REGISTERED NUMBER: 13695322 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 July 2024 |
for |
RUNTECH EUROPEAN GROUP LTD |
REGISTERED NUMBER: 13695322 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 July 2024 |
for |
RUNTECH EUROPEAN GROUP LTD |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 July 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 8 |
Consolidated Statement of Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 19 |
RUNTECH EUROPEAN GROUP LTD |
Company Information |
for the Year Ended 31 July 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants |
and Statutory Auditors |
Avalon House |
5-7 Cathedral Road |
Cardiff |
CF11 9HA |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Group Strategic Report |
for the Year Ended 31 July 2024 |
The directors present their strategic report of the company and the group for the year ended 31 July 2024. |
REVIEW OF 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 group turnover to £27,832,558 (2023: £25,476,747). We have also seen gross margin improving from 30.3% to 31.4%. 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 group 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 £2,120,899 in 2023, to £1,702,983 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) |
(9 months) |
Turnover | 27,833 | 25,477 | 16,930 |
Gross Profit | 8,755 | 7,716 | 4,941 |
Gross Profit % | 31.4% | 30.3% | 29.2% |
Operating Profit | 2,912 | 2,958 | 949 |
Profit before tax | 1,703 | 2,121 | 764 |
Average number of employees |
295 |
275 |
244 |
At the financial year end the group is in a strong position with retained earnings of £2,965,137 (2023: £1,946,362). |
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 Group 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 EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Group Strategic Report |
for the Year Ended 31 July 2024 |
SECTION 172(1) STATEMENT |
The directors are aware of their duty under s172s of the Companies Act 2006 to act in the way which they consider, in good faith, would most likely promote the success of the group for the benefit of its members as a whole and, in doing so, to have regards to the following: |
• The likely consequences of any decision in the long term; |
• The interests of the group's employees; |
• The need to foster the group's business relationships with suppliers, customers and others; |
• The impact of the group's operations on the community and the environment; |
• The desirability of the group maintaining a reputation for high standards of business conduct; and |
• The need to act fairly between members of the group. |
Employees |
We recognise that our staff are fundamental to the delivery of our objectives and we rely on their hard work, enthusiasm and commitment to our business. |
We aim to be a responsible employer, both in terms of the pay and rewards provided, and the opportunities for career development. We recognise the importance of good communications and relations with employees and consult with employees where appropriate. |
Our policy is that disabled persons are considered for employment, career development and promotion on the basis of their aptitude and abilities in common with all employees. We are committed to equality regardless of gender, race, religious belief, political opinion or affiliation, sexual orientation, age, marital status or disability. |
The health, safety and wellbeing of our employees is at the forefront of how we do business. |
Customers |
We value our relationships with customers and recognise our position as a major supplier of services to enable their operations. |
We are in constant dialogue with our customers which allows us to react to their requirements and ensure that we are delivering our service in line with our corporate objectives and contractual obligations. |
This takes the form of ad-hoc meetings, periodic reviews or through contract negotiation and execution. The directors are "hands on" in their approach and engage with customers regularly. |
Suppliers |
Our business model prioritises customer satisfaction and we engage with suppliers who align to our business priorities and values. We encourage open and honest two-way communications with our suppliers to ensure an effective supply chain to support our business. We seek to deal with our suppliers in a fair and ethical manner to ensure effective long-term relationships. |
Community Engagement |
We are a family-owned business with roots in South Wales and recognise our position as a significant employer in the local region and the other regions in which we operate. We are committed to the communities in which we operate and see our responsibility to support our communities both economically and socially. |
We undertake a range of activities within our communities - these include sponsorship of the Richard Burton 10k, a local road race; charitable donations to local causes; and staff time donated to local charities. |
Energy and Carbon |
