Company registration number 01509592 (England and Wales)
RAPID ELECTRONICS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
RAPID ELECTRONICS LIMITED
COMPANY INFORMATION
Directors
Mr E Parry
Mr A Keenan
(Appointed 12 February 2024)
Company number
01509592
Registered office
Severalls Hall
Severalls Lane
Colchester
CO4 5JS
Auditor
Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
RAPID ELECTRONICS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
RAPID ELECTRONICS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

 

With over 45 years of distribution experience, Rapid has built a strong reputation within the industrial and education sectors for it's customer centric value proposition, focusing on range choice, customer convenience and overall commercial value provision. Rapid has had significant market headwinds to navigate throughout 2024 and we have continued to deliver an operating performance that has provided consistent customer value in all areas, whilst continuing progress in developing future business capabilities, that will enable the business to build on the excellent platform we have established. Our employees and suppliers continue to provide the foundation for our growth whilst we operate in demanding economic and regulatory climates, to keep serving our customers.

 

Rapid focuses on being an innovative and agile business that provides bespoke quantities and solutions to customers in our targeted industry sectors. We will continue to operate with a model that provides both a digital platform interface and a complimentary human interface to ensure all our customer needs are fulfilled.

Going forward we will target increased customer penetration and breadth through effective business model deployment that will always have the customer at the heart of our business focus.

Our range and choice will expand through carefully targeted additions and investment and we will support this through our objective of being the employer of choice for our employees.

Review of the business

The statement of comprehensive income discloses the full results.

 

The results reflect the continuation of challenging market conditions with revenue and profitability impacted, but our flexible operating model, strong cash conversion and a robust statement of financial position are reflective of a healthy business taking steps to maintain performance whilst market conditions have been suboptimal. Our resilience and market knowledge expertise were pivotal in guiding our suppliers and customers through these market conditions. Market confidence continues to be challenging as we focus on our customers, ensuring our value proposition meets or exceeds expectation.

The team at Rapid in 2024 continued to follow the core tenets of delighting our customers and supply partners, working hard to be a great place to work for our employees and delivering operational excellence through our services and digital platforms.

In 2024 turnover decreased by 20.6% compared to the prior year, a reduction of £5m. A proportion of turnover contraction can be attributed to decisions made to migrate away from low margin products both within the EV and Consumer markets. Overall, the business gross margin improved by 3.2% to 31.2% and operational costs reduced by 9.2% highlighting the benefits from strategic decisions taken.

Rapid’s future success is through our employees. The management team maintains a focus on employee engagement through our Great Place to Work and Growth, Performance, Success initiatives as evidenced by an excellent engagement score in the annual employee survey.

There were significant operational investments throughout 2024 increasing leadership level resources to drive towards the group’s strategic goals. These included additional headcount within the leadership and management team, sales and digital marketing resources. System infrastructure was a key part of the transformation with a robust review and simplification of core business processes.

Moving into 2025 Rapid will leverage group product and service solutions for the UK market and this will enhance Rapid as an attractive proposition for our suppliers who hold the Rapid brand and go to market model as a key component of their own brand development and commercial success. Rapid have a growing number of supplier engagements that enable us to provide an expanding choice to our targeted customers in the Industrial and Educational sectors. Our continued pursuit of a significant proportion of the UK customer base will result in profitable growth and expanded brand recognition for our suppliers and provide the platform for additional supplier and brand additions in 2025 and beyond.

Rapid continues to have a strong statement of financial position coupled with good short-term liquidity and is part of the holding company Rapid Electronics Holdings Ltd which as a group was profitable.

RAPID ELECTRONICS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

Risk

 

Potential Impact

 

Mitigations

 

 

 

 

 

General Economic instability

 

 

 

 

General Economic instability or a downturn in a particular market or region can affect customers and their demand for products.

 

Fall in sales due to reduced consumer confidence. Increase in bad debt as customers are unable to trade and meet previous obligations. Inability to meet stock requirements due to supply chain restrictions.

 

Macro economic environment is discussed as part of our Steering Group meetings making it a continuous management focus. Reduction in sales can be mitigated due to balanced customer portfolio across multiple sectors. Mix of cash and credit sales coupled with strong cash position and Group backing for short term loans.

 

 

 

 

 

Reliance on Key Suppliers

 

 

 

 

We work with key strategic partners to support our business and help deliver our products. A failure in key counterparty relationships or services could affect the delivery of certain business activities and trading.

