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Registered number: 05812654 (England & Wales)
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RM EUROPEAN HOLDINGS LIMITED
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ANNUAL REPORTS AND CONSOLIDATED FINANCIAL STATEMENTS
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FOR THE YEAR ENDED
31 DECEMBER 2024
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RM EUROPEAN HOLDINGS LIMITED
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CONTENTS
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Statement of Directors' Responsibilities
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Independent Auditors' Report
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Consolidated Statement of Comprehensive Income
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Consolidated Statement of Financial Position
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Company Statement of Financial Position
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Consolidated Statement of Changes in Equity
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Company Statement of Changes in Equity
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Consolidated Statement of Cash Flows
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Notes to the Financial Statements
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RM EUROPEAN HOLDINGS LIMITED
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COMPANY INFORMATION
- 1 -
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RM EUROPEAN HOLDINGS LIMITED
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STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their Strategic Report for the year ended 31 December 2024.
The group's principal activity is as a classic car auctioneer.
Profits during the year ended 31 December 2024 have decreased from the prior year with a profit on ordinary activities before taxation of £2.8m (2023 - £6.8m). Turnover of £35.5m (2023 - £44.3m) has decreased from the prior year.
In the current year, we successfully delivered eight in-person auctions across Europe and the Middle East, including Paris, Monaco, Tegernsee, Munich, Cliveden House, London, and two inaugural auctions in Dubai. Additionally, we have conducted multiple single-car auctions throughout the year
In the previous year, there were eight in-person auctions held in Europe: Paris, Carrera Italy, Carrera Switzerland, Le Mans, St. Moritz, Villa Erba, London, and Munich. Additionally, there were multiple single car auctions.
Principal risks and uncertainties
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The group has implemented treasury and liquidity management procedures that are appropriate for its size and complexity. The directors actively monitor interest rates and assess the impact of financing costs on the company's financial results. The group is exposed to fluctuations in exchange rates. To mitigate this risk, we operate foreign currency bank accounts and follow a policy of matching payments with receipts.
The group is part of an international group and liquidity and cash flow are monitored at a group level, allowing for the transfer of cash within the group as needed. We also utilise forward exchange contracts to hedge against adverse currency movements on specific transactions.
The directors continue to evaluate the potential impact of the UK's departure from the European Union. We maintain close communication with our customs agents, transport companies, and market analysts to stay informed of changes in import and export regulations. However, we believe the risk is limited as our UK sales constitute only a small fraction of our overall turnover.
Furthermore, the UK's internal car market remains strong, offering opportunities for growth, as evidenced by our expansion into the online auction sector.
Over the past five years, we have successfully expanded into new markets, including Germany, Switzerland, Abu Dhabi, and most recently Dubai in 2024. This strategic growth has diversified our platforms for consignors and buyers, providing resilience against market fluctuations and strengthening our risk management capabilities
The classic car market has experienced cyclical yet secular growth. Prior to the outbreak of Covid-19, signs of slowing were evident due to a contracting global economy. However, we have successfully navigated these challenges by managing our cost base, increasing sales volume, and selectively entering new markets. Our position as one of the leading Classic Car auctioneers globally enables us to counter short-term market adversities and adapt to evolving local and global conditions.
We remain optimistic about the continued growth opportunities in online auctions. Having adapted successfully to recent market dynamics, we continue to implement a hybrid model that integrates online and in-person auctions. At present, the directors do not identify any significant risks or uncertainties specific to the classic car market.
This report was approved by the board and signed on its behalf by:.
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RM EUROPEAN HOLDINGS LIMITED
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present the Annual Report and the Financial Statements of RM European Holdings Limited ("the Company") and its subsidiaries (together "the Group") for the year ended 31 December 2024.
The directors who served during the year were:
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Gregory Anderson (appointed 21 March 2024)
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Financial instruments, price risk, credit risk, liquidity risk and cash flow risk
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Financial instruments, price risk, credit risk, liquidity risk and cash flow risk are considered in the Strategic Report on page 2 under principal risks and uncertainties.
Future developments
There is not expected to be any material changes to the company's business objectives going forward.
