Accurascale profits

[BachelorBoy]

I am not an accountant.... so, does the increase in Accurascale UK shareholders' funds of £72,284 (2021 £119,805 minus 2020 £47,521) mean it made a profit of £72,284 after tax?

 

And if so, does that mean that Accurascale, proportionately, is more profitable than Hornby?

 

Thanks in advance.

 

BB

 

 

 

 

[Covkid]

I have no idea and really am not interested in company finances.

All I want is for manafacturers like Accurascale to advertise toys I want, I pay them a deposit, then they press the button at the factory.

A while later Accurascale invoice me, I pay the balance, then the parcel arrives.

 

The point is that I trust Accurascale and Rapido and Bachmann because they are clearly passionate about what they do and what they want to do. Their names are recognisable in the hobby and that works for me. 

 

As for the manufacturer the OP mentioned, I do not have trust in them. I am a modeller of the transition era from 1960 to around 1975 - principally of freight on the LMR and WR. Much of this freight traffic in my era of interests was conveyed in 16T and 21T coal wagons, 12T vans and various other hoppers and tanks etc. If I had to pick out two definitive wagons which formed most goods trains it is the mineral wagon and the covered goods van.  In my view Hornby (as self confessed industry leader) have neither of these vehicles as credible options in their catalogue and havn't had for decades.  Too busy whacking out increasingly expensive pretty pacifics whilst derelicting their duty of upgrading and retooling their wagon range.  This statement obviously isn't totally true now that the Hornby are releasing the brand new TTA in the catalogue, but you get the gist of it.     

 

So in my view Accurascale, Bachmann and Rapido will continue to take my modelling dollars whilst the rich collectors buy the collections of six "Flying Scotsmans"  and "big four" celeb train packs and such.  There is just one loco i nthe Hornby 2023 range which I am vaguely tempted by and that depends on how accurate it is - D3069.  The catalogue images show lots of brake pipes on the buffer beam but when D3069 carried wasp stripe green livery it would only have had a vacuum pipe.  So if I cannot trust Hornby to get their publicity correct, I am really not interested.  FWIW my books show 13069 as allocated to Woodford Halse from new, then renumbered to D3069 and being condemned in January 1973    

       

[jonhall]

ANY positive number would make them more profitable than Hornby?

 

Jon

[AY Mod]

9 minutes ago, jonhall said:

ANY positive number would make them more profitable than Hornby

 

Please make sure we are factual.

 

June 2022

 

Quote

Revenue (2021: £48.5m)

£53.7m

Operating profit (2021: £0.6m)

£1.0m

Reported profit before taxation (2021: £0.3m)

£0.6m

Underlying profit before taxation (2021: £1.5m)

£3.2m

Reported profit after taxation (2021: £1.4m)

£1.5m

 

[black and decker boy]

That reads to me that the booked value of assets in the form of plant / Mschinery & computer equipment (presume the CAD and tooling for models?) stocks (of models?) and debtors (which could be pre-orders and trade accounts with payments made after delivery) and when liabilities & creditors are deducted, the surplus has increased since last year. That may hinge on book value of items in stock and of the residual value of toolings etc so may not be actual profit realised in the form of hard cash.

 

This isn’t reported as profit but as retained earnings. It’s not clear if or what corporation tax & tax on profit is due / been paid.

 

Accurascale LTD is wholly owned by IRM who will no doubt have published more detailed accounts in Ireland.

 

overall looks positive though, increased turnover and increased surplus / profit.

Edited January 15, 2023 by black and decker boy
Typo

[irvinest]

It would indeed add up to that amount of profit in the UK. What is unclear however is that given the company is a wholly owned subsidiary of an Irish company, what did the Irish company make? Corporation tax is circa 12.5% in Ireland and substantially higher in the UK 19% and probably heading higher. If I  was them I would be importing in Ireland and transfer pricing out to the UK, thereby keeping more of the profit in the lower tax rate country, all the large companies used do it like Apple for instance, but i am not sure if Brexit has hampered that "tax planning" in anyway 

I am glad they are making a profit- selling fabulous models at cheaper prices than the competition. I like their customer service, and their availability to the enthusiast. I for one think the hobby has been better served by having them in it.

