Rosebank Holdings Limited - Limited company accounts 20.1
Rosebank Holdings Limited - Limited company accounts 20.1
| REGISTERED NUMBER: SC288160 (Scotland) |
| Group Strategic Report, Report of the Directors and |
| Consolidated Financial Statements for the Year Ended 31 March 2021 |
| for |
| Rosebank Holdings Limited |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Contents of the Consolidated Financial Statements |
| for the Year Ended 31 March 2021 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 4 |
| 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 | 16 |
| Rosebank Holdings Limited |
| Company Information |
| for the Year Ended 31 March 2021 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants and Statutory Auditors |
| 145 St Vincent Street |
| Glasgow |
| G2 5JF |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Group Strategic Report |
| for the Year Ended 31 March 2021 |
| The directors present their strategic report of the company and the group for the year ended 31 March 2021. |
| REVIEW OF BUSINESS |
| Overall turnover was down 21% in 2020/21 compared to 2019/20. Gross profit was slightly lower in 2020/21 at 41% compared to 43% in 2019/20. Net operating costs were 33% lower in 2020/21 compared to 2019/20. The company made an operating profit of £393,919 in 2020/21 compared to an operating loss of £102,282 in 2019/20. |
| Sales dropped in 2020/21 due to the impact of the UK Government imposed national and regional lockdowns on the business. Stores were closed for the best part of six months in England and nine months in Scotland. The company was able to pivot to online and they traded well when the shops re-opened which reduced the overall impact of the store closures. |
| The sale of luxury watches continued to be strong throughout lockdown as demand continues to outstrip supply in this category. The sale of diamond engagement rings and diamond jewellery bounced back when the shops re-opened. |
| The company made best use of the UK Government support made available for COVID-19 via the Coronavirus Job Retention Scheme and Non-Domestic rates relief. The company also undertook a full review of operating costs and significant costs saving measures were made to ensure the ongoing profitability of the business. |
| The company continued to invest in digital marketing activity and the company launched a new website in November 2020 on the Magento 2 platform. In-store events were suspended in 2020/21 due to COVID-19 but resumed in August 2021. |
| The company opened the UK's first Gucci watches and jewellery boutique at Glasgow's iconic Argyll Arcade in July 2021. The new boutique has been trading well, ahead of expectations. |
| The Directors are pleased to report that the company has traded well in the first half of 2021 after the latest lockdown. At the time of writing, the Directors are confident that the company will be profitable in 2021/22, assuming no further lockdowns. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| In line with previous years, the principal risks and uncertainties are the effects of a downturn in trade associated with the economic climate, excessive fluctuations in the supply, price and availability of diamonds, gold and platinum and the ability to maintain and build relationships with the luxury watch brands. The group continues to focus on providing customers with an extraordinary shopping experience while remaining at the forefront of luxury jewellery retail. |
| ON BEHALF OF THE BOARD: |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Report of the Directors |
| for the Year Ended 31 March 2021 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 March 2021. |
| DIVIDENDS |
| The total distribution of dividends for the year ended 31 March 2021 will be £104,989 (2020: £nil). |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 April 2020 to the date of this report. |
