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REGISTERED NUMBER: 03199248 (United Kingdom)















Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 July 2024

for

RUNTECH LIMITED

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Contents of the Financial Statements
for the Year Ended 31 July 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


RUNTECH LIMITED

Company Information
for the Year Ended 31 July 2024







DIRECTORS: Mr I Gorvett
Mr G Gorvett





REGISTERED OFFICE: Dyffryn Court
Riverside Business Park
Swansea vale
Swansea
SA7 0AP





REGISTERED NUMBER: 03199248 (United Kingdom)





AUDITORS: Advantage Accountancy & Advisory Ltd
Chartered Certified Accountants
and Statutory Auditors
Avalon House
5-7 Cathedral Road
Cardiff
CF11 9HA

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Strategic Report
for the Year Ended 31 July 2024


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

FAIR REVIEW OF THE BUSINESS
Despite the extremely challenging environment as a result of continued inflationary pressures and changes to our customer's business operations, we continued to trade successfully during the year ended 31st July 2024, and saw an increase in turnover to £23,622,086 (2023: £21,363,455). We have also seen gross margin improving from 29.0% to 30.4%. Our growth continues to be as a result of strengthened brand and service propositions combined with a team of highly motivated and dedicated employees.

The company has continued to undertake significant investment during the year in fixed assets, along with significant one-off investment in the commencement of new contracts and diversification into new revenue streams in order to deliver future revenue growth and profitability.

As a result of these investments, profit before tax has reduced slightly from £2,060,397 in 2023, to £1,707,858 in 2024. New contracts commenced during the second half of the financial year ended 31 July 2024 and have had a positive impact on trading performance during the year ended 31 July 2025 up to the date of this report. We expect these contracts to have positive impact through the remainder of the year ended 31 July 2025 and beyond. We continue to focus on our control of overheads to ensure that the business operates as efficiently as possible.

SUMMARY OF FINANCIAL RESULTS

2024 2023 2022
(£'000) (£'000) (£'000)
Turnover 23,622 21,363 18,693
Gross Profit 7,180 6,201 5,114
Gross Profit % 30.4% 29.0% 27.4%
Operating Profit 2,538 2,556 1,247
Profit before tax 1,708 2,060 1,044
Average number of
employees

246

229

206

At the financial year end the company is in a strong position with retained earnings of £6,765,610 (2023: £5,805,811).

The directors consider that the key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, being turnover, gross profit, operating profit and profit on ordinary activities before taxation as set out in the profit and loss account.

The company uses a range of non-financial KPIs to monitor the performance of the business such as asset utilisation and volumes. However, the directors have chosen not to include these KPIs in the financial statements due to commercial sensitivity.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties that are felt to impact the company relate to competition and economic conditions. Retaining the best employees remains a high priority for the company. In addition to ensuring that we provide competitive remuneration packages for all employees, we also undertake training and development initiatives to help our employees to be the best they can be.

With regards to competition, our employees strive to maximise the quality of customer service we offer and improve efficiency to allow us to deliver best value to our customers.

Uncertainty in the world economy, in particular rapid inflationary price increases, has had an impact on our costs, however the company has managed this well, and as noted above has seen turnover, gross margin and profit growth.


RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Strategic Report
for the Year Ended 31 July 2024

FUTURE DEVELOPMENTS
The directors are pleased with the results for the year plan to continue adapting quickly to the challenges brought on by customer markets and economic risk by the enhancement of services we are able to offer, by continuing growth with existing customers, but also diversifying further by growing our customer base.

The outlook for the year to 31 July 2025 remains positive. The company has managed to diversify its operations to mitigate the impact of the closure of the Blast Furnaces at Port Talbot, as well as securing new contracts. The directors believe that the company is well placed to take advantage of future opportunities as its customers transition to a lower carbon future.

ON BEHALF OF THE BOARD:





Mr I Gorvett - Director


17 April 2025

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Report of the Directors
for the Year Ended 31 July 2024


The directors present their report with the financial statements of the company for the year ended 31 July 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the leasing of vehicles, remote demolition machinery, heavy plant and machinery on short term leases. This is predominantly to companies operating in the steel industry in the United Kingdom.