We recognise our impact on the environment through our business activities. We report our carbon usage under SECR guidelines and take steps where feasible to reduce or minimize our carbon usage. |
We have recently invested in a range of electric vehicles, both within our company fleets and hire fleets, and will seek further opportunities to reduce carbon usage as the industries in which we operate transition to a lower-carbon future. |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Group Strategic Report |
for the Year Ended 31 July 2024 |
FUTURE DEVELOPMENTS |
The group plans 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 group 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 group is well placed to take advantage of future opportunities as its customers transition to a lower carbon future. |
ON BEHALF OF THE BOARD: |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Report of the Directors |
for the Year Ended 31 July 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 July 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of 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 £ 55,990 . |
RESEARCH AND DEVELOPMENT |
No significant research and development activities were undertaken during the period ending July 2024 (July 2023: £nil). |
FUTURE DEVELOPMENTS |
Please refer to 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. |
FINANCIAL INSTRUMENTS |
The group has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities. The group does not enter into any formally designated hedging arrangements and does not have any non-basic financial instruments. |
See note 2 in relation to the accounting policy on financial instruments, no further disclosures are considered |
necessary. |
DISABLED PERSONS |
It is the Group's policy to give fair consideration to application for employment by disabled persons whose aptitude and skills can be utilised within it's business and to their training and career development opportunities. |
Should any employee become disabled it would be considered appropriate, in all but the most extreme circumstances, to ensure that their employment within the Group continues, and that an alternative job or appropriate retraining be provided as necessary, to enable them to maximise their potential. |
ENGAGEMENT WITH EMPLOYEES |
The company places value on the involvement of its employees, keeping them informed on matters affecting them as employees on the various factors effecting the performance of the company and future development. |
Additional information in relation to employee and other stakeholder engagement is provided in the Strategic Report in accordance with Section 172(1) Companies Act. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
Please refer to the strategic report. |
STREAMLINED ENERGY AND CARBON REPORTING |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Report of the Directors |
for the Year Ended 31 July 2024 |
The section below presents the energy usage and associated carbon dioxide emissions for Runtech European Group Limited. |
This section has been prepared in compliance with the SECR Framework as implemented in the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. |
In line with the Streamline Energy and Carbon Reporting legislation, the company is required to report its energy consumption and greenhouse gas emissions arising in the UK. All scope 1 and 2 sources of energy and emissions have been disclosed. |
Units | 2024 |
Emissions from combustion of gas (Scope 1) |
tCO2e |
25.12 |
Emissions from combustion of fuel for transport purposes (Scope 1) |
tCO2e |
4,373.15 |
Emissions from purchased electricity (Scope 2) |
tCO2e |
51.62 |
Total gross emissions | tCO2e | 4,489.89 |
Energy consumption used to calculate above emissions |
KWh |
17,606,126 |
Intensity ratio | tCO2e/£'000 sales | 6.20 |
Intensity ratios have been calculated from the value of turnover and include all of the energy usage and emissions stated within the values reported above and in accordance with the methodology applied. |
Methodology |
Conversion factors |
All conversion factors and fuel properties used in this disclosure have been taken from the 2024 "UK Government Greenhouse Gas Conversion Factors for Company Reporting" published by the Department for Energy Security and Net Zero and the Department of Environment, Food & Rural Affairs. All greenhouse gas emissions have been expressed in terms of their carbon dioxide equivalence. The Group is using the 2024 conversion factors on the basis of the 'majority' approach as defined in the published conversion factors. |
Utilities |
Energy consumption in kilowatt-hours has been taken from supplier invoices. Conversion factors for the average UK generation mix have been used to calculate greenhouse gas emissions. |
Transport |
Fuel for transport is either purchased using fuel cards or deliveries to site. The quantity of fuel purchased in litres is recorded and the conversion factors for forecourt blends used to calculate greenhouse gas emissions. |
