| RHH Franks Limited |
| Notes to the Accounts |
| for the year ended 28 February 2025 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Going concern |
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The financial statements have been prepared on a going concern basis. The directors have prepared forecasts for a period of greater than one year from the signature of the financial statements and believe that the company will be able to continue in operational existence. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Leasehold land and buildings |
6% straight line |
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Plant and machinery |
6-33% straight line |
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Motor vehicles |
25% reducing balance |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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On a monthly basis all stock is reviewed for old and slow moving stock and a provision is made to reflect those items where it is the opinon of the Directors that the net realisable value of the stock is lower than the historical cost. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight line basis. |
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Government grants |
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Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. |
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Government grants are recognised using the accrual model and the performance model. |
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Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. |
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Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. |
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Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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| 2 |
Employees |
2025 |
|
2024 |
| Number |
Number |
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Average number of persons employed by the company |
46 |
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44 |
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| 3 |
Profit before taxation |
2025 |
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2024 |
| £ |
£ |
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Profit before taxation is stated after charging: |
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Depreciation of intangible assets |
62,085 |
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103,627 |
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| 4 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery etc |
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Motor vehicles |
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Total |
| £ |
£ |
£ |
£ |
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Cost |
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At 1 March 2024 |
603,080 |
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1,690,013 |
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47,722 |
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2,340,815 |
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Additions |
- |
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4,041 |
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- |
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4,041 |
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Disposals |
- |
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(3,690) |
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(15,061) |
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(18,751) |
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At 28 February 2025 |
603,080 |
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1,690,364 |
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32,661 |
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2,326,105 |
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Depreciation |
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At 1 March 2024 |
391,434 |
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1,412,574 |
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44,186 |
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1,848,194 |
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Charge for the year |
18,668 |
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42,589 |
|
828 |
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62,085 |
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On disposals |
- |
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(2,010) |
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(14,569) |
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(16,579) |
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At 28 February 2025 |
410,102 |
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1,453,153 |
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30,445 |
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1,893,700 |
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Net book value |
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At 28 February 2025 |
192,978 |
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237,211 |
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2,216 |
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432,405 |
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At 29 February 2024 |
211,646 |
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277,439 |
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3,536 |
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492,621 |
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| 5 |
Debtors |
2025 |
|
2024 |
| £ |
£ |
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Trade debtors |
726,762 |
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774,855 |
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Other debtors |
135,694 |
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121,651 |
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862,456 |
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896,506 |
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| 6 |
Creditors: amounts falling due within one year |
2025 |
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2024 |
| £ |
£ |
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Bank loans and overdrafts |
817,482 |
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758,681 |
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Obligations under finance lease and hire purchase contracts |
43,583 |
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61,539 |
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Trade creditors |
153,537 |
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156,090 |
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Accruals and deferred income |
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|
112,079 |
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116,829 |
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Taxation and social security costs |
256,708 |
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172,211 |
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Other creditors |
102,383 |
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87,666 |
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1,485,772 |
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1,353,016 |
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Within Bank Loans and overdrafts there is a balance due to the invoice financing company amounting to £747,482 (2024: £684,150). The balance due to the invoice financing company is secured by means of an all-assets debenture. |
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Bank loans and overdrafts include £70,000 in respect of a loan under the Coronavirus Business Interruption Loan Scheme ("CBILS") (2024: £70,000). The CBILS is guaranteed by the government, bears interest at 2.42% and is repayable over 6 years. |
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The bank overdraft facility of £10,000 is secured by a fixed and floating charge over the assets of the company. The facility was not used during the year. |
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| 7 |
Creditors: amounts falling due after one year |
2025 |
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2024 |
| £ |
£ |
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Bank loans |
75,833 |
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145,833 |
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Obligations under finance lease and hire purchase contracts |
125,499 |
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23,533 |
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Stock provision |
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114,784 |
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137,938 |
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316,116 |
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307,304 |
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Bank loans and overdrafts include £75,833 in respect of a loan under the Coronavirus Business Interruption Loan Scheme ("CBILS") (2024: £145,833). The CBILS is guaranteed by the government, bears interest at 2.42% and is repayable over 6 years. |
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| 8 |
Finance lease and hire purchase contracts |
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The total future minimum lease payments under finance lease and hire purchase contracts are as follows: |
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2025 |
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2024 |
| £ |
£ |
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Not later than 1 year |
43,583 |
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61,539 |
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Later than 1 year and not later than 5 years |
125,499 |
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23,533 |
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169,082 |
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85,072 |
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| 9 |
Reserve for own shares |
2025 |
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2024 |
| £ |
£ |
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At 1 March 2024 |
175,000 |
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175,000 |
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At 28 February 2025 |
175,000 |
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175,000 |
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| 10 |
Other financial commitments |
2025 |
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2024 |
| £ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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1,478,583 |
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785,000 |
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The lease for the property 96 Gore Road has a rent deposit deed to the value of £57,281.75 which is secured by the funds in the RHH Franks Reserve Account. |
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| 11 |
Loans to directors |
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Description and conditions |
B/fwd |
Paid |
Repaid |
C/fwd |
| £ |
£ |
£ |
£ |
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Mrs A J House |
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50,000 |
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- |
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- |
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50,000 |
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50,000 |
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- |
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- |
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50,000 |
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The loan is unsecured and interest free. |
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| 12 |
Other information |
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RHH Franks Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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96 Gore Road |
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Gore Road Industrial Estate |
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New Milton |
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BH25 6SA |