| 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). 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. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Rosebank Holdings Limited |
| Opinion |
| We have audited the financial statements of Rosebank Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2021 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 31 March 2021 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 |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| 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. |
| Report of the Independent Auditors to the Members of |
| Rosebank Holdings Limited |
| 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
| - the nature of the industry and sector, control environment and business performance; |
| - results of our enquiries of management about their own identification and assessment of the risks and irregularities; |
| - any matters we identified having reviewed the company's internal controls established to mitigate risks of fraud or non- compliance with laws and regulations; |
| - the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
| We obtained an understanding of the legal and regulatory framework that the company operates in. The key laws and regulations we considered included the UK Companies Act and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate. These included health and safety, GDPR and employment laws. Auditing standards limit the required audit procedures to identify non - compliance with these laws and regulations to enquiry of the directors, inspection of regulatory and legal correspondence, if any, and review of minutes of meetings.These limited procedures did not identify actual or suspected non-compliance. |
| 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. |
| Report of the Independent Auditors to the Members of |
| Rosebank Holdings Limited |
| 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. |
| for and on behalf of |
| Chartered Accountants and Statutory Auditors |
| 145 St Vincent Street |
| Glasgow |
| G2 5JF |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Consolidated Income Statement |
| for the Year Ended 31 March 2021 |
| 31.3.21 | 31.3.20 |
| Notes | £ | £ |
| TURNOVER | 11,563,497 | 14,577,468 |
| Cost of sales | (6,891,326 | ) | (8,343,800 | ) |
| GROSS PROFIT | 4,672,171 | 6,233,668 |
| Administrative expenses | (4,503,879 | ) | (6,352,494 | ) |
| 168,292 | (118,826 | ) |
| Other operating income | 225,626 | 16,543 |
| OPERATING PROFIT/(LOSS) | 4 | 393,918 | (102,283 | ) |
| Interest payable and similar expenses | 5 | (35,636 | ) | (66,010 | ) |
| PROFIT/(LOSS) BEFORE TAXATION | 358,282 | (168,293 | ) |
| Tax on profit/(loss) | 6 | (82,295 | ) | 2,726 |
| PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
| Profit/(loss) attributable to: |
| Owners of the parent | 275,987 | (165,567 | ) |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Consolidated Other Comprehensive Income |
| for the Year Ended 31 March 2021 |
| 31.3.21 | 31.3.20 |
| Notes | £ | £ |
| PROFIT/(LOSS) FOR THE YEAR | 275,987 | (165,567 | ) |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR |
275,987 |
(165,567 |
) |
| Total comprehensive income attributable to: |
| Owners of the parent | 275,987 | (127,405 | ) |
| Non-controlling interests | - | (38,162 | ) |
| 275,987 | (165,567 | ) |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Consolidated Balance Sheet |
| 31 March 2021 |
| 31.3.21 | 31.3.20 |
| Notes | £ | £ |
| FIXED ASSETS |
| Intangible assets | 9 | 850,574 | 941,417 |
| Tangible assets | 10 | 1,390,723 | 1,633,973 |
| Investments | 11 | - | - |
| 2,241,297 | 2,575,390 |
| CURRENT ASSETS |
| Stocks | 12 | 4,381,571 | 4,474,666 |
| Debtors | 13 | 459,260 | 702,081 |
| Cash at bank and in hand | 25,789 | 33,938 |
| 4,866,620 | 5,210,685 |
| CREDITORS |
| Amounts falling due within one year | 14 | (3,942,007 | ) | (5,156,309 | ) |
| NET CURRENT ASSETS | 924,613 | 54,376 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
3,165,910 |
2,629,766 |