Other fuels |
Other fuels are purchased for the purposes of heating. Litres purchased are taken from supplier invoices and included within scope 1. |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Report of the Directors |
for the Year Ended 31 July 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 group'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 group'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: |
Report of the Independent Auditors to the Members of |
Runtech European Group Ltd |
Opinion |
We have audited the financial statements of Runtech European Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 July 2024 and of the group's 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 group 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 group's and the parent 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 Group 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. |
Report of the Independent Auditors to the Members of |
Runtech European Group Ltd |
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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 seven, 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 group's and the parent 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 group or the parent 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 European Group Ltd |
• 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. |
for and on behalf of |
Chartered Certified Accountants |
and Statutory Auditors |
Avalon House |
5-7 Cathedral Road |
Cardiff |
CF11 9HA |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Consolidated |
Statement of Comprehensive |
Income |
for the Year Ended 31 July 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 27,832,558 | 25,476,747 |
Cost of sales | (19,077,904 | ) | (17,761,186 | ) |
GROSS PROFIT | 8,754,654 | 7,715,561 |
Administrative expenses | (5,863,731 | ) | (4,794,574 | ) |
2,890,923 | 2,920,987 |
Other operating income | 4 | 21,485 | 36,629 |
OPERATING PROFIT | 6 | 2,912,408 | 2,957,616 |
Interest receivable and similar income | 8 | - | 4,059 |
2,912,408 | 2,961,675 |
Interest payable and similar expenses | 9 | (1,209,425 | ) | (840,786 | ) |
PROFIT BEFORE TAXATION | 1,702,983 | 2,120,889 |
Tax on profit | 10 | (628,218 | ) | (543,443 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,074,765 |
1,577,446 |
Profit attributable to: |
Owners of the parent | 1,074,765 | 1,577,446 |
Total comprehensive income attributable to: |
Owners of the parent | 1,074,765 | 1,577,446 |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Consolidated Balance Sheet |
31 July 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 | 897,834 | 1,021,673 |
Tangible assets | 14 | 25,888,364 | 20,526,076 |
Investments | 15 | - | - |
26,786,198 | 21,547,749 |
CURRENT ASSETS |
Stocks | 16 | 367,752 | 379,327 |
Debtors | 17 | 11,929,751 | 8,779,586 |
Cash at bank and in hand | 22,397 | 50,599 |
12,319,900 | 9,209,512 |
CREDITORS |
Amounts falling due within one year | 18 | 13,953,219 | 9,843,557 |
NET CURRENT LIABILITIES | (1,633,319 | ) | (634,045 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES | 25,152,879 | 20,913,704 |
CREDITORS |
Amounts falling due after more than one year |
19 |
(16,939,693 |
) |
(14,565,910 |
) |
PROVISIONS FOR LIABILITIES | 23 | (3,498,049 | ) | (2,651,432 | ) |
NET ASSETS | 4,715,137 | 3,696,362 |
CAPITAL AND RESERVES |
Called up share capital | 24 | 20,301 | 20,301 |
Share premium | 25 | 1,729,699 | 1,729,699 |
Retained earnings | 25 | 2,965,137 | 1,946,362 |
SHAREHOLDERS' FUNDS | 4,715,137 | 3,696,362 |
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 EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Company Balance Sheet |
31 July 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
Investments | 15 |
CURRENT ASSETS |
Debtors | 17 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 18 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
19 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Share premium |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 55,990 | 107,339 |
The financial statements were approved by the Board of Directors and authorised for issue on |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 July 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 August 2022 | 20,301 | 476,255 | 1,729,699 | 2,226,255 |
Changes in equity |
Dividends | - | (107,339 | ) | - | (107,339 | ) |
Total comprehensive income | - | 1,577,446 | - | 1,577,446 |
Balance at 31 July 2023 | 20,301 | 1,946,362 | 1,729,699 | 3,696,362 |
Changes in equity |
Dividends | - | (55,990 | ) | - | (55,990 | ) |
Total comprehensive income | - | 1,074,765 | - | 1,074,765 |
Balance at 31 July 2024 | 20,301 | 2,965,137 | 1,729,699 | 4,715,137 |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Company Statement of Changes in Equity |
for the Year Ended 31 July 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 August 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 July 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 July 2024 |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Consolidated Cash Flow Statement |
