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RSR LTD |
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STRATEGIC REPORT, |
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REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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REGISTERED NUMBER:
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RSR LTD |
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STRATEGIC REPORT, |
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REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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RSR | LTD (REGISTERED NUMBER: 03766047) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 5 |
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Report of the Independent Auditors | 8 |
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Income Statement | 11 |
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Other Comprehensive Income | 12 |
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Balance Sheet | 13 |
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Statement of Changes in Equity | 14 |
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Cash Flow Statement | 15 |
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Notes to the Cash Flow Statement | 16 |
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Notes to the Financial Statements | 17 |
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RSR | LTD |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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CHARTERED ACCOUNTANTS & |
STATUTORY AUDITORS |
CHURCHGATE HOUSE |
CHURCH ROAD |
CARDIFF |
CF14 2DX |
RSR | LTD (REGISTERED NUMBER: 03766047) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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The directors present their strategic report for the year ended 30 September 2019. |
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REVIEW OF BUSINESS |
The principal activity of the group in the year under review was that of manufacturing and distributing medical |
diagnostic kits. |
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Details of the company's performance for the financial year are set out in detail on page 11. Its results and future |
prospects are considered to be satisfactory. |
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Financial performance in the year |
The company recorded an increase in turnover by 5.26% which was in line with expectations from management. |
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The company achieved a gross profit margin of 70.8% (2018: 67.4%). This has been as a result of an decrease in |
cost of sales in spite of an increase in productivity and strong control on input costs. The Directors will continue |
to focus on improving margins and driving costs down in the company for the forthcoming year. |
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Financial position at the reporting date |
The balance sheet on page 13 shows that the company's net assets have increased by £2.7m when compared to |
the prior year. |
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However, uncertainties related to the effects of Brexit and COVID-19 are relevant to understanding the financial |
statements. However, the reasonableness of estimates made by the directors, such as recoverability of debtors |
and related disclosures and the appropriateness of the going concern basis of preparation of the financial |
statements. All of these depend on assessments of the future economic environment and the company's future |
prospects and performance. |
Brexit and COVID-19 are the most significant economic and social events for the UK, and at the date of this |
report its effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible |
effects unknown. However, when assessing the company's future prospects no accounts should be expected to |
predict unknowable factors of all possible future implications for a company and this is particularly the case in |
relation to Brexit and COVID-19. |
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RSR | LTD (REGISTERED NUMBER: 03766047) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The Management continually monitor the key risks facing the company together with assessing the controls used |
for managing these risks. The board of directors formally reviews and documents the principal risks facing the |
business at least annually. |
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The principal risks and uncertainties facing the company are as follows; |
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Economic downturn - the company acknowledges the importance of maintaining close relationships with its key |
customers in order to be able to identify the early signs of potential financial difficulties. Sales trends in its |
major markets are constantly reviewed to enable early action to be taken in the event of sales declining. |
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Competitive pressure - in the general economic environment is a continuing risk to the group as is the ability of |
suppliers to keep pace with the competition. The group manages this risk by providing fast response times in |
fulfilling sales orders and by maintaining strong relationships with key customers and suppliers throughout the |
world. |
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Reliance on key suppliers - the company's purchasing activities could expose it to over reliance on certain |
suppliers and inflationary pricing pressure. The company's manages this risk by ensuring there is enough breadth |
in its supplier base and by constantly seeking to find potential alternative suppliers that may be used, if |
necessary. |
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Loss of key personnel - this would present significant operational difficulties for the company. Management |
seek to ensure that key personnel are appropriately remunerated to ensure that good performance is recognised. |
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DISABLED EMPLOYEES |
Applications for employment by disable persons are always fully considered, bearing in mind the aptitudes of |
the applicants concerned. In the event of members of staff becoming disabled every effort is made to ensure that |
their employment with the company continues and the appropriate training is arranged. It is the policy of the |
company that the training, career development and promotion of disabled persons should be identical to that of |
other employees. |
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RSR | LTD (REGISTERED NUMBER: 03766047) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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EMPLOYEE CONSULTATION |
