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Registered number: 05230353
RICHMOND GROUP LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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RICHMOND GROUP LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditors
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First Floor South
101 New Cavendish Street
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RICHMOND GROUP LIMITED
CONTENTS
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Independent auditors' report
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Consolidated statement of profit or loss and other comprehensive income
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Consolidated statement of financial position
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Company statement of financial position
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Consolidated statement of changes in equity
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Company statement of changes in equity
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Consolidated statement of cash flows
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Notes to the consolidated financial statements
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Company detailed profit and loss account and summaries
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RICHMOND GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022
During the year, the Group has maintained its financial stability and has adequate liquidity to continue operating, to provide support for its group activities, and for future development plans.
Financial key performance indicators
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The Group's management tracks a range of financial and non-financial measures.
The net asset position increased 1.7% to £542.9m in 2022 compared to £533.8m in the prior year.
Revenue was at £14.8m for 2022 compared to £35.1m in 2021, this was in line with the Group's expectations due to restructuring of the group and the sale of certain Group assets.
Profit before tax was £30.8m in 2022 compared to -£53.2m in 2021.
Principal risks and uncertainties
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The Group's senior management team meets on a regular basis and considers the nature and management of key risks faced by the business.
Credit Risk
The Group maintains a mixture of liquid and illiquid investments to ensure that the Group has sufficient available funds for planned and opportunistic investment.
Market Risk
The Group operates under its own working capital and has no substantial borrowings and operates across diversified markets. The Board continually assesses the markets in which it operates and makes adjustments as needed to protect the long term sustainability of the Group.
Regulatory Risk
The Group has geographically diversified investments across various sectors to ensure that a substantial change in the regulatory environment would have a limited impact. The regulatory landscape is continually assessed by the Board.
Viability
The Group's senior management team have made an assessment in preparing these financial statements as to whether the Group is a going concern and have concluded that there are no material uncertainties that may cast doubt on the Group's ability to continue as a going concern.
In making its assessment, the Group took account of risks above as well as the macroeconomic risks.
The Group has concluded that the Company and the Group have adequate resources and will continue to operate and meet their liabilities as they fall due over the period of their assessment. The Group therefore adopts the going concern basis in preparing these financial statements.
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RICHMOND GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
A director's duties are detailed in Section 172 of the UK Companies Act 2006 which is summarised as follows:
A director of a company must act in the way he considers, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders, and in doing so have regard (amongst other matters) to:
(a) explain the key business decisions taken in the year, the stakeholders impacted and the engagement with them that took place.
(b) the interests of the company's employees
(c) the need to foster the company's business relationships with suppliers, customers, and others
(d) the impact of the company's operations on the community and the environment
(e) the desirability of the company maintaining a reputation for high standards of business conduct, and
(f) the need to act fairly between shareholders of the company.
In a director-owned business such as Richmond Group, the director fulfils his by ensuring that investment decisions are analysed thoroughly by the Board prior to the investment decision and that existing investment’s performance are reviewed on an ongoing basis by the Board. When making investment decisions these are generally considered over the long term. When considering our operations and changes we consider the community and the environment. We are continually improving our systems so that we can scale with a smaller operational footprint which will have a smaller environmental impact.
The following paragraphs summarise how the director fulfils these duties:
Key business decisions
In late 2021 the decision was made to dispose of some of the Group's international assets to a third party. The Group achieved this goal by the end of the 2022 financial year.
Long-term decision making
As a director-owned business, the director is always mindful of the long-term sustainability of the company when making decisions about risk. The director and his senior management team constantly identify, evaluate, manage, and mitigate the risks faced by the company and the details of the principal risks and uncertainties are set out elsewhere in this report.
Interests of the company's employees
The director is committed to running a responsible business. The culture of the company is aligned with the expectations of its employees, customers, and communities. People are at the heart of the business and the company aims to manage the performance of its employees whilst developing and bringing through talent to operate as efficiently as possible and achieve success.
Business relationships
The director's strategy prioritises organic growth driven by maximising relationships within the sectors in which the Group operates. This is achieved by developing and maintaining strong customer and supplier relationships.
