Company registration number 02218034 (England and Wales)
R & M ELECTRICAL GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
R & M ELECTRICAL GROUP LIMITED
COMPANY INFORMATION
Directors
Mr T Coomer
Mr W Crook
Mr B Reufels
Mr D A Robinson
Mr P Stiehl
Mr N Robinson
(Appointed 9 April 2024)
Secretary
Mr W Crook
Company number
02218034
Registered office
Turnpike House
Tollgate Business Park
Chandlers Ford
Hampshire
SO53 3TG
Auditor
Fiander Tovell Limited
Stag Gates House
63/64 The Avenue
Southampton
Hampshire
SO17 1XS
R & M ELECTRICAL GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 5
Directors' report
6 - 9
Independent auditor's report
10 - 12
Group profit and loss account
13
Group statement of comprehensive income
14
Group balance sheet
15
Company balance sheet
16 - 17
Group statement of changes in equity
18
Company statement of changes in equity
19
Group statement of cash flows
20
Notes to the financial statements
21 - 46
R & M ELECTRICAL GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Business review and future developments

The directors are delighted to report another record year in turnover together with impressive profitability.

 

Turnover totalled £156.966m, a 6.99% increase when compared with the previous year whilst the gross profit margin improved to 21.43% (2023: 20.83%). Total gross profit was £32.811m.

 

Across most of our core market sectors we experienced good growth and major project wins. We also continued our expansion into the Caribbean and South America.

 

To facilitate this growth, distribution and administrative expenses were £24,521m which represents a 11.49% increase with the corresponding twelve months. This is also a reflection of the inflationary times the whole worldwide economy has suffered.

 

Whilst the group maintains a tight control over its overheads it recognises the need to make investment to maintain the service levels that our customers deserve and to grow the business in the future. This strategy has been well rewarded with our growth in recent years.

 

The net profit after tax for the financial year was £6.418m (2023 - £6.447m).

 

Our Balance Sheet strength has been consolidated with net assets of £22.378m (2023 - £21.197m).

 

Net current assets have reduced slightly by £73k (from £19.702m to £19.629m) whilst creditors falling due in over one year have increased by £78k (from £166k to £244k).

 

Stock and trade creditors have both decreased (by 13.44% and 29.29% respectively) but trade debtors have increased by 5.78%.

Principal risks and uncertainties

Cash remains tightly controlled and it is pleasing to see a healthy balance of £10.357m (2023 - £15.571m) which enables the group to honour its commitments and reinvest in the business. This is despite making Dividend payments of £4.978m (2023 - £3.690m).

 

We continue to enjoy considerable headroom in borrowing facilities. We are therefore well positioned to maintain excellent supplier relationships and capitalise on any opportunities that may arise.

 

2024 was an excellent year and the group is well diversified trading in markets where demand is going to remain strong. 2025 is likely to be a more challenging because of increased competition and a unpredictable economic backdrop but we remain confident of further prosperity.

 

This will be achieved because of our:

 

 

    - 38 Year Track Record

    - We are independent and privately owned

    - We are fully accredited and compliant

    - In-house specialist divisions

    - Industry specialists

    - Outstanding staff retention

    - Global footprint and global buying power

    - Innovative and “Can Do" attitude

    - Long term trading partnerships with our suppliers who are all market leaders

    - Continued investment in the latest IT products to support the business

    - Financial strength and headroom in facilities

    - Credit worthiness

R & M ELECTRICAL GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Key performance indicators

The key financial performance indicators that management and directors use to monitor the performance of the group are turnover and profitability, which are commented on above. The key non-financial performance indicators used to monitor the group's performance are:

 

Operational Performance

Quality Assurance

Health and Safety

Environmental Impact

Workplace Well-being

Training and Development

Management and directors have monitored these KPIs throughout the year and are satisfied with the performance against them.

R & M ELECTRICAL GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Other performance indicators

The group's principal financial instruments are cash, trade debtors and trade creditors.

 

The group continues to manage its cash and borrowing requirements centrally to minimise interest expenses whilst ensuring that the group has sufficient liquid resources to meet the operational needs of the business.

 

This includes the use of invoice discounting as detailed in Note 18.

 

The group controls its exposure to credit risks by regularly reviewing customers' accounts and limits and by only granting terms to those whom are credit worthy. Credit reference agencies are used, and credit insurance is used to insure debts.

 

The group's foreign currency exposure arises from the export of goods. The group is not that dependent on sales from Europe. The group naturally hedge against currency fluctuations by buying and selling in the same currency and will look to take forward option contracts when this is not possible.

 

The market is very competitive, and the group is committed to maintaining its competitive pricing position and keeping the very high standards of customer service. The group also continues to build upon its strong relationships with its suppliers.

 

The group has continued to ensure that our operational costs remain at a sustainable level whilst not affecting our ability to service our customers. We believe that by taking these measures we are in a lean position to be able to react to any additional changes in the marketplace.

Employee involvement

We continue to invest in human resources, health and safety and our quality departments to satisfy legislation and protect our employees. The group has good employee retention and the risk of losing key employees is reduced by offering good remuneration, training and a pleasant working environment.

 

The Board appreciates that the staff are key to the continued success of the group. It is the policy of the group to encourage and develop all members of staff to realise their maximum potential. Wherever possible, vacancies are filled from within the group and adequate opportunities for internal promotion are created.

 

The group supports the principle of equal opportunities in employment and opposes all forms of unlawful or unfair discrimination on the grounds of race, age, nationality, religion, ethnic or national origin, sexual orientation, gender, or gender reassignment, marital status or disability. It is also the policy of the group, where possible, to consider disabled persons in their application for employment with the group and to protect the interests of existing members of the staff who are disabled.

Environmental matters

We remain resolute in our commitment to the environment, focusing on continual reduction of our environmental footprint. Our ISO 14001:2015 certification underscores this commitment, serving as both a standard for current practices and a foundation for ongoing improvements. By embedding sustainability across all aspects of our operations, we acknowledge the environmental impact of our decisions and strive to make responsible choices at every level for the group. Our efforts include minimising waste generation, promoting recycling, reducing energy consumption, and lowering harmful emissions.

