Company registration number SC328828 (Scotland)
RADIO DESIGN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
RADIO DESIGN LIMITED
COMPANY INFORMATION
Directors
K D Hawthorn
E G Hawthorn
Secretary
K R Stephen
Company number
SC328828
Registered office
37 Albyn Place
Aberdeen
Aberdeen City
Scotland
AB10 1YN
Auditor
Azets Audit Services
37 Albyn Place
Aberdeen
United Kingdom
AB10 1JB
Business address
Shipley Wharf
Wharf Street
Shipley
West Yorkshire
United Kingdom
BD17 7DW
RADIO DESIGN LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 34
RADIO DESIGN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Principal activities and business review

The principal activity of the group during the year was a global provider of high performance, technically complex RF products and solutions for use in the wireless telecommunication systems.

 

The results for the year reflect a continuation of the challenging trading conditions being experienced across the group last year. We continued to be faced with a variety of different pressures; most notably supply chain disruption, project award delays and labour shortages. In addition, we saw significant raw material cost inflation.

Our strategy is to concentrate on providing excellent customer service in the markets in which we operate. Constant focus on our cost base continues to benefit operating profits, margins and cash flow. We continue to seek opportunities to grow the business and believe that we are well placed to deliver consistent long-term growth.

In the year ended 31 March 2024 the group achieved a turnover of £16m (2023: £11.1m) and a loss before tax of £1m (2023: £3.4m). Net assets of the group at the balance sheet date were £14.5m (2023: £15.2m). The decrease was in line with the expectations of the directors.

Principal risks and uncertainties

Competition

The group has a number of large customers with which it maintains very good working relationships. There are regular project management meetings which ensure all matters are addressed timeously and customer satisfaction is maintained.

 

Employees

The future success of the group depends on the skills and efforts of our employees and the ability to retain and develop these individuals. The group emphasises accountability and responsibility at the local level and encourages an entrepreneurial approach to running operations. The group constantly reviews its remuneration packages to make sure they remain competitive and also maintains development and succession planning programmes.

 

Suppliers

The group has a widespread supplier database due to its operations in multiple areas throughout the United Kingdom and abroad.

 

Regulation

Certain aspects of the group's activities mean that some employees can be exposed to hazardous environments. The group is committed to maintaining a safe working environment and a culture of zero tolerance to accidents. the group has in place quality and safety procedures which are regularly audited by professional bodies and customers.

 

Apart from the above the directors are not aware of any major risks or uncertainties facing the company with the Statement of Financial Position continuing to be strong.

Key performance indicators

The directors consider the key performance indicators of the group to be turnover 2024: £16m; (2023: £11.1m), operating loss 2024: £1m; (2023: £3.4m), operating loss % 2024: 6.3%; (2023: 30.6%) net assets 2024: £14.5m; (2023: £15.2m) and cash position 2024: £0.6m; (2023: £0.2m).

RADIO DESIGN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Financial instruments

Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

 

Interest rate risk

The group monitors interest rates closely in order to minimise the potential exposure risk it has to any interest rate movements.

 

Foreign currency risk

The group's principal foreign currency exposures arise from trading with overseas companies. Group policies of regular conversion meets its objectives of managing exposure to currency risk. No financial instruments are in place to remove the effect of fluctuations in exchanges rates on the company.

 

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

On behalf of the board

K D Hawthorn
Director
23 December 2024
RADIO DESIGN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a dividend.

Directors

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

K D Hawthorn
E G Hawthorn
Research and development

The group continues to invest in research and development. This has resulted in improvements to the group's product portfolio which will benefit the company in the medium to long term. Where appropriate, development costs in respect of the improvements have been capitalised in the balance sheet.

Future developments

The directors do not foresee any changes in the group's activities in the immediate future.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Disclosure of information in the strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the group's results and activities.

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.

On behalf of the board
K D Hawthorn
Director
23 December 2024
RADIO DESIGN LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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.