| CREDITORS |
| Amounts falling due after more than one year |
15 |
(1,413,343 |
) |
(1,076,301 |
) |
| PROVISIONS FOR LIABILITIES | 19 | (51,466 | ) | (23,360 | ) |
| NET ASSETS | 1,701,101 | 1,530,105 |
| CAPITAL AND RESERVES |
| Called up share capital | 20 | 200,008 | 200,008 |
| Capital redemption reserve | 21 | 1,200,000 | 1,200,000 |
| Retained earnings | 21 | 301,093 | 130,097 |
| SHAREHOLDERS' FUNDS | 1,701,101 | 1,530,105 |
| The financial statements were approved by the Board of Directors and authorised for issue on 16 December 2021 and were signed on its behalf by: |
| K P H Keogh - Director |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Company Balance Sheet |
| 31 March 2021 |
| 31.3.21 | 31.3.20 |
| Notes | £ | £ |
| FIXED ASSETS |
| Intangible assets | 9 |
| Tangible assets | 10 |
| Investments | 11 |
| CURRENT ASSETS |
| Debtors | 13 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 14 | ( |
) | ( |
) |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 20 |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 104,989 | - |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Consolidated Statement of Changes in Equity |
| for the Year Ended 31 March 2021 |
| Called up | Capital |
| share | Retained | redemption |
| capital | earnings | reserve |
| £ | £ | £ |
| Balance at 1 April 2019 | 200,008 | 333,826 | 1,161,838 |
| Changes in equity |
| Total comprehensive loss | - | (203,729 | ) | 38,162 |
| Balance at 31 March 2020 | 200,008 | 130,097 | 1,200,000 |
| Changes in equity |
| Dividends | - | (104,989 | ) | - |
| Total comprehensive income | - | 275,987 | - |
| Balance at 31 March 2021 | 200,008 | 301,095 | 1,200,000 |
| Non-controlling | Total |
| Total | interests | equity |
| £ | £ | £ |
| Balance at 1 April 2019 | 1,695,672 | 38,162 | 1,733,834 |
| Changes in equity |
| Total comprehensive loss | (165,567 | ) | (38,162 | ) | (203,729 | ) |
| Balance at 31 March 2020 | 1,530,105 | - | 1,530,105 |
| Changes in equity |
| Dividends | (104,989 | ) | - | (104,989 | ) |
| Total comprehensive income | 275,987 | - | 275,987 |
| Balance at 31 March 2021 | 1,701,103 | - | 1,701,103 |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Company Statement of Changes in Equity |
| for the Year Ended 31 March 2021 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 April 2019 |
| Changes in equity |
| Balance at 31 March 2020 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 March 2021 |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Consolidated Cash Flow Statement |
| for the Year Ended 31 March 2021 |
| 31.3.21 | 31.3.20 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | (261,391 | ) | 785,845 |
| Interest paid | (35,636 | ) | (66,010 | ) |
| Tax paid | - | (50,853 | ) |
| Net cash from operating activities | (297,027 | ) | 668,982 |
| Cash flows from investing activities |
| Purchase of intangible fixed assets | (9,746 | ) | (23,687 | ) |
| Purchase of tangible fixed assets | (92,896 | ) | (636,564 | ) |
| Net cash from investing activities | (102,642 | ) | (660,251 | ) |
| Cash flows from financing activities |
| New loans in year | 750,000 | 250,000 |
| Loan repayments in year | (108,124 | ) | (39,579 | ) |
| Capital repayments in year | (47,723 | ) | (36,021 | ) |
| Amount introduced by directors | 100,471 | - |
| Amount withdrawn by directors | - | (100,438 | ) |
| Share buyback | - | (38,162 | ) |
| Equity dividends paid | (104,989 | ) | - |
| Net cash from financing activities | 589,635 | 35,800 |
| Increase in cash and cash equivalents | 189,966 | 44,531 |
| Cash and cash equivalents at beginning of year |
2 |
(963,448 |
) |
(1,007,979 |
) |
| Cash and cash equivalents at end of year | 2 | (773,482 | ) | (963,448 | ) |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Notes to the Consolidated Cash Flow Statement |
| for the Year Ended 31 March 2021 |
| 1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31.3.21 | 31.3.20 |
| £ | £ |
| Profit/(loss) before taxation | 358,282 | (168,293 | ) |
