the views of those stakeholders and building constructive relationships with them. Further details on how we communicate and engage with our different stakeholders is included in the relevant sections below. During the year we have continued to ensure that the health, safety and wellbeing of our people and stakeholders has remained central to everything we do. The Directors have acted in good faith and in a way that they are most likely to promote the success of the group for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to: (A) the likely consequences of any decision in the long term strategy Despite the challenges in the market over the past year, our strategy of having a diversified portfolio of Mainstream Impact Investment strategies incorporating Emerging Technologies and applied to Growth Markets. An underlying investment approach that reflects the management team's conviction that the transition to a more resilient economy must inevitably be led by well-governed businesses striving to reduce the environmental impact of creating value for society. Red Ribbon's "Triple P Bottomline statement - Planet, People, Profit", delivered via Mainstream Impact Investment precepts, which create wealth responsibly. We pride ourselves on being grounded, stable, and dependable as well as being selective on contracts, ensuring robust governance, we're also strong on cost control, and our strategic investments in the future are considered and targeted. The Board is involved in critical capital allocation decisions and all capital expenditures and this ensures that the Board considers the likely long-term consequences of their investment decisions. Our business model is formed of three pillars: growth markets, mainstream impact investments, and emerging technologies. By continuing to deliver successfully on these, we will meet our business goals to satisfy our clients' requirements and gain an advantage in the marketplace. The pillars are underpinned by the foundations on which our successful business is built, and on which our strategy depends. Board governance structure Our Board decision-making processes and governance structure ensures that we are able to make appropriate and informed decisions rapidly within a fundamental framework of sensible checks and balances. All decisions to enter into transactions will be reviewed to ensure independence and our delegated authorities are set out clearly within each company with a number of structured review processes for new bids and tenders, entering into new markets, project risk control, and governance, across our business. Understanding the market in which we operate Monthly Business Unit reviews provide the Board an understanding of all areas of the business including the impact of external factors on their long-term business strategy. External factors, for example of a political, economic, and technological nature, are continuously monitored by the Board ensuring short- and long-term implications are understood, and strategy adjusted accordingly. The breadth and diversity of the Group provide good resilience to cope with fluctuations in particular markets which may be caused by the factors above. Corporate responsibility We are committed to maintaining the highest standards of health and safety, sustainability, and integrity throughout all our business activities. The board ensures that its decision-making enables and supports this objective in both current activities and in the long term, through active monitoring, challenging, and review of key elements of our strategy. All aspects of Corporate Responsibility are high on the Board's agenda and regular reporting is reviewed, interrogated and further actions and initiatives are delivered through a process of continuous improvement. (B) The interests of the company's employees We are proud of our people and their commitment to consistently delivering excellence and we strive to create a balanced and sustainable business to the benefit of all stakeholders. All our people are given the opportunity to develop and grow, with investments being made in our workforce to learn new skills. We are focused on providing diverse access to a broad range of learning routes to ensure our workforce have the required skills to support the growth of the Group. We are also investing significantly in our People systems, in order to attract and retain the best talent available and support the employee life cycle as comprehensively as possible. A clear strategy for People To continue to deliver a successful and growing business, it is vital that as a Group we are able to attract and recruit the top talent in our sectors, engage and retain our workforce at all levels and develop the core skills required to ensure we maintain a successful business. The Board actively drives this strategy through a number of focussed and specific actions delivered across the Group and within each business. This year we have developed and launched the usage of an online intelligence based testing mechanism to enable efficient sourcing of key talent throughout our sectors, and have adopted the latest resourcing tools, including social media, to broaden the range of candidates we engage with. We are also investing significantly in our people's data resources and reporting tools to improve our data analysis and decision-making capability. Health and safety Central to our corporate responsibility approach is having a culture where our people consistently demonstrate the right behaviours and apply best practice, especially as it relates to health and safety. We continually strive to prevent work related injuries and the ill health of our employees and anyone associated with our activities, while also improving their wellbeing. We maintain the right culture, combined with effective systems, to deliver quality projects in a safe and sustainable manner. Developing and retaining our people We continue to review employee performance on a regular basis and agree individual development plans for all staff. Our workforce is encouraged to