J. J. Rudell & Co. Limited - Limited company accounts 23.2

REGISTERED NUMBER: 01259624 (England and Wales)

J. J. RUDELL & CO. LIMITED

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 March 2023

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

to

5

Statement of Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

to

17

Directors:

S J Jones

P A Rudell

J Weston

Registered office:

5-6 Greenfield Crescent

Edgbaston

Birmingham

B15 3BE

Registered number:

01259624 (England and Wales)

Auditors:

Haines Watts Birmingham LLP

5-6 Greenfield Crescent

Edgbaston

Birmingham

West Midlands

B15 3BE

Bankers:

Barclays Bank Plc

1 Churchill Place

London

E14 5HP

The directors present their strategic report for the year ended 31 March 2023.

Business review and key performance indicators

We aim to present a balanced and comprehensive review of the performance and development of our business during the year ending 31 March 2023 and our position at the year end. Rudells continues to be a high-end retailer of Jewellery and watches. Our trading locations are within the UK at Wolverhampton and Harborne, Birmingham. The industry is still attracting good levels of domestic and overseas clients and remains a good trading market in general.

The directors or Rudells are satisfied that the business is a going concern. We continue to trade strongly and are constantly innovating in this competitive marketplace.

Financial performance

The company's key performance indicators for the year ended 31 March 2023 were sales and profitability. The company's performance was again very strong this year with sales of £14.4M vs £15.3M for the year ended 31 March 2022. This was achieved without an exceptional sale within the year ended 31 March 2021 accounts. Profits after tax were also again closely comparable at £2.1M vs £2.5M for the year ended 31 March 2022.

The additional general sales mix was encouraging with good additional business growth in many areas. General costs as expected increased; as did individual salaries. Stock levels increased marginally. The company's gross profit also increased to £5.5M vs £5.6M for the year ended 31 March 2022.

Our net assets grew from £12.1M to £13.3M, these include freehold property Wolverhampton and a long- term lease holding in Harborne.

Our borrowings are nil, placing us well for expansion plans we are considering.

Financial position

The company has a very strong financial position with good robust bank reserves. The employee's total was 31 at year end, we expect this to increase this year by 2-6 new employees this coming year. We continued to willingly build good close partnerships with flagship watch brands and our jewellery brand partners.

Principal risks and uncertainties

There are risks that exist relating to the renewal of distribution agreements. These are constant circumstances within our industry, we do all that is possible to maintain these in a productive healthy manner. The economy is a big influencing factor, interest rates, inflation and the feel-good factor of our clients. Again, we constantly adapt and change accordingly to combat these elements. Our risks relating to liquidity are very minimal.

Future developments

Future plans include expansion. We continue to refine, re-structure and remodel the showrooms, always remaining innovative, this is a constant occurrence and area of investment. We also continue to invest within our aftersales areas, our jewellery and watchmaking facilities are kept to a very high level. We continue to look at opportunities to develop new brands, expand our client portfolio and our website experience.

On behalf of the board:

J Weston - Director

10 August 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

Principal activity

The principal activity of the company in the year under review was that of retail jewellers.

Dividends

Dividends of £800,000 were paid during the year ended 31 March 2023.

Directors

The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

S J Jones

P A Rudell

J Weston

Statement of directors' responsibilities

The directors are responsible for preparing the 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Auditors

The auditors, Haines Watts Birmingham LLP, are deemed to be re-appointed under section 487(2) of the Companies Act 2006.

On behalf of the board:

J Weston - Director

10 August 2023

Opinion

We have audited the financial statements of J. J. Rudell & Co. Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 March 2023 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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 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 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or

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

-	certain disclosures of 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 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 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.

We obtained an understanding of the legal and regulatory framework applicable to both the company itself and the industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation.

We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included, but were not limited to:

-

making enquires of directors and management as to where they consider there to be a susceptibility to fraud and whether they have any knowledge or suspicion of fraud;

-

obtaining an understanding of the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

-

assessing the design effectiveness of the controls in place to prevent and detect fraud;

-

assessing the risk of management override including identifying and testing journal entries;

-

challenging the assumptions and judgements made by management in its significant accounting estimates.

Whilst our audit did not identify any significant matters relating to the detection of irregularities including fraud, and despite the audit being planned and conducted in accordance with ISAs (UK), there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity would likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

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.

