Company registration number 07232590 (England and Wales)
ROMACO LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
ROMACO LIMITED
COMPANY INFORMATION
Directors
P I Hodari
S J Marshall
K J Richardson
M Severs
(Appointed 1 March 2024)
M Allison
(Appointed 1 March 2024)
Secretary
Smart Sol Services Ltd
Company number
07232590
Registered office
15 Carnarvon Street
Manchester
M3 1HJ
Auditor
Lopian Gross Barnett & Co
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
Business address
15 Carnarvon Street
Manchester
M3 1HJ
ROMACO LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12 - 13
Company balance sheet
14 - 15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Company statement of cash flows
19
Notes to the financial statements
20 - 37
ROMACO LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Principal activities

The principal activity of the Group is the provision of short and medium term finance to property professionals in England, Scotland and Wales. The Group’s products include development finance, bridging loans and Buy-To-Let (BTL) mortgages and these products range in tenor from between 6 months and 5 years and between £50,000 and £2.5m in size, with an average balance of £300,000.

Review of the business

During the year under review the Group almost doubled its revenue compared with the 7 months to 31 December 2023 to £21m which in turn resulted in an increase in profit before taxation of £1.5m to £2.9m. Increased loan originations resulted in a gross loan book of £173m, which includes off balance sheet loans funded by the forward flow facility and loans originated by our 49% Associate Romaco SPV 7 Limited (31 December 2023: £132m).

In December 2024 a further bank facility of £100m was provided by NatWest and this extends the total facilities available to the Group to around £400m. This has facilitated the launch of several new products, including RomaFlow, RomaGrow and RomaPro and new Revolving Credit Facility that enables drawdown funding within 48 hours.

The directors are satisfied with progress made.

Principal risks and uncertainties

The Group may be affected by a number of risks, not all of which are under its control, the primary risks being noted below.

Credit risk

The primary risk relates to the potential financial loss arising from net realisations from the security supporting the Group’s loans being insufficient to cover a loan in full. This risk is mitigated by prudent, yet commercial, underwriting processes. This involves strict vetting of borrowers, the purpose for which a loan is to be used and the ultimate repayment strategy a borrower employs to exit a loan. Collateral security is taken, where appropriate, to increase the level of cover. Loan to value (LTV), Loan to Cost (LTC) and Loan to Gross Development Value (LTGDV) covenants which are offered to customers are constantly reviewed in line with market conditions and are adjusted appropriately. Consequently, These have remained at a prudent level throughout the period under review and currently weighted average LTVs, LTCs and LTGDVs are 59%, 49% and 42% respectively. Weighted average LTVs on the Bridging and BTL portfolio are currently around 63%. All loans are strictly monitored throughout the contract period to ensure that a borrower’s ultimate repayment strategy remains viable. Swift action is taken to support customers where either projects are faltering, payments are missed on BTL loans or an exit route becomes doubtful.

Management is comfortable that its risk management processes are suitably robust and the directors are pleased to report that there have been no capital or interest losses during the period under review and therefore a reserve for potential losses at the period end is not considered necessary. This continues the Group’s enviable record of default levels well below the industry average and never having incurred a capital or interest loss since inception in 2010.

Inflation and property market risks

In October 2021, the Group tightened criteria on many of its products, strengthened stress testing and withdrew all fixed rate products from the market. Since it was clear that during the period, inflation remained a risk, management did not loosen the Group’s criteria and currently have no intention to do so.

ROMACO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

Interest rate risk

Throughout the period both the interest charged to borrowers and the interest levied by our funding providers has largely been on a variable basis. As a result, the Group’s net interest margin was not materially adversely impacted by the increases in the Bank of England’s base rate during the period. However, because interest charged to borrowers is subject to a collar, which means that they cannot fall below a certain level, Group profitability was protected during the period and should be favourably impacted by interest rate reductions expected in the year to 31 December 2024.

Liquidity risk

The Group treasury function is tasked with maintaining sufficient liquidity to meet its contracted obligations. Cash balances are maintained at a level that is around 3% of the gross loan balance or sufficient to cover at least 5 months of operational expenditure including loan interest payments, payroll and broker fees. As further mitigation against liquidity risk management have negotiated favourable “wet funding” facilities from the Group’s fund providers which covers the loan value in advance of cash being remitted to the borrower.

