Registered number: 03530918
FOR THE YEAR ENDED 31 DECEMBER 2024
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present the strategic report for the year ended 31 December 2024.
The company continues to successfully provide the services of high calibre technical personnel to the engineering industry, in particular the automotive industry in the UK, across Europe and now also the USA. The project related business is growing from within the Automotive sector and both areas of the business are supported by a strong engineering and recruitment team which has always been the bedrock to our company..
Business model
The company provides value via the ideas and expertise its personnel provide to the engineering industry in the UK as well as both Europe and the USA. The personnel are retained and motivated by competitive pay, stimulating projects and an amicable and communicative working environment.
The company also takes advantage of its worldwide presence through its membership of the RLE group which has offices around the globe in six countries within three continents. This wide reach means the company can draw on expertise from many cultures, with intergroup leads to new customers being commonplace.
The company is now able to work in electric and battery development programs due to its sister RLE FutureMotiv which is based in the same office in the American Barns. This potential increases the number of companies and projects available to business. The strategy has been names “Bolts & Volts”.
Performance
2024 has proved to be a challenging year as both profit and turnover have decreased due to a drop of confidence and investment in the automotive sector. This has hit some of the company's larger customers who have reduce their reliance on outsourcing. Sales decreased by 42% which is mainly due to the lack of new projects being available in the UK market for the company to bid and work on. This drop off has been the worst since the early 2000’s. The company has subsequently seen a decrease in gross profit by 71% as a result of the lack of available work.
The company will continue to work hard in order to increase its turnover & profit back to the levels of 2021 & 2022 in what is still a very competitive market.
Objectives and strategy
The company's overall objective is to be a sustainable business which is profitable for the next ten years and beyond.
To achieve this objective in the short term the company looks to gain new customers in the next few years.
To achieve the objective in the short to long term, the company will continue in its endeavours to expand into more project related business during the year with its existing major OEMs and in its drive to develop and secure new customers, whilst retaining its strong core recruitment activities.
To achieve this objective in the long term the company's management intends to diversify into non OEM, such as Off Highway using its transferable skills and experience from the automotive sector.
The company has a goal to work closer in collaboration with its sister company RLE FutureMotiv and gain access to new sectors and markets covering electric, hydrogen and battery technology. The “Bolts & Volts” strategy has already provided successful in both companies winning projects together which they would not have won individually. It is hoping our customers will see a one stop shop for their mechanical and electrical requirements at RLE & RLE FutureMotiv.
Business model
The company provides value via the ideas and expertise its personnel provide to the engineering industry in the UK as well as both Europe and the USA. The personnel are retained and motivated by competitive pay, stimulating projects and an amicable and communicative working environment.
The company also takes advantage of its worldwide presence through its membership of the RLE group which has offices around the globe in six countries within three continents. This wide reach means the company can draw on expertise from many cultures, with intergroup leads to new customers being commonplace.
The company is now able to work in electric and battery development programs due to its sister RLE FutureMotiv which is based in the same office in the American Barns. This potential increases the number of companies and projects available to business. The strategy has been names “Bolts & Volts”.
Performance
2024 has proved to be a challenging year as both profit and turnover have decreased due to a drop of confidence and investment in the automotive sector. This has hit some of the company's larger customers who have reduce their reliance on outsourcing. Sales decreased by 42% which is mainly due to the lack of new projects being available in the UK market for the company to bid and work on. This drop off has been the worst since the early 2000’s. The company has subsequently seen a decrease in gross profit by 71% as a result of the lack of available work.
The company will continue to work hard in order to increase its turnover & profit back to the levels of 2021 & 2022 in what is still a very competitive market.
Objectives and strategy
The company's overall objective is to be a sustainable business which is profitable for the next ten years and beyond.
To achieve this objective in the short term the company looks to gain new customers in the next few years.
To achieve the objective in the short to long term, the company will continue in its endeavours to expand into more project related business during the year with its existing major OEMs and in its drive to develop and secure new customers, whilst retaining its strong core recruitment activities.
To achieve this objective in the long term the company's management intends to diversify into non OEM, such as Off Highway using its transferable skills and experience from the automotive sector.