Carbon Footprint Reduction

We have made notable progress in reducing our carbon footprint by making strategic decisions such as relocating to environmentally friendly facilities. Our new headquarters feature energy-efficient LED lighting, low-energy appliances, and electric vehicle (EV) charging stations, enhancing sustainability while improving employee comfort.

Additionally, our new branch in Dunfermline, Scotland, was strategically established to enhance service to regional clients while minimising logistics-related emissions. Our Southampton warehouse is also set for a major upgrade and relocation, with completion targeted for 2025. These initiatives are part of our broader efforts to maximise energy efficiency and support our long-term environmental goals.

R & M ELECTRICAL GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

Environmental Compliance and Certifications

We are proud to have achieved ISO 14001 certification for our new Head Office, as well as our Projects and Exports divisions, reinforcing our commitment to environmental management. All our branches adhere to these principles, and we plan to extend this certification to our Aberdeen and Southampton Central sites.

As part of our ongoing environmental commitment, several of our branches have completed ESOS (Energy Savings Opportunity Scheme) assessments to identify and implement energy-saving measures in line with regulatory requirements. Initiatives such as LED lighting installation, HVAC system optimisation, and enhanced fleet fuel efficiency have been introduced, which we believe will lead to significant reductions in emissions and operational costs. Our ESOS action plan has been submitted accordingly.

Waste Management and Recycling

In line with our environmental dedication, we partner with trusted waste management providers to ensure that all waste is responsibly recycled, repurposed, or disposed of in accordance with industry best practices. Our Neyland and Swansea branches in Wales fully comply with local waste separation regulations, while our operations in England are proactively aligned with the 2025 Separation of Waste Regulations, positioning us ahead of regulatory changes.

To further minimise our environmental impact, we have adopted digital forms and inspection tools, reducing our reliance on paper. Additionally, we retain original manufacturer packaging and reuse materials where appropriate, helping to close the waste loop without compromising quality.

Supplier Evaluation and Sustainability Alignment

We are committed to working with suppliers who share our values, ensuring they adhere to the same sustainability and ethical standards we uphold. In 2024, we implemented a process to verify that our suppliers are authorised to sell the products they provide, confirming this through direct checks with manufacturers. This approach not only strengthens supply chain integrity but also supports our environmental goals by promoting responsible sourcing and reducing the risk of waste from counterfeit or non-compliant materials.

Looking ahead, we are enhancing our supplier evaluation process to assess the risks associated with each supplier. This proactive approach will not only ensure compliance with regulations but also allow us to better manage potential risks. Our commitment to sustainability and ethical practices will continue to evolve, ensuring high standards across every aspect of our supply chain.

Sustainable Products and Solutions

We are proud to have received the Collaborator Award at KBR’s Sustainable Supply Chain Supplier Awards 2024. This recognition highlights our leadership in innovation and environmental stewardship.

In addition to our sustainable products, we offer value-added services such as pre-assembly, cable cutting, hazardous area compliance, and our Build-a-Bracket tool, each designed to minimise waste and reduce on-site work. Our client portal provides real-time project tracking and sustainability insights, reinforcing our dedication to transparency, efficiency, and sustainable practices.

These updates, along with further details on our environmental initiatives, can be found in the Directors' Report, which offers a comprehensive overview of our ongoing commitment to reducing our environmental impact.

Further details of the new reporting for this period on emissions and energy consumption is given in the Directors' Report.

R & M ELECTRICAL GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

Section 172 Statement

Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders and other matters in their decision making.

 

The Directors continue to have regard to the interests of the group's employees and other stakeholders, the impact of its activities on the community, the environment, and the group's reputation for good business conduct, when making decisions.

 

The Directors are fully aware of their responsibilities to promote the success of the group in accordance with section 172 of the Companies Act 2006, and to act in good faith and fairly.

 

The Board regularly reviews the group’s principal stakeholders and how it engages with them. This is achieved through information provided by management and by direct engagement with stakeholders themselves.

We aim to work responsibly with our stakeholders, including suppliers. The Board has recently reviewed its anti-corruption and anti-bribery, equal opportunities, and whistleblowing policies.

On behalf of the board

Mr T Coomer
Director
13 May 2025
R & M ELECTRICAL GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -

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

Results and dividends

The Profit for the period, after Taxation, amounted to £6,418,428 (2023 - £6,446,713)

 

Total Dividends of £4,978,007 (2023: £3,690,450) were paid in the year.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr T Coomer
Mr W Crook
Mr B Reufels
Mr D A Robinson
Mr P Stiehl
Mr N Robinson
(Appointed 9 April 2024)
Qualifying third party indemnity provisions

Qualifying third party indemnity provisions (as defined in section 234(2) of the Companies Act 2006) are in force for the benefit of the directors and former directors who held office during the year ended 31 December 2024.

Financial instruments

The group operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the group’s activities.

 

The group’s principal financial instruments include derivative financial instruments, the purpose of which is to manage currency risks and interest rate risks arising from the group’s activities, and bank overdrafts, loans and corporate bonds, the main purpose of which is to raise finance for the group’s operations. In addition, the group has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations. Derivative transactions which the group enters into principally comprise forward exchange contracts. In accordance with group’s treasury policy, derivative instruments are not entered into for speculative purposes.

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

The group’s principal foreign currency exposures arise from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

R & M ELECTRICAL GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Auditor

The auditor, Fiander Tovell Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Energy and carbon report

As required by The Companies (Directors’ Report) and Limited Liability Partnership (Energy and Carbon Report) Regulations 2018, the directors have collated the required disclosure information below. This includes information related only to the members of the group which are both defined as large companies and consume more than 40,000 kWh of energy annually. The only member of the group which meets this criteria is R & M Electrical Group Limited who have prepared financial statements for the year ended 31 December 2024.