 

Impacting customer satisfaction. Fall in supplies due to supplier difficulties.

 

Key suppliers are subject to additional due diligence and partner engagement and our diverse product range reduces the reliance on a few suppliers.

 

 

 

 

 

Business Disruption

 

 

 

 

Rapid could be exposed to disruption caused by fire or failure of essential IT equipment.

 

Temporary cessation of operations could adversely impact the results.

 

Robust disaster recovery procedures are in place. Insurance level covers business interruption and stock damage whilst alternative premises were sought.

 

 

 

 

 

Fraud

 

 

 

 

The risk that an employee or group of employees could obtain funds or products through deception either directly or with external assistance.

 

Significant financial fraud could deplete the company's assets and affect the financial results.

 

Rapid has robust control procedures in place that are designed to minimise the risk. Segregation of duties are a key component within these controls.

 

 

 

 

 

Foreign Exchange

 

 

 

 

The risk that the fair value of financial instruments or future cash flows will fluctuate because of changes in foreign exchange rates. Our trading in Europe and Asia, and thus exposure to USO and Euro are the key risk areas.

 

Significant fluctuation in USD or Euro exchange rates could adversely impact the results.

 

An element of natural hedging for Euro transactions is undertaken. Significant purchases are hedged in advanced. Transaction values tend to be relatively low and therefore significant exchange rate exposure is normally less than 30 days.

 

RAPID ELECTRONICS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Principal risks and uncertainties (continued)

 

Credit risk

 

 

 

 

The inability of trade receivables to pay exposes Rapid to credit risk.

 

Insufficient funds could result in the company not being able to fund its operations.

 

Third party agents are used to assess credit risk and credit limits are set in accordance to these risk assessments and customer historic payment profile. Orders are held if payment terms are exceeded.

Liquidity risk

 

 

 

 

The risk that Rapid will not have sufficient funds to meet its obligations as they fall due.

 

Insufficient funds could result in the company not being able to fund its operations.

 

Rapid has a strong working capital ratio in conjunction with good Group and Bank relationships that could be used to support any short-term liquidity issues.

Inadequate response to major incidents

 

 

 

 

Major incidents such as those caused by extreme weather, military action, terrorism or disease outbreaks have the potential to impact our operations.

 

Cause business interruption. Inadequate response could cause reputational damage.

 

Our customer and supplier base are mixed, and we are not exposed in any one industry sector or location. The Steering Group continually monitors the macro-economic conditions and a specific crisis council will be convened to respond to any specific incidents.

Key performance indicators

The key performance indicators are discussed in the review of the business section of this report.

On behalf of the board

Mr A Keenan
Director
27 February 2025
RAPID ELECTRONICS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of the wholesale, distributions and retail of electronics components, equipment and tools.

Results and dividends

The results for the year are set out on page 9.

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 E Parry
Mr A Keenan
(Appointed 12 February 2024)
Auditor

The auditor, Ensors Accountants LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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:

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.

Matters of strategic importance

Information is not shown within the Director's Report as it is instead included within the Strategic Report under S414c(11).

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.

RAPID ELECTRONICS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
Going Concern

At 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, a period of at least 12 months from the approval of the financial statements. As part of the assessment, the Directors have prepared detailed profit and loss and cash flow forecasts for the company which take into account their best estimate of the macro-economic environment, and these demonstrate that the company has sufficient cash for the foreseeable future. It is expected that the company will continue to operate as a going concern and as such the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr A Keenan
Director
27 February 2025
RAPID ELECTRONICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RAPID ELECTRONICS LIMITED
- 6 -
Opinion

We have audited the financial statements of Rapid Electronics Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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:

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 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.

Other information

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:

RAPID ELECTRONICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RAPID ELECTRONICS LIMITED (CONTINUED)
- 7 -
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:

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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

 

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection 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.

RAPID ELECTRONICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RAPID ELECTRONICS LIMITED (CONTINUED)
- 8 -

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 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.

Barry Gostling (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP, Statutory Auditor
Chartered Accountants
Connexions
159 Princes Street
Ipswich
IP1 1QJ
28 February 2025
RAPID ELECTRONICS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
19,429,074
24,482,412
Cost of sales
(13,358,590)
(17,628,418)
Gross profit
6,070,484
6,853,994
Administrative expenses
(6,318,914)
(6,965,901)
Operating loss
4
(248,430)
(111,907)
Interest receivable and similar income
7
80,209
87,516
Loss before taxation
(168,221)
(24,391)
Tax on loss
8
29,733
(59,712)
Loss for the financial year
(138,488)
(84,103)

The income statement has been prepared on the basis that all operations are continuing operations.