The company is committed to employee involvement and encourages the development of co-operation with |
employees. To this end, the company's policy is to ensure that employees are kept informed on matters which |
affect them, through direct communication and established procedures for joint consultation. |
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The company has continued to examine ways and means of providing employment for disabled employees, |
under normal terms and conditions, with opportunities and established procedures for joint consultation. |
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ON BEHALF OF THE BOARD: |
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RSR | LTD (REGISTERED NUMBER: 03766047) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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The directors present their report with the financial statements of the company for the year ended 30 September 2019. |
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DIVIDENDS |
The total distribution of dividends for the year ended 30 September 2019 will be £
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RESEARCH AND DEVELOPMENT |
The company will continue its policy of research and development in order to retain a competitive position in |
the market. All research and development expenditure is written off to the profit and loss account as it is |
incurred. |
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FUTURE DEVELOPMENTS |
The directors consider that the forthcoming financial year with be another challenging one. Their aim is to |
continue to implement the management policies which have been introduced in recent years and has assisted in |
successfully overcoming the difficulties and uncertainties in the market place in the year. Overall, the directors |
believe that the company is well placed in terms of strategic and market position to maximise its ability to |
generate sales and satisfy customer demand, in spite of the difficult economic conditions currently facing the |
business. |
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EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2018 to the date of |
this report. |
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RSR | LTD (REGISTERED NUMBER: 03766047) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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FINANCIAL INSTRUMENTS |
Treasury operations and financial instruments |
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The company operates a centralised treasury function which is responsible for managing the liquidity, interest |
and foreign currency risks associated with the company's activities.In addition the company has various other |
financial assets and liabilities such as trade receivables and trade payables arising directly from its operations. |
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Liquidity risk |
The company manages its cash requirements centrally to maximise interest income and minimise interest |
expense, whilst ensuring that the company has sufficient liquid resources to meet the operating needs to its |
business. |
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Foreign exchange risk |
The company's sources products from, and exports products to abroad, and is therefore subject to foreign |
exchange movements. This risk is managed by regular and consistent monitoring of exchange rates. |
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Interest rate risk |
This risk is managed by regular and consistent monitoring of interest rates. |
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Credit risk |
Investments of cash surpluses are made through banks which must fulfil credit rating criteria approved by the |
board. All customers who wish to trade on credit terms are subject to credit verification procedures. Receivable |
balances are monitored on an on-going basis and provision is made for doubtful debts where necessary. |
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GOING CONCERN |
The directors have a reasonable expectation that the Company has adequate resources to continue in operational |
existence for the foreseeable future, therefore it continues to adopt the going concern basis for accounting in |
preparing the annual financial statements. |
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DIRECTORS INDEMNITY |
The company's Articles of Association provide, subject to the provisions of UK legislation, an indemnity for |
directors and officers of the Company in respect of liabilities they may incur in the discharge of their duties or in |
the exercise of their powers, including any liabilities relating to the defence of any proceedings brought against |
them which relate to anything done or omitted, or alleged to have been done or omitted, by them as officers or |
employees of the company. |
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DISCLOSURE IN THE STRATEGIC REPORT |
As permitted by Paragraph 1A of Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts |
and Reports) Regulations 2008 certain matters which are required to be disclosed in the directors' report have |
been omitted as they are included in the strategic report. |
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RSR | LTD (REGISTERED NUMBER: 03766047) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial |
statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law the |
directors have elected to prepare the financial statements in accordance with United Kingdom Generally |
Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law |
the directors must not approve the financial statements unless they are satisfied that they give a true and fair |
view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing |
these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the |
company's transactions and disclose with reasonable accuracy at any time the financial position of the company |
and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also |
responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention |
and detection of fraud and other irregularities. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the |
Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that |
he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit |
information and to establish that the company's auditors are aware of that information. |
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AUDITORS |
The auditors, HODGE BAKSHI, will be proposed for re-appointment at the forthcoming Annual General |
Meeting. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RSR | LTD |
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Opinion |
We have audited the financial statements of RSR Ltd (the 'company') for the year ended 30 September 2019 |
