Registration number:
The Riverside Group Holding Company Limited
for the Year Ended 31 October 2024
The Riverside Group Holding Company Limited
Contents
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Strategic Report |
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Directors' Report |
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Independent Auditor's Report |
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Consolidated Statement of Comprehensive Income |
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Consolidated Statement of Financial Position |
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Company Statement of Financial Position |
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Consolidated Statement of Changes in Equity |
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Company Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
The Riverside Group Holding Company Limited
Strategic Report for the Year Ended 31 October 2024
Fair review of the business
The Riverside Group Holding Company Limited presents for 2024, a fair, balanced, and comprehensive review of the development and performance of our business. Our review is consistent with the size and non-complex nature of our businesses and is written in the context of the risks and uncertainties of the group.
The principal activities of our subsidiaries continued to be that of wholesale distribution of aroma chemicals and hotel accommodation.
The 2024 results continue to demonstrate that the group has a resilient foundation, achieving another strong performance overall despite the challenges of doing business with the after effects of the global pandemic (COVID 19) and Brexit.
Principal risks and uncertainties
The group is subject to various risks that may adversely impact overall profits, including currency, political, and regulatory. The group is subject to foreign exchange risks when purchasing and selling overseas, not only within the Eurozone, but also worldwide. It is crucial that we adhere to specific laws and regulations as laid down by H M Revenue and Customs (UK).
Exposure to price, credit, liquidity, and cash flow risk
Price risk arises on financial instruments becuase of changes in for example, commodity price or equity prices. The group deals in wholesale distribution from various destinations worldwide. The group does not have any listed investment and will not be affected by price risk in that regard.
Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Group policies are aimed at minimising such losses and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. Details of group debtors are shown in note 16 of the financial statements.
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The group aims to mitigate liquidity risk by managing cash received by customers. The group manages liquidity risks via revolving credit facilities and trade loans.
Cash flow risk is the risk of exposure to variability in cash flow that is attributable to a particular risk associated with a recognised asset or liability such as a future interest payment on a variable rate debt. The group is not exposed to such risk as trade loan percentages are fixed for a short period of time, typically less than three months.
Key Performance Indicators
Given the straightforward nature of the business, we consider that the key financial indicators are those that communicate the financial performance and strength of the group as a whole, namely gross profit, operating profit and the value of net assets. At the end of the financial year the group had two female and three male directors.
Financial position at the reporting date
The balance sheet shows that the net assets at the year-end are £12.64m (2023: £12.82m). The results for the year and the financial position at the year-end are considered to be satisfactory by the directors who expect continued growth in the foreseeable future despite the challenges that lay ahead.
The Riverside Group Holding Company Limited
Strategic Report for the Year Ended 31 October 2024
Development and financial performance during the year
Following the downturn experienced in 2023 as a result of general destocking across the industry, the Group in 2024 has seen a return to more normal trading conditions, with revenues increasing by 10.5% to £18.41m (2023: £16.67m) and gross profit by 17.5% to £5.56m (2023: £4.73m).
Future Considerations
Looking forward there is expected to be continued pressure on prices and margins but the company will aim to counteract these by ensuing our capabilities and capacities remain ahead of current demand.
The directors believe the financial performance of the business in 2024 will further strengthen the robustness of the Group going forward enabling it to take advantage of further opportunities that are advantageous to the Group.
Approved and authorised by the
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The Riverside Group Holding Company Limited
Directors' Report for the Year Ended 31 October 2024
The directors present their report and the for the year ended 31 October 2024.
Directors of the group
The directors who held office during the year were as follows:
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors’ 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 financial statements in accordance with United Kingdom generally accepted accounting practice (United Kingdom Accounting standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and the profit or loss of the group for that period.
In preparing these financial statements the directors are required to
• Select suitable accounting policies and then apply them consistently
• Make judgments 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 group and company’s transactions and disclose with reasonable accuracy at any time the financial positions of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for the safeguarding the assets of group and company and hence for taking reasonable steps for the prevention and detection of fraud and ither irregularities.
