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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
Page Kirk LLP
Chartered Accountants and Statutory Auditors
Sherwood House
7 Gregory Boulevard
Nottingham
NG7 6LB
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CONTENTS
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COMPANY INFORMATION
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors, in preparing this Strategic Report, have complied with s414C of the Companies Act 2006.
The Groups principal activities are that of commercial vehicle sales, service, and repair, additionally the contract hire and rental of commercial vehicles and other assets.
The RH Group Ltd is also active in the development of industrial property and commercial office letting. 2024 conspired to be a particularly challenging year for the commercial vehicle business, RH Commercial Vehicles. Following on from the last quarter of the prior year, the group saw weakened demand for MHD (medium heavy duty) trucks and the forward order book as the group entered the year was somewhat less than the directors had both hoped and not consistent with the years immediately following the covid epidemic in 2020. Additionally, those assets ordered for customers, landed in late 2023 and in early 2024 presented further challenges because of body builder delays, and in a few cases, end users’ procrastination in adopting completed assets, itself a further symptom of weaker demand. Consequently, the group incurred additional stock plan interest costs at the peak of the interest rate cycle, adding considerably to borrowing costs in the period. Although the RH Group were able to pass these charges on in some instances, this was not the case with the majority. Although negotiations commenced early in 2023, the group were bound by a confidentiality agreement which precluded prior announcing this acquisition, the RH Group concluded the purchase of the Coventry distributorship from Renault Trucks Commercials Ltd. This completed on the 31st of October 2024 and brings the number of operational sites to seven, making the RH Group one of the leading Renault Truck distributors in the UK, with a substantive area of operation across the East and into the West Midlands. The acquisition included the freehold of the property in Coventry (Nuneaton), which is a very impressive and purpose-built site, adding to The RH Groups property portfolio. Throughout the year, despite the challenges, the directors continued to invest in all the operational sites, with upgrades to the Leicester facilities, and completion of the Northampton redevelopment. The directors' strategy continues to be that of investment, as such in this current year they have projects ongoing in Alfreton and shortly to commence in Peterborough. RH Rentals enjoyed a better year, and although not perhaps at the pace the directors would have liked, the company started to rebuild the number of assets in the contract hire fleet, again although the company is someway below the peak of 2022, it is approaching four hundred assets on rent. In RH Group, in addition to the acquisition of the Coventry (Nuneaton) property the key transaction of the year was the sale of Carlton Road Development Ltd, of which the group held a 67% shareholding. The disposal ended the directors' interest in the development land off Carlton Road, Nottingham, but yielded a significant return on original investment. This has contributed significantly to the consolidated result for the year. In summary, 2024 was a most challenging year, certainly the management team had to work hard throughout, and although the overall result is pleasing, it is tinged with disappointment at an operational level in RH Commercial Vehicles.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
However, at the time of drafting this report, this current year has proven to be thus far hugely better, and certainly the directors are delighted by performance operationally both in RH Commercial Vehicles and RH Rentals. The directors have secured a number of significant orders for new trucks, and the new operation as exceeded early expectations, alongside strong performances across the business.
That said, like most businesses, the group are now feeling the impact of increased costs, not least employer National Insurance contributions, a well-documented issue of course, these are partially offset by reduced finance costs because of interest rate cuts, and it would seem that generally sentiment within the customer base is that of concern in terms of outlook, being a combination of UK government policy, and general turbulence in the wider world, and its likely impact on the UK, not least oil pricing and its impact of road fuel pricing, which is inevitably impacts significantly the customer bases' financial performance. The directors very much hope, that when they report the 2025 accounts, this strong start has been maintained throughout the year.
Aside from financial KPIs the business monitors a number of operational KPIs such as the number of vehicles sold, recovery rate and parts purchases.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The management of the business and the execution of the Group's strategy are subject to a number of risks. The key business risks and uncertainties affecting the Group are considered to relate to competition from other companies operating in the same market. The Group manages risk by providing excellent service and maintaining strong relationships with both customers and suppliers.