 

In the year to 31 December 2024, the Group's UK Energy use was as follows:

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
124,939
176,701
- Electricity purchased
346,852
303,428
- Fuel consumed for transport
847,397
1,040,093
1,319,188
1,520,222
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
27.00
38.00
- Fuel consumed for owned transport
210.00
257.00
237.00
295.00
Scope 2 - indirect emissions
- Electricity purchased
66.00
58.00
Total gross emissions
303.00
353.00
R & M ELECTRICAL GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

Intensity metrics for emissions for the period were 3.79 (2023 - 4.42) Tonnes per total £m turnover and 1.51 (2023 - 1.81) Tonnes per employee. The figures were calculated from usage data for electricity, gas and fuel with use of government fuel conversion factors where required.

Measures taken to improve energy efficiency

In the period, the group implemented several energy efficiency measures including changing our head office lighting to LED, installation of light reactive lighting and changing a significant proportion of our fleet to hybrid motor vehicles.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

 

 

Matters covered in the strategic report

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of engagement with suppliers.

R & M ELECTRICAL GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
On behalf of the board
Mr T Coomer
Director
13 May 2025
R & M ELECTRICAL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF R & M ELECTRICAL GROUP LIMITED
- 10 -
Opinion

We have audited the financial statements of R & M Electrical Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

R & M ELECTRICAL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R & M ELECTRICAL GROUP LIMITED
- 11 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

R & M ELECTRICAL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF R & M ELECTRICAL GROUP LIMITED
- 12 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Andrew Jay FCA FCCA
For and on behalf of
14 May 2025
Fiander Tovell Limited
Chartered Accountants
Statutory Auditor
Stag Gates House
63/64 The Avenue
Southampton
Hampshire
SO17 1XS
R & M ELECTRICAL GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
2024
2023
as restated
Notes
£
£
Turnover
3
153,140,665
143,344,044
Cost of sales
(120,329,301)
(112,779,722)
Gross profit
32,811,364
30,564,322
Distribution costs
(1,270,400)
(1,240,709)
Administrative expenses
(23,249,605)
(20,753,352)
Other operating income
251,620
62,527
Operating profit
4
8,542,979
8,632,788
Share of profits of joint ventures
315,084
271,776
Interest receivable and similar income
8
88,442
48,412
Interest payable and similar expenses
9
(720,337)
(620,180)
Profit before taxation
8,226,168
8,332,796
Tax on profit
10
(1,807,106)
(1,886,083)
Profit for the financial year
29
6,419,062
6,446,713
Profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

R & M ELECTRICAL GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2024
2023
£
£
Profit for the year
6,419,062
6,446,713
Other comprehensive income
Currency translation loss taken to retained earnings
(17,559)
(93,356)
Cash flow hedges (loss)/gain arising in the year
(305,023)
704,839
Tax relating to other comprehensive income
62,392
(176,210)
Other comprehensive income for the year
(260,190)
435,273
Total comprehensive income for the year
6,158,872
6,881,986
Total comprehensive income for the year is all attributable to the owners of the parent company.
R & M ELECTRICAL GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 15 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
14,033
-
0
Tangible assets
13
2,056,985
958,862
Investments
14
1,249,141
934,057
3,320,159
1,892,919
Current assets
Stocks
18
16,177,462
18,689,457
Debtors
19
23,294,238
22,894,208
Cash at bank and in hand
10,357,295
15,571,341
49,828,995
57,155,006
Creditors: amounts falling due within one year
20
(30,200,486)
(37,453,309)
Net current assets
19,628,509
19,701,697
Total assets less current liabilities
22,948,668
21,594,616
Creditors: amounts falling due after more than one year
21
(243,690)
(165,996)
Provisions for liabilities
Deferred tax liability
23
326,716
231,223
(326,716)
(231,223)
Net assets
22,378,262
21,197,397
Capital and reserves
Called up share capital
25
8,201
8,201
Share premium account
26
198,528
198,528
Hedging reserve
27
(58,815)
183,816
Capital redemption reserve
28
5,439
5,439
Profit and loss reserves
29
22,224,909
20,801,413
Total equity
22,378,262
21,197,397
The financial statements were approved by the board of directors and authorised for issue on 13 May 2025 and are signed on its behalf by:
13 May 2025
Mr T Coomer
Director
Company registration number 02218034 (England and Wales)
R & M ELECTRICAL GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 16 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
14,033
-
0
Tangible assets
13
1,584,871
611,446
Investments
14
1,891,947
1,891,947
3,490,851
2,503,393
Current assets
Stocks
18
12,892,865
14,560,507
Debtors
19
19,939,609
19,663,564
Cash at bank and in hand
5,923,070
9,932,339
38,755,544
44,156,410
Creditors: amounts falling due within one year
20
(24,891,580)
(31,107,482)
Net current assets
13,863,964
13,048,928
Total assets less current liabilities
17,354,815
15,552,321
Creditors: amounts falling due after more than one year
21
(194,758)
(128,772)
Provisions for liabilities
Deferred tax liability
23
271,145
176,453
(271,145)
(176,453)
Net assets
16,888,912
15,247,096
Capital and reserves
Called up share capital
25
8,201
8,201
Share premium account
26
198,528
198,528
Hedging reserve
27
(58,815)
183,816
Capital redemption reserve
28
5,439
5,439
Profit and loss reserves
29
16,735,559
14,851,112
Total equity
16,888,912
15,247,096
R & M ELECTRICAL GROUP LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
31 December 2024
- 17 -

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £6,862,454 (2023 - £4,341,500 profit).