seek development opportunities in all areas of work activity, with a focus on learning 'on the job' rather than relying only on formal training courses. We are also investing in more active learning delivery channels, utilising our available technology, to help our staff access the training they need when they need it. Employee Engagement We regularly measure the engagement levels of our workforce with all employees provided with the opportunity to share their thoughts on the group actively. Areas of focus for the year included improved flexibility in the ways we work, recognising the performance of our employees and communicating the future plans for the group in an effective and timely manner. The senior management engages with employees in a number of ways. There are regular informal meetings regarding the direct running of specific areas of the business. We support and encourage our employees to grow and be ambassadors of the Group and the respective businesses. Each business is charged with developing and implementing a clear plan to ensure there are long-term solutions for future skills requirements in place, ensuring that there is a balanced focus on supporting training, and ensuring opportunities are fully available for all. Investment in training and development Our emerging talent thought process continues to grow, and we offer a range of internship placements and graduate-level opportunities. We have promoted two members of the staff to head new divisions through intense incubatory training. Investing in emerging talent is seen as a key business priority and there is also a significant conversation around behavioural safety, compliance, and professional training. Equality, diversity, and inclusion for us are: Making sure every one of our current and future employees feel welcome, valued and respected and are motivated to perform at their personal best Creating high performing teams by bringing together different opinions and perspectives to deliver better solutions for our clients and opportunities for our people and our organisation Driving continuous improvement processes to maintain and enhance a diverse and inclusive environment Embedding a culture of diversity and inclusion through consistent key messages across our business Encouraging and attracting people from all ages and backgrounds through local and national recruitment in addition to engaging in education, graduate and apprenticeship programmes. Ensuring adequate and competent resources The Board receives and reviews business reports from each area of the business based on the Key Performance Indicators most pertinent to them. Each project and programme is monitored individually in terms of its delivery and progress, the progress of the work, the productivity and financial performance and also by the board as part of the wider business reviews. We ensure through our resourcing approach that we have the ability to direct our resources to address any issues and ensure that we are positioned for success. (C) The need to foster the company's business relationships with suppliers, customers and others Supply chain Our supply chain partners form an integral part of the Group's commitment and we establish mutually rewarding, ongoing relationships with our suppliers and sub-contractors, and today work with many organisations with which we have a long and successful history of co-operation. Business to Business meetings are held with our largest suppliers and subcontractors prior to the start of a large project and periodically, as appropriate. Many more contract focused meetings and communications are held on a one to one basis as part of our strategy to closely engage with and support our supply chain. Customers The Board has an established framework whereby business units are required and empowered to develop their own business plans for subsequent review and endorsement by the Board. Each business develops a five-year plan setting out, amongst other things, its proposed sector focus and customer base. From these plans, we identify key customers and establish relationship management plans in order to coordinate our interactions and monitor customer satisfaction levels. Regular customer contact is undertaken at all levels of the organisation, where we seek to understand customer objectives and priorities, and gather feedback on our performance. This guides the development of our solutions and highlights opportunities for investment. Consistent with our core values, innovation is integral to us maintaining a market-leading position in our chosen sectors. Customer satisfaction is measured on a more formal basis through tailored interviews, the results of which are fed back to senior management and actions implemented as necessary. Other stakeholders We engage with our Shareholders and broader group through many informal as well as formal routes. Our objectives are set and agreed upon through a rolling business planning process and we review our sustainability and other non-financial targets as well as financial targets with them on a regular basis. We maintain strong relationships with our financial stakeholders and our bankers, through regular and structured meetings, transparent reporting and ongoing informal relationships. Members of the Board participate in numerous industry bodies and enable our industry to be appropriately represented as a whole. We recognise that it is important that we have strong relationships with the numerous regulatory and professional bodies that we interact with. Many of these relate to employees and customers, and have been mentioned also in previous sections. We ensure we are compliant with statutory regulations and legislation, and aim for best practise under voluntary codes and initiatives. We have a corporate website where stakeholders can find out more about who we are and what we do. (D) The impact of the company's operations on the community and the environment Giving back to the community We are committed to making a positive impact in the communities where we work and have