REGISTERED NUMBER:
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RSR LIMITED |
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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 2020 |
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REGISTERED NUMBER:
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RSR LIMITED |
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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 2020 |
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RSR LIMITED (REGISTERED NUMBER: 03766047) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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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 | 7 |
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Income Statement | 10 |
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Balance Sheet | 11 |
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Statement of Changes in Equity | 12 |
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Cash Flow Statement | 13 |
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Notes to the Cash Flow Statement | 14 |
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Notes to the Financial Statements | 16 |
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RSR LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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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 |
SOUTH GLAMORGAN |
CF14 2DX |
RSR LIMITED (REGISTERED NUMBER: 03766047) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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The directors present their strategic report for the year ended 30 September 2020. |
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PRINCIPAL ACTIVITIES AND REVIEW OF BUSINESS |
The principal activity of the company 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 10. Its results and future prospects are considered to be satisfactory. |
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Financial performance in the year |
The company recorded a reduction in turnover by 2.49% which was in line with expectations from management. |
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The company achieved a gross profit margin of 62.6% (2019: 70.7%). This has been as a result of fluctuations in exchange rates despite of similar productivity and strong control on input costs compared to the prior year. 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 11 shows that the company's net assets have increased by £1m when compared to the prior year. |
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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 reconcilability 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. |
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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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Future Developments |
The directors aim to maintain the management policies which have resulted in the development of the company in recent years. They believe the company is well placed in the market and will continue to trade successfully. |
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KEY PERFORMANCE INDICATORS |
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The directors consider the following to be key performance indicators of the company: |
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Year ended 2020 | Year ended 2019 |
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Turnover | £20,499,330 | £21,023,482 |
Gross profit margin % | 62.6% | 70.7% |
Net Profit (before tax) | £17,388,947 | £19,903,625 |
Net assets | £22,581,961 | £21,570,898 |
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RSR LIMITED (REGISTERED NUMBER: 03766047) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The management team 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 periodically. |
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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, competition is a perpetual risk to the company as is the ability of suppliers to keep pace with the competition. The company manages this risk by providing fast response times in fulfilling sales orders and by maintaining strong relationships with key customers and suppliers globally. |
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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 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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Interest rate risks- These risks are managed by regular and consistent monitoring of interest rates. |
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Financial risk management - The main financial risks arising from the company's activities are credit risk, liquidity risk, foreign exchange risk, interest rate risk, price risk and cash flow risk. |
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Credit risk- The company limits its exposure to credit risk. It is the company's policy to assess the credit risk of all customers before entering into a trading relationship and to ensure that credit risk is kept to a minimum. |
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Liquidity risk- The operations of the company are financed through robust management of the company's working capital requirement and treasury function. The company's policy to manage liquidity risk and cash flow risk is to ensure that adequate funds are held in readily accessible current accounts to meet the working capital requirements of the company. The directors of the company monitor these risks carefully and, when appropriate, steps are taken to ensure liquidity risk and cash flow risk are reduced. |
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Foreign exchange risk - The company sources products from 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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Price risk- The company does not enter into hedging arrangements however the directors consider the company exposure to price risk as being low. |
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RSR LIMITED (REGISTERED NUMBER: 03766047) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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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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ON BEHALF OF THE BOARD: |
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8 June 2021 |
RSR LIMITED (REGISTERED NUMBER: 03766047) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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The directors present their report with the financial statements of the company for the year ended 30 September 2020. |
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DIVIDENDS |
Interim dividends totalling £ |
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The total distribution of dividends for the year ended 30 September 2020 will be £
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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 2019 to the date of this report. |
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GOING CONCERN |
The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. In making his assessment, the directors have reviewed the balance sheet, the likely future cashflows of the business and has considered the facilities that are available to the company along with their continued support. |
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At the date of approving the financial statements the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and that the going concern basis of accounting remains appropriate. The directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
