Company registration number 09459485 (England and Wales)
RTC SAFETY SURFACES HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
RTC SAFETY SURFACES HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mrs H Jones
Mr C Jones
Company number
09459485
Registered office
Woodland House
Chestnut Business Park
Smallshaw Lane
Burnley
Lancashire
BB11 5SQ
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Business address
Woodland House
Chestnut Business Park
Smallshaw Lane
Burnley
Lancashire
BB11 5SQ
RTC SAFETY SURFACES HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 24
RTC SAFETY SURFACES HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 1 -

The directors present the strategic report for the year ended 28 February 2024.

Review of the business

The activity of the main trading company in the group is as a supplier and installer of resin bound safety surfaces. The product is installed in situ, throughout the whole of the UK with occasional international applications.

 

The directors are pleased with the results for the year which have shown a small growth in respect of both of the group's key performance indicators, being turnover (1.5%) and gross profit (1.6%), following a very successful year ended 28 February 2023. Net profit continues to be strong.

 

Post year end the group has continued the trend of controlled growth and has invested in increasing capacity to allow for stronger growth and greater economies of scale.

Principal risks and uncertainties

The trading subsidiary company operates in a very competitive, price driven market. High customer retention is achieved with excellent customer relationships maintained through the exceptional customer service provided by the office team. Market prices are constantly monitored and the sales team ensures that pricing is competitive.

 

The group continues to be funded by retained profits and holds good cash reserves, therefore interest rate change does not pose any significant risk.

 

The trading company is exposed to the usual credit risks associated with selling on credit and manages this through rigorous credit control procedures. The directors undertake monthly credit searches on their repeat customers and are willing to adjust credit terms accordingly. All new customers are credit checked before any credit is issued. The groupd has a history of very few bad debts and is able to recover its debts in a timely manner.

Development and performance

Following the year end the trading subsidiary company will look to continue the strategy of controlled growth expanding the customer base and increasing market share.

 

Staff retention is a key performance indicator and the directors are committed to retaining the many long serving employees and developing all staff to ensure career progression for them and continuity of quality for the company. To enable this, the group has invested in staff training and increased salaries.

 

The group continues to nurture strong relationships with a trustworthy network of suppliers who provide consistency of raw material quality and logistics.

 

Since the year end the group has recruited in all departments to expand our contracts, sales and installation teams to support our growth through increased market share.

 

The directors are confident that the group will continue its path of organic growth and improved efficiencies.

On behalf of the board

Mrs H Jones
Director
28 November 2024
RTC SAFETY SURFACES HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 28 February 2024.

Principal activities

The principal activity of the company and group continued to be that of laying children's playground safety surfaces.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £374,924. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mrs H Jones
Mr C Jones
Auditor

In accordance with the company's articles, a resolution proposing that be reappointed as auditor of the group will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mrs H Jones
Director
28 November 2024
RTC SAFETY SURFACES HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 3 -

The directors are responsible for preparing the Annual 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 company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

RTC SAFETY SURFACES HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RTC SAFETY SURFACES HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of RTC Safety Surfaces Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2024 which comprise the group profit and loss account, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 directors with respect to going concern are described in the relevant sections of this report.

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 contained within the annual report. 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. 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 course of 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 our audit:

RTC SAFETY SURFACES HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RTC SAFETY SURFACES HOLDINGS LIMITED
- 5 -
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 their 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:

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 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

In identifying and assessing risks of material misstatements in respect of irregularities (including fraud) we considered the following:

 

We have also performed specific procedures to consider the risk of management override and of fraud arising in significant transactions outside the normal course of business.

We did not identify a material risk of non-compliance with laws and regulations or of fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

In the previous accounting period the directors of the company took advantage of audit exemption under section 477 of the Companies Act 2006.

RTC SAFETY SURFACES HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RTC SAFETY SURFACES HOLDINGS LIMITED
- 6 -

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.