designed our organisation and its subsidiaries based on our Mainstream Impact Investment principles. We strive to leave a legacy, not only through the projects that we deliver but also a less tangible legacy by supporting local communities, through engagement with schools, through charitable activity and supporting local organisations. Our offices and sites work actively to become part of the communities in which they work. We respect people and their local environment. Our aim is to add value to our society, inspire others and support colleagues, clients and suppliers in their own efforts to share time, skills and resources in their chosen way. Our business strategy seeks to ensure ongoing environmental, social and business sustainability. We continually strive to be as socially and environmentally responsible as possible, maximising opportunities for enhancement and mitigating adverse impacts on the environment. In this current uncertain environmental and economic climate, our capacity to endure, be agile and be resilient will be fundamental to our long-term growth and our ability to future-proof our business. Notably, the world is facing a a climate emergency. Climate change is progressing even faster than the world's top scientists have predicted and is outpacing our efforts to address it. Bold action with far greater ambition than ever before is needed to address climate change if we are to meet the goals of the Paris Agreement and COP26. We will build this adaptive capacity by making decisions informed by our inherent culture to do business in the right way, as well as recognising that social and environmental risks have interdependencies that touch every part of our business and our supply chain. Being a responsible sustainable business embraces everything we do, be it safety, quality, the way we conduct ourselves, the way we respect our surroundings and the way we preserve the future for ourselves, our families, our colleagues and our communities. This framework builds on existing great foundations, aligns our collective ambitions, and enables us to unlock the social value in our operations. The three pillars of our MII principals are: Planet: Protecting and enhancing the natural environment People: Putting people at the heart of our approach Purpose: Being a trusted, forward thinking and respected business of choice Our key areas of focus within these three pillars are: Climate, Energy and Emissions: Translating and taking positive action to reduce or, wherever possible, eliminate our adverse impacts on climate change. Responsible Management of the Environment: Environmental risks and opportunities will be managed professionally, responsibly and innovatively. Circular Economy: A fully embedded approach to a circular economy which aims to design for sustainability, minimise waste and make the most of resources. Sustainable Supply Chain and Ethical Procurement: To operate in a fair and ethical manner and publicise our desire to work alongside a network of like-minded supply chain partners. Equality, Diversity and Inclusion: We will inclusivity of people from all lifestyles and enriched by a diversity of perspectives, cultures and backgrounds, characterised by fairness and equality of opportunity Charity, Volunteering and Community Engagement: Established and meaningful relationships with charitable bodies and local communities which provide mutually beneficial opportunities. We maintain clearly defined management systems, interfaces and responsibilities that are understood and accepted by all our people and those working with us. It is imperative we maintain a systematic approach to improving business performance in order to achieve our objectives. This includes managing and optimising our activities, to make our processes more effective, more efficient and more capable of adapting to an ever-changing business environment. Integrity Maintaining a reputation for high standards of business conduct is of paramount importance to us and we expect all employees and all members of our supply chain to behave with integrity at all times. Indeed, integrity is one of our core values and this underpins all of our decisions' actions and behaviours. Every one of our employees and those who work closely with us are accountable. We expect our people to be open and honest, to run our business ethically and to be morally strong. Long term success is dependent on the recruitment, development, wellbeing and retention of exceptional people that share the right core values and culture. We have a zero-tolerance attitude towards fraud and unethical behaviour. We consistently maintain effective oversight and scrutiny processes, carried out with independence and impartiality. Our decision making is linked to ethical values, compliance with corporative, legislative and other requirements, and we are always prepared to seek further improvements.
This report was approved by the board of directors on 31 October 2024 and signed on behalf of the board by:
Mr Arvid Traaseth Pedersen
Director
Red Ribbon Asset Management Plc
Directors' Report
Year ended 30 June 2023
The directors present their report and the financial statements of the group for the year ended 30 June 2023 .
Directors
The directors who served the company during the year were as follows:
Mr Arvid Traaseth Pedersen
Mr Paul Anthony Rodker
Mr Prem Nath Pasricha
Mr Suchit Punnose
Mr Zulfiqar Ali Khan
Dividends
The directors do not recommend the payment of a dividend.
Greenhouse gas emissions and energy consumption
Unit
2023
2022
Emissions resulting from activities for which the group is responsible
tCO2e
22
28
Emissions resulting from the purchase of electricity by the group for its own use
tCO2e
3
7
Water and paper
tCO2e
1
1
----
----
Total emissions
tCO2e
26
36
Total energy consumption
kWh
45,105
47,250
Business trips
4.00
4.00
--------
--------
Methodologies for energy and emissions calculations
Bold action with far greater ambition than ever before is taken to address climate change to meet the goals of the Paris Agreement and COP26.