for the Year Ended 31 July 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 6,026,802 | 5,461,681 |
Interest paid | (371,376 | ) | (278,200 | ) |
Interest element of hire purchase payments paid |
(838,049 |
) |
(562,586 |
) |
Tax paid | - | 70,726 |
Net cash from operating activities | 4,817,377 | 4,691,621 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (9,967,990 | ) | (7,155,551 | ) |
Sale of tangible fixed assets | 942,915 | 371,475 |
Interest received | - | 4,059 |
Net cash from investing activities | (9,025,075 | ) | (6,780,017 | ) |
Cash flows from financing activities |
Loan repayments in year | (370,704 | ) | (583,270 | ) |
New hire purchases in year | 8,129,906 | 5,640,825 |
Net capital repayments in year | (4,504,476 | ) | (3,242,671 | ) |
Amount introduced by directors | 789,000 | - |
Amount withdrawn by directors | (655,067 | ) | (103,073 | ) |
Equity dividends paid | (55,990 | ) | (107,339 | ) |
Net cash from financing activities | 3,332,669 | 1,604,472 |
Decrease in cash and cash equivalents | (875,029 | ) | (483,924 | ) |
Cash and cash equivalents at beginning of year |
2 |
(1,184,328 |
) |
(700,404 |
) |
Cash and cash equivalents at end of year | 2 | (2,059,357 | ) | (1,184,328 | ) |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 July 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 1,702,983 | 2,120,889 |
Depreciation charges | 3,615,108 | 3,225,632 |
Loss/(profit) on disposal of fixed assets | 171,519 | (83,205 | ) |
Finance costs | 1,209,425 | 840,786 |
Finance income | - | (4,059 | ) |
6,699,035 | 6,100,043 |
Decrease in stocks | 11,575 | 39,307 |
Increase in trade and other debtors | (2,931,766 | ) | (900,440 | ) |
Increase in trade and other creditors | 2,247,958 | 222,771 |
Cash generated from operations | 6,026,802 | 5,461,681 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 July 2024 |
31.7.24 | 1.8.23 |
£ | £ |
Cash and cash equivalents | 22,397 | 50,599 |
Bank overdrafts | (2,081,754 | ) | (1,234,927 | ) |
(2,059,357 | ) | (1,184,328 | ) |
Year ended 31 July 2023 |
31.7.23 | 1.8.22 |
£ | £ |
Cash and cash equivalents | 50,599 | 1,099,642 |
Bank overdrafts | (1,234,927 | ) | (1,800,046 | ) |
(1,184,328 | ) | (700,404 | ) |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 July 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.8.23 | Cash flow | At 31.7.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 50,599 | (28,202 | ) | 22,397 |
Bank overdrafts | (1,234,927 | ) | (846,827 | ) | (2,081,754 | ) |
(1,184,328 | ) | (875,029 | ) | (2,059,357 | ) |
Debt |
Finance leases | (12,409,088 | ) | (3,625,430 | ) | (16,034,518 | ) |
Debts falling due within 1 year | (811,972 | ) | 139,102 | (672,870 | ) |
Debts falling due after 1 year | (6,052,040 | ) | 231,602 | (5,820,438 | ) |
(19,273,100 | ) | (3,254,726 | ) | (22,527,826 | ) |
Total | (20,457,428 | ) | (4,129,755 | ) | (24,587,183 | ) |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 July 2024 |
1. | STATUTORY INFORMATION |
Runtech European Group Ltd is a |
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 certain items 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 group 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 requirement of paragraph 3.17(d); |
• | the requirement of paragraph 33.7. |
Basis of consolidation |
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 July 2024. |
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
The results of subsidiaries acquired or disposed of during the year are included in the Consolidated Statement of Comprehensive Income from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group. |
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill. |
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full. |
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements. |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
2. | ACCOUNTING POLICIES - continued |
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination. |
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. |
Turnover |
Turnover 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 group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group. |
The group recognises revenue when: |
The amount of revenue can be reliably measured; |
it is probable that future economic benefits will flow to the entity; |
and specific criteria have been met for each of the group's activities. |
Government grants |
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. |
Government grants are recognised using the accrual model and the performance model. |
Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. |
Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. |
Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
2. | ACCOUNTING POLICIES - continued |
Under the performance model, where the grant does not impose specified future performance-related |
conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. |
Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability. |
Goodwill |
The goodwill relates to the acquisition of the entire share capital of Runtech Holdings Ltd on the 26th October 2021. |
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made. |
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows: |
Goodwill | - | Straight line over 10 years |
Tangible fixed assets |
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows: |
Long leasehold | - | Straight line over the life of the lease |
Plant and machinery | - | 8% - 33.33% Straight line |
Fixtures and fittings | - | 16.67% - 50% Straight line |
Equipment | - | 33% Straight line |
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 Consolidated Statement of Comprehensive Income. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
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. |
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 group will not be able to collect all amounts due according to the original terms of the receivables. |
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 group 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 group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated 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 shorter of the useful life of the asset and the lease term. 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 group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared. |
Defined contribution pension obligation |
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. |
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment. |
Financial instruments |
Recognition and measurement |
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. |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Rendering of services | 27,753,397 | 25,058,563 |
Sale of goods | 79,161 | 418,184 |
27,832,558 | 25,476,747 |
The whole turnover is attributable to the principal activity of the group, and was wholly undertaken in the United Kingdom. |
4. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Other operating income | 737 | 815 |
Government grants | 20,748 | 35,814 |
21,485 | 36,629 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 11,183,013 | 9,722,108 |
Social security costs | 888,121 | 788,525 |
Other pension costs | 219,096 | 197,038 |
12,290,230 | 10,707,671 |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Direct staff | 271 | 251 |
Administration and support | 20 | 20 |
Senior management | 4 | 4 |
The key management personnel are considered to be the directors, therefore no further disclosure is required for key management personnel remuneration. |
2024 | 2023 |
£ | £ |
Directors' remuneration | 25,140 | 19,461 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Commercial vehicle leasing | 857,394 | 926,961 |
Other operating leases - rent | 145,518 | 103,855 |
Depreciation - owned assets | 1,141,901 | 952,314 |
Depreciation - assets on hire purchase contracts | 2,349,367 | 2,149,480 |
Loss/(profit) on disposal of fixed assets | 171,519 | (83,205 | ) |
Goodwill amortisation | 123,839 | 123,839 |
7. | AUDITORS' REMUNERATION |
2024 | 2023 |
£ | £ |
Fees payable to the company's auditors and their associates for the audit of the company's financial statements |
28,710 |
26,400 |
8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2024 | 2023 |
£ | £ |
Interest receivable | - | 4,059 |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | 110,378 | 73,658 |
Bank loan interest | 260,824 | 204,542 |
Other interest payable | 174 | - |
Hire purchase | 838,049 | 562,586 |
1,209,425 | 840,786 |
10. | 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 |
846,617 |
744,356 |
Arising from tax losses carried forward | (261,076 | ) | (232,657 | ) |
Total deferred tax | 585,541 | 511,699 |
Tax on profit | 628,218 | 543,443 |
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 | 1,702,983 | 2,120,889 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
425,746 |
530,222 |
Effects of: |
Expenses not deductible for tax purposes | 68,489 | 72,647 |
Income not taxable for tax purposes | 37,314 | 11,681 |
Capital allowances in excess of depreciation | (823,047 | ) | (884,306 | ) |
Utilisation of tax losses | (118,062 | ) | 6,139 |
Adjustments to tax charge in respect of previous periods | 42,677 | 31,744 |
Deferred tax from the origination and reversal of timing differences | 964,141 | 744,356 |
Goodwill amortisation not deductible for tax purposes | 30,960 | 30,960 |
Total tax charge | 628,218 | 543,443 |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
10. | TAXATION - continued |
Deferred tax |
Deferred tax assets and liabilities |
2024 | Asset | Liability |
£ | £ |
Accelerated capital allowances | - | 3,498,049 |
Losses carried forward | 1,097,539 | - |
1,097,539 | 3,498,049 |
2023 | Asset | Liability |
£ | £ |
Accelerated capital allowances | - | 2,651,432 |
Losses carried forward | 836,463 | - |
836,463 | 2,651,432 |
11. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
