Company registration number 05516434 (England and Wales)
RED ROSE HOLDINGS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
PAGES FOR FILING WITH REGISTRAR
RED ROSE HOLDINGS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 13
RED ROSE HOLDINGS LIMITED
BALANCE SHEET
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
5
419,443
18,777
Investment property
6
5,441,550
5,429,855
Investments
7
1,014,918
5,860,993
6,463,550
Current assets
Debtors
8
1,855,137
1,778,853
Cash at bank and in hand
2,212,738
1,121,565
4,067,875
2,900,418
Creditors: amounts falling due within one year
9
(1,506,852)
(1,183,219)
Net current assets
2,561,023
1,717,199
Total assets less current liabilities
8,422,016
8,180,749
Creditors: amounts falling due after more than one year
10
(42,574)
(62,529)
Provisions for liabilities
11
(243,780)
(83,942)
Net assets
8,135,662
8,034,278
Capital and reserves
Called up share capital
13
1,000
1,000
Revaluation reserve
14
762,993
774,182
Profit and loss reserves
7,371,669
7,259,096
Total equity
8,135,662
8,034,278
RED ROSE HOLDINGS LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
For the financial year ended 31 July 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 10 April 2025 and are signed on its behalf by:
Mr M J Holden
Director
Company registration number 05516434 (England and Wales)
RED ROSE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
1
Accounting policies
Company information
Red Rose Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is Riverside House, Riverside Industrial Estate, Branch Road, Lower Darwen, Lancashire, BB3 0PR.
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 investment properties and unlisted investments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The company is reliant upon the support of its bankers and connected companies. true
The financial statements have been prepared on a going concern basis on the assumption that this finance will continue to be made available to the company.
The directors have no reason to believe that such financial support will not continue for the foreseeable future.
1.3
Turnover
Turnover represents the net amounts, excluding vat, invoiced during the year by the company in respect of rents receivable from tenants and management charges received from connected undertakings.
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:
Land and buildings Leasehold
5% straight line
Plant and machinery
33% reducing balance
Fixtures, fittings & equipment
33% reducing balance
Motor vehicles
25% 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.
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
RED ROSE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 4 -
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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
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.
1.8
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 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.
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.
RED ROSE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 5 -
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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
RED ROSE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 6 -
1.11
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.
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Valuation of Investment Properties
The investment properties are stated at the directors' estimate of open market value as at 31 July 2023. Calculation of this valuation requires judgements to be made, which include consideration of both the local property market and the wider economic environment.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
3
3
4
Fair value gains on financial assets
2024
2023
£
£
Fair value gains
Change in value of financial assets held at fair value through profit or loss
248,647
RED ROSE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 7 -
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 August 2023
31,395
31,395
Additions
235,882
175,884
411,766
At 31 July 2024
235,882
207,279
443,161
Depreciation and impairment
At 1 August 2023
12,618
12,618
Depreciation charged in the year
733
10,367
11,100
At 31 July 2024
733
22,985
23,718
Carrying amount
At 31 July 2024
235,149
184,294
419,443
At 31 July 2023
18,777
18,777
RED ROSE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
6
Investment property
2024
£
Fair value
At 1 August 2023
5,429,855
Additions
239,587
Disposals
(227,892)
At 31 July 2024
5,441,550
The company's premises at The Hub, Buckshaw Village, Chorley have been valued at a market value of £2,300,000 at the balance sheet date by a director of the company. The director's valuation was based on an external valuation undertaken in March 2018 by a third party professional valuer. This valuation has been incorporated into the accounts at a previous balance sheet date and is considered to be a reasonable estimate of the property's fair value at the current balance sheet date.
The company's premises at Barrow Brook Business Park, Clitheroe have been valued at a market value of £1,200,000 at the balance sheet date by a director of the company. The director's valuation was based on an external valuation undertaken in December 2018 by a third party professional valuer. This valuation has been incorporated into the accounts at the balance sheet date and is considered to be a reasonable estimate of the property's fair value.
The remaining investment properties have been included in the balance sheet at their cost values. The directors are of the opinion that this represents a reasonable estimate of their current market values.
