Company registration number 02833782 (England and Wales)
REYDON SPORTS PLC
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
REYDON SPORTS PLC
COMPANY INFORMATION
Directors
P Brookes
F W Doherty
J McGovern
A Griffin
Secretary
P Brookes
Company number
02833782
Registered office
Unit 2 Birch Park
Giltbrook
Nottingham
NG16 2AR
Auditor
DJH Audit Limited
5 Prospect Place
Millennium Way
Pride Park
Derby
DE24 8HG
REYDON SPORTS PLC
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 32
REYDON SPORTS PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Review of the business

We aim to present a balanced and comprehensive review of the development and performance of the group during the year and its position at the year end. Our review is consistent with the size and nature of the group and is written in the context of the risks and uncertainties faced.

 

The directors are pleased to report a further increase in turnover for the group of 12.6% on the prior year (9.4% if you exclude the impact of the acquisition during the year) to £16.8m. This is a great achievement in what is a competitive market.

 

However, during 2024 the group made considerable efforts to support our retail friends and partners during what was a difficult year for many of them. This effort coupled with fluctuating shipping and containment costs saw a drop in gross profit margin from 33.1% to 29.8% this year. This therefore resulted in considerably lower profits on an increased turnover but the directors believe this was the correct strategic decision to make. Supporting the retail sector remains our focus for 2025.

 

At the balance sheet date the directors are pleased to report the that group is in a further improved and strong position.

 

Net current assets have increase significantly and total equity value has increased by over £2m as a result of the further share issue made in the year to further strengthen the Group for its long term plans

 

The Group remains totally dedicated to supplying retailers and the Board of Directors is proud to repeat our promise that we will never go down the route of many brands with a direct to consumer operation.

Principal risks and uncertainties

Currency risk:

As a wholesaler highly reliant on imported goods, currency fluctuation remains a matter of risk for the Company. The Company continues to forward buy currency to minimise risk of currency loss.

Development and performance

The Company will continue to develop its product and brand offering to remain the easiest and most competitive place for retailers across the UK, Ireland and Europe to source sports, toy and leisure stock. The board of directors is acutely aware of the need to focus its activities on the needs of its customers and to continue to offer unrivalled service levels.

Key performance indicators
Unit
2024
2023
Turnover
£
16,858,844
14,959,696
Turnover growth
%
13
-4
Profit before tax
£
39,289
727,057
Section 172(1) statement

During the year ended 31 December 2024, the Board of Reydon Sports PLC considers, as individuals and collectively, that it has acted in a way it considers, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole, and by having regard to stakeholders and matters set out in s172(1) (a-f) of the Act, in the decisions taken during the year.

 

It is important to the Board that we develop strong and positive relationships with our employees, customers, suppliers and investors, as well as government and regulators. We also strive to make a positive contribution to the environment and local communities in which we operate.

 

The following paragraphs summarise how the Directors’ fulfil their duties:

REYDON SPORTS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Likely consequences of long term decisions

The directors understand the business must continue to adapt to the evolving environment in which we operate, to continue to supply Sports Equipment, Toys and Leisure Products to the general public via retailers all over the world. As outlined in the Reydon Story, the rising standard of living of a growing global population is likely to continue to drive demand for Sports, Toy and Leisure Equipment for many years to come.

The interest of company employees

The directors recognise that Reydon’s employees are fundamental and core to our business and delivery of strategic ambitions. The success of our business depends on attracting, retaining, and motivating employees. From ensuring that we remain a positive employer, from pay and benefits to health, safety and workplace environment, the Directors factor the implications of decisions on employees and the wider workplace, where relevant and feasible. More information on this can be found within our report on Workforce Engagement.

Impact on the community and environment

This aspect is inherent in our strategic ambitions, most notably in our ambitions to provide sports equipment at a grass roots level including clubs, schools, colleges, and universities. The Board also take reasonable steps to minimise any detrimental impact the Company’s operations may have on the environment.

 

Business relationships

Delivering our strategy requires strong mutually beneficial relationships with suppliers and customers. Reydon seeks the promotion and application of certain general principles in such relationships. The ability to promote these principles effectively is an important factor in the decision to enter into or remain in such relationships and this alongside other standards are described in The Reydon General Business Principles, which are reviewed and approved by the board periodically. The Board also reviews and approves Reydon’s approach to suppliers which is set out in Reydon’s Supplier Principles. The business continuously assesses the priorities related to customers and those with whom we do business on these topics, for example, within the context of business strategy updates and investment proposals.