Employment of disabled persons
The Company operates an equal opportunities policy. The aim of this policy is to ensure that there should be equal opportunity for all and this applies to external recruitment, internal appointments, terms of employment, conditions of service and opportunity for training and promotion regardless of gender, ethnic origin or disability. Disabled persons are given full and fair consideration for all types of vacancy in as much as the opportunities available are constrained by the practical limitations of the disability. Should for whatever reason, an employee of the Company become disabled whilst in employment, every step, where appropriate, will be taken to assist with rehabilitation and suitable retraining. The Company maintains its own health, safety and environmental policies covering all aspects of its operations. Regular meetings and inspections take place to ensure all legal requirements are adhered to and that the Company is responsible for the needs of the employees and the environment.
Employee involvement
Within the bounds of commercial confidentiality, the group endeavours to keep the staff at all levels informed of matters that affect the progress of the group and are of interest to them as employees.
Financial instruments
The period of unprecedented market pressures on consumers. Continued market conditions and currency fluctuation in input costs and intense competition can adversely impact the growth as well as capability to execute long term plans. In the current highly competitive and volatile market, the group continues to pursue strategies to explore new streams of revenue. The directors expect the business environment to remain highly competitive in 2025 but are confident that the group is well positioned to deal with the market risks.
Foreign exchange exposure is a risk area.
Due to the straightforward nature of the business, the directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the business.
Events after the end of the reporting period
There are no matters to report as post balance sheet events.
Disclosure of information in the strategic report
The group has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the group 's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments, research and development and financial instruments
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and the company and the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information. A resolution to reappoint SRV Delson as auditors will be proposed at the forthcoming Annual General Meeting.
This report was approved by the board of directors on 31 October 2024 and signed on behalf of the board by:
Mr Arvid Traaseth Pedersen
Director
Red Ribbon Asset Management Plc
Independent Auditor's Report to the Members of Red Ribbon Asset Management Plc
Year ended 30 June 2023
Qualified opinion
We have audited the financial statements of Red Ribbon Asset Management Plc (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, consolidated statement of cash flows and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, except for the effects of the matter described in the basis for qualified opinion section of our report, the financial statements: - give a true and fair view of the state of the group's and of the parent company's affairs as at 30 June 2023 and of the group's loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
The Company's investments are carried in the statement of financial position at £8,266,160. Management has not carried out the impairment but has stated them solely at cost, which constitutes a departure from FRSs. The Company's records indicate that, had management stated the investments at impairment, an amount of £8,266,160 would have been required to write the investments down to their net value. Accordingly the shareholders' equity would have been reduced by £8,266,160.
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 auditor's 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 qualified opinion.
Material uncertainty related to going concern
We draw your attention to the going concern note in the financial statements that the company is dependent on the availability of funding and the current economic conditions are having a significant impact upon the world of finance. The fact indicates material uncertainty, which may cast significant doubt upon the company's ability to continue trading as a going concern should funding be unavailable.
The company has incurred substantial losses during the current and previous years. The group is pursuing financial tie up for its projects and delay in commencement of commercial operations have resulted in losses. Having regards to the management's plan to continue with the project once all the required financial tie ups are in place, there is continued material uncertainty which may cast significant doubt upon the company's ability to continue trading as a going concern.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Enquiry of management and those charged with governance around actual and potential litigation and claims; Performing 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. Reviewing minutes of meetings of those charged with governance; Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Sailesh Rameshchandra Vaghjee
(Senior Statutory Auditor)
For and on behalf of
SRV Delson
Chartered Certified Accountants & statutory auditor
Maruti House
1st Floor
369 Station Road
Harrow
HA1 2AW
31 October 2024
Red Ribbon Asset Management Plc
Consolidated Statement of Comprehensive Income
Year ended 30 June 2023
2023
2022
Note
£
£
Turnover
4
3,490,421
4,474,100
Cost of sales
637,967
442,487
------------
------------
Gross profit
2,852,454
4,031,613
Distribution costs
971,298
158,930
Administrative expenses
4,348,902
2,275,268
------------
------------
Operating (loss)/profit
5
( 2,467,746)
1,597,415
(Gain)/loss on disposal of shares in group
9
( 79,749)
Other interest receivable and similar income
10
195,346
110,491
Interest payable and similar expenses
11
1,352,385
481,593
------------
------------
(Loss)/profit before taxation
( 3,624,785)
1,146,564
Tax on (loss)/profit
12
706
5,665
------------
------------
(Loss)/profit for the financial year and total comprehensive income
( 3,625,491)
1,140,899
------------
------------
Total comprehensive income for the year attributable to:
The owners of the parent company
( 3,625,491)
1,140,899
Non-controlling interests
( 182)
( 123)
------------
------------
(3,625,673)
1,140,776
------------
------------
All the activities of the group are from continuing operations.