The Riverside Group Holding Company Limited
Directors' Report for the Year Ended 31 October 2024
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the appointment of auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approved and authorised by the
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The Riverside Group Holding Company Limited
Independent Auditor's Report to the Members of The Riverside Group Holding Company Limited
Opinion
We have audited the financial statements of The Riverside Group Holding Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024, which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 2024 and of the group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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. 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.
The Riverside Group Holding Company Limited
Independent Auditor's Report to the Members of The Riverside Group Holding Company Limited
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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• |
the Strategic Report and 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 our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' 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' report set out on page 3, 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.
The Riverside Group Holding Company Limited
Independent Auditor's Report to the Members of The Riverside Group Holding Company Limited
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the wholesale distribution of aroma for food flavour and hotel accommodation sectors;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, UK Taxes Acts, data protection, anti-bribery, employment, environmental and health and safety regulations;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
The Riverside Group Holding Company Limited
Independent Auditor's Report to the Members of The Riverside Group Holding Company Limited
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws andregulations; and
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- investigated the rationale behind significant or unusual transactions; and
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims;
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.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control. |
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
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Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. |
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Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
The Riverside Group Holding Company Limited
Independent Auditor's Report to the Members of The Riverside Group Holding Company Limited
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.
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.
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For and on behalf of
Chase Green House
42 Chase Side
Middlesex
EN2 6NF
The Riverside Group Holding Company Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 October 2024
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Note |
2024 |
2023 |
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|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating profit |
|
|
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
189,891 |
28,376 |
||
|
Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit for the financial year |
|
|
|
|
Profit/(loss) attributable to: |
|||
|
Owners of the company |
|
|
The group has no recognised gains or losses for the year other than the results above.
The Riverside Group Holding Company Limited
(Registration number: 11481247)
Consolidated Statement of Financial Position as at 31 October 2024
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Note |
2024 |
2023 |
|
|
Fixed assets |
|||
|
Tangible assets |
|
|
|
|
Investments |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
80 |
80 |
|
|
Capital redemption reserve |
20 |
20 |
|
|
Retained earnings |
12,641,776 |
12,821,414 |
|
|
Equity attributable to owners of the company |
12,641,876 |
12,821,514 |
|
|
Shareholders' funds |
12,641,876 |
12,821,514 |
Approved and authorised by the
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The Riverside Group Holding Company Limited
(Registration number: 11481247)
Company Statement of Financial Position as at 31 October 2024
|
Note |
2024 |
2023 |
|
|
Fixed assets |
|||
|
Tangible assets |
|
|
|
|
Investments |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
80 |
80 |
|
|
Retained earnings |
8,208,931 |
8,977,736 |
|
|
Shareholders' funds |
8,209,011 |
8,977,816 |
The company made a profit after tax for the financial year of £2,591,195 (2023 - profit of £2,919,612).
Approved and authorised by the
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The Riverside Group Holding Company Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 October 2024
Equity attributable to the parent company
|
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
Total equity |
|
|
At 1 November 2023 |
|
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
|
Dividends |
- |
- |
( |
( |
( |
|
At 31 October 2024 |
|
|
|
|
|
|
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
Total equity |
|
|
At 1 November 2022 |
|
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
|
Dividends |
- |
- |
( |
( |
( |
|
At 31 October 2023 |
|
|
|
|
|
The Riverside Group Holding Company Limited
Company Statement of Changes in Equity for the Year Ended 31 October 2024
|
Share capital |
Retained earnings |
Total |
|
|
At 1 November 2023 |
|
|
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 31 October 2024 |
|
|
|
|
Share capital |
Retained earnings |
Total |
|
|
At 1 November 2022 |
|
|
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 31 October 2023 |
80 |
8,977,736 |
8,977,816 |
The Riverside Group Holding Company Limited
Consolidated Statement of Cash Flows for the Year Ended 31 October 2024
|
Note |
2024 |
2023 |
|
|
Cash flows from operating activities |
|||
|
Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Loss on disposal of tangible assets |
|
|
|
|
Finance income |
( |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
(Increase)/decrease in stocks |
( |
|
|
|
(Increase)/decrease in trade debtors |
( |
|
|
|
Increase/(decrease) in trade creditors |
|
( |
|
|
Increase/(decrease) in deferred income |
|
( |
|
|
Cash generated from operations |
|
|
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Net cash flows from investing activities |
|
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at 1 November |
|
|
|
|
Cash and cash equivalents at 31 October |
7,608,548 |
7,022,615 |
|
The Riverside Group Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention.
