Registration number:
for the
Year Ended 31 March 2025
Renfold Limited
Contents
|
Company Information |
|
|
Strategic Report |
|
|
Directors' Report |
|
|
Statement of Directors' Responsibilities |
|
|
Independent Auditor's Report |
|
|
Profit and Loss Account |
|
|
Balance Sheet |
|
|
Statement of Changes in Equity |
|
|
Statement of Cash Flows |
|
|
Notes to the Financial Statements |
Renfold Limited
Company Information
|
Directors |
T Pyne K Pyne J Sanders |
|
Company secretary |
L Goodison |
|
Registered office |
|
|
Auditors |
|
Renfold Limited
Strategic Report for the Year Ended 31 March 2025
The directors present their strategic report for the year ended 31 March 2025.
Principal activity
The principal activity of the company is that of agents involved in the sale of textiles, clothing, fur, footwear and leather goods.
Fair review of the business
The results for the year which are set out in the profit and loss account show turnover of £22,841,737 (2024 - £15,321,726) and an operating profit of £2,260,836 (2024 - £459,446). At 31 March 2025 the company had net assets of £2,524,024 (2024 - £1,209,122). The directors regard both the year's performance and the closing financial position as strong and represent a material improvement compared with the prior year.
Performance measure:
The business delivered revenue growth of 50% during the period, with all channels contributing positively. Ecommerce, wholesale and marketplaces each saw strong gains, supported by continued product innovation and the broad appeal of the range. This balanced growth highlights both the strength of the brand and the resilience of the company’s business model.
The directors anticipate that the growth achieved in the year will continue into the next financial period, supported by ongoing investment in product development, further strengthening of the team, and improvements in reporting and governance. The company is also exploring technology solutions, including the potential use of artificial intelligence, to enhance efficiency and support with marketing and branding initiatives. These investments will help the company maintain strong performance across its sales channels.
Key performance indicators
The directors monitor progress on the long-term strategy through the following KPIs:
• Sales Growth: The company achieved a 50% year-over-year (YoY) increase in turnover driven by growth across all three channels: wholesale, online, and marketplaces.
• EBITDA: A 354% year-on-year increase, reflecting improved trading performance, higher revenues, operational efficiencies, and careful cost management.
EBITDA (earnings before interest, taxes, depreciation and amortisation) of £2,368,671 (2024 - £522,210) is calculated as operating profit of £2,260,836 (2024 - £459,446) plus depreciation costs of £64,508 (2024 -£33,130) and amortisation costs of £43,327 (2024 - £29,634).
Year end position
The Company’s financial position improved during the year, providing resources to support further investment and scaling of operations. The year-end cash position moved from a deficit of £743,000 in 2024 to a net cash balance of £422,000 in the current year, which the directors view as a positive sign of progress. While this balance alone is not sufficient to meet all future funding needs, the Company expects to continue financing its activities through internally generated cash and existing facilities, without the requirement for additional external equity.
Events since the year end
The company is forecasting revenue growth of 32.6% for 2026, supported primarily by the direct-to-consumer (DTC) channel and continued expansion in wholesale. To support this anticipated growth, the company has increased the availability of credit within its existing finance facilities and put in place a foreign exchange forward contract line. No additional external funding is currently expected to be required.
Renfold Limited
Strategic Report for the Year Ended 31 March 2025 (continued)
Principal risks and uncertainties
The directors assess the principal risks and uncertainties facing the company in both short term and long term grouped as the macroeconomic environment and commercial risks.
Supply Chain and Manufacturing Risk
The Company’s reliance on outsourced manufacturing and global supply chains continues to present a risk. To manage this, the Company continues to broaden its supplier base across multiple countries, reducing dependence on any single partner and lowering the potential impact of disruption.
General Business Risk
The directors consider the principal risks and uncertainties facing the Company to include general market and economic conditions, consistent with those experienced by other businesses in the current environment. Key factors include ongoing inflationary pressures, the impact on consumer purchasing power, increases in supply chain costs and fluctuations in foreign exchange rates. The Company continues to address these risks through active margin management and close control of operating costs.
Credit risk
The company’s credit risk stems from its wholesale trading activities. To manage this risk, the company assesses customer creditworthiness, maintains a diversified customer base with varying risk profiles, and closely monitors debtor balances and bad debt exposure.
Liquidity risk
The main liquidity risk arises from managing working capital and meeting obligations as they come due. The company mitigates this risk by balancing cash inflows and outflows, especially during periods of high seasonality, using invoice financing and overdraft facilities, while maintaining diversified revenue streams.