12. | DIVIDENDS |
2024 | 2023 |
£ | £ |
A Ordinary shares of £0.01 each |
Interim | 11,070 | 33,376 |
B Ordinary shares of £0.01 each |
Interim | 12,303 | 33,312 |
C Ordinary shares of £0.01 each |
Interim | 32,617 | 40,651 |
55,990 | 107,339 |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
13. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 August 2023 |
and 31 July 2024 | 1,238,391 |
AMORTISATION |
At 1 August 2023 | 216,718 |
Amortisation for year | 123,839 |
At 31 July 2024 | 340,557 |
NET BOOK VALUE |
At 31 July 2024 | 897,834 |
At 31 July 2023 | 1,021,673 |
14. | TANGIBLE FIXED ASSETS |
Group |
Fixtures, |
fittings |
Land and | Plant and | and |
buildings | machinery | equipment | Equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 August 2023 | 505,648 | 34,829,167 | 1,491,498 | - | 36,826,313 |
Additions | 114,539 | 9,649,148 | 93,397 | 110,906 | 9,967,990 |
Disposals | - | (2,168,468 | ) | (2,224 | ) | - | (2,170,692 | ) |
At 31 July 2024 | 620,187 | 42,309,847 | 1,582,671 | 110,906 | 44,623,611 |
DEPRECIATION |
At 1 August 2023 | 274,377 | 14,956,604 | 1,069,256 | - | 16,300,237 |
Charge for year | 32,264 | 3,328,858 | 80,819 | 49,327 | 3,491,268 |
Eliminated on disposal | - | (1,054,460 | ) | (1,798 | ) | - | (1,056,258 | ) |
At 31 July 2024 | 306,641 | 17,231,002 | 1,148,277 | 49,327 | 18,735,247 |
NET BOOK VALUE |
At 31 July 2024 | 313,546 | 25,078,845 | 434,394 | 61,579 | 25,888,364 |
At 31 July 2023 | 231,271 | 19,872,563 | 422,242 | - | 20,526,076 |
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. |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
14. | TANGIBLE FIXED ASSETS - continued |
Group |
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: |
2024 | 2023 |
£ | £ |
Plant and machinery | 19,267,392 | 15,388,787 |
Fixtures and fittings | 14,115 | 14,115 |
19,278,050 | 15,402,902 |
15. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 August 2023 |
and 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Runtech Holding Ltd |
Registered office: 7 Dyffryn Court, Riverside Business Park, Swansea Vale, Swansea, SA7 0AP |
Nature of business: holding company. |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Runtech Ltd |
Registered office: 7 Dyffryn Court, Riverside Business Park, Swansea Vale, Swansea, SA7 0AP |
Nature of business: vehicle leasing to the steel industry. |
% |
Class of shares: | holding |
Ordinary | 100.00 |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
15. | FIXED ASSET INVESTMENTS - continued |
Runtech (North) Ltd |
Registered office: 7 Dyffryn Court, Riverside Business Park, Swansea Vale, Swansea, SA7 0AP |
Nature of business: vehicle leasing to the steel industry. |
% |
Class of shares: | holding |
Ordinary | 100.00 |
16. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Machinery parts | 367,752 | 379,327 |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 10,064,958 | 6,954,316 |
Amounts owed by group undertakings | - | - |
Other debtors | 174,655 | 411,849 |
Tax | - | 42,677 |
Deferred tax assets | 1,097,539 | 836,463 | - | - |
Prepayments | 592,599 | 534,281 |
11,929,751 | 8,779,586 |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 20) | 2,754,624 | 1,850,291 |
Other loans (see note 20) | - | 196,608 |
Hire purchase contracts (see note 21) | 4,915,263 | 3,895,218 |
Trade creditors | 2,352,660 | 1,756,055 |
Amounts owed to group undertakings | - | - |
Social security and other taxes | 1,026,025 | 805,749 |
Other creditors | 716,529 | 246,203 |
Directors' loan accounts | 423,951 | 290,018 | - | - |
Accruals and deferred income | 1,764,167 | 803,415 |
13,953,219 | 9,843,557 |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 20) | 1,561,868 | 1,802,040 |
Other loans (see note 20) | 4,258,570 | 4,250,000 |
Hire purchase contracts (see note 21) | 11,119,255 | 8,513,870 |
16,939,693 | 14,565,910 |
20. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 2,081,754 | 1,234,927 |
Bank loans | 672,870 | 615,364 |
Other loans | - | 196,608 |
2,754,624 | 2,046,899 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 1,561,868 | 1,802,040 |
Other loans - 2-5 years | 4,258,570 | 4,250,000 |
5,820,438 | 6,052,040 |
21. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 4,915,263 | 3,895,218 |
Between one and five years | 11,119,255 | 8,513,870 |
16,034,518 | 12,409,088 |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
21. | LEASING AGREEMENTS - continued |
Group |
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 period was £596,582 (2023: £592,613). |
22. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank overdrafts | 2,081,754 | 1,234,927 |
Bank loans | 2,234,738 | 2,417,404 |
Hire purchase contracts | 16,034,518 | 12,409,088 |
20,351,010 | 16,061,419 |
Barclays Bank Plc have a preferential debenture over the assets of the group. A cross guarantee exists between Runtech European Group Ltd, Runtech Holdings Ltd, Runtech Limited and Runtech (North) Limited. A personal guarantee has been provided by certain directors of the company. |