DIVIDENDS
The total distribution of dividends for the year ended 31 July 2024 will be £233,186 (2023: £280,358). Details of dividends declared are summarised in Note 9 to the financial statements

RESEARCH AND DEVELOPMENT
No significant research and development activities were undertaken during the period ending 31 July 2024.

FUTURE DEVELOPMENTS
Please refer to the fair review of business within the strategic report.

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

Mr I Gorvett
Mr G Gorvett

FINANCIAL INSTRUMENTS
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities. The company does not enter into any formally designated hedging arrangements and does not have any non-basic financial instruments.

See note 2 in relation to disclosure on financial instruments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Report of the Directors
for the Year Ended 31 July 2024


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Advantage Accountancy & Advisory Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr I Gorvett - Director


17 April 2025

Report of the Independent Auditors to the Members of
Runtech Limited


Opinion
We have audited the financial statements of Runtech Limited (the 'company') for the year ended 31 July 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 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.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Runtech Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

•The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

•We obtained understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant: The Companies Act 2006 , UK corporate taxation laws, employment legislation and health and safety legislation.

•We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making inquiries to management. We corroborated our inquiries through our review of legal correspondence.

•We assessed the susceptibility of the company's financial statements to material misstatements, including how fraud might occur. Audit procedures performed by the engagement team included:

Report of the Independent Auditors to the Members of
Runtech Limited



• making enquiries of management as to where they considered there was susceptibility to fraud, their
knowledge of actual, suspected and alleged fraud;

• identifying and assessing the design effectiveness of controls management has in place to prevent and
detect fraud;

• understanding how those charged with governance considered and addressed the potential for override of
controls or other inappropriate influence over the financial reporting process;
• performing analytical procedures to identify any unusual or unexpected relationships;
• challenging assumptions and judgements made by management in its significant accounting estimates;

• identifying and testing journal entries, in particular any journal entries posted with unusual account
combinations; and
• assessing the extent of compliance with relevant laws and regulations.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Stephen John Bickerton (Senior Statutory Auditor)
for and on behalf of Advantage Accountancy & Advisory Ltd
Chartered Certified Accountants
and Statutory Auditors
Avalon House
5-7 Cathedral Road
Cardiff
CF11 9HA

17 April 2025

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Statement of Comprehensive
Income
for the Year Ended 31 July 2024

2024 2023
Notes £    £   

TURNOVER 3 23,622,086 21,363,455

Cost of sales (16,441,823 ) (15,162,023 )
GROSS PROFIT 7,180,263 6,201,432

Administrative expenses (4,663,458 ) (3,685,279 )
2,516,805 2,516,153

Other operating income 4 20,748 35,814
OPERATING PROFIT 6 2,537,553 2,551,967

Interest receivable and similar income 7 - 3,583
2,537,553 2,555,550

Interest payable and similar expenses 8 (829,695 ) (495,153 )
PROFIT BEFORE TAXATION 1,707,858 2,060,397

Tax on profit 9 (514,873 ) (474,332 )
PROFIT FOR THE FINANCIAL YEAR 1,192,985 1,586,065

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

1,192,985

1,586,065

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Balance Sheet
31 July 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Tangible assets 11 20,501,764 16,021,101

CURRENT ASSETS
Stocks 12 357,066 368,748
Debtors 13 10,836,892 7,994,013
Cash in hand 636 636
11,194,594 8,363,397
CREDITORS
Amounts falling due within one year 14 13,010,304 9,995,994
NET CURRENT LIABILITIES (1,815,710 ) (1,632,597 )
TOTAL ASSETS LESS CURRENT LIABILITIES 18,686,054 14,388,504

CREDITORS
Amounts falling due after more than one
year

15

(8,799,024

)

(6,312,069

)

PROVISIONS FOR LIABILITIES 18 (2,921,420 ) (2,070,624 )
NET ASSETS 6,965,610 6,005,811

CAPITAL AND RESERVES
Called up share capital 19 200,000 200,000
Retained earnings 20 6,765,610 5,805,811
SHAREHOLDERS' FUNDS 6,965,610 6,005,811

The financial statements were approved by the Board of Directors and authorised for issue on 17 April 2025 and were signed on its behalf by:





Mr I Gorvett - Director


RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Statement of Changes in Equity
for the Year Ended 31 July 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 August 2022 200,000 4,500,104 4,700,104

