Runflat International Limited 04222434 false 2023-09-01 2024-08-31 2024-08-31 The principal activity of the company is the development of vehicle protection equipment. Digita Accounts Production Advanced 6.30.9574.0 true true true true false 04222434 2023-09-01 2024-08-31 04222434 2024-08-31 04222434 bus:OrdinaryShareClass1 2024-08-31 04222434 core:AcceleratedTaxDepreciationDeferredTax 2024-08-31 04222434 core:CapitalRedemptionReserve 2024-08-31 04222434 core:RetainedEarningsAccumulatedLosses 2024-08-31 04222434 core:ShareCapital 2024-08-31 04222434 core:CurrentFinancialInstruments 2024-08-31 04222434 core:CurrentFinancialInstruments core:WithinOneYear 2024-08-31 04222434 core:BetweenTwoFiveYears 2024-08-31 04222434 core:WithinOneYear 2024-08-31 04222434 core:FurnitureFittings 2024-08-31 04222434 core:MotorVehicles 2024-08-31 04222434 core:OtherPropertyPlantEquipment 2024-08-31 04222434 core:DeferredTaxation 2024-08-31 04222434 core:OtherRelatedParties 2024-08-31 04222434 core:ParentEntities 2024-08-31 04222434 bus:FRS102 2023-09-01 2024-08-31 04222434 bus:Audited 2023-09-01 2024-08-31 04222434 bus:FullAccounts 2023-09-01 2024-08-31 04222434 bus:RegisteredOffice 2023-09-01 2024-08-31 04222434 bus:Director1 2023-09-01 2024-08-31 04222434 bus:Director2 2023-09-01 2024-08-31 04222434 bus:Director3 2023-09-01 2024-08-31 04222434 bus:Director5 2023-09-01 2024-08-31 04222434 bus:HighestPaidDirector 2023-09-01 2024-08-31 04222434 bus:OrdinaryShareClass1 2023-09-01 2024-08-31 04222434 bus:PrivateLimitedCompanyLtd 2023-09-01 2024-08-31 04222434 bus:Agent1 2023-09-01 2024-08-31 04222434 core:CapitalRedemptionReserve 2023-09-01 2024-08-31 04222434 core:RetainedEarningsAccumulatedLosses 2023-09-01 2024-08-31 04222434 core:ShareCapital 2023-09-01 2024-08-31 04222434 core:PlantEquipmentUnderOperatingLeases 2023-09-01 2024-08-31 04222434 core:FurnitureFittings 2023-09-01 2024-08-31 04222434 core:MotorVehicles 2023-09-01 2024-08-31 04222434 core:OtherPropertyPlantEquipment 2023-09-01 2024-08-31 04222434 core:PlantMachinery 2023-09-01 2024-08-31 04222434 core:DeferredTaxation 2023-09-01 2024-08-31 04222434 core:OtherRelatedParties 2023-09-01 2024-08-31 04222434 core:OtherRelatedParties core:RenderingOrReceivingServices 2023-09-01 2024-08-31 04222434 core:OtherRelatedParties core:SaleOrPurchaseGoods 2023-09-01 2024-08-31 04222434 core:ParentEntities 2023-09-01 2024-08-31 04222434 core:ParentEntities core:RenderingOrReceivingServices 2023-09-01 2024-08-31 04222434 core:ParentEntities core:SaleOrPurchaseGoods 2023-09-01 2024-08-31 04222434 core:UKTax 2023-09-01 2024-08-31 04222434 1 2023-09-01 2024-08-31 04222434 1 2023-09-01 2024-08-31 04222434 countries:England 2023-09-01 2024-08-31 04222434 2023-08-31 04222434 core:CapitalRedemptionReserve 2023-08-31 04222434 core:RetainedEarningsAccumulatedLosses 2023-08-31 04222434 core:ShareCapital 2023-08-31 04222434 core:FurnitureFittings 2023-08-31 04222434 core:MotorVehicles 2023-08-31 04222434 core:OtherPropertyPlantEquipment 2023-08-31 04222434 core:DeferredTaxation 2023-08-31 04222434 2022-09-01 2023-08-31 04222434 2023-08-31 04222434 bus:OrdinaryShareClass1 2023-08-31 04222434 core:AcceleratedTaxDepreciationDeferredTax 2023-08-31 04222434 core:CurrentFinancialInstruments 2023-08-31 04222434 core:CurrentFinancialInstruments core:WithinOneYear 2023-08-31 04222434 core:BetweenTwoFiveYears 2023-08-31 04222434 core:WithinOneYear 2023-08-31 04222434 core:FurnitureFittings 2023-08-31 04222434 core:MotorVehicles 2023-08-31 04222434 core:OtherPropertyPlantEquipment 2023-08-31 04222434 core:ParentEntities 2023-08-31 04222434 bus:HighestPaidDirector 2022-09-01 2023-08-31 04222434 bus:OrdinaryShareClass1 2022-09-01 2023-08-31 04222434 core:CapitalRedemptionReserve 2022-09-01 2023-08-31 04222434 core:RetainedEarningsAccumulatedLosses 2022-09-01 2023-08-31 04222434 core:ShareCapital 2022-09-01 2023-08-31 04222434 core:PlantEquipmentUnderOperatingLeases 2022-09-01 2023-08-31 04222434 core:ParentEntities core:SaleOrPurchaseGoods 2022-09-01 2023-08-31 04222434 core:UKTax 2022-09-01 2023-08-31 04222434 2022-08-31 04222434 core:CapitalRedemptionReserve 2022-08-31 04222434 core:RetainedEarningsAccumulatedLosses 2022-08-31 04222434 core:ShareCapital 2022-08-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 04222434

