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REGISTERED NUMBER: 12121690 (England and Wales)















REDCORN HOLDINGS LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024






REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)






CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024




Page

Company Information 1

Group Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 4

Consolidated Income Statement 7

Consolidated Other Comprehensive Income 8

Consolidated Balance Sheet 9

Company Balance Sheet 10

Consolidated Statement of Changes in Equity 11

Company Statement of Changes in Equity 12

Consolidated Cash Flow Statement 13

Notes to the Consolidated Cash Flow Statement 14

Notes to the Consolidated Financial Statements 15


REDCORN HOLDINGS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MAY 2024







DIRECTOR: Mr J M Thompson





REGISTERED OFFICE: Units 3/4, Kerry Avenue
Aveley
Purfleet-on-Thames
South Ockendon
RM15 4YE





REGISTERED NUMBER: 12121690 (England and Wales)





AUDITORS: Duncan & Toplis Audit Limited, Statutory Auditor
3rd Floor
Marlborough House
298 Regents Park Road
Finchley
London
N3 2SZ

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

The director presents his strategic report of the company and the group for the year ended 31 May 2024.

The report provides a balanced and comprehensive analysis of the development and performance of the group's business during the financial year consistent with the size and complexity of the business.

REVIEW OF BUSINESS
We are pleased with the results for the financial year. The group recorded turnover of £42,675,270 (2023: £65,146,310) and profit before tax £2,017,246 (2023: £655,942).

At the year end, the group had healthy reserves of £1,928,233 (2023: £1,169,296) and we expect the business to grow during financial year 2024 in respect of both turnover and profitability.

PRINCIPAL RISKS AND UNCERTAINTIES
It is the group's policy to proactively identify, understand and manage the risks inherent in the operation of our business so as to encourage responsible and informed decision making.

We consider the principal risks to be competitive, economic, operational, legal and compliance risk. Risks are managed through prudent planning and ongoing analysis of market conditions to ensue that Redcorn stays ahead of its competitors.

FINANCIAL KEY PERFORMANCE INDICATORS
2024 2023
Revenue £42.6m £65.1m
Gross Profit Margin 28% 14%
Profit Before Tax £2.0m £656k

ON BEHALF OF THE BOARD:





Mr J M Thompson - Director


20 May 2025

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31 MAY 2024

The director presents his report with the financial statements of the company and the group for the year ended 31 May 2024.

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of ELV and nuisance vehicle contractors.

DIVIDENDS
Interim dividends for the year were £479,500 (2023: £1,222,000).

DIRECTOR
Mr J M Thompson held office during the whole of the period from 1 June 2023 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

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

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

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

AUDITORS
The auditors, Duncan & Toplis Audit Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr J M Thompson - Director


20 May 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
REDCORN HOLDINGS LIMITED

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

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 May 2024 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
REDCORN HOLDINGS LIMITED


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

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

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

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

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

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

- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements.
- Enquiring of management concerning actual and potential litigation and claims.
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
REDCORN HOLDINGS LIMITED


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




Hassan Behcet (Senior Statutory Auditor)
for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor
3rd Floor
Marlborough House
298 Regents Park Road
Finchley
London
N3 2SZ

20 May 2025

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

2024 2023
Notes £    £   

TURNOVER 3 42,675,270 65,146,310

Cost of sales 30,584,881 56,264,122
GROSS PROFIT 12,090,389 8,882,188

Administrative expenses 9,921,300 9,211,580
2,169,089 (329,392 )

Other operating income 15,829 1,137,577
OPERATING PROFIT 5 2,184,918 808,185

Interest receivable and similar income 10,077 25,053
2,194,995 833,238

Interest payable and similar expenses 7 177,749 177,296
PROFIT BEFORE TAXATION 2,017,246 655,942

Tax on profit 8 778,809 (4,875 )
PROFIT FOR THE FINANCIAL YEAR 1,238,437 660,817
Profit attributable to:
Owners of the parent 1,238,437 660,817

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

CONSOLIDATED OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 1,238,437 660,817


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 1,238,437 660,817

Total comprehensive income attributable to:
Owners of the parent 1,238,437 660,817

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

CONSOLIDATED BALANCE SHEET
31 MAY 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Intangible assets 11 450,077 537,188
Tangible assets 12 9,371,751 9,368,489
Investments 13 - -
Investment property 14 2,501,520 2,501,520
12,323,348 12,407,197