Operational risk

Operational risk is defined as the loss or adverse impact to the business including but not limited to fraud, cyber attacks, GDPR breaches or general process failures. The Group maintains a number of internal committees that report to the Main Board on subjects including Cyber and Information Security, Data Protection and aspects of regulatory compliance. In addition, a rolling staff training program exists to ensure that all members of staff are up to date with subject matters such as AML, KYC and GDPR.

The Main Board includes non executive directors responsible for monitoring the compliance of operational management in respect of all the above subject matters and, in line with the requirements of the institutional funding lines, processes and procedures are audited 3 to 4 times per year. In addition, the Main Board has recently commissioned an independent internal audit which gave a clean bill of health on certain processes.

ROMACO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

Governance and Investment in Employees

The adoption of ESG is at the heart of the business and in particular investment in our staff. During the period, 4 colleague led committees have been created covering diversity and inclusion, colleague engagement, the environment and social matters. Each committee is led by a member of the senior team.

The senior team has been extended and strengthened by the appointment of a Technology & Data Director, People Director, Commercial Director, Finance Director and Head of Sales, reporting to the Main Board via a newly created ExCo board, for better governance, tactics to ensure business KPIs are met and disseminated to the Senior Leadership Team.

It is a corporate goal to develop our people and to attract and retain the best talent in the industry, allowing our colleagues to grow their careers at Roma. Various initiatives to support staff include:

 

This investment has resulted in a number of industry awards for both the Company and a number of our colleagues. In addition our staff wrote a significant part of the syllabus for the new industry qualification known as the Certified Practitioner in Specialist Property Finance (CPSP). This qualification has been adopted by the London Institute of Banking and Finance (LIBF).

 

All staff have been enrolled in an annual training programme encompassing industry essentials such as AML, Data Protection Regulations and Cyber Awareness. This is a formal training programme and is mandatory for all staff.

 

Product development

It is our vision to create a best in class, values-based work environment where colleagues go above and beyond to provide an exceptional customer journey To ensure that we achieve this vision and remain ahead of our competition, investment in our product suite is essential. New products continue to be launched including RomaGrow and RomaPro that followed the launch of RomaFlow last year. A Revolving Credit Facility has also been added to the product suite ensuring that borrowers can move quickly and decisively when opportunities arise.

 

We have three separate sales teams to support brokers, packagers, networks, direct customers and build new affinity partnerships, such as property training businesses and trade bodies of associated industries. This, coupled with our ‘customer for life’ and ‘borrower first’ strategies continue to grow the levels of repeat business which is now approaching 30% of our annual originations.

 

Technology and Management Information Systems

Investment in Technology is another key area for the business. This has included Cyber Essentials, disaster recovery, data integrity, wider use of PowerBI, new phone & CRM systems and a new corporate Portal has been developed during the period. Within the next twelve months it is the intention to replace and upgrade the current Loan Management system that will future proof the business and greatly enhance the customer journey.

ROMACO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Key performance indicators

The Key Performance indicators of the business which are all aligned to employee performance are considered to be:

 

12 months to 31 December 2024

7 months to 31 December 2023

Loan Originations

£158m

£59m

Loan Redemptions

£117m

£53m

Revenue

£21.1m

£10.8m

Profit Before Taxation

£2.9m

£1.5m

Loan Book (including forward flow)

£173m

£132m

These KPI’s are reported on and discussed at both the EXCO and Main Board on a monthly basis. The Directors are satisfied that the level of funding and human resources will enable future growth in both the size of the loan book and profit before taxation.

Looking to the future

With the governmental pledge to create 1.5 million new homes over the next five years, the Roma Group is well-placed to play its part in financing SME housebuilders and property professionals while they endeavour to help solve the UK’s housing crisis.

On behalf of the board

K J Richardson
Director
5 August 2025
ROMACO LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

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

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £600,000. 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:

P I Hodari
S J Marshall
K J Richardson
K B Bernbaum
(Resigned 26 November 2024)
M Severs
(Appointed 1 March 2024)
M Allison
(Appointed 1 March 2024)
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 auditor of the company 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 auditor of the company is aware of that information.

