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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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RANDOM FACTOR LIMITED
COMPANY INFORMATION
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RANDOM FACTOR LIMITED
CONTENTS
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RANDOM FACTOR LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
This strategic report provides a balanced and comprehensive review of the Company’s performance during the year ended 31 December 2024. It reflects the business’s position at the year end, taking into account the scale and nature of our operations, as well as the risks and uncertainties we face.
Financial Overview
For the year ended 31 December 2024, the Company achieved a profit before taxation of £424,898 (2023: £226,586). The Directors are very pleased with the Company’s performance in 2024. Following a challenging 2023, which included the loss of our largest contract, the business has responded strongly. Although we lost this major contract in 2023, we regained a proportion of the work during the last six months of 2024 and have now secured a large proportion of it for 2025. This, along with new business wins, improved operational efficiency, and greater market stability, contributed to a significant increase in profitability. Strategic efforts to streamline production and enhance customer service have continued to yield positive results. Turnover Management considers the Company’s turnover performance to be in line with expectations and ahead of the general market trend. The return to growth reflects the successful execution of our commercial strategy and client retention efforts. Operating Costs Operating costs remained well-controlled throughout the year, consistent with the prior period. Continued focus on efficiency has supported margin improvement.
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RANDOM FACTOR LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company’s operations and strategic direction are subject to various risks. Management continues to monitor and manage these risks, adapting strategies as needed. Key areas include:
Economic downturn The Company remains exposed to macroeconomic pressures, with consumer demand being a critical driver of revenue. While economic conditions stabilised during 2024, we remain vigilant and agile, adjusting marketing and pricing strategies in response to any downturn. Of particular concern is the re-emergence of global trade tensions, including the tariff war instigated by U.S. President Donald Trump. These developments have the potential to disrupt international supply chains, increase input costs, and weaken overall economic confidence. Management continues to monitor these developments closely and will adapt procurement and pricing strategies as necessary to mitigate any adverse impact. Domestically, the UK Spring Statement 2025 provided some positive signals, including a modest easing of fiscal policy, continued support for businesses through capital allowance schemes, and a reaffirmed commitment to controlling inflation. While these measures are welcome, the broader economic recovery remains fragile, and consumer confidence is still subject to fluctuation. Product manufacturing Maintaining high product quality and relevance to market demand is essential to the Company’s success. Key risk areas include: - Quality of labels - Competitive pricing - Breadth and adaptability of the product range Management remains confident in the Company's ability to deliver high-quality products that meet evolving customer needs.
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RANDOM FACTOR LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Turnover Growth
Sales performance continues to be a key focus. Although reported turnover for the year grew by £71k this was affected by a change in one major customer’s supply arrangement—resulting in a £600k reduction in reported turnover—this was due to the customer moving to a conversion-only model and supplying their own material free of charge (FOC). This change had no negative impact on profitability and in fact contributed to an improvement in gross margin. Adjusting for this, the underlying turnover performance would have shown growth compared to 2023. Gross margin increased from 34% to 37.4%, reflecting better material usage, improved operational efficiency, and an enhanced product mix. Economic conditions also showed further signs of improvement during 2024, with inflation pressures easing and interest rates beginning to fall. We expect these trends to continue benefiting the business into 2025. Working Capital Management Average debtor days at year end were 57.5 days (2023: 51.7 days; 2022: 46.1 days), remaining well within our target of 60.0 days. Stock turns improved to 10.2:1 (2023: 9.8:1), reflecting the impact of our continued focus on inventory efficiency and stock reduction throughout the year.
In addition to financial metrics, the Company monitors the following non-financial indicators:
New Business Acquisition The value of new contracts secured during 2024 exceeded our targets and helped drive overall performance. Our business development strategy continues to deliver strong results. Contract Losses Contract losses are closely tracked and categorised as either within or outside our control. Losses under our control were in line with expected levels, and those due to external factors (such as client insolvency) remained within anticipated tolerances. Productivity and Efficiency Operational metrics across the business showed year-on-year improvement, driven by strategic capital investment, product mix optimisation, and enhanced process management.
This report was approved by the board on 23 July 2025 and signed on its behalf.
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RANDOM FACTOR LIMITED
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 directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
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;
∙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.
The profit for the year, after taxation, amounted to £304,091 (2023 - £136,743).
The Directors recommend the payment of a dividend this year of £18,000 (2023 - £45,000).
The directors who served during the year were:
The auditors, Price Bailey LLP, will be deemed reappointed in accordance with section 485 of the Companies Act 2006.
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RANDOM FACTOR LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board and signed on its behalf.
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RANDOM FACTOR LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF RANDOM FACTOR LIMITED
We have audited the financial statements of Random Factor Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Income and Retained Earnings, the Consolidated and Company Balance Sheets, the Consolidated Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In 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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RANDOM FACTOR LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF RANDOM FACTOR LIMITED (CONTINUED)
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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RANDOM FACTOR LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF RANDOM FACTOR LIMITED (CONTINUED)
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 gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations. This included those regulations directly related to the financial statements, including financial reporting, tax legislation and distributable profits and industry regulations including GDPR, employment law and health and safety. We communicated the identified laws and regulations with the audit team and remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following: - agreeing the financial statement disclosures to underlying supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; - enquiries of management including those responsible for key regulations; - performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; In addressing the risk of management override of controls, we carried out testing of journal entries and other adjustments for appropriateness, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of significant transactions outside the normal course of business. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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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RANDOM FACTOR LIMITED
INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF RANDOM FACTOR LIMITED (CONTINUED)
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
Statutory Auditors
Tennyson House
Cambridge Business Park
CB4 0WZ
Date:
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RANDOM FACTOR LIMITED
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
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RANDOM FACTOR LIMITED
REGISTERED NUMBER: 04340276
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
The notes on pages 17 to 35 form part of these financial statements.
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RANDOM FACTOR LIMITED
REGISTERED NUMBER: 04340276
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by by
The notes on pages 17 to 35 form part of these financial statements.
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