Resolute Corporate Holdings Limited - Limited company accounts 23.2
Resolute Corporate Holdings Limited - Limited company accounts 23.2
REGISTERED NUMBER: 06310774 (England and Wales) |
GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023 |
FOR |
RESOLUTE CORPORATE HOLDINGS LIMITED |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Directors' Report | 4 |
Independent Auditors' Report | 6 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Financial Statements | 14 |
RESOLUTE CORPORATE HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 AUGUST 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Mr Christopher Glen Bidgood |
AUDITORS: |
Chartered Certified Accountants |
Statutory Auditors |
Ingram House |
Meridian Way |
Norwich |
Norfolk |
NR7 0TA |
BANKERS: | Coutts & Co |
Ground Floor |
1 Broadland Business Park |
Norwich |
Norfolk |
NR7 0WF |
SOLICITORS: |
1 St James Court |
Whitefriars |
Norwich |
Norfolk |
NR3 1RU |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 AUGUST 2023 |
The directors present the Strategic Report of Resolute Corporate Holdings Limited (the "company") and its subsidiary undertakings (together the "group") for the year ended 31 August 2023. |
REVIEW OF THE BUSINESS |
The group manufactures a diverse portfolio of products made from flexible thermoplastic coated technical textiles using high-frequency fabric welding techniques, including tension lorry curtains and provides wide-format digital printing services as well as maintaining an investment property portfolio. |
Despite the continuing global economic uncertainties, there has been an improvement in the performance of the group during the year. Relationships have been maintained with key customers and new opportunities pursued as the group looks to grow its operations organically and consequently the directors consider the business to be in a good position for the new financial year and that the group will continue to operate as a going concern. |
FINANCIAL HIGHLIGHTS |
The group uses a range of performance measures to monitor and manage the business effectively. |
The key performance indicators (KPIs) for the group are turnover, gross profit and adjusted EBITDA. These are reviewed and monitored regularly. The adjusted EBITDA measure is used as this provides a comparable value of the underlying business before one off adjustments, statutory adjustments and non-recurring items. The KPIs for the year ended 31 August 2023 with comparatives for the year ended 31 August 2022 are as follows: |
2023 | 2022 |
£'000 | £'000 |
Turnover | 5,591 | 4,372 |
Gross profit | 1,747 | 1,364 |
Adjusted EBITDA | 450 | 127 |
Non-GAAP measure of adjusted EBITDA: |
Profit before tax | 208 | 789 |
Adjusted for: |
Net interest payable | 2 | 2 |
Loss/(gain) on revaluation of fixed assets | 5 | (770 | ) |
Share of operating profit in associates | (56 | ) | (55 | ) |
Depreciation and impairment losses | 276 | 220 |
Loss/(profit) on sale of fixed assets | 15 | (59 | ) |
450 | 127 |
FINANCIAL RISK MANAGEMENT |
The group is exposed to a variety of financial risks resulting from its operational activities. The group's risk management is coordinated with key management personnel, focusing on actively securing the group's short to medium term cash flows. |
Liquidity and credit risk |
The group funds the operational and working capital requirements through its retained profits. At 31 August 2023, the group had a cash balance which the directors believe is sufficient to maintain robust liquidity in the business as it continues to trade through the uncertainties in the global economy. The group reviews its working capital on a continual basis and goes through a rigorous periodic forecasting process to further analyse this. |
The group sells to most of its customers on customary credit terms and is, as a result, exposed to the usual credit risk and cash flow risk associated with this form of trading. It manages this risk through rigorous credit control procedures on a continual basis. |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 AUGUST 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks facing the group are: |
Economic climate risk |
The group has structured debt and as such the directors feel that the direct interest rate risk is minimal. However, with increasing levels of inflation and interest rates, there is general pressure on business investment and spending. The directors continue to monitor the raw material, utilities and labour costs and supply for the business and take these factors into consideration when making pricing decisions. |
Foreign exchange risk |
The directors closely monitor foreign exchange rates as the group's activities expose it to the risk of a weaker pound pushing up import prices. |
Human resource risk |
Failure to maintain a sufficiently skilled workforce and retain key staff can adversely affect any business. |
OUTLOOK AND FUTURE DEVELOPMENTS |
Whilst the group continues to be profitable with a strong order book, there is caution with higher interest rates and increased inflation which has had an effect on raw material and labour costs. |
ON BEHALF OF THE BOARD: |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 AUGUST 2023 |
The directors present their annual report and the audited consolidated financial statements of the group for the year ended 31 August 2023. |
PRINCIPAL ACTIVITIES |
The principal activity of the company during the year was that of a holding company. The principal activities of the group's subsidiaries were that of designing and manufacturing flexible plastic fabrications for the bulk materials industry, tension curtains for commercial vehicles, wide-format digital printing and the owning and letting of investment property. |
DIVIDENDS |
Particulars of dividends paid are detailed in note 13 to the financial statements. |
RESEARCH AND DEVELOPMENT |