The bank loans attract an interest rate between 2% to 3.25% over base. |
Hire purchase liabilities are secured against the assets to which they relate. |
23. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 3,498,049 | 2,651,432 |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
23. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 August 2023 | 2,651,432 |
Provided during year | 846,617 |
Balance at 31 July 2024 | 3,498,049 |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
A Ordinary | £0.01 | 2,030 | 2,030 |
B Ordinary | £0.01 | 2,030 | 2,030 |
C Ordinary | £0.01 | 16,241 | 16,241 |
20,301 | 20,301 |
25. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 August 2023 | 1,946,362 | 1,729,699 | 3,676,061 |
Profit for the year | 1,074,765 | 1,074,765 |
Dividends | (55,990 | ) | (55,990 | ) |
At 31 July 2024 | 2,965,137 | 1,729,699 | 4,694,836 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 August 2023 | 1,729,699 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 July 2024 | 1,729,699 |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
26. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the group to the scheme and amounted to £219,096 (2023 - £197,038). |
Contributions totalling £28,914 (2023 - £29,125) were payable to the scheme at the end of the period and are included in creditors. |
27. | RELATED PARTY DISCLOSURES |
Group |
In the opinion of the directors, the ultimate controlling party at the date of signing the financial statements, is Mr I G Gorvett. |
At the year end, Runtech European Group Ltd was the immediate parent company of Runtech Holdings Ltd and the ultimate parent company of both Runtech Ltd and Runtech (North) Ltd, and the results of each company will be consolidated into the Runtech European Group Ltd consolidated financial statements. As a result, an exemption to disclose transactions between 100% group companies, under Section 33 of FRS 102, will be claimed for all transactions between Runtech European Group Ltd, Runtech Holdings Ltd, Runtech Ltd and Runtech (North) Ltd, who is also a 100% subsidiary of Runtech European Group Ltd. |
At the year end, the group owed a balance of £276,310 (2023: £185,230) due within one year to Mr I Gorvett, and a further £2,129,285 (2023: £2,125,000) due in greater than one year. The balance is interest free and unsecured. The group made sales to Mr I Gorvett totalling £nil (20223: £nil) and was owed £nil (2023: £55,800) at the year end which is disclosed within trade debtors. Mr I Gorvett is related to the group by virtue of being a director and shareholder. |
At the year end, the group owed a balance of £147,640 (2023: £301,306) due within one year to Mrs S Gorvett, and a further £2,129,285 (2023: £2,125,000) due in greater than one year. The balance is interest free and unsecured. Mrs S Gorvett has made purchases from the group 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 director and shareholder. |
At the year-end a balance of £9,917 (2023: £9,917) was owed to the group from Mr I G Gorvett. The balance is interest free, unsecured and has no set repayment terms. Mr I G Gorvett is a related party by virtue of being a director and shareholder. |
The group 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). The group made purchases totalling £107,138 (2022: £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 £18,753 (2023: £41,003). The balance is interest free, unsecured and has no set repayment terms. The companies are related by virtue of common directors. |
The group made sales totalling £30,166 (2023: £37,479) to Spraytech Coatings Limited during the year. Included within trade debtors is £95,585 (2023: £59,561) due from Spraytech Coatings Limited at the year end. The group 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 £48,827 (2023: £66,410) owed to Spraytech Coatings Limited. The companies are connected by virtue of common directors. |
RUNTECH EUROPEAN GROUP LTD (REGISTERED NUMBER: 13695322) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
The group made sales totalling £60,266 (2023: £82,998) to Caer Hendy Gardens Limited during the year. Included within trade debtors is £181,983 (2023: £109,667) due from Caer Hendy Gardens Limited.The group made purchases totalling £20,744 (2023: £82,828), 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: £40,797) owed to Caer Hendy Gardens Limited. Included within other creditors is a balance owed to Caer Hendy Gardens Limited totalling £270,624 (2023: £227,245(due from)). The companies are connected by virtue of common directors. |
The group 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. Include within other debtors is a balance due to AG Properties & Maintenance Limited totalling £26,111 (2023: £nil). The balance is interest free, unsecured and has no set repayment terms. The companies are related by virtue of common directors. |
All purchases and sales between related parties are made at arm’s length, under normal trading terms. |