| Depreciation charges | 436,735 | 401,034 |
| Finance costs | 35,636 | 66,010 |
| 830,653 | 298,751 |
| Decrease/(increase) in stocks | 93,095 | (289,503 | ) |
| Decrease in trade and other debtors | 142,424 | 127,593 |
| (Decrease)/increase in trade and other creditors | (1,327,563 | ) | 649,004 |
| Cash generated from operations | (261,391 | ) | 785,845 |
| 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 31 March 2021 |
| 31.3.21 | 1.4.20 |
| £ | £ |
| Cash and cash equivalents | 25,789 | 33,938 |
| Bank overdrafts | (799,271 | ) | (997,386 | ) |
| (773,482 | ) | (963,448 | ) |
| Year ended 31 March 2020 |
| 31.3.20 | 1.4.19 |
| £ | £ |
| Cash and cash equivalents | 33,938 | 14,187 |
| Bank overdrafts | (997,386 | ) | (1,022,166 | ) |
| (963,448 | ) | (1,007,979 | ) |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Notes to the Consolidated Cash Flow Statement |
| for the Year Ended 31 March 2021 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.4.20 | Cash flow | At 31.3.21 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 33,938 | (8,149 | ) | 25,789 |
| Bank overdrafts | (997,386 | ) | 198,115 | (799,271 | ) |
| (963,448 | ) | 189,966 | (773,482 | ) |
| Debt |
| Finance leases | (208,806 | ) | 47,723 | (161,083 | ) |
| Debts falling due within 1 year | (74,626 | ) | (195,249 | ) | (269,875 | ) |
| Debts falling due after 1 year | (572,302 | ) | (446,626 | ) | (1,018,928 | ) |
| (855,734 | ) | (594,152 | ) | (1,449,886 | ) |
| Total | (1,819,182 | ) | (404,186 | ) | (2,223,368 | ) |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Notes to the Consolidated Financial Statements |
| for the Year Ended 31 March 2021 |
| 1. | STATUTORY INFORMATION |
| Rosebank Holdings Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Due to the current economic climate arising from Covid-19 the Directors recognise that there are certain matters that might influence the business that are outwith the group's control. The directors are therefore monitoring the Covid-19 situation and managing its effect on the business on a continuous basis. |
| Given the information presented the Directors continue to adopt a going concern basis in preparing the financial statements. |
| Basis of consolidation |
| The group financial statements consolidate the statements of the company and its subsidiary undertakings for the year to 31 March 2021. All inter-group transactions and balances are eliminated in full on consolidation. |
| Turnover |
| Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers. |
| Goodwill |
| Tangible fixed assets |
| Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
| Short leasehold - in accordance with the property |
| Shop fitting - 10% on cost |
| Plant and machinery - 33% on cost and 25% on reducing balance |
| Fixtures and fittings - 10% - 20% on cost |
| Website development - 20% on cost |
| The company's policy is to review the remaining useful lives and residual value of all tangible fixed assets on an on-going basis and to adjust the depreciation charge to reflect the remaining useful economic life and residual value. |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| Debtors |
| Trade debtors and other debtors are recognised at the settlement amount due with appropriate allowances for any irrecoverable amounts when there is objective evidence the asset is impaired. |
| Cash and cash equivalents |
| Cash and cash equivalents in the balance sheet comprise cash in hand and bank overdrafts. |
| Creditors |
| Trade creditors and other creditors are recognised where the company has a present obligation resulting from a past event and are recognised at the settlement amount due after allowing for any trade discounts due. |
| 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. |
| 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. |
| Foreign currencies |
| 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 of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
