REGISTERED NUMBER: 10715662 (England and Wales) |
RM217 LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
REGISTERED NUMBER: 10715662 (England and Wales) |
RM217 LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 4 | to | 7 |
Consolidated Statement of Income and Retained Earnings | 8 |
Consolidated Statement of Financial Position | 9 |
Company Statement of Financial Position | 10 |
Consolidated Statement of Cash Flows | 11 |
Notes to the Consolidated Statement of Cash Flows | 12 | to | 13 |
Notes to the Consolidated Financial Statements | 14 | to | 24 |
RM217 LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 APRIL 2024 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
5 Resolution Close |
Endeavour Park |
Boston |
Lincolnshire |
PE21 7TT |
SOLICITORS: |
Cumberland Court |
80 Mount Street |
Nottingham |
NG1 6HH |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
The director presents his strategic report of the company and the group for the year ended 30 April 2024. |
REVIEW OF BUSINESS |
The results of the group for the year are as shown in the annexed financial statements and show a pre-tax profit of £1,085,697 (2023 - £325,723) for the year and sales of £14,087,971 (2023 - £13,744,120). The company has net assets of £2,256,364 (2023 - £1,580,966). |
The director is satisfied with the overall performance of the business. |
The director considers that it has been a challenging trading year and measures have been taken within the year to improve the performance of the business and to adapt to changes within the market place. |
This financial year has seen many challenges and has been a difficult one to navigate through. Raw material prices at last started to stabilise and remained relatively unchanged throughout the year but did show signs of increasing for the new financial year. Supply chains for paper improved substantially with lead times now at more acceptable levels and dual sourcing of paper became easier. Inflationary pressures on other raw materials and services continue to be a cause for concern and this will mean, inevitably, price increases to customers. Margins remain very tight on paper sacks and we continue to look for ways to improve these without,necessarily, passing these onto customers. |
The company continues to invest in plant and machinery as the director deems appropriate. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Key business risks and uncertainties affecting the company are considered to relate to product availability, debtor risk, exchange rates and fluctuating costs of raw materials due to world demand. Following the conflict in Ukraine global paper supplies seem now to have found an equilibrium as Russian paper moves to the Far East and Africa with European mills able to pick up the shortfall. |
KEY PERFORMANCE INDICATORS ("KPIS") |
Given the straightforward nature of the business, the group's director is of the opinion that a detailed analysis using KPI's is not necessary for an understanding of the development, performance or position of the business. The group uses gross profit % and EBITDA as its primary measures. |
Key financial results | 2024 | 2023 |
Turnover (£'000) | 14,088 | 13,744 |
Gross profit/(loss) (£'000) | 2,227 | 1,587 |
Gross profit margin | 15.8% | 11.6% |
Profit/(loss) after tax (£'000) | 812 | 262 |
EBITDA (£'000) | 1,430 | 682 |
SUMMARY |
The director is satisfied with the overall results. The director considers that the business made an acceptable result and foresees the future to be challenging with the group in a good position to be able to cope with what will be, no doubt, an uncertain year. |
ON BEHALF OF THE BOARD: |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 30 APRIL 2024 |
The director presents his report with the financial statements of the company and the group for the year ended 30 April 2024. |
DIVIDENDS |
Interim dividends of £120,000 were paid in respect of the year ended 30 April 2024. |
The director recommends that no final dividend be paid. |
RESEARCH AND DEVELOPMENT |
Continued development of new products and innovation of manufacturing processes is an ongoing part of the business which the director is keen to continue. |
FUTURE DEVELOPMENTS |
Going forward, the director will continue to explore new markets and opportunities for the benefit of the business. |
DIRECTOR |
DIRECTORS INDEMNITY INSURANCE |
