Company Registration No. 01471339 (England and Wales)
Rackham Housefloors Limited
Annual report and financial statements
for the year ended 31 December 2024
Rackham Housefloors Limited
Company information
Directors
Paul Moore
Roger Varley
Company number
01471339
Registered office
Mill Street East
Dewsbury
West Yorkshire
WF12 9TA
Independent auditor
Saffery LLP
10 Wellington Place
Leeds
LS1 4AP
Bankers
Lloyds Bank plc
14 Church Street
Sheffield
S1 1HP
Solicitors
CMS Cameron McKenna Nabarro Olswang LLP
1-3 Charter Square
Sheffield
S1 4HS
Rackham Housefloors Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
Rackham Housefloors Limited
Strategic report
For the year ended 31 December 2024
1
The directors present the strategic report for the year ended 31 December 2024.
Financial key performance indicators
Sales Turnover 29% Decrease (2023: 23% Decrease)
Sales Volume 33% Decrease (2023: 28% Decrease)
Gross Margin Before Factory Overheads 31% (2023: 29%)
Total Overhead as a percentage of Sales 39% (2023: 29%)
Net Profit Margin -0.8% (2023: -0.5%)
Working Capital Ratio 3.1:1 (2023: 3.8:1)
Liquidity Ratio 2.4:1 (2023: 3.1:1)
Business review
The year to December 2024 proved to be another very challenging year for the Company, much in line with a very challenging year for the UK Housing Market.
Company sales volumes dropped by a third and mirrored the drop in new house starts as published by the ONS of 108,000 in England and Wales (UK total: 130,000), down from 150,000 in the previous year to December 2023.
Completions for the same period to December 2024 in England and Wales as published by the ONS were 159,000 (UK total: 181,000).
The Government has set itself an ambitious target to build 1.5 million new homes in England alone over the Parliament, 300,000 per year, a build which has never previously been achieved.
Despite the Company seeing an increase of 15% volume in the first quarter to March 2025 compared to 2024, this is from an extremely low base. The Directors are of the opinion that when the new housebuilding statistics are published by the ONS for the quarters to March and June 2025 (not including figures for energy performance certificates, change of use, conversion to flats, extension etc), new house starts for England and Wales for the 12 months to June 2025 will be a mere 130,00 (170,000 below the target of 300,000).
Due to falling interest rates and the fact that substantially more houses have been completed than started, after 18 months there is finally light at the end of the tunnel, but the end of the tunnel is still a long way off.
The Directors are of the opinion that a further 0.5% reduction in interest rates is essential and the signs are positive that the BOE will reduce them by this amount by the summer of 2025, with a further 0.25% to come in the autumn. This will greatly help the prospect of more desperately needed new build houses.
More is needed from the Government, and the Directors feel that 100% mortgages are required for first time buyers if 200,000 homes are going to be built a year, let alone the 300,000 which is just not practical, feasible, or possible. Changes in planning laws, however welcome, will not change this.
The only thing that could enable the Government to meet its ambitious target of 300,000 would be a massive investment of tens of £billions in social housing, money it simply doesn’t have.
Despite all the gloom, the Directors remain optimistic that the Company will return to profit in 2025. They are expecting a 30% increase in volume from the previous year, as the reductions in interest rates for the last nine months and the next three months kick start the building of a substantial number of new homes.
Rackham Housefloors Limited
Strategic report (continued)
For the year ended 31 December 2024
2
Principal risks and uncertainties
The principal risk and uncertainty to the business is the level of the BOE minimum lending rate, and its implications on mortgage costs and buyer confidence.
After the peak in interest rates of 5.25% and 11% inflation 18 months ago, following the Pandemic and the start of the war in Ukraine, both are making their way down, and are now at a much more acceptable level.
2024 was a challenging year not helped by a mid-year general election. However, the Directors are of the opinion that although 2025 will be another tough year, the worst is over for the country, the housing market, and the Company.
There is massive pent-up demand for new energy efficient houses and the Company will be in a strong position to take full advantage of this when, not if, the massive upturn arrives.
