Company registration number 04416179 (England and Wales)
RIF WORLDWIDE PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
RIF WORLDWIDE PLC
COMPANY INFORMATION
Directors
Mr S A Sully
Mr S J Fox
Mr M J Gilbert
Mr W H Gibson
Mrs E Benson
Mr D J Bacon
Secretary
Mr S A Sully
Company number
04416179
Registered office
2 Lake End Court
Taplow Road
Taplow
Maidenhead
Berkshire
SL6 0JQ
Auditor
Stiles Accountants Limited, Statutory Auditor
2 Lake End Court
Taplow Road
Taplow
Maidenhead
Berkshire
SL6 0JQ
RIF WORLDWIDE PLC
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 9
Statement of income and retained earnings
10
Balance sheet
11
Statement of cash flows
13
Notes to the financial statements
14 - 26
RIF WORLDWIDE PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The directors present the strategic report for the year ended 30 September 2024.
Review of the Business
The trade in the year has seen the company's turnover decrease to £32.9m (2023: £40.8m), a decrease of 19%. As the UK and countries around the world continue to be impacted economically by the COVID-19 pandemic, the war in Ukraine and conflict in the Far East, existing and potential customers have continued to experience unfavourable economic conditions. The company has however continued to successfully navigate these conditions with the strong service it provides to customers while freight is a necessity for any business selling goods. The company continues to attract new customers and has a strong customer retention rate.
Gross profit has decreased to £7.24m (2023: £8.17m) while gross profit as a percentage of turnover has increased to 22% (2023: 20%) as freight rates have returned to levels similar to those prior to the COVID-19 pandemic. Whilst the company continues to face challenges from competitors in respect of its margins, its fully integrated ERP system continues to play a key role in the company's growth over the years.
The staff retention rate increased to a high level of 0.92 (2023: 0.62) demonstrating the employees maintain job satisfaction. The directors feel that retaining staff and creating a positive culture throughout the company has been a key factor in growth.
The directors are satisfied with the positive performance of the company and feel it has the capability to grow in the coming years, in particular as the economic climate improves.
Principal risks and uncertainties
The principal risks and uncertainties facing the company relate to global factors such as the weak global economy, increased inflation rates, the war in Ukraine, continued conflict in the Far East, the cost of living crisis in the UK, liquidity risk and credit risk. The directors take steps to mitigate these risks as outlined below:
Cost of living crisis and global factors
As the UK has exited the COVID-19 pandemic, the UK economy has significantly weakened with consumers experiencing higher cost of living due to increased inflation. This in turn means that there is a risk that our customers will have a reduced need for freight and logistical services as stock may take more time to sell.
Global factors including a weak global economy, underpinned by the impact of the pandemic, as well as the war in Ukraine and conflict in the Far East have increased fuel, oil and gas prices all of which are impacting operating costs and have further contributed to consumers experiencing higher costs of living.
The company has been able to navigate these challenging conditions with the strong service it provides to its customers while the company has the financial headroom to navigate a reduction in turnover.
Inflationary and liquidity risk
Inflation in the UK has reduced in recent times however given the increase in taxes there is the potential for inflation to increase again while globally, inflation remains high, again underpinned by the impact of the pandemic. This in turn has contributed to increased wage and supply chain costs and is large contributing factor with regards to the cost of living crisis in the UK.
In order to reduce inflationary rates, interest rates have risen which increases the cost of borrowing albeit this is less of a concern to the company given it does not hold any interest bearing debt. Increased interest rates do however negatively impact our customers and economic growth generally.
The directors feel the business is well placed to deal with these risks due to its strong financial position while the business continues to invest in training of staff and young people starting their career in the industry.
The company has no borrowings and maintains strong liquidity levels, with those strong liquidity levels predicted to remain. Management are confident that the inflationary and liquidity risk to the business is low given its strong financial position.