Financial risk management, objectives and policies The Group's activities expose it to a number of financial risks relating to credit risk, cash flow risk and liquidity risk. The Group does not use derivative financial instruments. Credit risk The Group's principal financial assets are bank balances and cash, trade and other debtors. The Group's credit risk is primarily attributable to its trade debtors. The amounts presented in the Group's Statement of Financial Position are net of allowances for doubtful debts. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The Group has no significant concentration of credit risk, with exposure spread over a large number of counter parties and customers. Cash flow risk Cash flow risk is the risk exposure to variability in cash flows that is attributable to a particular risk associated with acquisition of capital assets through short term borrowings such as repayment and interest payment on short term borrowings. Liquidity risk In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Group uses a mixture of external borrowings and cash flows generated from within the Group.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors of the Group, as those of all UK Companies, must act in accordance with a set of general duties. These duties are detailed in section 172 (1) of the UK Companies Act 2006 which can be summarised as follows; "a director of a company must act in a way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its shareholders as a whole, and in doing so have regard (amongst other matters) to:
• the likely consequences of any decisions in the long term • the interest of the Group's employees • the need to foster the Group's business relationship with suppliers, customers and others • the impact of the Group's operations on the community and the environment • the desirability of the Group maintaining a reputation for high standards of business conduct and • the need to act fairly between shareholders of the Group It is important to recognise that in an organisation of this size, some of the Directors duties are fulfilled through policies and governance which delegate day to day decision making to employees of the Group. The following paragraphs summarise how the Directors fulfil their duties: Our strategy and consideration of consequences of decisions for the long term As Directors of the Group we provide overall risk oversight, with a focus on the most significant risks facing the Group. In addition, we are responsible for ensuring overall crisis management and business continuity plans are in place. Together with partners and senior management, we frequently discuss the Group's business strategy, operations, policies, controls and risks. Our values and culture The RH Group is committed to conducting its business consistently with the highest standards of business ethics. We have an obligation to our employees, shareholders, customers, suppliers, partners, and other business contacts to be honest, fair and forthright in all our business activities. Our employees We recognise the importance of good communications and relationships with employees. We continue to encourage and increase employee participation and involvement in matters which affect their interests. We provide updates to employees on developments within the Group on a regular basis. We celebrate success and share good practice as we strive to be a regional employer of choice. Business relationships Our diverse, global customer, partner and supplier base includes some of the largest blue-chip multinationals in the road transport sector. We value our customers and suppliers and have long term relationships in place. We have dedicated customer and supplier account managers who safeguard the interests of ourselves, our" customers and our suppliers. As a Group we consciously endeavour to purchase from regional suppliers, with the intention of contributing to strengthening the local economy. Community and environment We are committed to the protection of the environment, using our environment management system to ensure compliance with legislation and regulations, and to help achieve our objectives for improvement in environmental performance. This includes reducing waste by increased recycling and reuse where possible and transitioning to electric and hybrid vehicles in the company fleet. We are a partner with a network of dealers committed to helping the transport industry and our customers through energy transition and decarbonisation strategies to lower their environmental impact.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board on 25 July 2025 and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The profit for the year, after taxation and minority interests, amounted to £3,863k (2023 - £11k).
The directors who served during the year were:
The Directors have assessed going concern from the perspective of The RH Group and associated companies, shared resource, and linked funding.
2024 was a challenging year for RH Commercial Vehicles, as reported during 2023 the order pipeline for delivery and registration in 2024 was somewhat lower than the directors would have expected and inevitably this impacted on the final position in this regard. By way of explanation, a combination of manufacturer lead times, now close to five months from order, and then further preparation, the addition of vehicle bodies and other fitments can add a further number of months depending on complexity and available body builder capacity. As such, from order to delivery anything up to ten months is considered normal. As such, orders placed after March in 2024, in some cases, become registrations in this year, 2025, and so on. As such, the reduced pipeline built in 2023 impacted financial performance in both revenue and consequently manufacturer registration bonus terms. Additionally, weak demand from some customers meant that vehicles held on stock-plan facilities were maintained for extended periods, attracting interest costs at the peak of the cycle, and whilst some of these costs were passed to end users where the group had agreement, most were not, as such these costs had a significant impact on profitability. Through significant effort, the directors managed to reduce our held stock value since the year end, and some relief through interest rate reductions means that this problem is significantly reduced in the 2025 year. A much-improved order and registration pipeline looks promising in 2025, and the directors expect to meet registration targets and as such unlock bonus potential. In the group's aftersales operations, workshop throughput has been consistent throughout the year to date, and the group has continued to meet its own budgets, alongside manufacturer led targets, it has been pleasing to see the newly acquired Coventry operation perform better than anticipated and improvements in the sites in Newark and Peterborough. As such, the directors fully expect to report a return to expected levels of profitability in 2025.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Companies Act 2006 (Strategic Report and Directors Report) Regulations 2018 requires The RH Group to disclose annual UK energy consumption and Greenhouse Gas (GHG) emissions from SECR regulated sources.