Runflat International Limited

Annual Report and Financial Statements

for the Year Ended 31 August 2024

 

Runflat International Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Profit and Loss Account and Statement of Retained Earnings

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 23

 

Runflat International Limited

Company Information

Directors

Mr Thomas Philip Westley

Mr Eric Cartelet

Mr Thomas Arthur Westley

Mr Alexander Dominic William Masters

Registered office

c/o Westley Plastics Ltd
Gawne Lane
Cradley Heath
West Midlands
B64 5QY

Auditors

Walker Hubble
Registered Auditor5 Parsons Street
Dudley
West Midlands
DY1 1JJ

 

Runflat International Limited

Strategic Report for the Year Ended 31 August 2024

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

Principal activity

The principal activity of the company is the development of vehicle protection equipment.

Fair review of the business

The Directors are pleased to report another successful year for the company and the wider group, with turnover for the company showing growth of £1.01m (6.41%) from last year.

During the year RunFlat International Ltd relocated premises to a new, much larger, fitting centre. This expansion has significantly increased the group’s capacity, which was a limiting factor in prior years.

EBITDA for the group this year fell by £0.23m because of higher establishment costs, wages and salaries. However, the foundations of the company have been significantly enhanced enabling greater capacity and a better, more efficient response for our customers going forward.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£

16,765,851

15,755,470

Turnover per employee

£

4,191,463

3,938,868

Gross Profit

£

3,262,868

3,217,895

Gross profit %

%

20

20

EBITDA before exceptional items

£

1,847,761

2,078,824

EBITDA %

%

11

13

Principal risks and uncertainties

The Directors and management continually monitor the key risks facing the business as well as assessing the controls used to manage these risks.

As a significant proportion of the company’s turnover is generated from foreign markets, exchange rates exposure and the relative strength of the pound is a significant risk. The Directors are confident that the internal policies and exchange strategies in place, alongside a healthy cash reserve balance, provide a robust defence against this risk.

The company invests each year in appropriate commercial insurance policies to protect the balance sheet, assets and employees.

In November 2024 the company obtained its Cyber Essentials certification, complying with requirements of the Cyber Essentials Scheme for cyber security, reducing the potential cyber risk for the group.


Approved and authorised by the Board on 23 May 2025 and signed on its behalf by:
 

.........................................
Mr Thomas Philip Westley
Director

 

Runflat International Limited

Directors' Report for the Year Ended 31 August 2024

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

Directors of the company

The directors who held office during the year were as follows:

Mr Thomas Philip Westley

Mr Eric Cartelet

Mr Thomas Arthur Westley

Mr Alexander Dominic William Masters

Financial instruments

Objectives and policies
 

The company's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the company's policies approved by the board of directors which provide written principles on the use of financial derivatives to manage.

