Company registration number 02793489 (England and Wales)
RICHMOND DESIGN & MARKETING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
RICHMOND DESIGN & MARKETING LIMITED
COMPANY INFORMATION
Directors
Mr D Keene
Mr G Keene
Mr I Grubb
Secretary
Mr G Keene
Company number
02793489
Registered office
33, Bilton Industrial Estate
Humber Avenue
Coventry
United Kingdom
CV3 1JL
Auditor
BDO LLP
2 Snowhill
Birmingham
United Kingdom
B4 6GA
RICHMOND DESIGN & MARKETING LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 12
Statement of comprehensive income
13
Statement of financial position
14
Statement of changes in equity
15
Notes to the financial statements
16 - 38
RICHMOND DESIGN & MARKETING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Review and performance of the Business

The company is an international designer and developer of fully integrated smart airside solutions for the aviation industry, including automated vehicles, systems and software. The company supports some of the world’s leading airports, helping them to become more scalable whilst improving safety, operational efficiencies, passenger experience and sustainability.

 

The company achieves this through a combination of highly-engineered hardware and proprietary software which works together to help aviation customers transform baggage and cargo handling operations. The company's end-to-end transformation solution principally comprises:

 

Hardware:

• Auto-DollyTug®: fully autonomous baggage and cargo handling vehicles

• Auto-Cargo®: fully autonomous vehicle for the handling of heavier cargo loads

 

Software:

• Autonomous Driving Software stack (ADS): in-house software for all our autonomous vehicles

• Auto-Sim®: purpose-built Airport Simulation and modelling, 3D visualisation software tool

• Auto-Connect®: cyber-secure and resilient vehicle fleet SaaS management platform

 

The company’s solutions have been designed from the ground-up and in collaboration with customers to meet the specific needs of the aviation industry, including improved aircraft turnaround, an important KPI.

 

This ground-up approach means Artificial Intelligence (AI) and Autonomous Technology are at the heart of each of our products, with each technology being harnessed to maximise effectiveness and results in the airside environment.

 

In the current year, the company delivered an improved performance across all key financial metrics. In line with the strategic focus on Autonomous vehicles for aviation, the company saw impressive growth in the Autonomous division. Revenue from supply of electrical components in remained broadly consistent at £5.6 million, a 2.0% decrease from £5.7 million in 2023 and revenue from supply of autonomous vehicles grew to £2.2 million, a 925.4% increase from 0.2 million in 2023. Performance was even better than expectations, supported by disciplined and focused approach to cost management notwithstanding the increase in output and an improved gross margin of 37.7% (2023: 18.5%), reflective of the increased mix of Autonomous revenues. As in FY2023, capitalisation of labour costs, alongside the recognition of research and development grants also contributed.

 

Through the Automotive heritage, the company has an extensive track record of servicing customers within a highly regulated industry characterised by complex supply chains, and it is this experience which is leant on to manage resources in a cost-effective and efficient manner. It is this approach to capital management that saw the company end the year with a net cash position of £0.4m (2023: £0.5m). Cash position was further strengthened following the completion of the funding round in the parent company that closed in January 2025, raising a total of £5.3m gross proceeds, of which £3.5m was received in December 2024.

RICHMOND DESIGN & MARKETING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

To gain an understanding of the risk exposure of the company, each area of our business is reviewed annuallyusing a methodology that will assist in measuring, evaluating, documenting and monitoring its risks within all areas of operations.

 

The risk management process is used to identify, monitor, evaluate and escalate risks as they emerge, enabling management to take appropriate action where possible and enabling the Board to keep risk management continually under review.

 

The risk factors below are those believed to be the most material and could adversely affect operations, revenue, profit, cashflow or assets and which may prevent the company from achieving strategic objectives. Additional risks and uncertainties currently unknown, or which are currently believed to be immaterial, may also have an adverse effect on the company.

 

The following summarises the principal risks and uncertainties of the company:

 

1 Systems Risk

The company accounts are maintained on legacy systems which are becoming outdated. This could result in a lack of pertinent Financial and Non- Financial information as the company expands its operations domestically and globally.

Mitigation

In line with its Financial Position and Prospects Procedures (FPPP) created as part of the initial listing of the ultimate parent company (Aurrigo International plc), the Board has resolved to review current systems with a view to implementing a new robust ERP system across all companies within the company. This is expected to be in place prior to significant growth planned in the Aviation sector over coming years.

 

2 Environment

Global warming is leading to more extreme weather conditions. There is a risk to employees of high and low temperatures both in the offices and warehouse environment. This also applies to equipment as predicts will be expected to operate in these more extreme conditions.

Mitigation

Employee working conditions, health and safety are reviewed and appropriate action taken as required. Products have already been tested in hot, humid and cold conditions. Further testing and development as required will be undertaken as environments change.

 

3 Manufacturing at Scale Risk

As its Autonomous products become commercially viable the company will be required to manufacture at scale. There is the risk that a lack of resource and know-how for manufacturing of Autonomous Vehicles at scale will adversely affect its ability to achieve its long term goals.

