Company registration number 08233870 (England and Wales)
RUBBER ROAD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
Tavistock House South
Tavistock Square
Rayner Essex LLP
London
Chartered Accountants
WC1H 9LG
RUBBER ROAD LIMITED
COMPANY INFORMATION
Directors
B A Grant
F Lake
K Mizen
M M Precious
Company number
08233870
Registered office
Attimore Barn
Ridgeway
Welwyn Garden City
Hertfordshire
AL7 2AD
Auditor
Rayner Essex LLP
Tavistock House South
Tavistock Square
London
WC1H 9LG
RUBBER ROAD LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
RUBBER ROAD LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
- 1 -

The directors present the strategic report for the year ended 31 January 2025.

Review of the business

Rubber Road Ltd is a company that specializes in designing, developing, and wholesaling licensed and proprietary consumer products to retailers and distributors worldwide. The company's strategy is to build and market unique, collectible products from highly recognizable household brands that excite consumers.

 

Our main strengths are designing and developing innovative products using household name licenses and brands, ensuring the products remain relevant, appealing, and protected from copying and infringements

 

Trading performance for the year ending 31st January 2025 was better than initially forecast, primarily due to increased trade with key US retailers. The directors are very pleased with the results and are confident in continued growth in 2025/2026.

 

The company is well-positioned for future success, having onboarded many new accounts and further developed its popular brands and product ranges in new and existing markets.

 

Rubber Road has also made significant progress in developing a new leadership team, appointing several new executives across the business to create a strong platform for improvement and enhanced trading performance. We also invest significant time in developing and training our employees.

Principal risks and uncertainties

The impact of US Tariff’s on goods from China;

The impact of high US tariff’s on goods manufactured in China may affect the upcoming financial year, due to the unpredictable and volatile nature of the current US Government trading policies. However, the leadership team has taken action to preserve sales and margins where possible, by heavily focusing on new markets and strengthening partnerships with existing non-US based customers.


Fluctuations in foreign exchange rates;

The international nature of Rubber Road's business results in the potential for currency losses, which we manage by trading in USD currency with customers and suppliers.


The loss of a major trading relationship;

The company has long-standing relationships with some major customers, and the leadership team invests significant time in maintaining regular communication to mitigate the risk of losing such relationships, whilst attending tradeshows around the world to connect directly with our partners and key decision makers.

 

Price Risk;

Rubber Road is focused on designing and developing unique product lines and brands (such as Tubbz, Countdown Characters, Quarter Arcades etc) to avoid comparisons to competitors products, and as such, being dragged into competitive pricing pressures.

 

Credit Risk;

The Credit Risk is mitigated by our robust credit policy for all Customers, by evaluating, validating and monitoring tools at our disposal, such as the Credit Safe subscribed platform, and by regularly reviewing publicly available financial statements. We have a healthy credit insurance policy in place from a reputable provider, whilst also maintaining clear trading terms and conditions with all customers. 


A product safety issue;

Rubber Road operates in the consumer products industry, which is subject to significant regulation, including stringent laws relating to product safety. The leadership team regularly monitors the product range, provides clear guidelines and assurances that all social, legal, health, and safety responsibilities are adhered to, and has its own compliance department to review and assess new products, as well as regularly visiting suppliers to ensure required standards are met.

Other information and explanations

We look forward to reporting on the 2025/26 financial statements and developments when they are to be filed next year.

RUBBER ROAD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 2 -

On behalf of the board

B A Grant
Director
6 June 2025
RUBBER ROAD LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2025
- 3 -

The directors present their annual report and financial statements for the year ended 31 January 2025.

Principal activities

The principal activity of the company continued to be to design and develop wholesale licensed and proprietary consumer products for sale to retailers and distributors worldwide.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £290,000. 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:

B A Grant
F Lake
K Mizen
M M Precious
Auditor

Rayner Essex LLP were appointed as auditor to the company and will be deemed to be reappointed in accordance with section 487(2) of the Companies Act 2006.

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 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.

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.

RUBBER ROAD LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 4 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
B A Grant
Director
6 June 2025
RUBBER ROAD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RUBBER ROAD LIMITED
- 5 -
Opinion

We have audited the financial statements of Rubber Road Limited (the 'company') for the year ended 31 January 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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 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:

RUBBER ROAD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RUBBER ROAD LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

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 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 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.

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

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

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

 

RUBBER ROAD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RUBBER ROAD LIMITED (CONTINUED)
- 7 -

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

 

 

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

 

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

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Other matters which we are required to address

The financial statements of the prior period were audited by the predecessor auditor. The opinion expressed by the predecessor auditor was unmodified and signed on 15 October 2024.