The group held third party indemnity insurance on behalf of its directors and officers of the group during the current and prior year.
Prior Year Statement
During the period under review errors were identified in the prior year Financial Statements. The directors have considered the qualitative and quantitive impact of these errors in the Financial Statements and concluded that a prior period restatement is required. For details regarding the restatement, see note 17.
Disclosure of information to the auditors
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the directors are aware, there is no relevant audit information (as defined by Section 418(3) of the Companies Act 2006) of which the company's auditors are unaware; and
∙the directors have taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.
This report was approved by the board and signed on its behalf by:
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RM EUROPEAN HOLDINGS LIMITED
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STATEMENT OF DIRECTORS' RESPONSIBILITIES
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors are responsible for preparing the Strategic Report, the Directors' Report and the consolidated and parent company 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 and of the profit or loss of the Company and the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the parent company and the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company and Group'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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RM EUROPEAN HOLDINGS LIMITED
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RM EUROPEAN HOLDINGS LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2024
We have audited the financial statements of RM European Holdings Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statements of Financial Position, the Consolidated and Company Statements of Changes in Equity, 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 our opinion the financial statements:
∙give a true and fair view of the state of the Group's and of the Parent Company's affairs as at 31 December 2024 and of the Group's profit for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
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 and the Parent Company 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.
Conclusions relating to going concern
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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.
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.
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RM EUROPEAN HOLDINGS LIMITED
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RM EUROPEAN HOLDINGS LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2024
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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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 Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept by the Parent Company and Group, or returns adequate for our audit have not been received from branches not visited by us; or
∙the Parent Company and Group's financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
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As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 Group's and 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 Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.
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RM EUROPEAN HOLDINGS LIMITED
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RM EUROPEAN HOLDINGS LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2024
Auditors' responsibilities for the audit of the financial statements
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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 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.
As part of designing our audit, we determined materiality and assessed the risk of material misstatement in the financial
statements, whether due to fraud or error, and then designed and performed audit procedures responsive to those risks. In particular, we looked at where the directors made subjective judgments such as making assumptions on significant accounting estimates.
We tailored the scope of our audit to ensure that we performed sufficient work to be able to give an opinion on the financial statements as a whole. We used the outputs of a risk assessment, our understanding of the Group and Parent company, its environment, its controls and critical business processes, to consider qualitative factors in order to ensure that we obtained sufficient coverage across all financial statement line items.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. In identifying and assessing risks of material misstatement in respect of irregularities including non-compliance with laws and regulations, our procedures included but were not limited to:
• at the planning stage, we gained an understanding of the legal and regulatory framework applicable to the Group and Parent company, the industry in which they operate, the structure of the Group, and considered the risk of failing to comply with these legal and regulatory requirements;
• we discussed with management the policies and procedures in place regarding compliance with laws and regulations;
• we discussed amongst the engagement team the identified laws and regulations, and remained alert to any indications of non-compliance; and
• during the audit, we focused on areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussions with the directors (as required by auditing standards), from inspection of the Parent company’s regulatory and legal correspondence and review of statutory minutes in the year.
We also considered those other laws and regulations that have a direct impact on the preparation of financial statements,
such as the Companies Act 2006 and UK tax legislation.
Our procedures in relation to fraud included but were not limited to:
• inquiries of management whether they have knowledge of any actual, suspected or alleged fraud;
• gaining an understanding of the internal controls established to mitigate risk related to fraud;
• using analytical procedures to identify any unusual or unexpected relationships;
• discussion amongst the engagement team regarding risk of fraud such as opportunities for fraudulent manipulation of
financial statements; and
• scrutiny of unusual transactions and entries in sensitive nominal ledger accounts.
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RM EUROPEAN HOLDINGS LIMITED
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RM EUROPEAN HOLDINGS LIMITED
FOR THE YEAR ENDED 31 DECEMBER 2024
The primary responsibility for the prevention and detection of irregularities including fraud rests with both those charged with governance and management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
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.
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.