 

Reputation for high standards of business conduct

Reydon aims to meet the growing need for sports equipment which are economically, environmentally, and socially responsible. The Board periodically reviews and approves clear frameworks, such as The Reydon General Business Principles, Reydon’s Code of Conduct, specific Ethics & Compliance manuals, and its Modern Slavery Statements, to ensure that its high standards are maintained both within Reydon businesses and the business relationships we maintain. This, complemented by the ways the Board is informed and monitors compliance with relevant governance standards help assure its decisions are taken and that Reydon companies act in ways that promote high standards of business conduct.

 

Acting fairly between members of the company

After weighing up all relevant factors, the Directors consider which course of action best enables delivery of our strategy through the long-term, taking into consideration the impact on stakeholders. In doing so, our Directors act fairly as between the Company’s members but are not required to balance the Company’s interest with those of other stakeholders, and this can sometimes mean that certain stakeholder interests may not be fully aligned.

 

Culture

The Board recognises that it has an important role in assessing and monitoring that our desired culture is embedded in the values, attitudes and behaviours we demonstrate, including in our activities and stakeholder relationships. The Board has established honesty, integrity and respect for people as Reydon's core values. The General Business Principles, Code of Conduct, and Code of Ethics help everyone at Reydon act in line with these values and comply with relevant laws and regulations. The Reydon Commitment and Policy on Health, Safety, Security, Environment & Social Performance applies across Reydon and is designed to help protect people and the environment. We relentlessly pursue Goal Zero, our safety goal to achieve no harm and no leaks across all our operations. We also strive to maintain a diverse and inclusive culture.
REYDON SPORTS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The Board considers the Reydon People Survey to be one of its principal tools to measure employee engagement, motivation, affiliation and commitment to Reydon. It provides insights into employee views and has a consistenly high response rate. The Board also utilises this engagement to understand how survey outcomes are being leveraged to strengthen Reydon culture and values

On behalf of the board

F W Doherty
Director
3 June 2025
REYDON SPORTS PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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

Principal activities

The principal activity of the company and group continued to be that of the wholesale and distribution of sports goods.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

P Brookes
F W Doherty
J McGovern
A Griffin
Financial instruments

Objectives and policies

The Group is exposed to the following risks from its use of financial instruments:

 

- Liquidity risk

- Currency risk

- Credit risk

 

The Directors have overall responsibility for the establishment and oversight of the Group's risk management framework.

 

The Group does not have a formal risk management policy program. The exposure to the above risks are monitored by the Board of Directors as part of its daily management of the Group activities.

 

Liquidity risk

Liquidity risk is the risk that arises when the maturity of assets and liabilities does not match. An unmatched position potentially enhances profitability, but can also increase the risk of losses. The Group has procedures with the object of minimising such losses such as maintaining sufficient cash and other assets.

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.

Currency risk

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Currency risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the Group's functional currency. The Group is exposed to foreign exchange risk rising from various currency exposures primarily with respect to the Euro and US Dollars. The Group's management monitors the exchange rate fluctuations on a continuous basis and acts accordingly.

Credit risk

Credit risk arises when a failure by counter parties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the reporting date. The Group has no significant concentration of credit risk. The Group has an insurance policy in place which ensures any failure by a party to discharge their obligations does not result in a significant reduction of cash inflows. In addition to this policy the Group ensures that sales of products and services are made to customers with an appropriate credit history and monitors on a continuous basis the ageing profile of its receivables.

REYDON SPORTS PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
F W Doherty
Director
3 June 2025
REYDON SPORTS PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF REYDON SPORTS PLC
- 6 -
Opinion

We have audited the financial statements of Reydon Sports PLC (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise 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:

REYDON SPORTS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF REYDON SPORTS PLC
- 7 -
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.

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

We are not responsible for preventing irregularities. Our approach to detecting irregularities included, but was not limited to, the following:

• obtaining an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework;

• obtaining an understanding of the entity's policies and procedures and how the entity has complied with these, through discussions and walkthrough testing;

• obtaining an understanding of the entity's risk assessment process, including the risk of fraud;

• enquiring of management as to actual and potential fraud, litigation and claims;

• designing our audit procedures to respond to our risk assessment;

• performing audit testing over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business;

• assessing whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

• performing analytical procedures to identify any large, unusual or unexpected relationships.