| 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. |
| Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the lease term. |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2021 |
| 2. | ACCOUNTING POLICIES - continued |
| Grants |
| Capital contributions received in respect of capital expenditure are credited to a deferred income account and are released to profit by equal annual instalments over the lease term or the period until the first rent review, whichever is shorter. |
| 3. | EMPLOYEES AND DIRECTORS |
| 31.3.21 | 31.3.20 |
| £ | £ |
| Wages and salaries | 1,663,064 | 1,891,850 |
| Social security costs | 156,430 | 166,446 |
| Other pension costs | 51,987 | 56,880 |
| 1,871,481 | 2,115,176 |
| The average number of employees during the year was as follows: |
| 31.3.21 | 31.3.20 |
| Administration and support | 14 | 20 |
| Sales | 52 | 64 |
| Marketing | 2 | 2 |
| The average number of employees by undertakings that were proportionately consolidated during the year was 68 (2020 - 86 ) . |
| 31.3.21 | 31.3.20 |
| £ | £ |
| Directors' remuneration | 320,000 | 98,192 |
| Directors' pension contributions to money purchase schemes | 13,600 | 7,200 |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes | 2 | 2 |
| Information regarding the highest paid director for the year ended 31 March 2021 is as follows: |
| 31.3.21 |
| £ |
| Emoluments etc | 160,000 |
| Pension contributions to money purchase schemes | 10,000 |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2021 |
| 4. | OPERATING PROFIT/(LOSS) |
| The operating profit (2020 - operating loss) is stated after charging/(crediting): |
| 31.3.21 | 31.3.20 |
| £ | £ |
| Depreciation - owned assets | 304,353 | 294,514 |
| Depreciation - assets on hire purchase contracts | 31,793 | 15,019 |
| Goodwill amortisation | 91,500 | 91,500 |
| Development costs amortisation | 9,089 | - |
| Auditors' remuneration | 16,000 | 18,200 |
| Auditors' remuneration for non audit work | 3,306 | 3,094 |
| Foreign exchange differences | (9,876 | ) | (2,210 | ) |
| 5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31.3.21 | 31.3.20 |
| £ | £ |
| Bank interest | 7,647 | 41,359 |
| Bank loan interest | 27,989 | 24,651 |
| 35,636 | 66,010 |
| 6. | TAXATION |
| Analysis of the tax charge/(credit) |
| The tax charge/(credit) on the profit for the year was as follows: |
| 31.3.21 | 31.3.20 |
| £ | £ |
| Current tax: |
| UK corporation tax | 54,189 | (50,853 | ) |
| Deferred tax | 28,106 | 48,127 |
| Tax on profit/(loss) | 82,295 | (2,726 | ) |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2021 |
| 6. | TAXATION - continued |
| Reconciliation of total tax charge/(credit) included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 31.3.21 | 31.3.20 |
| £ | £ |
| Profit/(loss) before tax | 358,282 | (168,293 | ) |
| Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 19 % (2020 - 19 %) |
68,074 |
(31,976 |
) |
| Effects of: |
| Expenses not deductible for tax purposes | 3,488 | 13,877 |
| Income not taxable for tax purposes | (8,170 | ) | (2,723 | ) |
| Capital allowances in excess of depreciation | - | (82,512 | ) |
| Depreciation in excess of capital allowances | 43,278 | - |
| Utilisation of tax losses | (52,481 | ) | - |
| years |
| Deferred tax | 28,106 | 48,127 |
| Losses to carry forward | - | 52,481 |
| Total tax charge/(credit) | 82,295 | (2,726 | ) |
| 7. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| 8. | DIVIDENDS |
| 31.3.21 | 31.3.20 |
| £ | £ |
| Ordinary Shares shares of £1 each |
| Final | 104,989 | - |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2021 |
| 9. | INTANGIBLE FIXED ASSETS |
| Group |
| Development | Computer |
| Goodwill | costs | software | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 April 2020 | 1,830,000 | 44,417 | 20,250 | 1,894,667 |
| Additions | - | 9,746 | - | 9,746 |
| At 31 March 2021 | 1,830,000 | 54,163 | 20,250 | 1,904,413 |
| AMORTISATION |
| At 1 April 2020 | 933,000 | - | 20,250 | 953,250 |