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RICHMOND GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Community and environment
The director's approach is to create positive change for people and those communities with which the Group interacts.
Richmond Group Ltd is 100% owned and controlled by the director, J Benamor, and is the parent company for subsidiaries, as detailed in the Notes to the Financial Statements.
This report was approved by the board and signed on its behalf.
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RICHMOND GROUP LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2022
The director presents his report and the financial statements for the year ended 31 March 2022.
Director's responsibilities statement
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The director is responsible for preparing the Group strategic report, Director's report and the consolidated financial statements, in accordance with applicable law.
Company law requires the director to prepare consolidated financial statements for each financial year. Under that law the director has elected to prepare the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK.
Under company law the director must not approve the consolidated financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that period. In preparing the consolidated financial statements, the director is required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgments and estimates that are reasonable and prudent;
∙state whether they have been prepared in accordance with IFRS as adopted by the UK, subject to any material departures disclosed and explained in the financial statements;
∙assess the Group and Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
∙use the going concern basis of accounting unless the director either intends to liquidate the Group or the Company or to cease operations, or has no realistic alternative but to do so.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the parent Company's transactions and disclose with reasonable accuracy at any time the financial position of the parent Company and enable them to ensure that the financial statements comply with the Companies Act 2006. The director is responsible for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and has general responsibility for taking such steps as are reasonably open to the director to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.
The principal activities of the group during the year was executing the private capital investment strategy of the single family office.
The profit for the year, after taxation and minority interests, amounted to £29 million (2021 - loss £60 million).
The director who served during the year was:
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RICHMOND GROUP LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Disclosure of information to auditors
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The director at the time when this Director's report is approved has confirmed that:
∙so far as is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and
∙ has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.
The auditors, Harris & Trotter LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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RICHMOND GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RICHMOND GROUP LIMITED
We have audited the financial statements of RICHMOND GROUP LIMITED (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2022 which comprise the Consolidated statement of profit or loss and other comprehensive income, the Consolidated statement of financial position, the Company Statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company Statement of changes in equity and the related notes, including a summary of significant accounting policies set out on pages 21 - 32. The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.
In our opinion:
∙the financial statements give a true and fair view of the state of the Group's and the parent Company's affairs as at 31 March 2022 and of the Group's profit for the year then ended;
∙the Group financial statements have been properly prepared in accordance with IFRSs as adopted by the United Kingdom; and
∙the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
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 and the parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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
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In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the director's assessment of the Group's and the parent Company's ability to continue to adopt the going concern basis of accounting included:
• A review of management going concern considerations including testing the assumptions of a going concern report.
• Reviewing current cash and investment holdings to ensure the company has the ability to pay debtors.
• A consideration of post year end events and whether these have a material impact on the Group's going concern status.
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 or 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 director with respect to going concern are described in the relevant sections of this report.
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RICHMOND GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RICHMOND GROUP LIMITED (CONTINUED)
The other information comprises the information included in the Annual report, other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual report. 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. 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 course of 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.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Director's report has been prepared in accordance with applicable legal requirements.
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RICHMOND GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RICHMOND GROUP LIMITED (CONTINUED)
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 Director's report.
We have nothing to report in respect of the following matters in relation to which 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 director's 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 director's responsibilities statement on page 4, the director is 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 director determines is 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 director is 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 director either intends 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 an auditors' report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• We obtained an understanding of the legal and regulatory frameworks applicable to the company and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS 102, the Companies Act 2006 and Health and Safety at Work Act.
• We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making enquiries of management.
• We challenged assumptions and judgments made by management in its significant accounting estimates.
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RICHMOND GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF RICHMOND GROUP LIMITED (CONTINUED)
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 auditors' report.
N Newman (Senior statutory auditor)
for and on behalf of
Harris & Trotter LLP
Chartered Accountants & Statutory Auditors
First Floor South
101 New Cavendish Street
London
W1W 6XH
12 October 2023
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RICHMOND GROUP LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
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Profit/(loss) from discontinued operations
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Other investment gains/(losses)
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Profit/(loss) for the year
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Other comprehensive income:
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Items that will not be reclassified to profit or loss:
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Items that will or may be reclassified to profit or loss:
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Exchange gains arising on translation on foreign operations
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Other comprehensive income for the year, net of tax
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Total comprehensive income
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RICHMOND GROUP LIMITED
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Profit/(loss) for the year attributable to:
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Non-controlling interests
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Total comprehensive income attributable to:
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Non-controlling interests
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The notes on pages 21 to 61 form part of these financial statements.