Changes in equity
Dividends - (280,358 ) (280,358 )
Total comprehensive income - 1,586,065 1,586,065
Balance at 31 July 2023 200,000 5,805,811 6,005,811

Changes in equity
Dividends - (233,186 ) (233,186 )
Total comprehensive income - 1,192,985 1,192,985
Balance at 31 July 2024 200,000 6,765,610 6,965,610

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Notes to the Financial Statements
for the Year Ended 31 July 2024


1. STATUTORY INFORMATION

Runtech Limited is a private company, limited by shares , registered in United Kingdom. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The
Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention except that as disclosed in the accounting policies that are shown at fair value.

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

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 33.7.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. he estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Deferred income
The company receives rebates when acquiring certain fleet vehicles. These rebates are classified as deferred income in the financial statements and are released to the profit and loss account at the same rate as the vehicles are depreciated.

Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Revenue is shown net of sales/value added tax, returns, rebates and discounts.

The majority of the revenue relates to the provision of vehicles on short term leases, and also the supply of labour. This revenue is recognised in the month that the service is provided. Due to invoicing arrangements on certain contracts, revenue is not always invoiced at the end of a month, but it is recognised as work in progress within trade debtors in the financial statements.

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024


2. ACCOUNTING POLICIES - continued

Revenue is also earned through the provision of haulage services. The revenue is invoiced and recognised within the month that the service is provided.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Land and buildings - Straight line over the life of the lease
Plant and machinery - 12.5% - 33.33% Straight line
Fixtures and fittings - 20% Straight line
Equipment - 33% Straight line

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024


2. ACCOUNTING POLICIES - continued

Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024


2. ACCOUNTING POLICIES - continued

Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the useful life of the asset. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Financial Instruments

Classification
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Debt instruments are subsequently measured at amortised cost.

Impairment
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024


3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Sale of goods 172,037 285,763
Rendering of services 23,450,049 21,077,692
23,622,086 21,363,455

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 23,622,086 21,363,455
23,622,086 21,363,455

4. OTHER OPERATING INCOME
2024 2023
£    £   
Government grants 20,748 35,814

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 9,163,518 7,995,038
Social security costs 888,121 788,525
Other pension costs 176,671 159,845
10,228,310 8,943,408

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

Direct staff 222 205
Administration and support 20 20
Senior management 4 4
246 229

2024 2023
£    £   
Directors' remuneration 25,140 19,461

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024


5. EMPLOYEES AND DIRECTORS - continued

The key management personnel are considered to be the directors, therefore no further disclosure is required for key management personnel remuneration.

6. OPERATING PROFIT

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

2024 2023
£    £   
Commercial vehicle leasing 789,233 803,673
Other operating leases - rent 145,518 103,855
Depreciation - owned assets 875,925 788,434
Depreciation - assets on hire purchase contracts 1,769,251 1,474,997
Loss/(profit) on disposal of fixed assets 52,764 (119,053 )
Auditors' remuneration 16,500 15,300

7. INTEREST RECEIVABLE AND SIMILAR INCOME
2024 2023
£    £   
Interest receivable - 3,583

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 110,378 73,658
Bank loan interest 84,037 36,152
Other interest payable 174 -
Hire purchase 635,106 385,343
829,695 495,153

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024


9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax adjustment to prior period 42,677 31,744

Deferred tax:
Arising from origination and reversal of timing
differences

850,796

599,108
Arising from tax losses carried forward (378,600 ) (156,520 )
Total deferred tax 472,196 442,588
Tax on profit 514,873 474,332

UK corporation tax was charged at 25%) in 2023.

