Ridgway Holdings International Limited - Limited company accounts 20.1

REGISTERED NUMBER: 03209914 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2020

FOR

RIDGWAY HOLDINGS INTERNATIONAL LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

T R Jones

S R Jones

G R Jones

REGISTERED OFFICE:

Earthmover House

Ridgway Business Park

St Martins

Shropshire

SY11 3PZ

REGISTERED NUMBER:

03209914 (England and Wales)

AUDITORS:

D.R.E. & Co. (Audit) Limited

6 Claremont Buildings

Claremont Bank

Shrewsbury

Shropshire

SY1 1RJ

The directors present their strategic report of the company and the group for the year ended 30 April 2020.

REVIEW OF BUSINESS

The principal activities of the group in the year under review were those of sale and hire of plant and machinery, property development and the provision of aviation services.

The group has maintained strong results during the year and it expects this to continue for the foreseeable future.

Key Performance Indicators

2020

2019

% change

Turnover

£22,298,834

£15,789,874

41.22%

Gross margin

19.91%

28.29%

(8.38%

)

Operating profit

£2,957,969

£3,367,444

(12.16%

)

Cash generation

£445,047

(£827,449

)

The growth in turnover during the year is due to the expansion of the group's hire fleet.

Environment

The group continues to monitor the impact of its business on the environment.

Employees

Details of the number of employees and related costs can be found in note 5 to the financial statements.

Cash generation

The cash generation movement is due to the group taking available payment holidays on its hire purchase liabilities, due to the Covid 19 pandemic.

PRINCIPAL RISKS AND UNCERTAINTIES

The group operates in a competitive market which is a continuing risk and may result in sales being lost to competitors. The company manages this risk by providing excellent service in all its activities.

At the year end date, Covid 19 and the associated restrictions were on going. The directors have considered the impact on the business and reviewed the post year end trading results and are satisfied that the going concern basis remains appropriate.

ON BEHALF OF THE BOARD:

T R Jones - Director

18 November 2020

The directors present their report with the financial statements of the company and the group for the year ended 30 April 2020.

DIVIDENDS

The directors recommend an interim dividend of £5,000 per ordinary share.

The total distribution of dividends for the year ended 30 April 2020 will be £1,000,000.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 May 2019 to the date of this report.

T R Jones

S R Jones

G R Jones

POLITICAL DONATIONS AND EXPENDITURE

Details of political donations are included in the consolidated accounts of the ultimate parent company, Sandford Assets Limited.

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen, in accordance with s414C(11) of the Companies Act, to set out in the company's strategic report information regarding the review of business and a description of the principal risks and uncertainties facing the company.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, D.R.E. & Co. (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

T R Jones - Director

18 November 2020

Opinion

We have audited the financial statements of Ridgway Holdings International Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2020 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 April 2020 and of the group's 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 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 group 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 opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Francis Nock F.C.C.A. (Senior Statutory Auditor)

for and on behalf of D.R.E. & Co. (Audit) Limited

6 Claremont Buildings

Claremont Bank

Shrewsbury

Shropshire

SY1 1RJ

18 November 2020

TURNOVER

4

22,298,834

15,789,874

Cost of sales

(17,859,736

)

(11,323,425

)

GROSS PROFIT

4,439,098

4,466,449

Administrative expenses

(1,481,129

)

(1,099,005

)

OPERATING PROFIT

6

2,957,969

3,367,444

Interest receivable and similar income

235

2,940

2,958,204

3,370,384

Interest payable and similar expenses

7

(1,343,048

)

(728,006

)

PROFIT BEFORE TAXATION

1,615,156

2,642,378

Tax on profit

8

(436,141

)

(696,821

)

PROFIT FOR THE FINANCIAL YEAR

1,179,015

1,945,557

Profit attributable to:

Owners of the parent

1,179,015

1,945,557

PROFIT FOR THE YEAR

1,179,015

1,945,557

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,179,015

1,945,557

Total comprehensive income attributable to:

Owners of the parent

1,179,015

1,945,557

FIXED ASSETS

Tangible assets

11

56,678,929

51,821,499

Investments

12

-

-

Investment property

13

394,954

394,954

57,073,883

52,216,453

CURRENT ASSETS

Stocks

14

73,418

76,836

Debtors

15

4,567,495

4,768,955

Cash at bank and in hand

591,662

146,615

5,232,575

4,992,406

CREDITORS

Amounts falling due within one year

16

24,710,464

22,278,147

NET CURRENT LIABILITIES

(19,477,889

)

(17,285,741

)

TOTAL ASSETS LESS CURRENT LIABILITIES

37,595,994

34,930,712

CREDITORS

Amounts falling due after more than one year

17

(29,007,929

)

(26,957,803

)

PROVISIONS FOR LIABILITIES

21

(3,324,125

)

(2,887,984

)

NET ASSETS

5,263,940

5,084,925

CAPITAL AND RESERVES

Called up share capital

22

2

2

Retained earnings

23

5,263,938

5,084,923

SHAREHOLDERS' FUNDS

5,263,940

5,084,925

The financial statements were approved by the Board of Directors and authorised for issue on 18 November 2020 and were signed on its behalf by:

T R Jones - Director

FIXED ASSETS

Tangible assets

11

-

-

Investments

12

160,203

160,203

Investment property

13

-

-

160,203

160,203

CURRENT ASSETS

Debtors

15

4,418,258

4,148,088

CREDITORS

Amounts falling due within one year

16

4,149,929

3,974,305

NET CURRENT ASSETS

268,329

173,783

TOTAL ASSETS LESS CURRENT LIABILITIES

428,532

333,986

CAPITAL AND RESERVES

Called up share capital

22

2

2

Retained earnings

23

428,530

333,984

SHAREHOLDERS' FUNDS

428,532

333,986

Company's profit for the financial year

1,094,546

1,994,570

The financial statements were approved by the Board of Directors and authorised for issue on 18 November 2020 and were signed on its behalf by:

T R Jones - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 May 2018

2

5,139,366

5,139,368

Changes in equity

Dividends

-

(2,000,000

)

(2,000,000

)

Total comprehensive income

-

1,945,557

1,945,557

Balance at 30 April 2019

2

5,084,923

5,084,925

Changes in equity

Dividends

-

(1,000,000

)

(1,000,000

)

Total comprehensive income

-

1,179,015

1,179,015

Balance at 30 April 2020

2

5,263,938

5,263,940

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 May 2018

2

339,414

339,416

Changes in equity

Dividends

-

(2,000,000

)

(2,000,000

)

Total comprehensive income

-

1,994,570

1,994,570

Balance at 30 April 2019

2

333,984

333,986

Changes in equity

Dividends

-

(1,000,000

)

(1,000,000

)

Total comprehensive income

-

1,094,546

1,094,546

Balance at 30 April 2020

2

428,530

428,532

Cash flows from operating activities

Cash generated from operations

1

8,621,703

8,234,125

Interest paid

(282,201

)

(97,255

)

Interest element of hire purchase payments paid

(1,060,847

)

(630,751

)

Net cash from operating activities

7,278,655

7,506,119

Cash flows from investing activities

Purchase of tangible fixed assets

(6,309,487

)

(2,293,734

)

Sale of tangible fixed assets

8,517,654

6,114,977

Interest received

235

2,940

Net cash from investing activities

2,208,402

3,824,183

Cash flows from financing activities

New loans in year

5,777,297

1,581,047

Loan repayments in year

(1,322,785

)

(14,394

)

Capital repayments in year

(12,644,085

)

(11,954,864

)

Amount introduced by directors

617,513

230,460

Amount withdrawn by directors

(469,950

)

-

Equity dividends paid

(1,000,000

)

(2,000,000

)

Net cash from financing activities

(9,042,010

)

(12,157,751

)

Increase/(decrease) in cash and cash equivalents

445,047

(827,449

)