The group undertakes a high level of research and development in order to maintain its market position and actively develops improvements or enhancements to its existing products. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 September 2022 to the date of this report. |
POLITICAL DONATIONS AND POLITICAL EXPENDITURE |
There were no political donations or political expenditure during the current and prior year. |
GOING CONCERN |
The directors recognise the uncertainty surrounding the economic and political environment that the world faces and have considered the financial impact that this may have on the business. |
However, with the current healthy financial position of the group and substantial unsecured assets available to provide access to external funding if required, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors have therefore prepared the financial statements on a going concern basis. |
POST BALANCE SHEET EVENTS |
There have been no significant events affecting the group since the year end. |
MATTERS INCLUDED IN THE GROUP STRATEGIC REPORT |
Details regarding a review of the business, including future developments, principal risk and uncertainties are provided in the Group Strategic Report on pages 2 to 3. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the group and company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company and of the profit or loss of the group and company for that period. In preparing the financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | state whether applicable United Kingdom Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | make judgements and accounting estimates that are reasonable and prudent; and |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business. |
The directors are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group and company's transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 AUGUST 2023 |
DIRECTORS' CONFIRMATIONS |
In the case of each director in office at the date the Directors' Report is approved: |
- | so far as the director is aware, there is no relevant audit information of which the group and company's auditors are unaware; and |
- | they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the group and company's auditors are aware of that information. |
AUDITORS |
CG LEE Limited, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with Section 487(2) of the Companies Act 2006 unless the company receives notice under Section 488(1) of the Act. |
ON BEHALF OF THE BOARD: |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
RESOLUTE CORPORATE HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Resolute Corporate Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 August 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Directors' 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 Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
RESOLUTE CORPORATE HOLDINGS LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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: |
- | enquiry of management and those charged with governance; |
- | review of accounting records to identify any indication of non-compliance with laws and regulations; |
- | reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and |
- | performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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. |
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 an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Certified Accountants |
Statutory Auditors |
Ingram House |
Meridian Way |
Norwich |
Norfolk |
NR7 0TA |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 AUGUST 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 5 | 5,591,333 | 4,372,168 |
Cost of sales | (3,844,654 | ) | (3,008,173 | ) |
GROSS PROFIT | 1,746,679 | 1,363,995 |
Administrative expenses | (1,713,300 | ) | (1,536,219 | ) |
33,379 | (172,224 | ) |
Other operating income | 6 | 124,193 | 138,432 |
Fair value movement in investment property | (4,712 | ) | 769,950 |
GROUP OPERATING PROFIT | 9 | 152,860 | 736,158 |
Share of operating profit in |
Associates | 56,175 | 55,024 |
Interest receivable and similar income | 4,476 | 2,250 |
213,511 | 793,432 |
Interest payable and similar expenses | 10 | (5,786 | ) | (4,565 | ) |
PROFIT BEFORE TAXATION | 207,725 | 788,867 |
Tax on profit | 11 | 254,130 | (245,919 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
461,855 |
542,948 |
Profit attributable to: |
Owners of the parent | 461,855 | 542,948 |
Total comprehensive income attributable to: |
Owners of the parent | 461,855 | 542,948 |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
CONSOLIDATED BALANCE SHEET |
31 AUGUST 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 14 | (4,923 | ) | (5,792 | ) |
Tangible assets | 15 | 3,695,050 | 3,179,947 |
Investments | 16 |
Interest in associate | 329,267 | 285,138 |
Investment property | 17 | 2,416,786 | 2,759,804 |
6,436,180 | 6,219,097 |
CURRENT ASSETS |
Stocks | 18 | 513,901 | 553,343 |
Debtors: amounts falling due within one year | 19 | 1,104,312 | 1,038,218 |
Investments | 20 | - | 220,140 |
Cash at bank and in hand | 904,836 | 804,202 |
2,523,049 | 2,615,903 |
CREDITORS |
Amounts falling due within one year | 21 | 1,177,467 | 1,289,932 |
NET CURRENT ASSETS | 1,345,582 | 1,325,971 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
7,781,762 |
7,545,068 |
CREDITORS |
Amounts falling due after more than one year |
22 |
(195,372 |
) |
- |
PROVISIONS FOR LIABILITIES | 25 | (210,907 | ) | (482,624 | ) |
NET ASSETS | 7,375,483 | 7,062,444 |
CAPITAL AND RESERVES |
Called up share capital | 26 | 13,116 | 13,116 |
Share premium | 27 | 985,276 | 985,276 |
Capital redemption reserve | 27 | 1,500 | 1,500 |
Non-distributable reserve | 27 | 653,576 | 741,588 |
Retained earnings | 27 | 5,722,015 | 5,320,964 |
SHAREHOLDERS' FUNDS | 7,375,483 | 7,062,444 |