RADIO DESIGN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RADIO DESIGN LIMITED
- 5 -
Opinion

We have audited the financial statements of Radio Design Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group statement of comprehensive income, 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:

RADIO DESIGN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RADIO DESIGN LIMITED
- 6 -
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.

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.

RADIO DESIGN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RADIO DESIGN LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  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.

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.

Angus Cowie (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
23 December 2024
Chartered Accountants
Statutory Auditor
37 Albyn Place
Aberdeen
United Kingdom
AB10 1JB
RADIO DESIGN LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
15,975,693
11,065,958
Cost of sales
(11,777,827)
(9,218,727)
Gross profit
4,197,866
1,847,231
Administrative expenses
(5,235,431)
(5,271,062)
Other operating income
32,762
43,246
Operating loss
4
(1,004,803)
(3,380,585)
Interest receivable and similar income
8
8,552
1,490
Interest payable and similar expenses
9
(16,783)
(6,961)
Loss before taxation
(1,013,034)
(3,386,056)
Tax on loss
10
258,240
948,433
Loss for the financial year
(754,794)
(2,437,623)
Other comprehensive income
Currency translation gain/(loss) taken to retained earnings
64,861
(4,605)
Total comprehensive income for the year
(689,933)
(2,442,228)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
RADIO DESIGN LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
2,901,441
3,118,279
Tangible assets
11
1,095,502
1,178,137
Investments
13
66,174
47,433
4,063,117
4,343,849
Current assets
Stocks
15
8,403,826
9,181,679
Debtors
17
6,651,114
4,887,703
Cash at bank and in hand
618,939
247,517
15,673,879
14,316,899
Creditors: amounts falling due within one year
18
(4,935,295)
(3,162,866)
Net current assets
10,738,584
11,154,033
Total assets less current liabilities
14,801,701
15,497,882
Creditors: amounts falling due after more than one year
19
(135,115)
(119,934)
Provisions for liabilities
Deferred tax liability
21
155,298
176,727
(155,298)
(176,727)
Net assets
14,511,288
15,201,221
Capital and reserves
Called up share capital
23
1,000
1,000
Profit and loss reserves
14,510,288
15,200,221
Total equity
14,511,288
15,201,221
The financial statements were approved by the board of directors and authorised for issue on 23 December 2024 and are signed on its behalf by:
23 December 2024
K D Hawthorn
Director
Company registration number SC328828 (Scotland)
RADIO DESIGN LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
2,901,441
3,118,279
Tangible assets
11
654,319
659,294
Investments
13
252,533
281,532
3,808,293
4,059,105
Current assets
Stocks
15
6,353,739
7,113,153
Debtors
17
4,995,412
5,064,097
Cash at bank and in hand
433,302
148,576
11,782,453
12,325,826
Creditors: amounts falling due within one year
18
(2,409,734)
(2,305,389)
Net current assets
9,372,719
10,020,437
Total assets less current liabilities
13,181,012
14,079,542
Provisions for liabilities
Deferred tax liability
21
155,298
176,727
(155,298)
(176,727)
Net assets
13,025,714
13,902,815
Capital and reserves
Called up share capital
23
1,000
1,000
Profit and loss reserves
13,024,714
13,901,815
Total equity
13,025,714
13,902,815

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £877,101 (2023 - £1,708,363 loss).