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.

Lucy Kate Ghawss FCA (Senior Statutory Auditor)
For and on behalf of Rayner Essex LLP, Statutory Auditor
Chartered Accountants
Tavistock House South
Tavistock Square
London
WC1H 9LG
9 June 2025
RUBBER ROAD LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2025
- 8 -
Year
Period
ended
ended
31 January
31 January
2025
2024
Notes
£
£
Turnover
3
14,517,184
10,882,340
Cost of sales
(10,968,335)
(8,169,577)
Gross profit
3,548,849
2,712,763
Administrative expenses
(2,774,651)
(2,740,559)
Other operating income
34,116
301,317
Operating profit
4
808,314
273,521
Interest payable and similar expenses
7
(322,032)
(271,633)
Profit before taxation
486,282
1,888
Tax on profit
8
(18,936)
26,576
Profit for the financial year
467,346
28,464

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

RUBBER ROAD LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2025
- 9 -
Year
Period
ended
ended
31 January
31 January
2025
2024
£
£
Profit for the year
467,346
28,464
Other comprehensive income
Revaluation of tangible fixed assets
-
0
774,330
Tax relating to other comprehensive income
(14,130)
(147,122)
Total other comprehensive income for the year
(14,130)
627,208
Total comprehensive income for the year
453,216
655,672
RUBBER ROAD LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2025
31 January 2025
- 10 -
2025
2024
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,862,129
1,820,622
Current assets
Stocks
11
1,693,058
1,452,285
Debtors
12
9,357,068
6,821,594
Cash at bank and in hand
3,407
81,078
11,053,533
8,354,957
Creditors: amounts falling due within one year
13
(7,428,671)
(4,702,161)
Net current assets
3,624,862
3,652,796
Total assets less current liabilities
5,486,991
5,473,418
Creditors: amounts falling due after more than one year
14
(1,114,652)
(1,297,361)
Provisions for liabilities
Deferred tax liability
16
193,247
160,181
(193,247)
(160,181)
Net assets
4,179,092
4,015,876
Capital and reserves
Called up share capital
19
100
100
Revaluation reserve
613,078
627,208
Profit and loss reserves
3,565,914
3,388,568
Total equity
4,179,092
4,015,876

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 6 June 2025 and are signed on its behalf by:
B A Grant
Director
Company registration number 08233870 (England and Wales)
RUBBER ROAD LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2025
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
100
-
0
3,620,104
3,620,204
Period ended 31 January 2024:
Profit
-
-
28,464
28,464
Other comprehensive income:
Revaluation of tangible fixed assets
-
774,330
-
774,330
Tax relating to other comprehensive income
-
(147,122)
-
0
(147,122)
Total comprehensive income
-
627,208
28,464
655,672
Dividends
9
-
-
(260,000)
(260,000)
Balance at 31 January 2024
100
627,208
3,388,568
4,015,876
Year ended 31 January 2025:
Profit
-
-
467,346
467,346
Other comprehensive income:
Tax relating to other comprehensive income
-
(14,130)
-
0
(14,130)
Total comprehensive income
-
(14,130)
467,346
453,216
Dividends
9
-
-
(290,000)
(290,000)
Balance at 31 January 2025
100
613,078
3,565,914
4,179,092
RUBBER ROAD LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2025
- 12 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
783,338
87,184
Interest paid
(322,032)
(271,633)
Net cash inflow/(outflow) from operating activities
461,306
(184,449)
Investing activities
Purchase of tangible fixed assets
(99,114)
(27,320)
Net cash used in investing activities
(99,114)
(27,320)
Financing activities
Repayment of borrowings
(28,902)
(148,259)
Repayment of bank loans
(182,709)
406,482
Dividends paid
(290,000)
(260,000)
Net cash used in financing activities
(501,611)
(1,777)
Net decrease in cash and cash equivalents
(139,419)
(213,546)
Cash and cash equivalents at beginning of year
81,078
294,624
Cash and cash equivalents at end of year
(58,341)
81,078
Relating to:
Cash at bank and in hand
3,407
81,078
Bank overdrafts included in creditors payable within one year
(61,748)
-
0
RUBBER ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2025
- 13 -
1
Accounting policies
Company information

Rubber Road Limited is a private company limited by shares incorporated in England and Wales. The registered office and principal place of business is Attimore Barn, Ridgeway, Welwyn Garden City, Hertfordshire, AL7 2AD.

1.1
Reporting period

In the prior year, the company changed its year end from 31 December 2023 to 31 January 2024 (a 13 month period). As such, the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.

1.2
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, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.