RIF WORLDWIDE PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Credit risk
As mentioned the cash position and cash flow of the company are strong while the company has no interest bearing loans, however the unfavourable global economic conditions and the cost of living crisis bring increased credit risk as there is the potential that customers might default.
The company has a strong focus on recovery of debt aided by terms which allow the company to hold stock until debts are paid, and the need for customers to ensure their supply chains continue to operate. Although there were some bad debts in recent times they were very small and do not impact cash flow or profitability in a material way.
Future developments
Investment in the company's infrastructure will continue to be made to enable the company to grow organically, which is a continuation of the company's policy since trade commenced. The company retains the financial strength to deal with the principle risks and uncertainties identified above will continue to invest in its operational capability. The focus does however remain on organic growth within new and developing markets as well as new and existing routes and services, targeting the business to have a diverse portfolio of clients, services and channels.
The company will continue to support in its fellow subsidiaries which continue to attract new business the company previously would have been unable to tender for. RIF Europe B.V. in particular continues to perform well, underpinned by providing overseas services to existing customers of the UK subsidiaries. The subsidiaries continue to aid the turnover of the company by referring its local customers who have international or logistic needs. This is expected to continue in the coming years to further expand the business.
The company's financial strength has meant that within the newly formed group structure, a subsidiary in Australia was acquired during the prior year end to further expand the reach of the group as a whole around the globe.
Statement of Directors' Duties Under Section 172
The board of directors recognises that the success of the Company and Group is based on strong relationships with stakeholders; be they customers, employees, suppliers, government bodies or the wider public. As such, all decisions are made with these stakeholders in mind.
Close relationships with customers are integral to reputation and business stability. Both the directors and senior staff are in regular contact with customers to ensure that our service adapts with their ongoing requirements. This assists in building and retaining relationships and delivering the high quality service required.
The staff are key in delivering these quality services and we appreciate that they are important in succeeding as a business. We therefore ensure that the communication channels between operational staff, managers and the company directors are always open. Investment in staff and their training needs is always a priority, to ensure that staff are equipped with the right skills to fulfil their potential.
We are committed to regular pay reviews for staff and are keen for employees to build their careers within the Company and Group. We recognise that investment in staff is key to employee retention and we are committed to providing a friendly, harmonious environment where staff are rewarded in various ways.
Interaction with suppliers takes place on a regular basis ensuring that we maintain strong relationships to future proof our ability to provide an excellent service to our customers. This is carried out by performing certain checks such as credit scores and regular meetings and contact with suppliers to ensure the business' needs are being met.
The directors and employees of the Company and Group are aware of the need to look after the environment, and where possible we reduce our impact on the environment. The promotion of recycling within our established offices is a key initiative that has been introduced.
RIF WORLDWIDE PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Compliance with HM Revenue and Customs and other governing bodies is fundamental to our operations in terms of duty and VAT. Due to the nature of the sector, a high level of transparency is maintained to ensure that the Company and Group is compliant with the various regulations with particular attention to customs declarations.
The directors will continue to work with all stakeholders to maintain the reputation that the Company and Group has built and deliver the high standards required by customers.
Mrs E Benson
Director
14 February 2025
RIF WORLDWIDE PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company continued to be that of freight forwarding.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S A Sully
Mr S J Fox
Mr M J Gilbert
Mr W H Gibson
Mrs E Benson
Mr D J Bacon
Auditor
The auditor, Stiles Accountants Limited, Statutory Auditor, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
The following report has been prepared and summarises the GHG emissions for the reporting year 1 October 2023 to 30 September 2024. The report is in line with the disclosure requirements of the UK Governments Energy and Carbon reporting framework.