The historic cost of the investment properties is £4,473,345 (2023: £4,461,650).
RED ROSE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
7
Fixed asset investments
2024
2023
£
£
Unlisted investments
1,014,918
Movements in fixed asset investments
Unlisted investments
£
Cost or valuation
At 1 August 2023
1,014,918
Disposals
(1,014,918)
At 31 July 2024
-
Carrying amount
At 31 July 2024
-
At 31 July 2023
1,014,918
8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Corporation tax recoverable
359,005
350,498
Other debtors
1,496,132
1,428,355
1,855,137
1,778,853
Included in Other debtors are loans made by the company to its directors. The total amount advanced during the year was £130,314. The total amount repaid during the year was £nil and no interest has been charged. The closing balance of the directors' loans outstanding was £1,288,522 (2023: £1,125,433).
Also included in Other debtors in the previous year was a loan to Red Rose Drylining Limited, a connected company, of £233,349.
The above loan was unsecured and interest-free.
RED ROSE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 10 -
9
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
19,955
19,128
Trade creditors
61,578
11,889
Corporation tax
213,245
Other taxation and social security
6,928
Other creditors
1,425,319
932,029
1,506,852
1,183,219
Included within Other creditors are amounts due to connected companies of £923,394 (2023; £923,394). The amounts are unsecured and interest free.
10
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
42,574
62,529
The company's bank loan is secured by:
i) A debenture, giving the company's bankers a fixed and floating charge on the assets of the company;
ii) First legal charges over certain of the company's investment properties; and
iii) A debenture from the company's subsidiary undertaking, Red Rose Drylining Limited, supported by an inter company cross guarantee for all amounts due to the company's bankers.
Any inter-company indebtedness owed to Red Rose Drylining Limited is secured by a fixed and floating charge over the company's assets. The charge was created on 15 July 2016.
A deed of priority has been entered into between the company, Red Rose Drylining Limited and the company's bankers whereby any bank borrowings have priority over the inter-company loan creditor in all respects including repayment.
RED ROSE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
11
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
12
243,780
83,942
243,780
83,942
12
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
38,568
-
Revaluations
205,212
83,942
243,780
83,942
2024
Movements in the year:
£
Liability at 1 August 2023
83,942
Charge to profit or loss
159,838
Liability at 31 July 2024
243,780
The deferred tax liability set out above is expected to reverse at the point in time when the company disposes of its investment properties at The Hub, Buckshaw Villlage and Pendle Court, Barrow Brook Business Park, Clitheroe.
RED ROSE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
13
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
900
900
900
900
'A' Ordinary shares of £1 each
100
100
100
100
1,000
1,000
1,000
1,000
The holders of the 'A' ordinary shares have the right to attend and vote at a general meeting of the company.
The profits available for distributions in any accounting period shall be applied as the directors of the company determine and may be distributed amongst the holders of the ordinary and 'A' ordinary shares in any proportion the directors determine.
In the event of the company winding up or going into liquidation, both classes of share rank pari passu in respect of their right to a share in the surplus assets of the company.
14
Revaluation reserve
2024
2023
£
£
At the beginning of the year
774,182
587,696
Other movements
(11,189)
186,486
At the end of the year
762,993
774,182
15
Financial commitments, guarantees and contingent liabilities
The company has given a cross company guarantee in respect of an overdraft facility provided by the company's bankers to Red Rose Drylining Limited, a former subsidiary undertaking. At 31 July 2024 the bank overdraft of the company amounted to £nil (2023: £nil).
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, as follows:
2024
2023
£
£
2,038,337
2,066,343
During the year to 31 July 2018 the company signed a ground rent lease for a term of 125 years, deemed to have commenced on 1 January 2018, for and at Barrow Brook Business Park, Clitheroe. The annual ground rent is £17,000.
The annual rent is to be subject to review on the tenth anniversary of the commencement of the lease.
RED ROSE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 13 -
17
Directors' transactions
During the year the company acquired an investment property from its directors, Michael Anderson and Mark Holden, for a consideration of £141,141.