1.3
Going concern

Atruet 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.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods 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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, 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.

1.5
Tangible fixed assets

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

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

Freehold land and buildings
2% on cost
Plant and equipment
25% on cost
Fixtures and fittings
25% on cost
Computers
25% on cost

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 credited or charged to profit or loss.

RUBBER ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 14 -

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company 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.

1.7
Stocks

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

 

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

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

1.8
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.

1.9
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

RUBBER ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 15 -
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 company 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.

1.10
Equity instruments

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

1.11
Taxation

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

RUBBER ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
1
Accounting policies
(Continued)
- 16 -
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 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. 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 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.

1.12
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.

1.13
Retirement benefits

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

1.14
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 leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.15
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.

RUBBER ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 17 -
2
Judgements and key sources of estimation uncertainty

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 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.

Freehold property valuation

A key area of judgement and source of estimation uncertainty is the valuation of freehold property from which the company trades. The directors exercise a significant amount of judgement when valuing the properties annually which is based on a review of the open property market for similar land and buildings in the same geographical location.

Stock valuation

At each reporting date, a review on slow moving and obsolete stock is made by the directors. Any excess of the carrying amount of the stock over its estimated selling price is recognised as an impairment loss in the income statement. The assessment of stock for impairment requires judgement and estimates. Possible changes to the estimates could result in revisions to the valuation of stock at the year end date.

3
Turnover
2025
2024
£
£
Turnover analysed by geographical market
United Kingdom
3,107,361
4,057,259
Europe
1,861,493
1,606,311
United States of America
8,535,929
4,801,979
Australia / New Zealand
459,739
388,977
Rest of the world
552,662
27,814
14,517,184
10,882,340
4
Operating profit
2025
2024
Operating profit for the year is stated after charging:
£
£
Exchange losses
59,709
62,476
Fees payable to the company's auditor for the audit of the company's financial statements
18,000
17,902
Depreciation of owned tangible fixed assets
57,607
61,389
Operating lease charges
80,557
64,654
RUBBER ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 18 -
5
Employees

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

2025
2024
Number
Number
Marketing
7
6
Sales
6
10
Finance
6
6
Logistics & production
10
11
Admin
11
9
Design team
17
14
Total
57
56

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,803,516
1,808,731
Social security costs
174,175
166,298
Pension costs
33,885
35,938
2,011,576
2,010,967
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
185,538
246,568
Company pension contributions to defined contribution schemes
2,832
3,970
188,370
250,538

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2024 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2025
2024
£
£
Remuneration for qualifying services
n/a
90,154
Company pension contributions to defined contribution schemes
n/a
1,431

As total directors' remuneration was less than £200,000 in the current year, disclosure in relation to the highest paid director is not required for that year.

RUBBER ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 19 -
7
Interest payable and similar expenses
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
136,222
136,453
Other finance costs:
Factoring charges
185,810
135,180
322,032
271,633
8
Taxation
2025
2024
£
£
Deferred tax
Origination and reversal of timing differences
18,936
(26,576)

The actual charge/(credit) 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:

2025
2024
£
£
Profit before taxation
486,282
1,888
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 19.00%)
121,571
359
Tax effect of expenses that are not deductible in determining taxable profit
1,936
-
0
Tax effect of utilisation of tax losses not previously recognised
(113,130)
-
0
Depreciation in excess of capital allowances
(10,377)
6,473
Utilisation of tax losses
-
0
(6,832)
Deferred tax
18,936
(26,576)
Taxation charge/(credit) for the year
18,936
(26,576)

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

2025
2024
£
£
Deferred tax arising on:
Revaluation of property
14,130
147,122
RUBBER ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 20 -
9
Dividends
2025
2024
£
£
Interim paid
290,000
260,000
10
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost or valuation
At 1 February 2024
1,870,516
64,043
80,306
181,430
2,196,295
Additions
6,167
48,943
23,886
20,118
99,114
At 31 January 2025
1,876,683
112,986
104,192
201,548
2,295,409
Depreciation and impairment
At 1 February 2024
120,516
55,085
58,713
141,359
375,673
Depreciation charged in the year
22,011
5,300
10,403
19,893
57,607
At 31 January 2025
142,527
60,385
69,116
161,252
433,280
Carrying amount
At 31 January 2025
1,734,156
52,601
35,076
40,296
1,862,129
At 31 January 2024
1,750,000
8,958
21,593
40,071
1,820,622

Land and buildings with a carrying amount of £1,734,156 were revalued at 15 March 2023 by Eddisons Commercial Limited, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

 