which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in |
Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, |
including a summary of significant accounting policies. The financial reporting framework that has been applied |
in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting |
Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom |
Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 30 September 2019 and of its profit for the
year then ended; |
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and |
applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities |
for the audit of the financial statements section of our report. We are independent of the company in accordance |
with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the |
FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these |
requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a |
basis for our opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to |
report to you where: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast
significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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Impact of uncertainties due to Britain exiting the European Union on our audit |
Uncertainties related to the effects of Brexit and COVID-19 are relevant to understanding our audit of the |
financial statements. All audit assess and challenge the reasonableness of estimates made by the directors, such |
as recoverability of debtors and related disclosures and the appropriateness of the going concern basis of |
preparation of the financial statements. All of these depend on assessments of the future economic environment |
and the company's future prospects and performance. |
Brexit and COVID-19 are the most significant economic events for the UK, and at the date of this report its |
effects are subject to unprecedented levels of uncertainty of outcomes, with the full range of possible effects |
unknown. We applied a standardised firm-wide approach in response to that uncertainty when assessing the |
company's future prospects and performance. However, no audit should be expected to predict the unknowable |
factors of all possible future implications for a company and this is particularly the case in relation to Brexit and |
COVID-19. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RSR | LTD |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the |
Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of |
the Auditors thereon. |
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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. |
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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 there is a material |
misstatement in the financial statements or a material misstatement of the other information. 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. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the Strategic Report and the Report of the Directors for the financial year for which
the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal
requirements. |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of |
the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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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: |
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adequate accounting records have not been kept, or returns adequate for our audit have not been received
from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, 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. |
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In preparing the financial statements, the directors are responsible for assessing the company's ability to continue |
as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis |
of accounting unless the directors either intend to liquidate the company or to cease operations, or have no |
realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RSR | LTD |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free |
from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our |
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in |
accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise |
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be |
expected to influence the economic decisions of users taken on the basis of these financial statements. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial |
Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our |
Report of the Auditors. |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the |
Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members |
those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest |
extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the |
company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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CHARTERED ACCOUNTANTS & |
STATUTORY AUDITORS |
CHURCHGATE HOUSE |
CHURCH ROAD |
CARDIFF |
CF14 2DX |
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RSR | LTD (REGISTERED NUMBER: 03766047) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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2019 | 2018 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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11,456,362 | 9,879,423 |
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Other operating income |
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OPERATING PROFIT | 5 |
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Interest receivable and similar income |
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19,908,837 | 17,620,629 |
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Interest payable and similar expenses | 6 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 7 |
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PROFIT FOR THE FINANCIAL YEAR |
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RSR | LTD (REGISTERED NUMBER: 03766047) |
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OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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2019 | 2018 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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RSR | LTD (REGISTERED NUMBER: 03766047) |
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BALANCE SHEET |
30 SEPTEMBER 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
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CURRENT ASSETS |
Stocks | 10 |
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Debtors | 11 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 12 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CAPITAL AND RESERVES |
Called up share capital | 14 |