The financial statements were approved by the board of directors and authorised for issue on 23 December 2024 and are signed on its behalf by:
23 December 2024
K D Hawthorn
Director
Company registration number SC328828 (Scotland)
RADIO DESIGN LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
1,000
17,642,449
17,643,449
Year ended 31 March 2023:
Loss for the year
-
(2,437,623)
(2,437,623)
Other comprehensive income:
Currency translation differences
-
(4,605)
(4,605)
Total comprehensive income
-
(2,442,228)
(2,442,228)
Balance at 31 March 2023
1,000
15,200,221
15,201,221
Year ended 31 March 2024:
Loss for the year
-
(754,794)
(754,794)
Other comprehensive income:
Currency translation differences
-
64,861
64,861
Total comprehensive income
-
(689,933)
(689,933)
Balance at 31 March 2024
1,000
14,510,288
14,511,288
RADIO DESIGN LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
1,000
15,610,178
15,611,178
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
(1,708,363)
(1,708,363)
Balance at 31 March 2023
1,000
13,901,815
13,902,815
Year ended 31 March 2024:
Profit and total comprehensive income
-
(877,101)
(877,101)
Balance at 31 March 2024
1,000
13,024,714
13,025,714
RADIO DESIGN LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,033,367
1,015,027
Interest paid
(16,783)
(6,961)
Income taxes refunded
555,831
157,991
Net cash inflow from operating activities
1,572,415
1,166,057
Investing activities
Purchase of intangible assets
(856,765)
(855,816)
Purchase of tangible fixed assets
(400,094)
(247,739)
Proceeds from disposal of tangible fixed assets
17,842
4,348
Proceeds from disposal of subsidiaries
-
33,083
Purchase of investments
(18,741)
(1,706)
Interest received
8,552
1,490
Net cash used in investing activities
(1,249,206)
(1,066,340)
Financing activities
Payment of finance leases obligations
(34,649)
(83,157)
Net cash used in financing activities
(34,649)
(83,157)
Net increase in cash and cash equivalents
288,560
16,560
Cash and cash equivalents at beginning of year
247,517
223,132
Effect of foreign exchange rates
82,862
7,825
Cash and cash equivalents at end of year
618,939
247,517
RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information

Radio Design Limited (“the company”), SC328828, is a private limited company domiciled and incorporated in Scotland. The registered office is 37 Albyn Place, Aberdeen, Aberdeen City, Scotland, AB10 1YN. The principal place of business is Shipley Wharf, Wharf Street, Shipley, West Yorkshire, United Kingdom, BD17 7DW.

 

The group consists of Radio Design 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.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company, Radio Design Limited, together with all entities controlled by the parent company (its subsidiaries) excluding Radio Design OY which is not consolidated due to it not being material to the group.

 

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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

As part of their consideration of going concern the Directors have reviewed the group's future cash flow forecasts and profit projections which are based on internal information and recent experience. Given the global political and economic continuing uncertainty, it is difficult to estimate with precision the impact on the group's prospective financial performance.

Based on their assessment of the group's prospects and viability the Directors have formed a judgement, at the time of approving the financial statements, that there are no material uncertainties that cast doubt on the group's going concern status and that there is a reasonable expectation that the group has adequate resources to continue in operational existence for at least twelve months from the date of approval of the financial statements. The Directors therefore consider it appropriate to adopt the going concern basis of accounting in preparing its financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.6
Research and development expenditure

All research expenditure is charged to the profit and loss account in the period in which it is incurred. Development expenditure is charged to the profit and loss account in the period in which it is incurred unless it relates to the development of a new product and it is incurred after the technical feasibility and commercial viability of the product has been proven, the development costs can be measured reliably, future economic benefits are probable and the company intends to and has sufficient resources to complete the development and to use or sell the asset. Any such capitalised development expenditure is amortised on a straight-line basis so that it is charged to the profit and loss account over the expected life of the resulting product..

RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Development and patent costs
10% - 20% - straight line
1.8
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:

Leasehold improvements
10% - straight line
Plant and equipment
20% - 50% - straight line
Motor vehicles
20% - 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.

1.9
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.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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.

 

 

 

 

 

 

 

RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Cost is calculated using average cost method.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
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.

RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.13
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.

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.

RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
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.

1.15
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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account, 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.

RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
1.16
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.