Paul Moore
Director
25 June 2025
Rackham Housefloors Limited
Directors' report
For the year ended 31 December 2024
3
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of the manufacture of pre-cast concrete floor beams.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £102,180. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Paul Moore
Roger Varley
Auditor
Saffery LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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.
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
Paul Moore
Director
25 June 2025
Rackham Housefloors Limited
Directors' responsibilities statement
For the year ended 31 December 2024
4
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The 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.
Rackham Housefloors Limited
Independent auditor's report
To the members of Rackham Housefloors Limited
5
Opinion
We have audited the financial statements of Rackham Housefloors Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, 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:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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.
Rackham Housefloors Limited
Independent auditor's report (continued)
To the members of Rackham Housefloors Limited
6
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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.
Rackham Housefloors Limited
Independent auditor's report (continued)
To the members of Rackham Housefloors Limited
7
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above 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 would become aware of it. Also, 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 or intentional misrepresentations, or through 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.
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.
Rackham Housefloors Limited
Independent auditor's report (continued)
To the members of Rackham Housefloors Limited
8
Jonathan Davis
Senior Statutory Auditor
For and on behalf of Saffery LLP
25 June 2025
Statutory Auditors
10 Wellington Place
Leeds
LS1 4AP
Rackham Housefloors Limited
Statement of comprehensive income
For the year ended 31 December 2024
9
2024
2023
Notes
£
£
Turnover
3
9,275,456
13,030,837
Cost of sales
(7,926,486)
(10,845,486)
Gross profit
1,348,970
2,185,351
Administrative expenses
(2,101,331)
(2,245,861)
Operating loss
4
(752,361)
(60,510)
Interest receivable and similar income
8
75
Loss before taxation
(752,361)
(60,435)
Tax on loss
9
157,518
(21,844)
Loss for the financial year
(594,843)
(82,279)
The income statement has been prepared on the basis that all operations are continuing operations.
Rackham Housefloors Limited
Statement of financial position
As at 31 December 2024
10
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,412,116
2,573,997
Investments
13
1
1
2,412,117
2,573,998
Current assets
Stocks
14
592,245
567,324
Debtors
15
1,352,273
1,325,029
Cash at bank and in hand
590,067
1,398,266
2,534,585
3,290,619
Creditors: amounts falling due within one year
16
(809,791)
(887,374)
Net current assets
1,724,794
2,403,245
Total assets less current liabilities
4,136,911
4,977,243
Provisions for liabilities
Deferred tax liability
17
45,817
189,126
(45,817)
(189,126)
Net assets
4,091,094
4,788,117
Capital and reserves
Called up share capital
19
3,406
3,406
Share premium account
42,160
42,160
Revaluation reserve
50,292
50,292
Capital redemption reserve
2,415
2,415
Profit and loss reserves
3,992,821
4,689,844
Total equity
4,091,094
4,788,117
The financial statements were approved by the board of directors and authorised for issue on 25 June 2025 and are signed on its behalf by:
Paul Moore
Roger Varley
Director
Director
Company Registration No. 01471339
Rackham Housefloors Limited
Statement of changes in equity
For the year ended 31 December 2024
11
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Share option reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
£
Balance at 1 January 2023
3,406
42,160
50,292
2,415
65,187
5,006,664
5,170,124
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
-
-
-
(82,279)
(82,279)
Dividends
10
-
-
-
-
-
(299,728)
(299,728)
Credit to equity for equity settled share-based payments
-
-
-
-
-
65,187
65,187
Other movements
-
-
-
-
(65,187)
-
(65,187)
Balance at 31 December 2023
3,406
42,160
50,292
2,415
4,689,844
4,788,117
Year ended 31 December 2024:
Loss and total comprehensive income
-
-
-
-
-
(594,843)
(594,843)
Dividends
10
-
-
-
-
-
(102,180)
(102,180)
Balance at 31 December 2024
3,406
42,160
50,292
2,415
3,992,821
4,091,094
Rackham Housefloors Limited
Statement of cash flows
For the year ended 31 December 2024
12
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
23
(415,814)
1,446,241
Corporation taxes paid
(256,332)
Net cash (outflow)/inflow from operating activities
(415,814)
1,189,909
Investing activities
Purchase of tangible fixed assets
(290,205)
(534,416)
Proceeds from disposal of tangible fixed assets
58,300
Interest received
75
Net cash used in investing activities
(290,205)
(476,041)
Financing activities
Dividends paid
(102,180)
(299,728)
Net cash used in financing activities
(102,180)
(299,728)
Net (decrease)/increase in cash and cash equivalents
(808,199)
414,140
Cash and cash equivalents at beginning of year
1,398,266
984,126
Cash and cash equivalents at end of year
590,067
1,398,266
Rackham Housefloors Limited
Notes to the financial statements
For the year ended 31 December 2024
13
1
Accounting policies
Company information
Rackham Housefloors Limited is a private company limited by shares incorporated in England and Wales. The registered office is Mill Street East, Dewsbury, West Yorkshire, WF12 9TA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
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.