CURRENT ASSETS
Stocks 15 36,000 65,000
Debtors 16 3,508,501 6,364,499
Cash at bank and in hand 1,682,609 2,141,125
5,227,110 8,570,624
CREDITORS
Amounts falling due within one year 17 2,555,650 6,132,957
NET CURRENT ASSETS 2,671,460 2,437,667
TOTAL ASSETS LESS CURRENT LIABILITIES 14,994,808 14,844,864

CREDITORS
Amounts falling due after more than one year 18 (1,215,504 ) (1,981,240 )

PROVISIONS FOR LIABILITIES 21 (1,413,284 ) (1,256,541 )
NET ASSETS 12,366,020 11,607,083

CAPITAL AND RESERVES
Called up share capital 22 8,000 8,000
Other reserves 23 10,429,787 10,429,787
Retained earnings 23 1,928,233 1,169,296
SHAREHOLDERS' FUNDS 12,366,020 11,607,083

The financial statements were approved by the director and authorised for issue on 20 May 2025 and were signed by:





Mr J M Thompson - Director


REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

COMPANY BALANCE SHEET
31 MAY 2024

2024 2023
Notes £    £    £   
FIXED ASSETS
Intangible assets 11 4 4
Tangible assets 12 53,596 60,296
Investments 13 2,410 2,410
Investment property 14 2,501,520 2,501,520
2,557,530 2,564,230

CURRENT ASSETS
Debtors 16 134,233 134,233
Cash at bank 464 533
134,697 134,766
CREDITORS
Amounts falling due within one year 17 1,071,607 985,787
NET CURRENT LIABILITIES (936,910 ) (851,021 )
TOTAL ASSETS LESS CURRENT LIABILITIES 1,620,620 1,713,209

CAPITAL AND RESERVES
Called up share capital 22 8,000 8,000
Retained earnings 23 1,612,620 1,705,209
SHAREHOLDERS' FUNDS 1,620,620 1,713,209

Company's profit for the financial year 386,911 1,127,645

The financial statements were approved by the director and authorised for issue on 20 May 2025 and were signed by:





Mr J M Thompson - Director


REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024

Called up
share Retained Other Total
capital earnings reserves equity
£    £    £    £   
Balance at 1 June 2022 8,000 1,730,479 10,429,787 12,168,266

Changes in equity
Dividends - (1,222,000 ) - (1,222,000 )
Total comprehensive income - 660,817 - 660,817
Balance at 31 May 2023 8,000 1,169,296 10,429,787 11,607,083

Changes in equity
Dividends - (479,500 ) - (479,500 )
Total comprehensive income - 1,238,437 - 1,238,437
Balance at 31 May 2024 8,000 1,928,233 10,429,787 12,366,020

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 June 2022 8,000 1,799,564 1,807,564

Changes in equity
Dividends - (1,222,000 ) (1,222,000 )
Total comprehensive income - 1,127,645 1,127,645
Balance at 31 May 2023 8,000 1,705,209 1,713,209

Changes in equity
Dividends - (479,500 ) (479,500 )
Total comprehensive income - 386,911 386,911
Balance at 31 May 2024 8,000 1,612,620 1,620,620

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,616,492 564,042
Interest paid (65,980 ) (16,298 )
Interest element of hire purchase payments paid (111,769 ) (160,998 )
Tax paid (20,211 ) 596
Net cash from operating activities 2,418,532 387,342

Cash flows from investing activities
Purchase of intangible fixed assets - (4 )
Purchase of tangible fixed assets (1,358,281 ) (1,677,175 )
Purchase of investment property - (806,880 )
Sale of tangible fixed assets 226,592 27,320
Interest received 10,077 25,053
Net cash from investing activities (1,121,612 ) (2,431,686 )

Cash flows from financing activities
Lease Financing and Repayments (1,852,953 ) (1,061,724 )
Amount introduced by directors 973,418 -
Amount withdrawn by directors (705,644 ) (919,038 )
Bank loans received - 975,000
Bank loan repayments (170,257 ) -
Net cash from financing activities (1,755,436 ) (1,005,762 )

Decrease in cash and cash equivalents (458,516 ) (3,050,106 )
Cash and cash equivalents at beginning of year 2 2,141,125 5,191,231

Cash and cash equivalents at end of year 2 1,682,609 2,141,125

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 2,017,246 655,942
Depreciation charges 1,629,672 1,529,212
(Profit)/loss on disposal of fixed assets (53,455 ) 3,010
Finance costs 177,749 177,296
Finance income (10,077 ) (25,053 )
3,761,135 2,340,407
Decrease in stocks 29,000 5,000
Decrease/(increase) in trade and other debtors 2,855,997 (2,570,168 )
(Decrease)/increase in trade and other creditors (4,029,640 ) 788,803
Cash generated from operations 2,616,492 564,042

