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REGISTERED NUMBER: 06170813 (England and Wales)













Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 30 June 2024

for

Reality Enterprise Ltd

Reality Enterprise Ltd (Registered number: 06170813)






Contents of the Financial Statements
for the Year Ended 30 June 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


Reality Enterprise Ltd

Company Information
for the Year Ended 30 June 2024







DIRECTORS: Mrs S K Ali
R Ali





SECRETARY: Mrs S K Ali





REGISTERED OFFICE: 45 Linthorpe Road
Middlesborugh
TS1 5BS





REGISTERED NUMBER: 06170813 (England and Wales)





AUDITORS: Anderson Barrowcliff Limited
Statutory Auditors
Chartered Accountants
3 Kingfisher Court
Bowesfield Park
Stockton on Tees
TS18 3EX

Reality Enterprise Ltd (Registered number: 06170813)

Strategic Report
for the Year Ended 30 June 2024

The directors present their strategic report for the year ended 30 June 2024.

REVIEW OF BUSINESS
The turnover in the year amounted to £12,776,181 (2023: £13,021,923). Gross profit margin for the year of 29.7% (2023: 30.1%) was considered satisfactory. Overall pre-tax loss is £72,200 in 2024 from a profit of £303,748 in 2023. The company continues to expand its operations in the north east of England and commenced trading from its new store in Durham during the year.

The financial position of the company, at the year end, is considered to be satisfactory.

Given the straight forward nature of the business the directors are of the opinion that there are no non-financial key performance indicators necessary for the understanding of the business.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties facing the company relate to the general economic situation and its effect on consumer spending in addition to technological developments and changes.

ON BEHALF OF THE BOARD:





R Ali - Director


21 February 2025

Reality Enterprise Ltd (Registered number: 06170813)

Report of the Directors
for the Year Ended 30 June 2024

The directors present their report with the financial statements of the company for the year ended 30 June 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the sale of second hand games consoles, games, DVD's, laptops and smart phones.

DIVIDENDS
The total distribution of dividends for the year ended 30 June 2024 will be £ 2,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report.

Mrs S K Ali
R Ali

POLITICAL DONATIONS AND EXPENDITURE
No political donations were made by the company during the year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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). 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;
-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.

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 company'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 company's auditors are aware of that information.

Reality Enterprise Ltd (Registered number: 06170813)

Report of the Directors
for the Year Ended 30 June 2024


AUDITORS
The auditors, Anderson Barrowcliff Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





R Ali - Director


21 February 2025

Report of the Independent Auditors to the Members of
Reality Enterprise Ltd

Opinion
We have audited the financial statements of Reality Enterprise Ltd (the 'company') for the year ended 30 June 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 30 June 2024 and of its loss 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 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.

Other information
The directors are responsible for the other information. The other information comprises the information in the 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Reality Enterprise Ltd


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 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, 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 directors' 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 Statement of Directors' Responsibilities set out on page three, 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 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.

Report of the Independent Auditors to the Members of
Reality Enterprise Ltd


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.

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.

Based on our understanding of the industry, we have considered applicable laws and regulations which may be fundamental to the company's ability to operate or to avoid a material penalty, and we considered the extent to which non-compliance might have a material effect on the financial statements. We considered management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate manual journal entries to manipulate financial performance, management bias and any significant one-off or unusual transactions.

We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

Audit procedures performed by the engagement team included:
- Enquiry of management and those charged with governance around actual and potential litigation and claims.
- Enquiry of entity staff 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.
- 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.
- Revenue recognition; agreeing a sample of revenue transactions to gain assurance over the occurrence and
accuracy of revenue and also to ensure revenue has been recognised in the correct period.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Reality Enterprise Ltd


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.