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 1,707,858 2,060,397
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

426,965

515,099

Effects of:
Expenses not deductible for tax purposes 22,137 26,508
Capital allowances in excess of depreciation (827,702 ) (698,127 )
Adjustments to tax charge in respect of previous periods 42,677 31,744
Deferred tax arising from origination and reversal of timing difference 850,796 599,108
Total tax charge 514,873 474,332

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024


9. TAXATION - continued

Deferred tax
Deferred tax assets and liabilities

2024AssetLiability
£ £

Accelerated capital allowances-2,921,420
Losses carried forward891,350-
891,3502,921,420

2023AssetLiability
£ £

Accelerated capital allowances-2,070,624
Losses carried forward512,750-
512,7502,070,624

10. DIVIDENDS
2024 2023
£    £   
Ordinary A Shares shares of £1 each
Interim 58,297 70,089
Ordinary B Shares shares of £1 each
Interim 58,297 70,090
Ordinary C Shares shares of £1 each
Interim 116,592 140,179
233,186 280,358

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024


11. TANGIBLE FIXED ASSETS
Fixtures
Land and Plant and and
buildings machinery fittings Equipment Totals
£    £    £    £    £   
COST
At 1 August 2023 505,648 26,036,481 910,896 420,800 27,873,825
Additions 114,539 7,574,504 88,197 110,906 7,888,146
Disposals - (1,559,472 ) (2,224 ) - (1,561,696 )
At 31 July 2024 620,187 32,051,513 996,869 531,706 34,200,275
DEPRECIATION
At 1 August 2023 274,377 10,655,913 716,019 206,415 11,852,724
Charge for year 32,264 2,492,025 71,560 49,327 2,645,176
Eliminated on disposal - (797,591 ) (1,798 ) - (799,389 )
At 31 July 2024 306,641 12,350,347 785,781 255,742 13,698,511
NET BOOK VALUE
At 31 July 2024 313,546 19,701,166 211,088 275,964 20,501,764
At 31 July 2023 231,271 15,380,568 194,877 214,385 16,021,101

Included within the net book value of land and buildings above is £313,546 (2023 - £231,271) in respect of long leasehold land and buildings.

Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
20242023
£ £

Plant and machinery14,615,21211,442,248
Fixtures and fittings10,65814,115
14,625,87111,456,363

12. STOCKS
2024 2023
£    £   
Machinery parts 357,066 368,748

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024


13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 7,839,344 5,176,579
Amounts owed by group undertakings 1,415,206 1,415,206
Other debtors 135,393 344,709
Tax - 42,677
Deferred tax assets 891,350 512,750
Prepayments 555,599 502,092
10,836,892 7,994,013

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 16) 2,101,754 1,254,927
Hire purchase contracts (see note 17) 3,793,110 3,015,146
Trade creditors 2,285,677 1,634,086
Amounts owed to group undertakings 2,003,032 2,540,133
Social security and other taxes 897,329 691,663
Other creditors 417,220 159,725
Directors' loan accounts 89,936 11,463
Accruals and deferred income 1,422,246 688,851
13,010,304 9,995,994

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Bank loans (see note 16) 468,046 38,334
Hire purchase contracts (see note 17) 8,330,978 6,273,735
8,799,024 6,312,069

16. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 2,081,754 1,234,927
Bank loans 20,000 20,000
2,101,754 1,254,927

Amounts falling due between two and five years:
Bank loans - 2-5 years 468,046 38,334

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024


16. LOANS - continued

The bank loans are unsecured and attract an interest rate of 2%.

Secured borrowings
Barclays Bank Plc have a preferential debenture over the assets of the company. A cross guarantee exists between Runtech Limited, Runtech (North) Limited and Runtech Holdings Ltd. A personal guarantee has been provided by certain directors of the company. The above security relates to the bank overdraft of £2,081,754 (2023: £1,234,927), and the hire purchase liabilities.

Hire purchase liabilities due within one year totalling £3,793,110 (2023: £3,015,146) and in greater than one year totalling £8,330,978 (2023: £6,273,735) are also secured against the assets to which they relate.

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 3,793,110 3,015,146
Between one and five years 8,330,978 6,273,735
12,124,088 9,288,881

Non-cancellable operating leases
2024 2023
£    £   
Within one year 374,575 526,383
Between one and five years 400,767 324,924
In more than five years 95,016 118,770
870,358 970,077

The amount of non-cancellable operating lease payments recognised as an expense during the year was £596,582 (2023: £592,613).

18. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 2,921,420 2,070,624

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024


18. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 August 2023 2,070,624
Provided during year 850,796
Additional provisions
Balance at 31 July 2024 2,921,420

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
50,000 Ordinary A Shares £1 50,000 50,000
50,000 Ordinary B Shares £1 50,000 50,000
100,000 Ordinary C Shares £1 100,000 100,000
200,000 200,000

20. RESERVES
Retained
earnings
£   

At 1 August 2023 5,805,811
Profit for the year 1,192,985
Dividends (233,186 )
At 31 July 2024 6,765,610

21. PENSION AND OTHER SCHEMES

Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £176,671 (2023: £159,845).

