Rs Machinery Group Ltd

	Page
Strategic Report	1—2
Directors' Report	3—4
Independent Auditor's Report	5—8
Profit and Loss Account	9
Balance Sheet	10
Statement of Changes in Equity	11
Statement of Cash Flows	12
Notes to the Statement of Cash Flows	13
Notes to the Financial Statements	14—22

The directors present their strategic report for the year ended 31 December 2024.

Principal Activity

The Group generates revenue through the:

Sale of specialist machinery
Sale of equipment, parts and consumables
Servicing, maintenance and after-sales support
Project-based work and equipment refurbishment

Value is created through:

Strong customer relationships in recurring industries
Technical expertise and responsive after-sales support
Effective sourcing and stock managemen
A skilled workforce and investment in training

The Group operates from its base in Aberdeen, servicing customers throughout the UK and Ireland.

Review of the Business

The Group’s principal activity continues to be the hire, sale and servicing of machinery and surface preparation equipment used across industrial, construction and engineering sectors. Demand remained stable during the year, supported by recurring customer activity and delivery of existing pipeline.

Turnover increased to £12.86m (2023: £12.35m), reflecting consistent sales performance and improving customer activity. Gross profit increased to £4.06m (2023: £3.88m), with margins benefiting from effective stock management and pricing discipline despite inflationary cost pressures.

Administrative expenses increased to £3.48m (2023: £3.21m), driven by higher staff costs, increased investment in marketing, training and operational capacity, and general cost inflation. Operating profit was £600k (2023: £746k), and the Group recorded a profit after tax of £495k (2023: £1.00m).

The Group maintained a strong asset base, with tangible fixed assets increasing to £1.05m (2023: £885K) following ongoing investment in the hire fleet, equipment and vehicles. Net assets increased to £3.16m (2023: £3.00m), reflecting retained earnings and profitable trading.

Stock levels decreased to £4.58m (2023: £4.65m) as efforts to improve working capital efficiency continued. Cash at bank increased to £494k (2023: £189k), supported by strong operating cash generation of £1.60m.

Principal Risks and Uncertainties

The Group faces a number of operational and financial risks. The main risks and mitigation measures are set out below.

Market and Economic Conditions

Demand for machinery and hire services is affected by capital expenditure trends in the industrial and construction sectors.

Mitigation: Diversified customer base, stock management, cost structure.

Supply Chain & Stock Availability

Lead times and availability of machinery and components can impact delivery schedules.

Mitigation: Multiple suppliers, forward ordering, maintaining appropriate stock levels.

Credit Risk

Customer default risk remains inherent given the nature of the sectors served.

Mitigation: Credit checks, proactive debt collection, staged payments for large orders.

Operational Risk

Breakdowns, fleet utilisation or unexpected downtime can affect service delivery.

Mitigation: Ongoing investment in fleet, planned maintenance and training.

Cybersecurity & IT Systems

Reliance on IT systems exposes the Group to cybersecurity threats.

Mitigation: Up-to-date antivirus protection, data backups, access controls in line with ISO.

Health & Safety

...CONTINUED

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Rs Machinery Group Ltd

Strategic Report (continued)

For The Year Ended 31 December 2024

Principal Risks and Uncertainties - continued

Operations involve machinery, vehicles and workshop activity.

Mitigation: Strong safety policies, training programmes, regular inspections.

Future Developments

The Group intends to continue improving workshop and service capacity and investing in people and training. Opportunities also exist to expand sales channels, improve digital processes and enhance customer service capability.

During 2025, the Directors are reviewing the structure of the Group with the intention of separating the operations of RS Blastech from RS Machinery into two distinct trading entities, while both will remain wholly owned within RS Machinery Holdings Ltd. This internal reorganisation is expected to improve operational focus, provide clearer financial reporting and support the next phase of strategic growth.

The Directors remain confident in the Group’s long-term prospects, supported by a strong asset base, resilient demand and continued investment in operational capability.

