Company registration number 01427566 (England and Wales)
ROTAMEAD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
ROTAMEAD LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
Independent auditor's report
3 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 18
ROTAMEAD LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -
The directors present the strategic report and financial statements for the year ended 31 July 2024.
The principal activity of the company continues to be the sale and hire of scaffolding and allied equipment.
Fair review of the business
The 2024 results remained strong and profits solid despite turnover being down on 2023.
The business is sound and maintains a loyal customer base with the company continually looking to improve its services, products and processes to further support its customers. The directors believe that the mid-term prospects for the company are very good. The company is a long standing member of the National Access & Scaffolding Confederation (NASC), who are the recognised industry body for quality,safety and technical standards by the Health and Safety Executive. The company continues to have Silver status for the Fleet Operators Recognition Scheme (FORS), which recognises excellent health and safety for transport management.
Principal risks and uncertainties
The Company's market is England and Wales and therefore the performance of the UK economy continues to be a dominant risk factor for the performance of the Company. The company directors remain alert to the threats to our markets and continue to monitor developments closely.
The company buys nationally and internationally, so is exposed to price risks which could result from exchange rate movements and potential supply issues due to international relations. The company monitors all of these risks on a continuous basis.
The company does not use hedging or other complex financial instruments.
The company has a close relationship with its major suppliers which allows it to receive sufficient notice of any increases in its input prices to either resource suppliers or to pass these increases onto the customer base through changes in selling price. The directors do not consider that the company has a significant price risk.
The company has a diverse customer base with no customer representing more than 10% of turnover. The company operates a tight credit control procedure including setting and enforcing credit limits through the use of credit checking agencies. The directors do not consider there to be a significant credit risk.
The company is profitable and cash generative with significant net current assets and as a result it has no difficulty meeting its obligations. The directors do not consider that the company has a significant liquidity risk.
Development and performance
The company continues to strive for operational improvements as a method of mitigating supplier price pressure and maintaining competitiveness. The company is well placed to achieve its target turnover in the forthcoming year.
Key performance indicators
The company monitors its performance throughout the year using the following key financial indicators:
- Customer account profitability.
- Gross profit margin
- Monitoring key customers accounts and debtor days
- Creditor days
Non financial key performance indicators which are monitored on a regular basis are:
- Quality control of products
- Customer satisfaction rates
B.G Norfolk
Director
15 November 2024
ROTAMEAD LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 July 2024.
Results and dividends
The results for the year are set out on page 7.
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:
B.G Norfolk
R.F Jones
M.J Anderson
G B Norfolk
Auditor
Chartwells are deemed to be re-appointed in accordance with an elective resolution made under section 386 of the Companies Act 1985 which continues in force under the Companies Act 2006.
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 Medium-sized Companies to be contained in the directors' report. It has done so in respect of the business review, future developments and principal risks.
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
B.G Norfolk
Director
15 November 2024
ROTAMEAD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROTAMEAD LIMITED
- 3 -
Opinion
We have audited the financial statements of Rotamead Limited (the 'company') for the year ended 31 July 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 31 July 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.
ROTAMEAD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROTAMEAD LIMITED (CONTINUED)
- 4 -
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.
ROTAMEAD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROTAMEAD LIMITED (CONTINUED)
- 5 -
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 designed 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 irregularity including fraud is detailed below.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management and via inspection of the company’s regulatory and legal correspondence.
We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; data protection legislation; anti-bribery and corruption legislation.
International Auditing Standards (UK) limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements.
In relation to fraud, we performed the following specific procedures in addition to those already noted:
Challenging assumptions made by management in its significant accounting estimates in particular: bad debts.
Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;
Ensuring that testing undertaken on both the performance statement, and the Balance Sheet includes a number of items selected on a random basis;
Looking for unexpected entries in revenue accounts and testing testing journals during the year and the post balance sheet period.
These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.