The financial statements were approved by the board of directors and authorised for issue on 13 May 2025 and are signed on its behalf by:
13 May 2025
Mr T Coomer
Director
Company registration number 02218034 (England and Wales)
R & M ELECTRICAL GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
Share capital
Share premium account
Hedging reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
As restated for the period ended 31 December 2023:
Balance at 1 January 2023
8,201
198,528
(344,813)
5,439
18,138,506
18,005,861
Year ended 31 December 2023:
Profit for the year
-
-
-
-
6,446,713
6,446,713
Other comprehensive income:
Currency translation differences
-
-
-
-
(93,356)
(93,356)
Cash flow hedges gains
-
-
704,839
-
-
704,839
Tax relating to other comprehensive income
-
-
(176,210)
-
-
0
(176,210)
Total comprehensive income
-
-
528,629
-
6,353,357
6,881,986
Dividends
11
-
-
-
-
(3,690,450)
(3,690,450)
Balance at 31 December 2023
8,201
198,528
183,816
5,439
20,801,413
21,197,397
Year ended 31 December 2024:
Profit for the year
-
-
-
-
6,419,062
6,419,062
Other comprehensive income:
Currency translation differences
-
-
-
-
(17,559)
(17,559)
Cash flow hedges losses
-
-
(305,023)
-
-
(305,023)
Tax relating to other comprehensive income
-
-
62,392
-
-
0
62,392
Total comprehensive income
-
-
(242,631)
-
6,401,503
6,158,872
Dividends
11
-
-
-
-
(4,978,007)
(4,978,007)
Balance at 31 December 2024
8,201
198,528
(58,815)
5,439
22,224,909
22,378,262
R & M ELECTRICAL GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
Share capital
Share premium account
Hedging reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
As restated for the period ended 31 December 2023:
Balance at 1 January 2023
8,201
198,528
(344,813)
5,439
14,200,062
14,067,417
Year ended 31 December 2023:
Profit for the year
-
-
-
-
4,341,500
4,341,500
Other comprehensive income:
Cash flow hedges gains
-
-
704,839
-
-
704,839
Tax relating to other comprehensive income
-
-
(176,210)
-
-
0
(176,210)
Total comprehensive income
-
-
528,629
-
4,341,500
4,870,129
Dividends
11
-
-
-
-
(3,690,450)
(3,690,450)
Balance at 31 December 2023
8,201
198,528
183,816
5,439
14,851,112
15,247,096
Year ended 31 December 2024:
Profit for the year
-
-
-
-
6,862,454
6,862,454
Other comprehensive income:
Cash flow hedges gains
-
-
(305,023)
-
-
(305,023)
Tax relating to other comprehensive income
-
-
62,392
-
-
0
62,392
Total comprehensive income
-
-
(242,631)
-
6,862,454
6,619,823
Dividends
11
-
-
-
-
(4,978,007)
(4,978,007)
Balance at 31 December 2024
8,201
198,528
(58,815)
5,439
16,735,559
16,888,912
R & M ELECTRICAL GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
35
4,634,198
14,920,623
Interest paid
(720,337)
(620,180)
Income taxes paid
(2,519,730)
(2,152,850)
Net cash inflow from operating activities
1,394,131
12,147,593
Investing activities
Purchase of intangible assets
(15,280)
-
Purchase of tangible fixed assets
(1,358,212)
(269,342)
Proceeds from disposal of tangible fixed assets
13,348
42,686
Interest received
88,442
48,412
Net cash used in investing activities
(1,271,702)
(178,244)
Financing activities
Proceeds from borrowings
6,968
4,471
Payment of finance leases obligations
(42,854)
(84,341)
Dividends paid to equity shareholders
(4,978,007)
(3,690,450)
Net cash used in financing activities
(5,013,893)
(3,770,320)
Net (decrease)/increase in cash and cash equivalents
(4,891,464)
8,199,029
Cash and cash equivalents at beginning of year
15,571,341
6,760,829
Effect of foreign exchange rates
(322,582)
611,483
Cash and cash equivalents at end of year
10,357,295
15,571,341
R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
1
Accounting policies
Company information

R & M Electrical Group Limited (“the company”) is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is Turnpike House, Tollgate Business Park, Chandlers Ford, Hampshire, SO53 3TG.

 

The group consists of R & M Electrical Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company R & M Electrical Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

The group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategic Report. In addition, the Strategic Report includes the group's objectives, policies, and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its exposures to the credit risk and liquidity risk.

 

The group has considerable financial resources together with long term relationships with customers and suppliers across different geographic areas and industries. As a consequence, the directors believe that the group is well placed and diversified to manage its business risks.

 

The group and its parent company (International Electrical Investments Limited) has the financial support of its Shareholders who have injected a substantial working Capital Loan. They also enjoy the support of its Bankers with various facilities in place and invoice discounting arrangements in subsidiary companies.

 

Since the year end the group has remained extremely profitable and has continued to operate comfortably within its current bank facilities with plenty of headroom.

 

R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 23 -

In addition, the Directors have produced detailed going concern forecasts for the group covering the period to 30 June 2026. These models show continued strong Turnover which can be justified by actual trading to date in 2025 and a back-order book at record levels compared with historical trends.

 

These Forecasts indicate that the facilities in place provide sufficient headroom when compared to the cash requirements of the group for the period twelve months from approval of the financial statements.

 

Therefore, the Directors have concluded it is appropriate for the Financial Statements to be prepared on a Going Concern basis as they remain confident that the group will continue to trade successfully. Whilst the World economy is entering a very uncertain period it is reassuring to know that R & M Electrical Group Ltd operates in markets that are buoyant because of the world’s problems and no downturn in demand is foreseen. They also have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.

1.5
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sales of goods

Turnover from the sale of goods is recognised when all the of the following conditions are satisfied:

Interest income

Interest income is recognised in the Consolidated Statement of Comprehensive Income using the effective interest method.

1.6
Intangible fixed assets - goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and acquirer's interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

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

Software
Straight line over 3 years
Customer relationships
Straight line over 5 years
R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 24 -
1.8
Tangible fixed assets

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

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

Leasehold improvements
Over the length of the lease
Plant and equipment
12.5% straight line
Fixtures and fittings
12.5% straight line
Computers
33% straight line
Motor vehicles
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 25 -
1.10
Impairment of fixed assets

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

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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

 

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

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 26 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 27 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

Hedge accounting

The group designates certain hedging instruments to mitigate their exposure to movements in foreign exchange rates. These include forward contracts and time options which are designated and qualify as cash flow hedges.