 

REYDON SPORTS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF REYDON SPORTS PLC
- 8 -

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 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.

Gavin Booth (Senior Statutory Auditor)
For and on behalf of DJH Audit Limited, Statutory Auditor
5 Prospect Place
Millenium Way
Pride Park
DE24 8HG
3 June 2025
REYDON SPORTS PLC
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
16,858,844
14,959,696
Cost of sales
(11,822,572)
(10,002,345)
Gross profit
5,036,272
4,957,351
Distribution costs
(2,807,728)
(2,320,959)
Administrative expenses
(1,852,441)
(1,711,263)
Exceptional item
4
(34,654)
-
0
Operating profit
5
341,449
925,129
Interest receivable and similar income
9
1,342
-
0
Interest payable and similar expenses
10
(303,502)
(198,072)
Profit before taxation
39,289
727,057
Tax on profit
11
(6,699)
(172,835)
Profit for the financial year
32,590
554,222
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
REYDON SPORTS PLC
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2024
2024-12-31
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
2,077,758
135,417
Current assets
Stocks
16
7,475,555
5,309,545
Debtors
17
3,133,992
2,311,661
Cash at bank and in hand
43,358
175,541
10,652,905
7,796,747
Creditors: amounts falling due within one year
18
(4,749,753)
(2,981,000)
Net current assets
5,903,152
4,815,747
Total assets less current liabilities
7,980,910
4,951,164
Creditors: amounts falling due after more than one year
19
(953,867)
-
Provisions for liabilities
Deferred tax liability
21
56,325
13,036
(56,325)
(13,036)
Net assets
6,970,718
4,938,128
Capital and reserves
Called up share capital
23
4,000,000
2,000,000
Profit and loss reserves
2,970,718
2,938,128
Total equity
6,970,718
4,938,128
The financial statements were approved by the board of directors and authorised for issue on 3 June 2025 and are signed on its behalf by:
03 June 2025
F W Doherty
Director
Company registration number 02833782 (England and Wales)
REYDON SPORTS PLC
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
109,810
135,417
Investments
14
1,401,719
84
1,511,529
135,501
Current assets
Stocks
16
6,337,437
5,309,545
Debtors
17
2,832,931
2,311,577
Cash at bank and in hand
42,299
175,541
9,212,667
7,796,663
Creditors: amounts falling due within one year
18
(3,723,600)
(2,981,000)
Net current assets
5,489,067
4,815,663
Total assets less current liabilities
7,000,596
4,951,164
Provisions for liabilities
Deferred tax liability
21
10,961
13,036
(10,961)
(13,036)
Net assets
6,989,635
4,938,128
Capital and reserves
Called up share capital
23
4,000,000
2,000,000
Profit and loss reserves
2,989,635
2,938,128
Total equity
6,989,635
4,938,128

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 £51,507 (2023 - £554,222 profit).

The financial statements were approved by the board of directors and authorised for issue on 3 June 2025 and are signed on its behalf by:
03 June 2025
F W Doherty
Director
Company registration number 02833782 (England and Wales)
REYDON SPORTS PLC
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
2,000,000
2,573,906
4,573,906
Year ended 31 December 2023:
Profit and total comprehensive income
-
554,222
554,222
Dividends
12
-
(190,000)
(190,000)
Balance at 31 December 2023
2,000,000
2,938,128
4,938,128
Year ended 31 December 2024:
Profit and total comprehensive income
-
32,590
32,590
Issue of share capital
23
2,000,000
-
2,000,000
Balance at 31 December 2024
4,000,000
2,970,718
6,970,718
REYDON SPORTS PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
2,000,000
2,573,906
4,573,906
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
554,222
554,222
Dividends
12
-
(190,000)
(190,000)
Balance at 31 December 2023
2,000,000
2,938,128
4,938,128
Year ended 31 December 2024:
Profit and total comprehensive income
-
51,507
51,507
Issue of share capital
23
2,000,000
-
2,000,000
Balance at 31 December 2024
4,000,000
2,989,635
6,989,635
REYDON SPORTS PLC
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(850,213)
1,738,314
Interest paid
(118,804)
(198,072)
Income taxes paid
(199,401)
(162,934)
Net cash (outflow)/inflow from operating activities
(1,168,418)
1,377,308
Investing activities
Acquisition of subsidiary
(149,162)
-
Purchase of tangible fixed assets
11,862
(7,881)
Net cash used in investing activities
(137,300)
(7,881)
Financing activities
Loan received in year
563,811
-
0
Repayment of bank loans
(24,848)
(379,085)
Dividends paid to equity shareholders
-
0
(190,000)
Net cash generated from/(used in) financing activities
538,963
(569,085)
Net (decrease)/increase in cash and cash equivalents
(766,755)
800,342
Cash and cash equivalents at beginning of year
(19,481)
(819,823)
Cash and cash equivalents at end of year
(786,236)
(19,481)
Relating to:
Cash at bank and in hand
43,358
175,541
Bank overdrafts included in creditors payable within one year
(829,594)
(195,022)
REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
1
Accounting policies
Company information