18
Ultimate controlling party
The company is a subsidiary of RR Holdings (Lower Darwen) Limited, a company registered in England and Wales.
RR Holdings (Lower Darwen) Limited is under the control of the directors, Mr M J Anderson and Mr M J Holden.
2024-07-312023-08-01falsefalsefalse10 April 2025CCH SoftwareCCH Accounts Production 2025.100No description of principal activityMr M J AndersonMr M J HoldenMr M T EdgarMr M J Holden055164342023-08-012024-07-31055164342024-07-31055164342023-07-3105516434core:LandBuildings2024-07-3105516434core:OtherPropertyPlantEquipment2024-07-3105516434core:LandBuildings2023-07-3105516434core:OtherPropertyPlantEquipment2023-07-3105516434core:CurrentFinancialInstrumentscore:WithinOneYear2024-07-3105516434core:CurrentFinancialInstrumentscore:WithinOneYear2023-07-3105516434core:Non-currentFinancialInstrumentscore:AfterOneYear2024-07-3105516434core:Non-currentFinancialInstrumentscore:AfterOneYear2023-07-3105516434core:CurrentFinancialInstruments2024-07-3105516434core:CurrentFinancialInstruments2023-07-3105516434core:ShareCapital2024-07-3105516434core:ShareCapital2023-07-3105516434core:RevaluationReserve2024-07-3105516434core:RevaluationReserve2023-07-3105516434core:RetainedEarningsAccumulatedLosses2024-07-3105516434core:RetainedEarningsAccumulatedLosses2023-07-3105516434core:HedgingReserve2022-07-3105516434core:CapitalRedemptionReserve2022-07-3105516434core:ShareCapitalOrdinaryShareClass12024-07-3105516434core:ShareCapitalOrdinaryShareClass12023-07-3105516434core:ShareCapitalOrdinaryShareClass22024-07-3105516434core:ShareCapitalOrdinaryShareClass22023-07-3105516434core:ShareCapitalOrdinaryShares2024-07-3105516434core:ShareCapitalOrdinaryShares2023-07-3105516434core:RevaluationReserve2023-07-3105516434core:RevaluationReserve2022-07-3105516434bus:CompanySecretaryDirector12023-08-012024-07-3105516434core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-08-012024-07-3105516434core:PlantMachinery2023-08-012024-07-3105516434core:FurnitureFittings2023-08-012024-07-3105516434core:MotorVehicles2023-08-012024-07-31055164342022-08-012023-07-3105516434core:LandBuildings2023-07-3105516434core:OtherPropertyPlantEquipment2023-07-31055164342023-07-3105516434core:LandBuildings2023-08-012024-07-3105516434core:OtherPropertyPlantEquipment2023-08-012024-07-3105516434core:WithinOneYear2024-07-3105516434core:WithinOneYear2023-07-3105516434core:Non-currentFinancialInstruments2024-07-3105516434core:Non-currentFinancialInstruments2023-07-3105516434bus:OrdinaryShareClass12023-08-012024-07-3105516434bus:OrdinaryShareClass22023-08-012024-07-3105516434bus:OrdinaryShareClass12024-07-3105516434bus:OrdinaryShareClass12023-07-3105516434bus:OrdinaryShareClass22024-07-3105516434bus:OrdinaryShareClass22023-07-3105516434bus:AllOrdinaryShares2024-07-3105516434bus:AllOrdinaryShares2023-07-3105516434bus:PrivateLimitedCompanyLtd2023-08-012024-07-3105516434bus:FRS1022023-08-012024-07-3105516434bus:AuditExemptWithAccountantsReport2023-08-012024-07-3105516434bus:Director12023-08-012024-07-3105516434bus:Director22023-08-012024-07-3105516434bus:Director32023-08-012024-07-3105516434bus:CompanySecretary12023-08-012024-07-3105516434bus:SmallCompaniesRegimeForAccounts2023-08-012024-07-3105516434bus:FullAccounts2023-08-012024-07-31xbrli:purexbrli:sharesiso4217:GBP