REGISTERED NUMBER: 12939666 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 April 2024 |
for |
RJ Lifts Group Limited |
REGISTERED NUMBER: 12939666 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 April 2024 |
for |
RJ Lifts Group Limited |
RJ Lifts Group Limited (Registered number: 12939666) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 April 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Profit and Loss Account | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
RJ Lifts Group Limited |
Company Information |
for the Year Ended 30 April 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
Ebenezer House |
Ryecroft |
Newcastle under Lyme |
Staffordshire |
ST5 2BE |
RJ Lifts Group Limited (Registered number: 12939666) |
Group Strategic Report |
for the Year Ended 30 April 2024 |
The directors present their strategic report of the company and the group for the year ended 30 April 2024. |
REVIEW OF BUSINESS |
As at the balance sheet date of 30th April 2024, the group had net assets of £420k which decreased from £1.6m in 2023. |
The group continues to grow from strength to strength with turnover increasing from £23,8m in 2023 to £29.15m in 2024, which is an increase of 22.5%. |
The directors monitor the performance of the group through monthly management accounts together with the monitoring of bank balances and the ability to meet future liabilities. |
Key performance indicators are gross profit, debtor days, creditor days, operating profit and EBITDA. |
2024 | 2023 |
- Gross profit margin % | 27.20% | 28.11% |
- Debtor days | 72 days | 77 days |
- Creditor days | 52 days | 49 days |
- Operating profit margin % | 6.09% | 5.22% |
- EBITDA £ | 2,087,406 | 1,853,404 |
The directors recognise the need to continue investing in staff, motor vehicles, internal systems and controls. The directors believe that this continued investment in staff and systems will significantly improve the group's performance and profitability. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors have identified the key risks faced by the group to be market risk, financial risk, credit risk and exchange rate risk. |
The group has continued good relationships with customers, suppliers, bank facility providers, and its loyal and stable workforce. |
Those factors considered, the directors feel that they are able to continue to minimise any risk and uncertainties to the group moving forward. |
The directors are constantly monitoring both the quality and price of the products it acquires and the range of goods and services it supplies, to minimise the market risk. |
The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. |
The group's policy throughout the year has been to monitor and manage its bank funds in the context of its trading activity and avoid incurring unnecessary facility interest, whilst also funding the repayment of hire purchase obligations and other funding obligations. |
The principal credit risk arises from its trade debtors. In order to manage credit risk, the directors set limits for its customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conjunction with debt ageing and collection history. During the year, credit risk exposure was spread over a range of customers. |
Looking to the future, the directors want to maintain appropriate investment levels in the group to maintain and secure the group's position in the market. The directors closely monitor the market place to ensure that the group can deliver the best products and services at the best prices. |
RJ Lifts Group Limited (Registered number: 12939666) |
Group Strategic Report |
for the Year Ended 30 April 2024 |
FUTURE DEVELOPMENTS |
The directors are keen to expand the core business, through organic sustainable growth, supply chain partnerships, and through strategic acquisition opportunities. |
The business has a continued re-investment programme, ensuring staff are well trained and the most up to date equipment is used to enable the group to compete in increasingly competitive markets, which is constantly reviewed in line with business opportunities. |
ON BEHALF OF THE BOARD: |
RJ Lifts Group Limited (Registered number: 12939666) |
Report of the Directors |
for the Year Ended 30 April 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 April 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of lift servicing, installations and repairs. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 April 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
Future developments and principal risks and uncertainties are disclosed in the strategic report. |
The company has chosen in accordance with section 414(c) of the Companies Act 2006 (Strategic and Directors Report) Regulations 2013 to set out in the company's Strategic Report information required by schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