1.17
Retirement benefits

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

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of tangible and intangible assets

The annual depreciation charge for tangible assets and amortisation charge for intangible assets is sensitive to changes in the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Recognition of deferred tax asset

The group makes an estimate that there will be sufficient profits made in the future to utilise unused tax losses. This assessment requires managements judgements and assumptions based on forecasted operating results, business plans and available tax planning opportunities.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Sale of goods
14,682,750
10,248,537
Rendering of services
1,292,943
817,421
15,975,693
11,065,958
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
6,904,005
6,339,208
Overseas
9,071,688
4,726,750
15,975,693
11,065,958
RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 22 -
2024
2023
£
£
Other revenue
Interest income
8,552
1,490
Other operating income
32,762
43,246
4
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses
74,220
54,605
Research and development costs
220,764
245,986
Depreciation of owned tangible fixed assets
460,362
421,995
Depreciation of tangible fixed assets held under finance leases
-
45,028
(Profit) on disposal of tanigble fixed assets
(13,476)
(1,258)
Amortisation of intangible assets
1,073,603
1,181,705
Operating lease charges
306,190
337,796
5
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
36,000
28,100
6
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
Management and administrative staff
28
32
18
22
Operations staff
109
109
49
66
Total
137
141
67
88
RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,890,552
3,495,770
2,312,146
2,954,412
Social security costs
243,535
251,355
243,535
251,355
Pension costs
219,257
215,520
219,257
215,520
3,353,344
3,962,645
2,774,938
3,421,287
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
162,471
155,296
Company pension contributions to defined contribution schemes
22,500
22,500
184,971
177,796

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
7,067
-
0
Other interest income
1,485
1,490
Total income
8,552
1,490
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
2,900
-
Interest payable to group undertakings
13,883
-
0
Interest on finance leases and hire purchase contracts
-
6,961
Total finance costs
16,783
6,961

 

 

 

 

 

 

RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(221,566)
(488,893)
Deferred tax
Origination and reversal of timing differences
(36,674)
(459,540)
Total tax credit
(258,240)
(948,433)

An increase in the UK corporation tax rate to 25% on profits over £250,000 (effective from 1 April 2023) was substantively enacted on 24 May 2021. This is expected to increase the group's future tax accordingly.

 

