Richards & Appleby Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 00937090 (England and Wales)

RICHARDS & APPLEBY LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 29TH SEPTEMBER 2021

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

M L Field

D Shah

REGISTERED OFFICE:

Unit 3

Heads Of The Valleys Industrial Estate

Rhymney

Tredegar

Gwent

NP22 5RL

REGISTERED NUMBER:

00937090 (England and Wales)

ACCOUNTANTS:

Sinclairs Bartrum Lerner

Chartered Accountants

Second Floor

34 Lime Street

London

EC3M 7AT

FIXED ASSETS

Intangible assets

3

3

3

Tangible assets

4

1,637,896

1,649,976

Investments

5

1

176,001

1,637,900

1,825,980

CURRENT ASSETS

Stocks

216,000

3,014,231

Debtors

6

1,605,452

867,478

Cash at bank

2,257

12,842

1,823,709

3,894,551

CREDITORS

Amounts falling due within one year

7

2,159,989

4,466,916

NET CURRENT LIABILITIES

(336,280

)

(572,365

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,301,620

1,253,615

CREDITORS

Amounts falling due after more than one year

8

(700,000

)

(790,000

)

PROVISIONS FOR LIABILITIES

(47,761

)

(18,924

)

NET ASSETS

553,859

444,691

CAPITAL AND RESERVES

Called up share capital

51,000

51,000

Revaluation reserve

10

1,224,108

1,120,703

Retained earnings

(721,249

)

(727,012

)

SHAREHOLDERS' FUNDS

553,859

444,691

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 29th September 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 29th September 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 22nd September 2022 and were signed on its behalf by:

M L Field - Director

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities of Financial Reporting Standard 102" The Financial Reporting Standard Applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the company.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Judgements in applying the entity's accounting policies

The company has elected to use the previous UK GAAP valuation of certain items of land and building as the deemed cost on transition to FRS 102. The items are being depreciated from the date of transition in accordance with the company's accounting policies.

Accounting estimates and assumptions

The company 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 the assets and liabilities within the next financial year are addressed below.

(a) Useful economic lives of assets

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, based on future investments, economic utilisation and the physical condition of the assets.

(b) Stock provision

The company manufactures toiletries and cosmetics and is subject to changing consumer demands and trends. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials.

(c) Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the company and value added tax.

The company bases its estimates of returns on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

The company recognises revenue when (a) the significant risk and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods and (c) the amount of revenue can be measured reliably.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% straight line on cost

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

33.33% straight line on cost

Computer equipment

-

33.33% straight line on cost

Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use.

Land and building

Land and building is stated at cost (or deemed cost for land and building held at valuation at the date of transition to FRS 102) less accumulated depreciation and accumulated impairment losses. Land is not depreciated.

The company previously adopted a policy of revaluing freehold land and building and it was stated at its revalued amount less any subsequent depreciation. The company has adopted the transition exemption under FRS 102 paragraph 35.10(d) and has elected to use the previous revaluation as deemed cost.

The difference between depreciation based on the deemed cost charged in the profit and loss account and the asset's original cost is transferred from revaluation reserve to retained earnings.

Plant & machinery, computer equipment and motor vehicles

Those are stated at cost less accumulated depreciation and accumulated impairment losses.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

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 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.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Investments

Investment in subsidiary companies

Investment in subsidiary companies is held at cost less accumulated impairment losses.

Listed investments

Listed investments held as fixed assets are stated at their fair value as at the balance sheet date. Any adjustment to their fair value is recognised in the profit and loss account. An amount for this adjustment is transferred from retained earnings to revaluation reserve.

Dividends are brought to account in the profit and loss account when received.

Financial instruments

Financial assets

Basic financial assets, including trade and other debtors, cash and bank balances and amount owed by group undertakings are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the assets expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another part or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans, loans from related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of the business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised at transaction price.

Employee benefits

The company provides a range of benefits to employees, including paid holiday arrangements and defined contribution pension scheme.

Short term benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

Defined contribution pension

The company operates a defined contribution pension scheme for the benefit of its employees. Contributions payable to the company's pension scheme are charged to profit and loss in the period to which they relate.

2.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was NIL (2020 - NIL).