Mitigation

Product is not yet commercially available and is still in trial and demonstration phases. Current facilities, resources and management skill is expected to facilitate the near term levels of production required to achieve the company's near term forecasts. The Board regularly reviews and questions timescales and options for large-scale production that are expected to be required in coming years.

 

4 Concentration Risk

The company is currently exposed to a high concentration of sales across its top few customers currently in the Automotive industry. The loss of one of these major customers would significantly impair the company's ability to achieve its short-term revenue and profit forecasts. High concentration also carried the risk that customers can place undue influence on pricing and resources.

Mitigation

The Board is mindful of the Automotive concentration exposure. Senior management regularly reviews its strategy to reduce concentration through the addition of new customers and increasing revenue streams from lower concentration customers. Since Automotive sales are for Special Vehicle variants of OEM manufacture and not mass-produced models, the Board believes that there is a reduced risk of losing a contract to a competitor. The financial standing of key customers is monitored regularly. As the Autonomous sector matures, concentration will continue to reduce for these key customers. Additional contracts won through 2024 and due to be transacted through 2025 has reduced the potential risk of concentration in this segment.

RICHMOND DESIGN & MARKETING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

5 Market Acceptance Risk

The company's Autonomous solutions have continued to be developed over the year and have been deployed with additional customers. There exists a risk of low uptake levels given lack of market knowledge of product offerings and what is required to introduce, run and maintain them commercially airsides.

Mitigation

The Board regularly monitors the progress of product development and customer contacts. Multiple vehicle deployments with the lead customer and additional deployments in multiple continents with the new customers gives the Board confidence that products will be accepted and adopted in the medium term.

 

6 Competition Risk

As the company's focus continues to increases on aviation baggage handling, the potential for increased competition increases.

Mitigation

The Board monitors current and potential competition. The Board believes that it has sufficient IP protection in place to reduce the opportunity for competitors to encroach on the Company's first mover advantage.

 

7 Cyber Attack Risk

Cyber-attacks such as ransomware are an increasing threat to all businesses, particularly with the continued Ukrainian invasion by Russia and the group’s recent listing which brings with it public visibility. This can cause the temporary or permanent loss of data and IP and/​or expose the business to extortion.

Mitigation

The Board believes that the company has a robust infrastructure and Cyber resilience policy in place with secure connection to multiple fire walled local servers. Cyber security is recognised as a continually developing risk and the Board is cognizant of implementing best practices.

 

8 Supply Chain Restrictions Risk

Issues with supply chain particularly in relation to silicon chip supply starting through the Covid-19 period still exist, albeit that the issue has eased. Supply restrictions expose the business to reduced output and the risk of loss of contract if performance KPIs cannot be met.

Mitigation

The company operates a multiple source strategy for high- risk components including silicon chips. Potential supply shortages are discussed with customers and long-term supply schedules continue to be agreed in order to secure supply.

 

9 Inflation Risk

With increased global financial uncertainty, including potential trade wars together with UK increases in National Minimum Wage and Employer National Insurance contributions, the risk of inflation on inputs has the potential to increase in the near-term putting pressure on profitability and staff resources.

Mitigation

The company closely monitors spend on all inputs including materials, delivery costs, duty charges and staff costs with a view to minimising the impact of inflationary pressures. Where this cannot be absorbed price increases to customers are considered.

Key performance indicators

Total revenue for the year was £7.7 million, representing a 31.2% increase from £5.9 million in 2023.

 

Supply of electrical components: Revenue remained broadly consistent at £5.6 million, a 2.0% decrease from £5.7 million in 2023.

 

Supply of autonomous vehicles: Revenue grew to £2.2 million, a 925.4% increase from 0.2 million in 2023.

Future developments

The company entered 2025 with strong momentum, particularly in the Autonomous division, supported by a robust sales pipeline and an expanding partner network. The Automotive division continues to provide steady cash generation, underpinning our overall performance. There have been no significant events subsequent to the year end impacting the financial statements.

RICHMOND DESIGN & MARKETING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

On behalf of the board

Mr I Grubb
Director
13 June 2025
RICHMOND DESIGN & MARKETING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

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

Principal activities

The principal activity of the company is that of the supply of electrical components to the automotive industry and the development of electric autonomous vehicles.

Results and dividends

The results for the year are set out on page 13.

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

Directors

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

Mr D Keene
Mr G Keene
Mr I Grubb
Post reporting date events

There have been no significant events subsequent to the year end impacting the financial statements.

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 company’s auditor 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 company’s auditor is aware of that information.

Going Concern

The company has consolidated its trading position in the year, achieving sales of £7.7m and gross profit of £2.9m. Cash and cash equivalents amount to £385k at the year end.

The Directors have prepared detailed financial cashflow forecasts for the period to June 2026, taking into account the improved financial position following the £5.3 million fundraising, in the parent company, completed in January 2025. These projections are based on the company’s detailed annual business plan. Sensitivity analysis has been performed to model the impact of more adverse trends compared to those included in the financial projections in order to estimate the impact of severe but plausible downside risks.