 

At the inception of the hedge relationship, the company documents the relationship between the hedging instrument and the hedged item along with risk management objectives and strategy for undertaking various hedge transactions. At the inception of the hedge and on an ongoing basis, the company documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item.

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income.

 

The gain or loss relating to the ineffective portion is recognised immediately in profit or loss, and is included in the 'other gains and losses' line in this item.

 

Amounts previously recognised in other comprehensive income and accumulated in equity are reclassified to profit or loss in the periods when the hedged item is recognised in the profit or loss in the same line as of the income statement as the recognised hedged item. However when the forecast transaction that is hedged results in the recognition of a non-financial asset or liability, the gains and losses previously accumulated in equity are transferred from equity and included in the initial measurement of the cost of the asset or liability concerned.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 28 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

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

1.18
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 

On consolidation, the results of overseas operations are translated into sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at the opening rate and the results of overseas operations at the actual rate are recognised in other comprehensive income.

R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

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

Operating and finance lease determination

Management determine whether leases entered into by the group either as a lessor or lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

Fixed asset impairment

Management determine whether there are indicators of impairment of the group's tangible and intangible assets, including goodwill and the group's investments. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Stock provisioning

Management have considered whether there are any indications that stock may have suffered an impairment at the reporting date as required by FRS102. Management review the ageing of individual stock items held at the year end and assign a proportionate level of provision against those stock lines that are considered aged.

Bad debt provisioning

Management have considered whether there are any indications that trade debtors have suffered an impairment at the reporting date as required by FRS102. Management regularly review those balances that are overdue based upon the credit terms in place and provide against those where a material uncertainty exists that the amounts may not be recovered.

Impairment of loan due from associate

Management have considered whether there are any indications that loans due from associates (included in other debtors) may have suffered an impairment at the reporting date as required by FRS102. Management review the recoverability of loans receivable on a regular basis taking into account the expected future performance of the associate and the likelihood of repayment in the next 12 months. Provisions are made where material uncertainty exists that amounts may not be recovered.

 

Property dilapidations and onerous leases

Under certain operating leases for land and buildings, the group is obligated to make repairs of dilapidations to the leased property upon the expiry of the lease. The group charges amounts to profit and loss so that, by the end of the lease, a total provision is accrued that is estimated to be equal to the future costs of those dilapidations obligations.

 

Where repairs are made part way through the lease that will reduce the estimated costs of dilapidation obligations at the expiry of the lease, the costs of those reports are charged against the dilapidations provision.

 

Where leased properties are committed to be vacated, the group provides for the best estimate of the future unreconcilable costs of its obligations under those leases.

R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 30 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Intangible fixed assets

Determining whether the acquired intangible fixed assets are identifiable in terms of being separable and arise from contractual or legal rights has limited judgement as the intangibles concerned mainly relate to separate customer contacts/ relationships. Customer relationships are amortised over the expected life of the underlying contract.

Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Investments

Impairment reviews have been undertaken in the current year to assess the carrying value of the investments in subsidiaries and joint ventures. Judgement which was limited given the prudent discount factor, growth rate and sensitivity analysis used in the review showed there was significant headroom before an impairment was necessary.

3
Turnover and other revenue

The whole of the turnover is attributable to the principal activity of the group.

2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
71,502,952
76,121,037
Europe
17,338,947
23,531,321
Rest of World
64,298,766
43,691,686
153,140,665
143,344,044
2024
2023
£
£
Other revenue
Interest income
88,442
48,412

In the opinion of the directors, the disclosure of separate segmental information in accordance with FRS 102 would be prejudicial to the interests of the group.

R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
222,423
413,918
Depreciation of owned tangible fixed assets
252,018
151,165
Depreciation of tangible fixed assets held under finance leases
143,394
95,952
Loss/(profit) on disposal of tangible fixed assets
25,638
(6,035)
Amortisation of intangible assets
1,247
9,325
Stocks impairment losses recognised or reversed
902,242
658,663
Operating lease charges
1,962,513
1,841,367
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
56,737
54,554
Audit of the financial statements of the company's subsidiaries
21,000
19,996
77,737
74,550
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration
61
57
43
40
Distribution
226
213
158
146
Total
287
270
201
186

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
12,781,991
12,381,410
9,722,809
9,004,570
Social security costs
1,306,081
1,219,241
824,109
757,354
Pension costs
362,555
348,121
306,378
286,143
14,450,627
13,948,772
10,853,296
10,048,067
R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,099,195
929,475
Company pension contributions to defined contribution schemes
28,530
25,856
1,127,725
955,331

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
438,744
430,931
Company pension contributions to defined contribution schemes
10,000
10,776
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
27,119
48,412
Other interest income
61,323
-
Total income
88,442
48,412
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
955
488
Interest on invoice finance arrangements
378,015
383,683
Interest on finance leases and hire purchase contracts
27,193
18,612
Other interest
314,174
217,397
Total finance costs
720,337
620,180
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,856,820
1,820,691
Adjustments in respect of prior periods
(145,206)
(25,083)
Other taxes
-
0
2
Total current tax
1,711,614
1,795,610
R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Taxation
2024
2023
£
£
(Continued)
- 33 -
Deferred tax
Origination and reversal of timing differences
95,492
90,473
Total tax charge
1,807,106
1,886,083

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

2024
2023
£
£
Profit before taxation
8,226,168
8,332,796
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
2,056,542
1,959,874
Tax effect of expenses that are not deductible in determining taxable profit
76,598
139,262
Tax effect of income not taxable in determining taxable profit
-
0
(102,400)
Adjustments in respect of prior years
(145,206)
(25,083)
Effect of change in corporation tax rate
9,453
-
Group relief
-
0
(83,038)
Permanent capital allowances in excess of depreciation
-
0
(2,532)
Other non-reversing timing differences
(117,300)
-
0
Foreign tax
(72,981)
-
0
Taxation charge
1,807,106
1,886,083