The functional currency of the group is sterling and all amounts are rounded to the nearest £1.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
The Riverside Group Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
Disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures under FRS102:
(a) Disclosures in respect of each class of share capital have not been presented,
(b) No cash flow statement has been presented for the company,
(c) Disclosures in respect of financial instruments have not been presented,
(d) No disclosure has been given for the aggregate remuneration of the key management personnel.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of The Riverside Group Holding Company Limited and all of its subsidiary undertakings drawn up to 31 October 2021.
The financial statements of Riverside Aromatics Limited and Riverside Aromatics (Europe) BV have been included in the group financial statements using the equity method whereas the financial statements of Mortons Manor Limited were included using the purchase method.
The results of the subsidiaries acquired or disposed of during the year are included from or to the date that control passes.
The parent company has applied the exemption contained in section408 of the Companies Act 2006 and has not presented its individual profit and loss account.
Judgements and key sources of estimation uncertainty
In producing these accounts the directors have considered accounting policies and relevant estimates. In the directors’ opinion and to the best of their knowledge significant accounting entries are based on facts. However, these accounts do include estimates in relation to the useful life of assets, deferred tax provision and immaterial prepayments and accruals.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Taxation
The tax expense for the period comprises the aggregate amount of current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively.
The Riverside Group Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
Current tax charge is recognised on taxable profit for the current and past periods. Current tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Foreign currency transactions and balances
Transactions in foreign currencies are initially recorded at average rate prevailing during the period of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Tangible assets
Tangible assets are stated in the company statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
The Riverside Group Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
Depreciation
Depreciation is charged so as to write off the cost or valuation of an asset, less its residual value, over their estimated useful economic life of that asset, as follows:
|
Freehold Property |
2% straight line |
|
Short Leasehold Property |
16% straight line |
|
Plant and machinery |
17% straight line |
|
Fixtures and fittings |
33% straight line |
|
Equipment |
25% straight line |
Investment property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit and loss. If a reliable measure of fair value is no longer available without undue cost or effort for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis.
Investments
Fixed asset investments are initally recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
The Riverside Group Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Basic financial instruments are initially recognised at the transactions price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently measured at amortised cost.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related services is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
The Riverside Group Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sale of goods |
|
|
|
Rental income from investment property |
|
|
|
|
|
Turnover is stated net of VAT and is recognised when significant risks and rewards are transferred to the buyer.
A geographical analysis and class of business analysis is not presented as, in the opinion of the directors, this would be prejudicial to the interest of the group.
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2024 |
2023 |
|
|
Sub lease rental income |
|
|
|
Other operating income |
|
|
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Operating lease expense - property |
|
|
|
Loss on disposal of property, plant and equipment |
|
|
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of these financial statements |
14,570 |
14,440 |
The Riverside Group Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
Hospitality |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
281,646 |
159,854 |
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Interest income on bank deposits |
|
|
The Riverside Group Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Foreign exchange gains |
|
|
|
|
|
|
Taxation |
Tax charged/(credited) in the consolidated statement of comprehensive income
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Foreign tax |
|
|
|
Total current income tax |
1,139,858 |
857,390 |
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible for tax purposes |
|
|
|
Effect of foreign tax rates |
- |
|
|
Effect of capital allowances and depreciation |
|
( |
|
Tax (decrease)/increase from other short-term timing differences |
( |
|
|
Total tax charge |
|
|
The Riverside Group Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Dividends |
Interim dividends paid
|
2024 |
2023 |
|||
|
Interim dividend of £ |
|
|
||
The Riverside Group Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Tangible assets |
Group
|
Freehold property |
Short leasehold property |
Plant and machinery |
Fixtures and fittings |
Office equipment |
Total |
|
|
Cost or valuation |
||||||
|
At 1 November 2023 |
|
|
|
|
|
|
|
Additions |
- |
- |
|
|
|
|
|
Disposals |
- |
- |
( |
( |
( |
( |
|
At 31 October 2024 |
|
|
|
|
|
|
|
Depreciation |
||||||
|
At 1 November 2023 |
|
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
( |
( |
|
At 31 October 2024 |
|
|
|
|
|
|
|
Carrying amount |
||||||
|
At 31 October 2024 |
|
|
|
|
|
|
|
At 31 October 2023 |
|
|
|
|
|
|
Included within the net book value of Freehold Property above is £797,748 (2032 - £797,748) in respect of investment property. The valuation of the investment property is stated at cost.