The key sensitivity assumptions applied include:

Mitigating actions available to the company were applied and the Board challenged the assumptions used. After reviewing the forecasts the Board has formed the judgement at the time of approving the financial statements that there is a reasonable expectation that the company has adequate resources to continue in operational existence for at least twelve months from the date of approval of these financial statements.

Auditor

In accordance with the company's articles, a resolution proposing that BDO LLP be reappointed as auditor of the company will be put at a General Meeting.

RICHMOND DESIGN & MARKETING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
On behalf of the board
Mr I Grubb
Director
13 June 2025
RICHMOND DESIGN & MARKETING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

RICHMOND DESIGN & MARKETING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF RICHMOND DESIGN & MARKETING LIMITED
- 8 -

Opinion on the financial statements

In our opinion the financial statements:

 

We have audited the financial statements of Richmond Design and Marketing Limited (“the Company”) for the year ended 31 December 2024 which comprise the Statement of Compresensive Income, the Statement of Financial Position, the Statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

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

 

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

 

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

Other Information

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

 

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.

RICHMOND DESIGN & MARKETING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF RICHMOND DESIGN & MARKETING LIMITED
- 9 -

We have nothing to report in this regard.

Other Companies Act 2006 reporting

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

 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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 Other - please type in ''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 Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor'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.

RICHMOND DESIGN & MARKETING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF RICHMOND DESIGN & MARKETING LIMITED
- 10 -

Extent to which the audit was capable of detecting irregularities, including fraud

 

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:

 

Non-compliance with laws and regulations

Based on:

We considered the significant laws and regulations to be the applicable accounting framework, and UK tax legislation.

 

The Company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the health and safety legislation, employment tax and data protection regulations.

 

Our procedures in respect of the above included:

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

Based on our risk assessment, we considered the areas most susceptible to fraud were management override of controls, capitalisation of intangible assets, and revenue recognition, specifically the manipulation of revenue using fraudulent journals and estimate around percentage of completion of long term revenue contracts.

RICHMOND DESIGN & MARKETING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF RICHMOND DESIGN & MARKETING LIMITED
- 11 -

Our procedures in respect of the above included:

 

 

 

 

 

 

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

 

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.

RICHMOND DESIGN & MARKETING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF RICHMOND DESIGN & MARKETING LIMITED
- 12 -

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.

Jonathan Gilpin (Senior Statutory Auditor)

For and on behalf of BDO LLP, Statutory Auditor

​Birmingham​, UK

13 June 2025

 

 

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

RICHMOND DESIGN & MARKETING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
2024
2023
Notes
£
£
Revenue
3
7,735,969
5,896,299
Cost of sales
(4,823,295)
(4,805,853)
Gross profit
2,912,674
1,090,446
Administrative expenses
(5,867,710)
(5,393,959)
Other operating income
750,141
796,089
Operating loss
4
(2,204,895)
(3,507,424)
Investment income
6
2,951
-
Finance costs
7
(43,689)
(44,989)
Loss before taxation
(2,245,633)
(3,552,413)
Tax on loss
8
27,987
189,990
Loss and total comprehensive loss for the financial year
(2,217,646)
(3,362,423)

The income statement has been prepared on the basis that all operations are continuing operations.

 

There are no comprehensive income or expenses other than the loss for the current and the preceeding financial

year.

 

RICHMOND DESIGN & MARKETING LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 14 -
2024
2023
Notes
£
£
£
£
Non-current assets
Intangible assets
9
6,442,446
5,973,487
Property, plant and equipment
10
2,066,589
703,349
8,509,035
6,676,836
Current assets
Inventories
11
1,065,297
1,676,681
Trade and other receivables
13
3,351,501
2,352,630
Cash and cash equivalents
384,819
463,574
4,801,617
4,492,885
Current liabilities
14
(13,242,619)
(8,784,498)
Net current liabilities
(8,441,002)
(4,291,613)
Total assets less current liabilities
68,033
2,385,223
Non-current liabilities
14
(3,317,710)
(3,570,254)
Net liabilities
(3,249,677)
(1,185,031)
Equity
Called up share capital
21
10,000
10,000
Capital contribution reserve
22
510,545
388,545
Retained losses
(3,770,222)
(1,583,576)
Total equity
(3,249,677)
(1,185,031)
The financial statements were approved by the board of directors and authorised for issue on 13 June 2025 and are signed on its behalf by:
Mr I Grubb
Director
Company registration number 02793489
RICHMOND DESIGN & MARKETING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
Share capital
Capital contribution reserve
Retained (losses)/ earnings
Total
£
£
£
£
Balance at 1 January 2023
10,000
142,580
1,717,356
1,869,936
Year ended 31 December 2023:
Loss and total comprehensive loss for the year
-
-
(3,362,423)
(3,362,423)
Transactions with owners in their capacity as owners:
Share option expense
-
245,965
-
0
245,965
Deferred tax credit on share based payment transactions
-
-
61,491
61,491
Balance at 31 December 2023
10,000
388,545
(1,583,576)
(1,185,031)
Year ended 31 December 2024:
Loss and total comprehensive loss for the year
-
-
(2,217,646)
(2,217,646)
Transactions with owners in their capacity as owners:
Share option expense
-
122,000
-
122,000
Deferred tax on share based payments
-
-
31,000
31,000
Balance at 31 December 2024
10,000
510,545
(3,770,222)
(3,249,677)
RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
1
Accounting policies
Company information

Richmond Design & Marketing Limited is a private company limited by shares incorporated in England and Wales. The registered office is 33, Bilton Industrial Estate, Humber Avenue, Coventry, United Kingdom, CV3 1JL. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

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 £1.