Hannah Murphy ACA (Senior Statutory Auditor)

for and on behalf of Haines Watts Birmingham LLP

5-6 Greenfield Crescent

Edgbaston

Birmingham

West Midlands

B15 3BE

21 August 2023

Turnover

4

14,448,316

15,305,249

Cost of sales

(8,943,119

)

(9,666,298

)

Gross profit

5,505,197

5,638,951

Administrative expenses

(2,875,938

)

(2,585,782

)

2,629,259

3,053,169

Other operating income

2,100

6,690

2,631,359

3,059,859

Income from fixed asset investments

9,480

6,320

Interest receivable and similar income

64,964

991

Profit before taxation

6

2,705,803

3,067,170

Tax on profit

7

(627,728

)

(587,678

)

Profit for the financial year

2,078,075

2,479,492

Other comprehensive income

-

-

Total comprehensive income for the year

2,078,075

2,479,492

Fixed assets

Tangible assets

9

2,340,664

2,333,414

Investments

10

1

1

2,340,665

2,333,415

Current assets

Stocks

11

7,278,849

6,926,559

Debtors

12

192,856

180,247

Cash at bank

5,666,161

5,215,026

13,137,866

12,321,832

Creditors

Amounts falling due within one year

13

1,839,540

2,428,893

Net current assets

11,298,326

9,892,939

Total assets less current liabilities

13,638,991

12,226,354

Provisions for liabilities

15

303,681

169,119

Net assets

13,335,310

12,057,235

Capital and reserves

Called up share capital

16

28,347

28,347

Share premium

17

70,260

70,260

Revaluation reserve

17

377,292

377,292

Capital redemption reserve

17

1,153

1,153

Retained earnings

17

12,858,258

11,580,183

Shareholders' funds

13,335,310

12,057,235

The financial statements were approved by the Board of Directors and authorised for issue on 10 August 2023 and were signed on its behalf by:

J Weston - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 April 2021

28,347

9,450,691

70,260

Changes in equity

Dividends

-

(350,000

)

-

Total comprehensive income

-

2,479,492

-

Balance at 31 March 2022

28,347

11,580,183

70,260

Changes in equity

Dividends

-

(800,000

)

-

Total comprehensive income

-

2,078,075

-

Balance at 31 March 2023

28,347

12,858,258

70,260

Capital

Revaluation

redemption

Total

reserve

reserve

equity

£

£

£

Balance at 1 April 2021

377,292

1,153

9,927,743

Changes in equity

Dividends

-

-

(350,000

)

Total comprehensive income

-

-

2,479,492

Balance at 31 March 2022

377,292

1,153

12,057,235

Changes in equity

Dividends

-

-

(800,000

)

Total comprehensive income

-

-

2,078,075

Balance at 31 March 2023

377,292

1,153

13,335,310

Cash flows from operating activities

Cash generated from operations

1

1,952,330

4,298,428

Tax paid

(559,600

)

(150,348

)

Net cash from operating activities

1,392,730

4,148,080

Cash flows from investing activities

Purchase of tangible fixed assets

(245,691

)

(226,924

)

Sale of tangible fixed assets

92,166

-

Interest received

64,964

991

Dividends received

9,480

6,320

Net cash from investing activities

(79,081

)

(219,613

)

Cash flows from financing activities

Amount introduced by directors

-

3,441

Amount withdrawn by directors

(62,514

)

-

Equity dividends paid

(800,000

)

(350,000

)

Net cash from financing activities

(862,514

)

(346,559

)

Increase in cash and cash equivalents

451,135

3,581,908

Cash and cash equivalents at beginning of year

2

5,215,026

1,633,118

Cash and cash equivalents at end of year

2

5,666,161

5,215,026

1.	Reconciliation of profit before taxation to cash generated from operations

2023

2022

£

£

Profit before taxation

2,705,803

3,067,170

Depreciation charges

172,996

160,018

Profit on disposal of fixed assets

(26,721

)

-

Finance income

(74,444

)

(7,311

)

2,777,634

3,219,877

(Increase)/decrease in stocks

(352,290

)

380,250

Decrease/(increase) in trade and other debtors

2,019

(9,559

)

(Decrease)/increase in trade and other creditors

(475,033

)

707,860

Cash generated from operations

1,952,330

4,298,428

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 2023

31/3/23

1/4/22

£

£

Cash and cash equivalents

5,666,161

5,215,026

Year ended 31 March 2022

31/3/22

1/4/21

£

£

Cash and cash equivalents

5,215,026

1,633,118

3.	Analysis of changes in net funds

At 1/4/22

Cash flow

At 31/3/23

£

£

£

Net cash

Cash at bank

5,215,026

451,135

5,666,161

5,215,026

451,135

5,666,161

Total

5,215,026

451,135

5,666,161

1.	Statutory information

J. J. Rudell & Co. 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 Company Information page.

2.	Accounting policies

Basis of preparing the financial statements

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

Going concern

The directors continue to adopt the going concern basis in preparing the financial statements as it is their belief that company has adequate resources and support to continue in operational existence for the foreseeable future. In making this assessment the directors have considered a period of at least 12 months from the date of approval of these financial statements.