Key Performance Indicators (KPIs)

Management monitors a range of KPIs to assess performance and support decision-making. The following KPIs are relevant to the Group’s operations:

Financial KPIs

Turnover (£) – £12.86m in 2024 (↑4.1% vs 2023).
Gross Profit Margin (%) – 31.6% (2023: 31.4%).
Operating Profit Margin (%) – 4.7% (2023: 6.0%).
Cash Generated from Operations (£) – £1.60m (2023: £(3.77m)).
Stock Turnover – monitored monthly to optimise working capital.
Debtor Days – measured to maintain credit discipline and cashflow.

Non-Financial KPIs

On-Time Delivery Performance (%) – core measure of service efficiency.
Workshop/Service Turnaround Time – key customer service metric.
Health & Safety Metrics – incidents, near-misses and compliance checks.

Section 172(1) Statement

In accordance with Section 172 of the Companies Act 2006, the Directors have acted in the way they consider, in good faith, would promote the success of the Group for the benefit of its members as a whole. In doing so, the Directors have had regard to: the long-term sustainability and future viability of the business; the interests, wellbeing and development of employees; the importance of maintaining strong and collaborative relationships with suppliers and customers; the impact of the Group’s operations on the community and the environment; the need to uphold high standards of business conduct and regulatory compliance; and the requirement to act fairly between all shareholders.

Examples of how the Directors have applied these principles during the year include continued investment in staff training and development, enhancements to facilities and operational equipment, reinforcement of supplier and customer engagement practices, and responsible financial management to support sustainable long-term growth.

On behalf of the board

Mr Stefan Ross

Director

23/12/2025

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Rs Machinery Group Ltd

Company No. SC435679

Directors' Report For The Year Ended 31 December 2024

Directors' Report

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors

The directors who held office during the year were as follows:

Mr Stefan Ross

Mr Matthew Ross

Mr Glenn Ross

Mr John Ross

Matters covered in the Strategic Report

Disclosures required under s416(4) of the Companies Act 2006 are commented upon in the Strategic Report as the directors consider them to be of strategic importance to the business.

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, the Directors' 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, comprising FRS102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', 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 the financial statements the directors are required to:

select suitable accounting policies and then apply them consistently;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
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.

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 may differ from legislation in other jurisdictions.

Statement of Disclosure of Information to Auditors

In the case of each director in office at the date the Directors' Report is approved:

so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and
they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

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Rs Machinery Group Ltd

Directors' Report (continued)

For The Year Ended 31 December 2024

Independent Auditors

The auditors, Mortimer Childe Services Ltd, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.

On behalf of the board

Mr Stefan Ross

Director

23/12/2025

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Independent Auditor's Report

to the Members of

Rs Machinery Group Ltd

Independent Auditor's Report

Opinion

We have audited the financial statements of RS Machinery Group Ltd (the 'company') for the year ended 31 December 2024, 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 December 2024 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 Opinion

We were not appointed as auditor of the company until after 31 December 2024 and thus did not observe the counting of physical inventories at the end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2024, which are included in the balance sheet at £4,584,647, by using other audit procedures. Consequently, we were unable to determine whether any adjustment to this amount was necessary. The evidence obtained does not suggest any material misstatement but is not sufficient to be able to form an opinion.

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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Key Audit Matters

Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our 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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £4,584,647, held at 31 December 2024. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, it may be materially misstated for the same reason.

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Independent Auditor's Report (continued)

to the Members of

Rs Machinery Group Ltd

Opinions on Other Matters 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:

the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's 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 Director's Report.

Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and we were unable to determine whether adequate accounting records have been kept.
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:
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 director's remuneration specified by law are not made.

Responsibilities of Directors

As explained more fully in the Statement of Director's Responsibilities (set out on page 4), the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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Independent Auditor's Report (continued)

to the Members of

Rs Machinery Group Ltd

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The engagement partner ensured that the audit team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.

We identified the laws and regulations applicable to the Company through discussions with Directors and other management and from our commercial knowledge and experience of this business sector.

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence.

We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.

Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls we:

Performed analytical procedures to identify any unusual or unexpected relationships.

Assessed whether judgments and assumptions made in determining accounting estimates included in the Accounts were indicative of potential bias.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiring of the Directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error, as they may involve deliberate concealment or collusion.

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.