RJ Lifts Group Limited (Registered number: 12939666) |
Report of the Directors |
for the Year Ended 30 April 2024 |
AUDITORS |
The auditors, Thompson Wright Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
RJ Lifts Group Limited |
Opinion |
We have audited the financial statements of RJ Lifts Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the Consolidated Profit and Loss Account, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 April 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the 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 the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
RJ Lifts Group Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
RJ Lifts Group Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the Senior Statutory Auditor ensured that the audit team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the lift industry; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental, other industry specific accreditations and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Report of the Independent Auditors to the Members of |
RJ Lifts Group Limited |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
Ebenezer House |
Ryecroft |
Newcastle under Lyme |
Staffordshire |
ST5 2BE |
RJ Lifts Group Limited (Registered number: 12939666) |
Consolidated Profit and Loss Account |
for the Year Ended 30 April 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 29,142,458 | 23,795,087 |
Cost of sales | 21,217,125 | 17,105,748 |
GROSS PROFIT | 7,925,333 | 6,689,339 |
Administrative expenses | 6,150,760 | 5,447,259 |
OPERATING PROFIT | 5 | 1,774,573 | 1,242,080 |
Interest receivable and similar income | - | 1 |
1,774,573 | 1,242,081 |
Interest payable and similar expenses | 6 | 33,534 | 795 |
PROFIT BEFORE TAXATION | 1,741,039 | 1,241,286 |
Tax on profit | 7 | 434,462 | 393,446 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,306,577 | 847,029 |
Non-controlling interests | - | 811 |
1,306,577 | 847,840 |
RJ Lifts Group Limited (Registered number: 12939666) |
Consolidated Other Comprehensive Income |
for the Year Ended 30 April 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,306,577 | 847,840 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 1,306,577 | 847,840 |
Total comprehensive income attributable to: |
Owners of the parent | 1,306,577 | 847,029 |
Non-controlling interests | - | 811 |
1,306,577 | 847,840 |
RJ Lifts Group Limited (Registered number: 12939666) |
Consolidated Balance Sheet |
30 April 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 572,488 | 1,079,287 |
CURRENT ASSETS |
Stocks | 10 | 343,612 | 118,623 |
Debtors | 11 | 6,172,575 | 5,532,518 |
Cash at bank | 2,558,646 | 2,277,446 |
9,074,833 | 7,928,587 |
CREDITORS |
Amounts falling due within one year | 12 | 9,083,699 | 6,874,000 |
NET CURRENT (LIABILITIES)/ASSETS | (8,866 | ) | 1,054,587 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 563,622 | 2,133,874 |
CREDITORS |
Amounts falling due after more than one year | 13 | - | (245,181 | ) |
PROVISIONS FOR LIABILITIES | 14 | (138,737 | ) | (265,157 | ) |
NET ASSETS | 424,885 | 1,623,536 |
CAPITAL AND RESERVES |
Called up share capital | 15 | 100 | 100 |
Retained earnings | 16 | 424,785 | 1,623,436 |
SHAREHOLDERS' FUNDS | 424,885 | 1,623,536 |
The financial statements were approved by the Board of Directors and authorised for issue on 28 January 2025 and were signed on its behalf by: |
Mr Gareth Williams - Director |
RJ Lifts Group Limited (Registered number: 12939666) |
Company Balance Sheet |
30 April 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 14 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Retained earnings | 16 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,306,577 | 1,619,326 |
The financial statements were approved by the Board of Directors and authorised for issue on |
RJ Lifts Group Limited (Registered number: 12939666) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 April 2024 |
Called up |
share | Retained | Non-controlling | Total |
capital | earnings | Total | interests | equity |
£ | £ | £ | £ | £ |
Balance at 1 May 2022 | 100 | 1,017,923 | 1,018,023 | (152,266 | ) | 865,757 |
Changes in equity |
Transfer of non-controlling |
interest | - | (241,516 | ) | (241,516 | ) | 241,516 | - |
Dividends | - | - | - | (90,061 | ) | (90,061 | ) |
Total comprehensive income | - | 847,029 | 847,029 | 811 | 847,840 |
Balance at 30 April 2023 | 100 | 1,623,436 | 1,623,536 | - | 1,623,536 |
Changes in equity |
Total comprehensive income | - | 1,306,577 | 1,306,577 | - | 1,306,577 |
Contributions to Trust | - | (2,505,228 | ) | (2,505,228 | ) | - | (2,505,228 | ) |
Balance at 30 April 2024 | 100 | 424,785 | 424,885 | - | 424,885 |
RJ Lifts Group Limited (Registered number: 12939666) |
Company Statement of Changes in Equity |