Andrew Moss (Senior Statutory Auditor)
for and on behalf of Lewis Golden LLP
Chartered Accountants and Statutory Auditors
40 Queen Anne Street
London
W1G 9EL
Date: 30 September 2025
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RM EUROPEAN HOLDINGS LIMITED
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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Other interest receivable and similar income
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Interest payable and similar charges
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Profit for the financial year
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Foreign currency translation losses
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Total other comprehensive income for the year
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Total comprehensive income for the year
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Total comprehensive income for the year attributable to:
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Owners of the parent company
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Turnover and operating profit derive wholly from continuing operations.
No Statement of Comprehensive Income is presented for the parent company as permitted by Section 408 of the Companies Act 2006. Its loss (2023 - loss) for the financial year was £100,973 (2023 - £5,987).
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Registered number: 05812654 (England & Wales)
RM EUROPEAN HOLDINGS LIMITED
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 27 form part of these financial statements.
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Registered number: 05812654 (England & Wales)
RM EUROPEAN HOLDINGS LIMITED
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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Creditors: amounts falling due within one year
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 27 form part of these financial statements.
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RM EUROPEAN HOLDINGS LIMITED
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Retranslation on consolidation
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The notes on pages 15 to 27 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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Retranslation on consolidation
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The notes on pages 15 to 27 form part of these financial statements.
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RM EUROPEAN HOLDINGS LIMITED
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Loss for the financial year
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FOR THE YEAR ENDED 31 DECEMBER 2023
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Loss for the financial year
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RM EUROPEAN HOLDINGS LIMITED
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
Cash flows from operating activities
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Profit for the financial year
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Amortisation of intangible assets
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Depreciation of tangible assets
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(Increase)/decrease in stocks
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(Increase)/decrease in debtors
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Decrease/(increase) in amounts owed by group undertakings
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Increase/(decrease) in amounts owed to group undertakings
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Net cash used in investing activities
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Cash flows from financing activities
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Net cash used in financing activities
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Net increase in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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The notes on pages 15 to 27 form part of these financial statements.
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RM EUROPEAN HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
RM European Holdings Limited is a private company limited by shares, incorporated in England and Wales, registered number 05812654. Its registered office is 40 Queen Anne Street, London, W1G 9EL. The principal place of business is 5 Heron Square, Richmond, TW9 1EL.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise stated and in accordance with Financial Reporting Standard 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' ('FRS 102') and the Companies Act 2006.
The consolidated financial statements present the results of the group and its own subsidiaries ("the group") as if they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
Subsidiary undertakings are included using the purchase method of accounting. Under this method the Consolidated Statement of Comprehensive Income and Consolidated Statement of Cash Flows include the results and cash flows of subsidiaries from the date of acquisition and to the date of sale outside the group in the case of disposals of subsidiaries.
The company has taken advantage of the exemption from presenting a Statement of Cash Flows for the parent undertaking.
Turnover comprises the value of charges for the sale of services and goods to third parties. Turnover excludes VAT and equivalent taxes, duty and other disbursements made on behalf of customers. The geographical location of turnover for disclosure purposes is deemed to be the location of the customer.
The group sells classic cars, motorcycles and memorabilia. Turnover from the sale of goods is recognised when invoices or bills of sale are drawn up on completion of the sale. The completion of the sale is deemed to be when the group has transferred the significant risks and rewards of ownership to the buyer.
The group auctions classic cars and memorabilia on behalf of sellers and takes a fee for this service, and also provides auxiliary services such as car valuation. Turnover from the rendering of services is recognised when invoices or bills of sale are drawn up on completion of the sale of the relevant item at auction, or upon completion of the auxiliary services.
The group sells classic cars on behalf of sellers and takes a commission for this service. Turnover from the commission is recognised when invoices or bills of sale are drawn up on completion of the sale. The completion of the sale is deemed to be when the seller has transferred the significant risks and rewards of ownership to the buyer.
The group receives profit allocation income based on its contribution to wider international group income. The period in which income is recognised corresponds to the period in which the income is generated.