Red Ribbon Asset Management Plc
Consolidated Statement of Financial Position
30 June 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
14
71,067
89,029
Investments
15
8,266,160
5,844,820
------------
------------
8,337,227
5,933,849
Current assets
Debtors
16
6,291,162
2,909,749
Cash at bank and in hand
145,465
21,943
------------
------------
6,436,627
2,931,692
Creditors: amounts falling due within one year
17
3,187,690
2,951,024
------------
------------
Net current assets/(liabilities)
3,248,937
( 19,332)
-------------
------------
Total assets less current liabilities
11,586,164
5,914,517
Creditors: amounts falling due after more than one year
18
10,018,280
2,458,487
-------------
------------
Net assets
1,567,884
3,456,030
-------------
------------
Capital and reserves
Called up share capital
21
1,104,225
1,095,050
Share premium account
22
14,947,347
13,218,995
Profit and loss account
22
( 14,483,965)
( 10,858,474)
-------------
-------------
Equity attributable to the owners of the parent company
1,567,607
3,455,571
Non-controlling interests
277
459
------------
------------
1,567,884
3,456,030
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 31 October 2024 , and are signed on behalf of the board by:
Mr Arvid Traaseth Pedersen
Director
Company registration number: 06228303
Red Ribbon Asset Management Plc
Company Statement of Financial Position
30 June 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
14
71,067
89,029
Investments
15
8,304,792
5,883,451
------------
------------
8,375,859
5,972,480
Current assets
Debtors
16
6,245,898
2,827,849
Cash at bank and in hand
138,625
14,731
------------
------------
6,384,523
2,842,580
Creditors: amounts falling due within one year
17
12,682,034
5,423,953
-------------
------------
Net current liabilities
6,297,511
2,581,373
------------
------------
Total assets less current liabilities
2,078,348
3,391,107
Creditors: amounts falling due after more than one year
18
567,503
46,905
------------
------------
Net assets
1,510,845
3,344,202
------------
------------
Capital and reserves
Called up share capital
21
1,104,225
1,095,050
Share premium account
22
14,930,898
13,202,546
Profit and loss account
22
( 14,524,278)
( 10,953,394)
-------------
-------------
Shareholders funds
1,510,845
3,344,202
-------------
-------------
The loss for the financial year of the parent company was £ 3,570,884 (2022: £ 1,178,097 profit).
These financial statements were approved by the board of directors and authorised for issue on 31 October 2024 , and are signed on behalf of the board by:
Mr Arvid Traaseth Pedersen
Director
Company registration number: 06228303
Red Ribbon Asset Management Plc
Consolidated Statement of Changes in Equity
Year ended 30 June 2023
Called up share capital
Share premium account
Profit and loss account
Equity attributable to the owners of the parent company
Non-controlling interests
Total
£
£
£
£
£
£
At 1 July 2021
1,086,892
12,194,075
( 12,393,853)
887,114
582
887,696
Profit for the year
1,140,899
1,140,899
( 123)
1,140,776
Other comprehensive income for the year:
Non consolidation of subsidiary
(4,043)
(390,437)
394,480
------------
-------------
-------------
------------
----
------------
Total comprehensive income for the year
( 4,043)
( 390,437)
1,535,379
1,140,899
( 123)
1,140,776
Issue of shares
12,201
1,415,357
1,427,558
1,427,558
------------
-------------
-------------
------------
----
------------
Total investments by and distributions to owners
12,201
1,415,357
1,427,558
1,427,558
At 30 June 2022
1,095,050
13,218,995
( 10,858,474)
3,455,571
459
3,456,030
Loss for the year
( 3,625,491)
( 3,625,491)
( 182)
(3,625,673)
------------
-------------
-------------
------------
----
------------
Total comprehensive income for the year
( 3,625,491)
( 3,625,491)
( 182)
(3,625,673)
Issue of shares
9,175
1,728,352
1,737,527
1,737,527
-------
------------
----
------------
----
------------
Total investments by and distributions to owners
9,175
1,728,352
1,737,527
1,737,527
------------
-------------
-------------
------------
----
------------
At 30 June 2023
1,104,225
14,947,347
( 14,483,965)
1,567,607
277
1,567,884
------------
-------------
-------------
------------
----
------------
Red Ribbon Asset Management Plc
Company Statement of Changes in Equity
Year ended 30 June 2023
Called up share capital
Share premium account
Profit and loss account
Total
£
£
£
£
At 1 July 2021
1,082,849
11,787,190
( 12,131,491)
738,548
Profit for the year
1,178,097
1,178,097
------------
-------------
-------------
------------
Total comprehensive income for the year
1,178,097
1,178,097
Issue of shares
12,201
1,415,356
1,427,557
------------
-------------
-------------
------------