Medium-sized group exemption

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

On behalf of the board
K J Richardson
Director
5 August 2025
ROMACO LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position 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 safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ROMACO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ROMACO LIMITED
- 7 -
Opinion

We have audited the financial statements of Romaco Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

ROMACO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROMACO LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent 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 parent 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.

ROMACO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ROMACO LIMITED
- 9 -

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.

 

 

 

 

 

 

 

 

 

Due 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. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Brodie FCA (Senior Statutory Auditor)
For and on behalf of Lopian Gross Barnett & Co, Statutory Auditor
Chartered Accountants
1st Floor, Cloister House
Riverside
New Bailey Street
Manchester
M3 5FS
5 August 2025
ROMACO LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Year
Period
ended
ended
31 December
31 December
2024
2023
Notes
£
£
Turnover
3
21,120,258
10,765,207
Cost of sales
(10,628,180)
(4,924,352)
Gross profit
10,492,078
5,840,855
Administrative expenses
(7,095,998)
(3,391,086)
Other operating income
445,000
280,000
Operating profit
4
3,841,080
2,729,769
Share of profits of associates
312,959
121,479
Interest receivable and similar income
6
8,173
-
0
Interest payable and similar expenses
7
(1,250,279)
(1,379,018)
Profit before taxation
2,911,933
1,472,230
Tax on profit
8
(664,584)
(336,299)
Profit for the financial year
2,247,349
1,135,931
Profit for the financial year is attributable to:
- Owners of the parent company
2,250,243
1,137,821
- Non-controlling interests
(2,894)
(1,890)
2,247,349
1,135,931
ROMACO LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Year
Period
ended
ended
31 December
31 December
2024
2023
£
£
Profit for the year
2,247,349
1,135,931
Other comprehensive income
-
-
Total comprehensive income for the year
2,247,349
1,135,931
Total comprehensive income for the year is attributable to:
- Owners of the parent company
2,250,243
1,137,821
- Non-controlling interests
(2,894)
(1,890)
2,247,349
1,135,931
ROMACO LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
7,681
8,376
Tangible assets
11
104,362
88,587
Investment property
12
-
0
287,619
Investments
13
693,755
380,796
805,798
765,378
Current assets
Stocks
16
329,534
-
Debtors
17
113,306,907
95,434,264
Cash at bank and in hand
14,005,701
5,849,048
127,642,142
101,283,312
Creditors: amounts falling due within one year
18
(76,367,383)
(86,563,121)
Net current assets
51,274,759
14,720,191
Total assets less current liabilities
52,080,557
15,485,569
Creditors: amounts falling due after more than one year
19
(38,962,911)
(4,196,830)
Provisions for liabilities
Deferred tax liability
22
26,091
24,241
(26,091)
(24,241)
Net assets excluding related party loans
13,091,555
11,264,498
Related party loans
18
(5,434,721)
(5,352,470)
Net assets
7,656,834
5,912,028
Capital and reserves
Called up share capital
24
116
100
Share premium account
97,441
-
0
Profit and loss reserves
7,564,026
5,913,783
Equity attributable to owners of the parent company
7,661,583
5,913,883
Non-controlling interests
(4,749)
(1,855)
7,656,834
5,912,028

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

ROMACO LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2024
31 December 2024
- 13 -
The financial statements were approved by the board of directors and authorised for issue on 5 August 2025 and are signed on its behalf by:
05 August 2025
K J Richardson
Director
Company registration number 07232590 (England and Wales)
ROMACO LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
7,681
8,376
Tangible assets
11
104,362
88,587
Investments
13
130
129
112,173
97,092
Current assets
Debtors
17
5,520,532
5,183,259
Cash at bank and in hand
865,348
571,081
6,385,880
5,754,340
Creditors: amounts falling due within one year
18
(841,313)
(689,047)
Net current assets
5,544,567
5,065,293
Total assets less current liabilities
5,656,740
5,162,385
Creditors: amounts falling due after more than one year
19
(28,355)
(37,986)
Provisions for liabilities
Deferred tax liability
22
26,091
24,241
(26,091)
(24,241)
Net assets excluding related party loans
5,602,294
5,100,158
Related party loans
18
(3,587,787)
(3,435,536)
Net assets
2,014,507
1,664,622
Capital and reserves
Called up share capital
24
116
100
Share premium account
97,441
-
0
Profit and loss reserves
1,916,950
1,664,522
Total equity
2,014,507
1,664,622