Other matters

The accounts for the year ended 31 December 2024 are the first accounts of the Company to be audited and therefore the comparatives presented in these financial statements are unaudited.

Use Of Our 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.

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Independent Auditor's Report (continued)

to the Members of

Rs Machinery Group Ltd

Dean Jarman FCCA (Senior Statutory Auditor) (Senior Statutory Auditor)

for and on behalf of Mortimer Childe Services Ltd , Statutory Auditor

23/12/2025

Mortimer Childe Services Ltd

53 High Street

Cleobury Mortimer

Kidderminster

DY14 8DQ

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Rs Machinery Group Ltd

Profit and Loss Account

For The Year Ended 31 December 2024

Profit and Loss Account

		2024	2023
	Notes	£	£
TURNOVER	3	12,868,013	12,354,843
Cost of sales		(8,805,038 )	(8,470,644 )

GROSS PROFIT		4,062,975	3,884,199

Administrative expenses		(3,482,356 )	(3,194,809 )
Other operating income		19,862	57,163

OPERATING PROFIT	5	600,481	746,553
Profit on disposal of fixed assets		5,156	32,729
Interest payable and similar charges	10	(140,342 )	(101,081 )

PROFIT BEFORE TAXATION		465,295	678,201
Tax on Profit	11	30,199	-

PROFIT AFTER TAXATION BEING PROFIT FOR THE FINANCIAL YEAR		495,494	678,201

The notes on pages 13 to 22 form part of these financial statements.

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Rs Machinery Group Ltd

Balance Sheet

As At 31 December 2024

Balance Sheet

Registered number: SC435679

		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	12		1		1
Tangible Assets	13		1,051,914		884,912

			1,051,915		884,913
CURRENT ASSETS
Stocks	14	4,584,647		4,645,103
Debtors	15	2,389,733		3,694,855
Cash at bank and in hand		493,655		189,017

		7,468,035		8,528,975
Creditors: Amounts Falling Due Within One Year	16	(4,549,887 )		(5,351,633 )

NET CURRENT ASSETS (LIABILITIES)			2,918,148		3,177,342

TOTAL ASSETS LESS CURRENT LIABILITIES			3,970,063		4,062,255

Creditors: Amounts Falling Due After More Than One Year	17		(411,620 )		(648,262 )

PROVISIONS FOR LIABILITIES
Provisions For Charges	21		(234,900 )		(205,215 )
Deferred Taxation	20		(159,207 )		(205,088 )

NET ASSETS			3,164,336		3,003,690

CAPITAL AND RESERVES
Called up share capital	22		100		100
Profit and Loss Account			3,164,236		3,003,590

SHAREHOLDERS' FUNDS			3,164,336		3,003,690

On behalf of the board

Mr Stefan Ross

Director

23/12/2025

The notes on pages 13 to 22 form part of these financial statements.

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Rs Machinery Group Ltd

Statement of Changes in Equity

For The Year Ended 31 December 2024

Statement of Changes in Equity

	Share Capital	Profit and Loss Account	Total
	£	£	£
As at 1 January 2023	100	2,660,237	2,660,337
Profit for the year and total comprehensive income	-	678,201	678,201

Dividends paid	-	(334,848)	(334,848)

As at 31 December 2023 and 1 January 2024	100	3,003,590	3,003,690


Profit for the year and total comprehensive income	-	495,494	495,494

Dividends paid	-	(334,848)	(334,848)

As at 31 December 2024	100	3,164,236	3,164,336

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Rs Machinery Group Ltd

Statement of Cash Flows

For The Year Ended 31 December 2024

Statement of Cash Flows

		2024	2023
	Notes	£	£
Cash flows from operating activities
Net cash generated from operations	1	1,472,088	382,754
Interest paid		(140,342 )	(101,081 )
Tax refunded		2,337	10,814

Net cash generated from operating activities		1,334,083	292,487

Cash flows from investing activities
Purchase of tangible assets		(480,270 )	(270,539 )
Proceeds from disposal of tangible assets		45,241	117,987

Net cash used in investing activities		(435,029 )	(152,552 )