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
111,559
110,991
RIF WORLDWIDE PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
114.62
114.62
- Fuel consumed for owned transport
-
-
114.62
114.62
Scope 2 - indirect emissions
- Electricity purchased
42.50
42.28
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
113.73
115.22
Total gross emissions
270.85
272.12
Intensity ratio
Tonnes of CO2e per employee
4.59
4.38
Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting. Further details of the methodologies used are as follows:
Scope 1 - Refrigerants based on F-gas/asset Register supplied by AC maintenance engineers
Scope 2 - Purchased electricity calculated on the kWh usage reports supplied by the energy supply vendors
Scope 3 - Commercial travel by car calculated against mileage supplied from expense claims, staff commute calculated by daily round trip mileage supplied by employees and business travel by air calculated by actual trips and the distance between airport to airport
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.
Measures taken to improve energy efficiency
The Company is committed to year-year improvements in our energy efficiency. As such we have embarked on the following programmes and efficiency measures over the coming years:-
Electric vehicle charging points at sites for colleagues and visitors to use.
Implemented car share scheme for employees.
Implemented cycle to work scheme.
Commercial visit to customers' premises with better daily call plans and route planning with final mile optimisation.
Gained ISO 14001 accreditation.
Successful implementation of Environmental Quality and Management System.
Waste management: new recycling at all sites.
Energy and carbon reduction through:-
Light Installations with motion sensors and LED across all sites.
All equipment powered down out of working hours.
All plant equipment moved to electric vehicles.
RIF WORLDWIDE PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
Statement of directors' responsibilities
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 company and of the profit or loss of the company 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the company'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 principal risks and uncertainties and future developments.
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 company’s auditor 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 company’s auditor is aware of that information.
On behalf of the board
Mrs E Benson
Director
14 February 2025
RIF WORLDWIDE PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RIF WORLDWIDE PLC
- 7 -
Opinion
We have audited the financial statements of RIF Worldwide PLC (the 'company') for the year ended 30 September 2024 which comprise the statement of income and retained earnings, the balance sheet, the 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:
give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its 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.
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 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 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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
RIF WORLDWIDE PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RIF WORLDWIDE PLC
- 8 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of management override of controls) and determined that the principal risks related to fraudulent transactions which may lead to an overstatement of profits, such as manipulation of accounting estimates including depreciation, revenue recognition and provisions.
Based on our understanding of the company and industry, we identified principal risks of non-compliance with laws and regulations and we considered those laws and regulations which have a direct impact on the preparation of the financial statements such as the Companies Act 2006, FRS 102, health and safety laws, freight forwarding regulations, employment laws, contractual laws, General Data Protection Regulations (GDPR) and UK tax legislation.
RIF WORLDWIDE PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RIF WORLDWIDE PLC
- 9 -
In order to mitigate the risks detailed above in respect of fraud and non-compliance with laws and regulations, the following procedures were undertaken by the audit team:
Enquiry of management, those charged with governance and around actual and potential litigation and claims.
Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Reviewing the sales and related costs against supporting documentation to ensure revenue recognition is in line with the company's accounting policy (and FRS 102) and associated costs are also recognised in line with the revenue for each job. In particular, prepaid and accrued costs were material to the audit and were reviewed in detail against supporting documentation.
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
Challenging and validating the reasonableness and judgement with particular focus on provisions affecting sales recognition of freight movements.
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.
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.
Mr Daniel Robins (Senior Statutory Auditor)
For and on behalf of Stiles Accountants Limited, Statutory Auditor
14 February 2025
Chartered Certified Accountants
2 Lake End Court
Taplow Road
Taplow
Maidenhead
Berkshire
SL6 0JQ
RIF WORLDWIDE PLC
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
32,904,220
40,835,092
Cost of sales
(25,666,995)
(32,670,003)
Gross profit
7,237,225
8,165,089
Administrative expenses
(5,098,097)
(5,259,428)
Other operating income
3,773
370,464
Operating profit
4
2,142,901
3,276,125
Interest receivable and similar income
8
118,063
172,776
Interest payable and similar expenses
9
(6,940)
Profit before taxation
2,254,024
3,448,901
Tax on profit
10
(531,646)
(771,643)
Profit for the financial year
1,722,378
2,677,258
Retained earnings brought forward
2,602,327
8,286,505
Dividends
11
(8,361,436)
Retained earnings carried forward
4,324,705
2,602,327
The profit and loss account has been prepared on the basis that all operations are continuing operations.