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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 LIMITED (REGISTERED NUMBER: 03766047) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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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; |
- | 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 LIMITED |
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Opinion |
We have audited the financial statements of RSR LIMITED (the 'company') for the year ended 30 September 2020 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: |
- | give a true and fair view of the state of the company's affairs as at 30 September 2020 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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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: |
- | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
- | 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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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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RSR LIMITED |
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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: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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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: |
- | 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 six, 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. |
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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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
RSR LIMITED |
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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 |
SOUTH GLAMORGAN |
CF14 2DX |
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RSR LIMITED (REGISTERED NUMBER: 03766047) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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30.9.20 | 30.9.19 |
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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9,631,638 | 11,456,362 |
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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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17,392,490 | 19,908,837 |
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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 LIMITED (REGISTERED NUMBER: 03766047) |
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BALANCE SHEET |
30 SEPTEMBER 2020 |
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30.9.20 | 30.9.19 |
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
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RSR LIMITED (REGISTERED NUMBER: 03766047) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 October 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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Changes in equity |
Dividends | - |
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Total comprehensive income | - |
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Balance at 30 September 2020 |
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RSR LIMITED (REGISTERED NUMBER: 03766047) |
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CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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30.9.20 | 30.9.19 |
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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Net cash from financing activities |
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Decrease in cash and cash equivalents | (242,811 | ) | (9,229,421 | ) |
Cash and cash equivalents at beginning of
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2 |
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23,528,511 |
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Cash and cash equivalents at end of year | 2 | 14,066,279 | 14,299,090 |
RSR LIMITED (REGISTERED NUMBER: 03766047) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
30.9.20 | 30.9.19 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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Profit on disposal of fixed assets |
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Government grants | ( |
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Finance costs | 3,543 | 5,212 |
Finance income | (72,065 | ) | (54,878 | ) |
17,486,600 | 20,047,870 |
Increase in stocks | ( |
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Decrease/(increase) in trade and other debtors |
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Increase/(decrease) 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 2020 |
30.9.20 | 1.10.19 |
£ | £ |
Cash and cash equivalents | 14,066,279 | 14,299,090 |
Year ended 30 September 2019 |
30.9.19 | 1.10.18 |
£ | £ |
Cash and cash equivalents | 14,299,090 | 23,528,511 |
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RSR LIMITED (REGISTERED NUMBER: 03766047) |
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NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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3. | ANALYSIS OF CHANGES IN NET FUNDS |
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At 1.10.19 | Cash flow | At 30.9.20 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 14,299,090 | (232,811 | ) | 14,066,279 |
14,299,090 | (232,811 | ) | 14,066,279 |
Total | 14,299,090 | (232,811 | ) | 14,066,279 |
RSR LIMITED (REGISTERED NUMBER: 03766047) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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1. | STATUTORY INFORMATION |
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RSR LIMITED is a
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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. |
RSR LIMITED (REGISTERED NUMBER: 03766047) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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2. | ACCOUNTING POLICIES - continued |
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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. |
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Impairment of debtors |
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, aging profile of the debtor as well as historical experience. |
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In assessing the recoverability of balances with fellow group and connected companies, management periodically reviews the financial performance of these entities to gain assurance as to the recoverability. |
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Stock provisioning |
The company designs, manufactures and sells medical diagnostic equipment. An obsolete stock provision is recognised with reference to the expiry date of perishable items used in the manufacturing process. |
RSR LIMITED (REGISTERED NUMBER: 03766047) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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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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Royalty income |
Royalty income is recognised on an accruals basis in accordance with the substance of the relevant agreement. |
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Interest income |
Interest income is recognised on an accruals basis. |
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Tangible fixed assets |
Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and accumulated impairment losses. |
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Depreciation is provided at the following annual rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives: |
Plant & machinery - 25% on cost |
Fixtures and fittings - 20% on cost |
Motor vehicles- 25% on cost |
Computer equipment - 33% on cost |