Price risk, credit risk, liquidity risk and cash flow risk

Price risk:
The company is exposed to commodity price risk. The company manages its exposure to commodity price risk where it is considered financially appropriate.

Credit risk:
The company's principle financial assets are bank balances and cash, trade and other receivables.

The company's credit risk is primarily attributed to trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in recovery of cash flow.

The company has no significant concentration of credit risk, with exposure spread over a large number of customers.

Liquidity risk:
The company has funded, and intends to continue funding, its ongoing operations and future developments through cash generated from operating activities.

Cash flow risk:

As a significant proportion of the company’s turnover is generated from foreign markets, exchange rates exposure and the relative strength of the pound is a significant risk. The Directors are confident that the internal policies and exchange strategies in place, alongside a healthy cash reserve balance, provide a robust defence against this risk.

Employment of disabled persons

The company gives full and fair consideration to employment applications from disabled persons. Where an employee becomes disabled, arrangements are made wherever practical to continue employment by identifying an available job suited to the person's capabilities and providing any necessary retraining.

 

Runflat International Limited

Directors' Report for the Year Ended 31 August 2024

Employee involvement

The directors involve and inform the company's employees as much as possible within regulatory constraints. The directors communicate on a regular basis through core briefing updates to the employees to promote awareness of current progress and developments within the company.

Environmental matters

Runflat International considers respect for the environment as a core value of the Group. The Group has an approved environmental policy which sets out the guiding principles which all of its subsidiaries must adopt and observe.

Under this policy the Group pursues clear strategic goals, taking into account the available technologies and resources, with the aim of progressively improving its environmental performance.

The group is ISO14001 compliant.

Important non adjusting events after the financial period

Westley International Holdings Ltd was incorporated on 7th August 2024, this is the ultimate holding company of Westley Plastics Ltd as of this date.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Walker Hubble are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the Board on 23 May 2025 and signed on its behalf by:
 

.........................................
Mr Thomas Philip Westley
Director

 

Runflat International Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

 

Runflat International Limited

Independent Auditor's Report to the Members of Runflat International Limited

Opinion

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

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 August 2024 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Runflat International Limited

Independent Auditor's Report to the Members of Runflat International Limited

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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:

We identifed and assessed the risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations. Our procedures included equiry of management and performing analytical review procedures to identify any unusual relationships that may indicate a material misstatement. We also tested the appropriateness of journals to address the risk of fraud through management override of controls. We performed appropriate testing in respect of the risk of fraud in revenue recognition through a review of margins, sales cut off procedures, and by performing existence and valuation testing on trade debtors.

Relevant laws and regulations, together with potential fraud risks, were communicated to the audit engagement team at the planning stage to ensure they remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

Runflat International Limited

Independent Auditor's Report to the Members of Runflat International Limited

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.

......................................
Gavin Richard Pearson (Senior Statutory Auditor)
For and on behalf of Walker Hubble, Statutory Auditor
 5 Parsons Street
Dudley
West Midlands
DY1 1JJ

23 May 2025

 

Runflat International Limited

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 August 2024

Note

2024
£

2023
£

Turnover

3

16,765,851

15,755,470

Cost of sales

 

(13,502,983)

(12,537,575)

Gross profit

 

3,262,868

3,217,895

Distribution costs

 

(214,425)

(261,769)

Administrative expenses

 

(1,210,682)

(879,364)

Operating profit

5

1,837,761

2,076,762

Other interest receivable and similar income

6

26,378

8,133

Interest payable and similar charges

7

(65,014)

(42,802)

 

(38,636)

(34,669)

Profit before tax

 

1,799,125

2,042,093

Taxation

11

(449,781)

(438,987)

Profit for the financial year

 

1,349,344

1,603,106

Retained earnings brought forward

 

4,351,057

3,247,951

Dividends paid

 

(1,150,000)

(500,000)

Retained earnings carried forward

 

4,550,401

4,351,057

 

Runflat International Limited

(Registration number: 04222434)
Balance Sheet as at 31 August 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

12

136,812

59,836

Current assets

 

Stocks

13

1,265,053

767,959

Debtors

14

2,279,584

2,201,518

Cash at bank and in hand

 

3,134,301

4,776,163

 