Cash flows from financing activities
Equity dividends paid		(334,848 )	(334,848 )
Repayment of bank borrowings		(132,157 )	(121,914 )
Proceeds from new other loans		-	7,583
Repayment of other loans		(77,501)	-
Repayment of finance leases		(7,904 )	(138,340 )
Amount introduced by directors		-	495,182
Amount withdrawn by directors		(94,835)	-

Net cash used in financing activities		(647,245 )	(92,337 )



Increase in cash and cash equivalents		251,809	47,598
Cash and cash equivalents at beginning of year	2	52,503	(36,854 )
Foreign exchange gains on cash and cash equivalents		40,101	41,759

Cash and cash equivalents at end of year	2	344,413	52,503

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Rs Machinery Group Ltd

Notes to the Statement of Cash Flows

For The Year Ended 31 December 2024

Notes to the Statement of Cash Flows

1. Reconciliation of profit for the financial year to cash generated from operations

	2024	2023
	£	£
Profit for the financial year	495,494	678,201
Adjustments for:
Tax on profit	(30,199 )	-
Interest expense	140,342	101,081
Depreciation of tangible assets	273,183	179,379
Profit on disposal of tangible assets	(5,156)	(32,729)
Foreign exchange gains	(40,101)	(41,759)
Movements in working capital:
Decrease/(increase) in stocks	60,456	(1,395,129 )
Decrease/(increase) in trade and other debtors	1,317,653	(13,092 )
(Decrease)/increase in trade and other creditors	(739,584 )	906,802

Net cash generated from operations	1,472,088	382,754

2. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

	2024	2023
	£	£
Cash at bank and in hand	493,655	189,017
Overdraft facilities repayable on demand	(149,242 )	(136,514 )

Cash and cash equivalents as stated in the Statement of Cash Flows	344,413	52,503

3. Analysis of changes in net debt

	As at 1 January 2024	Cash flows	As at 31 December 2024
	£	£	£
Cash at bank and in hand	189,017	304,638	493,655
Overdraft facilities repayable on demand	(136,514)	(12,728)	(149,242)

Cash and cash equivalents	52,503	291,910	344,413
Finance leases	(643,542)	7,904	(635,638)
Debts falling due within one year	(825,760 )	72,845	(752,915 )
Debts falling due after more than one year	(285,492)	136,813	(148,679)

	(1,702,291)	509,472	(1,192,819)

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Rs Machinery Group Ltd

Notes to the Financial Statements

For The Year Ended 31 December 2024

Notes to the Financial Statements

1. General Information

Rs Machinery Group Ltd is a private company, limited by shares, incorporated in England & Wales, registered number SC435679 . The registered office is Denmore Place Denmore Industrial Estate, Bridge Of Don, Aberdeen, Scotland, AB23 8JS.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.

2.2. Turnover

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 is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

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. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.3. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the separable net assets. It is amortised to the profit and loss account over its estimated economic life of .... years.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold	10% Straight Line
Plant & Machinery	20% Reducing Balance
Motor Vehicles	25% Reducing Balance
Fixtures & Fittings	33% Straight Line
Computer Equipment	33% Straight Line

2.5. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

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Rs Machinery Group Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.6. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

2.7. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

2.8. Foreign Currencies

Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction. Exchange differences are taken into account in arriving at the operating profit.

2.9. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable timing differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible timing differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. The measurement of deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax are recognised in profit or loss for the year, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case current and deferred tax are recognised in other comprehensive income or directly in equity respectively.

2.10.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.

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 subsequently measured at amortised cost using the effective interest method.

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Rs Machinery Group Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.11.

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.

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.

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.

Key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the actual results. In the opinion of the directors there are no estimates nor assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Tangible fixed assets are depreciated over their useful lives, taking into account residual values, where appropriate. In the opinion of the directors the depreciation rates used are appropriate as significant profits/losses do not occur on any disposals made.

Trade debtors consist of amounts arising from customers. An allowance for doubtful debts is maintained for estimated losses resulting from the inability of the Company's customers to make required payments. The allowance is based on the Company's regular assessment of the credit worthiness and financial conditions of customers. Tangible fixed assets Tangible fixed assets are depreciated over their useful lives, taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors.