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £852,428 (2023 - £1,573,326 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

ROMACO LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
31 December 2024
- 15 -
The financial statements were approved by the board of directors and authorised for issue on 5 August 2025 and are signed on its behalf by:
05 August 2025
K J Richardson
Director
Company registration number 07232590 (England and Wales)
ROMACO LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 June 2023
100
-
0
5,425,962
5,426,062
-
5,426,062
Period ended 31 December 2023:
Profit and total comprehensive income
-
-
1,137,821
1,137,821
(1,890)
1,135,931
Dividends
9
-
-
(650,000)
(650,000)
-
(650,000)
Other movements
-
-
-
-
35
35
Balance at 31 December 2023
100
-
0
5,913,783
5,913,883
(1,855)
5,912,028
Period ended 31 December 2024:
Profit and total comprehensive income
-
-
2,250,243
2,250,243
(2,894)
2,247,349
Issue of share capital
24
16
97,441
-
97,457
-
97,457
Dividends
9
-
-
(600,000)
(600,000)
-
(600,000)
Balance at 31 December 2024
116
97,441
7,564,026
7,661,583
(4,749)
7,656,834
ROMACO LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2023
100
-
0
741,196
741,296
Period ended 31 December 2023:
Profit and total comprehensive income for the period
-
-
1,573,326
1,573,326
Dividends
9
-
-
(650,000)
(650,000)
Balance at 31 December 2023
100
-
0
1,664,522
1,664,622
Period ended 31 December 2024:
Profit and total comprehensive income
-
-
852,428
852,428
Issue of share capital
24
16
97,441
-
97,457
Dividends
9
-
-
(600,000)
(600,000)
Balance at 31 December 2024
116
97,441
1,916,950
2,014,507
ROMACO LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
29
(13,966,274)
17,100,741
Interest paid
(1,250,279)
(1,379,018)
Income taxes paid
(999,603)
(141,225)
Net cash (outflow)/inflow from operating activities
(16,216,156)
15,580,498
Investing activities
Purchase of tangible fixed assets
(56,836)
(16,500)
Purchase of investment property
-
(287,619)
Purchase of subsidiaries, net of cash acquired
(1)
(65)
Dividends received from associate
-
600,000
Interest received
8,173
-
0
Net cash (used in)/generated from investing activities
(48,664)
295,816
Financing activities
(Repayment)/proceeds of borrowings
(4,256,859)
33,465,333
(Repayment)/proceeds of bank loans
29,287,963
(46,702,529)
Payment of finance leases obligations
(9,631)
(5,617)
Dividends paid to equity shareholders
(600,000)
(650,000)
Net cash generated from/(used in) financing activities
24,421,473
(13,892,813)
Net increase in cash and cash equivalents
8,156,653
1,983,501
Cash and cash equivalents at beginning of year
5,849,048
3,865,547
Cash and cash equivalents at end of year
14,005,701
5,849,048
ROMACO LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
30
(80,894)
(1,819,999)
Interest paid
(457,715)
(223,321)
Income taxes refunded
111,078
77,035
Net cash outflow from operating activities
(427,531)
(1,966,285)
Investing activities
Purchase of tangible fixed assets
(56,836)
(16,500)
Proceeds from disposal of subsidiaries
(1)
(65)
Interest received
8,015
-
0
Dividends received
1,228,000
1,253,211
Other income received from investments
-
0
600,000
Net cash generated from investing activities
1,179,178
1,836,646
Financing activities
Proceeds from borrowings
152,251
1,101,914
Payment of finance leases obligations
(9,631)
(5,617)
Dividends paid to equity shareholders
(600,000)
(650,000)
Net cash (used in)/generated from financing activities
(457,380)
446,297
Net increase in cash and cash equivalents
294,267
316,658
Cash and cash equivalents at beginning of year
571,081
254,423
Cash and cash equivalents at end of year
865,348
571,081
ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
1
Accounting policies
Company information

Romaco Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 15 Carnarvon Street, Manchester, M3 1HJ.