Cash flow risk
The company actively manages working capital through negotiating payment terms with suppliers, using receivables financing and managing strict cost controls during periods of low cash inflows. By proactively managing Credit, Liquidity and Cashflow risk the company ensures long term stability and mitigates the risk of defaulting on its obligations.
Approved and authorised by the
|
|
Renfold Limited
Directors' Report for the Year Ended 31 March 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
Directors of the company
The directors who held office during the year were as follows:
Going concern
As part of their assessment of the company’s ability to continue as a going concern, the directors have reviewed detailed forecasts covering a period of at least twelve months from the date of approval of these financial statements. The forecasts take into account the current economic environment, including inflationary pressures and supply chain challenges.
Based on this review, the directors are satisfied that the company has adequate resources to meet its obligations as they fall due. The company has strengthened its available credit within existing finance facilities and continues to rely primarily on internally generated funds. No additional external funding is currently anticipated.
The directors therefore consider it appropriate to prepare the financial statements on a going concern basis. The forecasts have been prepared on a prudent basis, and performance to date has been consistent with expectations. The directors remain confident in the company’s financial stability and its ability to deliver sustainable growth while maintaining a responsible approach to operations.
Future developments
The company will continue to develop its core product proposition and broaden its product categories, including further progress in the swimwear and loungewear ranges.
Investment will also continue in the expansion of the team and in strengthening internal systems and processes to support operational effectiveness and international growth.
In addition, the company is assessing opportunities to utilize new technologies to improve efficiency and business practices. Work will also continue in relation to the company’s B-Corp recertification, as part of its ongoing commitment to maintaining recognized social and environmental standards.
Financial instruments
The company's financial instruments, comprise of cash and liquid resources, and various other items such as trade debtors, trade creditors etc. that arise directly from its operations. The main purpose of these financial instruments is to finance the operations of the company.
The main risks arising from the company's financial instruments are set out below:
Liquidity risk: It arises from managing working capital commitments and financial obligations as they fall due. The company regularly reviews cashflows and maintain sufficient liquidity to meet liabilities as they become due.
Interest Rate Risk: The company finances its operations through invoice financing and trade loans. Fluctuations in interest rates can increase borrowing costs for the company, leading to higher interest expenses and impacting profitability. The company mitigates this risk by closely monitoring interest rates and ensuring timely collection of receivables to buffer against extended debt through trade facilities.
Currency Risk: The company is exposed to currency risk due to a portion of its business being conducted in foreign currencies. To mitigate this risk, the company balances its purchases with similar level of revenue in USD creating a natural hedge against interest rates risk.
Further risks are disclosed within the Principal risks and uncertainties section of the Strategic Report.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Renfold Limited
Directors' Report for the Year Ended 31 March 2025 (continued)
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved and authorised by the
|
|
Renfold Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
|
• |
select suitable accounting policies and apply them consistently; |
|
• |
make judgements and accounting estimates that are reasonable and prudent; |
|
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
|
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Renfold Limited
Independent Auditor's Report to the Members of Renfold Limited
Qualified opinion
We have audited the financial statements of Renfold Limited (the 'company') for the year ended 31 March 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for qualified opinion
We were not appointed as auditor of the company until after the 31 March 2023 and thus did not observe the counting of physical stock at the end of that year. We were unable to satisfy ourselves by alternative means concerning the stock quantities of £3,519,228 held at 31 March 2023 by using other audit procedures. Consequently we were unable to determine whether there was any consequential effect on the cost of sales for the year ended 31 March 2024. Our audit opinion on the financial statements for the year ended 31 March 2024 was modified accordingly. Our opinion on the current year's financial statements is also modified because of the possible effect of this matter on the comparability of the current year's figures and the corresponding figures.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the 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 qualified 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:
Renfold Limited
Independent Auditor's Report to the Members of Renfold Limited (continued)
|
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
|
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
Except for the matter described in the basis for qualified opinion section of our report, in the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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.
Extent to which the audit was capable of detecting irregularities, including fraud
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 considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
Renfold Limited
Independent Auditor's Report to the Members of Renfold Limited (continued)
|
• |
reviewing financial statements disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
|
• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; |
|
• |
enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
|
• |
reading minutes of meetings of those charged with governance. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of this 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.