Stock - certain factors could affect the net realisable value of the Company's stocks, including customer demand and market conditions. The Company considers usage, anticipated sales price, effect of new product introductions, product obsolescence and other factors when evaluation the value.

Warranty provisions – an allowance for warranty provisions is made for products sold with a warranty attached to them. The company makes an estimate of the likely costs associated with warranty claims based on history and experience of the product.

3. Turnover

Analysis of turnover by geographical market is as follows:

	2024	2023
	£	£
United Kingdom	10,782,356	10,359,341
Europe	2,085,657	1,995,502

	12,868,013	12,354,843

4. Other Operating Income

	2024	2023
	£	£
Other operating income	19,862	57,163

	19,862	57,163

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Rs Machinery Group Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

5. Operating Profit

The operating profit is stated after charging:

	2024	2023
	£	£
Bad debts	38,085	10,346
Research and Development Costs	15,456	12,251
Depreciation of tangible fixed assets	273,183	179,379

6. Auditor's Remuneration

Remuneration received by the company's auditors and their associates during the year was as follows:

	2024	2023
	£	£
Audit Services
Audit of the company's financial statements	13,000	-

7. Staff Costs

Staff costs, including directors' remuneration, were as follows:

	2024	2023
	£	£
Wages and salaries	2,326,652	2,019,801
Social security costs	138,835	113,682
Other pension costs	11,476	9,597

	2,476,963	2,143,080

8. Average Number of Employees

Average number of employees, including directors, during the year was as follows:

	2024		2023

	43		43

9. Directors' remuneration

	2024	2023
	£	£
Emoluments	79,487	74,742

10. Interest Payable and Similar Charges

	2024	2023
	£	£
Bank loans and overdrafts	88,266	-
Finance charges payable under finance leases and hire purchase contracts	51,929	43,112
Late payment tax charges	147	57,969

	140,342	101,081

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Rs Machinery Group Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

11. Tax on Profit

	Tax Rate		2024	2023
The tax credit on the profit for the year was as follows:
	2024	2023	£	£
Current tax
UK Corporation Tax	25.0%	25.0%	97,425	-
Prior period adjustment			(81,743 )	-

			15,682	-
Deferred Tax
Deferred taxation			(45,881 )	-


Total tax charge for the period			(30,199 )	-


The actual credit for the year can be reconciled to the expected charge for the year based on the profit and the standard rate of corporation tax as follows:
			2024	2023
			£	£
Profit before tax			465,295	678,201

Tax on profit at 25% (UK standard rate)			116,322	165,550
Goodwill/depreciation not allowed for tax			62,622	56,171
Capital allowances			(81,519 )	(22,386 )
Short term timing differences			(45,881 )	(8,033 )
Prior period adjustment			(81,743 )	-

Total tax charge for the period			(30,199)	191,302

12. Intangible Assets

	Goodwill
	£
Cost
As at 1 January 2024	1

As at 31 December 2024	1

Net Book Value
As at 31 December 2024	1

As at 1 January 2024	1

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Rs Machinery Group Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

13. Tangible Assets

	Land & Property
	Leasehold	Plant & Machinery	Motor Vehicles	Fixtures & Fittings
	£	£	£	£
Cost
As at 1 January 2024	26,138	212,143	961,929	112,385
Additions	2,689	133,226	268,096	-
Disposals	-	(22,938 )	(62,011 )	-

As at 31 December 2024	28,827	322,431	1,168,014	112,385

Depreciation
As at 1 January 2024	3,952	136,250	310,057	9,685
Provided during the period	2,788	8,391	212,814	1,507
Disposals	-	(10,440 )	(34,424 )	-

As at 31 December 2024	6,740	134,201	488,447	11,192

Net Book Value
As at 31 December 2024	22,087	188,230	679,567	101,193

As at 1 January 2024	22,186	75,893	651,872	102,700


	Computer Equipment	Total
	£	£
Cost
As at 1 January 2024	132,261	1,444,856
Additions	76,259	480,270
Disposals	-	(84,949 )