for the Year Ended 30 April 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 May 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 April 2023 |
Changes in equity |
Total comprehensive income | - |
Contributions to Trust | - | (2,505,228 | ) | (2,505,228 | ) |
Balance at 30 April 2024 |
RJ Lifts Group Limited (Registered number: 12939666) |
Consolidated Cash Flow Statement |
for the Year Ended 30 April 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,543,729 | 2,106,460 |
Interest paid | (33,533 | ) | (795 | ) |
Tax paid | 797 | (303,450 | ) |
Net cash from operating activities | 2,510,993 | 1,802,215 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (217,292 | ) | (332,689 | ) |
Sale of tangible fixed assets | 492,727 | 45,650 |
Interest received | - | 1 |
Net cash from investing activities | 275,435 | (287,038 | ) |
Cash flows from financing activities |
Contributions to trust | (2,505,228 | ) | - |
Loan repayments in the year | - | (1,375,000 | ) |
Dividends paid to minority interest | - | (90,061 | ) |
Net cash from financing activities | (2,505,228 | ) | (1,465,061 | ) |
Increase in cash and cash equivalents | 281,200 | 50,116 |
Cash and cash equivalents at beginning of year | 2 | 2,277,446 | 2,227,330 |
Cash and cash equivalents at end of year | 2 | 2,558,646 | 2,277,446 |
RJ Lifts Group Limited (Registered number: 12939666) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 April 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 1,741,039 | 1,241,286 |
Depreciation charges | 272,098 | 282,952 |
(Profit)/loss on disposal of fixed assets | (40,735 | ) | 4,048 |
Impairment of intangible assets | - | 324,323 |
Finance costs | 33,534 | 795 |
Finance income | - | (1 | ) |
2,005,936 | 1,853,403 |
Increase in stocks | (224,989 | ) | (45,199 | ) |
Increase in trade and other debtors | (640,057 | ) | (1,725,341 | ) |
Increase in trade and other creditors | 1,402,839 | 2,023,597 |
Cash generated from operations | 2,543,729 | 2,106,460 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 April 2024 |
30.4.24 | 1.5.23 |
£ | £ |
Cash and cash equivalents | 2,558,646 | 2,277,446 |
Year ended 30 April 2023 |
30.4.23 | 1.5.22 |
£ | £ |
Cash and cash equivalents | 2,277,446 | 2,227,330 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.5.23 | Cash flow | At 30.4.24 |
£ | £ | £ |
Net cash |
Cash at bank | 2,277,446 | 281,200 | 2,558,646 |
2,277,446 | 281,200 | 2,558,646 |
Total | 2,277,446 | 281,200 | 2,558,646 |
RJ Lifts Group Limited (Registered number: 12939666) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 April 2024 |
1. | STATUTORY INFORMATION |
RJ Lifts Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going Concern |
On 20 September 2022, the shares in the company were acquired by an employee ownership trust (EOT) for the benefit of the employees of the group. The trust borrowed monies to facilitate the acquisition, being bank loans and loan notes to the vendor. |
The bank loans and loan notes are cross guaranteed by the group, see note (18 and 19), via a debenture. During the accounting period and following the period end, it became evident to both the bank lender and the directors of the group that the lending facilities were not sustainable, therefore a renegotiation was entered into with both the loan note holder and the bank to give directors a reasonable expectation that the group has adequate resources to continue for the foreseeable future. |
Whilst the loan notes have been restructured, together with the bank facility, the bank and the loan note provider have given their support to the group to ensure they will not withdraw their facilities within 12 months of the date that the financial statements are prepared. |
Given the above circumstances, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future, being the 12 month period from the date of these accounts being approved, therefore the financial statements have been prepared on a going concern basis. |
Basis of consolidation |
The consolidated financial statements present the results of the Company and its own subsidiary ("the Group") as if they form a single entity. |
Subsidiary is consolidated from the date of their acquisition, being the date on which the Group obtains control and continue to be consolidated until the date that such control ceases. |
Subsidiary is included in the consolidated financial statements on the acquisition basis whilst associates are included using the equity method. |
The group accounts consolidate the accounts of the group and all its subsidiaries at 30 April on an acquisition basis. All companies have coterminous year ends. All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
RJ Lifts Group Limited (Registered number: 12939666) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