| Amortisation for year | 91,500 | 9,089 | - | 100,589 |
| At 31 March 2021 | 1,024,500 | 9,089 | 20,250 | 1,053,839 |
| NET BOOK VALUE |
| At 31 March 2021 | 805,500 | 45,074 | - | 850,574 |
| At 31 March 2020 | 897,000 | 44,417 | - | 941,417 |
| 10. | TANGIBLE FIXED ASSETS |
| Group |
| Improvements |
| Short | to | Plant and |
| leasehold | property | machinery |
| £ | £ | £ |
| COST |
| At 1 April 2020 | 594,844 | 1,682,733 | 1,317,525 |
| Additions | 7,102 | 9,396 | 11,859 |
| At 31 March 2021 | 601,946 | 1,692,129 | 1,329,384 |
| DEPRECIATION |
| At 1 April 2020 | 258,411 | 907,785 | 997,198 |
| Charge for year | 46,139 | 129,602 | 90,330 |
| At 31 March 2021 | 304,550 | 1,037,387 | 1,087,528 |
| NET BOOK VALUE |
| At 31 March 2021 | 297,396 | 654,742 | 241,856 |
| At 31 March 2020 | 336,433 | 774,948 | 320,327 |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2021 |
| 10. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Fixtures |
| and | Website |
| fittings | development | Totals |
| £ | £ | £ |
| COST |
| At 1 April 2020 | 883,731 | 113,898 | 4,592,731 |
| Additions | 2,033 | 62,506 | 92,896 |
| At 31 March 2021 | 885,764 | 176,404 | 4,685,627 |
| DEPRECIATION |
| At 1 April 2020 | 704,378 | 90,986 | 2,958,758 |
| Charge for year | 58,852 | 11,223 | 336,146 |
| At 31 March 2021 | 763,230 | 102,209 | 3,294,904 |
| NET BOOK VALUE |
| At 31 March 2021 | 122,534 | 74,195 | 1,390,723 |
| At 31 March 2020 | 179,353 | 22,912 | 1,633,973 |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Improvements | Fixtures |
| to | Plant and | and |
| property | machinery | fittings | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 April 2020 |
| and 31 March 2021 | 170,942 | 55,126 | 63,844 | 289,912 |
| DEPRECIATION |
| At 1 April 2020 | 5,691 | 5,146 | 4,182 | 15,019 |
| Charge for year | 12,260 | 6,764 | 12,769 | 31,793 |
| At 31 March 2021 | 17,951 | 11,910 | 16,951 | 46,812 |
| NET BOOK VALUE |
| At 31 March 2021 | 152,991 | 43,216 | 46,893 | 243,100 |
| At 31 March 2020 | 165,251 | 49,980 | 59,662 | 274,893 |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2021 |
| 11. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 April 2020 |
| and 31 March 2021 |
| NET BOOK VALUE |
| At 31 March 2021 |
| At 31 March 2020 |
| The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
| Subsidiaries |
| ROX (UK) Limited |
| Registered office: 42-43 Argyle Arcade, Glasgow, G2 8BG |
| Nature of business: Retail jewellers |
| % |
| Class of shares: | holding |
| Ordinary | 100.00 |
| North Diamonds (UK) Limited |
| Registered office: Riversleigh, 9 Kilwinning Road, Irvine, KA12 8RR |
| Nature of business: Non trading |
| % |
| Class of shares: | holding |
| Ordinary | 100.00 |
| Just Cubic Limited |
| Registered office: Riversleigh, 9 Kilwinning Road, Irvine, KA12 8RR |
| Nature of business: Non trading |
| % |
| Class of shares: | holding |
| Ordinary | 100.00 |
| Dimanti Limited |
| Registered office: Riversleigh, 9 Kilwinning Road, Irvine, KA12 8RR |
| Nature of business: Non trading |
| % |
| Class of shares: | holding |
| Ordinary | 100.00 |
| 12. | STOCKS |
| Group |
| 31.3.21 | 31.3.20 |
| £ | £ |
| Stocks | 4,381,571 | 4,474,666 |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2021 |
| 13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.3.21 | 31.3.20 | 31.3.21 | 31.3.20 |
| £ | £ | £ | £ |
| Trade debtors | 5,401 | 4,811 |
| Amounts owed by group undertakings | - | - |
| Other debtors | 53,320 | 172,450 |
| Directors' current accounts | - | 100,394 | - | - |
| Tax | 50,853 | 50,853 |
| Prepayments and accrued income | 349,686 | 373,573 |
| 459,260 | 702,081 |
| 14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.3.21 | 31.3.20 | 31.3.21 | 31.3.20 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 16) | 1,066,937 | 1,069,793 |
| Other loans (see note 16) | 2,209 | 2,219 |
| Hire purchase contracts (see note 17) | 96,334 | 77,473 |
| Trade creditors | 2,037,851 | 3,296,351 |