RIF WORLDWIDE PLC
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
45,413
52,773
Tangible assets
13
19,335
50,620
64,748
103,393
Current assets
Debtors
14
8,498,986
4,177,874
Cash at bank and in hand
2,658,684
3,733,123
11,157,670
7,910,997
Creditors: amounts falling due within one year
15
(6,200,911)
(4,971,577)
Net current assets
4,956,759
2,939,420
Total assets less current liabilities
5,021,507
3,042,813
Provisions for liabilities
Provisions
16
630,785
369,026
Deferred tax liability
17
15,517
20,960
(646,302)
(389,986)
Net assets
4,375,205
2,652,827
Capital and reserves
Called up share capital
20
50,500
50,500
Profit and loss reserves
21
4,324,705
2,602,327
Total equity
4,375,205
2,652,827
The financial statements were approved by the board of directors and authorised for issue on 14 February 2025 and are signed on its behalf by:
Mrs E Benson
Director
Company registration number 04416179 (England and Wales)
RIF WORLDWIDE PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
50,500
8,286,505
8,337,005
Year ended 30 September 2023:
Profit and total comprehensive income
-
2,677,258
2,677,258
Dividends
11
-
(8,361,436)
(8,361,436)
Balance at 30 September 2023
50,500
2,602,327
2,652,827
Year ended 30 September 2024:
Profit and total comprehensive income
-
1,722,378
1,722,378
Balance at 30 September 2024
50,500
4,324,705
4,375,205
RIF WORLDWIDE PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
25
(534,894)
6,263,553
Interest paid
(6,940)
Income taxes paid
(638,778)
(902,861)
Net cash (outflow)/inflow from operating activities
(1,180,612)
5,360,692
Investing activities
Purchase of tangible fixed assets
(11,890)
(7,791)
Proceeds from disposal of subsidiaries
54
Interest received
118,063
172,776
Net cash generated from investing activities
106,173
165,039
Financing activities
Repayment of borrowings
(4,897,770)
Dividends paid
(8,361,436)
Net cash used in financing activities
-
(13,259,206)
Net decrease in cash and cash equivalents
(1,074,439)
(7,733,475)
Cash and cash equivalents at beginning of year
3,733,123
11,466,598
Cash and cash equivalents at end of year
2,658,684
3,733,123
RIF WORLDWIDE PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
1
Accounting policies
Company information
RIF Worldwide PLC is a public company limited by shares incorporated in England and Wales. The registered office is 2 Lake End Court, Taplow Road, Taplow, Maidenhead, Berkshire, SL6 0JQ.
The company's trading address and head office is Worldwide House, Brooklands Close, Sunbury-on-Thames, Middlesex, TW16 7EQ.
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 Financial Statements contain information about RIF Worldwide PLC as an individual company and do not contain consolidated financial information as the parent company of the group. Consolidated financial statements have been prepared separately and are publicly available on Companies House.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for 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 and settlement discounts.
Revenue from the provision of freight forwarding services provided are generally recognised upon dispatch from the UK in respect of export services, on delivery to the customer in respect of domestic services, and upon customs clearance or delivery to customers in respect of import services.
1.4
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:
Software
10% per annum on a straight line basis
RIF WORLDWIDE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
10% per annum on a straight line basis
Plant and equipment
33% per annum on a straight line basis
Fixtures and fittings
33% per annum on a straight line basis
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 credited or charged to profit or loss.
1.6
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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset , with 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
RIF WORLDWIDE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
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 company 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.
Basic financial liabilities
Basic financial liabilities, including creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Financial liabilities classified as payable within one year are not amortised.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company 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 company.
1.9
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
RIF WORLDWIDE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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 when the company has 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.
1.10
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
RIF WORLDWIDE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.15
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
The directors do not consider these estimates and assumptions to have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities contained within the financial statements.