The financial statements were approved by the Board of Directors and authorised for issue on 28 May 2024 and were signed on its behalf by: |
I S Doughty - Director |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
COMPANY BALANCE SHEET |
31 AUGUST 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 14 |
Tangible assets | 15 |
Investments | 16 |
Investment property | 17 |
CURRENT ASSETS |
Debtors: amounts falling due within one year | 19 |
Debtors: amounts falling due after more than one year |
19 |
Investments | 20 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 21 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 25 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 26 |
Share premium | 27 |
Capital redemption reserve | 27 |
Non-distributable reserve | 27 |
Retained earnings | 27 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 88,883 | 520,180 |
The financial statements were approved by the Board of Directors and authorised for issue on |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 AUGUST 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 September 2021 | 13,116 | 5,499,338 | 985,276 |
Changes in equity |
Profit for the year | - | 542,948 | - |
Total comprehensive income | - | 542,948 | - |
Transfer of revaluation | - | (769,950 | ) | - |
Deferred tax movement | - | 180,935 | - |
Dividends | - | (132,307 | ) | - |
Balance at 31 August 2022 | 13,116 | 5,320,964 | 985,276 |
Changes in equity |
Profit for the year | - | 461,855 | - |
Total comprehensive income | - | 461,855 | - |
Realised gain on disposals | - | 97,235 | - |
Transfer of revaluation | - | 4,712 | - |
Deferred tax movement | - | (13,935 | ) | - |
Dividends | - | (148,816 | ) | - |
Balance at 31 August 2023 | 13,116 | 5,722,015 | 985,276 |
Capital |
redemption | Non-distributable | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 September 2021 | 1,500 | 152,573 | 6,651,803 |
Changes in equity |
Profit for the year | - | - | 542,948 |
Total comprehensive income | - | - | 542,948 |
Transfer of revaluation | - | 769,950 | - |
Deferred tax movement | - | (180,935 | ) | - |
Dividends | - | - | (132,307 | ) |
Balance at 31 August 2022 | 1,500 | 741,588 | 7,062,444 |
Changes in equity |
Profit for the year | - | - | 461,855 |
Total comprehensive income | - | - | 461,855 |
Realised gain on disposals | - | (97,235 | ) | - |
Transfer of revaluation | - | (4,712 | ) | - |
Deferred tax movement | - | 13,935 | - |
Dividends | - | - | (148,816 | ) |
Balance at 31 August 2023 | 1,500 | 653,576 | 7,375,483 |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 AUGUST 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 September 2021 |
Changes in equity |
Total comprehensive income | - | - |
Transfer of revaluation | - | (620,000 | ) | - |
Deferred tax movement | - | 151,654 | - |
Dividends | - | ( |
) | - |
Balance at 31 August 2022 |
Changes in equity |
Total comprehensive income | - | - |
Deferred tax movement | - | 3,345 | - |
Dividends | - | ( |
) | - |
Balance at 31 August 2023 |
Capital |
redemption | Non-distributable | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 September 2021 |
Changes in equity |
Total comprehensive income |
Transfer of revaluation | - | 620,000 | - |
Deferred tax movement | - | (151,654 | ) | - |
Dividends | - | - | ( |
) |
Balance at 31 August 2022 |
Changes in equity |
Total comprehensive income |
Deferred tax movement | - | (3,345 | ) | - |
Dividends | - | - | ( |
) |
Balance at 31 August 2023 |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 AUGUST 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 32 | 487,140 | 234,346 |
Interest element of finance lease payments paid |
(4,514 |
) |
(757 |
) |
Taxation paid | - | (3,154 | ) |
Taxation refund | - | 29,559 |
Net cash from operating activities | 482,626 | 259,994 |
Cash flows from investing activities |
Purchase of tangible assets | (581,418 | ) | (291,235 | ) |
Sale of tangible assets | 15,500 | 99,704 |
Sale of investment property | 264,019 | - |
Drawdown of current asset investments | 218,049 | - |
Interest received | 4,476 | 2,250 |
Net cash from investing activities | (79,374 | ) | (189,281 | ) |
Cash flows from financing activities |
Repayment of borrowings | (137,518 | ) | (15,561 | ) |
Repayment of obligations on HP contracts | (10,550 | ) | (12,222 | ) |
Amount introduced by directors | 166,797 | 164,588 |
Amounts withdrawn by directors | (172,531 | ) | (180,120 | ) |
Equity dividends paid | (148,816 | ) | (132,307 | ) |
Net cash from financing activities | (302,618 | ) | (175,622 | ) |
Increase/(decrease) in cash and cash equivalents | 100,634 | (104,909 | ) |
Cash and cash equivalents at beginning of year |
33 |
804,202 |
909,111 |
Cash and cash equivalents at end of year | 33 | 904,836 | 804,202 |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2023 |
1. | STATUTORY INFORMATION |
Resolute Corporate Holdings 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. |
The principal activities of the group are set out in the Directors' Report on page 4. |
2. | STATEMENT OF COMPLIANCE |
The group and individual financial statements of Resolute Corporate Holdings Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. |
Basis of accounting |
These financial statements are prepared on a going concern basis, under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value. The financial statements are presented in pound sterling which is the group's and company's functional currency. |
The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group and company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 4. |
Going concern |
The financial statements have been prepared on a going concern basis as the directors have a reasonable expectation that the group and company has adequate resources to continue in operational existence for the foreseeable future. |
Exemptions for qualifying entities under FRS 102 |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102: |