As at 31 December 2024	208,520	1,840,177

Depreciation
As at 1 January 2024	100,000	559,944
Provided during the period	47,683	273,183
Disposals	-	(44,864 )

As at 31 December 2024	147,683	788,263

Net Book Value
As at 31 December 2024	60,837	1,051,914

As at 1 January 2024	32,261	884,912

14. Stocks

	2024	2023
	£	£
Stock	4,584,647	4,645,103

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Rs Machinery Group Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

15. Debtors

	2024	2023
	£	£
Due within one year
Trade debtors	1,787,843	2,857,641
Amounts owed by group undertakings	490,820	487,055
Other debtors	111,070	350,159

	2,389,733	3,694,855

An impairment loss of £113,244 (2023: £7,586) was recognised against trade debtors.

The amounts owed to the company from group undertakings are unsecured, non-interest bearing and are repayable on demand.

16. Creditors: Amounts Falling Due Within One Year

	2024	2023
	£	£
Net obligations under finance lease and hire purchase contracts	372,697	303,646
Trade creditors	1,199,314	2,790,552
Bank loans and overdrafts	216,312	203,584
Other loans	685,845	758,690
Other creditors	436,229	663,208
Corporation tax	197,505	179,486
Taxation and social security	735,815	295,851
Accruals and deferred income	706,170	156,616

	4,549,887	5,351,633

17. Creditors: Amounts Falling Due After More Than One Year

	2024	2023
	£	£
Net obligations under finance lease and hire purchase contracts	262,941	339,896
Bank loans	136,651	268,808
Other loans	12,028	16,684
Accruals and deferred income	-	22,874

	411,620	648,262

18. Loans

The covid loans are unsecured as backed by the government. The trade loan facility is back by a general pledge against stock, documents and all cash.

An analysis of the maturity of loans is given below:

	2024	2023
	£	£
Amounts falling due within one year or on demand:
Bank loans	67,070	67,070
Other loans	685,845	758,690

	752,915	825,760

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Rs Machinery Group Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

	2024	2023
	£	£
Amounts falling due between one and five years:
Bank loans	136,651	268,808
Other loans	12,028	16,684

	148,679	285,492

19. Obligations Under Finance Leases and Hire Purchase

	2024	2023
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	372,697	303,646
Later than one year and not later than five years	262,941	339,896

	635,638	643,542

	635,638	643,542

Liabilities relating to finance lease agreements are secured against the asset to which the finance relates.

20. Deferred Taxation

The provision for deferred tax is made up as follows:

	2024	2023
	£	£
Other timing differences	159,207	205,088

21. Provisions for Liabilities


	Deferred Tax	Other Provisions	Total
	£	£	£
As at 1 January 2024	205,088	205,215	410,303
Additions	-	29,685	29,685
Reversals	(45,881 )	-	(45,881)

Balance at 31 December 2024	159,207	234,900	394,107

22. Share Capital

	2024	2023
Allotted, called up and fully paid	£	£
100 Ordinary Shares of £ 1.00 each	100	100

23. Pension Commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.

During the year the charge to the profit and loss account in respect of defined contribution schemes was £11,476 (2023: £9,597).

At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.

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Rs Machinery Group Ltd

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

24. Directors Advances, Credits and Guarantees

Included within Debtors are the following loans to directors:

	As at 1 January 2024	Amounts advanced	Amounts repaid	Amounts written off	As at 31 December 2024
	£	£	£	£	£
Mr Stefan Ross	11,894	145,524	121,099	-	12,532

The above loan is unsecured, interest free and repayable on demand.

25. Dividends

	2024	2023
	£	£
On equity shares:
Final dividend paid	334,848	334,848

26. Reserves

Profit and loss account

Profit and loss account includes all current and prior period retained profits and losses and recognised gains and losses.

27. Related Party Disclosures

Included within creditors due within one year are loans received from certain directors of the company. These loans totalled £412,878 (2023: £483,289) and are unsecured and interest free. The directors have indicated that they would not draw these loans down at the detriment of the company.

28. Parent and ultimate parent undertaking

The company's immediate and ultimate parent is RS Machinery Holdings Limited, incorporated in England and Wales.

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