ROTAMEAD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROTAMEAD LIMITED (CONTINUED)
- 6 -
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with International Auditing Standards UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.
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.
Nicolena Lyon
Senior Statutory Auditor
For and on behalf of Chartwells
15 November 2024
Chartered Accountants
Statutory Auditor
North Benfleet
Wickford
Essex
SS12 9JR
ROTAMEAD LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JULY 2024
- 7 -
2024
2023
Notes
£
£
Turnover
2
20,808,224
25,804,501
Cost of sales
(17,290,891)
(23,065,768)
Gross profit
3,517,333
2,738,733
Administrative expenses
(1,364,020)
(1,364,395)
Profit on sale of fixed assets
3
734,199
Operating profit
4
2,153,313
2,108,537
Interest receivable and similar income
275,176
98,479
Profit before taxation
2,428,489
2,207,016
Tax on profit
8
(609,091)
(425,756)
Profit for the financial year
1,819,398
1,781,260
Retained earnings brought forward
26,316,791
24,535,531
Retained earnings carried forward
28,136,189
26,316,791
ROTAMEAD LIMITED
BALANCE SHEET
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
4,114,125
3,994,900
Current assets
Stocks
10
7,311,611
11,980,263
Debtors
11
5,680,899
5,465,367
Cash at bank and in hand
14,627,720
9,005,480
27,620,230
26,451,110
Creditors: amounts falling due within one year
12
(3,359,989)
(3,920,848)
Net current assets
24,260,241
22,530,262
Total assets less current liabilities
28,374,366
26,525,162
Provisions for liabilities
Deferred tax liability
13
238,077
208,271
(238,077)
(208,271)
Net assets
28,136,289
26,316,891
Capital and reserves
Called up share capital
15
100
100
Profit and loss reserves
28,136,189
26,316,791
Total equity
28,136,289
26,316,891
The financial statements were approved by the board of directors and authorised for issue on 15 November 2024 and are signed on its behalf by:
B.G Norfolk
R.F Jones
Director
Director
Company registration number 01427566 (England and Wales)
ROTAMEAD LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
17
5,989,000
(1,645,111)
Income taxes paid
(391,085)
(291,059)
Net cash inflow/(outflow) from operating activities
5,597,915
(1,936,170)
Investing activities
Purchase of tangible fixed assets
(250,851)
(2,196,822)
Proceeds on disposal of tangible fixed assets
5,292,570
Interest received
275,176
98,479
Net cash generated from investing activities
24,325
3,194,227
Net increase in cash and cash equivalents
5,622,240
1,258,057
Cash and cash equivalents at beginning of year
9,005,480
7,747,423
Cash and cash equivalents at end of year
14,627,720
9,005,480
ROTAMEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 10 -
1
Accounting policies
Company information
Rotamead Limited is a company limited by shares incorporated in England and Wales. The registered office is Essex Works Hawk Lane Battlesbridge Essex.
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.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have no material concerns that the company does not have 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.
In assessing the foreseeable future the directors have considered a period of at least twelve months from the date when these financial statements are authorised for issue.
1.3
Turnover
Turnover is the total amount receivable by the company for sale and hire of scaffolding equipment excluding VAT and trade discounts. Turnover is recognised in the financial statements once goods have been delivered. Hire of equipment is charged and recognised on a weekly basis.
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 buildings
0.5% straight line
Plant and machinery
10% reducing balance
Fixtures, fittings & equipment
10% reducing balance
Motor vehicles
25% reducing balance
Freehold land is not depreciated.
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.
1.5
Stocks
Stocks are stated at the lower of cost and the estimated selling price. Stock cost is equal to the purchase price paid for the item. Stock is considered to have been sold on a first in first out basis.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
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.
ROTAMEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 11 -
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the 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 unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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.
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.
Basic financial liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
ROTAMEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 12 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
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 or loss 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.
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 or loss, 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.