Total investments by and distributions to owners
12,201
1,415,356
1,427,557
At 30 June 2022
1,095,050
13,202,546
( 10,953,394)
3,344,202
Loss for the year
( 3,570,884)
( 3,570,884)
------------
-------------
-------------
------------
Total comprehensive income for the year
( 3,570,884)
( 3,570,884)
Issue of shares
9,175
1,728,352
1,737,527
-------
------------
----
------------
Total investments by and distributions to owners
9,175
1,728,352
1,737,527
------------
-------------
-------------
------------
At 30 June 2023
1,104,225
14,930,898
( 14,524,278)
1,510,845
------------
-------------
-------------
------------
Red Ribbon Asset Management Plc
Consolidated Statement of Cash Flows
Year ended 30 June 2023
2023
2022
£
£
Cash flows from operating activities
(Loss)/profit for the financial year
(3,625,491)
1,140,899
Adjustments for:
Depreciation of tangible assets
27,345
27,000
(Gain)/loss on disposal of shares in group
79,749
Other interest receivable and similar income
( 195,346)
( 110,491)
Interest payable and similar expenses
1,352,385
481,593
Tax on (loss)/profit
706
5,665
Accrued expenses
18,898
39,015
Changes in:
Trade and other debtors
( 3,381,413)
( 1,960,022)
Trade and other creditors
8,316,211
2,790,149
------------
------------
Cash generated from operations
2,513,295
2,493,557
Interest paid
( 1,352,385)
( 481,593)
Interest received
195,346
110,491
Tax paid
( 14,167)
( 9,785)
------------
------------
Net cash from operating activities
1,342,089
2,112,670
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 9,383)
( 46,114)
Acquisition of subsidiaries
( 2,421,340)
( 2,174,360)
Proceeds from sale of subsidiaries
( 44,939)
------------
------------
Net cash used in investing activities
( 2,430,723)
( 2,265,413)
------------
------------
Cash flows from financing activities
Proceeds from issue of ordinary shares
1,737,527
1,427,558
Proceeds from borrowings
( 497,193)
( 1,311,196)
Proceeds from loans from group undertakings
( 28,178)
( 44,674)
------------
------------
Net cash from financing activities
1,212,156
71,688
------------
------------
Net increase/(decrease) in cash and cash equivalents
123,522
( 81,055)
Cash and cash equivalents at beginning of year
21,943
102,998
---------
---------
Cash and cash equivalents at end of year
145,465
21,943
---------
---------
Red Ribbon Asset Management Plc
Notes to the Financial Statements
Year ended 30 June 2023
1. General information
The company is a public company limited by shares, registered in England and Wales. The address of the registered office is 16 Berkeley Street, London, England, W1J 8DZ. The Group's principal activities during the year has been the development of brands in sectors that has tremendous potential in the Indian market. These brands are created to capture the export of established products, services and technology from the UK to India. The Group has also been developing Impact Investment products to cater to an increasing audience of Impact investors.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
In preparing the financial statements the directors have taken into account all the information that could reasonably be expected to be available together with their continued support and that of the investors. The company is dependent on the availability of funds and financial tie ups for its projects. The current conditions are having significant impact upon the operation and the conditions remain challenging. Based on the results of the company the board consider that the company has sufficient confirmed future availability of funds to maintain its operations. Despite the uncertainty, the directors and shareholders have signified their intention to make finance available to the company. The directors have reasonable expectations and adequate resources that the company will be able to continue in operations and meet its liabilities as they fall due. On this basis the financial statements have been prepared by using the going concern basis of accounting because there are material uncertainties related to events and conditions that may cast significant doubt about the ability of the company to continue as a going concern.
Disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
Consolidation
The financial statements consolidate the financial statements of Red Ribbon Asset Management Plc and all of its subsidiary undertakings.
The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.
Non-controlling interests
Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity. Minority interests consist of the amount of those interests at the date of the original business combination and the minority’s share of changes in equity since the date of the combination.