Company
|
Investment property |
|
|
Cost or valuation |
|
|
At 1 November 2023 |
|
|
At 31 October 2024 |
|
|
Depreciation |
|
|
Carrying amount |
|
|
At 31 October 2024 |
|
|
At 31 October 2023 |
|
The Riverside Group Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Investments |
Group
|
Shares in group undertakings |
|
|
Cost |
|
|
At 1 November 2023 |
1,635,024 |
|
Carrying amount |
|
|
At 31 October 2024 |
1,635,024 |
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Holding |
Percentage of shares held |
||
|
2024 |
2023 |
|||
|
Subsidiary undertakings |
||||
|
|
Muntstraat 7
|
|
|
|
Company
|
Shares in group undertakings |
Loans to group undertakings |
Total |
|
|
Cost |
|||
|
At 1 November 2023 |
1,635,206 |
842,802 |
2,478,008 |
|
Additional |
- |
50,000 |
50,000 |
|
Carrying amount |
|||
|
At 31 October 2024 |
1,635,206 |
892,802 |
2,528,008 |
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
The Riverside Group Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Undertaking |
Holding |
Percentage of shares held |
||
|
2024 |
2023 |
|||
|
Subsidiary undertakings |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsidiary undertakings |
|
Stocks |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Other inventories |
|
|
- |
- |
|
Debtors |
|
Group |
Company |
|||
|
Current |
2024 |
2023 |
2024 |
2023 |
|
Trade debtors |
|
|
|
|
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
|
|
|
|
|
|
|
|
The Riverside Group Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Creditors |
|
Group |
Company |
||||
|
Note |
2024 |
2023 |
2024 |
2023 |
|
|
Due within one year |
|||||
|
Trade creditors |
|
|
|
|
|
|
Social security and other taxes |
|
|
|
- |
|
|
Defined contribution pension |
|
- |
|
- |
|
|
Other payables |
|
|
|
|
|
|
Accruals |
|
|
|
|
|
|
Income tax liability |
427,364 |
317,740 |
- |
- |
|
|
Deferred income |
|
|
- |
- |
|
|
|
|
|
|
||
|
Provisions for liabilities |
Group
|
Deferred tax |
Total |
|
|
At 1 November 2023 |
|
|
|
Increase (decrease) in existing provisions |
( |
( |
|
At 31 October 2024 |
|
|
|
|
||
Deferred tax is provided in respect of accelerated capital allowances.
The Riverside Group Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Employee Benefits |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
80 |
|
80 |
|
Reserves |
Group
This comprises another reserve on the merger of this company with Riverside Aromatics Limited.
The Riverside Group Holding Company Limited
Notes to the Financial Statements for the Year Ended 31 October 2024
|
Analysis of changes in net debt |
Group
|
At 1 November 2023 |
Cash flows |
At 31 October 2024 |
|
|
Cash and cash equivalents |
|||
|
Cash |
7,022,615 |
585,933 |
7,608,548 |
|
|
|||
|
|
|
|
|
|
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
- |
|
|
|
|
Controlling party |
The ultimate controlling party is Mr Peter Cannon.