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

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

 

Where required, equivalent disclosures are given in the group accounts of Aurrigo International plc. The group accounts of Aurrigo International plc are available to the public and can be obtained from the Registered Office.

RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.2
Going concern

The company has consolidated its trading position in the year, achieving sales of £7.7m and gross profit of £2.9m. Cash and cash equivalents amount to £385k at the year end.

The Directors have prepared detailed financial cashflow forecasts for the period to June 2026, taking into account the improved financial position following the £5.3 million fundraising, in the parent company, completed in January 2025. These projections are based on the company’s detailed annual business plan. Sensitivity analysis has been performed to model the impact of more adverse trends compared to those included in the financial projections in order to estimate the impact of severe but plausible downside risks.

The key sensitivity assumptions applied include:

Mitigating actions available to the company were applied and the Board challenged the assumptions used. After reviewing the forecasts the Board has formed the judgement at the time of approving the financial statements that there is a reasonable expectation that the company has adequate resources to continue in operational existence for at least twelve months from the date of approval of these financial statements.

1.3
Revenue

Revenue 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.

 

The Company applies IFRS 15 ‘Revenue from contracts with customers’. Under IFRS 15, the Company applies the 5-step method to identify contracts with its customers, determine performance obligations arising under those contracts, set an expected transaction price, allocate that price to the performance obligations, and then recognises revenue as and when those obligations are satisfied.

 

Supply of automotive components

Goods are supplied under contracts where the key performance obligations for the Company are the manufacturing and delivery of the products. The fair value of the revenue, being the price per unit net of volume discounts and sales taxes, is recognised as revenue at a point in time at the point of transfer of control to the customer, which is typically on dispatch from the Company’s premises. The transaction price includes an element of variable consideration in respect of volume discounts. The revenue recognised is constrained to the extent that it is highly probably that a significant reversal in the amount of cumulative revenue recognised will not occur when any uncertainty associated with the volume discounts is subsequently resolved.

Within the autonomous sector there are two types of revenue recognised:

 

Supply of autonomous vehicles

Typically, vehicles are supplied under contracts where the key performance obligations for the Company are the manufacturing and delivery of the vehicles. The fair value of the revenue, being the price per vehicle net of volume discounts and sales taxes, are recognised as revenue at a point in time at the point of transfer of control to the customer, which is typically on dispatch from the Company’s premises. The transaction price includes an element of variable consideration in respect of volume discounts. The revenue recognised is constrained to the extent that it is highly probably that a significant reversal in the amount of cumulative revenue recognised will not occur when any uncertainty associated with the volume discounts is subsequently resolved.

 

RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -

When revenue recognised in respect of a customer contract exceeds amounts received or receivable from a customer at that time a contract asset is recognised. If amounts received or receivable from a customer exceed revenue recognised for a contract, for example if the Company receives an advance payment from a customer, a contract liability is recognised.

 

Simulation contracts

Contracts for autonomous proof of concept, simulation and demonstration are supplied under contracts which specify deliverables over a specified time period. Revenue is recognised based on the percentage of completion and matched to costs incurred in order to deliver the project.

 

Contract assets and liabilities

Contract assets and liabilities are presented on the balance sheet to reflect the cumulative revenue recognised in excess of, or short of, amounts billed to customers. The Company assesses recoverability of contract assets periodically to ensure they are not impaired.

1.4
Intangible assets other than goodwill

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

 

Research expenditure is written off against profits in the year in which it is incurred.

 

Development costs that are directly attributable to the design and testing of vehicles, systems and software products controlled by the Company are recognised as intangible assets when the following criteria are met:

 

As a result of the above, costs have only been capitalised from the point at which certain projects became commercially feasible.

 

Directly attributable costs that are capitalised as part of the vehicle, system or software include employee and contractor costs. Other development expenditures that do not meet these criteria, as well as ongoing maintenance and costs associated with routine upgrades and enhancements, are recognised as an expense, as incurred. Where grant income has been received as part of the development process the whole cost of the asset is capitalised and the associated grant income is deferred and shown within payables.

 

The depreciable amount of an intangible asset with a finite useful life is allocated on a systematic basis over its useful life. Amortisation begins when the asset is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by management.

 

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

 

Patents - 20 years straight line

Development costs - 10 years straight line

RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.5
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Autonomous Vehicles
20% Straight line per annum
Tooling
25% - 33% Straight line per annum
Plant and machinery
20% - 33% Straight line per annum
Fixtures & Fittings
25% - 33% Straight line per annum
Motor vehicles
20% Straight line per annum
Right of use asset - Property
Over the life of the lease
Right of use asset - Motor vehicles
Over the life of the lease

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 income statement.

