John Riddel and Son Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: R0000437 (Northern Ireland)

JOHN RIDDEL AND SON LIMITED

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

Page

Statement of Financial Position

1

Notes to the Financial Statements

2

NON-CURRENT ASSETS

Property, plant and equipment

5

5,605,975

4,223,281

CURRENT ASSETS

Inventories

6

1,197,025

1,138,602

Receivables: amounts falling due within one year

7

762,277

947,860

Cash at bank

116,097

11,869

2,075,399

2,098,331

PAYABLES

Amounts falling due within one year

8

(4,547,856

)

(3,401,914

)

NET CURRENT LIABILITIES

(2,472,457

)

(1,303,583

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,133,518

2,919,698

PAYABLES

Amounts falling due after more than one year

9

(256,152

)

(98,450

)

NET ASSETS

2,877,366

2,821,248

CAPITAL AND RESERVES

Called up share capital

11

65,140

65,140

Capital redemption reserve

9,860

9,860

Retained earnings

2,802,366

2,746,248

SHAREHOLDERS' FUNDS

2,877,366

2,821,248

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

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

The financial statements were approved by the Board of Directors and authorised for issue on 29 May 2024 and were signed on its behalf by:

D Canavan - Director

1.	STATUTORY INFORMATION

John Riddel and Son Limited is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address are as below:

Registered number:

R0000437

Registered office:

1 Dagger Road

Lisburn

BT28 2TJ

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The accounts are prepared on a going concern basis under the historical cost convention modified when necessary to include the revaluation of certain fixed assets.

The financial statements are presented in sterling which is the functional currency of the company

and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set

out below. These policies have been consistently applied to all years presented, unless otherwise

stated.

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the

company and the revenue can be reliably measured. Revenue is measured as the fair value of the

consideration received or receivable, excluding discounts, rebates, value added tax and other sales

taxes. The following criteria must also be met before revenue is recognised:

Sale of goods:

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the significant risks and rewards of ownership have been transferred to the buyer;

- the company retains no continuing involvement or control over the goods;

- the amount of revenue can be measured reliably;

- it is probable that future economic benefits will flow through the company;

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Other income represents rental income for storage space. This is recognised on a month to month basis of storage space provided.

Property, plant and equipment and depreciation

Cost Model

Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended. The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:

Plant and machinery

- 10 - 25% Straight line

Fixtures and fittings

- 10 - 20% Straight line

Motor vehicles

- 20% Straight line

The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.

Revaluation Model

A revaluation policy is in place whereby land and buildings are revalued at fair value which is considered to equate to open market value by an external valuer. Revaluations will be made with sufficient regularity to ensure that the carrying amount does not materially differ from that which would be determined using fair value.

Inventories

Inventories are valued at the lower of cost and net realisable value. Inventories are determined on a first-in first-out basis. Cost comprises expenditure incurred in the normal course of business in bringing inventories to their present location and condition. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling. Full provision is made for obsolete and slow moving items.

Financial instruments

The company have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by related parties and are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to related parties are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services andamortised over the period of the facility to which it relates.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

(iii) Offsetting

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Taxation

Taxation for the year comprises current tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. Current taxation assets and liabilities are not discounted. Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

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

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

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account arriving at the operating result.

Employee benefits

The company operates a defined contribution pension scheme for employees. The assets of the scheme are held seperately from those of the company in an independently administered fund. Annual contributions payable to the company's pension scheme are charged to the Income Statement in the period to which they relate.

Hire purchase and leasing commitments

Property, plant and equipment held under leasing and Hire Purchases arrangements which transfer substantially all the risks and rewards of ownership to the company are capitalised and included in the Statement of Financial Position at their cost or valuation, less depreciation. The corresponding commitments are recorded as liabilities. Payments in respect of these obligations are treated as consisting of capital and interest elements, with interest charged to the Income Statement.