The critical judgments that the directors have made in the process of applying the group's accounting policies and key sources of estimation uncertainty that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below. |
Key judgements |
Assessing indicators of impairment |
In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments to fixed assets identified during the current financial year. There has been an impairment of the investment and associated goodwill during the current financial year. |
Key sources of estimation uncertainty |
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. |
Recoverability of trade debtors |
The group establishes a provision for trade debtors that are estimated not to be recoverable. When assessing recoverability the directors consider factors such as the aging of the trade debtors, past experience of recoverability and the credit profile of individual or groups of customers. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue is recognised as the company becomes entitled to consideration for the goods and services supplied. |
Profit is recognised on contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract. |
Turnover is attributable to the principal activity of the company which is carried out entirely within the United Kingdom. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a business in 2022, was being amortised evenly over its estimated useful life of ten years. |
During the year the directors have realised an impairment to the carrying value of goodwill, such that it is fully impaired at the balance sheet date. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
The group depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of tangible assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
RJ Lifts Group Limited (Registered number: 12939666) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other debtors, and cash and bank balances are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other creditors and loans from fellow group companies, 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 receipts discounted at a market rate of interest. 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. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as creditors due after more than one year. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
RJ Lifts Group Limited (Registered number: 12939666) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Breakdowns/Maintenance | 9,676,772 | 8,473,000 |
Major Works | 19,465,686 | 15,322,087 |
29,142,458 | 23,795,087 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 10,661,332 | 8,619,299 |
Social security costs | 1,223,132 | 1,019,809 |
Other pension costs | 311,100 | 166,820 |
12,195,564 | 9,805,928 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 7 | 8 |
Administration | 54 | 51 |
Engineers | 157 | 151 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 470,950 | 445,741 |
Directors' pension contributions to money purchase schemes | 130,596 | 8,091 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 100,355 | 127,005 |
Pension contributions to money purchase schemes | 84,400 | 1,350 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 119,329 | 125,079 |
Other operating leases | 137,495 | 115,639 |
Depreciation - owned assets | 272,099 | 282,952 |
(Profit)/loss on disposal of fixed assets | (40,735 | ) | 4,048 |
Auditors' remuneration | 15,000 | 15,000 |
Foreign exchange differences | 18,434 | 16,605 |
RJ Lifts Group Limited (Registered number: 12939666) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest | - | 795 |
Other interest payable | 33,534 | - |
33,534 | 795 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 561,679 | 308,080 |
Prior year under/overprovision | (797 | ) | - |
Total current tax | 560,882 | 308,080 |
Deferred tax | (126,420 | ) | 85,366 |
Tax on profit | 434,462 | 393,446 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 1,741,039 | 1,241,286 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2023 - 19 %) |
330,797 |
235,844 |
Effects of: |
Expenses not deductible for tax purposes | - | 3,281 |
Capital allowances in excess of depreciation | (30,341 | ) | - |
Depreciation in excess of capital allowances | - | 82,889 |
Miscellaneous timing differences | (797 | ) | - |
Other tax differences (change in tax rate) | 150,352 | 7,794 |
Capital allowances (change in tax rate) | (15,549 | ) | 63,638 |
Total tax charge | 434,462 | 393,446 |
8. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements. |
RJ Lifts Group Limited (Registered number: 12939666) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 May 2023 | 71,540 | 52,718 | 2,003,359 | 2,127,617 |
Additions | 10,145 | 12,537 | 194,610 | 217,292 |
Disposals | - | - | (559,226 | ) | (559,226 | ) |
At 30 April 2024 | 81,685 | 65,255 | 1,638,743 | 1,785,683 |
DEPRECIATION |
At 1 May 2023 | 37,392 | 19,602 | 991,336 | 1,048,330 |