The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the minority interests are determined on the basis of existing ownership interests and do not reflect the possible exercise or conversion of options or convertible instruments.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are no material judgements required in preparing the financial statements for the year under review.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised 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 reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Development costs
-
Straight line over the life of the assets
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
20% on cost
Fixtures and fittings
-
20% on cost
Motor vehicles
-
20% on cost
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Investments in associates
Investments in associates are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate.
Investments in joint ventures
Investments in joint ventures are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the joint venture.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Rendering of services
3,490,421
4,474,100
------------
------------
The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
27,345
27,000
Impairment of trade debtors
81,900
Foreign exchange differences
( 54,538)
68,013
--------
--------
6. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
10,150
3,024
--------
-------
Fees payable to the company's auditor and its associates for other services:
Audit of the financial statements of associates
5,500
4,050
--------
-------
7. Staff costs
The average number of persons employed by the group during the year, including the directors, amounted to:
2023
2022
No.
No.
Administrative staff
9
9
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
1,659,695
656,433
Social security costs
142,831
54,381
Other pension costs
16,900
7,673
------------
---------
1,819,426
718,487
------------
---------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
390,360
80,846
---------
--------
Remuneration of the highest paid director in respect of qualifying services:
2023
2022
£
£
Aggregate remuneration
323,433
24,846
---------
--------
9. (Gain)/loss on disposal of shares in group
2023
2022
£
£
(Gain)/loss on disposal of shares in group
(79,749)
----
--------
10. Other interest receivable and similar income
2023
2022
£
£
Interest on loans and receivables
195,346
110,491
---------
---------
11. Interest payable and similar expenses
2023
2022
£
£
Other interest payable and similar charges
1,352,385
481,593
------------
---------
12. Tax on (loss)/profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
706
5,665
Tax on (loss)/profit
706
5,665
----
-------
Tax recognised as other comprehensive income or equity
No provision for corporation tax liabilities has been made in these financial statements due to tax losses incurred during the current and previous year.
Reconciliation of tax expense
The tax assessed on the (loss)/profit on ordinary activities for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 19 % (2022: 19 %).
2023
2022
£
£
(Loss)/profit on ordinary activities before taxation
( 3,624,785)
1,146,564
------------
------------
(Loss)/profit on ordinary activities by rate of tax
3,624,785
1,146,564
Unused tax losses
( 3,624,079)
( 1,140,899)
------------
------------
Tax on (loss)/profit
706
5,665
------------
------------
13. Intangible assets
Group
Development costs
£
Cost
At 1 July 2022
1,645,051
Disposals
( 2,936)
------------
At 30 June 2023
1,642,115
------------
Amortisation
At 1 July 2022
1,645,051
Disposals
( 2,936)
------------
At 30 June 2023
1,642,115
------------
Carrying amount
At 30 June 2023
------------
At 30 June 2022
------------
Company
Development costs
£
Cost
At 1 July 2022 and 30 June 2023
1,642,115
------------
Amortisation
At 1 July 2022 and 30 June 2023
1,642,115
------------
Carrying amount
At 1 July 2022 and 30 June 2023
------------
At 30 June 2022
------------
14. Tangible assets
Group
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2022
239
101,588
140,618
242,445
Additions
9,383
9,383
Disposals
( 239)
( 2,951)
( 3,190)
----
---------
---------
---------
At 30 June 2023
108,020
140,618
248,638
----
---------
---------
---------
Depreciation
At 1 July 2022
239
90,889
62,288
153,416
Charge for the year
6,253
21,092
27,345
Disposals
( 239)
( 2,951)
( 3,190)
----
---------
---------
---------
At 30 June 2023
94,191
83,380
177,571
----
---------
---------
---------
Carrying amount
At 30 June 2023
13,829
57,238
71,067
----
---------
---------
---------
At 30 June 2022
10,699
78,330
89,029
----
---------
---------
---------
Company
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 July 2022
98,637
140,618
239,255
Additions
9,383
9,383
---------
---------
---------
At 30 June 2023