Helen Wilson FCA (Senior Statutory Auditor)
for and on behalf of Anderson Barrowcliff Limited
Statutory Auditors
Chartered Accountants
3 Kingfisher Court
Bowesfield Park
Stockton on Tees
TS18 3EX

24 February 2025

Reality Enterprise Ltd (Registered number: 06170813)

Statement of Comprehensive
Income
for the Year Ended 30 June 2024

2024 2023
Notes £    £   

TURNOVER 12,776,181 13,021,923

Cost of sales 8,976,819 9,098,548
GROSS PROFIT 3,799,362 3,923,375

Administrative expenses 3,871,260 3,617,955
OPERATING (LOSS)/PROFIT 3 (71,898 ) 305,420


Interest payable and similar expenses 4 302 1,672
(LOSS)/PROFIT BEFORE TAXATION (72,200 ) 303,748

Tax on (loss)/profit 5 (11,801 ) 70,000
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(60,399

)

233,748

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(60,399

)

233,748

Reality Enterprise Ltd (Registered number: 06170813)

Balance Sheet
30 June 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 7 86,816 112,494
Tangible assets 8 727,142 899,651
813,958 1,012,145

CURRENT ASSETS
Stocks 9 1,258,827 1,231,738
Debtors 10 894,315 566,285
Cash at bank and in hand 739,172 1,042,908
2,892,314 2,840,931
CREDITORS
Amounts falling due within one year 11 925,211 988,616
NET CURRENT ASSETS 1,967,103 1,852,315
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,781,061

2,864,460

PROVISIONS FOR LIABILITIES 13 98,000 119,000
NET ASSETS 2,683,061 2,745,460

CAPITAL AND RESERVES
Called up share capital 14 100 100
Retained earnings 15 2,682,961 2,745,360
SHAREHOLDERS' FUNDS 2,683,061 2,745,460

The financial statements were approved by the Board of Directors and authorised for issue on 21 February 2025 and were signed on its behalf by:





R Ali - Director


Reality Enterprise Ltd (Registered number: 06170813)

Statement of Changes in Equity
for the Year Ended 30 June 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 July 2022 100 2,580,632 2,580,732

Changes in equity
Dividends - (69,020 ) (69,020 )
Total comprehensive income - 233,748 233,748
Balance at 30 June 2023 100 2,745,360 2,745,460

Changes in equity
Dividends - (2,000 ) (2,000 )
Total comprehensive income - (60,399 ) (60,399 )
Balance at 30 June 2024 100 2,682,961 2,683,061

Reality Enterprise Ltd (Registered number: 06170813)

Cash Flow Statement
for the Year Ended 30 June 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 329,828 498,118
Interest paid (302 ) (1,672 )
Tax paid (27,885 ) (55,442 )
Net cash from operating activities 301,641 441,004

Cash flows from investing activities
Purchase of intangible fixed assets - (10,000 )
Purchase of tangible fixed assets (419,377 ) (207,719 )
Sale of intangible fixed assets - 10,000
Sale of tangible fixed assets 370,488 80,000
Net cash from investing activities (48,889 ) (127,719 )

Cash flows from financing activities
Loan repayments in year - (17,967 )
Capital repayments in year (46,716 ) (49,359 )
Amount introduced by directors - (168,044 )
Amount withdrawn by directors (152,159 ) 166,088
Amount withdrawn by related parties (355,613 ) (202,511 )
Equity dividends paid (2,000 ) (69,020 )
Net cash from financing activities (556,488 ) (340,813 )

Decrease in cash and cash equivalents (303,736 ) (27,528 )
Cash and cash equivalents at beginning of
year

2

1,042,908

1,070,436

Cash and cash equivalents at end of year 2 739,172 1,042,908

Reality Enterprise Ltd (Registered number: 06170813)

Notes to the Cash Flow Statement
for the Year Ended 30 June 2024

1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
(Loss)/profit before taxation (72,200 ) 303,748
Depreciation charges 200,555 183,640
Loss/(profit) on disposal of fixed assets 46,521 (7,799 )
Finance costs 302 1,672
175,178 481,261
Increase in stocks (27,089 ) (37,954 )
Decrease in trade and other debtors 176,316 68,372
Increase/(decrease) in trade and other creditors 5,423 (13,561 )
Cash generated from operations 329,828 498,118