Cash and cash equivalents at beginning of year

2

146,615

974,064

Cash and cash equivalents at end of year

2

591,662

146,615

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30.4.20

30.4.19

£

£

Profit before taxation

1,615,156

2,642,378

Depreciation charges

5,875,066

4,072,223

Loss/(profit) on disposal of fixed assets

9,491

(50,090

)

Finance costs

1,343,048

728,006

Finance income

(235

)

(2,940

)

8,842,526

7,389,577

Decrease/(increase) in stocks

3,418

(25,546

)

Decrease/(increase) in trade and other debtors

201,467

(1,654,826

)

(Decrease)/increase in trade and other creditors

(425,708

)

2,524,920

Cash generated from operations

8,621,703

8,234,125

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 April 2020

30.4.20

1.5.19

£

£

Cash and cash equivalents

591,662

146,615

Year ended 30 April 2019

30.4.19

1.5.18

£

£

Cash and cash equivalents

146,615

974,064

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.5.19

Cash flow

At 30.4.20

£

£

£

Net cash

Cash at bank and in hand

146,615

445,047

591,662

146,615

445,047

591,662

Debt

Finance leases

(39,037,175

)

(306,069

)

(39,343,244

)

Debts falling due within 1 year

(4,792,229

)

(4,461,065

)

(9,253,294

)

Debts falling due after 1 year

(206,154

)

6,553

(199,601

)

(44,035,558

)

(4,760,581

)

(48,796,139

)

Total

(43,888,943

)

(4,315,534

)

(48,204,477

)

1.	STATUTORY INFORMATION

Ridgway Holdings International Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	STATEMENT OF COMPLIANCE

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

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

These financial statements are for the group as well as for the individual entity.

The financial statements are presented in sterling (£), rounded to the nearest £1.

Going concern

At the balance sheet date the group had net current liabilities of £19,477,889 (2019: £17,285,741). As shown in note 16, £10,534,916 (2019: £12,285,526) relates to hire purchase and finance lease liabilities and £9,253,294 (2019: £4,792,229) relates to bank loans, which are used to finance the hire fleet shown in the balance sheet under tangible fixed assets. The directors have considered post year-end trading and the on going impact of the Covid 19 pandemic and believe that the going concern basis of preparation is still appropriate.

Financial Reporting Standard 102 - reduced disclosure exemptions

The group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv);

•

the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);

•

the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of Section 12 Other Financial Instruments paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Basis of consolidation

The consolidated financial statements present the results of the parent company and those of its subsidiaries. All consolidated subsidiaries have coterminous financial year ends. Inter group transactions have been eliminated from the financial statements and subsidiary results have been restated, where applicable to reflect comparable accounting policies. The financial statements therefore include:

Ridgway Holdings International Limited - (Parent company)

Ridgway Rentals Limited - (100% subsidiary undertaking)

Ridgway Properties Limited - (100% subsidiary undertaking)

Ridgway Aviation Limited - (100% subsidiary undertaking)

Sandford Assets (St Martins) Limited - (75% dormant subsidiary undertaking)

Ridgway Leasing Limited - (100% subsidiary undertaking of Ridgway Rentals Limited)

Significant judgements and estimates

The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of tangible fixed assets, and note 3 for the useful economic lives for each class of assets.

The company makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 15 for the net carrying amount of debtors.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover includes the proceeds of sale of hire fleet assets. The net book value of these assets is disclosed within cost of sales.

Tangible fixed assets

Tangible fixed assets are stated at historic cost less accumulated depreciation. Costs include the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold buildings

-

33% on cost, 25% on cost and 1% on cost

Freehold land

-

Not provided

Aircraft

-

5% on cost

Plant and machinery

-

25% on cost and 10% on cost

Hire fleet

-

10% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost, 25% on cost and 20% on cost

Investment property

Investment properties are included in the balance sheet at their fair value.

Any aggregate surplus or deficit arising from changes in fair value is recognised in profit and loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.