1.2
Going concern
The directors must satisfy themselves that it is reasonable to conclude that the financial statements should be prepared on the going concern basis.true
In order to manage the operations of the company, the directors prepare regular forecasts covering sales, production, profitability, liquidity and capital expenditure. The outputs of these projections support the director's assertion that the company can continue to meet its liabilities as they fall due and therefore it remains appropriate to prepare the financial statements on the going concern basis and the directors are comfortable that no material uncertainties exist.
1.3
Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Revenue from the sale of goods is recognised when the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets other than goodwill
Intangible fixed assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible fixed assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed five years.
Amortisation is provided on the following bases:
Patents & licences
20% straight line
Rackham Housefloors Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
14
1.5
Tangible fixed assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The company adds to the carrying amount of an item of fixed asset the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged tot he Statement of comprehensive income during the period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
Freehold land and buildings
2.5% straight line
Plant and equipment
10-20% straight line
Motor vehicles
25% straight line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.
1.6
Fixed asset investments
Investments in subsidiaries are measured at cost less accumulated impairment.
1.7
Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
1.8
Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.
1.9
Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable.
Rackham Housefloors Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
15
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would received for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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.
Rackham Housefloors Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
16
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
1.11
Retirement benefits
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the company in independently administered funds.
1.12
Share-based payments
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the Statement of comprehensive income over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each Balance sheet date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to the Statement of comprehensive income over the remaining vesting period.
1.13
Leases
Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the period of the lease.
1.14
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Rackham Housefloors Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies (continued)
17
1.15
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
1.16
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
2
Critical accounting 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.
3
Turnover
The turnover and profit before tax are attributable to the one principal activity of the company.
All turnover arose within the United Kingdom.
4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
452,086
369,489
Profit on disposal of tangible fixed assets
-
(10,615)
Operating lease charges
218,735
227,148
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
22,150
21,500
For other services
Taxation compliance services
3,750
3,675
All other non-audit services
1,600
1,575
5,350
5,250
Rackham Housefloors Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
18
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
64
68
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,193,680
2,569,873
Social security costs
214,318
252,868
Pension costs
46,030
51,708
2,454,028
2,874,449
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
162,920
216,074
Company pension contributions to defined contribution schemes
1,321
-
164,241
216,074
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
n/a
163,600
As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
75
Rackham Housefloors Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
8
Interest receivable and similar income (continued)
19
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
75
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(14,209)
(136)
Deferred tax
Origination and reversal of timing differences
(143,309)
21,980
Total tax (credit)/charge
(157,518)
21,844
The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(752,361)
(60,435)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
(188,090)
(14,214)
Tax effect of expenses that are not deductible in determining taxable profit
1,843
257
Adjustments in respect of prior years
(14,209)
(136)
Effect of change in corporation tax rate
1,301
Other permanent differences
75
Deferred tax adjustments in respect of prior years
2,494
Fixed asset differences
40,369
34,636
Taxation (credit)/charge for the year
(157,518)
21,844
10
Dividends
2024
2023
£
£
Final paid
102,180
299,728
Rackham Housefloors Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
20
11
Intangible fixed assets
Patents & licences
£
Cost
At 1 January 2024 and 31 December 2024
15,692
Amortisation and impairment
At 1 January 2024 and 31 December 2024
15,692
Carrying amount
At 31 December 2024
At 31 December 2023
12
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
2,287,549
4,278,001
422,566
6,988,116
Additions
265,716
24,489
290,205
At 31 December 2024
2,287,549
4,543,717
447,055
7,278,321
Depreciation and impairment
At 1 January 2024
1,078,583
3,204,193
131,343
4,414,119
Depreciation charged in the year
45,744
307,267
99,075
452,086
At 31 December 2024
1,124,327
3,511,460
230,418
4,866,205
Carrying amount
At 31 December 2024
1,163,222
1,032,257
216,637
2,412,116
At 31 December 2023
1,208,966
1,073,808
291,223
2,573,997
Freehold land of £466,200 (2023: £466,200) is not depreciated.