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RICHMOND GROUP LIMITED
REGISTERED NUMBER: 05230353
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
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Property, plant and equipment
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Other non-current investments
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Trade and other receivables
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Trade and other receivables
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Cash and cash equivalents
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Trade and other liabilities
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RICHMOND GROUP LIMITED
REGISTERED NUMBER: 05230353
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2022
Issued capital and reserves attributable to owners of the parent
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The financial statements on pages 10 to 61 were approved and authorised for issue by the board of director and were signed on its behalf by:
The notes on pages 21 to 61 form part of these financial statements.
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RICHMOND GROUP LIMITED
REGISTERED NUMBER: 05230353
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2022
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Property, plant and equipment
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Other non-current investments
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Trade and other receivables
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Trade and other receivables
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Cash and cash equivalents
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Trade and other liabilities
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RICHMOND GROUP LIMITED
REGISTERED NUMBER: 05230353
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2022
Issued capital and reserves attributable to owners of the parent
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The Company's profit for the year was £10.3M (2021 - loss £13.0M).
The financial statements on pages 10 to 61 were approved and authorised for issue by the board of director and were signed on its behalf by:
The notes on pages 21 to 61 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
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Total attributable to equity holders of parent
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Total comprehensive income for the year
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Foreign currency translation
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Disposal of shares in subsidiary to non-controlling interest
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Total contributions by and distributions to owners
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
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Total comprehensive income for the year
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Foreign currency translation
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Total contributions by and distributions to owners
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The notes on pages 21 to 61 form part of these financial statements.
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
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Total comprehensive income for the year
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Transfers between other reserves
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Total contributions by and distributions to owners
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Total comprehensive income for the year
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Total contributions by and distributions to owners
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The notes on pages 21 to 61 form part of these financial statements.
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RICHMOND GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
Cash flows from operating activities
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Profit/(loss) for the year
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Depreciation of property, plant and equipment
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Other adjustments to property, plant and equipment
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Interest accrued on loan book
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Unrealised gains on financial instruments
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Provision discount unwound
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Revaluation of investment
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Loss on sale of discontinued operations, net of tax
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Write off of IFRS 9 Adjustment
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Decrease in deferred broker costs
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Complaints interest refunds
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Movements in working capital:
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Increase in trade and other receivables
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Increase in trade and other payables
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Cash generated from operations
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Net cash from operating activities
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RICHMOND GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Cash flows from investing activities
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Proceeds on disposal of subsidiaries, net of cash derecognised
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Purchases of property, plant and equipment
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Payments for investment property
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Acquisition of investment
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Proceeds on disposal of investments
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Proceeds on disposal of other financial assets
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Net cash used in investing activities
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Cash flows from financing activities
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Net cash used in financing activities
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Net (decrease)/increase in cash and cash equivalents
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Cash and cash equivalents at the beginning of year
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Exchange gains/(loss) on cash and cash equivalents
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Cash and cash equivalents at the end of the year
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The notes on pages 21 to 61 form part of these financial statements.
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RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Richmond Group Limited (the 'Company') is a limited company incorporated in England and Wales. The Company's registered office is at Walton House,, 56-58 Richmond Hill,, Bournemouth, BH2 6EX. These consolidated financial statements comprise the Company and its subsidiaries (collectively the 'Group' and individually 'Group companies'). The Group is primarily involved in executing the private capital investment strategy of the single family office.
2.Accounting policies
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Basis of preparation of financial statements
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The Group's financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the EU and the Companies Act 2006.
The Company financial statements have been prepared in accordance with UK accounting standards, including FRS101 Reduced Disclosure Framework.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
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RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries. Control is achieved when the Company:
∙has power over the investee;
∙is exposed, or has rights, to variable returns from its involvement with the investee; and
∙has the ability to use its power to affect its returns.
The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.