RAPID ELECTRONICS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
9
293,754
379,309
Tangible assets
10
523,799
590,857
817,553
970,166
Current assets
Stocks
11
5,441,726
6,412,725
Debtors
12
2,328,180
3,504,133
Cash at bank and in hand
2,525,355
1,404,495
10,295,261
11,321,353
Creditors: amounts falling due within one year
13
(3,125,255)
(4,096,284)
Net current assets
7,170,006
7,225,069
Total assets less current liabilities
7,987,559
8,195,235
Provisions for liabilities
Deferred tax liability
14
178,827
248,015
(178,827)
(248,015)
Net assets
7,808,732
7,947,220
Capital and reserves
Called up share capital
15
810,002
810,002
Profit and loss reserves
6,998,730
7,137,218
Total equity
7,808,732
7,947,220

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 27 February 2025 and are signed on its behalf by:
Mr E Parry
Mr A Keenan
Director
Director
Company registration number 01509592 (England and Wales)
RAPID ELECTRONICS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
810,002
7,221,321
8,031,323
Year ended 31 December 2023:
Loss and total comprehensive income
-
(84,103)
(84,103)
Balance at 31 December 2023
810,002
7,137,218
7,947,220
Year ended 31 December 2024:
Loss and total comprehensive income
-
(138,488)
(138,488)
Balance at 31 December 2024
810,002
6,998,730
7,808,732
RAPID ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Rapid Electronics Limited is a private company limited by shares incorporated in England and Wales. The registered office is Severalls Hall, Severalls Lane, Colchester, CO4 5JS.

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, including the provisions of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Rapid Electronics Holdings Limited. These consolidated financial statements are available from Companies House.

1.2
Going concern

At 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, a period of at least 12 months from the approval of the financial statements. As part of the assessment, the Directors have prepared detailed profit and loss and cash flow forecasts for the company which take into account their best estimate of the macro-economic environment, and these demonstrate that the company has sufficient cash for the foreseeable future. It is expected that the company will continue to operate as a going concern and as such the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.true

1.3
Turnover

Turnover represents the invoiced value, net of Value Added Tax, of goods sold provided to customers and is recognised when invoices are raised upon dispatch of goods.

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.

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
3 - 10 years
RAPID ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Over the remaining useful life of the lease
Plant and equipment
Over the useful life of the asset (12-240 months)
Fixtures and fittings
Over the useful life of the asset (12-240 months)

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
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are valued at the lower of cost and net realisable value. Cost of finished goods includes all costs incurred in bringing the product to its present location and condition. Net realisable value is based upon estimated selling price less further costs expected to be incurred to completion and disposal. Provision is made for obsolete and slow-moving items. Cost is computed 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.

RAPID ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.8
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 statement of financial position 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.

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

RAPID ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

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.

1.9
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 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.

RAPID ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
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 income statement, 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
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.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
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.

1.13

Foreign currencies

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.

 

All transaction differences are taken to profit and loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.

RAPID ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Provisions

The Company has recognised provisions for impairment of stocks, impairment of trade debtors, employee bonuses and corporation tax in its financial statements which requires management to make judgements. The judgements, estimates and associated assumptions necessary to calculate these provisions are based on historical experience and other reasonable factors.

Useful lives of property, plant and equipment

The charge in respect of periodic depreciation is derived after determining an estimate of an asset's expected useful life and the expected residual value at the end of its life. The useful lives of the Company's assets are determined by management at the time the asset is acquired and reviewed at least annually for appropriateness. The lives are based on historical experience with similar assets as well as anticipation of future events which may impact their life, such as changes in technology.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdon
18,748,287
23,649,504
Europe
518,357
471,459
Rest of the World
162,430
361,449
19,429,074
24,482,412
2024
2023
£
£
Other revenue
Interest income
80,209
87,516
RAPID ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses
47,172
84,328
Fees payable to the company's auditor for the audit of the company's financial statements
21,500
20,075
Depreciation of owned tangible fixed assets
112,074
127,440
(Profit)/loss on disposal of tangible fixed assets
(368)
42,162
Amortisation of intangible assets
207,328
134,417
Operating lease charges
320,004
320,004
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Office
77
79
Warehouse
35
36
Directors
2
1
Total
114
116