1.6
Impairment of tangible and intangible assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

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.

 

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.

1.7
Inventories

Inventories 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 inventories to their present location and condition.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.8
Cash and cash equivalents

Cash and cash equivalents 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.

RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.9
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified at fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified at fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.

RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
Impairment of financial assets

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

 

The Company applies a forward-looking model of IFRS 9 to create an estimation of the expected credit losses arising in the next year on its financial assets, using an expectation derived from historical irrecoverable percentages as adjusted for predicted credit risk adjustments arising through forecast market changes.

 

If an asset is impaired, the impairment loss is the difference between the carrying value 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 when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.10
Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, and loans from fellow group companies, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.11
Equity instruments

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

1.12
Taxation

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

RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 company’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.

 

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 income statement. Deferred tax assets and liabilities are offset when the company has 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.

1.13
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 inventories or non-current 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.

1.14
Retirement benefits

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

1.15
Share-based payments

The Company's ultimate parent entity has issued equity settled share based payments which are measured at fair value at the date of grant by reference to the fair value of the equity instruments of Aurrigo International Plc granted using the Black-Scholes Model. The fair value is expensed on a straight line basis over the vesting period and recognised as an expense in the income statement with a corresponding increase in reserves.

 

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 23 -
1.16
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 24 -
1.17
Grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. Government grants relating to research and development activities are recognised as income over the periods when the related costs are incurred. A grant received before the recognition criteria are satisfied is recognised as deferred income.

 

Research and development expenditure credits

Where the Company receives research and development expenditure credits (“RDEC”) it accounts for these as government grant income within operating income as it more closely aligns with grant income as opposed to a taxation credit. The income is recognised on a systematic basis over the periods in which the entity recognises expenses for the related costs for which the grants are intended to compensate, under IAS 20 ‘Accounting for Government Grants and Disclosures’.

 

As well as receiving RDEC, the Company also receives R&D tax credits on the development expenditure it makes on the commercial projects it undertakes. These taxation credits are considered to reflect enhanced tax relief and as such are shown as a reduction in income tax or an increase in receivables due from HM Revenue & Customs.

1.18
Foreign exchange

Transactions in currencies other than 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.

RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
2
Critical accounting estimates and judgements

In the application of the company’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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

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

 

Autonomous vehicles

The Directors make a judgement as to the appropriate classification of each autonomous vehicle constructed during a period. Where vehicles are constructed for sale, autonomous vehicles are classified as inventory and are measured at the lower of cost and estimated selling price less costs to complete and sell. Where vehicles are intended for use on a continuing basis in the Company's activities they are classified as tangible fixed assets and are measured at depreciated cost.

 

In addition there are estimation uncertainties around determining labour and overheads absorbed during the construction of vehicles as well as estimating likely selling price less costs to complete and sell.

 

Key sources of estimation uncertainty

 

Useful lives and impairment of development costs

Development costs included within intangible fixed assets are amoritsed over their estimated useful life of 10 years, once they are brought into use. The selection of the estimated lives requires the exercise of management judgement. Useful lives are regularly reviewed and should management’s assessment of useful lives shorten or increase then amortisation charges in the financial statements would increase or decrease and carrying amounts of the assets would change accordingly.

 

The Company is required to consider, on an annual basis, whether indications of impairment relating to such assets exist and if so, perform an impairment test. The recoverable amount is determined based on the higher of value in use calculations or fair value less costs to sell. The use of value in use method requires the estimation of future cash flows and the choice of a discount rate in order to calculate the present value of the cash flows. The Directors are satisfied that all recorded assets will be fully recovered from expected future cash flows.

 

Capitalisation of development costs

As outlined in note 1.4 the Company recognises as intangible fixed assets development costs that are considered to meet the relevant capitalisation criteria. The measurement of such costs and assessment of their eligibility in line with the appropriate capitalisation criteria requires judgement and estimation around the time spent by eligible staff on development, expectations around the ability to generate future economic benefit in excess of cost and the point at which technical feasibility is established. The costs incurred on the intangible fixed assets were the key growth area for the Company's admission to AIM which helps to justify the capitalisation and demonstrates the Company's ability to capitalise these assets.

 

Share based payments

Share options have been fair valued excluding implied exit probabilities. At each reporting period end the Company makes an assessment of the likelihood of a range of exit routes, including implied probabilities, dates and values for each, and apply this to the outstanding share options yet to be exercised. The share-based payment expense included in the Statement of Comprehensive Income is then adjusted to reflect the straight-line expensing of the underlying fair value through to expected exit.

RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Critical accounting estimates and judgements
(Continued)
- 26 -
Revenue and margin recognition

The Group recognises revenue from certain long-term contracts over time in accordance with IFRS 15 – Revenue from Contracts with Customers, using the input method based on costs incurred to date relative to total estimated contract costs. This approach requires significant estimation and judgement, particularly in assessing the areas of total contract costs, the measurement of progress towards completion and the recovery of contract assets. Due to the inherent uncertainty in estimating future costs and performance outcomes, actual results may differ from those estimates. A significant increase in total estimated costs or a decrease in expected recoveries may materially impact revenue recognition and profit margins on affected contracts.