(i) | from preparing a statement of cash flows, on the basis that it is a qualifying entity and the consolidated statement of cash flows, included in these financial statements, includes the company's cash flows. |
(ii) | from disclosing the company key management personnel compensation, as required by FRS 102 paragraph 33.7. |
(iii) | from disclosing the related party transactions between the company and its wholly owned subsidiaries within the Resolute Corporate Holdings Limited group. |
Basis of consolidation |
The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings together with the group's share of the results of associates made up to 31 August each year. |
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
An associate is an entity, being neither a subsidiary nor a joint venture, in which the group holds a long-term interest and where the group has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate. |
Any subsidiary undertakings or associates sold or acquired during the year are included up to, or from, the dates of change of control or change of significant influence respectively. |
All intra-group transactions, balances, income and expenses are eliminated on consolidation. Adjustments are made to eliminate the profit or loss arising on transactions with associates to the extent of the group’s interest in the entity. |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
3. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the group and value added tax. |
The group recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the group retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; and (d) it is probable that future economic benefits will flow to the entity. |
Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease unless the lease payments are structured to increase in line with expected general inflation in which case the income is recognised as revenue in accordance with the expected payments. Rental income is included in other operating income. |
Government grants |
Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grant will be received. These grants are recognised in the income statement on a systematic basis over the periods in which the related costs towards which they are intended to compensate are recognised as expenses. |
Employee benefits |
Short term benefits, including holiday pay and other similar non-monetary benefits are recognised as an expense in the period in which the service is received. |
Defined contribution pension schemes |
The group operates defined contribution pension schemes for its employees. Contributions are recognised as an expense when they are due. Amounts not paid are included in other creditors in the balance sheet. |
Taxation |
The tax charge represents the aggregate amount of current tax and deferred tax recognised in the reporting period. |
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous periods. |
A deferred tax asset or liability is recognised for tax recoverable or payable in future periods in respect of transactions and events recognised in the financial statements of current and previous periods. |
Deferred tax arises from timing differences that are differences between taxable profits and the company's results as stated in the financial statements. Timing differences result from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. |
Deferred tax is recognised on all timing differences at the reporting date apart from certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing differences. Deferred tax relating to land and investment properties that is measured at fair value is measured using the tax rates and allowances that apply to the sale of the asset. |
Business combinations and goodwill |
Purchased goodwill arising on the acquisition of subsidiary undertakings and businesses, represents any excess of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired. Goodwill is capitalised and stated at cost less accumulated amortisation and provisions for impairment. The amortisation of goodwill is calculated on a straight line basis over its expected useful life. |
Negative goodwill is similarly included in the balance sheet and is credited to profit or loss in the periods in which the acquired non-monetary assets are recovered through depreciation or sale. Negative goodwill in excess of the fair values of the non-monetary assets acquired is credited to profit or loss in the periods expected to benefit. |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
3. | ACCOUNTING POLICIES - continued |
Tangible assets |
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price of the asset plus costs attributable to bringing the asset to its working condition for its intended use. |
Land is not depreciated. Depreciation on other assets is charged from the time when tangible assets are brought into use and is calculated so as to write off the cost of fixed assets, less their estimated residual values, over the expected useful economic lives of the assets concerned. The principal annual rates used for this purpose are as follows: |
Freehold property | - 2 - 2.5% straight line |
Plant and machinery | - 15 - 25% reducing balance and 25 - 33% straight line |
Fixtures and fittings | - 15 - 25% reducing balance and 33% straight line |
Motor vehicles | - 33% reducing balance |
Computer equipment | - 25% reducing balance |
Investments - group |
Investments in associates are accounted for using the equity method. |
The carrying amount of the investment in associates is increased or decreased to recognise the group’s share of the profit or loss and other comprehensive income of the associate, adjusted where necessary to ensure consistency with the accounting policies of the group. |
Unrealised gains and losses on transactions between the group and its associates are eliminated to the extent of the group’s interest in those entities. Where unrealised losses are eliminated, the underlying asset is also tested for impairment. |