During the year the company has made payments for directors indemnity insurance. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RM217 LIMITED |
Opinion |
We have audited the financial statements of RM217 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 April 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RM217 LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RM217 LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. |
The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as valuation of WIP and Finished Goods Stock, as well as the risk of inappropriate journal entries to manipulate profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive testing on accounting estimates, including reviewing the method used by management to make those estimates, re-performing the calculation, and reviewing the outcome post year-end. |
Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Employment laws and Health & Safety regulations. |
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included discussion with senior management around whether any incidents occurred in the year, a review of Health & Safety policies in place and a review of legal and professional fees for evidence of non-compliance. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
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 |
RM217 LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
5 Resolution Close |
Endeavour Park |
Boston |
Lincolnshire |
PE21 7TT |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 14,087,971 | 13,744,120 |
Cost of sales | 11,861,120 | 12,156,656 |
GROSS PROFIT | 2,226,851 | 1,587,464 |
Administrative expenses | 1,115,139 | 1,189,119 |
1,111,712 | 398,345 |
Other operating income | 65,007 | - |
OPERATING PROFIT | 4 | 1,176,719 | 398,345 |
Interest receivable and similar income | 66 | 648 |
1,176,785 | 398,993 |
Interest payable and similar expenses | 5 | 91,088 | 73,270 |
PROFIT BEFORE TAXATION | 1,085,697 | 325,723 |
Tax on profit | 6 | 290,299 | 63,837 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year | 765,867 | 623,981 |
Dividends | 8 | (120,000 | ) | (120,000 | ) |
RETAINED EARNINGS FOR THE GROUP AT END OF YEAR |
1,441,265 |
765,867 |
Profit attributable to: |
Owners of the parent | 795,398 | 261,886 |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 134,926 | 151,792 |
Tangible assets | 10 | 1,887,606 | 1,878,282 |
Investments | 11 | - | - |
2,022,532 | 2,030,074 |
CURRENT ASSETS |
Stocks | 12 | 1,534,176 | 2,219,624 |
Debtors | 13 | 2,676,493 | 2,417,445 |
Cash at bank and in hand | 250,334 | 14,057 |
4,461,003 | 4,651,126 |
CREDITORS |
Amounts falling due within one year | 14 | 2,736,234 | 3,378,394 |
NET CURRENT ASSETS | 1,724,769 | 1,272,732 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 3,747,301 | 3,302,806 |
CREDITORS |
Amounts falling due after more than one year | 15 | (1,160,409 | ) | (1,444,850 | ) |
PROVISIONS FOR LIABILITIES | 20 | (330,528 | ) | (276,990 | ) |
NET ASSETS | 2,256,364 | 1,580,966 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 100 | 100 |
Merger reserve | 22 | 814,999 | 814,999 |
Retained earnings | 22 | 1,441,265 | 765,867 |
SHAREHOLDERS' FUNDS | 2,256,364 | 1,580,966 |
The financial statements were approved by the director and authorised for issue on 7 November 2024 and were signed by: |
R G Massey - Director |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
COMPANY STATEMENT OF FINANCIAL POSITION |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Merger reserve | 22 | 814,999 | 814,999 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 120,000 | 120,000 |
The financial statements were approved by the director and authorised for issue on |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,301,434 | 563,393 |
Interest paid | (67,325 | ) | (44,403 | ) |
Interest element of hire purchase payments paid | (23,763 | ) | (28,867 | ) |
Tax paid | (81,468 | ) | (73,238 | ) |
Net cash from operating activities | 2,128,878 | 416,885 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (246,162 | ) | (53,394 | ) |
Interest received | 66 | 648 |
Net cash from investing activities | (246,096 | ) | (52,746 | ) |
Cash flows from financing activities |
Loan repayments in year | (205,580 | ) | (98,060 | ) |
Capital repayments in year | (139,895 | ) | (131,333 | ) |
Equity dividends paid | (120,000 | ) | (120,000 | ) |
Net cash from financing activities | (465,475 | ) | (349,393 | ) |
Increase in cash and cash equivalents | 1,417,307 | 14,746 |