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of financial instruments treated as cash flow hedges
(62,392)
176,210
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
4,978,007
3,690,450
R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
12
Intangible fixed assets
Group
Goodwill
Software
Customer relationships
Total
£
£
£
£
Cost
At 1 January 2024
74,125
88,158
559,909
722,192
Additions
-
0
15,280
-
0
15,280
Disposals
-
0
(35,707)
-
0
(35,707)
At 31 December 2024
74,125
67,731
559,909
701,765
Amortisation and impairment
At 1 January 2024
74,125
88,158
559,909
722,192
Amortisation charged for the year
-
0
1,247
-
0
1,247
Disposals
-
0
(35,707)
-
0
(35,707)
At 31 December 2024
74,125
53,698
559,909
687,732
Carrying amount
At 31 December 2024
-
0
14,033
-
0
14,033
At 31 December 2023
-
0
-
0
-
0
-
0
Company
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2024
74,125
88,158
162,283
Additions
-
0
15,280
15,280
Disposals
-
0
(35,707)
(35,707)
At 31 December 2024
74,125
67,731
141,856
Amortisation and impairment
At 1 January 2024
74,125
88,158
162,283
Amortisation charged for the year
-
0
1,247
1,247
Disposals
-
0
(35,707)
(35,707)
At 31 December 2024
74,125
53,698
127,823
Carrying amount
At 31 December 2024
-
0
14,033
14,033
At 31 December 2023
-
0
-
0
-
0
R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 35 -
13
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2024
146,717
367,843
510,773
619,184
705,300
2,349,817
Additions
668,332
237,355
219,476
233,049
174,309
1,532,521
Disposals
(15,791)
(11,408)
(275,059)
(92,473)
(65,108)
(459,839)
At 31 December 2024
799,258
593,790
455,190
759,760
814,501
3,422,499
Depreciation and impairment
At 1 January 2024
68,494
201,054
447,358
475,525
198,524
1,390,955
Depreciation charged in the year
94,533
55,617
36,947
62,491
145,824
395,412
Eliminated in respect of disposals
(6,204)
(9,154)
(267,788)
(93,122)
(44,585)
(420,853)
At 31 December 2024
156,823
247,517
216,517
444,894
299,763
1,365,514
Carrying amount
At 31 December 2024
642,435
346,273
238,673
314,866
514,738
2,056,985
At 31 December 2023
78,223
166,789
63,415
143,659
506,776
958,862
Company
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2024
98,927
262,895
490,115
517,730
364,750
1,734,417
Additions
623,069
136,967
212,004
221,534
90,109
1,283,683
Disposals
(15,791)
(11,389)
(267,587)
(92,473)
(3,623)
(390,863)
At 31 December 2024
706,205
388,473
434,532
646,791
451,236
2,627,237
Depreciation and impairment
At 1 January 2024
47,038
123,509
434,961
412,840
104,623
1,122,971
Depreciation charged in the year
84,765
36,971
34,603
59,205
76,248
291,792
Eliminated in respect of disposals
(6,204)
(9,135)
(260,316)
(93,122)
(3,620)
(372,397)
At 31 December 2024
125,599
151,345
209,248
378,923
177,251
1,042,366
Carrying amount
At 31 December 2024
580,606
237,128
225,284
267,868
273,985
1,584,871
At 31 December 2023
51,889
139,386
55,154
104,890
260,127
611,446
R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
13
Tangible fixed assets
(Continued)
- 36 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
13,486
42,920
13,486
42,920
Fixtures and fittings
181,051
-
0
181,051
-
0
Motor vehicles
438,551
406,559
273,985
260,124
633,088
449,479
468,522
303,044

 

14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
1,891,947
1,891,947
Investments in associates
16
782
782
-
0
-
0
Investments in joint ventures
17
1,248,359
933,275
-
0
-
0
1,249,141
934,057
1,891,947
1,891,947
Movements in fixed asset investments
Group
Shares in associates and joint ventures
£
Cost or valuation
At 1 January 2024
934,057
Share of profits
315,084
At 31 December 2024
1,249,141
Carrying amount
At 31 December 2024
1,249,141
At 31 December 2023
934,057
R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Fixed asset investments
(Continued)
- 37 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
1,891,947
Carrying amount
At 31 December 2024
1,891,947
At 31 December 2023
1,891,947
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
R&M (Fixings & Support) Limited
Turnpike House, Tollgate Business Park, Chandlers Ford, Hampshire, SO53 3TG
Ordinary
100.00
-
R&M Electrical Investments Limited
Turnpike House, Tollgate Business Park, Chandlers Ford, Hampshire, SO53 3TG
Ordinary
100.00
-
R&M Electrical LLP
123 B M.Utemsiov Street, Atyrou, 06005, Kazakhstan
Ordinary
100.00
-
R&M Lumen Electrical Inc
12099 NW 98th Avenue, Hialeah Gardens, FL 33018, USA
Ordinary
100.00
-
R&M Electrical (Exports) Limited
Turnpike House, Tollgate Business Park, Chandlers Ford, Hampshire, SO53 3TG
Ordinary
100.00
-
R&M Electrical LLC
5th Floor, Hagani Business Centre, 1 Hagani Street, Baku, AZE 1010, Azerbaijan
Ordinary
100.00
-
R&M Cables Limited
Turnpike House, Tollgate Business Park, Chandlers Ford, Hampshire, SO53 3TG
Ordinary
100.00
-
R&M Electrical (Oxford) Limited
Turnpike House, Tollgate Business Park, Chandlers Ford, Hampshire, SO53 3TG
Ordinary
100.00
-
R&M Europe B.V.
Industrieweg 69, Middenmeer, The Netherlands 1775 PV
Ordinary
0
100.00
R&M Electrical Group (Trinidad) Ltd
5-7 Sweet Briar Road, St Clair, Newtown, 19013, Trinidad
Ordinary
100.00
-
R&M Electrical India PVT Ltd
5th Floor, A-501L, Jaswanti Allied Business Centre, Mumbai-400064, India
Ordinary
0.01
99.99
16
Associates