 

The group consists of Romaco Limited and all of its subsidiaries.

1.1
Reporting period

The current reporting period is a 12 month period. The prior reporting period is less than 12 months due to the shortening of the year end.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Romaco Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in associates.

 

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -

Investments in associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in associates include acquired goodwill.

 

If the group’s share of losses in an associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the associate.

 

Unrealised gains arising from transactions with associates are eliminated to the extent of the group’s interest in the entity.

1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.6
Turnover

Fee income represents interest and fees receivable from financial lending contracts. Revenue is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to customers.

1.7
Intangible fixed assets other than goodwill

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

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Software
50% straight line
1.8
Tangible fixed assets

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

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

Fixtures and fittings
33% straight line
Computers
33% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
1.9
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries and associates are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

1.12
Stocks

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

 

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

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

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 23 -
1.14
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.15
Equity instruments

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

1.16
Taxation

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

ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 24 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.

1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.18
Retirement benefits

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

1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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
2024
2023
£
£
Turnover analysed by class of business
Interest and fees on lending
21,120,258
10,765,207
2024
2023
£
£
Other revenue
Interest income
8,173
-

All turnover is derived in the United Kingdom.

4
Operating profit
2024
2023
£
£
Operating profit for the period is stated after charging:
Fees payable to the group's auditor for the audit of the group's financial statements
6,600
6,000
Depreciation of owned tangible fixed assets
41,061
23,998
Amortisation of intangible assets
695
3,434
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
65
59
65
59
ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
5
Employees
(Continued)
- 26 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,622,762
1,716,456
3,622,762
1,716,456
Social security costs
396,213
175,900
396,213
175,900
Pension costs
194,052
43,092
194,052
43,092
4,213,027
1,935,448
4,213,027
1,935,448
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
8,015
-
0
Other interest income
158
-
Total income
8,173
-
0
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
8,015
-
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
499,399
Other interest on financial liabilities
456,818
222,798
456,818
722,197
Other finance costs:
Interest on finance leases and hire purchase contracts
897
523
Other interest
792,564
656,298
Total finance costs
1,250,279
1,379,018
ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
661,877
339,032
Adjustments in respect of prior periods
857
-
0
Total current tax
662,734
339,032
Deferred tax
Origination and reversal of timing differences
1,850
(2,733)
Total tax charge
664,584
336,299

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
2,911,933
1,472,230
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
727,983
368,058
Tax effect of expenses that are not deductible in determining taxable profit
14,011
5,536
Tax effect of income not taxable in determining taxable profit
(78,240)
(30,370)
Unutilised tax losses carried forward
2,067
1,350
Adjustments in respect of prior years
857
(7,273)
Permanent capital allowances in excess of depreciation
(3,944)
1,874
Tax at marginal rate
-
0
(143)
Deferred tax
1,850
(2,733)
Taxation charge
664,584
336,299
9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
600,000
650,000
ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
10
Intangible fixed assets
Group
Software
£
Cost
At 1 January 2024 and 31 December 2024
26,199
Amortisation and impairment
At 1 January 2024
17,823
Amortisation charged for the year
695
At 31 December 2024
18,518
Carrying amount
At 31 December 2024
7,681
At 31 December 2023
8,376
Company
Software
£
Cost
At 1 January 2024 and 31 December 2024
26,199
Amortisation and impairment
At 1 January 2024
17,823
Amortisation charged for the year
695
At 31 December 2024
18,518
Carrying amount
At 31 December 2024
7,681
At 31 December 2023
8,376
ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
11
Tangible fixed assets
Group
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
44,206
151,265
77,062
272,533
Additions
-
0
56,836
-
0
56,836
At 31 December 2024
44,206
208,101
77,062
329,369
Depreciation and impairment
At 1 January 2024
37,470
123,088
23,388
183,946
Depreciation charged in the year
5,352
19,835
15,874
41,061
At 31 December 2024
42,822
142,923
39,262
225,007
Carrying amount
At 31 December 2024
1,384
65,178
37,800
104,362
At 31 December 2023
6,736
28,177
53,674
88,587
Company
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
44,206
151,265
77,062
272,533
Additions
-
0
56,836
-
0
56,836
At 31 December 2024
44,206
208,101
77,062
329,369
Depreciation and impairment
At 1 January 2024
37,470
123,088
23,388
183,946
Depreciation charged in the year
5,352
19,835
15,874
41,061
At 31 December 2024
42,822
142,923
39,262
225,007
Carrying amount
At 31 December 2024
1,384
65,178
37,800
104,362
At 31 December 2023
6,736
28,177
53,674
88,587
ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
12
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 January 2024 and 31 December 2024
287,619
-
Transfers to inventories
(287,619)
-
At 31 December 2024
-
-