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

2024
2023
£
£
Loss before taxation
(1,013,034)
(3,386,056)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(253,259)
(643,351)
Tax effect of expenses that are not deductible in determining taxable profit
39,172
24,366
Effect of change in corporation tax rate
(88,692)
(103,086)
Research and development tax credit
310,439
151,725
Other permanent differences
50
-
0
Effect of overseas tax rates
4,279
(4,127)
Effect of capital allowances and depreciation
4,504
(11,871)
Additional deduction for R&D expenditure
(274,733)
(362,089)
Taxation credit
(258,240)
(948,433)
RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
11
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
423,631
5,628,339
100,214
6,152,184
Additions
4,862
375,665
19,567
400,094
Disposals
-
0
(22,025)
(42,590)
(64,615)
Exchange adjustments
(5,692)
(41,743)
(1,092)
(48,527)
At 31 March 2024
422,801
5,940,236
76,099
6,439,136
Depreciation and impairment
At 1 April 2023
278,450
4,611,458
84,139
4,974,047
Depreciation charged in the year
43,950
408,777
7,635
460,362
Eliminated in respect of disposals
-
0
(21,352)
(38,897)
(60,249)
Exchange adjustments
(2,829)
(26,773)
(924)
(30,526)
At 31 March 2024
319,571
4,972,110
51,953
5,343,634
Carrying amount
At 31 March 2024
103,230
968,126
24,146
1,095,502
At 31 March 2023
145,181
1,016,881
16,075
1,178,137
Company
Leasehold improvements
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
258,890
4,394,575
68,602
4,722,067
Additions
4,862
309,748
19,567
334,177
Disposals
-
0
(351,305)
(42,590)
(393,895)
At 31 March 2024
263,752
4,353,018
45,579
4,662,349
Depreciation and impairment
At 1 April 2023
196,556
3,808,803
57,414
4,062,773
Depreciation charged in the year
21,242
279,581
6,173
306,996
Eliminated in respect of disposals
-
0
(322,842)
(38,897)
(361,739)
At 31 March 2024
217,798
3,765,542
24,690
4,008,030
Carrying amount
At 31 March 2024
45,954
587,476
20,889
654,319
At 31 March 2023
62,334
585,772
11,188
659,294
RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Tangible fixed assets
(Continued)
- 26 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
-
0
103,213
-
0
103,213
12
Intangible fixed assets
Group
Development and patent costs
£
Cost
At 1 April 2023
6,908,700
Additions - internally developed
856,765
Disposals
(1,368,546)
At 31 March 2024
6,396,919
Amortisation and impairment
At 1 April 2023
3,790,421
Amortisation charged for the year
1,073,603
Disposals
(1,368,546)
At 31 March 2024
3,495,478
Carrying amount
At 31 March 2024
2,901,441
At 31 March 2023
3,118,279
RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Intangible fixed assets
(Continued)
- 27 -
Company
Development and patent costs
£
Cost
At 1 April 2023
6,908,700
Additions - internally developed
856,765
Disposals
(1,368,546)
At 31 March 2024
6,396,919
Amortisation and impairment
At 1 April 2023
3,790,421
Amortisation charged for the year
1,073,603
Disposals
(1,368,546)
At 31 March 2024
3,495,478
Carrying amount
At 31 March 2024
2,901,441
At 31 March 2023
3,118,279
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
252,533
281,532
Unlisted investments
66,174
47,433
-
0
-
0
66,174
47,433
252,533
281,532
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 April 2023
47,433
Additions
18,741
At 31 March 2024
66,174
Carrying amount
At 31 March 2024
66,174
At 31 March 2023
47,433
RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
281,532
Impairment
At 1 April 2023
-
Impairment losses
28,999
At 31 March 2024
28,999
Carrying amount
At 31 March 2024
252,533
At 31 March 2023
281,532
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Radio Design OY
Kaarnatie 27, 90530 Oulu, Finland
Ordinary
100.00
Radio Design India Private Limited
Plot 168, Sector-4, IMT Manesar, Gurugram, Haryana, 122052, India.
Ordinary
100.00

Radio Design OYs financial statements for the year ended 31 March 2024 are not included in the consolidation due to it not being material to the group. The company's aggregate amount of capital and reserves at 31 March 2024 was (£14,212) (2023: (£15,192)). The company's profit for the year was £559 (2023: £62 profit).

 

Radio Design India Private Limited's financial information for the year ended 31 March 2024 is included in consolidation.

15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
7,607,820
8,238,229
5,557,733
6,108,279
Finished goods and goods for resale
796,006
943,450
796,006
1,004,874
8,403,826
9,181,679
6,353,739
7,113,153

Impairment losses recognised in the profit or loss account in the year were £nil (2023: £nil).

RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
16
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
5,850,252
3,395,784
n/a
n/a
Equity instruments measured at cost less impairment
66,174
47,433
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
4,973,721
3,191,450
n/a
n/a

As permitted by the reduced disclosure framework within FRS 102, the company has taken advantage of the exemption from disclosing the carrying amount of certain classes of financial instruments, denoted by 'n/a' above.

17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,407,286
2,772,448
2,440,085
2,676,459
Corporation tax recoverable
695,852
1,022,009
695,852
1,022,009
Amounts owed by group undertakings
449,974
-
1,482,623
988,077
Other debtors
430,113
377,069
224,286
151,427
Prepayments and accrued income
239,958
303,491
152,566
226,125
6,223,183
4,475,017
4,995,412
5,064,097
Amounts falling due after more than one year:
Deferred tax asset (note 21)
427,931
412,686
-
0
-
0
Total debtors
6,651,114
4,887,703
4,995,412
5,064,097

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
20
-
0
34,649
-
0
34,649
Trade creditors
2,680,798
1,056,260
278,904
310,826
Amounts owed to group undertakings
1,266,795
1,529,836
1,266,795
1,529,836
Corporation tax payable
8,108
-
0
-
0
-
0
Other taxation and social security
88,581
91,350
88,581
91,350
Other creditors
217,956
31,455
217,956
31,455
Accruals and deferred income
673,057
419,316
557,498
307,273
4,935,295
3,162,866
2,409,734
2,305,389