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2024
31.5.24 1.6.23
£    £   
Cash and cash equivalents 1,682,609 2,141,125
Year ended 31 May 2023
31.5.23 1.6.22
£    £   
Cash and cash equivalents 2,141,125 5,191,231


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.6.23 Cash flow At 31.5.24
£    £    £   
Net cash
Cash at bank and in hand 2,141,125 (458,516 ) 1,682,609
2,141,125 (458,516 ) 1,682,609
Debt
Finance leases (2,249,964 ) 819,618 (1,430,346 )
Debts falling due within 1 year (195,000 ) 54 (194,946 )
Debts falling due after 1 year (742,797 ) 170,203 (572,594 )
(3,187,761 ) 989,875 (2,197,886 )
Total (1,046,636 ) 531,359 (515,277 )

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1. STATUTORY INFORMATION

Redcorn Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The principal place of the business during the year ended 31 May 2023 was Brantwood Road, London N17 0DX. The current principal place of business is Units 3/4, Kerry Avenue, Aveley, Purfleet-On-Thames, South Ockendon, RM15 4YE.

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

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 0, is being amortised evenly over its estimated useful life of nil years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold - in accordance with the property
Improvements to property - in accordance with the property
Plant and machinery - 10% on cost
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 10% on cost
Computer equipment - 25% on reducing balance

The residual values, useful lives and depreciation methods of tangible fixed assets are reviewed annually. The director carried out such a review during the year end 31 May 2023, and it was decided to change the depreciation method for Plant and machinery and Motor Vehicles from 25% on reducing balance to 10% on cost. The effect of these revisions has been accounted for prospectively.

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks
Cars that will be scrapped are expensed to the profit and loss on the basis that their value is immaterial and cars held for resale are valued at the lower of cost and net realisable value.

No value is attributed to parts for resale salvaged from scrapped cars.

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

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.

Loans and receivables
Trade debtors , loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. Loans and receivables classified as receivable within one year are not amortised.

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 company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including creditors and bank loans 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 payment ts 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.

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

Current or deferred taxation assets and liabilities are not discounted.

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


REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

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

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

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

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Investment in subsidiaries
Investments in subsidiary undertakings are recognised at cost. The criteria for merger relief as set out in section 612 of the Companies Act have been met. The option available under section 612 of the Companies Act 2006 and FRS 102 section 9.26 has been undertaken to record the cost of the investments in the subsidiaries at the nominal value.

Stocks
Cars that will be scrapped are expensed to the profit and loss on the basis that their value is immaterial and cars held for resale are valued at the lower of cost and net realisable value.

No value is attributed to parts for resale salvaged from scrapped cars.

Equity
Equity instruments issued by the company 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 company.

3. TURNOVER

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

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

2024 2023
£    £   
ELV car scappage 33,434,801 59,073,895
Sale of cars 9,240,469 6,072,415
42,675,270 65,146,310

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

3. TURNOVER - continued

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 42,056,139 63,617,054
Europe 581,656 1,340,560
Rest of the world 37,475 188,696
42,675,270 65,146,310

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 4,871,649 6,945,260
Social security costs 383,391 572,744
Other pension costs 65,621 88,481
5,320,661 7,606,485

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

Admin 48 51
Site 141 184
189 235

2024 2023
£    £   
Director's remuneration 7,020 7,002

5. OPERATING PROFIT

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

2024 2023
£    £   
Other operating leases 1,775,329 1,964,871
Depreciation - owned assets 708,118 589,299
Depreciation - assets on hire purchase contracts 827,322 852,799
(Profit)/loss on disposal of fixed assets (53,455 ) 3,010
Goodwill amortisation 87,111 87,111

6. AUDITORS' REMUNERATION

Fees payable to the groups auditors for the audit of the groups financial statements totalled £28,000 (2023: £35,000)

Non-audit services for the group totalled £136,721 (2023: £180,040).

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank loan interest 65,980 15,702
Interest payable - 596
Hire purchase 111,769 160,998
177,749 177,296

8. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 622,065 49,119

Deferred tax 156,744 (53,994 )
Tax on profit 778,809 (4,875 )

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

2024 2023
£    £   
Profit before tax 2,017,246 655,942
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 -
25 %)

504,312

163,986

Effects of:
Expenses not deductible for tax purposes 46,700 47,550
Income not taxable for tax purposes (124,048 ) -
Capital allowances in excess of depreciation - (150,145 )
Depreciation in excess of capital allowances 6,095 -
Profit on disposal of fixed assets (13,364 ) -
Deferred tax 156,744 (53,994 )
Prior year adjustments 60,716 -
Other 141,654 (12,272 )
Total tax charge/(credit) 778,809 (4,875 )

9. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


10. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim 479,500 1,222,000

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

11. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 June 2023
and 31 May 2024 871,113
AMORTISATION
At 1 June 2023 333,925
Amortisation for year 87,111
At 31 May 2024 421,036
NET BOOK VALUE
At 31 May 2024 450,077
At 31 May 2023 537,188

Company
Goodwill
£   
COST
At 1 June 2023
and 31 May 2024 4
NET BOOK VALUE
At 31 May 2024 4
At 31 May 2023 4

12. TANGIBLE FIXED ASSETS

Group
Improvements
Short to Plant and
leasehold property machinery
£    £    £   
COST
At 1 June 2023 31,475 1,010,687 13,070,078
Additions - 521,326 1,067,647
Disposals - - (546,948 )
At 31 May 2024 31,475 1,532,013 13,590,777
DEPRECIATION
At 1 June 2023 11,445 174,616 5,379,329
Charge for year 2,861 89,483 1,201,684
Eliminated on disposal - - (347,197 )
At 31 May 2024 14,306 264,099 6,233,816
NET BOOK VALUE
At 31 May 2024 17,169 1,267,914 7,356,961
At 31 May 2023 20,030 836,071 7,690,749

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

12. TANGIBLE FIXED ASSETS - continued

Group

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 June 2023 173,462 3,920,410 101,723 18,307,835
Additions 5,602 192,000 1,793 1,788,368
Disposals - (227,257 ) - (774,205 )
At 31 May 2024 179,064 3,885,153 103,516 19,321,998
DEPRECIATION
At 1 June 2023 81,855 3,228,608 63,493 8,939,346
Charge for year 13,627 218,730 9,055 1,535,440
Eliminated on disposal - (177,342 ) - (524,539 )
At 31 May 2024 95,482 3,269,996 72,548 9,950,247
NET BOOK VALUE
At 31 May 2024 83,582 615,157 30,968 9,371,751
At 31 May 2023 91,607 691,802 38,230 9,368,489

The net book value of tangible fixed assets includes £ 4,360,868 (2023 - £ 4,878,109 ) in respect of assets held under hire purchase contracts.

Company
Plant and
machinery
£   
COST
At 1 June 2023
and 31 May 2024 66,996
DEPRECIATION
At 1 June 2023 6,700
Charge for year 6,700
At 31 May 2024 13,400
NET BOOK VALUE
At 31 May 2024 53,596
At 31 May 2023 60,296

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

13. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 June 2023
and 31 May 2024 2,410
NET BOOK VALUE
At 31 May 2024 2,410
At 31 May 2023 2,410

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Redcorn Limited
Registered office: Units 3/4, Kerry Avenue, Aveley, Purfleet-On-Thames, South Ockendon, RM15 4YE
Nature of business: Wholesale of waste and scrap
%
Class of shares: holding
Ordinary 100.00

E.L.V. Solutions Limited
Registered office: Units 3/4, Kerry Avenue, Aveley, Purfleet-On-Thames, South Ockendon, RM15 4YE
Nature of business: Removal and other transportation support
%
Class of shares: holding
Ordinary 100.00


14. INVESTMENT PROPERTY

Group
Total
£   
FAIR VALUE
At 1 June 2023
and 31 May 2024 2,501,520
NET BOOK VALUE
At 31 May 2024 2,501,520
At 31 May 2023 2,501,520

Company
Total
£   
FAIR VALUE
At 1 June 2023
and 31 May 2024 2,501,520
NET BOOK VALUE
At 31 May 2024 2,501,520
At 31 May 2023 2,501,520

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

15. STOCKS

Group
2024 2023
£    £   
Stocks 36,000 65,000

16. DEBTORS

Group Company
2024 2023 2024 2023
£    £    £    £   
Amounts falling due within one year:
Trade debtors 1,144,309 254,067 - -
Other debtors 1,364,919 3,712,723 124,000 124,000
Directors' current accounts 6,213 918,131 - -
Tax - 116,832 - -
Prepayments and accrued income 953,060 977,765 10,233 10,233
3,468,501 5,979,518 134,233 134,233