The directors do not consider there to be a change in valuation as at 31 January 2025.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2025
2024
£
£
Cost
1,122,352
1,096,185
Accumulated depreciation
(142,527)
(120,516)
Carrying value
979,825
975,669
RUBBER ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 21 -
11
Stocks
2025
2024
£
£
Finished goods and goods for resale
1,693,058
1,452,285
12
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
4,141,062
2,573,193
Corporation tax recoverable
1,236
1,236
Other debtors
4,673,452
2,791,920
Prepayments and accrued income
541,318
1,455,245
9,357,068
6,821,594
13
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Bank loans and overdrafts
15
61,748
-
0
Other borrowings
15
186,396
215,298
Trade creditors
2,575,117
1,102,200
Taxation and social security
206,460
292,298
Other creditors
2,814,597
1,883,695
Accruals and deferred income
1,584,353
1,208,670
7,428,671
4,702,161
14
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Bank loans and overdrafts
15
1,114,652
1,297,361
RUBBER ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 22 -
15
Loans and overdrafts
2025
2024
£
£
Bank loans
1,114,652
1,297,361
Bank overdrafts
61,748
-
0
Other loans
186,396
215,298
1,362,796
1,512,659
Payable within one year
248,144
215,298
Payable after one year
1,114,652
1,297,361

The bank facilities are secured by a first legal charge over the company's properties, the bank overdraft and bills of exchange are secured by a debenture incorporating a fixed charge over all other assets of the company. In addition to this, the company's bankers also hold the following:

 

 

The company has a loan with Close Brothers which is repayable over the period until 2026 and the interest rate on the loan is 5.53%.

The company has a loan with Funding Circle which is repayable over the period until 2026 and the interest rate on the loan is 6.03%.

The company has a loan with Conister which is repayable over the period until 2029 and the interest rate on the loan is 4.27%.

The company has a loan with HSBC which is repayable over the period until 2030 and the interest rate on the loan is 8.65%.

The company has a second loan with HSBC which is repayable over the period until 2039 and the interest rate on the loan is 6.23%.

16
Deferred taxation

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

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
31,993
13,058
Revaluations
161,254
147,123
193,247
160,181
RUBBER ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
16
Deferred taxation
(Continued)
- 23 -
2025
Movements in the year:
£
Liability at 1 February 2024
160,181
Charge to profit or loss
18,936
Effect of change in tax rate - other comprehensive income
14,130
Liability at 31 January 2025
193,247

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature over the lifespan of the assets, and relates to the freehold property revaluation that is expected to be realised on disposal.

17
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
33,885
35,938

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.

18
Share-based payment transactions

The company operates an Enterprise Management Incentive Share Options Scheme. The majority Shareholders and Directors have absolute discretion as to the selection of the persons to whom an option is granted by the company.

Options can only be exercised if a qualifying event takes place such as a change of ownership or public listing.

Options outstanding at the year end are as follows:-

800 Ordinary shares, exercisable at a price of £75 per share, expiring in October 2027.

1,300 Ordinary shares, exercisable at a price of £112.50 per share, expiring in October 2034.

 

19
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
10,000
10,000
100
100
RUBBER ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 24 -
20
Operating lease commitments
Lessee

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

2025
2024
£
£
Within one year
41,328
32,207
Between two and five years
35,630
19,572
76,958
51,779
21
Related party transactions

During the period, total dividends of £290,000 were paid to the directors.

 

During the year, the company made sales of £1,423,935 (2024: £2,941,301) and purchases of £563,435 (2024: £681,771) from various entities whom are related by common control. At the year end, the company was owed £1,428,449 (2024: £1,377,751) by these entities. All transactions and trading took place at arms length and under normal trading terms.

22
Cash generated from operations
2025
2024
£
£
Profit after taxation
467,346
28,464
Adjustments for:
Taxation charged/(credited)
18,936
(26,576)
Finance costs
322,032
271,633
Depreciation and impairment of tangible fixed assets
57,607
61,389
Movements in working capital:
(Increase)/decrease in stocks
(240,773)
231,899
Increase in debtors
(2,535,474)
(2,358,126)
Increase in creditors
2,693,664
1,878,501
Cash generated from operations
783,338
87,184
RUBBER ROAD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2025
- 25 -
23
Analysis of changes in net debt
1 February 2024
Cash flows
31 January 2025
£
£
£
Cash at bank and in hand
81,078
(77,671)
3,407
Bank overdrafts
-
0
(61,748)
(61,748)
81,078
(139,419)
(58,341)
Borrowings excluding overdrafts
(1,512,659)
211,611
(1,301,048)
(1,431,581)
72,192
(1,359,389)
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