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 June 2024
30.6.24 1.7.23
£    £   
Cash and cash equivalents 739,172 1,042,908
Year ended 30 June 2023
30.6.23 1.7.22
£    £   
Cash and cash equivalents 1,042,908 1,070,436


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.7.23 Cash flow At 30.6.24
£    £    £   
Net cash
Cash at bank and in hand 1,042,908 (303,736 ) 739,172
1,042,908 (303,736 ) 739,172
Debt
Finance leases (46,716 ) 46,716 -
(46,716 ) 46,716 -
Total 996,192 (257,020 ) 739,172

Reality Enterprise Ltd (Registered number: 06170813)

Notes to the Financial Statements
for the Year Ended 30 June 2024

1. ACCOUNTING POLICIES

General information and basis of preparing the financial statements
Reality Enterprise Ltd is a private limited company limited by shares incorporated in England, United Kingdom. The address of the registered office is given in the company information on page 1 of these financial statements. The nature of the company's operations and principal activities are set out in the Report of the Directors on page 3.

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and the Republic of Ireland" (FRS102) and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover includes revenue earned from the sale of goods, this is recognised when the significant risks of ownership have transferred to the buyer.

Goodwill
Goodwill is initially measured at cost. After initial recognition, goodwill is measured at cost less any accumulated amortisation and any accumulated impairment losses.

Goodwill is written off over a period of 10 years which is an estimate of its useful economic life.

Licences
Licences are initially measured at cost. After initial recognition, licences are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Licences are written off over a period of 10 years which is an estimate of their useful economic life.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - over the period of the lease
Plant and machinery - 15% on reducing balance
Motor vehicles - 25% on reducing balance

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.


Reality Enterprise Ltd (Registered number: 06170813)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

1. ACCOUNTING POLICIES - continued
Taxation
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Contributions to defined contribution plans are expensed in the period to which they relate.

Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss in other administrative expenses.

Impairment
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

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 amounts 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 of the revision, if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

Reality Enterprise Ltd (Registered number: 06170813)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

2. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 2,302,910 2,097,997
Social security costs 170,749 127,247
Other pension costs 48,828 46,638
2,522,487 2,271,882

The average number of employees during the year was as follows:
2024 2023

Sales & administration 132 136
Directors 2 2
134 138

2024 2023
£    £   
Directors' remuneration 159,763 28,704

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

3. OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging/(crediting):

2024 2023
£    £   
Depreciation - owned assets 174,877 153,789
Depreciation - assets on hire purchase contracts - 3,900
Loss/(profit) on disposal of fixed assets 46,521 (7,799 )
Goodwill amortisation 16,093 16,093
Licences amortisation 9,585 9,858
Auditors remuneration 9,500 7,500

4. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Interest payable 302 625
HMRC interest/penalties - 1,047
302 1,672

Reality Enterprise Ltd (Registered number: 06170813)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

5. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 10,928 81,000
Over provision of tax in prior periods (1,729 ) -
Total current tax 9,199 81,000

Deferred taxation (21,000 ) (11,000 )
Tax on (loss)/profit (11,801 ) 70,000

Reconciliation of total tax (credit)/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
£    £   
(Loss)/profit before tax (72,200 ) 303,748
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
19.730% (2023 - 20.500%)

(14,245

)

62,268

Effects of:
Expenses not deductible for tax purposes 154 1,015
Depreciation in excess of capital allowances 8,246 18,196
Adjustments to tax charge in respect of previous periods (1,729 ) (479 )
Deferred tax movement at full rate (4,227 ) (11,000 )
Total tax (credit)/charge (11,801 ) 70,000

6. DIVIDENDS
2024 2023
£    £   
Final 2,000 69,020

Reality Enterprise Ltd (Registered number: 06170813)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

7. INTANGIBLE FIXED ASSETS
Goodwill Licences Totals
£    £    £   
COST
At 1 July 2023
and 30 June 2024 160,925 177,750 338,675
AMORTISATION
At 1 July 2023 97,367 128,814 226,181
Amortisation for year 16,093 9,585 25,678
At 30 June 2024 113,460 138,399 251,859
NET BOOK VALUE
At 30 June 2024 47,465 39,351 86,816
At 30 June 2023 63,558 48,936 112,494

Goodwill and licence fees are being written off in equal instalments over their estimated economic lives of 10 years.