When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including:
∙the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders;
∙potential voting rights held by the Company, other vote holders or other parties;
∙rights arising from other contractual arrangements; and
∙any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at this time that decisions need to be made, including voting patterns at previous shareholders' meetings.
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.
Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the non-controlling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies.
All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.
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RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
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Basis of consolidation (continued)
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Changes in the Group's ownership interests in existing subsidiaries
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Changes in the Group's ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group's interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the Company.
When the Group loses control of a subsidiary, a gain or loss is recognised in profit or loss and its calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. All amounts previously recognised in other comprehensive income in relation to that subsidiary are accounted for as if the Group had directly disposed of the related assets or liabilities of the subsidiary (i.e. reclassified to profit or loss or transferred to another category of equity as specified/permitted by applicable IFRSs). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent account under IAS 39, when applicable, the cost on initial recognition of an investment in an associate or a joint venture.
The director has made an assessment in preparing the financial statements as to whether the Group is a going concern. At the year end, the Group had net current assets of £319.3M (2021: £394.8M) ,including cash balances of £272.2M (2021: £365.2M).
After reviewing the Group's current resources and funding and future plans the director has a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore adopts the going concern basis in preparing its financial statements.
Revenue comprises interest or fee income on amounts receivable from customers and rental income.
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RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
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Amounts receivable from customers
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(i) Classification
IFRS 9 requires a classification and measurement approach for financial assets which reflects how the assets are managed and their cash flow characteristics. IFRS 9 includes three classification categories for financial assets: measured at amortised cost, fair value through other comprehensive income (FVOCI) and fair value through profit and loss (FVTPL). The Group holds several financial assets that are equity investments, therefore the below considerations of classification and measurement apply to all financial assets and not only those that are debt instruments. A financial asset is measured at amortised cost if it meets both of the following conditions (and is not designated as at FVTPL):
It is held within a business model whose objective is to hold assets to collect contractual cashflows; and its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
In the assessment of the objective of a business model, the information considered includes:
The stated policies and objectives for the loan book and the operation of those policies in practice, in particular whether management's strategy focuses on earning contractual interest and fee revenue, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of the liabilities that are funding those assets or realising cash flows through the sale of the assets;
How the performance of the loan book is evaluated and reported to the Group's management including an understanding of the local economic and regulatory market;
The risks that affect the performance of the business model (and the financial assets held within that business model) and its strategy for how those risks are managed;
How managers of the business are compensated (e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected); and
The frequency, volume and timing of debt sales in prior periods, the reasons for such sales and the Group's expectations about future sales activity. However, information about sales activity is not considered in isolation, but as part of an overall assessment of how the Group's stated objective for managing the financial assets is achieved and how cash flows are realised.
Part of the Group's business comprises loans to customers that are held for collecting contractual cash flows.
Assessment of whether contractual cash flows are solely payments of principal and interest
For the purposes of this assessment, "principal" is defined as the fair value of the financial asset on initial recognition. "Interest" is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time, as well as profit margin.
In assessing whether the contractual cash flows are solely payments of principal, fees and interest (SPPI), the Group considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. The Group has deemed that the contractual cash flows are SPPI and hence, loans to customers are measured at amortised cost under IFRS 9.
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RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
ii) Impairment
IFRS 9 includes a forward-looking "expected credit loss" (ECL) model in regards to impairment. IFRS 9 requires an impairment provision to be recognised on origination of a financial asset. Under IFRS 9, a provision is made against all stage 1 (defined below) financial assets to reflect the expected credit losses from default events within the next twelve months. The application of lifetime ECL to assets which have experienced a significant increase in credit risk results in an uplift to the impairment provision.
iii) Measurement of Expected Credit Losses (ECL)
Under IFRS 9 financial assets fall into one of three categories:
Stage 1 - Financial assets which have not experienced a "significant" increase in credit risk since initial recognition;
Stage 2 - Financial assets that are considered to have experienced a "significant" increase in credit risk since initial recognition; and
Stage 3 - Financial assets which are in default or otherwise credit impaired. Loss allowances for stage 1 financial assets are based on twelve month ECLs, that is the portion of ECLs that result from default events that are estimated within twelve months of the reporting date and are recognised from the date of asset origination.