3.	INTANGIBLE FIXED ASSETS

Patents

and

licences

£

COST

At 30th September 2020

and 29th September 2021

3,453

AMORTISATION

At 30th September 2020

and 29th September 2021

3,450

NET BOOK VALUE

At 29th September 2021

3

At 29th September 2020

3

4.	TANGIBLE FIXED ASSETS

Freehold

Plant and

Motor

Computer

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

COST OR VALUATION

At 30th September 2020

and 29th September 2021

1,400,000

1,297,557

9,000

123,818

2,830,375

DEPRECIATION

At 30th September 2020

25,220

1,022,361

9,000

123,818

1,180,399

Charge for year

25,220

19,492

-

-

44,712

Charge written back

-

(32,632

)

-

-

(32,632

)

At 29th September 2021

50,440

1,009,221

9,000

123,818

1,192,479

NET BOOK VALUE

At 29th September 2021

1,349,560

288,336

-

-

1,637,896

At 29th September 2020

1,374,780

275,196

-

-

1,649,976

Cost or valuation at 29th September 2021 is represented by:

Freehold

Plant and

Motor

Computer

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

Valuation in 2005

291,840

-

-

-

291,840

Valuation in 2006

341,552

-

-

-

341,552

Valuation in 2012

(435,000

)

-

-

-

(435,000

)

Valuation in 2017

215,000

-

-

-

215,000

Valuation in 2019

270,000

-

-

-

270,000

Cost

716,608

1,297,557

9,000

123,818

2,146,983

1,400,000

1,297,557

9,000

123,818

2,830,375

If freehold land and building had not been revalued it would have been included at the following historical cost:

2021

2020

£

£

Cost

716,608

716,608

Aggregate depreciation

218,625

218,625

Value of land in freehold land and buildings

139,000

139,000

Freehold land and building was valued on an open market basis on 10th July 2020 by Cushman & Wakefield .

The company has adopted the transition exemption under FRS 102 paragraph 35.10(d) and has elected to use the previous revaluation as deemed cost

5.	FIXED ASSET INVESTMENTS

Shares in

group

Other

undertakings

investments

Totals

£

£

£

COST

At 30th September 2020

1

176,000

176,001

Disposals

-

(176,000

)

(176,000

)

At 29th September 2021

1

-

1

NET BOOK VALUE

At 29th September 2021

1

-

1

At 29th September 2020

1

176,000

176,001

Listed investments held as fixed assets are stated at their fair value as at the balance sheet date. Any adjustment to the fair value of the investments is recognised in the profit and loss account for the year.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

32,288

72,357

Amounts owed by group undertakings

790,000

790,000

Other debtors

783,164

5,121

1,605,452

867,478

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Bank loans and overdrafts

493,420

563,405

Trade creditors

515,869

645,924

Amounts owed to group undertakings

75,175

75,175

Taxation and social security

71,860

11,341

Other creditors

1,003,665

3,171,071

2,159,989

4,466,916

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Other creditors

700,000

790,000

9.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Bank loans

493,420

563,405

The company's borrowings are secured as follows:

-Fixed and floating charges over all the assets of the company.

-Indemnity and undertaking in the name of M L Field, director.

-Indemnity and undertaking in the name of D R Shah, director.

-Inter company guarantee between the company and its group undertakings.

10.

RESERVES

Revaluation

reserve

£

At 30th September 2020

1,120,703

Fair value adjustment on

investments

133,076

Transfer to/from retained earnings

(29,671

)

At 29th September 2021

1,224,108

11.	RELATED PARTY DISCLOSURES

Information about related party transactions and outstanding balances is outlined below:

Sales/other income

Purchases/ Expenses

Interest

Outstanding balances

Entities with which the company has control,

joint control or significant influence

At 30 September 2021

2,283,690

5,000

27,545

(138,164

)

At 30 September 2020

236,282

8,994

39,191

(2,153,862

)

Other related parties

At 30 September 2021

-

-

-

(89,004

)

At 30 September 2020

-

-

-

(219,004

)

At the Balance Sheet date, £790,000 (2021: £790,000) was owed by Richards & Appleby Holdings Limited, the parent company and £75,175 (2021: £75,175) was owed to Solar Cosmetic Internationals Limited, a 100% subsidiary company.

At the Balance Sheet date, £215,302 (2021: £681,888) was owed to the directors. This amount is repayable on demand and interest free.

The outstanding balances owed by the company are repayable on demand.

12.	ULTIMATE CONTROLLING PARTY

During the current and previous financial year the company was controlled by M L Field and D Shah, the directors of Richards & Appleby Holdings Limited, its ultimate parent undertaking.