Reydon Sports PLC (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 2 Birch Park, Giltbrook, Nottingham, NG16 2AR.

 

The group consists of Reydon Sports PLC 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 has taken advantage of the exemption under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

Parent company disclosure exemptions

In preparing the separate financial statements of the Parent Company, advantage has been taken of the following disclosure exemptions available to qualifying entities:

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.

REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Reydon Sports PLC 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.

1.4
Going concern

The financial statements have been prepared on a going concern basis which assumes the company will continue to trade.

 

Consideration has been given to the risks of reduced turnover, slow payment or non-payment of debts, the value of stock and other assets owned by the company. The going concern of the business will be dependent on achieving minimum income projections as well as on the continued financial support of shareholders and the bank.

 

The company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within the level of its current banking facility. This banking facility has been agreed for the following 12 months in April 2025 with terms which are expected to meet the company's future borrowing needs.

 

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 

1.6
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.

REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -

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 land and buildings
Straight line over the life of the lease
Plant and equipment
20% and 50% straight line
Fixtures and fittings
10%, 20% and 25% straight line
Motor vehicles
25% 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.

1.7
Fixed asset investments

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.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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.

REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
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.

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.

1.10
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.

1.11
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.

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.

REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
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 or , 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 company 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.12
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.

1.13
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.

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.

1.14
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.

1.15
Retirement benefits

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.

1.16
Leases

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.

REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
1.17
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.

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.

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.

Carrying value of stocks

Management review the market value of and demand for its stocks on a periodic basis to ensure stock is recorded in the financial statements at the lower of cost and net realisable value. Any provision for impairment is recorded against the carrying value of stocks. Management use their knowledge of the market conditions, historical experiences and estimates of future events to assess future demand for the Comapny's products and achievable selling prices.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
16,858,844
14,959,696
2024
2023
£
£
Turnover analysed by geographical market
UK
11,840,166
10,202,318
Europe
4,857,334
4,630,887
Rest of world
161,344
126,491
16,858,844
14,959,696
REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
4
Exceptional item
2024
2023
£
£
Expenditure
Exceptional rent charge
34,654
-

During the year a back dated rent review was carried out in respect of one of the properties occupied by the group. This additional charge predated the current period and so the element that relates to the prior year is shown here as exceptional.

5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Exchange losses
116,534
67,419
Depreciation of owned tangible fixed assets
57,935
58,428
(Profit)/loss on disposal of tangible fixed assets
-
40,349
Operating lease charges
245,636
148,596
6
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
13,475
12,100
Audit of the financial statements of the company's subsidiaries
9,000
-
22,475
12,100
7
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 and support
24
23
24
23
Distribution
32
21
31
21
Total
56
44
55
44
REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
7
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,603,100
1,417,226
1,593,775
1,417,226
Social security costs
143,386
116,404
142,801
116,404
Pension costs
56,835
53,484
55,784
53,484
1,803,321
1,587,114
1,792,360
1,587,114
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
234,365
275,606
Company pension contributions to defined contribution schemes
15,332
17,226
249,697
292,832