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RM EUROPEAN HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Income derives from financial assets that are classified as loans and receivables and is determined using the effective interest method. Effective interest when applied against a financial asset, is a method of calculating the amortised cost of a financial asset and allocating the interest income over the expected life of the asset.
The group earns underwriting fees from its lending activities, which is recognised when the group successfully enters into a financial transaction with its client.
Equity dividends are recognised when they become legally payable.
Debt instruments that are payable or receivable within one year, typically trade and other creditors or debtors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset’s carrying amount and best estimate of its net realisable value, which is an approximation of the amount that the group would receive for the asset if it were to be sold at the reporting date.
Tangible fixed assets are held under the cost model and are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight line method.
Depreciation is provided on the following basis:
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Short leasehold land & buildings
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Statement of Comprehensive Income.
- 16 -
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RM EUROPEAN HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Stocks are stated at the lower of cost and the estimated selling price less costs to sell. The directors gain comfort over the stock valuation by reviewing post year end sales and having an excellent grasp of the market in which the group operates.
Stocks are sometimes held in conjunction with a third party. The value of such items recognised in stock is in line with the signed agreement, which is usually 50%.
Short-term debtors are measured at the transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Creditors are measured at transaction price.
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Current and deferred taxation
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The current tax and deferred tax charges are calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date in the United Kingdom.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that;
- the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
- any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
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Foreign currency translation
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The group’s functional and presentational currency is GBP. Upon consolidation of a foreign subsidiary and its reserves, any retranslation gains or losses are recognised within the Consolidated Statement of Comprehensive Income.
In the consolidated financial statements, the assets and liabilities of a non-GBP functional currency subsidiary are translated into GBP at the rate of exchange ruling at the Statement of Financial Position date. The results and cash flows of a non-GBP functional subsidiary are translated into GBP using the average rate of exchange unless exchange rates fluctuate significantly.
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the Statement of Financial Position date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Any differences are taken to the Consolidated Statement of Comprehensive Income.
- 17 -
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RM EUROPEAN HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid, the group has no further payment obligations.
The contributions are recognised as an expense in the Consolidated Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the group in independently administered funds.
Rentals paid under operating leases are charged to the Consolidated Statement of Comprehensive Income on a straight-line basis over the lease term.
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Related party transactions
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Related party transactions have been disclosed in line with Section 33 of FRS 102, 'Related Party Disclosures'. The directors oversee and are engaged with the operational activities of the group and therefore have a detailed knowledge of which related entities or individuals have entered into transactions with the group during the year.
Estimates and judgments are continually evaluated and are based on historical experience and other facts, including expectations of future events that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimate and assumption that may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year is addressed below:
Stock impairment
The group sells classic cars, motorcycles and memorabilia. Management considers the recoverability of the cost of stock and recognises an impairment when necessary. When considering an impairment, management considers the nature and condition of stock, post year end sales and market conditions in which the group operates. See note 10 to the financial statements for the net carrying amount of stock.
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the group's share of the identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.
- 18 -
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RM EUROPEAN HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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An analysis of turnover by class of business is as follows:
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Commissions, profit allocations, fee and interest income
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Analysis of turnover by country of destination:
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The operating profit is stated after charging:
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Amortisation of intangible assets, including goodwill
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Fees payable to the Group's auditor and its associates for the audit of the company's annual financial statements
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Defined contribution pension scheme contributions
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- 19 -
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RM EUROPEAN HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Staff costs, including directors' remuneration, were as follows:
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The average monthly number of employees, including the directors, during the year was as follows:
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Administration and support
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Key management were remunerated elsewhere in the group during the year and in the prior year.
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Group contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to one director (2023 - nil) in respect of defined contribution pension schemes.
The highest paid director received remuneration of £232,500 (2023 - £nil).
The value of the group's contributions paid to a defined contribution pension scheme in respect of the highest
paid director amounted to £7,500 (2023 - £nil).