6,678,938

7,745,640

Creditors: Amounts falling due within one year

16

(2,180,146)

(3,388,460)

Net current assets

 

4,498,792

4,357,180

Total assets less current liabilities

 

4,635,604

4,417,016

Provisions for liabilities

17

(34,203)

(14,959)

Net assets

 

4,601,401

4,402,057

Capital and reserves

 

Called up share capital

1,000

1,000

Capital redemption reserve

50,000

50,000

Retained earnings

4,550,401

4,351,057

Shareholders' funds

 

4,601,401

4,402,057

Approved and authorised by the Board on 23 May 2025 and signed on its behalf by:
 

.........................................
Mr Thomas Philip Westley
Director

 

Runflat International Limited

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

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 September 2023

1,000

50,000

4,351,057

4,402,057

Profit for the year

-

-

1,349,344

1,349,344

Dividends

-

-

(1,150,000)

(1,150,000)

At 31 August 2024

1,000

50,000

4,550,401

4,601,401

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 September 2022

1,000

50,000

3,247,951

3,298,951

Profit for the year

-

-

1,603,106

1,603,106

Dividends

-

-

(500,000)

(500,000)

At 31 August 2023

1,000

50,000

4,351,057

4,402,057

 

Runflat International Limited

Statement of Cash Flows for the Year Ended 31 August 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

1,349,344

1,603,106

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

26,667

8,562

Profit on disposal of tangible assets

4

(16,667)

(6,500)

Finance income

6

(26,378)

(8,133)

Income tax expense

11

449,781

438,987

 

1,782,747

2,036,022

Working capital adjustments

 

Increase in stocks

13

(497,094)

(32,941)

Increase in trade debtors

14

(78,066)

(1,617,085)

(Decrease)/increase in trade creditors

16

(904,602)

1,566,036

Cash generated from operations

 

302,985

1,952,032

Income taxes paid

11

(734,249)

(129,678)

Net cash flow from operating activities

 

(431,264)

1,822,354

Cash flows from investing activities

 

Interest received

6

26,378

8,133

Acquisitions of tangible assets

(103,643)

(27,508)

Proceeds from sale of tangible assets

 

16,667

6,500

Net cash flows from investing activities

 

(60,598)

(12,875)

Cash flows from financing activities

 

Dividends paid

21

(1,150,000)

(500,000)

Net (decrease)/increase in cash and cash equivalents

 

(1,641,862)

1,309,479

Cash and cash equivalents at 1 September

 

4,776,163

3,466,683

Cash and cash equivalents at 31 August

 

3,134,301

4,776,162

 

Runflat International Limited

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

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
c/o Westley Plastics Ltd
Gawne Lane
Cradley Heath
West Midlands
B64 5QY

These financial statements were authorised for issue by the Board on 23 May 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

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

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

 

Runflat International Limited

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

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

10% straight line

Motor vehicles

25% straight line

Fixtures and fittings

25% straight line

Cash and cash equivalents

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

Trade debtors

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

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

 

Runflat International Limited

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

Stocks

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

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

Trade creditors

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

Leases

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

Share capital

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

Dividends

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

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

16,765,851

15,755,470

 

Runflat International Limited

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

4

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2024
£

2023
£

Gain on disposal of tangible assets

16,667

6,500

5

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

26,667

8,562

Operating lease expense - plant and machinery

28,176

8,012

Profit on disposal of property, plant and equipment

(16,667)

(6,500)

6

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

26,378

8,133

7

Interest payable and similar expenses

2024
£

2023
£

Foreign exchange gains

65,014

42,802

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

533,712

430,871

Social security costs

60,515

20,013

Pension costs, defined contribution scheme

61,035

47,213

Other employee expense

31,580

46,526

686,842

544,623

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Administration and support

4

4

4

4

 

Runflat International Limited

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

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

277,310

299,618

Contributions paid to money purchase schemes

60,000

47,213

337,310

346,831

In respect of the highest paid director:

2024
£

2023
£

Remuneration

272,274

299,618

Company contributions to money purchase pension schemes

60,000

47,212

10

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

6,000

6,000

Other fees to auditors

Taxation compliance services

1,000

1,000

All other assurance services

1,000

1,000

2,000

2,000


 