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
78,771
104,100
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
1,342
-
10
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
122,398
100,806
Other interest on financial liabilities
181,104
97,266
303,502
198,072
REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
11,230
181,244
Adjustments in respect of prior periods
(1,804)
21
Total current tax
9,426
181,265
Deferred tax
Origination and reversal of timing differences
(2,727)
(8,430)
Total tax charge
6,699
172,835

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
39,289
727,057
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
9,822
170,858
Tax effect of expenses that are not deductible in determining taxable profit
3,311
1,811
Adjustments in respect of prior years
(1,804)
21
Tax at marginal rate
(544)
-
0
Tax increase from effect of capital allowances and depreciation
4,654
8,575
Other tax effects for reconciliation between accounting profit and tax expense (income)
(8,740)
(8,430)
Taxation charge
6,699
172,835
12
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
-
190,000
REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
13
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2024
-
0
-
0
359,574
182,282
48,987
590,843
Additions
-
0
-
0
-
0
11,862
-
0
11,862
Business combinations
1,875,989
112,425
-
0
-
0
-
0
1,988,414
At 31 December 2024
1,875,989
112,425
359,574
194,144
48,987
2,591,119
Depreciation and impairment
At 1 January 2024
-
0
-
0
247,647
158,792
48,987
455,426
Depreciation charged in the year
7,178
13,288
27,694
9,775
-
0
57,935
At 31 December 2024
7,178
13,288
275,341
168,567
48,987
513,361
Carrying amount
At 31 December 2024
1,868,811
99,137
84,233
25,577
-
0
2,077,758
At 31 December 2023
-
0
-
0
111,927
23,490
-
0
135,417
Company
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
359,574
182,282
48,987
590,843
Additions
-
0
11,862
-
0
11,862
At 31 December 2024
359,574
194,144
48,987
602,705
Depreciation and impairment
At 1 January 2024
247,647
158,792
48,987
455,426
Depreciation charged in the year
27,694
9,775
-
0
37,469
At 31 December 2024
275,341
168,567
48,987
492,895
Carrying amount
At 31 December 2024
84,233
25,577
-
0
109,810
At 31 December 2023
111,927
23,490
-
0
135,417
REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
1,401,719
84
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024
84
Additions
1,401,635
At 31 December 2024
1,401,719
Carrying amount
At 31 December 2024
1,401,719
At 31 December 2023
84
15
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
S.A.C. Electronics Limited
England
The principal activity is that of the importing and distribution of electronic components.
Ordinary £1
100
Reydon Sports Europe BV
Holland
Dormant
Ordinary £1
100
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
7,475,555
5,309,545
6,337,437
5,309,545

Impairment of stocks

 

The amount of impairment loss included in profit or loss is £213,043 (2023 - £85,275).

REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,804,740
2,082,096
2,530,197
2,082,096
Corporation tax recoverable
8,731
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
20,451
-
Other debtors
77,144
42,656
60,768
42,572
Prepayments and accrued income
243,377
186,909
221,515
186,909
3,133,992
2,311,661
2,832,931
2,311,577
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Loans and borrowings
20
1,487,380
195,022
1,181,487
195,022
Trade creditors
423,340
253,249
412,238
253,249
Amounts owed to group undertakings
-
0
-
0
12,119
-
0
Corporation tax payable
-
0
181,244
11,230
181,244
Other taxation and social security
421,432
312,132
390,630
312,132
Other creditors
2,335,802
1,926,584
1,655,044
1,926,584
Accruals and deferred income
81,799
112,769
60,852
112,769
4,749,753
2,981,000
3,723,600
2,981,000
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Loans and borrowings
20
953,867
-
-
0
-
0
953,867
-
-
-
REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
20
Loans and borrowings
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,611,653
-
0
563,811
-
0
Bank overdrafts
829,594
195,022
617,676
195,022
2,441,247
195,022
1,181,487
195,022
Payable within one year
1,487,380
195,022
1,181,487
195,022
Payable after one year
953,867
-
0
-
0
-
0

The bank overdraft balance of £829,594 (2023 - £195,022) is secured by a fixed and floating charge over the assets of the group.

 

The bank borrowings balance of £1,611,653 (2023 - £Nil) is secured by a fixed and floating charge over the assets of the group.