Incremental borrowing rates applied to calculate lease liabilities

The Group has used the incremental borrowing rate to calculate the value of the lease liabilities relating to its property lease liabilities recognised under IFRS 16. The discount rate used reflects the estimated risks associated with borrowing against similar assets by the Group, incorporating assumptions for similar terms, security and funds at that time.

 

The carrying amounts of such liabilities is disclosed within note 17.

Going concern

As part of the going concern assessment, management has prepared detailed cash flow forecasts for the period to June 2026. The preparation of these forecasts requires the use of significant judgements and estimates, particularly in relation to projected revenue streams, operating costs, working capital requirements, and the timing of future cash inflows and outflows. These estimates are inherently uncertain and sensitive to changes in economic conditions, customer demand, and funding availability. Management has considered a range of scenarios and mitigating actions, including access to existing financing facilities and cost reduction strategies, in concluding that the Company has sufficient resources to continue as a going concern. These forecasts form the basis of the Directors’ assessment that the going concern basis of preparation remains appropriate.

3
Revenue
2024
2023
£
£
Revenue analysed by class of business
Supply of electrical components
5,573,069
5,685,377
Supply of autonomous vehicles
2,162,900
210,922
7,735,969
5,896,299
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
7,041,609
5,854,747
Europe
466,730
6,901
Rest of World
227,630
34,651
7,735,969
5,896,299
RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Revenue
(Continued)
- 27 -
2024
2023
£
£
Other income
Grants received
643,348
796,089
Research and development expenditure credit
106,793
-
0
4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses
20,958
11,659
Government grants
(643,348)
(796,089)
Research and development expenditure credit
(106,793)
-
Depreciation of property, plant and equipment
442,472
260,287
Profit on disposal of property, plant and equipment
(28,687)
-
Amortisation of intangible assets (included within administrative expenses)
382,225
294,635
Cost of inventories recognised as an expense
4,017,695
4,227,750
Equity-settled share-based payments expense
122,000
245,965

Audit fees in respect of the Company are payable by the ultimate parent company and not recharged.

5
Employees

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

2024
2023
Number
Number
Directors
3
3
Production
34
26
Research and development
25
18
Sales
6
8
Administration
12
11
Total
80
66

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,149,676
2,299,408
Social security costs
332,108
235,977
Pension costs
84,978
74,779
2,566,762
2,610,164
RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
5
Employees
(Continued)
- 28 -

In addition to the above, further employee costs (including directors) have been incurred as part of (i) intangible development costs and (ii) autonomous vehicles (property, plant and equipment) during the year, and are shown within additions in notes 9 and 10 respectively. The total employment costs which have been capitalised during the year amounts to £708,839 (2023: £582,903).

6
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
2,951
-
0
7
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
12,771
8,125
Interest on lease liabilities
30,918
36,864
43,689
44,989
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on losses for the current period
(58,857)
(174,790)
Adjustments in respect of prior periods
(130)
18,002
Total UK current tax
(58,987)
(156,788)
Deferred tax
Origination and reversal of temporary differences
-
0
(33,202)
Deferred tax on share-based payments charge
31,000
-
31,000
(33,202)
Total tax (credit)
(27,987)
(189,990)
RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Taxation
(Continued)
- 29 -

The charge for the year can be reconciled to the loss per the income statement as follows:

2024
2023
£
£
Loss before taxation
(2,245,633)
(3,552,413)
Expected tax credit based on a corporation tax rate of 25.00% (2023: 23.52%)
(561,408)
(835,528)
Effect of expenses not deductible in determining taxable profit
1,085
457
Change in unrecognised deferred tax assets
464,282
597,303
Adjustment in respect of prior years
(130)
18,002
Effect of change in UK corporation tax rate
-
0
(41,475)
Group relief
12,550
-
0
Depreciation on assets not qualifying for tax allowances
-
0
522
Research and development tax credit
144,692
344,082
Share based payment charge
-
61,491
Deferred tax adjustments in respect of prior years
-
8,866
Other
(3,172)
(1,927)
Surrender of tax losses for R&D tax credit refund
(85,886)
(174,790)
Additional deduction for R&D expenditure
-
(166,993)
Taxation credit for the year
(27,987)
(189,990)

The UK corporation tax rate rose from 19% to 25% on 1 April 2023. In the comparative year, the tax rate shown of 23.52% is a composite figure and reflects that two different rates were applied during the prior year.

 

Deferred tax balances at the reporting date are therefore measured at 25% (2023 - 25%), being the substantively enacted rate at the balance sheet date.

RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
9
Intangible fixed assets
Patents
Development Costs
Total
£
£
£
Cost
At 31 December 2023
147,160
6,299,272
6,446,432
Additions - internally generated
-
0
799,134
799,134
Additions - purchased
52,050
-
0
52,050
At 31 December 2024
199,210
7,098,406
7,297,616
Amortisation and impairment
At 31 December 2023
16,449
456,496
472,945
Charge for the year
8,791
373,434
382,225
At 31 December 2024
25,240
829,930
855,170
Carrying amount
At 31 December 2024
173,970
6,268,476
6,442,446
At 31 December 2023
130,711
5,842,776
5,973,487

Development costs capitalised are in relation to the manufacture of autonomous vehicles, some of which are not in commercial production yet and therefore not currently being amortised. During the current year the autonomous vehicles which have now been brought into production, £5,259,463 (2023: £2,883,130) included within the above cost for development costs as at 31 December 2024, are now being amortised over their estimated useful life of 10 years.

 

The Directors prepare forecasts which show the projected growth of the business and use of these assets, which forms a key part of the Company’s future strategy. The forecasts include an assessment of the likely commercialisation of the technology based on current demand and anticipated market growth strategies, profiled on a discounted cash flow basis. The Directors do not consider that the impairment review shows sensitivity to any discounted cashflow inputs.

RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
10
Property, plant and equipment
Autonomous Vehicles
Plant and machinery
Tooling
Fixtures & Fittings
Motor vehicles
Right of use asset - Property
Right of use asset - Motor vehicles
Total
£
£
£
£
£
£
£
£
Cost
At 1 January 2024
180,113
390,969
14,448
223,505
28,337
654,278
68,161
1,559,811
Additions
1,644,909
16,429
4,885
33,557
-
0
31,549
75,591
1,806,920
Disposals
-
0
(131,796)
-
0
(6,400)
-
0
-
0
(68,161)
(206,357)
At 31 December 2024
1,825,022
275,602
19,333
250,662
28,337
685,827
75,591
3,160,374
Accumulated depreciation and impairment
At 1 January 2024
60,952
336,800
9,655
153,945
24,594
202,355
68,161
856,462
Charge for the year
129,511
32,625
2,148
28,556
1,893
231,950
15,789
442,472
Eliminated on disposal
-
0
(131,796)
-
0
(5,192)
-
0
-
0
(68,161)
(205,149)
At 31 December 2024
190,463
237,629
11,803
177,309
26,487
434,305
15,789
1,093,785
Carrying amount
At 31 December 2024
1,634,559
37,973
7,530
73,353
1,850
251,522
59,802
2,066,589
At 31 December 2023
119,161
54,169
4,793
69,560
3,743
451,923
-
0
703,349
RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Property, plant and equipment
(Continued)
- 32 -

IFRS 16 has been adopted and leased assets are presented above as right of use assets. The right of use assets are depreciated over the shorter of the asset’s useful life and the lease term, on a straight line basis.

 

The property leases are discounted at the Company’s estimated incremental cost of borrowing at a rate between 5% and 9.24%. This has been derived by using the average borrowing rate for the transportation industry, which the Group is part of, and the average market rates for property leases.

 

The motor vehicle leases are discounted at the Group’s incremental cost of borrowing at a rate of 6%, using the average borrowing rate for the transportation industry, which the Group is part of, and the average market rates for vehicle leases.

11
Inventories
2024
2023
£
£
Raw materials
736,146
1,039,673
Work in progress
145,580
274,118
Finished goods
183,571
362,890
1,065,297
1,676,681

The Company has recognised a total provision of £227,000 (2023 - £152,000) against its inventories.

12
Contracts with customers
2024
2023
2023
Period end
Period end
Period start
£
£
£
Contracts in progress
Contract assets
219,034
-
-
Contract liabilities
(63,007)
-
-

During the year the company commenced sales which involve multiple performance obligations. Revenue is recognised over time as performance obligations are fulfilled, using the input method. The corresponding asset is recognised as a ‘contract asset’. Please refer to note 3 for further details regarding revenue recognition. The contract asset is expected to be fully recovered during the year ended 31 December 2025.

RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
13
Trade and other receivables
2024
2023
£
£
Trade receivables
929,086
1,086,714
Provision for bad and doubtful debts
(42,100)
(37,179)
886,986
1,049,535
Contract assets (note 12)
219,034
-
Corporation tax recoverable
165,650
330,422
VAT recoverable
26,691
-
Amounts owed by fellow group undertakings
1,482,743
226,990
Prepayments
570,397
745,683
3,351,501
2,352,630

The Company applies the IFRS 9 simplified approach to measuring expected credit losses using a lifetime expected credit loss provision for trade receivables.

 

Around 50% of sales made are self-billed by the customers. The average credit period given on self-billed sales is 60 days from the self-billed date. For other sales the average credit period given is 30 days. For autonomous sales specific terms are agreed in advance. The Company has assessed that it has little credit risk and anticipates that all balances will be fully recoverable.

 

Amounts owed by fellow group undertakings are not subject to a formal loan agreement, are interest free and hence treated as repayable on demand.

 

The expected credit loss provision for impairment is considered based upon the historic rate of bad debt write off for the historic trading of the Company. There is limited established trading results for the autonomous sales operating segment and hence no credit loss provision for impairment is considered. However, sales are typically of high individual value with customers who have very secure credit ratings, and therefore credit risk is assessed to be minimal.