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,486,853
3,442,114
Social security costs
316,321
321,916
Pension costs
217,891
211,309
4,021,065
3,975,339
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
240,944
140,945
Company pension contributions to defined contribution schemes
18,718
8,258
259,662
149,203

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

RAPID ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Directors' remuneration
(Continued)
- 19 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
145,980
119,229
Company pension contributions to defined contribution schemes
11,754
6,165
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
80,209
43,706
Interest receivable from group companies
-
0
43,810
Total income
80,209
87,516
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
45,742
Adjustments in respect of prior periods
39,455
10,155
Total current tax
39,455
55,897
Deferred tax
Origination and reversal of timing differences
(69,188)
3,815
Total tax (credit)/charge
(29,733)
59,712
RAPID ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Taxation
(Continued)
- 20 -

The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(168,221)
(24,391)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
(42,055)
(5,737)
Tax effect of expenses that are not deductible in determining taxable profit
198
6,672
Group relief
27,848
-
0
Under/(over) provided in prior years
39,455
-
0
Deferred tax adjustments
(60,133)
58,777
Other adjustments
4,954
-
0
Taxation (credit)/charge for the year
(29,733)
59,712
9
Intangible fixed assets
Software
£
Cost
At 1 January 2024
1,070,246
Additions
121,773
Disposals
(475,844)
At 31 December 2024
716,175
Amortisation and impairment
At 1 January 2024
690,937
Amortisation charged for the year
207,328
Disposals
(475,844)
At 31 December 2024
422,421
Carrying amount
At 31 December 2024
293,754
At 31 December 2023
379,309
RAPID ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
10
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2024
55,171
2,066,452
57,451
2,179,074
Additions
-
0
57,571
7,002
64,573
Disposals
-
0
(268,001)
-
0
(268,001)
At 31 December 2024
55,171
1,856,022
64,453
1,975,646
Depreciation and impairment
At 1 January 2024
30,099
1,547,443
10,675
1,588,217
Depreciation charged in the year
3,634
99,435
9,005
112,074
Eliminated in respect of disposals
-
0
(248,444)
-
0
(248,444)
At 31 December 2024
33,733
1,398,434
19,680
1,451,847
Carrying amount
At 31 December 2024
21,438
457,588
44,773
523,799
At 31 December 2023
25,072
519,009
46,776
590,857
11
Stocks
2024
2023
£
£
Finished goods and goods for resale
5,441,726
6,412,725
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,933,076
2,137,926
Amounts owed by group undertakings
1,000
904,516
Other debtors
101,625
232,824
Prepayments and accrued income
292,479
228,867
2,328,180
3,504,133
RAPID ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,611,524
1,796,927
Amounts owed to group undertakings
545,330
262,539
Corporation tax
-
0
6,352
Other taxation and social security
266,685
647,828
Other creditors
117,901
372,218
Accruals and deferred income
583,815
1,010,420
3,125,255
4,096,284
14
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
215,259
248,015
Short term timing differences
(36,432)
-
178,827
248,015
2024
Movements in the year:
£
Liability at 1 January 2024
248,015
Credit to profit or loss
(69,188)
Liability at 31 December 2024
178,827
15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
810,002
810,002
810,002
810,002

The company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company.

RAPID ELECTRONICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
16
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
348,462
368,894
Between two and five years
1,330,346
1,372,864
In over five years
293,333
614,575
1,972,141
2,356,333
17
Other financial commitments

The Company is contingently liable for £20,000 (2023: £20,000) in respect of an HM Revenue & Customs duty deferment guarantee given to enable release of imports prior to payment of duty.

18
Related party transactions

During the year, a total of key management personnel compensation of £397,653 (2023: £512,515) was paid.

19
Ultimate controlling party

The ultimate parent company is Conrad Holding SE, a company registered in Germany, which is the parent company of the largest group which will include the company in their consolidated accounts. The registered office of Conrad Holding SE is Klaus Conrad Strasse 1, 92242 Hirschau, Germany.

 

The immediate parent company is Rapid Electronics Holdings Limited, which is the smallest group for which consolidated accounts are prepared including the company. The consolidated accounts of Rapid Electronics Holdings Limited are available to the public and can be obtained from Companies House. The registered office of Rapid Electronics Holdings Limited is Severalls Halls, Severalls Lane, Colchester, Essex, CO4 5JS.

 

There is deemed to be no ultimate controlling party due to the spread of shareholdings in the ultimate parent company.

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