Cash and cash equivalents at beginning of year | 2 | (1,166,973 | ) | (1,181,719 | ) |
Cash and cash equivalents at end of year | 2 | 250,334 | (1,166,973 | ) |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 1,085,697 | 325,723 |
Depreciation charges | 236,838 | 266,017 |
Amortisation charges | 16,866 | 16,866 |
Finance costs | 91,088 | 73,270 |
Finance income | (66 | ) | (648 | ) |
1,430,423 | 681,228 |
Decrease in stocks | 685,448 | 176,928 |
(Increase)/decrease in trade and other debtors | (259,048 | ) | 162,739 |
Increase/(decrease) in trade and other creditors | 444,611 | (457,502 | ) |
Cash generated from operations | 2,301,434 | 563,393 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30 April 2024 |
30.4.24 | 1.5.23 |
£ | £ |
Cash and cash equivalents | 250,334 | 14,057 |
Bank overdrafts | - | (1,181,030 | ) |
250,334 | (1,166,973 | ) |
Year ended 30 April 2023 |
30.4.23 | 1.5.22 |
£ | £ |
Cash and cash equivalents | 14,057 | 27,276 |
Bank overdrafts | (1,181,030 | ) | (1,208,995 | ) |
(1,166,973 | ) | (1,181,719 | ) |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 APRIL 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.5.23 | Cash flow | changes | At 30.4.24 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 14,057 | 236,277 | 250,334 |
Bank overdrafts | (1,181,030 | ) | 1,181,030 | - |
(1,166,973 | ) | 1,417,307 | 250,334 |
Debt |
Finance leases | (691,884 | ) | 139,895 | - | (551,989 | ) |
Debts falling due |
within 1 year | (103,400 | ) | 407,137 | (340,920 | ) | (37,183 | ) |
Debts falling due |
after 1 year | (887,522 | ) | (201,557 | ) | 340,920 | (748,159 | ) |
(1,682,806 | ) | 345,475 | - | (1,337,331 | ) |
Total | (2,849,779 | ) | 1,762,782 | - | (1,086,997 | ) |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | STATUTORY INFORMATION |
RM217 Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated financial statements comprise the audited financial statements of the company and its subsidiary undertakings for the year to 30 April 2024. |
The consolidated financial statements have been prepared in accordance with the principles of acquisition accounting as set out in FRS 102. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Significant judgements and estimates |
In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
There are currently no key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements. |
Turnover |
Turnover represents the amounts (excluding Value Added Tax) derived from the provision of goods and services to customers during the financial period. Revenue is recognised upon delivery of the goods and services. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Goodwill, relates to the amount paid in connection with the following acquisitions: |
- Acquisition of a business in 2011, amortised evenly over its estimated useful life of 4 years. |
- Acquisition of a business in 2017, amortised evenly over its estimated useful life of 20 months. |
- Acquisition of a business in 2017, amortised evenly over its estimated useful life of 15 years. |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Motor vehicles | - |
Fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided at the following annuals 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 shorter. |
Freehold property | - | Not provided on land, and straight line over 20 years on buildings |
Plant & machinery | - | Straight line over 3-20 years and over the term of the lease |
Motor vehicles | - | Straight line over 3 years |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Government grants |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurances that the company will comply with conditions attached to them and the grants will be received using the accruals model. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price, less further costs expected to be incurred to completion and disposal. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Provision is made for obsolete, slow-moving or defective items where appropriate. |
Financial instruments |
The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks, other third parties and related parties. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement. |
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate.If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the financial reporting date. |