For and on behalf of
Staverton Court
Staverton
GL51 0UX
Renfold Limited
Profit and Loss Account for the Year Ended 31 March 2025
|
Note |
2025 |
2024 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Distribution costs |
( |
( |
|
|
Administrative expenses |
( |
( |
|
|
Operating profit |
2,260,836 |
459,446 |
|
|
Interest payable and similar expenses |
( |
( |
|
|
Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no other comprehensive income for the year other than the results above.
Renfold Limited
(Registration number: 07426973)
Balance Sheet as at 31 March 2025
|
Note |
2025 |
2024 |
|
|
Fixed assets |
|||
|
Intangible assets |
|
|
|
|
Tangible assets |
|
|
|
|
Investments |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
105 |
100 |
|
|
Profit and loss account |
2,523,919 |
1,209,022 |
|
|
Total equity |
2,524,024 |
1,209,122 |
Approved and authorised by the
|
|
Renfold Limited
Statement of Changes in Equity for the Year Ended 31 March 2025
|
Share capital |
Profit and loss account |
Total |
|
|
At 1 April 2024 |
|
|
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
New share capital subscribed |
|
- |
|
|
At 31 March 2025 |
|
|
|
|
Share capital |
Profit and loss account |
Total |
|
|
At 1 April 2023 |
|
|
|
|
Profit for the year |
- |
|
|
|
At 31 March 2024 |
100 |
1,209,022 |
1,209,122 |
Renfold Limited
Statement of Cash Flows for the Year Ended 31 March 2025
|
Note |
2025 |
2024 |
|
|
Cash flows from operating activities |
|||
|
Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
(Increase)/decrease in stocks |
( |
|
|
|
(Increase)/decrease in trade debtors |
( |
|
|
|
Increase/(decrease) in trade creditors |
|
( |
|
|
Cash generated from operations |
|
|
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Acquisitions of tangible assets |
( |
( |
|
|
Acquisition of intangible assets |
( |
( |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Proceeds from issue of ordinary shares, net of issue costs |
|
- |
|
|
Proceeds from bank borrowing draw downs |
|
- |
|
|
Repayment of bank borrowing |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase in cash and cash equivalents |
|
|
|
|
Cash and cash equivalents at 1 April |
( |
( |
|
|
Cash and cash equivalents at 31 March |
421,769 |
(742,662) |
|
Renfold Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
General information |
The company is a private company limited by share capital, incorporated in the United Kingdom.
The address of its registered office is:
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Consolidated financial statements not prepared
Going concern
As part of their assessment of the company’s ability to continue as a going concern, the directors have reviewed detailed forecasts covering a period of at least twelve months from the date of approval of these financial statements. The forecasts take into account the current economic environment, including inflationary pressures and supply chain challenges.
Based on this review, the directors are satisfied that the company has adequate resources to meet its obligations as they fall due. The company has strengthened its available credit within existing finance facilities and continues to rely primarily on internally generated funds. No additional external funding is currently anticipated.
The directors therefore consider it appropriate to prepare the financial statements on a going concern basis. The forecasts have been prepared on a prudent basis, and performance to date has been consistent with expectations. The directors remain confident in the company’s financial stability and its ability to deliver sustainable growth while maintaining a responsible approach to operations.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Renfold Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
2 |
Accounting policies (continued) |
Judgements
No significant judgements have been made by management in preparing these financial statements. |
Key sources of estimation uncertainty
Determining the value of the dilapidations provision included in the balance sheet requires estimation of future costs for restoring premises to their original schedule of condition. The carrying amount is £33,499 (2024 - £Nil).
No other key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Leasehold improvements |
Straight line on cost over the term of the lease |
|
Plant and machinery |
20% straight line or 25% on reducing balance |
Renfold Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
2 |
Accounting policies (continued) |
Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2019, is being amortised evenly over its estimated useful life of ten years.
Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
10% straight line |
|
Software & website development costs |
20% straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value, together with integral cash management facilities.