Turnover

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

Tangible fixed assets

All fixed assets are initially recorded at cost or valuation less accumulated depreciation and accumulated impairment losses.

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 shorter.

Freehold property

- 1.5% on revalued amount

Long term leasehold property

- Written off in equal installments over the lease from the date of acquisition

Leasehold improvements

- 7% on cost

Fixtures and fittings

- 15% reducing balance

Motor vehicles

- 25% straight line basis

Computer equipment

- 20% straight line basis

The Company has elected to adopt a 'deemed cost' value at the date of transition in the year ended 31 March 2016. This reflects the value of tangible assets under the previous revaluation policy under UK GAAP at the date of transition (1 March 2014). The Company will no longer apply the revaluation model under FRS 102 ( as it previously did under UK GAAP) and will hold assets at the deemed cost and depreciate them over their useful economic lives. Revaluations will no longer be performed.

On transition, the revaluation reserve remains in accordance with Companies Act 2006. Tangible assets are tested for impairment when an indicator of impairment is identified. 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. Any impairment of the carrying value is charged to the income statement. Impairment charges through the income statement relating to previously revalued assets are subsequently transferred from the profit and loss to the revaluation reserve.

Stocks

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 purchases on a first in first out basis.

At each balance sheet 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Valuation of investments

Investments in unlisted company shares, whose market value cannot be reliably determined, are stated at historical cost less impairment.

3.	Critical accounting judgements and key sources of estimation uncertainty

Preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets, liabilities, revenues and expenses.

The estimates and associated assumptions are based on historic experiences and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities and are not readily apparent from other sources. Actual results may differ from these estimates. The judgements, estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are:

Stock

Certain factors could affect the realisable value of the Company's stocks, including customer demand and market conditions. The Company considers anticipated sale price, product obsolescence and other factors when evaluating the value.

Tangible fixed assets depreciation

Tangible fixed assets are depreciated over their useful economic lives taking into account residual values where appropriate. The actual lives of these assets are assessed annually and may vary depending on a number of factors.

4.

Turnover

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023

2022

£

£

United Kingdom

14,408,000

12,606,162

Europe

15,534

2,203,221

Asia

24,782

495,866

14,448,316

15,305,249

5.	Employees and directors

2023

2022

£

£

Wages and salaries

1,439,734

1,335,799

Social security costs

175,338

146,553

Other pension costs

44,253

37,906

1,659,325

1,520,258

The average number of employees during the year was as follows:

2023

2022

Management

9

9

Admin

6

5

Direct

16

16

31

30

2023

2022

£

£

Directors' remuneration

519,663

441,306

Directors' pension contributions to money purchase schemes

25,177

19,000

Information regarding the highest paid director is as follows:

2023

2022

£

£

Emoluments etc

198,794

170,147

Pension contributions to money purchase schemes

-

12,000

6.	Profit before taxation

The profit is stated after charging/(crediting):

2023

2022

£

£

Other operating leases

98,674

95,261

Depreciation - owned assets

172,996

160,018

Profit on disposal of fixed assets

(26,721

)

-

Auditors' remuneration

9,000

8,296

Foreign exchange differences

350

2,736

Auditors' remuneration - non-audit services

7,631

5,468

7.

Taxation

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2023

2022

£

£

Current tax:

UK corporation tax

500,882

567,316

Under/(over) provision of

Corporation Tax in previous

year

(7,716

)

-

Total current tax

493,166

567,316

Deferred tax

134,562

20,362

Tax on profit

627,728

587,678

UK corporation tax has been charged at 19% (2022 - 19%).

Reconciliation of total tax charge 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:

2023

2022

£

£

Profit before tax

2,705,803

3,067,170

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 - 19%)

514,103

582,762

Effects of:

Expenses not deductible for tax purposes

8,492

14,972

Income not taxable for tax purposes

(1,801

)

(1,201

)

Capital allowances in excess of depreciation

(14,835

)

(29,217

)

Adjustments to tax charge in respect of previous periods

(7,716

)

-

Profit on disposal of assets

(5,077

)

-

Deferred tax movement

134,562

20,362

Total tax charge

627,728

587,678

Factors the may effect future tax charges

The main rate of corporation tax in force at the Statement of Financial Position date was 19%. A resolution to amend the corporation tax rate from 1 April 2023 was passed on 3 March 2021, at which point the main rate of corporation tax will increase to 25%. A small profits rate of 19% for companies with profits not exceeding £50k will take effect from the same date.

The deferred taxation balance has therefore been calculated at 25%, being the rate substantively enacted at the Statement of Financial Position date.

8.

Dividends

2023

2022

£

£

Ordinary shares of £1 each

Interim

800,000

350,000