The company has a goal to work closer in collaboration with its sister company RLE FutureMotiv and gain access to new sectors and markets covering electric, hydrogen and battery technology. The “Bolts & Volts” strategy has already provided successful in both companies winning projects together which they would not have won individually. It is hoping our customers will see a one stop shop for their mechanical and electrical requirements at RLE & RLE FutureMotiv.
Page 1
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The management of the business and the nature of the company's strategy are subject to a number of risks. The directors have set out below the principal business and financial risks facing the business. The directors are of the opinion that a thorough risk management process is adopted which involves the formal review of all the risks identified below. Processes are in place to monitor and where possible mitigate such risks.
Economic climate
In the current global economic climate there is always the risk that the company's major customers may decide to postpone programs which would have an effect on the business in 2024 and beyond. This risk is mitigated by working closely with customers on the timing and delivery of products.
Competition
The markets in which the company operates are highly competitive. Policies of constant price monitoring and on-going research are in place to mitigate such risks.
Skills shortage
There is the risk that there is not enough skilled engineering personnel available in the UK to undertake projects. To mitigate this risk the company recruits not only from the UK, but also from other countries in Europe, it also arranges the secondment of personnel from within the RLE global group of companies.
Financial risk
The company uses various financial instruments. These include loans, cash and various items such as trade debtors and trade creditors that arise directly from its operations.
The main risks arising from the company's financial instruments are credit risk and liquidity risk, with currency and interest rate risk being deemed immaterial to the company overall.
Credit risk
The company's principal financial assets are cash and trade debtors.
The credit risk associated with the cash is limited as the counterparties have high credit ratings assigned by international credit-rating agencies.
The principal credit risk therefore arises from the company's trade debtors. In order to manage credit risk the directors set credit limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs to invest cash assets safely and profitably. The company policy throughout the year has been to achieve this objective through the day to day management of business decision making, rather than through setting maximum liquidity ratios.
Economic climate
In the current global economic climate there is always the risk that the company's major customers may decide to postpone programs which would have an effect on the business in 2024 and beyond. This risk is mitigated by working closely with customers on the timing and delivery of products.
Competition
The markets in which the company operates are highly competitive. Policies of constant price monitoring and on-going research are in place to mitigate such risks.
Skills shortage
There is the risk that there is not enough skilled engineering personnel available in the UK to undertake projects. To mitigate this risk the company recruits not only from the UK, but also from other countries in Europe, it also arranges the secondment of personnel from within the RLE global group of companies.
Financial risk
The company uses various financial instruments. These include loans, cash and various items such as trade debtors and trade creditors that arise directly from its operations.
The main risks arising from the company's financial instruments are credit risk and liquidity risk, with currency and interest rate risk being deemed immaterial to the company overall.
Credit risk
The company's principal financial assets are cash and trade debtors.
The credit risk associated with the cash is limited as the counterparties have high credit ratings assigned by international credit-rating agencies.
The principal credit risk therefore arises from the company's trade debtors. In order to manage credit risk the directors set credit limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.
Liquidity risk
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs to invest cash assets safely and profitably. The company policy throughout the year has been to achieve this objective through the day to day management of business decision making, rather than through setting maximum liquidity ratios.
Page 2
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors consider the following to be key performance indicators of the business:-
2024 2023
£ £
Turnover 7,829,086 13,534,880 Gross profit 752,734 2,601,563
Profit/ (loss) on ordinary activities before taxation (3,839,252) 361,737
Profit/ (loss) on ordinary activuties before interco write offs and taxation (1,241,330) 361,737
2024 2023
£ £
Turnover 7,829,086 13,534,880 Gross profit 752,734 2,601,563
Profit/ (loss) on ordinary activities before taxation (3,839,252) 361,737
Profit/ (loss) on ordinary activuties before interco write offs and taxation (1,241,330) 361,737
In addition to the above the company has developed a set of KPIs that have been determined by management to represent those indicators that most importantly reflect the effectiveness of initiatives and action plans identified as critical to the company achieving its objectives. The company measures the KPIs against budgeted values as well as monitoring the trends for each indicator. The KPIs are measured monthly by management.