[Covkid]

3 minutes ago, irvinest said:

I am glad they are making a profit- selling fabulous models at cheaper prices than the competition. I like their customer service, and their availability to the enthusiast. I for one think the hobby has been better served by having them in it.

Wholeheartedly agree. more succinctly why buy Hornby 31 when you can order a far more accurate and realistic model with better lighting, decoder access and features, cheaper ?

 

No brainer

[The Stationmaster]

It is simply a version of short form accounts which is all the company needs to supply to Companies House.  That is in fact a form of accounts used by the majority of companies involved in model railways in Britain (both in manufacturing and sales) although some show further detail.  But it gives a reasonable guide to the health of a company and is perfectly adequate for getting an idea of how a company is doing - if you're interested.  For instance it was quite possible, with a bit of reading between the lines, to see where a certain past 'one man band'  might be heading some time before he got there although you often need to do more than just look at the published accounts.

 

Publicly listed companies, like Hornby, have to show much more in their Annual Reports and accounts .   What, to my mind, is far more worrying is the small companies who publish absolutely nothing which is (freely, ideally) available to those of us shopping in the UK marketplace - we simply do not know where they might be heading, especially if they're using our moneu to finance their business.

[John M Upton]

And this is relevant to railway modelling because....?

[adb968008]

21 minutes ago, John M Upton said:

And this is relevant to railway modelling because....?

Confidence.

 

Some manufacturers have bucketloads of it, others dont.

 

Nothing wrong in celebrating success. Our culture would do better if it did celebrate more of it, rather than knocking it, or commiserating the failures.

 

Well done Accurascale, the jobs not going to get easier, but they have shown how they can solidly land on the ground, set up camp and establish a chunk of territory in the market and still grow very quickly.

 

Of course that success comes down to a strong supporter, to whom we (customers) should all be grateful, as without him, it would not nearly be the same range we have today.

 

 

 

Edited January 15, 2023 by adb968008

[AY Mod]

43 minutes ago, irvinest said:

If I  was them I would be importing in Ireland and transfer pricing out to the UK, thereby keeping more of the profit in the lower tax rate country

 

I have a hunch they know what they're doing.

[adb968008]

1 minute ago, AY Mod said:

 

I have a hunch they know what they're doing.

When it comes to the emerald isle, ive never met a resident who didnt know what they were doing with money.

:-)

 

Ive been going 20 years, the last 5 years Dublins been growing enviously, and its accelerating faster.

 

Last week I was there for work for a day, went to an older pub called Mulligans, having been on the lash 5 hours after the company meeting, I couldnt face a guiness, so I asked for a vodka and orange… the answer was a very Irish Foxtrot Oscar.. how that place still has original 1920’s windows I dont know as I nearly went through them when I asked the barman for a second one.

 

 

[Roy Langridge]

8 minutes ago, adb968008 said:

When it comes to the emerald isle, ive never met a resident who didnt know what they were doing with money.

:-)

 

Ive been going 20 years, the last 5 years Dublins been growing enviously, and its accelerating faster.

 

Last week I was there for work for a day, went to an older pub called Mulligans, having been on the lash 5 hours after the company meeting, I couldnt face a guiness, so I asked for a vodka and orange… the answer was a very Irish Foxtrot Oscar.. how that place still has original 1920’s windows I dont know as I nearly went through them when I asked the barman for a second one.

 

 

Are we beginning to derive a direct correlation between intelligence and the consumption of Guiness?

 

Roy

Edited January 15, 2023 by Roy Langridge

[AY Mod]

4 minutes ago, Roy Langridge said:

Are we beginning to derive a direct correlation between intelligence and the consumption of Guiness?

 

 

Always my choice at the end of a day talking at a show.

[Roy Langridge]

2 minutes ago, AY Mod said:

 

 

Always my choice at the end of a day talking at a show.