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is as enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the statement of financial position. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to the income statement over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the income statement in the period to which they relate. |
Investments |
In the parent company financial statements investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment. |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 2,351,730 | 2,285,052 |
Social security costs | 216,880 | 204,235 |
Other pension costs | 154,883 | 244,039 |
2,723,493 | 2,733,326 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 1 | 1 |
Production | 74 | 76 |
Administration | 8 | 11 |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
3. | EMPLOYEES AND DIRECTORS - continued |
2024 | 2023 |
£ | £ |
Director's remuneration | 34,675 | 38,331 |
Director's pension contributions to money purchase schemes | 5,220 | 98,277 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 46,925 | 38,242 |
Other operating leases | 41,709 | 25,624 |
Depreciation - owned assets | 109,532 | 138,711 |
Depreciation - assets on hire purchase contracts | 127,306 | 127,306 |
Goodwill amortisation | 16,866 | 16,866 |
Auditors' remuneration | 13,400 | 12,650 |
Foreign exchange differences | (17,106 | ) | 12,688 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Loan interest | 67,325 | 44,403 |
Hire purchase interest | 23,763 | 28,867 |
91,088 | 73,270 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 236,761 | 81,468 |
Adjustment re previous years | - | (11,146 | ) |
Total current tax | 236,761 | 70,322 |
Deferred tax | 53,538 | (6,485 | ) |
Tax on profit | 290,299 | 63,837 |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 1,085,697 | 325,723 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
271,424 |
81,431 |
Effects of: |
Expenses not deductible for tax purposes | 18,875 | 18,391 |
Adjustments to tax charge in respect of previous periods | - | (11,146 | ) |
Change in rate | - | (23,015 | ) |
Super deduction | - | (1,824 | ) |
Total tax charge | 290,299 | 63,837 |
Factors that may affect future tax charges |
The statutory UK corporation tax is currently 25%, with a small profits rate of 19%. |
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled, or the asset is realised, based on tax law and the corporation tax rates that have been enacted, or substantially enacted, at the year end date. |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim | 120,000 | 120,000 |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 | 639,289 |
AMORTISATION |
At 1 May 2023 | 487,497 |
Amortisation for year | 16,866 |
At 30 April 2024 | 504,363 |
NET BOOK VALUE |
At 30 April 2024 | 134,926 |
At 30 April 2023 | 151,792 |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 May 2023 | 1,099,543 | 2,908,365 | 24,000 | 4,031,908 |
Additions | - | 246,162 | - | 246,162 |
At 30 April 2024 | 1,099,543 | 3,154,527 | 24,000 | 4,278,070 |
DEPRECIATION |
At 1 May 2023 | 671,556 | 1,476,736 | 5,334 | 2,153,626 |
Charge for year | 56,916 | 171,922 | 8,000 | 236,838 |
At 30 April 2024 | 728,472 | 1,648,658 | 13,334 | 2,390,464 |
NET BOOK VALUE |
At 30 April 2024 | 371,071 | 1,505,869 | 10,666 | 1,887,606 |
At 30 April 2023 | 427,987 | 1,431,629 | 18,666 | 1,878,282 |
Included in cost of land and buildings is freehold land of £260,000 (2023 - £260,000) which is not depreciated. |
The net book value of tangible fixed assets includes £ 848,705 (2023 - £ 976,011 ) in respect of assets held under hire purchase contracts. |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiary |
Name of subsidiary | % Held | Principal activity |
100 | The manufacture and design of paper sacks. |
The above holding is £1 Ordinary shares and the company is registered in England and Wales. |
The company has the same registered office as the holding company. |
12. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Raw materials | 1,038,714 | 1,559,941 |
Work-in-progress | 125,948 | 130,955 |
Finished goods | 369,514 | 528,728 |
1,534,176 | 2,219,624 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Trade debtors | 2,421,692 | 2,290,108 |
Other debtors | 132,931 | - |
Prepayments | 121,870 | 127,337 |
2,676,493 | 2,417,445 |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 16) | 37,183 | 1,284,430 |
Hire purchase contracts (see note 17) | 139,739 | 134,556 |
Trade creditors | 1,302,222 | 1,341,952 |
Taxation | 236,761 | 81,468 |
Other taxes and social security | 69,034 | 46,199 |
