REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements for the Year Ended 31 July 2024 |
for |
RUNTECH LIMITED |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Chartered Certified Accountants |
and Statutory Auditors |
Avalon House |
5-7 Cathedral Road |
Cardiff |
CF11 9HA |
RUNTECH LIMITED (REGISTERED NUMBER: 03199248) |
Statement of Comprehensive |
Income |
for the Year Ended 31 July 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
2,516,805 | 2,516,153 |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Interest receivable and similar income | 7 |
2,537,553 | 2,555,550 |
Interest payable and similar expenses | 8 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 9 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
RUNTECH LIMITED (REGISTERED NUMBER: 03199248) |
Balance Sheet |
31 July 2024 |
2024 | 2023 |
Notes | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
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 LIMITED (REGISTERED NUMBER: 03199248) |
Notes to the Financial Statements |
for the Year Ended 31 July 2024 |
1. | STATUTORY INFORMATION |
Runtech Limited 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 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 |
Land and buildings | - |
Plant and machinery | - |
Fixtures and fittings | - |
Equipment | - |
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 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom |
4. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Government grants |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
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 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
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 |
Other operating leases - rent |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Loss/(profit) on disposal of fixed assets | ( |
) |
Auditors' remuneration |
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2024 | 2023 |
£ | £ |
Interest receivable |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest |
Bank loan interest |
Other interest payable |
Hire purchase |
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 |
Arising from tax losses carried forward | (378,600 | ) | (156,520 | ) |
Total deferred tax |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods |
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 |
2024 | Asset | Liability |
£ | £ |
Accelerated capital allowances | - | 2,921,420 |
Losses carried forward | 891,350 | - |
891,350 | 2,921,420 |
2023 | Asset | Liability |
£ | £ |
Accelerated capital allowances | - | 2,070,624 |
Losses carried forward | 512,750 | - |
512,750 | 2,070,624 |
10. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary A Shares shares of £1 each |
Interim |
Ordinary B Shares shares of £1 each |
Interim |
Ordinary C Shares shares of £1 each |
Interim |
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 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 July 2024 |
DEPRECIATION |
At 1 August 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
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: |
2024 | 2023 |
£ | £ |
Plant and machinery | 14,615,212 | 11,442,248 |
Fixtures and fittings | 10,658 | 14,115 |
14,625,871 | 11,456,363 |
12. | STOCKS |
2024 | 2023 |
£ | £ |
Machinery parts |
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 |
Amounts owed by group undertakings |
Other debtors |
Tax |
Deferred tax assets | 891,350 | 512,750 |
Prepayments |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 16) |
Hire purchase contracts (see note 17) |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
Other creditors |
Directors' loan accounts | 89,936 | 11,463 |
Accruals and deferred income |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 16) |
Hire purchase contracts (see note 17) |
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 |
Bank loans |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
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 |
Between one and five years |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
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 |
Provided during year |
Additional provisions |
Balance at 31 July 2024 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary A Shares | £1 | 50,000 | 50,000 |
Ordinary B Shares | £1 | 50,000 | 50,000 |
Ordinary C Shares | £1 | 100,000 | 100,000 |
200,000 | 200,000 |
20. | RESERVES |
Retained |
earnings |
£ |
At 1 August 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 July 2024 |
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. |