13
Fixed asset investments
2024
2023
£
£
Investments in subsidiaries
1
1
Rackham Housefloors Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
13
Fixed asset investments (continued)
21
The company has a 100% investment in Rackham Housefloors Manufacturing Limited, a dormant company which is registered in England and Wales. At 31 December 2024 the capital and reserves of Rackham Housefloors Manufacturing Limited were £1 (2023: £1).
Under the provision of section 405 (2) of the Companies Act 2006 the Company is exempt from preparing consolidated accounts and has not done so, therefore the accounts show information about the company as an individual entity and not about its group.
14
Stocks
2024
2023
£
£
Raw materials and consumables
210,079
176,137
Finished goods and goods for resale
382,166
391,187
592,245
567,324
The carrying value of stocks are stated net of impairment losses totalling £nil (2023: £nil).
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,176,026
1,170,621
Corporation tax recoverable
14,209
Prepayments and accrued income
162,038
154,408
1,352,273
1,325,029
16
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
616,163
608,397
Amounts owed to group undertakings
1
1
Taxation and social security
143,731
198,557
Other creditors
4,145
17,588
Accruals and deferred income
45,751
62,831
809,791
887,374
Rackham Housefloors Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
22
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
45,817
189,126
2024
Movements in the year:
£
Liability at 1 January 2024
189,126
Credit to profit or loss
(143,309)
Liability at 31 December 2024
45,817
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
46,030
51,708
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £46,030 (2023: £51,708). Contributions totalling £33 (2023: £nil) were payable to the fund at the reporting date.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
3,406
3,406
3,406
3,406
There is a single class of ordinary shares. There are no restrictions on dividends and the repayment of capital.
Rackham Housefloors Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
23
20
Reserves
Share Premium account
Includes any premiums received on issue of share capital. Any transaction costs associated with issuing of shares are deducted from share premium.
Revaluation reserve
Comprises the surplus arising on the revaluation of freehold property.
Capital redemption reserve
Includes accounting entries arising from the redemption of the company's share capital in prior years.
Share option reserve
Includes charges in respect of share options in issue.
Profit & loss account
Includes retained earnings and accumulated losses.
21
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:
2024
2023
£
£
Within one year
1,733
1,891
Between two and five years
1,733
1,733
3,624
Included in the above total is £nil (2023: £nil) in relation to land & buildings and £1,733 (2023: 3,624) in relation to plant and machinery.
22
Ultimate controlling party
The directors consider Paul Moore to be the Company's controlling related party by virtue of his beneficial majority interest in the issued share capital of the company. Dividends of £102,180 (2023: £299,728) have been paid on this shareholding during the year. Dividends of £2,100 (2023: £6,160) were paid to R Varley during the year.
Rackham Housefloors Limited
Notes to the financial statements (continued)
For the year ended 31 December 2024
24
23
Cash (absorbed by)/generated from operations
2024
2023
£
£
Loss for the year after tax
(594,843)
(82,279)
Adjustments for:
Taxation (credited)/charged
(157,518)
21,844
Investment income
(75)
Gain on disposal of tangible fixed assets
-
(10,615)
Depreciation and impairment of tangible fixed assets
452,086
369,489
Movements in working capital:
(Increase)/decrease in stocks
(24,921)
648,051
(Increase)/decrease in debtors
(13,035)
738,000
Decrease in creditors
(77,583)
(238,174)
Cash (absorbed by)/generated from operations
(415,814)
1,446,241
24
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
1,398,266
(808,199)
590,067
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