Cash flow statement

The company has availed of the exemption in FRS 102 Section 1A from the requirement to prepare a Statement of Cash Flows because it is classified as a small company.

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.

Finance Costs

Finance expenses comprise interest payable on borrowings and leases. Interest is recognised in profit or loss as it accrues.

Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts facilities are repayable on demand and form an integral part of the company's cash management.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 18 (2022 - 16 ) .

5.	PROPERTY, PLANT AND EQUIPMENT

Freehold

Plant and

Motor

property

machinery

vehicles

Totals

£

£

£

£

COST

At 1 January 2023

3,840,993

759,271

31,042

4,631,306

Additions

1,126,553

341,258

-

1,467,811

Disposals

-

-

(17,025

)

(17,025

)

At 31 December 2023

4,967,546

1,100,529

14,017

6,082,092

DEPRECIATION

At 1 January 2023

-

377,892

30,133

408,025

Charge for year

-

84,754

363

85,117

Eliminated on disposal

-

-

(17,025

)

(17,025

)

At 31 December 2023

-

462,646

13,471

476,117

NET BOOK VALUE

At 31 December 2023

4,967,546

637,883

546

5,605,975

At 31 December 2022

3,840,993

381,379

909

4,223,281

6.	INVENTORIES

2023

2022

£

£

Inventories

1,197,025

1,138,602

7.

RECEIVABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade receivables

463,326

479,317

Amounts owed by group undertakings

104,588

195,732

Amounts owed by related undertakings

3,668

61,022

VAT

-

33,332

Deferred tax asset

104,319

104,319

Prepayments and accrued income

86,376

74,138

762,277

947,860

The amounts owed by group companies and related undertakings are unsecured and considered payable on demand. No interest is charged in respect of same.

8.

PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Amt due to Credit Institutions

-

252,142

Hire purchase contracts

86,646

29,846

Trade payables

159,375

355,425

Amounts owed to group undertakings

4,049,458

2,736,715

Taxation and social security

2,464

-

Other payables

249,913

27,786

4,547,856

3,401,914

The amounts due to group companies and related undertakings are unsecured and considered payable on demand. No interest is charged in respect of same.

9.

PAYABLES: AMOUNTS FALLING DUE AFTER ONE YEAR

2023

2022

£

£

Hire purchase contracts

256,152

98,450

10.	SECURED DEBTS

The following secured debts are included within creditors:

2023

2022

£

£

Hire purchase contracts

342,798

128,296

Amt due to Credit Institutions

-

252,142

342,798

380,438

The amounts due to credit institutions is secured by way of a fixed charge over the book debts of the company and a floating charge together with a legal mortgage over land and buildings at Dagger Road, Lisburn.

Hire purchase creditors are secured by the asset to which they relate.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2023

2022

value:

£

£

6,514

Ordinary

£10

65,140

65,140

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Auditors' Report was unqualified.

Mr Ryan Falls FCA (Senior Statutory Auditor)

for and on behalf of CavanaghKelly

13.	CAPITAL COMMITMENTS

2023

2022

£

£

Contracted but not provided for in the

financial statements

-

1,520,000

14.	RELATED PARTY TRANSACTIONS

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

The following entities are regarded as related parties due to common directors and shareholders.

-

Flair Showers Ltd

Amounts owed to/by John Riddel and Son Limited at year end:

2023

2022

Amounts (owed to

)

Amounts (owed to

)

/ by John Riddel and Son Limited

/ by John Riddel and Son Limited

£

£

Flair Showers Ltd

(3,668

)

(61,022

)

15.	ULTIMATE PARENT COMPANY

The ultimate controlling party is Sanbra Limited.

The company regards Sanbra Limited, a company registered in the Republic of Ireland, as its parent company. The results of John Riddel and Son Limited are included in the consolidated financial statements of Sanbra Limited, which are available at the company's registered office at Conex Works, Santry Avenue, Dublin 9, Ireland.