 

Runflat International Limited

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

11

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

430,537

434,250

Deferred taxation

Arising from origination and reversal of timing differences

19,244

4,737

Tax expense in the income statement

449,781

438,987

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 25% (2023 - 21.52%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,799,125

2,042,093

Corporation tax at standard rate

449,781

439,458

Deferred tax credit relating to changes in tax rates or laws

-

(471)

Total tax charge

449,781

438,987

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Deferred tax balance

-

19,243

-

19,243

2023

Asset
£

Liability
£

Deferred tax balance

-

14,959

-

14,959

 

Runflat International Limited

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

12

Tangible assets

Fixtures and fittings
£

Motor vehicles
 £

Other tangible assets
 £

Total
£

Cost or valuation

At 1 September 2023

13,228

25,424

89,684

128,336

Additions

37,105

14,495

52,043

103,643

Disposals

-

(25,424)

-

(25,424)

At 31 August 2024

50,333

14,495

141,727

206,555

Depreciation

At 1 September 2023

12,683

25,424

30,393

68,500

Charge for the year

9,458

3,624

13,585

26,667

Eliminated on disposal

-

(25,424)

-

(25,424)

At 31 August 2024

22,141

3,624

43,978

69,743

Carrying amount

At 31 August 2024

28,192

10,871

97,749

136,812

At 31 August 2023

545

-

59,291

59,836

 

Runflat International Limited

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

13

Stocks

2024
£

2023
£

Raw materials and consumables

1,069,483

415,190

Finished goods and goods for resale

195,570

352,769

1,265,053

767,959

14

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

1,468,061

1,788,788

Amounts owed by related parties

22

351,348

-

Other debtors

 

379,163

340,995

Prepayments

 

81,012

71,735

   

2,279,584

2,201,518

15

Cash and cash equivalents

2024
£

2023
£

Cash at bank

3,134,301

4,776,163

16

Creditors

Note

2024
£

2023
£

Due within one year

 

Trade creditors

 

205,904

221,175

Amounts due to related parties

22

698,103

2,029,934

Accruals

 

1,145,605

703,105

Income tax liability

11

130,534

434,246

 

2,180,146

3,388,460

17

Provisions for liabilities

Deferred tax
£

Total
£

At 1 September 2023

14,959

14,959

Additional provisions

19,244

19,244

At 31 August 2024

34,203

34,203

 

Runflat International Limited

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

18

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £61,035 (2023 - £47,213).

19

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

1,000

1,000

1,000

1,000

       

20

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

29,765

13,004

Later than one year and not later than five years

57,518

36,843

87,283

49,847

The amount of non-cancellable operating lease payments recognised as an expense during the year was £28,176 (2023 - £8,012).

 

Runflat International Limited

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

21

Dividends

Interim dividends paid

2024
£

2023
£

Interim dividend of £1,150.00 (2023 - £500.00) per each Ordinary shares

1,150,000

500,000

 

 

22

Related party transactions

Summary of transactions with parent


Westley Plastics Ltd
The overall direct parent
Intercompany trading

Runflat holdings
Parent company holding 100% of the share capital
Dividends payable

 

Summary of transactions with other related parties


TR Estates Limited
Mr T P Westley has a controlling interest
Rent and services payable

Income and receivables from related parties

2024

Parent
£

Amounts receivable from related party

351,348

2023

Expenditure with and payables to related parties

2024

Parent
£

Other related parties
£

Purchase of goods

8,664,992

-

Rendering of services

-

202,834

8,664,992

202,834

Amounts payable to related party

698,103

-

2023

Parent
£

Purchase of goods

8,367,629

Amounts payable to related party

2,029,934

 

Runflat International Limited

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

23

Parent and ultimate parent undertaking

The company's immediate parent is Runflat Holdings Limited, incorporated in England.

 The ultimate parent is Westley International Ltd, incorporated in England.

 The most senior parent entity producing publicly available financial statements is Westley Plastics Limited. These financial statements are available upon request from Gawne Lane, Cradley Heath, West Midlands. B64 5QY.

 

24

Non adjusting events after the financial period

Westley International Holdings Ltd was incorporated on 7th August 2024, this is the ultimate holding company of Westley Plastics Ltd as of this date.