The board has a suite of KPIs both financial and non-financial, to run the business depending on the market and business model. The principal KPIs used to measure the business as a whole are revenue and profit. These metrics are visible in the financial statements and are also detailed above.
The board has a suite of KPIs both financial and non-financial, to run the business depending on the market and business model. The principal KPIs used to measure the business as a whole are revenue and profit. These metrics are visible in the financial statements and are also detailed above.
This report was approved by the board and signed on its behalf.
Page 3
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.
The loss for the year, after taxation, amounted to £3,834,687 (2023 - profit £401,767).
The results for the year are set out on page 10.
The financial statements have been prepared on the going concern basis, but there is a material uncertainty which may cast significant doubt on the Company’s ability to continue as a going concern.
The Company is facing liquidity challenges which has led to concerns about its ability to meet its financial
obligations as they fall due. Management has assessed the Company’s ability to continue as a going concern
for the next 12 months and believes that the Company will be able to continue operating if external funding is
received as planned. More detail regarding the plans to mitigate the going concern risk can be found in note 2.2 of the financial statements.
The Company is facing liquidity challenges which has led to concerns about its ability to meet its financial
obligations as they fall due. Management has assessed the Company’s ability to continue as a going concern
for the next 12 months and believes that the Company will be able to continue operating if external funding is
received as planned. More detail regarding the plans to mitigate the going concern risk can be found in note 2.2 of the financial statements.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors who served during the year were:
The disclosure of principal business and financial risks affecting the company is given in the Strategic Report.
The auditors, Venthams, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Page 5
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RLE INTERNATIONAL PRODUCT DEVELOPMENT LIMITED
We have audited the financial statements of RLE International Product Development Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, the Analysis of Net Debt, the Balance Sheet, the 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).
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 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.
We draw attention to note 2.2 in the financial statements, which indicates that company is facing liquidity issues due to a decline in sales and a result of adverse economic conditions in the automotive industry, thus leading to a concern over the company's ability to meet its financial obligations as they fall due. As stated in note 2.2, these events or conditions, along with the other matters as set forth in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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. Our evaluation of the directors' assessment of the company's ability to continue to adopt the going concern basis of accounting included review of post year end bank statements, post year end management account information as well as evaluating the company’s plans to address liquidity issues, including restructuring arrangements and costcutting measures.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RLE INTERNATIONAL PRODUCT DEVELOPMENT LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the 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.
In the light of the 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 or the Directors' Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RLE INTERNATIONAL PRODUCT DEVELOPMENT LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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:
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Employment Law, Tax and Pensions legislation, and distributable profits legislation.
- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include employment law, fire safety, health and safety legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit proceedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RLE INTERNATIONAL PRODUCT DEVELOPMENT LIMITED (CONTINUED)
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
Millhouse
32 - 38 East Street
Essex
SS4 1DB
Date:
Page 9
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 10
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 12
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
RLE International Product Development Limited is a private company limited by shares incorporated in England and Wales. The registered office is Insight House Riverside Business Park, Mountfitchet, Stansted, Essex, CM24 8PL.
The principal activity of the company continued to be that of the delivery of engineering design projects and the provision of high quality people placement services.
The principal activity of the company continued to be that of the delivery of engineering design projects and the provision of high quality people placement services.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The company is facing liquidity challenges due to a significant decline in sales and adverse economic conditions in the industry, which has led to concerns about its ability to meet its financial obligations as they fall due. The directors made the decision on 2 May 2025 that the company be entered into a Company Voluntary Arrangement (CVA). The directors believe that the company can be viable but cannot pay all its debts as they fall due. The terms of the CVA agreement is that the company will pay creditors £1,290,000 over 5 years.
The company also has net liabilities, however the restructuring of the group will mean that support can be provided where necessary.
Management's Assessment of the Going Concern Assumption
Management has assessed the company’s ability to continue as a going concern for the next 12 months and, based on cash flow projections and expected funding from the sale of shareholding in one of the global subsidiaries as well as restructuring the parent company and subsidiaries in Germany, believes that the company will be able to continue operating. However, if the funding is not received as planned, there could be a material uncertainty regarding the company’s ability to meet its obligations.