8. TANGIBLE FIXED ASSETS
Short Plant and Motor
leasehold machinery vehicles Totals
£    £    £    £   
COST
At 1 July 2023 266,987 1,402,669 223,369 1,893,025
Additions 7,104 54,353 357,920 419,377
Disposals - - (444,945 ) (444,945 )
At 30 June 2024 274,091 1,457,022 136,344 1,867,457
DEPRECIATION
At 1 July 2023 210,817 759,578 22,979 993,374
Charge for year 18,321 104,617 51,939 174,877
Eliminated on disposal - - (27,936 ) (27,936 )
At 30 June 2024 229,138 864,195 46,982 1,140,315
NET BOOK VALUE
At 30 June 2024 44,953 592,827 89,362 727,142
At 30 June 2023 56,170 643,091 200,390 899,651

Reality Enterprise Ltd (Registered number: 06170813)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

8. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 July 2023 93,598
Disposals (93,598 )
At 30 June 2024 -
DEPRECIATION
At 1 July 2023 3,900
Eliminated on disposal (3,900 )
At 30 June 2024 -
NET BOOK VALUE
At 30 June 2024 -
At 30 June 2023 89,698

9. STOCKS
2024 2023
£    £   
Stocks 1,258,827 1,231,738

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 67,948 290,255
Amounts owed by participating interests 558,124 202,511
Other debtors 50,197 3,000
Directors' current accounts 148,733 -
Prepayments 69,313 70,519
894,315 566,285

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 12) - 46,716
Trade creditors 12,097 34,152
Outstanding vouchers 591,399 542,406
Taxation 61,125 79,811
Social security and other taxes 36,186 43,418
VAT 124,128 139,649
Other creditors 327 -
Directors' current accounts 628 4,054
Accrued expenses 99,321 98,410
925,211 988,616

Reality Enterprise Ltd (Registered number: 06170813)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

12. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2024 2023
£    £   
Net obligations repayable:
Within one year - 46,716

13. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred taxation 98,000 119,000

Deferred
tax
£   
Balance at 1 July 2023 119,000
Credit to Statement of Comprehensive Income during year (21,000 )
Balance at 30 June 2024 98,000

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
100 Ordinary shares £1 100 100

15. RESERVES
Retained
earnings
£   

At 1 July 2023 2,745,360
Deficit for the year (60,399 )
Dividends (2,000 )
At 30 June 2024 2,682,961

Retained earnings represents cumulative profits and losses net of dividends and other adjustments.

16. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss as they fall due. The charge for the year was £48,828 (2023: £46,638). There were pension contributions totalling £Nil outstanding at the year end (2023: £9,727).

17. OTHER FINANCIAL COMMITMENTS

The total future minimum payments under non-cancellable operating leases as at 30 June 2024 was £1,786,074 (2023: £1,980,896).

Reality Enterprise Ltd (Registered number: 06170813)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

18. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 30 June 2024 and 30 June 2023:

2024 2023
£    £   
Mrs S K Ali
Balance outstanding at start of year 1,708 2,686
Amounts repaid (1,080 ) (978 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 628 1,708

R Ali
Balance outstanding at start of year 2,346 3,324
Amounts repaid (151,079 ) (978 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year (148,733 ) 2,346

19. RELATED PARTY DISCLOSURES

The total remuneration for key management personnel for the year totalled £179,873 (2023 : £28,704) being remuneration disclosed in note 2 plus related parties.

At the year end the entity was owed £558,124 (2023:£202,511) from a company under common control. No interest has been charged on this balance.