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Retained earnings | 15 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
were signed on its behalf by: |
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RSR | LTD (REGISTERED NUMBER: 03766047) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 October 2017 |
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Changes in equity |
Dividends | - |
( |
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( |
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Total comprehensive income | - |
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Balance at 30 September 2018 |
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Changes in equity |
Dividends | - |
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Total comprehensive income | - |
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Balance at 30 September 2019 |
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RSR | LTD (REGISTERED NUMBER: 03766047) |
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CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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2019 | 2018 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
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Interest paid | ( |
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Tax paid | ( |
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Net cash from operating activities |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Sale of tangible fixed assets |
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Interest received |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
Equity dividends paid |
( |
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( |
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Net cash from financing activities |
( |
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( |
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(Decrease)/increase in cash and cash equivalents | ( |
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Cash and cash equivalents at beginning
of year |
2 |
23,528,511 |
11,813,831 |
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Cash and cash equivalents at end of
year |
2 |
14,299,090 |
23,528,511 |
RSR | LTD (REGISTERED NUMBER: 03766047) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
2019 | 2018 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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Profit on disposal of fixed assets | ( |
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Finance costs | 5,212 | 12,202 |
Finance income | (54,878 | ) | (12,697 | ) |
20,047,870 | 17,840,398 |
Increase in stocks | ( |
) | ( |
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Increase in trade and other debtors | ( |
) | ( |
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(Decrease)/increase in trade and other creditors |
( |
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Cash generated from operations |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect |
of these Balance Sheet amounts: |
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Year ended 30 September 2019 |
30.9.19 | 1.10.18 |
£ | £ |
Cash and cash equivalents | 14,299,090 | 23,528,511 |
Year ended 30 September 2018 |
30.9.18 | 1.10.17 |
£ | £ |
Cash and cash equivalents | 23,528,511 | 11,813,831 |
RSR | LTD (REGISTERED NUMBER: 03766047) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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1. | STATUTORY INFORMATION |
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RSR Ltd is a
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registered number and registered office address can be found on the Company Information page. |
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Going concern |
As set out in the strategic report, the directors believe that the company is experiencing good level of |
sales and profitability, in spite of COVID-19 lockdown, and is well placed to manage its business risks |
successfully. Accordingly, they have a reasonable expectation that the company has adequate resources to |
continue in operational existence for the foreseeable future. Thus they continue to adopt the going |
concern basis of accounting in preparing the financial statements. |
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Significant judgements and estimates |
In the application of the Company's accounting policies, which are described in note 2, management is |
required to make judgements, estimates and assumptions about the carrying values of assets and liabilities |
that are not readily apparent from other sources. The estimates and underlying assumptions are based on |
historical experience and other factors that are considered to be relevant. Actual results may differ from |
these estimates. |
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The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting |
estimates are recognised in the period in which the estimate is revised if the revision affects only that |
period, or in the period of the revision and future periods if the revision affects both current and future |
periods. |
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Depreciation |
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 |
re-assessed annually. They are amended when necessary to reflect current estimates, based on |
technological advancement, future investment, economic utilisation and the physical condition of the |
asset. |
RSR | LTD (REGISTERED NUMBER: 03766047) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Turnover |
Turnover is the amount derived from ordinary activities, and is measured at the fair value of the |
consideration received or receivable. Revenue is reduced for estimated customer returns, rebates and |
other similar allowances, and is stated net of VAT. |
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Revenue from the sale of diagnostic kits as specified in the strategic report is recognised when all the |
following conditions are satisfied: |
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•the Company has transferred to the buyer the significant risks and rewards of ownership of the goods; |
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•the Company retains neither continuing managerial involvement to the degree usually associated with |
ownership nor effective control over the goods sold; |
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•the amount of revenue can be measured reliably; |
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•it is probable that the economic benefits associated with the transaction will flow to the Company; and |