Loss allowances for stage 2 and 3 financial assets are based on lifetime ECLs, which are the ECLs that result from all estimated default events over the expected life of a financial instrument.
iv) Measurement of ECLs
In substance the borrower and the guarantor of each financial asset have equivalent responsibilities. Hence for each loan there are two obligors to which the entity has equal recourse. This dual borrower nature of the product is a key consideration in determining the staging and the recoverability of an asset.
The Group takes appropriate measures to ensure that there are low loss rates and keep in line with local regulation.
v) Assessment of significant increase in credit risk (SICR)
Management didn't feel that additional changes to our provision approach was required and this was heavily supported by the data.
vi) Derecognition and Modification
The Group does not currently offer top ups or formal modifications to loans. In some instances, forbearance measures are offered to customers. These are not permanent measures; there are no changes to the customer's contract and the measures do not meet derecognition or modification requirements.
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RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
vii) Definition of default
The definition of default varies across the businesses in line with local regulation. An account is generally always considered in default if it is more than three contractual payments past due, i.e. greater than 61 days, which is a more prudent approach than the rebuttable presumption in IFRS 9 of 90 days and has been adopted to align with internal operational procedures. The Group reassesses the status of loans at each month end on a collective basis.
When the arrears status of an asset improves so that it no longer meets the default criteria for that portfolio, it is cured and transitions back from stage 3.
viii) Forbearance
Where the borrower indicates to the Group that they are unable to bring the account up to date, informal, temporary forbearance measures may be offered. There are no changes to the customer's contract at any stage. Therefore, these changes are neither modification nor derecognition events.
Business to Business Loans:
As each loan is individually significant and has different characteristics they are assessed individually rather than on a group basis. Provision is made using management's judgment based upon the expected future cash flows that will be recovered where there is an indication of a significant increase in credit risk at the reporting date.
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RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Income tax expense represents the sum of the tax currently payable and deferred tax.
(i) Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the Statement of profit or loss and other comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
(ii) Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.
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RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
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Property, plant and equipment
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Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.
Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates:
Included within other property, plant and equipment is an Allosaurus skeleton with a cost of £2.8M. Management have taken the decision not to depreciate this asset due to its unlimited useful life, in addition to the fact that its resale value will not decrease over time.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
Depreciation methods, useful lives and residual values are reviewed at each Consolidated Statement of Financial Position date.
Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at fair value. All of the Group's property interests held under operating leases to earn rentals or for capital appreciation purposes are accounted for as investment properties and are measured using the fair value model. Gains and losses arising from changes in the fair value of investment properties are included in profit or loss in the period in which they arise.
An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognised.
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RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
Investments in equity instruments are measured initially at fair value, which is normally the transaction price. Transaction costs are excluded if the investments are subsequently measured at fair value through the profit and loss.
After initial recognition, investments that can be measured reliably are measured at fair value with changes in recognition in profit or loss. Other investments are measured at cost less impairment in profit or loss.
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Impairment of tangible and intangible assets other than goodwill
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At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease (see note 2.7).
When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. The impact of ECLs on cash has been evaluated and it is immaterial.
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RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
Financial assets
The Group primarily enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities, the most significant being cash at bank, amounts receivable from customers, and loans to related parties.
a) Other receivables
Other receivables relating to loans and amounts owed by parent and subsidiary undertakings are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value plus transaction costs and are measured subsequently at amortised cost using the effective interest method, less any impairment. Loans and amounts owed by parent and subsidiary undertakings are unsecured, have no fixed repayment date and are repayable on demand and interest on such balances is accrued on an arm's length basis. The impact of ECLs on other receivables has been evaluated and it is immaterial.
b) Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when:
• the rights to receive cash flows from the asset have expired; or
• the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a "pass-through" arrangement and either:
the Group has transferred substantially all the risks and rewards of the asset; or
the Group has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset.
c) Write-off
Loans are written off the balance sheet when an account is six contractual payments past due, as at this point it is deemed that there is no reasonable expectation of recovery. When there is recovery on written-off debts or when cash is received from the third-party purchaser on the legal purchase date, recoveries are recognised in the income statement within the impairment charge.