3
Turnover and other revenue
The turnover and profit before taxation are attributable to the one principal activity of the company.
2024
2023
£
£
Other revenue
Interest income
118,063
172,776
Grants received
3,773
16,421
The geographical analysis of turnover has not been disclosed on the basis the directors consider it would be prejudicial to the business.
The grants received relate to government grants in respect of computer software and equipment and government apprenticeship incentives.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(505,370)
(434,864)
Government grants
(3,773)
(16,421)
Depreciation of owned tangible fixed assets
43,175
67,324
Amortisation of intangible assets
7,360
7,360
Operating lease charges
214,838
288,288
RIF WORLDWIDE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
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 company
23,000
22,000
For other services
Taxation compliance services
3,154
2,511
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Management
8
8
Sales and administration
55
66
Total
63
74
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,779,814
3,142,932
Social security costs
285,451
366,992
Pension costs
61,229
63,545
3,126,494
3,573,469
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
572,335
Company pension contributions to defined contribution schemes
-
5,273
577,608
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2023 - 2).
RIF WORLDWIDE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
7
Directors' remuneration
(Continued)
- 20 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
n/a
277,770
Company pension contributions to defined contribution schemes
n/a
1,865
As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
118,063
172,776
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
118,063
172,776
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
6,940
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
537,089
784,216
Deferred tax
Origination and reversal of timing differences
(5,443)
(12,573)
Total tax charge
531,646
771,643
RIF WORLDWIDE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
10
Taxation
(Continued)
- 21 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
2,254,024
3,448,901
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
563,506
862,225
Tax effect of expenses that are not deductible in determining taxable profit
13,215
13,927
Effect of change in corporation tax rate
(106,605)
Group relief
(47,360)
Depreciation in excess of capital allowances
7,728
14,669
Deferred tax movement
(5,443)
(12,573)
Taxation charge for the year
531,646
771,643
On 1 April 2023, the main corporation tax rate increased from 19% to 25%. A tapered rate has also been introduced for profits above £50,000, so that only businesses with profits of £250,000 or greater will be taxed at the full 25% rate.
Deferred tax at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements. The deferred taxation charge analysed above of £5,443 (2023: £12,573) is in relation to the movement of accelerated capital allowances. Further detail of these timing differences are analysed within note 17.
11
Dividends
2024
2023
£
£
Interim paid
8,361,436
RIF WORLDWIDE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
12
Intangible fixed assets
Software
£
Cost
At 1 October 2023 and 30 September 2024
73,600
Amortisation and impairment
At 1 October 2023
20,827
Amortisation charged for the year
7,360
At 30 September 2024
28,187
Carrying amount
At 30 September 2024
45,413
At 30 September 2023
52,773
13
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 October 2023
42,942
177,967
117,835
338,744
Additions
10,902
988
11,890
Disposals
(12,316)
(3,262)
(15,578)
At 30 September 2024
42,942
176,553
115,561
335,056
Depreciation and impairment
At 1 October 2023
38,289
152,579
97,256
288,124
Depreciation charged in the year
4,294
19,638
19,243
43,175
Eliminated in respect of disposals
(12,316)
(3,262)
(15,578)
At 30 September 2024
42,583
159,901
113,237
315,721
Carrying amount
At 30 September 2024
359
16,652
2,324
19,335
At 30 September 2023
4,653
25,388
20,579
50,620
RIF WORLDWIDE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
6,420,880
3,611,952
Amounts owed by group undertakings
96,588
678
Other debtors
129,643
61,828
Prepayments and accrued income
1,851,875
503,416
8,498,986
4,177,874
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Trade creditors
4,828,207
3,049,886
Corporation tax
227,089
328,778
Other taxation and social security
76,687
74,289
Government grants
18
17,910
21,212
Other creditors
9,713
Accruals and deferred income
1,041,305
1,497,412
6,200,911
4,971,577
16
Provisions for liabilities
2024
2023
£
£
Dilapidations
330,785
301,065
Settlement claim
300,000
67,961
630,785
369,026
Movements on provisions:
Dilapidations
Settlement claim
Total
£
£
£
At 1 October 2023
301,065
67,961
369,026
Additional provisions in the year
29,720
300,000
329,720
Reversal of provision
-
(67,961)
(67,961)
At 30 September 2024
330,785
300,000
630,785
RIF WORLDWIDE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
16
Provisions for liabilities
(Continued)
- 24 -
The above dilapidations provision relates to the accrued amounts expected to be paid in respect of dilapidations at the end of the property lease terms in 2024.