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•the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Specifically, revenue from the sale of goods is recognised when goods are delivered and legal title is |
passed. |
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Tangible fixed assets |
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Plant and machinery | - |
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Fixtures and fittings | - |
|
Motor vehicles | - |
|
Computer equipment | - |
|
|
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs, |
which comprise direct production costs and an appropriate allocation of production overheads, are based |
on the method most appropriate to the type of inventory class, but usually on a first-in-first-out basis. Net |
realisable value is based on the estimated selling price less any estimated completion or selling costs. |
|
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in |
which the related revenue is recognised. The amount of any write-down of stocks to net realisable value |
and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. |
The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of |
inventories recognised as an expense in the period in which the reversal occurs. |
|
RSR | LTD (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
|
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred 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 or deferred taxation assets and liabilities are not discounted. |
|
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted |
or substantively enacted by the balance sheet date. |
|
Deferred taxation |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the |
balance sheet date. |
|
Timing differences arise from the inclusion of income and expenses in tax assessments in periods |
different from those in which they are recognised in financial statements. Deferred tax is measured using |
tax rates and laws that have been enacted or substantively enacted by the year end and that are expected |
to apply to the reversal of the timing difference. |
|
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable |
that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
|
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
|
|
Foreign currencies |
Foreign currency transactions are translated into the functional currency using the spot exchange rates 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 exchange rates of monetary assets and liabilities denominated in foreign |
currencies are recognised in the profit and loss account except where deferred in other comprehensive |
income as qualifying cash flow hedges. |
Foreign exchange gains and losses that relate to borrowings are presented in the profit and loss account |
within"finance (expense)/income. All other foreign exchange gains and losses are presented in the the |
profit and loss account within "other operating (losses)/gains". |
|
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's |
pension scheme are charged to profit or loss in the period to which they relate. |
RSR | LTD (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
|
2. | ACCOUNTING POLICIES - continued |
|
Operating leases |
Payments (excluding costs for services and insurance) made under operating leases are recognised in the |
profit and loss account on a straight-line basis over the term of the lease unless the payments to the lessor |
are structured to increase in line with expected general inflation;in which case the payments related to the |
structured increases are recognised as incurred. Lease incentives are recognised in profit or loss over the |
term of the lease as an integral part of the total lease expense. |
|
Royalties |
The company receives and pays royalties. Royalty income and expenditure is recognised on an accruals |
basis in accordance with the substance of the relevant agreement. |
|
Interest income |
Interest income is recognised using the effective interest rate method. |
RSR | LTD (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
|
2. | ACCOUNTING POLICIES - continued |
|
Provisions and contingencies |
Provisions are recognised when the company has a present legal or constructive obligation as a result of |
past events; it is probable that an outflow of resources will be required to settle the obligation;and the |
amount of the obligation can be estimated reliably. |
Where there are a number of similar obligations, the likelihood that an outflow will be required in |
settlement is determined by considering the class of obligations as a whole. A provision is recognised |
even if the likelihood of an outflow with respect to any one item included in the same class of obligations |
may be small. |
Provision is not made for future operating losses |
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. |
|
Contingencies |
Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (i) it |
is not probable that there will be an outflow of resources or that the amount cannot be reliably measured |
at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of |
uncertain future events not wholly within the company's control. Contingent liabilities are disclosed in the |
financial statements unless the probability of an outflow of resources is remote. |
Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an |
inflow of economic benefits is probable. |
|
Financial instruments |
A financial asset or a financial liability is recognised only when the entity becomes a party to the |
contractual provisions of the instrument. |
|
1. Financial assets |
Basic financial assets, including trade and other receivables, cash and bank balances, are initially |
recognised at transaction price, unless the arrangement constitute 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 assets original effective rate. |
The impairment loss is recognised in profit or loss. |
|
2.Financial liabilities |
Basic financial liabilities, including trade, other payables and loans from fellow group companies 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. |
RSR | LTD (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
|
2. | ACCOUNTING POLICIES - continued |
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 rate. |
|
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each |
balance sheet date. If such indication exists, the recoverable amount of the asset, or the assets cash |
generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds |
its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a |
revalued amount where the impairment loss is a revaluation decrease. |
|
Related parties |
For the purposes of these financial statements, party is considered to be related to the Company if; |
(i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the |
company or exercise significant influence over the company in making financial and operating policy |
decisions, or has joint control over the company; |