Investments - company |
Investments in subsidiaries and associates are held at cost less accumulated impairment losses. |
Investment property |
Investment properties are initially recorded at cost which includes purchase cost and any directly attributable expenditure. |
Investment properties whose fair value can be measured reliably are measured at fair value. The gain or loss on revaluation is recognised in profit or loss in the period in which it arises. Such gains or losses are transferred from retained earnings to a non-distributable reserve. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Stocks are recognised as an expense in the period in which the related revenue is recognised. |
Cost includes all costs incurred in bringing each product to its present location and condition, as follows: |
Raw materials, consumables and goods for resale | - | purchase cost on a first-in, first-out (FIFO) basis |
Work in progress and finished goods | - | cost of direct materials and labour plus attributable overheads based on normal levels of activity |
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in profit or loss. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in profit or loss. |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
3. | ACCOUNTING POLICIES - continued |
Impairment of non-financial assets |
At each balance sheet date non-financial assets not carried at fair value are assessed to determine whether there is an indication that the asset (or asset’s cash generating unit) may be impaired. If there is such an indication the recoverable amount of the asset (or asset’s cash generating unit) is compared to the carrying amount of the asset (or asset’s cash generating unit). |
The recoverable amount of the asset (or asset’s cash generating unit) is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the asset’s (or asset’s cash generating unit) continued use. These cash flows are discounted using a pre-tax discount rate that represents the current market risk-free rate and the risks inherent in the asset. |
If the recoverable amount of the asset (or asset’s cash generating unit) is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in profit or loss unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter any excess is recognised in profit or loss. |
If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset’s cash generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in profit or loss. |
Goodwill is allocated on acquisition to the cash generating unit expected to benefit from the synergies of the combination. Goodwill is included in the carrying value of cash generating units for impairment testing. |
Trade and other debtors |
Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities. |
Financial instruments |
The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties and loans to related parties. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. |
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
3. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Foreign currency transactions are translated into the functional currency using the spot exchange rates ruling at the dates of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are taken to profit or loss. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Provisions |
Provisions are recognised when the group has a present legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation and the amount of obligation can be estimated reliably. |
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost. |
Share capital |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
Distributions to equity holders |
Dividends and other distributions to the group’s shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity. |
Related party transactions |
The group discloses transactions with related parties which are not wholly owned within the same group. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors, separate disclosure is necessary to understand the effect of the transactions on the group financial statements. |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
4. | CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATION UNCERTAINTY |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Critical judgements in applying the group's accounting policies |
There are no critical judgements in applying the group's accounting policies. |
Key accounting estimates and assumptions |
The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed by the directors annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 15 for the net carrying amount of the tangible assets and note 3 for the useful economic lives for each class of assets. |
Revaluation of investment properties |
The directors make key assumptions in the determination of the fair values of investment properties in respect of the state of the property market in the location where the properties are situated and in respect of the range of reasonable fair value estimates of the assets. The valuation method is further described in note 17 together with the valuation of the properties. |
Impairment of debtors |
The directors make an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the credit rating of the debtor and historical experience. See note 19 for the net carrying amount of the debtors and associated impairment provision. |
Impairment of stocks |
The directors make an estimate of the recoverable value of stocks. When calculating the stock provision, consideration is given to the nature and condition of the stock as well as applying assumptions around anticipated saleability of goods held for resale. See note 18 for the net carrying amount of stocks and the related movement in impairment provision. |
Going concern |