108,020
140,618
248,638
---------
---------
---------
Depreciation
At 1 July 2022
87,938
62,288
150,226
Charge for the year
6,253
21,092
27,345
---------
---------
---------
At 30 June 2023
94,191
83,380
177,571
---------
---------
---------
Carrying amount
At 30 June 2023
13,829
57,238
71,067
---------
---------
---------
At 30 June 2022
10,699
78,330
89,029
---------
---------
---------
15. Investments
Group
Shares in group undertakings
£
Cost
At 1 July 2022
7,873,971
Additions
2,421,340
-------------
At 30 June 2023
10,295,311
-------------
Impairment
At 1 July 2022 and 30 June 2023
2,029,151
-------------
Carrying amount
At 30 June 2023
8,266,160
-------------
At 30 June 2022
5,844,820
-------------
Company
Shares in group undertakings
£
Cost
At 1 July 2022
5,883,451
Additions
2,421,341
------------
At 30 June 2023
8,304,792
------------
Impairment
At 1 July 2022 and 30 June 2023
------------
Carrying amount
At 30 June 2023
8,304,792
------------
At 30 June 2022
5,883,451
------------
Subsidiaries, associates and other investments
Details of the investments in which the group and the parent company have an interest of 20% or more are as follows:
Class of share
Percentage of shares held
Subsidiary undertakings
RRAM Bonds Plc
Ordinary
99
RRAM Bonds Plc
Ordinary
99.67
Eco Hotels UK Plc
Ordinary
27.92
Armaec Energy Group Ltd
Ordinary
49
New Homes Crowd Ltd
Ordinary
40
Crowd Investments Ltd
Ordinary
66.11
Crowd Investments Limited
Ordinary
39
Crowd Invest Global UK Ltd
Ordinary
38.61
Red Ribbon Fund Management Ltd
Ordinary
60
Substantia Real Estate Ltd
Ordinary
60
On The Point Marketing Ltd
Ordinary
51.04
Carter Savoy Ltd
Ordinary
100
Red Ribbon Fund Management Ltd
Ordinary
60
Ribbon Plc
Ordinary
57.58
16. Debtors
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade debtors
13,027
33,670
13,027
33,670
Amounts owed by group undertakings
3,849,900
2,403,057
3,850,083
2,403,057
Other debtors
2,428,235
473,022
2,382,788
391,122
------------
------------
------------
------------
6,291,162
2,909,749
6,245,898
2,827,849
------------
------------
------------
------------
17. Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
6,600
6,720
Trade creditors
670,763
488,830
514,706
485,271
Amounts owed to group undertakings
232,496
260,674
10,203,691
2,978,514
Accruals and deferred income
78,023
58,943
67,531
53,951
Social security and other taxes
373,889
107,102
373,889
107,102
Director loan accounts
45,498
531,590
45,498
531,590
Other creditors
1,780,421
1,497,165
1,476,719
1,267,525
------------
------------
-------------
------------
3,187,690
2,951,024
12,682,034
5,423,953
------------
------------
-------------
------------
18. Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans and overdrafts
71,185
82,166
38,889
44,441
Corporation tax
7,986
21,447
2,464
2,464
Loans
9,939,109
2,354,874
526,150
-------------
------------
---------
--------
10,018,280
2,458,487
567,503
46,905
-------------
------------
---------
--------
19. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 16,900 (2022: £ 7,673 ).
20. Financial instruments
The company deals with foreign exchange and these are measured on a fair value basis.
21. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary share of 1p shares of £ 0.01 each
94,020,360
940,204
93,751,818
937,518
8.75% Cumulative convertible preference shares of shares of £ 0.01 each
16,402,138
164,021
15,753,187
157,532
--------------
------------
--------------
------------
110,422,498
1,104,225
109,505,005
1,095,050
--------------
------------
--------------
------------
During the year the company issued 268,542 ordinary shares of £0.01 each and 648,951, 8.75% preference shares of £0.01 each. Called-up share capital represents the nominal value of shares that have been issued.
22. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses. The Share premium reserve records the amount above the nominal value received for shares sold, less transaction costs.
23. Analysis of changes in net debt
At 1 Jul 2022
Cash flows
At 30 Jun 2023
£
£
£
Cash at bank and in hand
21,943
123,522
145,465
Debt due within one year
(798,984)
514,390
(284,594)
Debt due after one year
(82,166)
10,981
(71,185)
---------
---------
---------
( 859,207)
648,893
( 210,314)
---------
---------
---------
24. Directors' advances, credits and guarantees
All transactions carried out between the directors and the company are at Arm's length basis.
25. Related party transactions
Group
At the year end the company owed £45,498 to the directors of the company.
Red Ribbon Asset Management Plc
Notes to the Financial Statements (continued)
Year ended 30 June 2023
26. Controlling party
The company was under the control of Mr Suchit Punnose throughout the current and previous year. Mr Suchit Punnose is a director and shareholder.