| Tax | 54,188 | - |
| Social security and other taxes | 373,974 | 342,221 |
| Other creditors | 24,003 | 71,391 |
| Directors' current accounts | 77 | - | 77 | 77 |
| Accrued expenses | 286,434 | 296,861 |
| 3,942,007 | 5,156,309 |
| 15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group |
| 31.3.21 | 31.3.20 |
| £ | £ |
| Bank loans (see note 16) | 1,018,928 | 570,093 |
| Other loans (see note 16) | - | 2,209 |
| Hire purchase contracts (see note 17) | 64,749 | 131,333 |
| Accruals and deferred income | 329,666 | 372,666 |
| 1,413,343 | 1,076,301 |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2021 |
| 16. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group |
| 31.3.21 | 31.3.20 |
| £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank overdrafts | 799,271 | 997,386 |
| Bank loans | 267,666 | 72,407 |
| Other loans | 2,209 | 2,219 |
| 1,069,146 | 1,072,012 |
| Amounts falling due between one and two | years: |
| Bank loans - 1-2 years | 303,415 | 160,418 |
| Other loans - 1-2 years | - | 2,209 |
| 303,415 | 162,627 |
| Amounts falling due between two and five | years: |
| Bank loans - 2-5 years | 715,513 | 409,675 |
| 17. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 31.3.21 | 31.3.20 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 96,334 | 77,473 |
| Between one and five years | 64,749 | 131,333 |
| 161,083 | 208,806 |
| Group |
| Non-cancellable operating | leases |
| 31.3.21 | 31.3.20 |
| £ | £ |
| Within one year | 889,328 | 1,083,491 |
| Between one and five years | 3,550,000 | 942,000 |
| In more than five years | 2,057,582 | 4,066,817 |
| 6,496,910 | 6,092,308 |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2021 |
| 18. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group |
| 31.3.21 | 31.3.20 |
| £ | £ |
| Bank overdraft | 799,271 | 997,386 |
| Bank loans | 1,286,594 | 642,500 |
| Hire purchase contracts | 161,083 | 208,806 |
| 2,246,948 | 1,848,692 |
| The company has provided a Floating Charge over all assets and undertakings of the company to HSBC Bank plc. |
| The group has provided a Multilateral Guarantee to HSBC Bank plc. |
| Hire purchase creditors are secured over the assets to which they relate. |
| 19. | PROVISIONS FOR LIABILITIES |
| Group |
| 31.3.21 | 31.3.20 |
| £ | £ |
| Deferred tax | 51,466 | 23,360 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 April 2020 | 23,360 |
| Charge to Income Statement during year | 28,106 |
| Movement |
| Balance at 31 March 2021 | 51,466 |
| 20. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.3.21 | 31.3.20 |
| value: | £ | £ |
| Ordinary Shares | £1 | 200,008 | 200,008 |
| Rosebank Holdings Limited (Registered number: SC288160) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 March 2021 |
| 21. | RESERVES |
| Group |
| Capital |
| Retained | redemption |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 April 2020 | 130,095 | 1,200,000 | 1,330,095 |
| Profit for the year | 275,987 | 275,987 |
| Dividends | (104,989 | ) | (104,989 | ) |
| At 31 March 2021 | 301,093 | 1,200,000 | 1,501,093 |
| 22. | PENSION COMMITMENTS |
| The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable to the group by the scheme and amounted to £38,387 (2020: £49,680). |
| 23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
| The following advances and credits to directors subsisted during the years ended 31 March 2021 and 31 March 2020: |
| 31.3.21 | 31.3.20 |
| £ | £ |
| K P H Keogh |
| Balance outstanding at start of year | 77,553 | 17 |
| Amounts advanced | - | 77,536 |
| Amounts repaid | (77,553 | ) | - |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | - | 77,553 |
| G L Mitchell |
| Balance outstanding at start of year | 22,918 | 17 |
| Amounts advanced | - | 22,901 |
| Amounts repaid | (22,918 | ) | - |
| Amounts written off | - | - |
| Amounts waived | - | - |
| Balance outstanding at end of year | - | 22,918 |
| 24. | ULTIMATE CONTROLLING PARTY |
| The ultimate controlling party is G L Mitchell. |