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Other creditors
135,115
119,934
-
0
-
0
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
-
0
36,768
-
0
36,768
Less: future finance charges
-
0
(2,119)
-
0
(2,119)
-
34,649
-
0
34,649

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is three years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
21
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Fixed asset timing differences
710,956
731,948
131,517
54,157
Losses and other deductions
(482,097)
(482,098)
274,443
324,396
Short term timing differences
(4,758)
(4,320)
21,971
34,133
Other deductions
(68,803)
(68,803)
-
-
155,298
176,727
427,931
412,686
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Fixed asset timing differences
710,956
731,948
-
-
Losses and other deductions
(482,097)
(482,098)
-
-
Short term timing differences
(4,758)
(4,320)
-
-
Other deductions
(68,803)
(68,803)
-
-
155,298
176,727
-
-
Group
Company
2024
2024
Movements in the year:
£
£
Liability/(asset) at 1 April 2023
(235,959)
176,727
Credit to profit or loss
(36,674)
(21,429)
Liability/(asset) at 31 March 2024
(272,633)
155,298

The deferred tax asset set out above relates to the utilisation of tax losses against future expected profits of the same period.

 

 

 

 

 

 

RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
219,257
215,520

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

As at the reporting date, amounts payable of £30,539 (2023: £29,100) had not been paid over to the schemes.

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.1p each
1,000,000
1,000,000
1,000
1,000
24
Operating lease commitments

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
278,340
306,311
147,240
143,261
Between two and five years
771,847
1,078,783
273,667
426,584
In over five years
-
130,887
-
-
1,050,187
1,515,981
420,907
569,845

The amount recognised in profit or loss as an expense in relation to operating leases was £306,190 (2023: £337,796).

 

 

 

 

 

 

 

 

RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 33 -
25
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
-
26,719
-
26,719
26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
288,387
420,352
Transactions with related parties
Management charges
2024
2023
£
£
Group and company
Entities with control, joint control or significant influence over the company
319,942
297,634

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group and company
Entities with control, joint control or significant influence over the group
-
262,226
Other related parties
1,266,795
1,267,610

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group and company
Entities with control, joint control or significant influence over the group
449,973
-
RADIO DESIGN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 34 -
27
Ultimate controlling party

The ultimate parent company is TRAC International Limited, a company incorporated in Scotland whose registered office is 37 Albyn Place, Aberdeen, Aberdeen City, Scotland, AB10 1YN. TRAC International Limited is controlled by D H Hawthorn who owns 100% of that company’s issued share capital.

 

The group financial statements of TRAC International Limited are available from 37 Albyn Place, Aberdeen, Aberdeen City, Scotland, AB10 1YN.

28
Cash generated from group operations
2024
2023
£
£
Loss for the year after tax
(754,794)
(2,437,623)
Adjustments for:
Taxation credited
(258,240)
(948,433)
Finance costs
16,783
6,961
Investment income
(8,552)
(1,490)
Gain on disposal of tangible fixed assets
(13,476)
(1,258)
Amortisation and impairment of intangible assets
1,073,603
1,181,705
Depreciation and impairment of tangible fixed assets
460,362
467,023
Other gains and losses
-
(33,083)
Movements in working capital:
Decrease in stocks
777,853
1,377,500
(Increase)/decrease in debtors
(2,074,323)
1,690,686
Increase/(decrease) in creditors
1,814,151
(286,961)
Cash generated from operations
1,033,367
1,015,027
29
Analysis of changes in net funds - group
1 April 2023
Cash flows
Exchange rate movements
31 March 2024
£
£
£
£
Cash at bank and in hand
247,517
288,560
82,862
618,939
Obligations under finance leases
(34,649)
34,649
-
-
212,868
323,209
82,862
618,939
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