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Registered number: 01347416
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RANGEMOORS LIMITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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RANGEMOORS LIMITED
CHAIRMAN'S STATEMENT
FOR THE YEAR ENDED 30 JUNE 2020
The chairman presents his statement for the period.
Despite the impact of COVID19 on the last 3 months of our trading year I am pleased to report our retained profit is at a similar level to last year. We did furlough some staff early on but our business has proved robust and I am pleased to say most have returned to work. Our online sales have done well, in particular spares and the Morso Outdoor Living Products. We are pleased that 5 years after establishing our Hearth and Cook business in Exeter with its quality brands including La Cornue, Esse,Focus and Morso sales are now at a level to make a valuable contribution to the groups overall performance.
Looking to the future even with COVID in existence we have had an excellent first quarter, but we remain alert to react to circumstances.
Our Winkleigh and Exeter showrooms have now reopened and are COVID secure with most customers at the moment on a prearranged visits which is working well.
The board’s thanks go out to all our staff who have had to endure unprecedented times, but whether furloughed or not have cooperated fully and been totally committed to the business and its quality of service.
NameMr A J Vodden
Chairman
Date17 September 2020
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RANGEMOORS LIMITED
REGISTERED NUMBER:01347416
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 17 September 2020.
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RANGEMOORS LIMITED
REGISTERED NUMBER:01347416
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 JUNE 2020
The notes on pages 5 to 14 form part of these financial statements.
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RANGEMOORS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020
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Comprehensive income for the year
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Surplus on revaluation of leasehold property
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Total comprehensive income for the year
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Transfer of excess depreciation on revalued asset
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Total transactions with owners
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Comprehensive income for the year
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Total comprehensive income for the year
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Dividends: Equity capital
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Transfer of excess depreciation on revalued asset
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Total transactions with owners
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The notes on pages 5 to 14 form part of these financial statements.
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RANGEMOORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
Rangemoors Limited is a private company, limited by shares. The company is incorporated in the United Kingdom and its registered office is Senate Court, Southernhay Gardens, Exeter, Devon, EX1 1NT.
2.ACCOUNTING POLICIES
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BASIS OF PREPARATION OF FINANCIAL STATEMENTS
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The Directors have considered the outbreak of COVID-19 in early 2020 and what impact it has had on the operations of the business to date and what impact it may have in the future.
The Company relies on income being generated from its showroom sites and on being able to deliver, install and maintain products at clients' premises.
The period of lockdown suffered in Q4 2020 led to a loss of income as sites were required to close. However, since re-opening, the level of demand has exceeded expectations and the Company has been able to supply products to residential sites, either direct to owner occupiers or to property developers. The Company has also seen an increase in demand for spare and replacement parts.
A period of second lockdown has the potential to have a significant impact on the Company's financial position, however, the Directors are confident that the business could withstand all but the most prolonged period of inactivity. The Directors have prepared forecasts for the period to 30 June 2022 which indicate that the Company will remain in a cash positive position throughout. The Directors’ assumptions and outlook assumes that COVID-19 causes no material unanticipated changes to the business model. However, in order to further mitigate this risk, the Directors have elected to take advantage of additional funding available and following the year end, made a successful application for £250,000 under the Coronavirus Business Interruption Loan Scheme.
Based on the above, the Directors are confident that the Company will be able to continue to realise its assets and discharge its liabilties for the foreseeable future and as such, that it is appropriate for the financial statements to be prepared on a going concern basis.
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RANGEMOORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.ACCOUNTING POLICIES (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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RANGEMOORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.ACCOUNTING POLICIES (continued)
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TANGIBLE FIXED ASSETS (CONTINUED)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using both the straight-line and reducing balance methods.
Depreciation is provided on the following basis:
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Long-term leasehold property
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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REVALUATION OF TANGIBLE FIXED ASSETS
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Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the Statement of Financial Position date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Page 7
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RANGEMOORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.ACCOUNTING POLICIES (continued)
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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CASH AND CASH EQUIVALENTS
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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OPERATING LEASES: THE COMPANY AS LESSEE
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
DEFINED CONTRIBUTION PENSION PLAN
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Page 8
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RANGEMOORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
2.ACCOUNTING POLICIES (continued)
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PROVISIONS FOR LIABILITIES
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Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
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CURRENT AND DEFERRED TAXATION
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
These financial statements have been audited by Bishop Fleming Chartered Accountants & Statutory Auditors, with an unqualified audit opinion being issued. The audit report was signed on 17/09/2020 by Mark Munro FCA as senior statutory auditor.
In accordance with the provisions applicable to companies subject to the small companies' regime and s444 of the Companies Act 2006, this audit report has not been filed.
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The average monthly number of employees, including directors, during the year was 31 (2019: 31).
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Page 9
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RANGEMOORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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Charge for the year on owned assets
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Page 10
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RANGEMOORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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Long-term leasehold property
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Charge for the year on owned assets
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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Furniture, fittings and equipment
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During 2019 the directors, having first taken appropriate professional advice, revalued the long-term leasehold property to £782,378. The directors have undertaken a further valuation in 2020 and consider the valuation from 2019 to remain appropriate.
Page 11
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RANGEMOORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
6.TANGIBLE FIXED ASSETS (CONTINUED)
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If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:
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Other fixed asset investments
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Amounts owed by group undertakings
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Prepayments and accrued income
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Page 12
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RANGEMOORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
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CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
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Net obligations under finance leases and hire purchase contracts
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Bank borrowings are secured by a first charge over the long leasehold propoerty and a debenture over the company assets excluding book debts.
Then stocking loan of £nil (2019: £200,672) is included in other loans and is secured over the company's stock holding.
Included within bank loans and overdrafts is a balance relating to the drawdown on the invoice financing facility of £nil (2019: £130,686).
An Omnibus Guarantee and Set-off Agreement has been given in favour of Lloyds Banking Group by the company to secure all monies and liabilities then due or which might thereafter become due.
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ALLOTTED, CALLED UP AND FULLY PAID
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10,000 (2019: 10,000) Ordinary shares of £1.00 each
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The Company operates a defined pension contribution scheme. The assets of the scheme are held separately 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 £10,670 (2019: £9,166). Contributions totalling £4,728 (2019: £2,685) were payable to the fund at the reporting date and are included in creditors.
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RELATED PARTY TRANSACTIONS
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During the year, the Company paid a management charge of £80,000 (2019: £65,000) to Chimney Holdings Limited, the parent company. The Company also maintained a loan account with Chimney Holdings Limited. At the year end, the Company was owed £1,167,548 (2018: £1,799,349). No interest is charged on this loan and it is repayable on demand.
A Director of the company is also a Director of Coastal Recycling Services Limited. During the year Rangemoors made purchases of £1,462 (2019: £1,581) from this company. At the year end a balance of £Nil (2018: £104) was included in creditors.
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POST BALANCE SHEET EVENTS
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In August 2020, the Company successfully applied for £250,000 under the Coronavirus Business Interruption Scheme.
Page 13
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RANGEMOORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020
The ultimate parent undertaking is Chimney Holdings Limited, a company registered in England and Wales. Chimney Holdings Limited own all of the issued share capital of Rangemoors Limited.
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