Energy and GH emissions are reported from buildings and transport where operational control is held – this includes natural gas, electricity and fuel consumed, and group owned or leased vehicles. The tables below details the SECR energy and GHG emissions for the reporting period 2024.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
UK businesses continue to face challenging conditions, in part as a result of UK Government policies, recent changes to employer NIC (national insurance contributions) have added significantly to the group's employment costs and will inevitably impact on the group's overall profitability alongside proposed changes to employment legislation and wider taxation initiatives.
In addition, global events continue to colour business sentiment, with specific concerns around oil prices, as the group's customer base is transport focused, fuel remains a key cost effecting their own profitability, and thus outlook including investment in new and used vehicles, in turn inevitably potentially reflecting on the RH Group's financial performance. However, the directors have carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and have concluded that these are non-adjusting events with the greatest impact on the business expected to be from the economic ripple effect on the global economy. The directors have taken account of these potential impacts in their going concern assessment. The RH Group Limited continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.
There have been no significant events affecting the Group since the year end.
The auditors, Page Kirk LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RH GROUP LTD
FOR THE YEAR ENDED 31 DECEMBER 2024
We have audited the financial statements of The RH Group Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Profit and Loss Account, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity 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).
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RH GROUP LTD (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RH GROUP LTD (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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 Auditors' 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 Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation and money laundering regulations. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included: • Enquiries of management about their own identification and assessment of the risks of irregularities. • Sample testing on the posting of journals. • Reviewing regulatory correspondence and professional fees. • Detailed substantive testing on the completeness of income. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE RH GROUP LTD (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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 Auditors' 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.
for and on behalf of
Chartered Accountants and Statutory Auditors
Sherwood House
7 Gregory Boulevard
NG7 6LB
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CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
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CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024
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CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 25 to 51 form part of these financial statements.
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COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
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COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 25 to 51 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is: Birkbeck House Colliers Way Nottingham England NG8 6AT These financial statements were authorised for issue by the Board on 7 August 2024.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are presented in Sterling (£) which is the functional currency of the company.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Profit and Loss Account from the date on which control is obtained. They are deconsolidated from the date control ceases.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Directors have assessed going concern from the perspective of The RH Group and associated companies, shared resource, and linked funding and consider the group to be a going concern.
2024 was a challenging year for RH Commercial Vehicles, as reported during 2023 the order pipeline for delivery and registration in 2024 was somewhat lower than the directors would have expected and inevitably this impacted on the final position in this regard. By way of explanation, a combination of manufacturer lead times, now close to five months from order, and then further preparation, the addition of vehicle bodies and other fitments can add a further number of months depending on complexity and available body builder capacity. As such, from order to delivery anything up to ten months is considered normal. As such, orders placed after March in 2024, in some cases, become registrations in this year, 2025, and so on. As such, the reduced pipeline built in 2023 impacted financial performance in both revenue and consequently manufacturer registration bonus terms. Additionally, weak demand from some customers meant that vehicles held on stock-plan facilities were maintained for extended periods, attracting interest costs at the peak of the cycle, and whilst some of these costs were passed to end users where the group had agreement, most were not, as such these costs had a significant impact on profitability. Through significant effort, the directors managed to reduce our held stock value since the year end, and some relief through interest rate reductions means that this problem is significantly reduced in the 2025 year. A much-improved order and registration pipeline looks promising in 2025, and the directors expect to meet registration targets and as such unlock bonus potential. In the group's aftersales operations, workshop throughput has been consistent throughout the year to date, and the group has continued to meet its own budgets, alongside manufacturer led targets, it has been pleasing to see the newly acquired Coventry operation perform better than anticipated and improvements in the sites in Newark and Peterborough. As such, the directors fully expect to report a return to expected levels of profitability in 2025.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible 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 ten years.
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.
The estimated useful lives range as follows:
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 profit or loss.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for
Page 30
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Page 31
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods. The Directors have not identified any critical judgements in preparing these financial statements. The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below: Valuation of investments - Investment property Estimations have been made with regards to the carrying value of the investment properties which are held at market value. The Directors have sought expert valuations from a valuation firm to assist with these key estimations. Further details are disclosed in note 15. Useful economic life of tangible fixed assets Residual values are estimated for commercial vehicles held as fixed assets. The Directors use available market data, history of recoverable values and their judgement in making these estimates.