Trade debtors
Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
Cost comprises direct materials and, where applicable, overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Renfold Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
2 |
Accounting policies (continued) |
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Financial instruments
Classification
Recognition and measurement
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Renfold Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
2 |
Accounting policies (continued) |
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
|
Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
|
2025 |
2024 |
|
|
Sale of goods |
|
|
The analysis of the company's turnover for the year by market is as follows:
|
2025 |
2024 |
|
|
United Kingdom |
|
|
|
Europe |
|
|
|
Rest of the World |
|
|
|
|
|
Renfold Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
Operating profit |
Arrived at after charging/(crediting):
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Amortisation expense (included in administrative expenses) |
|
|
|
Foreign exchange losses/(gains) |
|
( |
|
Operating lease expense - property |
|
|
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest expense on other finance liabilities |
|
|
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Administration and support |
|
25 |
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
- |
|
335,650 |
9,960 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2025 |
2024 |
|
|
Exercised share options |
|
- |
|
Accruing benefits under money purchase pension scheme |
|
- |
Renfold Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
7 |
Directors' remuneration (continued) |
In respect of the highest paid director:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Contributions to money purchase pension schemes |
|
- |
|
Auditors' remuneration |
|
2025 |
2024 |
|
|
Audit of the financial statements |
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
( |
|
|
497,135 |
71,784 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods |
6,204 |
- |
|
Total deferred taxation |
|
|
|
Tax expense in the profit and loss account |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2025 |
2024 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Adjustments to tax charge in respect of previous periods |
|
|
|
Fixed asset timing differences |
|
|
|
Other permanent differences |
( |
- |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Movement in deferred tax not recognised |
- |
|
|
Marginal relief |
- |
( |
|
Total tax charge |
|
|
Renfold Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
9 |
Taxation (continued) |
Deferred tax
|
2025 |
Liability |
|
Fixed asset timing differences |
|
|
Short term timing differences |
( |
|
|
|
2024 |
Liability |
|
Fixed asset timing differences |
|
|
Short term timing differences |
( |
|
|
|
Intangible assets |
|
Goodwill |
Software & website development costs |
Total |
|
|
Cost or valuation |
|||
|
At 1 April 2024 |
|
|
|
|
Additions acquired separately |
- |
|
|
|
At 31 March 2025 |
|
|
|
|
Amortisation |
|||
|
At 1 April 2024 |
|
|
|
|
Amortisation charge |
|
|
|
|
At 31 March 2025 |
|
|
|
|
Carrying amount |
|||
|
At 31 March 2025 |
|
|
|
|
At 31 March 2024 |
|
|
|
Renfold Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
Tangible assets |
|
Leasehold improvements |
Plant and machinery |
Total |
|
|
Cost or valuation |
|||
|
At 1 April 2024 |
|
|
|
|
Additions |
|
|
|
|
At 31 March 2025 |
|
|
|
|
Depreciation |
|||
|
At 1 April 2024 |
|
|
|
|
Charge for the year |
|
|
|
|
At 31 March 2025 |
|
|
|
|
Carrying amount |
|||
|
At 31 March 2025 |
|
|
|
|
At 31 March 2024 |
|
|
|
|
Investments |
|
2025 |
2024 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost and carrying amount |
|
|
As at 31 March 2024 and 31 March 2025 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2025 |
2024 |
|||
|
Subsidiary undertakings |
||||
|
|
47 British Grove, London, W4 2NL, England & Wales |
|
|
|
Subsidiary undertakings
Renfold Online Limited
The principal activity of Renfold Online Limited is that of a dormant company. Its financial period end is 31 May. The profit for the financial period of Renfold Online Limited was £- and the aggregate amount of capital and
reserves at the end of the period was £100.
Renfold Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
Stocks |
|
2025 |
2024 |
|
|
Finished goods and goods for resale |
|
|
|
Debtors |
|
2025 |
2024 |
|
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments and accrued income |
|
|
|
|
|
|
Cash and cash equivalents |
|
2025 |
2024 |
|
|
Cash at bank |
|
|
|
|
|
|
|
Invoice and supplier finance facilities (note 17) |
( |
( |
|
Cash and cash equivalents |
421,769 |
(742,662) |
|
Creditors |
|
Note |
2025 |
2024 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
Other creditors |
|
|
|
|
Accruals and deferred income |
|
|
|
|
Corporation tax liability |
502,940 |
71,772 |
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
Renfold Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
Loans and borrowings |
Current loans and borrowings
|
2025 |
2024 |
|
|
Bank borrowings |
|
|
|
Other borrowings |
|
|
|
|
|
|
Non-current loans and borrowings
|
2025 |
2024 |
|
|
Bank borrowings |
|
|
Bank borrowings
A bank loan with a carrying amount at the year end of £75,000 (2024 - £125,000) is denominated in sterling with an interest rate of 3.99% per annum over the Bank of England base rate. The loan is repayable monthly with the final instalment in September 2026. The repayment terms compromise of monthly repayments of £4,167 with amounts due less than one year by instalment of £50,000 (2024 - £50,000).