Charge for year | 6,061 | 5,745 | 260,293 | 272,099 |
Eliminated on disposal | - | - | (107,234 | ) | (107,234 | ) |
At 30 April 2024 | 43,453 | 25,347 | 1,144,395 | 1,213,195 |
NET BOOK VALUE |
At 30 April 2024 | 38,232 | 39,908 | 494,348 | 572,488 |
At 30 April 2023 | 34,148 | 33,116 | 1,012,023 | 1,079,287 |
Company |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 May 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
10. | STOCKS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Stocks | 343,612 | 118,623 |
RJ Lifts Group Limited (Registered number: 12939666) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
11. | DEBTORS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 5,778,903 | 5,048,884 |
Other debtors | - | 100 |
Prepayments | 393,672 | 238,353 |
6,172,575 | 5,287,337 |
Amounts falling due after more than one year: |
Other debtors | - | 245,181 |
Aggregate amounts | 6,172,575 | 5,532,518 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade creditors | 3,021,894 | 2,281,833 |
Amounts owed to group undertakings | - | - |
Tax | 869,759 | 308,080 |
Social security and other taxes | 1,048,368 | 284,646 |
VAT | 1,482,931 | 682,327 | 1,482,931 | 682,327 |
Other creditors | 71,875 | 167,393 |
Accruals and deferred income | 2,588,872 | 3,149,721 |
9,083,699 | 6,874,000 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Accruals and deferred income | - | 245,181 |
14. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 138,737 | 265,157 |
Group |
Deferred |
tax |
£ |
Balance at 1 May 2023 | 265,157 |
Accelerated capital allowances | (126,420 | ) |
Balance at 30 April 2024 | 138,737 |
RJ Lifts Group Limited (Registered number: 12939666) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
14. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1 May 2023 |
Provided during year | ( |
) |
Balance at 30 April 2024 |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
16. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 May 2023 | 1,623,436 |
Profit for the year | 1,306,577 |
Contributions to Trust | (2,505,228 | ) |
At 30 April 2024 | 424,785 |
Company |
Retained |
earnings |
£ |
At 1 May 2023 |
Profit for the year |
Contributions to Trust | (2,505,228 | ) |
At 30 April 2024 |
17. | NON-CONTROLLING INTERESTS |
The non controlling interest represented a 0.073% equity shareholding in Lift Monitoring Systems Limited. On 20th September 2022, RJ Lift Group Limited Employee Ownership Trust became the 100% equity shareholder. |
18. | OTHER FINANCIAL COMMITMENTS |
The group is party to cross guarantee between the ultimate controlling party and its loan note holder, being Mr R Skelson. At the year end, the groups cross guarantee to the loan note holder amounted to £2,250,000 (2023 - £2,250,000). |
The group is party to a cross guarantee with its bankers in respect to loans made to the ultimate controlling party. At the year end, the group's bank lending cross guarantee amounted to £7,850,000 (2023 - £8,550,000). |
RJ Lifts Group Limited (Registered number: 12939666) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 April 2024 |
19. | RELATED PARTY DISCLOSURES |
On 20 September 2022 100% of the share capital in RJ Lifts Group Ltd was acquired by RJ Lifts Trustees Ltd. The consideration was for cash and loan notes. The loan notes are payable by RJ Lifts Trustees Ltd to the seller. Bank loans were taken out by RJ Lifts Trustees Ltd in order to finance the consideration paid. |
These bank loans are secured via a cross guarantee over RJ Lifts Trustees Ltd, RJ Lift Group Ltd and Lift Monitoring Systems Ltd. During the year loan repayments of £1,700,000 (2023 - £1,020,000) and interest payments of £805,228 (2023 - 363,978) have been paid. |
During the year, the company traded with Omni Lift Services Limited, which is partly owned by Mr Richard Skelson. In the year, RJ Lifts Group Limited purchased £395,140 (2023 - £139,546) of goods and services from the related party. The company sold £1,326 (2023 - £1,201) of goods and services to the related party. At the year end, RJ Lifts Group Limited owed £36,552 (2023 - £nil) to Omni Lift Services Limited, which is included within creditors due within one year. |
Entities with control, joint control or significant influence over the entity |
The group is party to a cross guarantee the ultimate controlling party and its loan note holder, being Mr R Skelson. At the year end, the group is cross guaranteed to the loan note holder amounted to £2,250,000 (2023 - £2,250,000). |
During the financial year the company purchased services of £474,167 (2023 - £194,529) from Omni Lift Services Ltd which is a company part owned by Mr R Skelson, being the director of Lift Monitoring Systems Limited. |
20. | ULTIMATE CONTROLLING PARTY |
RJ Lifts Group Limited Employee-Ownership Trust is considered to be the ultimate controlling party of the group. |