(ii) the company and the party are subject to common control; |
(iii) the party is an associate of the company or a joint venture in which the company is a venturer; |
(iv) the party is a member of such an individual, or is an entity under the control, joint control or |
significant influence of such individuals; |
(v) the party is a close family member of a party referred to in (i) or is an entity under the control, joint |
control or significant influence of such individuals; |
(vi) the party is a post-employment benefit plan which is for the benefit of employees of the company or |
of any entity that is a related party of the company; or |
(vii) the party, or any member of a group of which it is part, provides key management personnel services |
to the company or its parent. |
|
Employee benefits |
Short-term employe benefits are recognised as an expense in the period in which they are incurred.The |
company provides a range of benefits to employees, including annual bonus arrangements, paid holiday |
arrangements, defined benefit contribution pension plans and medical costs |
|
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly |
liquid investments with original maturities of three months or less. |
RSR | LTD (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
|
3. | TURNOVER |
|
The turnover and profit before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by geographical market is given below: |
|
2019 | 2018 |
£ | £ |
United Kingdom | 1,092,162 | 959,324 |
Export | 19,931,320 | 19,012,757 |
|
|
|
4. | EMPLOYEES AND DIRECTORS |
2019 | 2018 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
2019 | 2018 |
|
122 | 118 |
|
2019 | 2018 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
Information regarding the highest paid director is as follows: |
2019 | 2018 |
£ | £ |
Emoluments etc |
|
|
Pension contributions to money purchase schemes |
|
|
RSR | LTD (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2019 | 2018 |
£ | £ |
Depreciation - owned assets |
|
|
Profit on disposal of fixed assets | ( |
) |
|
Auditors' remuneration |
|
|
Auditor's remuneration- Tax compliance and other services |
|
|
Rent |
|
|
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2019 | 2018 |
£ | £ |
Interest payable |
|
|
|
7. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2019 | 2018 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
Under/(Over) provision of tax | (27,844 | ) | - |
|
Tax on profit |
|
|
|
UK corporation tax has been charged at 19% (2018 - 19%). |
RSR | LTD (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
|
7. | TAXATION - continued |
|
Reconciliation of total tax 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: |
|
2019 | 2018 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
|
|
|
|
Effects of: |
Adjustments to tax charge in respect of previous periods | ( |
) |
|
Depreciation & Balancing charge | 36,916 | 44,169 |
Additional R&D claim | (495,886 | ) | (445,992 | ) |
Effect of Capital allowances | (44,990 | ) | (56,228 | ) |
Disallowable items | 78 | 412 |
|
Patent Box deduction | (1,032,799 | ) | (1,190,085 | ) |
|
|
Total tax charge | 2,217,164 | 1,697,877 |
|
8. | DIVIDENDS |
2019 | 2018 |
£ | £ |
Dividend Paid |
|
|
RSR | LTD (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
|
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 October 2018 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
|
|
( |
) |
|
( |
) |
At 30 September 2019 |
|
|
|
|
|
DEPRECIATION |
At 1 October 2018 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
Eliminated on disposal |
|
|
( |
) |
|
( |
) |
At 30 September 2019 |
|
|
|
|
|
NET BOOK VALUE |
At 30 September 2019 |
|
|
|
|
|
At 30 September 2018 |
|
|
|
|
|
|
10. | STOCKS |
2019 | 2018 |
£ | £ |
Stock of Raw Material |
|
|
|
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
|
|
Tax Recoverable |
|
|
Due from Group Companies | 4,041,696 | 3,006,134 |
Tax recoverable | - | 276,183 |
Prepayments |
|
|
|
|
|
Amounts owed by group undertakings, of which there is no formal agreement, are unsecured, interest |
free, have no fixed repayment date of repayment and are repayable on demand. |
RSR | LTD (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
|
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade creditors |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Other creditors | 15,040 | 15,040 |
Due to group undertakings | 24,684 | 12,809,172 |
Accrued Expenses | 95,226 | 393,888 |
Directors' loan accounts | 12,228 | 12,228 |
|
|
|
Amounts owed to group undertakings, of which there is no formal agreement, are unsecured, interest free, |
have no fixed repayment date of repayment and are payable on demand. |
|
13. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2019 | 2018 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
|
14. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
|
Ordinary | £1 | 100 | 100 |
|
15. | RESERVES |
Retained |
earnings |
£ |
|
At 1 October 2018 |
|
Profit for the year |
|
Dividends |
( |
) |
At 30 September 2019 |
|
RSR | LTD (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
|
16. | ULTIMATE PARENT COMPANY |
|
Dixondale Limited, which prepares group financial statements, is regarded by the directors as being the |
company's ultimate parent company. |
|
17. | CONTINGENT LIABILITIES |
|
Counter Indemnity given by the company's bankers, HSBC Bank for £40,000 to HM Customs and Excise. |
|
18. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
|
The following advances and credits to a director subsisted during the years ended 30 September 2019 and |
30 September 2018: |
|
2019 | 2018 |
£ | £ |
|
Balance outstanding at start of year |
|
|
Amounts repaid |
|
|
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
|
|
|
19. | RELATED PARTY DISCLOSURES |
|
|
2019 | 2018 |
£ | £ |
Purchases |
|
|
Amount due from related party |
|
( |
) |
|
|
2019 | 2018 |
£ | £ |
Amount due from related party |
|
|
Amount due to related party |
|
|
|
|
|
20. | POST BALANCE SHEET EVENTS |
|
There are no post balance sheet events. |
RSR | LTD (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2019 |
|
21. | ULTIMATE CONTROLLING PARTY |
|
The controlling party is Dr B Rees-Smith. |
|
22. | CONTINGENT ASSETS |
|
Regional Court of Düsseldorf held a guarantee dated 14th November 2016 for EUR 500,000 in |
connection with the company's claim against a competitor for contravening one of its patents in the |
manufacture of their products. |
This monies were released back to RSR Limited as the court judgement went in favour of RSR Limited. |
The legal costs have been awarded by the court and are provided for in these accounts. The compensation |
receivable, if any, has still not yet been determined and therefore no provision has been made for the |
compensation in these accounts. |