Company registration number 02127940 (England and Wales)
M R RATCLIFFE CONSULTANTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
PAGES FOR FILING WITH REGISTRAR
M R RATCLIFFE CONSULTANTS LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
M R RATCLIFFE CONSULTANTS LIMITED
STATEMENT OF FINANCIAL POSITION
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
1,024,856
967,362
Current assets
Debtors
1,425,047
1,570,809
Cash at bank and in hand
392,835
603,649
1,817,882
2,174,458
Creditors: amounts falling due within one year
(2,108,286)
(2,372,683)
Net current liabilities
(290,404)
(198,225)
Total assets less current liabilities
734,452
769,137
Creditors: amounts falling due after more than one year
(374,373)
(434,142)
Provisions for liabilities
(11,790)
(9,772)
Net assets
348,289
325,223
Capital and reserves
Called up share capital
5
22,250
22,250
Capital redemption reserve
60,000
60,000
Profit and loss reserves
266,039
242,973
Total equity
348,289
325,223
The notes on pages 2 to 7 form part of these financial statements.
In accordance with section 444 of the Companies Act 2006, all of the members of the company have consented to the preparation of abridged financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (SI 2008/409)(b).
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 6 March 2025 and are signed on its behalf by:
Mr M R Ratcliffe
Director
Company registration number 02127940 (England and Wales)
M R RATCLIFFE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
1
Accounting policies
Company information
M R Ratcliffe Consultants Limited is a private company limited by shares incorporated in England and Wales. The registered office is Wolseley House, Oriel Road, Cheltenham, Gloucestershire, England, GL50 1TH.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include the revaluation of freehold properties and to include investment properties at fair value. The principal accounting policies adopted are set out below.
M R RATCLIFFE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 3 -
1.2
Going concern
It is a sad reflection that since COVID 19 the United Kingdom (UK) economy has been somewhat flatlined for a number of years now and this position has seriously affected the transport industry in which the company has specialised for nearly 50 years. The company is well known throughout the UK and it is a fact that we are like a barometer which reflects the state of the economy. Economic growth causes more goods to be transported and therefore a requirement for more vehicles to be insured. When the economy is flatlined or in recession there is clearly less movement of goods and consequently a smaller transportation requirement causing fewer new transport companies to enter the marketplace and hence a lower level of new enquiries.true
The company has many long-standing clients, some of whom are nearing retirement. As a result of the current state of the economy, a number of them are questioning whether it is economically sensible for them to go to the cost of replacing their commercial vehicle.
Additionally, the ability to compete for existing business hardens when a UK insurer decides to become a major player in the industry so that over a period of several years a substantial portion of the transport industry finds its requirements being met by one insurer. Such perceived successful activity can only come about by undercutting market rates and at some point in time the resultant poor claims experience causes the tide to turn and rates to substantially increase. The market suggests that this point has now been reached, which is expected to improve the company's ability to quote for both existing and new business more competitively.
To help combat the threats to the company's generation of turnover, to maintain its profitability and to aid the generation of cash flow, the company has diversified by developing two on-line Quote & Buy programmes affiliated to the transport industry. The first provides goods in transit and liability insurance for the "white van" market, which in turn will allow us to quote for the insured's commercial vehicle insurance. In addition, the company is developing a most competitive Personal Accident insurance scheme for the self-employed, covering not only the transport industry but also taxi drivers, couriers and the media. Whilst the development of these schemes has involved a number of nuances which have taken longer to complete than anticipated, the first of them has gone live recently. The directors continue to look actively for opportunities for further "Quote & Buy" programmes.
The directors continue to be aware of the challenges facing the company in all aspects, including the generation of sufficient working capital to enable it to deliver against its current business plan. A plan for growth, involving the diversification noted above, has been put into place and is being closely monitored to ensure that it is delivering additional income at little or no increase in overhead.
As a result of the above measures to increase income and improve cash flow, the company forecasts a further improvement in profitability and cash generation through trading in the period to June 2026.
In addition to the cash generated through profitable trading, the company relies for working capital funding on a combination of different sources, including the directors and the banks. The directors continue to fund the company as and when required, to the best of their ability, and are in regular contact with the company's bankers to ensure ongoing funding is available from that source in order to help meet the company's working capital needs.
The directors are confident of raising adequate working capital through profitable trading and ongoing external support to enable the company to operate against its business plan for a period of at least 12 months from the date of approval of these financial statements. As a result, the directors believe that the company continues to be a going concern and have prepared the financial statements on that basis.
1.3
Turnover
Turnover represents commissions and fees earned. Income is recognised when commissions are received by the company.
M R RATCLIFFE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 4 -
1.4
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:
Freehold property
2% on cost
Short leasehold
2% on cost
Fixtures and fittings
10% on reducing balance
Computer equipment
10% on reducing balance
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.
Minor replacements, with an individual value of less than £300, are written off in the year that they are incurred. Where information as to the current value of the freehold property is available to the directors, the rate of depreciation is amended to reflect that current value as the net book value.
1.5
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.
1.6
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 income statement 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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.7
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.
M R RATCLIFFE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 5 -
1.8
Retirement benefits
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.
1.9
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.
1.10
Foreign exchange
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
31
33
M R RATCLIFFE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
4
Tangible fixed assets
Total
£
Cost
At 1 July 2023
1,638,771
Additions
34,737
At 30 June 2024
1,673,508
Depreciation and impairment
At 1 July 2023
671,409
Depreciation charged in the year
(22,757)
At 30 June 2024
648,652
Carrying amount
At 30 June 2024
1,024,856
At 30 June 2023
967,362
On 12 September 2024, a professional valuation of the property was undertaken by Bruton Knowles, Chartered Surveyors of Cheltenham. The directors considered the advice in the professional valuation and determined a value of £790,000 to be appropriate at 30 June 2024 and adopted it in these financial statements. In order to reflect this value, the accumulated depreciation provided in earlier years was reduced accordingly.
5
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary M of £1 each
16,000
16,000
16,000
16,000
Ordinary T of £1 each
2,750
2,750
2,750
2,750
Ordinary P of £1 each
3,500
3,500
3,500
3,500
22,250
22,250
22,250
22,250
6
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Roger Downes FCA
Statutory Auditor:
BK Plus Audit Limited
Date of audit report:
6 March 2025
M R RATCLIFFE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
7
Related party transactions
Transactions with related parties
Mr M R Ratcliffe MBE
Director and majority shareholder
The company pays rent on an arms length basis to Mr Ratcliffe in respect of the use of its business premises.
The company has entered into transactions on an arms' length basis with various undertakings with which Mr Ratcliffe is associated. At the year end, minor balances were owed/due to the company to/from these undertakings in the ordinary course of activities.
Included in other debtors is an amount owed by Mr Ratcliffe of £64,470 (2023: £1,695). The loan is unsecured, interest-free and has been repaid in full since the year-end.
M R Ratcliffe Retirement Benefits Scheme (the RBS)
Self administered pension scheme of which both directors are trustees and beneficiaries
A loan was received from the RBS during an earlier year on an arms' length basis. Interest is charged at 1.5%. The loan is secured against some of the shares in the company owned by one of the directors. The loan was due to be repaid by February 2023, in annual instalments commencing in February 2019.
Under the terms of the loan agreement, the company is entitled to request that early repayments are immediately re-lent to the company on the same terms as the initial loan. The company made that request, which was accepted, in respect of the instalments due in February 2019, 2020, 2021, 2022, 2023 and 2024.
The trustees of the RBS have now agreed that the loan period can be extended to February 2028 and documentation is being prepared to put this formally into place.