Jane Smith
Senior Statutory Auditor
28 November 2024
For and on behalf of Pierce C A Limited
Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
RTC SAFETY SURFACES HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
11,490,611
11,313,475
Cost of sales
(7,951,147)
(8,006,535)
Gross profit
3,539,464
3,306,940
Administrative expenses
(2,795,056)
(1,568,442)
Operating profit
744,408
1,738,498
Interest receivable and similar income
49,640
13,479
Interest payable and similar expenses
(284)
(281)
Profit before taxation
793,764
1,751,696
Tax on profit
7
(200,051)
(329,612)
Profit for the financial year
593,713
1,422,084
Profit for the financial year is all attributable to the owners of the parent company.
RTC SAFETY SURFACES HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
28 FEBRUARY 2024
28 February 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
260,259
313,834
Investment property
10
285,608
285,608
545,867
599,442
Current assets
Stocks
13
181,759
186,150
Debtors
14
1,695,876
1,285,414
Cash at bank and in hand
2,624,081
1,972,655
4,501,716
3,444,219
Creditors: amounts falling due within one year
15
(2,409,650)
(1,573,316)
Net current assets
2,092,066
1,870,903
Total assets less current liabilities
2,637,933
2,470,345
Provisions for liabilities
Provisions
53,538
91,693
Deferred tax liability
16
64,908
77,954
(118,446)
(169,647)
Net assets
2,519,487
2,300,698
Capital and reserves
Called up share capital
17
490
490
Capital redemption reserve
510
510
Profit and loss reserves
2,518,487
2,299,698
Total equity
2,519,487
2,300,698

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 28 November 2024 and are signed on its behalf by:
28 November 2024
Mrs H Jones
Director
Company registration number 09459485 (England and Wales)
RTC SAFETY SURFACES HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2024
28 February 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
10
285,608
285,608
Investments
11
490
490
286,098
286,098
Current assets
Debtors
14
1,081,901
883,807
Cash at bank and in hand
11,575
4,676
1,093,476
888,483
Creditors: amounts falling due within one year
15
(5,000)
-
Net current assets
1,088,476
888,483
Net assets
1,374,574
1,174,581
Capital and reserves
Called up share capital
17
490
490
Profit and loss reserves
1,374,084
1,174,091
Total equity
1,374,574
1,174,581

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £574,917 (2023 - £1,355,091 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 28 November 2024 and are signed on its behalf by:
28 November 2024
Mrs H Jones
Director
Company registration number 09459485 (England and Wales)
RTC SAFETY SURFACES HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2022
490
510
1,488,614
1,489,614
Year ended 28 February 2023:
Profit and total comprehensive income
-
-
1,422,084
1,422,084
Dividends
8
-
-
(611,000)
(611,000)
Balance at 28 February 2023
490
510
2,299,698
2,300,698
Year ended 28 February 2024:
Profit and total comprehensive income
-
-
593,713
593,713
Dividends
8
-
-
(374,924)
(374,924)
Balance at 28 February 2024
490
510
2,518,487
2,519,487
RTC SAFETY SURFACES HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2022
490
430,000
430,490
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
1,355,091
1,355,091
Dividends
8
-
(611,000)
(611,000)
Balance at 28 February 2023
490
1,174,091
1,174,581
Year ended 28 February 2024:
Profit and total comprehensive income
-
574,917
574,917
Dividends
8
-
(374,924)
(374,924)
Balance at 28 February 2024
490
1,374,084
1,374,574
RTC SAFETY SURFACES HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
1,520,446
1,885,496
Interest paid
(284)
(281)
Income taxes paid
(425,699)
(271,942)
Net cash inflow from operating activities
1,094,463
1,613,273
Investing activities
Purchase of tangible fixed assets
(119,003)
(193,841)
Proceeds from disposal of tangible fixed assets
1,250
-
Purchase of investment property
-
(285,608)
Interest received
49,640
13,479
Net cash used in investing activities
(68,113)
(465,970)
Financing activities
Dividends paid to equity shareholders
(374,924)
(611,000)
Net cash used in financing activities
(374,924)
(611,000)
Net increase in cash and cash equivalents
651,426
536,303
Cash and cash equivalents at beginning of year
1,972,655
1,436,352
Cash and cash equivalents at end of year
2,624,081
1,972,655
RTC SAFETY SURFACES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 13 -
1
Accounting policies
Company information

RTC Safety Surfaces Holdings Limited ("the company") is a private limited company, domiciled and incorporated in England and Wales. The registered office is Woodland House, Chestnut Business Park, Smallshaw Lane, Burnley, Lancashire, BB11 5SQ.

 

The group consists of RTC Safety Surfaces Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company RTC Safety Surfaces Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 28 February 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover represents amounts receivable for goods net of VAT and trade discounts and has been wholly derived from the group's principal activity.