A bank loan with a carrying amount at the year end of £92,178 (2024 - £348,966) is denominated in sterling with an interest rate of 3.73% per annum over the Bank of England base rate. The loan is repayable monthly with the final instalment in July 2025. The repayment terms comprise monthly repayments of £20,978 with amounts due less than one year of £92,178 (2024 - £251,736). This loan is subject to a director’s personal guarantee limited to £1.7m.
A bank loan with a carrying amount at the year end of £285,029 (2024 - £nil) is denominated in sterling with an interest rate of 3.11% per annum over the Bank of England base rate. The loan is repayable monthly with the final instalment in June 2027. The repayment terms comprise monthly repayments of £11,658 with amounts due less than one year of £120,647 (2024 - £nil).
The bank borrowings are secured by fixed and floating charges over the assets of the company and contain negative pledges which prohibits the company from creating any security interests over the property pledged as security.
Other borrowings
Other current borrowings include £662,431 (2024 - £1,380,807) in relation to invoice and supplier finance facilities. Invoice finance facilities are secured over certain trade debtor balances and are subject to negative pledges which prohibits the company from creating any security interests over the property pledged as security.
|
Provisions for liabilities |
|
Deferred tax |
Dilapidations provision |
Total |
|
|
At 1 April 2024 |
|
- |
|
|
Additional provisions |
- |
|
|
|
Increase in existing provisions |
|
- |
|
|
At 31 March 2025 |
|
|
|
|
|
|||
Renfold Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
18 |
Provisions for liabilities (continued) |
As part of the company's property leasing arrangements there is an obligation to reinstate the property to its original schedule of condition, with the costs of reinstating improvements capitalised within leasehold improvements and depreciated. This is based on management's best estimate of the likely committed cash outflow.
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
100 |
|
100 |
|
|
|
5 |
- |
- |
|
|
|
|
|
|
On 12 July 2024, the ordinary shares were subdivided from 100 shares with a nominal value of £1 each to 10,000 shares of £0.01 each.
On 18 February 2025, 527 ordinary A shares were issued with a nominal value of £0.01 each. Such shares were issued to a director of the company under an EMI share option plan, with the options granted in July 2024. No share-based payment charge has been included in the financial statements on the grounds of immateriality.
There are two classes of ordinary shares. Both the ordinary shares of £0.01 each and ordinary A shares of £0.01 each are entitled to dividends as recommended by the Board of Directors and on a return of capital liquidation are to be distributed across the holders pro rate to the shares held. The ordinary A shares of £0.01 each do not carry any entitlement to receive notice of, to attend, to speak or vote at any general meeting of the company, nor to receive or vote on, or otherwise constitute an eligible member for the purposes of proposed written resolutions of the company. The ordinary shares of £0.01 each carry full voting rights.
|
Reserves |
Called up share capital
This represents the nominal value of the issued share capital of the company.
Profit and loss account
This represents the cumulative profits or losses, net of dividends and other adjustments.
|
Obligations under leases |
Operating leases
The total of future minimum lease payments is as follows:
Renfold Limited
Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)
|
22 |
Obligations under leases (continued) |
|
2025 |
2024 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Related party transactions |
During the year, dividends of £180,000 (2024 - £nil) were declared to a director of the company. At the end of the year, the company owed a director of the company £44,816 (2024 - £432,993) in the form of a director's current account, which is interest free and has no formal repayment terms.
During the year, the company engaged a close family member of a director to provide consultancy services. The total amount accrued for these services was £80,000 (2024 - £nil). The full amount remained outstanding at the year end (2024 - £nil).
|
Analysis of changes in net debt |
|
At 1 April 2024 |
Cash flows |
At 31 March 2025 |
|
|
Cash and cash equivalents |
|||
|
Cash at bank |
638,145 |
446,055 |
1,084,200 |
|
Invoice and supplier finance facilities |
(1,380,807) |
718,376 |
(662,431) |
|
(742,662) |
1,164,431 |
421,769 |
|
|
Borrowings |
|||
|
Bank borrowings |
(473,966) |
21,759 |
(452,207) |
|
( |
|
( |
|
|
|
|||
|
Financial instruments |
Items of income, expense, gains or losses
|
2025 |
Income |
Expense |
Net gains |
Net losses |
|
Financial liabilities measured at amortised cost |
- |
154,494 |
- |
- |
|
2024 |
Income |
Expense |
Net gains |
Net losses |
|
Financial liabilities measured at amortised cost |
- |
160,356 |
- |
- |
The total interest expense for financial liabilities not measured at fair value through profit or loss is £247,210 (2024 - £251,536).
|
Control |