The directors make an estimate of the future performance of the group in order to prepare the financial statements under the going concern methodology. When assessing the future performance, the directors consider financial projections which reflect the current and expected market conditions, operational cash flow requirements and financing opportunities. |
5. | TURNOVER |
The directors are of the opinion that there is only one category of business included within turnover and consequently no segmental analysis by activity has been provided. The directors have not disclosed the geographical analysis of turnover as they consider this information to be commercially sensitive. |
6. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Rents received | 109,278 | 101,432 |
Sundry receipts | 14,915 | 12,000 |
Government grants | - | 25,000 |
124,193 | 138,432 |
Government grants relates to amounts of £Nil receivable (2022 - £25,000) under the local authority's discretionary grant scheme. |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
7. | EMPLOYEES AND DIRECTORS |
The monthly average number of people employed by the group (including directors) during the year, analysed by category, was as follows: |
2023 | 2022 |
Production | 51 | 43 |
Admin, sales and management | 16 | 17 |
67 | 60 |
The group aggregate payroll costs of these persons were as follows: |
2023 | 2022 |
£ | £ |
Wages, salaries and social security costs | 1,782,563 | 1,547,019 |
Pension costs | 68,953 | 57,799 |
1,851,516 | 1,604,818 |
8. | DIRECTORS' EMOLUMENTS |
2023 | 2022 |
£ | £ |
Directors' remuneration | 28,746 | 40,191 |
Directors' pension contributions to money purchase schemes | 8,784 | 7,840 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
9. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 257,089 | 210,124 |
Depreciation - assets on finance leases | 20,278 | 10,415 |
Loss/(profit) on disposal of fixed assets | 15,192 | (59,079 | ) |
Negative goodwill amortisation | (869 | ) | (1,022 | ) |
Auditors' remuneration | 20,493 | 19,365 |
Auditors' remuneration for non audit work | 5,418 | 7,029 |
Foreign exchange differences | 13,005 | 6,316 |
Research and development | - | 284 |
10. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 1,272 | 3,808 |
Hire purchase interest | - | 757 |
Lease purchase interest | 4,514 | - |
5,786 | 4,565 |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
11. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
Foreign corporation tax | 7,941 | (9 | ) |
Share of associate's income tax | 12,046 | 11,304 |
Total current tax | 19,987 | 11,295 |
Deferred tax: |
Origination and reversal of timing differences | (274,117 | ) | 234,624 |
Tax on profit | (254,130 | ) | 245,919 |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 207,725 | 788,867 |
Profit multiplied by the standard rate of corporation tax in the UK of 21.500 % (2022 - 19 %) |
44,661 |
149,885 |
Effects of: |
Expenses not deductible for tax purposes | 2,441 | 2,057 |
Amortisation of negative goodwill | (187 | ) | (194 | ) |
Adjustments in respect of unrecognised tax losses | (311,908 | ) | 54,750 |
Change in tax rates | 6,741 | 33,449 |
Foreign tax (receivable)/payable | 7,941 | (9 | ) |
Other timing differences | (3,819 | ) | 5,981 |
Total tax (credit)/charge | (254,130 | ) | 245,919 |
Factors that may affect future current and total tax charges |
In the Spring Budget 2021, it was announced that from 1 April 2023 the main rate of UK corporation tax would increase from 19% to 25%. This rate was substantively enacted on 24 May 2021. Deferred taxes at the balance sheet date have been measured using the applicable enacted tax rates and reflected in these financial statements. |
12. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
The company's profit for the financial year is disclosed as a note to the company's balance sheet on page 10. |
13. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Interim equity dividends declared and paid during the year on: |
Ordinary Shares of £1 each | - | 62,225 |
A Ordinary Shares of £1 each | 24,335 | 11,535 |
B Ordinary Shares of £1 each | 63,625 | 27,554 |
C Ordinary Shares of £1 each | 60,856 | 30,993 |
148,816 | 132,307 |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
14. | INTANGIBLE ASSETS |
Group |
Negative |
goodwill |
£ |
COST |
At 1 September 2022 |
and 31 August 2023 | (434,217 | ) |
AMORTISATION |
At 1 September 2022 | (428,425 | ) |
Amortisation for year | (869 | ) |
At 31 August 2023 | (429,294 | ) |
NET BOOK VALUE |
At 31 August 2023 | (4,923 | ) |
At 31 August 2022 | (5,792 | ) |
Company |
The company had no intangible assets at 31 August 2023 (2022 - £Nil). |
15. | TANGIBLE ASSETS |
Group |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 September 2022 | 2,656,013 | 2,290,800 | 631,613 |
Additions | - | 497,005 | 198,064 |
Disposals | - | (312,500 | ) | (22,381 | ) |
At 31 August 2023 | 2,656,013 | 2,475,305 | 807,296 |
DEPRECIATION |
At 1 September 2022 | 327,378 | 1,666,952 | 496,179 |
Charge for year | 43,121 | 126,307 | 37,182 |
Eliminated on disposal | - | (279,444 | ) | (22,381 | ) |
At 31 August 2023 | 370,499 | 1,513,815 | 510,980 |
NET BOOK VALUE |
At 31 August 2023 | 2,285,514 | 961,490 | 296,316 |
At 31 August 2022 | 2,328,635 | 623,848 | 135,434 |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
15. | TANGIBLE ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 September 2022 | 248,899 | 4,782 | 5,832,107 |
Additions | 136,349 | - | 831,418 |
Disposals | (41,951 | ) | - | (376,832 | ) |
At 31 August 2023 | 343,297 | 4,782 | 6,286,693 |
DEPRECIATION |
At 1 September 2022 | 158,622 | 3,029 | 2,652,160 |
Charge for year | 69,368 | 1,389 | 277,367 |
Eliminated on disposal | (36,059 | ) | - | (337,884 | ) |
At 31 August 2023 | 191,931 | 4,418 | 2,591,643 |
NET BOOK VALUE |
At 31 August 2023 | 151,366 | 364 | 3,695,050 |
At 31 August 2022 | 90,277 | 1,753 | 3,179,947 |