Investment property comprises of commercial property purchased during the prior period. The property has been appropriated to stock during the financial year as it is being held for sale.

13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
81
80
Investments in associates
15
693,755
380,796
49
49
693,755
380,796
130
129
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 January 2024
380,796
Share of profit
312,959
At 31 December 2024
693,755
Carrying amount
At 31 December 2024
693,755
At 31 December 2023
380,796
ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
13
Fixed asset investments
(Continued)
- 31 -
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
£
Cost or valuation
At 1 January 2024
129
Additions
1
At 31 December 2024
130
Carrying amount
At 31 December 2024
130
At 31 December 2023
129
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Romaco SPV 1 Limited
England & Wales
Ordinary
100.00
Romaco SPV 2 Limited
England & Wales
Ordinary
100.00
Romaco SPV 3 Limited
England & Wales
Ordinary
100.00
Romaco SPV 4 Limited
England & Wales
Ordinary
100.00
Romaco SPV 5 Limited
England & Wales
Ordinary
100.00
Romaco SPV 6 Limited
England & Wales
Ordinary
100.00
Romaco SPV 8 Limited
England & Wales
Ordinary
100.00
Romaco SPV 9 Limited
England & Wales
Ordinary
100.00
Roma Planning Limited
England & Wales
Ordinary
65.00
Romaco SPV 10 Limited
England & Wales
Ordinary
100.00
15
Associates

Details of associates at 31 December 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Romaco SPV 7 Limited
England & Wales
Ordinary
49

For the year ended 31 December 2024, Romaco SPV 7 Ltd recognised a profit of £312,959.

ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
329,534
-
0
-
0
-
0

The carrying amount of stock is property held for sale.

17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
108,764,583
92,867,701
95,576
63,771
Unpaid share capital
97,572
115
97,557
100
Corporation tax recoverable
50,144
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
4,123,493
4,471,499
Amounts owed by undertakings in which the company has a participating interest
130,000
78,000
130,000
78,000
Other debtors
38,110
411,530
-
0
-
0
Prepayments and accrued income
4,226,498
2,076,918
1,073,906
569,889
113,306,907
95,434,264
5,520,532
5,183,259
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
62,033,425
71,860,284
-
0
-
0
Obligations under finance leases
21
9,630
9,630
9,630
9,630
Trade creditors
101,402
228,970
96,002
228,658
Amounts owed to group undertakings
-
0
-
0
100,000
-
0
Amounts owed to undertakings in which the group has a participating interest
60,976
60,976
-
0
-
0
Corporation tax payable
389,630
676,355
-
0
-
0
Other taxation and social security
121,847
90,087
121,847
90,087
Other creditors
10,625,952
11,842,074
1,926
5,174
Accruals and deferred income
3,024,521
1,794,745
511,908
355,498
76,367,383
86,563,121
841,313
689,047
ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
25,934,556
1,158,844
-
0
-
0
Obligations under finance leases
21
28,355
37,986
28,355
37,986
Other borrowings
20
13,000,000
3,000,000
-
-
38,962,911
4,196,830
28,355
37,986
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
87,967,981
73,019,128
-
0
-
0
Other loans
13,000,000
3,000,000
-
-
100,967,981
76,019,128
-
-
Payable within one year
62,033,425
71,860,284
-
0
-
0
Payable after one year
38,934,556
4,158,844
-
-
The loans are secured by fixed charges over the assets of the company.
Related party loans
Group
Company
2024
2023
2024
2023
£
£
£
£
Other creditors
5,434,721
5,352,470
3,539,676
3,435,536
5,434,721
5,352,470
3,539,676
3,435,536
21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
9,630
9,630
9,630
9,630
In two to five years
28,355
37,986
28,355
37,986
37,985
47,616
37,985
47,616
ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
22
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
26,091
24,241
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
26,091
24,241
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
24,241
24,241
Charge to profit or loss
1,850
1,850
Liability at 31 December 2024
26,091
26,091