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- 20 -
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RM EUROPEAN HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.5%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.5%)
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Expenses not deductible for tax purposes
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Capital allowances for year in excess of depreciation
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(Lower)/higher rate taxes on overseas earnings
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Adjustments to tax charge in respect of prior periods
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
- 21 -
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RM EUROPEAN HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
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RM EUROPEAN HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Short leasehold land & buildings
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Investments in subsidiary companies
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- 23 -
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RM EUROPEAN HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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The following were subsidiary undertakings of the company:
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Auctioneer and dealer of classic cars
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RM Auctions Italia S.R.L.
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Auctioneer of classic cars
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RM Auctions Deutschland GmbH
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Auctioneer and dealer of classic cars
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RM Auctions Suisse S.a.r.l
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Auctioneer of classic cars
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Auctioneer of classic cars
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RM Sothebys Auctions L.L.C.
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Auctioneer and dealer of classic cars
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RM Auctions Netherlands B.V.
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Auctioneer and dealer of classic cars
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RM Sothebys Financial Services (Europe) Limited
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RM Sothebys Financial Services (No1) Limited (100% owned subsidiary of RM Sothebys Financial Services (Europe) Limited)
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Financing classic car purchases
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RM Sothebys Financial Service (No2) Limited (100% owned subsidiary of RM Sothebys Financial Services (Europe) Limited)
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Financing classic car purchases
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Goods for resale includes £12,911,839 (2023 - £5,170,823) which relates to the company's share in stock held with a third party.
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Amounts owed by group undertakings
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Prepayments and accrued income
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Other debtors includes loans receivable of £2,889,720 (2023 - £2,930,565) which are secured against the specific classic car or cars to which they relate.
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- 24 -
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RM EUROPEAN HOLDINGS LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Creditors: amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Creditors: amounts falling due within one year includes bank loans of £nil (2023 - £464,627) which are secured by way of fixed and floating charges on the assets of certain group companies to which they relate.
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Credited to Statement of Comprehensive Income
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Accelerated capital allowances
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- 25 -
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RM EUROPEAN HOLDINGS LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Allotted, called up and fully paid shares
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2 (2023 - 2) Ordinary shares of £1.00 each
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Share premium account
This represents amounts paid to the company on the issue of new shares in excess of the nominal value of the shares that have been issued.
Foreign exchange reserve
This includes all current and prior period gains and losses on the translation of subsidiaries' financial statements to GBP, through other comprehensive income.
Profit and loss account
This includes all current and prior period retained profits and losses. The profit and loss account is 100% distributable.
Certain comparative figures have been reclassified to conform with current year presentation. More specifically, adjustments were made to revenue recognised from contracts with customers and cost of sales for certain transactions to reflect the revenue recognised from private treaty vehicle sales on a net basis.
The impact is that Turnover and Cost of Sales have decreased by £19,413,043.
As the amendments do not change the reported closing financial position the directors consider that this does not impact the users' understanding of the financial statements.
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Commitments under operating leases
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At 31 December 2024 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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- 26 -
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RM EUROPEAN HOLDINGS LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
|
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Related party transactions
|
|
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During the year, the group had the following related party transactions:
Key management were remunerated elsewhere in the wider international group during the year and in the prior year.
At the year end date, the amount due to the group from companies under common control was £16,467,002 (2023 - £26,703,951) and the amount due from the group to companies under common control was £2,698,295 (2023 - £2,211,939).
The intercompany borrowings are unsecured and have no fixed date for repayment. During the year one of the companies under common control started to charge interest at 8.27% on the amount owed to them and pay interest at 8.27% on any amounts they owed. The total interest payable for the group was £206,875 (2023 - £- nil) and the total interest received was £23,073 (2023 - £nil).
During the year, the company had the following related party transactions:
At the year end date, the company was owed £97,333 (2023 - £97,333) from companies under common control.
At the year end date, the company owed £2,804,530 (2023 - £2,653,530) to a wholly owned subsidiary.
The intercompany borrowings are unsecured, non-interest bearing and have no fixed date for repayment.
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The company's ultimate controlling party at the Statement of Financial Position date was Patrick Drahi by virtue of his shareholding in Bidfair Limited, the ultimate parent entity on this date.
The immediate parent entity is RM Auctions Inc., registered in Delaware, USA.
- 27 -
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