Details of associates at 31 December 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
R&M SN Electric FZCO
TPOFCBOO12, Jebel Ali, Dubai, Dubai, United Arab Emerates, PO Box 282144
Ordinary
50
Siraj Naybur
Abbasiya, Basrah, Iraq
Ordinary
50
R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 38 -
17
Joint ventures

Details of joint ventures at 31 December 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
R&M Wholesale Electric LLC
PO Box 282566, m-03, AI Joud Centre, Al Quoz 1, Dubai, UAE
Ordinary
50.00
18
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
16,177,462
18,689,457
12,892,865
14,560,507

In the Group, an impairment charge of £902,242 (2023: £658,663) was recognised in cost of sales during the year.

 

In the Company, an impairment charge of £478,060 (2023: £646,335) was recognised in cost of sales during the year.

19
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
21,362,312
20,195,867
15,944,639
14,801,087
Amounts owed by group undertakings
-
304,541
2,120,294
2,587,451
Other debtors
901,076
1,591,832
1,094,848
1,770,376
Prepayments and accrued income
1,030,850
801,968
779,828
504,650
23,294,238
22,894,208
19,939,609
19,663,564

Amounts owed by Group companies are unsecured, interest free and repayable on demand.

The Group operates an invoice discounting arrangement, securities are held over this via a fixed floating charge on the assets of R & M Electrical Group and R&M (Fixings & Supports) Ltd. The main terms of the agreement are as follows:

 

The Group acting as trustees for the invoice discounter, collects the remittances and banks them in a separate bank account which is maintained by the invoice discounter. All amounts held in this account are shown as a liability within creditors: amounts falling due within one year.

 

Invoice discounting charges recognised during the year were:

 

Administration charges: £20,587 (2023 - £25,008).

 

Discounting charges: £357,428 (2023 - £346,403).

 

R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 39 -
20
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases and hire purchase contracts
22
235,812
182,051
182,640
133,387
Other borrowings
67,888
60,920
67,888
60,920
Trade creditors
15,838,753
22,400,726
12,391,301
18,727,517
Amounts owed to group undertakings
2,026,223
1,200,344
2,110,151
1,274,181
Corporation tax payable
47,900
918,409
387,650
667,480
Other taxation and social security
550,813
370,310
219,085
208,414
Other creditors
6,497,172
7,517,453
5,544,838
6,037,243
Accruals and deferred income
4,935,925
4,803,096
3,988,027
3,998,340
30,200,486
37,453,309
24,891,580
31,107,482

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

21
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance lease and hire purchase contracts
22
243,690
165,996
194,758
128,772
22
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
235,812
182,051
182,640
133,387
In two to five years
243,690
165,996
194,758
128,772
479,502
348,047
377,398
262,159

Obligations under hire purchase and finance leases are secured on the assets concerned.

R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 40 -
23
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
379,798
168,011
Deferred tax on hedging transaction
14,704
(183,816)
Other short term timing differences
(67,786)
247,028
326,716
231,223
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
324,227
113,241
Deferred tax on hedging transaction
14,704
(183,816)
Other short term timing differences
(67,786)
247,028
271,145
176,453
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
231,223
176,453
Charge to profit or loss
48,763
50,418
Charge to other comprehensive income
60,658
60,658
Other
(13,928)
(16,384)
Liability at 31 December 2024
326,716
271,145
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
362,555
348,121

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
24
Retirement benefit schemes
(Continued)
- 41 -

Contributions totalling £70.011 (2023 - £60,920) were payable to the fund at the reporting date and are included in creditors.

25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
5,200
5,200
5,200
5,200
Ordinary B of £1 each
613
613
613
613
Ordinary C of £1 each
2,388
2,388
2,388
2,388
8,201
8,201
8,201
8,201

The share classes rank pari passu.

26
Share premium account
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
198,528
198,528
198,528
198,528

The share premium reserve represents the amounts received upon the issue of share capital over the nominal value of the shares.

27
Hedging reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
183,816
(344,813)
183,816
(344,813)
Gains and losses on cash flow hedges
(305,023)
704,839
(305,023)
704,839
Tax on gains and losses on cash flow hedges
62,392
(176,210)
62,392
(176,210)
At the end of the year
(58,815)
183,816
(58,815)
183,816

The Group have purchased forward foreign currency contracts to hedge against unfavourable movements in foreign exchange rates. The hedging reserve shows the fair value of the futures at the year end date. Movements in the reserve are recognised via the other comprehensive income statement.

R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 42 -
28
Capital redemption reserve
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning and end of the year
5,439
5,439
5,439
5,439

The capital redemption reserve arose from the repurchase of the company's own shares.

29
Profit and loss reserves
Group
Company
2024
2023
2024
2023
as restated
as restated
£
£
£
£
At the beginning of the year
20,801,413
18,138,506
14,851,112
14,200,062
Profit for the year
6,419,062
6,446,713
6,862,454
4,341,500
Dividends
(4,978,007)
(3,690,450)
(4,978,007)
(3,690,450)
Currency translation differences
(17,559)
(93,356)
-
0
-
0
At the end of the year
22,224,909
20,801,413
16,735,559
14,851,112

Profit and loss reserves represents the cumulative profits and losses made by the Group since its inception.

30
Financial commitments, guarantees and contingent liabilities

The ultimate controlling party, Niedax Galvanik GmbH and International Electrical Investments Limited entered into a Composite Group Guarantee and Debenture on 23 December 2021. The assets of the Group are secured by fixed and floating charges.

 

The company has set up a number of bonds via their bank, at 31 December 2024 the potential liability in relation to these bonds totalled £981,868 (2023 - £545,800), the likelihood of these bonds becoming payable is extremely low.