For charged-off debts that are placed with a third party in exchange for a commission on recoveries, but are still legally owned by the Group, an asset has been recognised within other receivables, being the net present value of expected future cash flows, discounted at the effective interest rate of the initial loans. A corresponding liability for commission payments due to the third party is also recognised. The recognition of assets for post charge-off recoveries is recognised in the income statement within the impairment charge.
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RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
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Financial instruments (continued)
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Financial liabilities
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method.
Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.
However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Short term payables are measured at the transaction price.
Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
A financial liability is derecognised when the obligation under the liability is discharged, cancelled, or expired. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability. The difference between the carrying value of the original financial liability and the consideration paid is recognised in the Consolidated Statement of Comprehensive Income.
Equity instruments
Equity instruments issued by the parent company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer payable at the discretion of the company.
Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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Defined contribution schemes
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Contributions to defined contribution pension schemes are charged to the consolidated statement of comprehensive income in the year to which they relate.
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RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.Accounting policies (continued)
The Group and Company assesses whether a contract contains a lease at inception of a contract. A right of-use asset and a corresponding liability are recognised with respect to all lease arrangements where it is a lessee, except for short-term leases (leases with a lease term of twelve months or less) and leases of low-value assets. The right-of-use asset comprises the initial measurement of the corresponding lease liability and is subsequently measured at cost less accumulated depreciation and impairment losses. Right of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease, using the effective interest rate method, and reducing the carrying amount to reflect the lease payments made.
The lease liability is remeasured whenever:
• the lease term has changed, in which case the lease liability is remeasured by discounting the revised
lease payments using a revised discount rate;
• the lease payments change due to changes in an index or rate, in which case the lease liability is
remeasured by discounting the revised lease payments using the initial discount rate; and
• the lease contract is modified and the modification is not accounted for as a separate lease, in which
case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.
Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.
The assets and liabilities of foreign operations are translated from functional currency into GBP using exchange rates at the reporting date. The income and expenses of foreign operations are translated from functional currency into GBP using an average exchange rate for the reporting period.
Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity.
The predominant functional currency of the group's foreign operations as at 31 March 2022 was US Dollars.
Dividends are recognised when they become legally payable. In the case of interim dividends to equity shareholders, this is when declared by the directors. In the case of final dividends, this is when approved by the shareholders at the AGM.
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Functional and presentation currency
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These consolidated financial statements are presented in pound sterling, which is the Company's functional currency. All amounts have been rounded to the nearest million, unless otherwise indicated.
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RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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Accounting estimates and judgments
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4.1 Judgment
Measurement of Estimated Credit Losses (ECL)
Consumer loans
The Group's ECL methodology considers the collective estimated cash shortfalls for each credit risk portfolio based on forecast loss curves. Forecast loss curves are prepared on a risk segment basis for annual vintages and combine the Group's historical trends and management judgements. Internal Group trends are reviewed over 60 months for equivalent cohorts of assets, being the maximum contractual term for the product. No external information is used, aside from consideration of economic adjustments.
Business to Business Loans
As each loan is individually significant and has different characteristics they are assessed individually rather than on a group basis. Provision is made using management's judgement based upon the expected future cash flows that will be recovered where there is an indication of a significant increase in credit risk at the reporting date.
Assessment of significant increase in credit risk (SICR)
To determine whether there has been a significant increase in credit risk the following approaches have
been taken.
Consumer loans
The Group considers that a significant increase in credit risk occurs no later than when an asset is two contractual payments past due (equivalent to 30 days). This is the primary quantitative information considered by the Group in significant increase in credit risk assessments.
Business to business loans
Given that each loan has its own unique characteristics, SICR is based upon management judgement, their knowledge of the customer and current macro-economic conditions.
Effective interest rates
The key judgement applied in the effective interest rate calculation is the behavioural life of the loan and, to a lesser extent, the profile of loan payments over this period. The historical settlement profile of loans acquired from third-party brokers is used to estimate the average behavioural life of each monthly cohort of loans.