VAT | 582,206 | 403,437 |
Other creditors | 20,704 | 13,571 |
Accrued expenses | 348,385 | 72,781 |
2,736,234 | 3,378,394 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 16) | 748,159 | 887,522 |
Hire purchase contracts (see note 17) | 412,250 | 557,328 |
Amounts owed to group undertakings | - | - | 842,126 | 842,126 |
1,160,409 | 1,444,850 |
Amounts owed to group undertakings are unsecured and interest free. |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | - | 1,181,030 |
Bank loans | 37,183 | 103,400 |
37,183 | 1,284,430 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years | 40,010 | 104,559 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years | 708,149 | 782,963 |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Gross obligations repayable: |
Within one year | 158,246 | 158,246 |
Between one and five years | 435,177 | 598,341 |
593,423 | 756,587 |
Finance charges repayable: |
Within one year | 18,507 | 23,690 |
Between one and five years | 22,927 | 41,013 |
41,434 | 64,703 |
Net obligations repayable: |
Within one year | 139,739 | 134,556 |
Between one and five years | 412,250 | 557,328 |
551,989 | 691,884 |
The hire purchase contracts relate to a number of fixed assets. The remaining lease term is four years and nine months. At the end of the lease, title of the assets passes to the company for a nominal fee. |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 61,786 | 10,162 |
Between one and five years | 155,744 | - |
217,530 | 10,162 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank overdraft | - | 1,181,030 |
Bank loans | 785,342 | 990,922 |
Hire purchase contracts | 551,989 | 691,884 |
1,337,331 | 2,863,836 |
The bank loans comprise two separate bank loans which are payable in monthly instalments. These loans are secured over the company's property. |
A cross guarantee is in place, as described in the contingent liabilities note to the financial statements. |
Hire purchase contracts are secured on the assets to which they relate. |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
19. | FINANCIAL INSTRUMENTS |
The group has the following financial instruments: |
2024 | 2023 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Cash at bank and in hand | 250,334 | 14,057 |
Trade debtors | 2,421,692 | 2,290,108 |
Financial liabilities measured at amortised cost |
Bank loans and overdrafts | 785,342 | 2,171,952 |
Hire purchase | 551,989 | 691,884 |
Trade creditors | 1,302,222 | 1,341,952 |
There is no interest income or expense for financial assets and liabilities that are not measured at fair value through profit or loss. |
20. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 330,528 | 276,990 |
Group |
Deferred |
tax |
£ |
Balance at 1 May 2023 | 276,990 |
Charge to Income Statement during year | 53,538 |
Balance at 30 April 2024 | 330,528 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
22. | RESERVES |
Group |
Retained | Merger |
earnings | reserve | Totals |
£ | £ | £ |
At 1 May 2023 | 765,867 | 814,999 | 1,580,866 |
Profit for the year | 795,398 | - | 795,398 |
Dividends | (120,000 | ) | - | (120,000 | ) |
At 30 April 2024 | 1,441,265 | 814,999 | 2,256,264 |
RM217 LIMITED (REGISTERED NUMBER: 10715662) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
22. | RESERVES - continued |
Company |
Retained | Merger |
earnings | reserve | Totals |
£ | £ | £ |
At 1 May 2023 | 814,999 |
Profit for the year | - |
Dividends | ( |
) | - | ( |
) |
At 30 April 2024 | 814,999 |
23. | CONTINGENT LIABILITIES |
Under the composite accounting agreement the company has guaranteed the bank borrowing of group undertakings which amounted to £785,342 (2023 - £2,171,952). |
The company's assets are subject to a debenture in favour of the bank. |
24. | CAPITAL COMMITMENTS |
2024 | 2023 |
£ | £ |
Contracted but not provided for in the |
financial statements | - | 178,233 |
25. | RELATED PARTY DISCLOSURES |
Key management personnel of the entity or its parent (in the aggregate) |
2024 | 2023 |
£ | £ |
Dividends paid | 120,000 | 120,000 |
Other related parties |
2024 | 2023 |
£ | £ |
Amount due from related party | 132,931 | - |
The amounts owed from the other related party represent a short-term loan. |
The loan is unsecured, interest-free and repayable on demand. |
During the year, a total of key management personnel compensation of £ 131,724 (2023 - £ 210,045 ) was paid. |
26. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is R G Massey. |