 

Overall, the total provision for impairment for all trade receivables, except for any specific provisions required, has been assessed as immaterial and therefore not recognised in the financial statements.

14
Liabilities
Current
Non-current
2024
2023
2024
2023
Notes
£
£
£
£
Borrowings
15
25,200
30,000
-
0
25,000
Trade and other payables
16
12,572,950
8,200,887
-
0
-
0
Taxation and social security
90,272
135,129
-
-
Lease liabilities
17
261,197
201,234
74,764
274,631
Deferred income
19
293,000
217,248
3,242,946
3,270,623
13,242,619
8,784,498
3,317,710
3,570,254
RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
15
Borrowings
Current
Non-current
2024
2023
2024
2023
£
£
£
£
Borrowings held at amortised cost:
Bank loans
25,000
30,000
-
25,000
Directors' loans
200
-
-
-

The Company's borrowings are received under the Coronavirus Business Interruption Loan Scheme (“CBILS”) on which undiscounted amounts of £25,000 (2023 - £55,000) are due, and which has an interest rate of 5% - 9.24%. The Company was entitled to a Business Interruption Payment for the first 12 months up to a capped amount to cover payments of the interest.

 

Of these loans, £nil (2023 - £nil) falls due for repayment in more than 5 years.

16
Trade and other payables
2024
2023
£
£
Trade payables
1,110,374
876,018
Contract liabilities (note 12)
63,007
-
Amount owed to parent undertaking
10,807,773
7,025,874
Amounts owed to fellow group undertakings
68,016
11,271
Amounts owed to related parties
2,421
2,421
Accruals and deferred income
520,966
285,303
Other payables
393
-
12,572,950
8,200,887

Amounts owed to parent undertakings are not subject to a formal loan agreement, are interest free and hence treated as repayable on demand.

17
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
275,427
233,369
In two to five years
76,233
282,212
Total undiscounted liabilities
351,660
515,581
Future finance charges and other adjustments
(15,699)
(39,717)
Lease liabilities in the financial statements
335,961
475,864
RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
17
Lease liabilities
(Continued)
- 35 -

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2024
2023
£
£
Current liabilities
261,197
201,234
Non-current liabilities
74,764
274,631
335,961
475,865
2024
2023
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
30,918
36,864

The Company's right of use asset additions and depreciation charge recognised on leases in the year is shown in note 10 and interest expense in note 7.

 

RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 36 -
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Accelerated capital allowances
Capitalised development costs
Retirement benefit obligations
Share based payments
Losses
Total
£
£
£
£
£
£
Liability at 1 January 2023
20,734
625,219
-
0
-
0
-
645,953
Asset at 1 January 2023
-
0
-
0
(5,040)
(63,936)
(482,284)
(551,260)
Deferred tax movements in prior year
Charge/(credit) to profit or loss
222,812
-
-
-
(256,014)
(33,202)
Credit direct to equity
-
-
-
(61,491)
-
(61,491)
Liability at 1 January 2024
243,546
625,219
-
-
-
868,765
Asset at 1 January 2024
-
0
-
0
(5,040)
(125,427)
(738,298)
(868,765)
Deferred tax movements in current year
Charge/(credit) to profit or loss
(790,460)
961,118
5,040
28,791
(173,489)
31,000
Credit direct to equity
-
-
-
(31,000)
-
(31,000)
Liability at 31 December 2024
-
1,586,337
-
-
-
1,586,337
Asset at 31 December 2024
(546,914)
-
0
-
0
(127,636)
(911,787)
(1,586,337)
19
Deferred grant income
2024
2023
£
£
Arising from government grants
3,535,946
3,487,871

Deferred revenues are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2024
2023
£
£
Current liabilities
293,000
217,248
Non-current liabilities
3,242,946
3,270,623
3,535,946
3,487,871
RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 37 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
84,978
74,779

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. Outstanding contributions at the year end amounted to £13,164 (2023: £17,500).

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
10,000
10,000
10,000
10,000
22
Capital contribution reserve
2024
2023
£
£
At the beginning of the year
388,545
142,580
Additions
122,000
245,965
At the end of the year
510,545
388,545
23
Acquisition of a business

On 31 August 2024 the company acquired the trade and assets of GB Wiring Systems Ltd, a fellow subsidiary at book value.

Book Value
£
Cash and cash equivalents
42,120
Property, plant and equipment
13,899
Inventories
13,929
Trade and other receivables
181,134
Trade and other payables
193,496
57,586
Total consideration
57,586
Satisfied by:
£
Amounts owed to DG Automotive Limtied
57,586
57,586
RICHMOND DESIGN & MARKETING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 38 -
24
Contingent liabilities

There are no outstanding capital commitments, guarantees, or contingent liabilities at the year end.

25
Events after the reporting date

There have been no significant events subsequent to the year end impacting the financial statements.

26
Related party transactions

The Company has taken advantage of the exemption available in FRS 101 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group, which would otherwise be required by IAS 24 'Related party disclosures'.

27
Controlling party

The immediate parent company is DG Automotive Limited. The ultimate parent company is Aurrigo International plc. The accounts of these companies are available from the Registered Office.

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