Plans or Actions to Mitigate the Going Concern Risk
The plan / strategy to mitigate the going concern risk is the sale of shareholding in one of the global subsidiaries as well as restructuring the parent company in Germany.
Time Horizon for the Going Concern Assessment
Management’s assessment of the company’s ability to continue as a going concern was based on a period of 12 months from the date of approval of the financial statements, with a key assumption being the successful completion of negotiations for additional funding during the first quarter of 2026.
Impact of the Going Concern Uncertainty on the Financial Statements
The financial statements have been prepared on the going concern basis, but there is a material uncertainty, which may cast significant doubt on the company’s ability to continue as a going concern. The impact on the carrying values of assets and liabilities has been considered, and no adjustments have been made at this stage.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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:
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 profit or loss.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's Balance Sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The key source of estimation uncertainty for the company is that of contract accounting resulting in deferred income. Costs per project are analysed in detail each month and cumulative comparisons made against the stage of completion and agreed billing schedules.
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 22
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company has taxable losses carried forward of £1,219,759, which can be relieved against future profits.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Page 26
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Share premium account
Capital redemption reserve
Profit and loss account
In 2017 the lease of the premises at No 1 Endeavour Drive, Festival Business Park, Basildon, Essex, SS14 3WB was renewed for a 10 year period to April 2026.
During the company's previous lease they made agreed alterations to the building. The company may be required to restore the building to its original condition on departure from the premises. The amount of these dilapidations are £1.
In 2017 the company, along with the other group members, entered into an agreement as guarantors of the ultimate parent company's banking liabilities with Commerzbank Aktiengesellschaft, London Branch. The amount of the guarantee is £1.
During the company's previous lease they made agreed alterations to the building. The company may be required to restore the building to its original condition on departure from the premises. The amount of these dilapidations are £1.
In 2017 the company, along with the other group members, entered into an agreement as guarantors of the ultimate parent company's banking liabilities with Commerzbank Aktiengesellschaft, London Branch. The amount of the guarantee is £1.
The company operates a defined contributions pension scheme. The assets of the scheme are held seperately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £428,006 (2023: £327,147). Contributions totalling £22,854 (2023: £33,471) were payable to the fund at the balance sheet date and are included in creditors.
Page 27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company is wholly owned subsidiary of RLE Global Operations Limited.
RLE Global Operations Limited was a wholly owned subsidiary of RLE International GmbH which is the ultimate parent company. RLE International GmbH is a company registered in Germany. Copies of the accounts of RLE International GmbH may be obtained from Brodhausen 1, 51491, Overath, Cologne, Germany, or at the registered office.
There is deemed to be no ultimate controlling party in the current and preceding year due to R Laufenberg and H-J Laufenberg, and members of their families, each holding an equal shareholding in RLE International GmbH.
On 19 December 2025 RLE International GmbH was acquired by SACHA GmbH, a company registered in Germany. Copies of the SACHA GmbH accounts can be obtained from Hery Park 3000, 86368 Gersthofen.
The ultimate controlling party from 19 December 2025 is Pawan Kumar Singh, by virture of their 100% shareholding in SACHA GmbH.
RLE Global Operations Limited was a wholly owned subsidiary of RLE International GmbH which is the ultimate parent company. RLE International GmbH is a company registered in Germany. Copies of the accounts of RLE International GmbH may be obtained from Brodhausen 1, 51491, Overath, Cologne, Germany, or at the registered office.
There is deemed to be no ultimate controlling party in the current and preceding year due to R Laufenberg and H-J Laufenberg, and members of their families, each holding an equal shareholding in RLE International GmbH.
On 19 December 2025 RLE International GmbH was acquired by SACHA GmbH, a company registered in Germany. Copies of the SACHA GmbH accounts can be obtained from Hery Park 3000, 86368 Gersthofen.
The ultimate controlling party from 19 December 2025 is Pawan Kumar Singh, by virture of their 100% shareholding in SACHA GmbH.
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