Settlements include both early settlements and top-ups (as appropriate) as they are considered derecognition events. The average behavioural life is then used to estimate the effective interest on broker originations and thus the amortisation profile of the deferred costs. The Group has different Annualised Percentage Rates and fees across the jurisdictions in which it operates. If a jurisdiction has more than one Annualised Percentage Rate, once the behavioural life is determined, the amortisation profile is identical for all loan terms and amounts with the same Annualised Percentage Rate and thus the application is accurate for all assets in each monthly cohort of each jurisdiction.
Broker commissions are incurred as a percentage of amounts paid out and not as a fixed fee per loan. Therefore, in determining the settlement profile of historical cohorts, settlement rates are pay-out weighted to accurately match the value of deferred costs with the settlement of loans.
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RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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The following is an analysis of the Group's revenue for the year from continuing operations:
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International guarantor backed loans
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Analysis of revenue by country of destination:
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Other investment gains/(losses)
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RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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During the year, the Group obtained the following services from the Company's auditors:
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Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
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Employee benefit expenses
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Employee benefit expenses (including director) comprise:
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The monthly average number of persons, including the director, employed by the Group during the year was as follows:
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RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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Employee benefit expenses (including director) comprise:
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Defined contribution pension cost
|
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The monthly average number of persons, including the director, employed by the Company during the year was as follows:
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The value of company's contribution paid to a defined contribution pension scheme in respect of director amounted to Nil (2021 - £16,667)
|
|
|
RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
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|
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10.1 Income tax recognised in profit or loss
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Current tax on profits for the year
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|
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Adjustments in respect of prior years
|
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Origination and reversal of timing differences
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Tax expense excluding tax on sale of discontinued operation and share of tax of equity accounted associates and joint ventures
|
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|
|
RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
10.Tax expense (continued)
|
|
10.1 Income tax recognised in profit or loss (continued)
|
|
|
The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to losses for the year are as follows:
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Profit/(loss) for the year
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Income tax expense (including income tax on associate, joint venture and discontinued operations)
|
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Profit/(loss) before income taxes
|
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Tax using the Company's domestic tax rate of 19% (2021:19%)
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|
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Expenses not deductible for tax purposes, other than goodwill, amortisation and impairment
|
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|
|
Utilisation of tax losses not previously recognised
|
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|
|
Depreciation, amortisation and (profit)/loss on sale of asset
|
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|
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Impact of disposal of subsidiary
|
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|
|
Adjustments to tax charge in respect of prior periods
|
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Dividends from UK companies
|
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|
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Fair market value and impairment adjustments
|
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|
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Movement in deferred tax asset not recognised
|
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|
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Other differences leading to an increase/(decrease) in the tax charge
|
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|
|
Net Non trading foreign fluctuation
|
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|
|
Net debits from Non trading loan relation per accounts
|
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|
|
|
|
Changes in tax rates and factors affecting the future tax charges
Effective April 1, 2023 the corporation tax rate will increase to 25% announced at the Spring Budget 2021 by the Government
|
|
RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
10.Tax expense (continued)
|
|
10.2 Current tax assets and liabilities
|
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Corporation tax repayable
|
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|
|
|
|
|
|
|
10.3 Deferred tax balances
|
|
|
The following is the analysis of deferred tax assets/(liabilities) presented in the consolidated statement of financial position:
|
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|
|
RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
|
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|
|
Dividends are recognised through equity, on the earlier of their approval by the Company's shareholders or their payment. 'The following dividends were declared and paid by the Company for the year.
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Interim dividend of 200 pence (2021: 300 pence) per Ordinary share paid during the year
|
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|
|
Interim dividend of 29 pence (2021: 400 pence) per Ordinary share paid during the year
|
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|
|
Interim dividend of 263 pence (2021: 200 pence) per Ordinary share paid during the year
|
|
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|
|
Interim dividend of 900 pence (2021: 1,260 pence) per Ordinary share paid during the year
|
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|
|
Interim dividend of 790 pence (2021: - pence) per Ordinary share paid during the year
|
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|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
|
|
Property, plant and equipment
|
|
|
|
|
|
|
|
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|
|
|
|
|
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|
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|
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|
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|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
13.Property, plant and equipment (continued)
|
|
|
Long-term leasehold property
|
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|
|
Accumulated depreciation and impairment
|
|
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|
|
|
|
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|
|
Charge owned for the year
|
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|
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Charge owned for the year
|
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|
|
|
|
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
13.Property, plant and equipment (continued)
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
Accumulated depreciation and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge owned for the year
|
|
|
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|
|
|
|
|
|
|
RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
|
|
|
|
|
|
|
(i) Non-current assets at fair value
|
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|
|
|
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|
|
|
The original cost of the investment properties was £2.8M. The director believes the fair value of the property is the carrying value due to the fact the properties were purchased towards the end of the year.