21
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
56,325
13,036
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
10,961
13,036
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
13,036
13,036
Credit to profit or loss
(2,728)
(2,075)
Acquired on acquisition
46,017
-
Liability at 31 December 2024
56,325
10,961
REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
56,125
53,484

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

Contributions totaling £9,263 (2023 - £867) were payable to the scheme at the end of the year and are included in creditors.

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4,000,000
2,000,000
4,000,000
2,000,000

Rights, preferences and restrictions

 

Ordinary shares have the following rights, preferences and restrictions:

All shares rank equally, each share entitles each holder to 1 vote, entitles the holder to dividend payments or any due distribution the directors declare, each share entitles the holder pari passu to any return of capital on a pro rate basis, and shares are not to be redeemed or liable to be redeemed, whether at the option of the company or shareholders.

During the year the company issued 2,000,000 ordinary £1 shares at par value to the existing shareholders. This share issue was funding by a corresponding reduction in amounts owed to shareholders.

 

 

REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
24
Acquisition of a business

On 30 September 2024 the group acquired 100% percent of the issued capital of S.A.C. Electronics Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
1,988,415
-
1,988,415
Inventories
1,161,584
-
1,161,584
Trade and other receivables
392,972
-
392,972
Cash and cash equivalents
(136,962)
-
(136,962)
Borrowings
(1,059,289)
-
(1,059,289)
Trade and other payables
(46,346)
-
(46,346)
Tax assets
18,619
-
18,619
Other creditor
(871,341)
-
(871,341)
Deferred tax
(46,017)
-
(46,017)
Total identifiable net assets
1,401,635
-
1,401,635
Goodwill
-
Total consideration
1,401,635
The consideration was satisfied by:
£
Shareholder loans
1,401,635
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
488,783
Loss after tax
(20,422)
REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
25
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
186,275
156,927
186,275
156,927
Between two and five years
325,981
431,549
325,981
431,549
512,256
588,476
512,256
588,476
The amount of non-cancellable operating lease payments recognised as an expense during the year was £245,636 (2023 - £148,596).
26
Related party transactions
Transactions with related parties

Entities with common director

 

Prior to becoming a member of the group following its acquisition in the year, the following transactions were made with these related parties:

 

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Company
Other related parties
123,451
237,633
200,075
157,939

Directors of the Company

At the balance sheet date, the Company had outstanding unsecured loans owed to the directors totaling £1,791,723 (2023 - £500,000) which are repayable on demand. Interest is charged to the company at a rate of 3.5% over the Bank of England base rate and during the year £77,838 (2023- £Nil) was charged.

 

During the year the company purchased 100% of the issues share capital S.A.C Electronics Limited from a director. The consideration for the acquisition was £1,405,085 and was funded by the director providing a loan to the company.

 

Shareholders of the Company

At the balance sheet date, the Company had outstanding unsecured loans owed to shareholders totaling £553,225 (2023 - £1,429,511) which are repayable on demand. Interest is charged to the company at a rate of 3.5% over the Bank of England base rate and during the year £103,266 (2023- £85,484) was charged.

 

REYDON SPORTS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
27
Controlling party

The as at the year end date ultimate controlling parties were F E Doherty and F W Doherty.

 

Following a change in shareholdings since the year end date F W Doherty is now the controlling party.

28
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit after taxation
32,590
554,222
Adjustments for:
Taxation charged
6,699
172,835
Finance costs
303,502
198,072
Interest received
(1,342)
-
0
(Gain)/loss on disposal of tangible fixed assets
-
40,349
Depreciation and impairment of tangible fixed assets
57,935
58,428
Foreign exchange loss
116,534
67,419
Movements in working capital:
(Increase)/decrease in stocks
(1,004,425)
179,791
Increase in debtors
(404,334)
(51,030)
Increase in creditors
42,628
552,882
Cash (absorbed by)/generated from operations
(850,213)
1,772,968
29
Analysis of changes in net debt - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
175,541
(132,183)
43,358
Bank overdrafts
(195,022)
(634,572)
(829,594)
(19,481)
(766,755)
(786,236)
Borrowings excluding overdrafts
-
(1,047,841)
(1,047,841)
(19,481)
(1,814,596)
(1,834,077)
Included in the cash flows movement column is £188,172 on the Bank overdraft line and £1,055,448 in the Borrowings excluding overdrafts line in respect to the balances that were in place at the time when the subsidiary was acquired in the year.
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