Amounts falling due after more than one year:
Other debtors 40,000 384,981 - -

Aggregate amounts 3,508,501 6,364,499 134,233 134,233

17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Bank loans and overdrafts (see note 19) 194,946 195,000 - -
Hire purchase contracts (see note 20) 787,436 1,011,521 - -
Trade creditors 366,109 309,088 7,638 7,638
Amounts owed to group undertakings - - 1,048,969 963,149
Tax 495,019 9,997 - -
Social security and other taxes 79,486 145,784 - -
VAT 525,418 1,549,874 - -
Other creditors - 2,583,687 - -
Pensions 23,377 13,528 - -
Net wages 18,346 48,977 - -
Accruals and deferred income 65,513 265,501 15,000 15,000
2,555,650 6,132,957 1,071,607 985,787

18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
2024 2023
£    £   
Bank loans (see note 19) 572,594 742,797
Hire purchase contracts (see note 20) 642,910 1,238,443
1,215,504 1,981,240

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

19. LOANS

An analysis of the maturity of loans is given below:

Group
2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 194,946 195,000
Amounts falling due in more than five years:
Repayable by instalments
Bank loans more 5 yr by instal 572,594 742,797

20. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 787,436 1,011,521
Between one and five years 642,910 1,238,443
1,430,346 2,249,964

Group
Non-cancellable operating leases
2024 2023
£    £   
Within one year 1,146,600 938,800
Between one and five years 4,010,128 3,331,200
In more than five years 15,394,397 7,370,958
20,551,125 11,640,958

Company
Non-cancellable operating leases
2024 2023
£    £   
Within one year 279,583 122,800
Between one and five years 1,423,575 491,200
In more than five years 1,775,000 2,986,958
3,478,158 3,600,958

21. PROVISIONS FOR LIABILITIES

Group
2024 2023
£    £   
Deferred tax 1,413,284 1,256,541

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

21. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Balance at 1 June 2023 1,256,541
Provided during year 156,743
Balance at 31 May 2024 1,413,284

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
6,000 Ordinary £1 6,000 6,000
2,000 Ordinary Redeemable £1 2,000 2,000
8,000 8,000

All shares have been allotted and issued.

The directors may pay an interim dividend or dividends on one or both classes of shares to the exclusion of the other class and may pay interim dividends at different rates on the respective classes of shares.

The redeemable shares do not entitle the holder to any voting rights in respect of meetings held by the company.

23. RESERVES

Group
Retained Other
earnings reserves Totals
£    £    £   

At 1 June 2023 1,169,296 10,429,787 11,599,083
Profit for the year 1,238,437 1,238,437
Dividends (479,500 ) (479,500 )
At 31 May 2024 1,928,233 10,429,787 12,358,020

Company
Retained
earnings
£   

At 1 June 2023 1,705,209
Profit for the year 386,911
Dividends (479,500 )
At 31 May 2024 1,612,620

Other Reserves represents the market value of shares acquired from Redcorn Limited and E.L.V. Solutions Limited via a share for share exchange less the nominal cost of the investment.

REDCORN HOLDINGS LIMITED (REGISTERED NUMBER: 12121690)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024

24. PENSION COMMITMENTS

The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension costs charge represents contributions payable by the group to the fund and amounted to £88,481.

25. DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 May 2024 and 31 May 2023:

2024 2023
£    £   
J M Thompson
Balance outstanding at start of year 918,127 1,221,089
Amounts advanced 897,538 919,038
Amounts repaid (1,809,452 ) (1,222,000 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 6,213 918,127

Interest was charged on net advances to the director at 2.25% p.a. The loan is repayable on demand.

26. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

An amount of £830,644 (2023: £829,534) is owed from a related company in the form of an unsecured and interest free loan at the balance sheet date. The company is related by virtue of common control.

An amount of £399,124 is owed from another related company in the form of an unsecured and interest free loan at the balance sheet date. The company is related by virtue of common control.

During the year, key management personnel emoluments amounted to £234,362 (2023: £234,362)

27. PARENT GUARANTEE

In accordance with Section 479A of the Companies Act 2006, the parent company, Redcorn Holdings Limited, has provided a guarantee in respect of all liabilities outstanding at the end of the financial year of its subsidiary, E.L.V. Solutions Limited (company number 07212861). As a result, E.L.V. Solutions Limited has taken advantage of the exemption from audit of its individual financial statements for the year ended 31st May 2024 permitted under Section 479A of the Companies Act 2006.

Principal Details of the Subsidiary:

Name: E.L.V. Solutions Limited
Company Number: 07212861
Registered Office: Units 3/4, Kerry Avenue, Aveley, Purfleet-on-Thames, South Ockendon, RM15 4YE
Proportion of Ownership: 100%
Principal Activity: Provision of Vehicle Removal Services

The parent company confirms that it has provided a guarantee for the subsidiary's liabilities as required under Section 479C of the companies Act 2006, ensuring compliance with the conditions necessary to claim the audit exemption.