|
|
|
|
|
|
|
|
Accumulated amortisation and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
|
|
|
|
|
|
Accumulated amortisation and impairment
|
|
|
|
|
|
|
|
|
|
|
|
|
RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
|
|
|
Other non-current investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other fixed asset investments
|
|
|
|
|
|
|
|
|
|
Investments in subsidiary companies (See Note 17)
|
|
|
|
|
|
|
|
|
|
Other fixed asset investments
|
|
|
|
|
|
|
|
|
|
RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Details of the company's subsidiaries at 31 March 2022 are as follows:
|
|
RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
|
Trade and other receivables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current trade and other receivables
|
|
|
|
|
RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
18.Trade and other receivables (continued)
|
|
|
|
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current trade and other receivables
|
|
|
|
|
Amounts owed by Group undertakings
|
|
|
|
|
Amounts owed by Group undertakings
|
|
|
|
|
Total non-current trade and other receivables
|
|
|
|
|
|
|
|
|
|
Amounts owed by Group undertakings
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current trade and other receivables
|
|
|
|
|
RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
|
Total non-current trade and other payables
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other payables - tax and social security payments
|
|
|
|
|
Total current trade and other payables
|
|
|
|
|
|
|
|
Total non-current trade and other payables
|
|
|
|
|
|
|
|
|
|
|
|
|
Payables to related parties
|
|
|
|
|
|
|
|
|
|
Total current trade and other payables
|
|
|
|
|
RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
|
|
|
|
|
|
Ordinary shares shares of £1.00 each
|
|
|
|
|
|
|
|
|
|
Ordinary shares shares of £1.00 each
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of the year
|
|
|
|
|
Share of profit for the year
|
|
|
|
|
|
|
|
|
|
Additional non-controlling interests arising on disposal of interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
|
|
|
Financial instruments - fair values and risk management
|
|
|
|
22.1 Accounting classifications and fair values
|
|
|
|
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.
|
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
Financial assets not measured at fair value
|
|
|
|
|
|
|
|
|
|
Trade and other receivables
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
Corporate debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities not measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
22.Financial instruments - fair values and risk management (continued)
|
|
22.1 Accounting classifications and fair values (continued)
|
|
|
Financial assets not measured at fair value
|
|
|
|
|
|
|
|
|
|
Trade and other receivables
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
Corporate debt securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities not measured at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
|
Related party transactions
|
The Company has taken advantage of the exemption in FRS 101 para 8(k) from disclosing transactions with wholly owned subsidiaries of the group.
The following amounts were outstanding with non 100% owned subsidiaries as at the balance sheet date:
|
|
23.1 Loans to related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23.2 Loans from related parties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23.3 Other related party transactions
|
|
|
During the year, the Company entered into the following trading transactions with non 100% owned subsidiaries:
|
|
|
|
|
|
Related party relationship
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the year, Richmond Group Limited engaged in related party transactions with key management personnel whereby various loan book assets and subsidiaries were disposed of.
As at 31 March 2022, the total secured and unsecured balance owed from related parties was £35.62m. During the year a total of £21.5k of interest was charged to profit & loss in relation to this balance.
|
|
|
RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
The controlling party is Mr J Benamor by virtue of his 100% shareholding in the Company
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
|
|
RICHMOND GROUP LIMITED
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
|
|
|
|
Notes supporting statement of cash flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash at bank available on demand
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents in the statement of financial position
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents in the statement of cash flows
|
|
|
|
|
|
|
|
The Group is not subject to any externally imposed capital requirements.
|
|