The brought forward legal claim was settled during the year. This provision includes the settlement amount as agreed with the customer as well as associated legal fees. The settlement is to be paid via instalments during 2025.
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
15,517
20,960
2024
Movements in the year:
£
Liability at 1 October 2023
20,960
Credit to profit or loss
(5,443)
Liability at 30 September 2024
15,517
18
Government grants
2024
2023
£
£
Arising from government grants
17,910
21,212
The grants detailed above are in respect of investment made in the company's software and IT equipment as detailed in notes 12 and 13. These grants have been deferred and are being released in line with the software amortisation period.
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
61,229
63,545
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
RIF WORLDWIDE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,500
50,500
50,500
50,500
In 2023, the Ordinary 'A' shares and Ordinary 'B' shares were re-designated to become 1 class of 'Ordinary' shares. The Ordinary shares are irredeemable and have full rights in the company with regards voting, dividends and capital distribution.
21
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
2,602,327
8,286,505
Profit for the year
1,722,378
2,677,258
Dividends declared and paid in the year
-
(8,361,436)
At the end of the year
4,324,705
2,602,327
The profit and loss reserve represents cumulative profits or losses, net of dividends paid and other adjustments.
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
124,955
268,759
Between two and five years
263,437
155,361
388,392
424,120
23
Ultimate controlling party
The company's ultimate parent undertaking and controlling party was RIF Group Holdings Limited, a company incorporated in the UK. RIF Group Holdings Limited is the smallest and largest group undertaking which the company is a member of and prepares group financial statements. Copies of its financial statements are available on public record at Companies House and from Worldwide House, Brooklands Close, Sunbury-on-Thames, RW16 7DX.
RIF WORLDWIDE PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
24
Related party transactions
The company has taken advantage of the exemption granted under FRS 102.33.1A not to disclose related party transactions with fellow subsidiaries that are 100% owned by its parent RIF Group Holdings Ltd.
During the year RIF Worldwide PLC invoiced its fellow subsidiary RIF Logistics AU Pty Ltd, a private limited company incorporated and trading under the laws of Australia and not owned 100% within the group, £105,780 (2023: £137,061) in respect of recharged expenses and services provided. The company also incurred costs in relation to services provided by RIF Logistics AU Pty Ltd totaling £56,236 (2023: £148,941).
At the year end the following balances were outstanding between the two companies:
Trade debtors due from RIF Logistics AU Pty Ltd of £6,298 (2023: £65,104).
Trade creditors due to RIF Logistics AU Pty Ltd of £274 (2023: £61,384).
25
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit after taxation
1,722,378
2,677,258
Adjustments for:
Taxation charged
531,646
771,643
Finance costs
6,940
Investment income
(118,063)
(172,776)
Amortisation and impairment of intangible assets
7,360
7,360
Depreciation and impairment of tangible fixed assets
43,175
67,324
Increase in provisions
261,759
97,682
Movements in working capital:
(Increase)/decrease in debtors
(4,321,112)
6,734,334
Increase/(decrease) in creditors
1,334,325
(3,902,851)
Decrease in deferred income
(3,302)
(16,421)
Cash (absorbed by)/generated from operations
(534,894)
6,263,553
26
Analysis of changes in net funds
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
3,733,123
(1,074,439)
2,658,684
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