31
Operating lease commitments
Lessee

At the reporting end date the Group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
1,248,436
977,824
851,325
688,334
Between two and five years
3,069,383
1,514,310
2,523,409
1,329,007
In over five years
1,294,225
425,513
1,239,520
425,513
5,612,044
2,917,647
4,614,254
2,442,854
R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 43 -
32
Events after the reporting date

There were no events after the reporting date that need to be disclosed within the accounts.

33
Related party transactions

The Group has taken advantage of the provision of FRS102 section 33 to not disclose transactions with other wholly owned members of the Group.

 

The Group transacted with the following related parties in the year:

 

Niedax GmbH & Co

During the year, the Group traded with Niedax GmbH & Co, a fellow subsidiary of the ultimate controlling party.

 

The group made purchases of £289,186 (2023: £261,596) during the year, and owed a balance of £289,186 (2023: £209,940) as at 31 December 2024.

 

Niedax CMS Ltd

During the year, the group traded with Niedax CMS Ltd, a fellow subsidiary of the ultimate controlling party.

 

The group made purchases of £60,408 (2023: £383) during the year, and owed a balance of £22,242 (2023: £386) as at 31 December 2024, in respect of these transactions.

 

Siraj Naybur

During the year, the group traded with Siraj Naybur, an associate.

 

The group made sales of £15,626 (2023: £250,442) during the year, and was due a balance of £8,487 (2023: £161,420) as at 31 December 2024.

 

The group made purchases of £44,532 (2023: £nil) during the year, at the balance sheet date, the group owed £44,532 (2023: £nil) in respect of these transactions.

 

R&M SN Electrical FZCO

During the year, the group traded with R&M SN Electrical FZCO, an associate.

 

The group made purchases of £1,063,549 (2023: £269,210) during the year, and made sales of £51,382 (2023: £126,953). As at 31 December 2024, the group owed a balance of £959,673 (2023: were due a balance of £114,794) in respect of these transactions.

 

Philip Grahame International Limited

During the year, the group traded with Philip Grahame International Limited, in which the director Bruno Reufels is also a director.

 

The group made purchases of £516 (2023: £24,628) and made sales of £1,112 (2023: £Nil) during the year, and owed a balance of £nil (2023: £29,554) as at 31 December 2024.

R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
33
Related party transactions
(Continued)
- 44 -

Niedax Kleinhuis B.V

During the year, the group traded with Niedax Kleinhuis B.V, a fellow group subsidiary of the ultimate controlling party.

 

The group made sales of £16,992 (2023: £nil) during the year. There was no balance due to the group at the year end in respect of these transactions.

 

Niedax USA Holdings Inc

During the year, the group traded with Niedax USA Holdings Limited, a fellow group subsidiary of the ultimate controlling party.

 

The group made purchases of £1,187 (2023: £nil) during the year. There was no balance due to the group at the year end in respect of these transactions.

 

Niedax Ebo Schwiez AG

During the year, the group traded with Niedax Ebo Schwiez AG, a fellow group subsidiary of the ultimate controlling party.

 

The group made purchases of £3,890 (2023: £nil) during the year. There was no balance due to the group at the year end in respect of these transactions.

 

Robinson Family Holdings Limited

The group was charged rent by Robinson Family Holdings Limited, a company connected by the directors of R & M Electrical Group Limited.

 

The group was charged rent of £183,500 (2023: 192,000) from Robinson Family Holdings Limited. At the balance sheet date there was no balance due by the group in respect of the rent.

34
Controlling party

The immediate parent company is International Electrical Investments Limited, a company incorporated in the United Kingdom.

The directors consider the ultimate controlling party to be Niedax Galvanik GmbH, a company incorporated in Germany. This is the largest group which the results of the company are consolidated in.

 

Copies of both the consolidated financial statements noted above may be obtained from the registered office, Turnpike House, Tollgate Business Park, Chandlers Ford, Hampshire, SO53 3TG

R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 45 -
35
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
6,419,062
6,446,713
Adjustments for:
Share of results of associates and joint ventures
(315,084)
(271,776)
Taxation charged
1,807,106
1,886,083
Finance costs
720,337
620,180
Investment income
(88,442)
(48,412)
Loss/(gain) on disposal of tangible fixed assets
25,638
(6,035)
Amortisation and impairment of intangible assets
1,247
9,325
Depreciation and impairment of tangible fixed assets
395,412
247,117
Movements in working capital:
Decrease/(increase) in stocks
2,511,995
(3,214,087)
(Increase)/decrease in debtors
(400,030)
5,139,029
(Decrease)/increase in creditors
(6,443,043)
4,112,486
Cash generated from operations
4,634,198
14,920,623
36
Analysis of changes in net funds - group
1 January 2024
Cash flows
New finance leases
Exchange rate movements
31 December 2024
£
£
£
£
£
Cash at bank and in hand
15,571,341
(4,891,464)
-
(322,582)
10,357,295
Borrowings excluding overdrafts
(60,920)
(6,968)
-
-
(67,888)
Obligations under finance leases
(348,047)
42,854
(174,309)
-
(479,502)
15,162,374
(4,855,578)
(174,309)
(322,582)
9,809,905
37
Prior period adjustment
Reconciliation of changes in equity - group
The prior period adjustments do not give rise to any effect upon equity.
R & M ELECTRICAL GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
37
Prior period adjustment
(Continued)
- 46 -
Reconciliation of changes in profit for the previous financial period
2023
Notes
£
Adjustments to prior year
Revenue
1
(3,366,404)
Cost of Sales
1
3,366,404
Total adjustments
-
Profit as previously reported
6,174,937
Profit as adjusted
6,174,937
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2023
Notes
£
Adjustments to prior year
Revenue
1
(3,366,404)
Cost of Sales
1
3,366,404
Total adjustments
-
Profit as previously reported
4,341,500
Profit as adjusted
4,341,500
Notes to reconciliation
Note 1

The prior year restatement relates to interbranch sales which had not been removed on consolidation in the 2023 group financial statements.

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