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At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
RSR LIMITED (REGISTERED NUMBER: 03766047) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs comprise direct production costs and 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. |
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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. |
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An assessment of any slow moving or obsolete stock provision is made with reference to the expiry dates prescribed on materials. |
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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. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
|
RSR LIMITED (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
|
2. | ACCOUNTING POLICIES - continued |
|
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. |
|
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. |
RSR LIMITED (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
|
2. | ACCOUNTING POLICIES - continued |
|
Provisions |
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. |
|
Cash & Cash equivalents |
Cash and cash equivalents are basic financial instruments and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
|
Financial instruments |
The company has elected to apply the provisions of Section 11 "Basic Financial Instruments". |
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. Financial assets are liabilities are offset, with 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. |
|
Basic financial assets |
Basic financial assets, which include trade and other debtors, loans to related companies and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest. |
|
RSR LIMITED (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
|
2. | ACCOUNTING POLICIES - continued |
Basic financial liabilities |
Basic financial liabilities, including trade and other creditors, loans to related companies and bank loans are initially recognised at transaction price unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. |
|
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, an entity is considered a related party 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 employee 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 |
|
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: |
|
30.9.20 | 30.9.19 |
£ | £ |
United Kingdom | 1,029,501 | 1,092,162 |
Export | 19,469,829 | 19,931,320 |
|
|
RSR LIMITED (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
|
4. | EMPLOYEES AND DIRECTORS |
30.9.20 | 30.9.19 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
30.9.20 | 30.9.19 |
|
|
|
|
30.9.20 | 30.9.19 |
£ | £ |
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: |
30.9.20 | 30.9.19 |
£ | £ |
Emoluments etc |
|
|
Pension contributions to money purchase schemes |
|
|
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
30.9.20 | 30.9.19 |
£ | £ |
Depreciation - owned assets |
|
|
Profit on disposal of fixed assets |
|
( |
) |
Auditors' remuneration |
|
|
Rent |
|
|
RSR LIMITED (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.9.20 | 30.9.19 |
£ | £ |
Interest payable |
|
|
|
7. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.9.20 | 30.9.19 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
Under/(Over) provision of tax | (17,146 | ) | (27,844 | ) |
|
Tax on profit |
|
|
|
UK corporation tax has been charged at 19% (2019 - 19%). |
|
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: |
|
30.9.20 | 30.9.19 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2019 - |
|
|
|
Effects of: |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Depreciation & Balancing charge | 33,473 | 36,916 |
Additional R&D claim | (482,636 | ) | (495,886 | ) |
Effect of Capital allowances | (105,583 | ) | (44,990 | ) |
Disallowable items | 8 | 78 |
|
Patent Box deduction | (865,560 | ) | (1,032,799 | ) |
|
Group relief | (488,572 | ) | - |
Total tax charge | 1,377,884 | 2,217,164 |
RSR LIMITED (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
|
8. | DIVIDENDS |
30.9.20 | 30.9.19 |
£ | £ |
Dividend Paid |
|
|
|
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 October 2019 |
|
|
|
|
|
Additions |
|
|
|
|
|
At 30 September 2020 |
|
|
|
|
|
DEPRECIATION |
At 1 October 2019 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
At 30 September 2020 |
|
|
|
|
|
NET BOOK VALUE |
At 30 September 2020 |
|
|
|
|
|
At 30 September 2019 |
|
|
|
|
|
|
10. | STOCKS |
30.9.20 | 30.9.19 |
£ | £ |
Stock of Raw Material |
|
|
|
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.9.20 | 30.9.19 |
£ | £ |
Trade debtors |
|
|
Tax recoverable |
|
|
Due from group companies | 3,695,744 | 4,041,696 |
Tax |
|
|
Prepayments |
|
|
|
|
RSR LIMITED (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
|
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.9.20 | 30.9.19 |
£ | £ |
Trade creditors |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Other creditors | 48,653 | 15,040 |
Due to group undertakings | 24,684 | 24,684 |
Accrued expenses | 148,544 | 95,226 |
Directors' loan accounts | 12,228 | 12,228 |
|
|
|
13. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
30.9.20 | 30.9.19 |
£ | £ |
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 | 30.9.20 | 30.9.19 |
value: | £ | £ |
|
Ordinary | £1 | 100 | 100 |
|
15. | RESERVES |
Retained |
earnings |
£ |
|
At 1 October 2019 |
|
Profit for the year |
|
Dividends |
( |
) |
At 30 September 2020 |
|
RSR LIMITED (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
|
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. | 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. |
|
19. | RELATED PARTY - DIRECTORS |
|
The following loan from a director subsisted during the years ended 30 September 2020 and 30 September 2019: |
|
30.9.20 | 30.9.19 |
£ | £ |
|
Balance outstanding at start of year |
|
|
Amounts repaid |
|
|
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
|
|
|
The above loan to the company is interest free and repayable on demand and included within creditors due within one year. (2019: creditors due within one year). |
RSR LIMITED (REGISTERED NUMBER: 03766047) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2020 |
|
20. | RELATED PARTY DISCLOSURES |
|
Amounts owed by and to 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. |
|
The company has taken advantage of the exemptions available under FRS 102 section 33.1A and has not disclosed transactions with wholly owned subsidiaries of immediate parent company Dixondale Limited. |
|
The company sold goods of £3,345,877 to a fellow subsidiary and received £1,902,479 of royalty income from subsequent resale of these products from the fellow subsidiary company. As at 30th September 2020, £1,296,023 was owed from the fellow subsidiary from the sale of goods and £534,003 relating to royalties. |
|
The company sold goods of £4,421,177 and made purchases of £136,302 from a company which the ultimate parent has a vested interest in and meets the definition of an associate. As at 30th September 2020, £817,070 was owed from the connected company from the sale of goods. |
|
The company sold goods of £727,164 to a company which the ultimate parent has a vested interest in and meets the definition of an associate. As at 30th September 2020, £175,933 was owed from the connected company from the sale of goods. |
|
21. | POST BALANCE SHEET EVENTS |
|
Within note 2 the director has considered the impact of Covid-19 on the operations of the entity and the entities ability to continue as a going concern. The directors are confident that the entity has adequate resources to continue in operational existence for the foreseeable future. |
The director considers this a non-adjusting post balance sheet event. |
|
22. | ULTIMATE CONTROLLING PARTY |
|
The controlling party is Dr B Rees-Smith. |