1.9
Employee benefits
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
ROTAMEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 13 -
1.11
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
Turnover
An analysis of the company's turnover which all arises in the UK is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of scaffolding and ancillary equipment
14,387,444
19,665,900
Hire of scaffolding and ancilliary equipment
6,420,780
6,138,601
20,808,224
25,804,501
3
Exceptional item
2024
2023
£
£
Profit on sale of freehold propery
-
(734,199)
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
131,626
142,571
Profit on disposal of tangible fixed assets
-
(36,872)
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor.
£
£
For audit services
Audit of the financial statements of the company
12,300
10,000
ROTAMEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 14 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
4
4
Direct staff
14
13
Support staff
1
2
Total
19
19
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,545,026
1,504,989
Social security costs
180,603
204,062
Pension costs
42,875
44,832
1,768,504
1,753,883
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
748,248
748,248
Company pension contributions to defined contribution schemes
24,709
26,447
772,957
774,695
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
289,847
289,847
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
579,285
387,147
ROTAMEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
8
Taxation
2024
2023
£
£
(Continued)
- 15 -
Deferred tax
Origination and reversal of timing differences
29,806
38,609
Total tax charge
609,091
425,756
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
2,428,489
2,207,016
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.00%)
607,122
463,473
Tax effect of expenses that are not deductible in determining taxable profit
1,969
1,661
Gains not taxable
(7,011)
Permanent capital allowances in excess of depreciation
(32,367)
Taxation charge for the year
609,091
425,756
9
Tangible fixed assets
Freehold buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 August 2023
3,087,983
699,470
182,158
782,214
4,751,825
Additions
95,082
155,769
250,851
At 31 July 2024
3,087,983
794,552
182,158
937,983
5,002,676
Depreciation
At 1 August 2023
68,310
264,628
99,615
324,372
756,925
Depreciation charged in the year
6,831
38,138
8,254
78,403
131,626
At 31 July 2024
75,141
302,766
107,869
402,775
888,551
Carrying amount
At 31 July 2024
3,012,842
491,786
74,289
535,208
4,114,125
At 31 July 2023
3,019,673
434,842
82,543
457,842
3,994,900
ROTAMEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 16 -
10
Stocks
2024
2023
£
£
Finished goods and goods for resale
7,311,611
11,980,263
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
5,680,899
5,465,367
12
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,937,457
2,829,773
Corporation tax
473,349
285,149
Other taxation and social security
508,399
342,142
Other creditors
418,784
418,784
Accruals and deferred income
22,000
45,000
3,359,989
3,920,848
Many suppliers of raw materials include a reservation of title clause in their terms and conditions, thus included within trade creditors are balances which are secured on stock. The maximum amount of trade creditors that could be secured in this way is £1,916,310 (2023: £,2,647,073).
In the ordinary course of its business the company has ad hoc short term hire agreements.
13
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated Capital Allowances
238,077
208,271
ROTAMEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
13
Deferred taxation
(Continued)
- 17 -
2024
Movements in the year:
£
Liability at 1 August 2023
208,271
Charge to profit or loss
29,806
Liability at 31 July 2024
238,077
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
42,875
44,832
The company contributes to defined contribution pension schemes for all qualifying employees
15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
16
Ultimate controlling party
The ultimate controlling party through the year is Mr B Norfolk by virtue of his shareholding. (2023 - Mr B Norfolk)
ROTAMEAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 18 -
17
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
1,819,398
1,781,260
Adjustments for:
Taxation charged
609,091
425,756
Investment income
(275,176)
(98,479)
Gain on disposal of tangible fixed assets
-
(36,872)
Depreciation of tangible fixed assets
131,626
142,571
Movements in working capital:
Decrease/(increase) in stocks
4,668,652
(3,166,415)
Increase in debtors
(215,532)
(93,218)
Decrease in creditors
(749,059)
(599,714)
Cash generated from/(absorbed by) operations
5,989,000
(1,645,111)
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