RTC SAFETY SURFACES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
15-33% reducing balance
Fixtures and fittings
15-33% reducing balance
Motor vehicles
25% / 33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

RTC SAFETY SURFACES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

RTC SAFETY SURFACES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.11
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.13
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

RTC SAFETY SURFACES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Principal activity
11,483,591
11,308,795
Rent receivable
7,020
4,680
11,490,611
11,313,475
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,000
-
Audit of the financial statements of the company's subsidiaries
10,000
-
15,000
-
RTC SAFETY SURFACES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 18 -
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
60
60
2
2

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,263,485
2,155,958
-
0
-
0
Pension costs
172,327
55,098
-
0
-
0
3,435,812
2,211,056
-
0
-
0
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,299,151
258,665
Company pension contributions to defined contribution schemes
120,132
10,964
1,419,283
269,629
The number of directors for whom retirement benefits are accruing under defined contribution schemes across the group amounted to 4 (2023 - 4).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
888,646
157,927
RTC SAFETY SURFACES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 19 -
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
213,097
321,700
Deferred tax
Origination and reversal of timing differences
(13,046)
7,912
Total tax charge
200,051
329,612

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
793,764
1,751,696
Expected tax charge based on the standard rate of corporation tax in the UK of 24.46% (2023: 19.00%)
194,163
332,822
Tax effect of expenses that are not deductible in determining taxable profit
5,893
7,754
Other adjustments
(5)
(10,964)
Taxation charge
200,051
329,612
8
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
374,924
611,000
RTC SAFETY SURFACES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 20 -
9
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 March 2023
244,289
98,926
433,446
776,661
Additions
9,910
-
0
109,093
119,003
Disposals
-
0
-
0
(117,550)
(117,550)
At 28 February 2024
254,199
98,926
424,989
778,114
Depreciation and impairment
At 1 March 2023
179,663
80,136
203,028
462,827
Depreciation charged in the year
10,829
5,030
155,599
171,458
Eliminated in respect of disposals
-
0
-
0
(116,430)
(116,430)
At 28 February 2024
190,492
85,166
242,197
517,855
Carrying amount
At 28 February 2024
63,707
13,760
182,792
260,259
At 28 February 2023
64,626
18,790
230,418
313,834
The company had no tangible fixed assets at 28 February 2024 or 28 February 2023.
10
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 March 2023 and 28 February 2024
285,608
285,608

The investment property is included at directors' opinion of open market value as at 28 February 2024. The historical cost of the property is £285,608 (2023 - £285,608).

RTC SAFETY SURFACES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 21 -
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
490
490
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2023 and 28 February 2024
490
Carrying amount
At 28 February 2024
490
At 28 February 2023
490
12
Subsidiaries

Details of the company's subsidiaries at 28 February 2024 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
RTC Safety Surfaces Limited
1 - Below
Direct
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Woodland House, Chestnut Business Park, Smallshaw Lane, Burnley, Lancashire BB11 5SQ.
13
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
181,759
186,150
-
-
RTC SAFETY SURFACES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 22 -
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
825,130
910,502
-
0
-
0
Corporation tax recoverable
76,903
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
1,081,901
883,477
Other debtors
619,099
178,207
-
0
-
0
Prepayments and accrued income
174,744
196,705
-
0
330
1,695,876
1,285,414
1,081,901
883,807

Other debtors includes amounts loaned to the directors of £466,088 (2023: £668 owed to the directors).

15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
1,138,886
1,179,758
-
0
-
0
Corporation tax payable
-
0
135,699
-
0
-
0
Other taxation and social security
34,677
36,188
-
-
Other creditors
10,938
11,272
-
0
-
0
Accruals and deferred income
1,225,149
210,399
5,000
-
0
2,409,650
1,573,316
5,000
-
0
RTC SAFETY SURFACES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 23 -
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
64,908
77,954
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 March 2023
77,954
-
Credit to profit or loss
(13,046)
-
Liability at 28 February 2024
64,908
-

The deferred tax liability set out above is expected to reverse over the useful life of the assets concerned and relates to accelerated capital allowances that are expected to mature within the same period.

17
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
441
441
441
441
Ordinary A shares of £1 each
49
49
49
49
490
490
490
490
RTC SAFETY SURFACES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 24 -
18
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
72,943
52,996
-
-
Between two and five years
87,809
69,642
-
-
160,752
122,638
-
-
19
Related party transactions

During the year a pension contribution was made on behalf of one of the directors.

20
Controlling party

The company is controlled by Mrs H Jones by virtue of her majority shareholding in the company.

21
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
593,713
1,422,084
Adjustments for:
Taxation charged
200,051
329,612
Finance costs
284
281
Investment income
(49,640)
(13,479)
(Gain)/loss on disposal of tangible fixed assets
(130)
9,539
Depreciation and impairment of tangible fixed assets
171,458
153,096
Decrease in provisions
(38,155)
(139,500)
Movements in working capital:
Decrease/(increase) in stocks
4,391
(78,378)
(Increase)/decrease in debtors
(333,558)
517,776
Increase/(decrease) in creditors
972,032
(315,535)
Cash generated from operations
1,520,446
1,885,496
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