Tangible assets are not depreciated until they are brought into use. Included within the cost of freehold property is freehold land of £500,000 (2022 - £500,000) which is not depreciated. |
Fixed assets, included in the above, which are held under finance leases are as follows: |
Plant and |
machinery |
£ |
COST |
Additions | 486,660 |
At 31 August 2023 | 486,660 |
DEPRECIATION |
Charge for year | 20,278 |
At 31 August 2023 | 20,278 |
NET BOOK VALUE |
At 31 August 2023 | 466,382 |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
15. | TANGIBLE ASSETS - continued |
Company |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 September 2022 |
Additions |
At 31 August 2023 |
DEPRECIATION |
At 1 September 2022 |
Charge for year |
At 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
16. | INVESTMENTS |
Group |
Interest |
in |
associate |
£ |
COST |
At 1 September 2022 | 285,138 |
Share of profit/(loss) | 44,129 |
At 31 August 2023 | 329,267 |
NET BOOK VALUE |
At 31 August 2023 | 329,267 |
At 31 August 2022 | 285,138 |
Company |
Shares in | Interest |
group | in |
undertakings | associate | Totals |
£ | £ | £ |
COST |
At 1 September 2022 |
and 31 August 2023 | 4,167,701 |
NET BOOK VALUE |
At 31 August 2023 | 4,167,701 |
At 31 August 2022 | 4,167,701 |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
16. | INVESTMENTS - continued |
The directors believe that the carrying value of the investments is supported by their underlying value. |
The subsidiaries and associates of the group and parent company at 31 August 2023, which are included in the consolidation are as follows: |
Name of company |
Proportion of voting rights and ordinary share capital held |
Address of the Registered Office |
Principal activity |
Subsidiary undertakings |
Spanfax Limited | 100% | Ingram House | Intermediate parent |
(held directly) | Meridian Way | company |
Norwich |
Norfolk NR7 0TA |
Structure-flex Limited | 100% | 33 Holt Road | Manufacturer of flexible |
(held indirectly) | Cromer | plastic fabrications |
Norfolk NR27 9EB |
IBC Transport Containers Limited | 100% | Ingram House | Non-trading subsidiary |
(held indirectly) | Meridian Way |
Norwich |
Norfolk NR7 0TA |
Resolute Properties Limited | 100% | Ingram House | Property investment |
(held directly) | Meridian Way |
Norwich |
Norfolk NR7 0TA |
Associates |
Trans-web Limited | 20% | Sarena House | Manufacturer of webbing |
(held directly) | Vulcan Street | and safety equipment |
Oldham OL1 4LQ |
Sewsafe Products Limited | 20% | Sarena House | Non-trading subsidiary |
(held indirectly) | Vulcan Street |
Oldham OL1 4LQ |
Sosafe Products Limited | 20% | Sarena House | Non-trading subsidiary |
(held indirectly) | Vulcan Street |
Oldham OL1 4LQ |
17. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 September 2022 | 2,759,804 |
Disposals | (338,306 | ) |
Revaluations | 17,073 |
Exchange differences | (21,785 | ) |
At 31 August 2023 | 2,416,786 |
NET BOOK VALUE |
At 31 August 2023 | 2,416,786 |
At 31 August 2022 | 2,759,804 |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
17. | INVESTMENT PROPERTY - continued |
Group |
The historical cost of the group's investment properties was £1,557,101 (2022 - £1,798,171). |
Company |
Total |
£ |
FAIR VALUE |
At 1 September 2022 |
and 31 August 2023 |
NET BOOK VALUE |
At 31 August 2023 |
At 31 August 2022 |
The historical cost of the company's investment properties was £743,310 (2022 - £743,310). |
The directors value the investment property portfolio of the group and company annually at the balance sheet date. The directors use their own knowledge and experience to assess the open market value of each property. |
18. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Raw materials | 371,156 | 442,829 |
Work-in-progress | 142,745 | 110,514 |
513,901 | 553,343 |
Stock is stated after provisions for impairment of £129,802 (2022 - £146,132). |
Company |
The company had no stock at 31 August 2023 (2022 - £Nil). |
19. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 937,105 | 854,708 |
Amounts owed by group undertakings | - | - |
Amounts owed by associates | - | 2,384 |
Other debtors | 22,462 | 74,276 |
Corporation tax | 43,704 | 2,749 |
Prepayments and accrued income | 101,041 | 104,101 |
1,104,312 | 1,038,218 |
Amounts falling due after more than one | year: |
Amounts owed by group undertakings | - | - |
Aggregate amounts | 1,104,312 | 1,038,218 |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
19. | DEBTORS - continued |
Group trade debtors are stated after provisions for impairment of £Nil (2022 - £Nil). |
Included in amounts owed by group undertakings are two loans due from Structure-flex Limited, a subsidiary company. Loan 1 is unsecured, incurring interest at 2.5% above Bank of England base rate, and is repayable by 12 equal quarterly instalments. Loan 2 is unsecured, incurring interest at 2.5% above Bank of England base rate, and is repayable by 20 equal quarterly instalments. |
Amounts owed by group undertakings falling due after more than one year also includes a loan due from Resolute Properties Limited, a subsidiary company. This loan has a minimum repayment notice period of 53 weeks and incurs interest at 2.35% per annum. |
20. | CURRENT ASSET INVESTMENTS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Listed investments - at fair value | - | 220,140 | - | 220,140 |
The fair value of listed investments was determined with reference to the quoted market price at the reporting date. |
21. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 23) | - | 136,245 |
Finance leases (see note 24) | 44,078 | - |
Trade creditors | 706,426 | 723,528 |
Amounts owed to associates | 10,562 | - | - | - |
Other taxation and social security | 149,457 | 188,089 |
Other creditors | 48,774 | 36,597 |
Accruals and deferred income | 218,170 | 205,473 |
1,177,467 | 1,289,932 |
Amounts owed to associates are unsecured, no guarantees have been received and are payable in 30 days. |
22. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Finance leases (see note 24) | 195,372 | - |
23. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | - | 136,245 |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
24. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Finance leases |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 44,078 | - |
Between one and five years | 195,372 | - |
239,450 | - |
The finance lease obligation is secured on the assets to which they relate in note 15. |
25. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 5,081 | 262,316 |
Other timing differences | (5,284 | ) | (2,336 | ) | (2,132 | ) | - |
Revaluation of investment properties | 206,110 | 220,044 | 164,173 | 160,827 |
205,907 | 480,024 | 167,122 | 160,827 |
Other provisions | 5,000 | 2,600 | - | - |
Aggregate amounts | 210,907 | 482,624 | 167,122 | 160,827 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 September 2022 | 480,024 | 2,600 |
(Credit)/charge to Statement of Comprehensive Income during year | (274,117 | ) | 2,400 |
Balance at 31 August 2023 | 205,907 | 5,000 |
Company |
Deferred |
tax |
£ |
Balance at 1 September 2022 |
Charge to Statement of Comprehensive Income during year |
Balance at 31 August 2023 |
At the balance sheet date the group had unrecognised tax losses of £438,258 (2022 - £1,675,744) available for offset against taxable profits in future periods. There are no unused tax credits. |
Other provisions at the year end are represented by a provision for product warranty costs. |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
26. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
A Ordinary | £1 | 1,500 | 1,500 |
B Ordinary | £1 | 5,808 | 5,808 |
C Ordinary | £1 | 5,808 | 5,808 |
13,116 | 13,116 |
27. | RESERVES |
Share premium account |
This reserve includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium. |
Capital redemption reserve |
This reserve records the nominal value of shares repurchased by the group and the company. |
Non-distributable reserve |
This reserve is used to record unrealised gains or losses on revaluation of investment property. |
Retained earnings |
This balance represents cumulative retained profits and losses. |
28. | PENSION COMMITMENTS |
The pension cost charge for the year represents contributions payable and amounted to £68,953 (2022 - £57,799). Contributions totalling £10,730 (2022 - £9,346) were payable to a defined contribution scheme at the year end. |
29. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 August 2023 and 31 August 2022: |
2023 | 2022 |
£ | £ |
M J Doughty |
Balance outstanding at start of year | 7,398 | 7,525 |
Amounts advanced | 97,033 | 74,599 |
Amounts repaid | (84,065 | ) | (74,726 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 20,366 | 7,398 |
Loans to directors are unsecured and are repayable on demand. Interest is charged at HM Revenue and Customs' official rate of interest on any beneficial loan amounts. |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
30. | RELATED PARTY DISCLOSURES |
Group |
2023 | 2022 |
£ | £ |
Sales to associates | 17,923 | 17,575 |
Rents charged to associates | 69,828 | 68,696 |
Purchases from associates | 55,537 | 16,898 |
Amounts due from/(to) associates | (10,562 | ) | 2,384 |
Sales to other related parties | - | 608 |
Services charged by other related parties | 35,627 | 36,311 |
Amounts due to other related parties | - | - |
Company |
2023 | 2022 |
£ | £ |
Rents charged to associates | 69,828 | 68,696 |
Services charged by other related parties | 6,627 | 6,311 |
Amounts due to other related parties | - | - |
Other than the transactions disclosed above, the group and company’s other related party transactions were with wholly owned subsidiaries. |
Transactions with key management personnel |
Key management personnel are comprised of the directors in the group. The compensation paid or payable to key management personnel was £143,410 (2022 - £157,556). |
31. | ULTIMATE CONTROLLING PARTY |
The company is owned by a number of private shareholders. |
Resolute Corporate Holdings Limited is the smallest and largest group that prepares consolidated financial statements. |
32. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 207,725 | 788,867 |
Depreciation charges | 276,498 | 219,517 |
Loss/(profit) on disposal of fixed assets | 15,192 | (59,079 | ) |
Loss/(gain) on revaluation of fixed assets | 4,712 | (769,950 | ) |
Increase/(decrease) in provisions | 2,400 | (1,115 | ) |
(Gain)/loss on current asset investments | 2,673 | 32,958 |
Share of operating profit in associate | (56,175 | ) | (55,024 | ) |
Finance costs | 5,786 | 4,565 |
Finance income | (4,476 | ) | (2,250 | ) |
454,335 | 158,489 |
Decrease/(increase) in stocks | 72,498 | (108,569 | ) |
Increase in trade and other debtors | (12,171 | ) | (181,658 | ) |
(Decrease)/increase in trade and other creditors | (27,522 | ) | 366,084 |
Cash generated from operations | 487,140 | 234,346 |
RESOLUTE CORPORATE HOLDINGS LIMITED (REGISTERED NUMBER: 06310774) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2023 |
33. | 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 August 2023 |
31.8.23 | 1.9.22 |
£ | £ |
Cash and cash equivalents | 904,836 | 804,202 |
Year ended 31 August 2022 |
31.8.22 | 1.9.21 |
£ | £ |
Cash and cash equivalents | 804,202 | 909,111 |
34. | ANALYSIS OF CHANGES IN NET FUNDS |
Other |
non-cash |
At 1.9.22 | Cash flow | changes | At 31.8.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 804,202 | 100,634 | 904,836 |
804,202 | 100,634 | 904,836 |
Liquid resources |
Current asset |
investments | 220,140 | (220,140 | ) | - | - |
220,140 | (220,140 | ) | - | - |
Debt |
Finance leases | - | 10,550 | (250,000 | ) | (239,450 | ) |
Debts falling due |
within 1 year | (136,245 | ) | 136,245 | - | - |
(136,245 | ) | 146,795 | (250,000 | ) | (239,450 | ) |
Total | 888,097 | 27,289 | (250,000 | ) | 665,386 |