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 33
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 34
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 35
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Taxation (continued)
Page 36
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 37
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 38
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
13.Tangible fixed assets (continued)
Page 39
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
13.Tangible fixed assets (continued)
Page 40
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 41
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Freehold properties were valued in June 2023, based on an exercise carried out by FHP, an independent surveyor, having an appropriate recognised qualification and recent experience in the location and class of property being valued.
Freehold properties were valued in June 2023, based on an exercise carried out by FHP, an independent surveyor, having an appropriate recognised qualification and recent experience in the location and class of property being valued.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 43
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 44
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Finance leases are secured over the assets to which they relate. Bank borrowing is secured by a fixed and floating charge over the assets of the group, supported by a company cross guarantee.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 46
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 47
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
24.Deferred taxation (continued)
The following were outstanding at the year end:
• A charge with Barclays Bank PLC created on 31 October 2024 contains a fixed charge and negative pledge over the freehold property being Burlington Road, Bemuda Industrial Estate, Nuneaton, CV10 7QR. • A charge with Barclays Bank PLC created on 2 November 2018 contains a fixed charge and negative pledge over the leasehold property being 8 Dabell Avenue, Blenheim Industrial Estate, Nottingham, NG6 8WA. • A charge with Mr Frank Litchfield created on 10 May 2018 over Allegro Transport Limited, Birchwood Way, Somercotes Alfreton, Derbyshire, DE55 4QQ. • A charge with HSBC Asset Finance (UK) Ltd and HSBC Equipment Finance (UK) Ltd created on 9 February 2017 contains a fixed charge and negative pledge over all the collections account in RH Rentals Limited. • A charge with Bmbf (No.24) Limited created on 12 April 2016 contains a fixed charge and negative pledge over all items let to RH Rentals Limited under a principal agreement.
Page 48
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
• A charge with Barclays Bank PLC created on 31 March 2016 contains a fixed and floating charge and a negative pledge over all the property or undertaking of the group.
• A charge with Barclays Mercantile Business Finance Limited created on 11 March 2016 contains a fixed charge and negative pledge over all items let to RH Rentals under a principal agreement. • A charge with Lombard North Central PLC created on 8 March 2016 contains a fixed charge and negative pledge over sub-hire agreements. • A charge with Lombard North Central PLC created on 5 November 2015 contains a fixed charge and negative pledge over sub-hire agreements. • A charge with Barclays Mercantile Business Finance Limited created on 6 November 2014 contains a fixed charge and negative pledge over all items let to RH Commercial Vehicles under a principal agreement. • A charge with Barclays Bank PLC created on 9 September 2015 contains a negative pledge over the freehold property being 6 Clover Nook Road, South Normanton Alfreton, Derbyshire. • A charge with Barclays Bank PLC created on 2 December 2013 contains a fixed and floating charge over all the property or undertaking of RH Commercial Vehicles Limited. • A legal charge with Barclays Bank PLC created on 8 February 2012 over the leasehold property known as Unit 7, Broadfields Park, Sheffield, South Yorkshire. • A legal charge with Barclays Bank PLC created on 15 April 2009 over the leasehold property known as Unit 7, Broadfields Park, Sheffield, S8 OXF. • A legal charge with Barclays Bank PLC created on 23 January 2007 over the leasehold property known as 2 Oaks Court, Warwick Road, Borehamwood. • A legal charge with Barclays Bank PLC created on 12 December 2006 over the leasehold property known as The White Villa, Dark Lane, Whatton, Nottingham. • A legal charge with Barclays Bank PLC created on 12 December 2006 over the land and buildings near West Garth, West Tanfield, North Yorkshire. • A legal charge with Barclays Bank PLC created on 4 August 2006 over the freehold property 7A, 7B, 7C, 7D, 9A, 9B, 9C, 9D, 5A, 5C, Colwick Quays, Industrial Estate, Nottingham. • A debenture with Barclays Bank PLC created on 18 February 1994 contains a fixed and floating charge over the undertaking and all property and assets present and future including goodwill, bookdebts, uncalled capital, buildings, fixtures and fixed plant and machinery.
Page 49
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Group operates a defined contribution scheme, the assets being held separate from the Company in an independent administered fund. The employer contributions are charged directly to the consolidated profit and loss account.
In the current year there was a charge to the consolidated profit and loss account in respect of the pension costs for the defined contribution scheme of £156k (2023 - £129k). Contributions totalling £38k (2023 - £30k) were payable to the fund at the year end and are included within creditors.
Page 50
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
30.Related party transactions (continued)
The RH Group Ltd is controlled by the Directors.
Page 51
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