Contributions totalling £26,762 (2023: £27,219) were payable to the scheme at the end of the year and are included in creditors.

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024


22. RELATED PARTY DISCLOSURES

In the opinion of the directors, the ultimate controlling party at the date of signing the financial statements, is Mr I G Gorvett.

The immediate parent undertaking is Runtech Holdings Ltd, and the ultimate parent company is Runtech European Group Ltd, which prepares group financial statements. Copies of the consolidated financial statements can be obtained form the registered office of Runtech European Group Ltd, Dyffryn Court, Riverside Business Park, Swansea, SA7 0AP.

The company has taken advantage of an exemption, under Section 33 of FRS 102, 'The Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries with the group.

The company owed Mr I Gorvett £89,780 (2023: £11,307) at the year end. The balance is interest free and unsecured. The company made sales to Mr I Gorvett totalling £nil (2023: £nil) and was owed £nil (2023: £55,800) at the year end. Mr I Gorvett is related to the company by virtue of being a director.

The company owed Mrs S Gorvett £156 (2023: £156) at the year end. The balance is interest free and unsecured. Mrs S Gorvett has made purchases from the company totalling £nil (2023: £nil) and owed £17,114 (2023: £17,114) at the year end. Mrs S Gorvett is a related party by virtue of being a shareholder of the immediate parent company.

Runtech Limited made sales to Planguard Garage Services Limited totalling £nil (2023: £nil) and included within trade debtors is a balance of £nil (2023: £nil) due from Planguard Garage Services Limited. Also, included within other debtors is a balance due from Planguard Garage Services Limited totalling £800 (2023: £800). Runtech Limited made purchases totalling £107,138 (2023: £107,270) from Planguard Garage Services Limited during the year, and included within trade creditors is a balance of £97,004 (2023: £60,617) due to Planguard Garage Services Limited at the year end. Included within other creditors is a balance due from Planguard Garage Services Limited totalling £11,653 (2023: £32,903). The balance is interest free, unsecured and has no set repayment terms. The companies are related by virtue of common directors.

Runtech Limited made sales totalling £30,166 (2023: £37,479) to Spraytech Coatings Limited during the year. Included within trade debtors is £95,585 (2023: £59,391) due from Spraytech Coatings Limited at the year end. Runtech Limited made purchases totalling £90,425 (2023: £63,588), and paid management charges totalling £nil (2023: £nil) to Spraytech Coatings Limited during the year. Included within trade creditors is a balance of £115,094 (2023: £22,825) owed to Spraytech Coatings Limited. Included in other creditors is a balance of £64,324 (2023: £81,907) owed to Spraytech Coatings Limited. The companies are connected by virtue of common directors.

Runtech Limited made sales totalling £60,266 (2023: £81,331) to Caer Hendy Gardens Limited during the year. Included within trade debtors is £181,983 (2023: £109,667) due from Caer Hendy Gardens Limited. Runtech Limited made purchases totalling £20,744 (2023: £81,761), and paid management charges totalling £113,000 (2023: £75,937) to Caer Hendy Gardens Limited during the year. Included within trade creditors is a balance of £60,246 (2023: £31,806(owed)) due from Caer Hendy Gardens Limited. Included within other creditors is a balance due to Caer Hendy Gardens Limited totalling £243,420 (2023: £299,323(due from)). The companies are connected by virtue of common directors.

Runtech Limited made sales to AG Properties & Maintenance Limited totalling £2,900 (2023: £81) and included within trade debtors is a balance of £15,638 (2023: £12,125) due from AG Properties & Maintenance Limited. Included within other debtors is a balance due from AG Properties & Maintenance Limited totalling £20,111 (2023: £nil). The balance is interest free, unsecured and has no set repayment terms. The companies are related by virtue of common directors.

RUNTECH LIMITED (REGISTERED NUMBER: 03199248)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024


All purchases and sales between related parties are made at arm’s length, under normal trading terms.