The deferred tax liability set out above is expected to reverse within 3 years and relates to accelerated capital allowances.

23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
194,052
43,092

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 35 -
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary shares of 1p each
-
10,000
-
100
Ordinary A shares of 1p each
7,123
-
71
-
Ordinary B Shares of 1p each
2,877
-
29
-
Ordinary C Shares of 0.01p each
157,188
-
16
-
167,188
10,000
116
100

During the year, the company reclassified the Ordinary Shares to Ordinary A & B Shares and issued 157,188 1p Ordinary C Shares.

25
Financial commitments, guarantees and contingent liabilities

The company is subject to charges from Shawbrook Bank Limited, British Business Investments Limited, TMF Trustees Limited, The Greater Manchester Combined Authority, LGB & Co Limited, Cambridge Building Society and Natwest Plc in regards to monies lent to subsidiaries of Romaco Limited.

26
Events after the reporting date

There were no events after the reporting period end date which require disclosure at the balance sheet date.

27
Related party transactions
Transactions with related parties
Management fees received
Dividends received
2024
2023
2024
2023
£
£
£
£
Company
Entities over which the entity has control, joint control or significant influence
445,000
280,000
-
600,000

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Entities over which the group has control, joint control or significant influence
60,976
60,976
Other related parties
4,000,000
4,000,000
Company
Entities over which the company has control, joint control or significant influence
100,000
-
Other related parties
2,803,066
2,733,066
ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
27
Related party transactions
(Continued)
- 36 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Entities over which the group has control, joint control or significant influence
130,000
78,000
Company
Entities over which the company has control, joint control or significant influence
4,253,493
4,549,499
28
Ultimate controlling party

The ultimate controlling party is Mr P Hodari.

29
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit after taxation
2,247,349
1,135,931
Adjustments for:
Share of results of associates and joint ventures
(312,959)
(121,479)
Taxation charged
664,584
336,299
Finance costs
1,250,279
1,379,018
Investment income
(8,173)
-
0
Amortisation and impairment of intangible assets
695
3,434
Depreciation and impairment of tangible fixed assets
41,061
23,998
Movements in working capital:
Increase in stocks
(41,915)
-
(Increase)/decrease in debtors
(17,725,042)
21,679,573
Decrease in creditors
(82,153)
(7,336,033)
Cash (absorbed by)/generated from operations
(13,966,274)
17,100,741
ROMACO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 37 -
30
Cash absorbed by operations - company
2024
2023
£
£
Profit after taxation
852,428
1,573,326
Adjustments for:
Taxation credited
(109,228)
(86,834)
Finance costs
457,715
223,321
Investment income
(1,236,015)
(1,853,211)
Amortisation and impairment of intangible assets
695
3,434
Depreciation and impairment of tangible fixed assets
41,061
23,998
Movements in working capital:
(Increase)/decrease in debtors
(239,816)
1,264,683
Increase/(decrease) in creditors
152,266
(2,968,716)
Cash absorbed by operations
(80,894)
(1,819,999)
31
Analysis of changes in net debt - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
5,849,048
8,156,653
14,005,701
Borrowings excluding overdrafts
(81,371,598)
(25,031,104)
(106,402,702)
Obligations under finance leases
(47,616)
9,631
(37,985)
(75,570,166)
(16,864,820)
(92,434,986)
32
Analysis of changes in net debt - company
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
571,081
294,267
865,348
Borrowings excluding overdrafts
(3,435,536)
(152,251)
(3,587,787)
Obligations under finance leases
(47,616)
9,631
(37,985)
(2,912,071)
151,647
(2,760,424)
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