My choice ever since I was found to be anaemic at the age of 13. Doctor suggested to Mum that the odd Guiness wouldn’t do me harm and may help. She bought 4 cans of Guiness extra, I hated it. However, in true mother fashion she made me have 1 a week… The rest is history, and a boost to Guiness’s profits. 
 

Roy

[AY Mod]

2 minutes ago, Roy Langridge said:

the odd Guiness wouldn’t do me harm

 

We do have a seriously good local medicine too.

 

 

[wasabi]

17 minutes ago, Roy Langridge said:

My choice ever since I was found to be anaemic at the age of 13. Doctor suggested to Mum that the odd Guiness wouldn’t do me harm and may help. She bought 4 cans of Guiness extra, I hated it. However, in true mother fashion she made me have 1 a week… The rest is history, and a boost to Guiness’s profits. 
 

Roy

At school in the late 60s, I remember a geography teacher who said his dad was on Guinness and was delivered a crate a week, dropped off by an ambulance.

 

Returning to Accurascale, I would say that they need to shift some stock and get the debtors to pay up.  However, given the distortions that Christmas introduces into the trade, I would have thought than a January year-end would give a lot more reasonable picture of their financials - as long as the retailers are able to pay the bills.

 

The problem with these simplified accounts  is that they lose a lot of usefulness without the turnover figure.

[McC]

Simplified accounts are very 'simple' indeed :) Any well run business will have work in progress valued with stock, or recognise preorder payments not as a sale, but a creditor, etc. Not our first rodeo but suffice to say that accurascale is doing just fine, is profitable and growing carefully :) 

[palmsticks]

57 minutes ago, AY Mod said:

 

We do have a seriously good local medicine too.

 

 

 

Thats the sort of stout that could really straighen all the curves, throw out all the fire and break a crank axle!

 

Edit: Just be wary of anyone called Thompson claiming they can improve it / make it go more places...

Edited January 15, 2023 by palmsticks

[JohnR]

2 hours ago, John M Upton said:

And this is relevant to railway modelling because....?

 

Since we discuss the finances of lots of companies on here, why should Accurascale miss out?

[ERIC ALLTORQUE]

3 hours ago, Covkid said:

No brainer

Who has one and collects and builds model railways,must have been an option in the brochure.........

[Accurascale Fran]

14 hours ago, adb968008 said:

When it comes to the emerald isle, ive never met a resident who didnt know what they were doing with money.

:-)

 

Ive been going 20 years, the last 5 years Dublins been growing enviously, and its accelerating faster.

 

Last week I was there for work for a day, went to an older pub called Mulligans, having been on the lash 5 hours after the company meeting, I couldnt face a guiness, so I asked for a vodka and orange… the answer was a very Irish Foxtrot Oscar.. how that place still has original 1920’s windows I dont know as I nearly went through them when I asked the barman for a second one.

 

 

I hope you paid Marks Models a visit just around the corner!

 

Mulligans was my after work pub in two previous jobs, with one Friday a month after work pints beginning at lunchtime. Many influenced purchases were made in Marks on the way home as a result!

 

Cheers!

 

Fran

[Super-Sloth]

As has been mentioned, very little can be gleaned from a company’s true status by looking at this kind of limited information. A good accountant, with enough forward planning, can put any number you like on a page, assuming you can generate the beer tokens in the first place. To that end, I think these kind of threads are little bit pointless, but I certainly don’t mind indulging in a good chuckle at the mental gymnastics they invariably elicit from some quarters. 
Unfortunately, to some, the word “profit” is apparently a dirty word? Not much you can do about that sadly… Those are the same “clever” people who will invariably call you an idiot for trying and an idiot when you succeed. I digress…

 

What is patently obvious is that these guys are incredibly successful at what they do and I think they have given the hobby a damn good shake up. 
I only hope that clear success has translated into a particularly special dilemma for each of them, in that, at some point, you really do have to decide *exactly* which colour to order that Ferrari in… ;-)

Cheers! 

 

-Jon.

 

 

 

 

 

Edited January 17, 2023 by Super-Sloth

[jjb1970]

Many years ago I heard a presentation by a green NGO fellow in Finland which has stuck in my mind ever since, I'll paraphrase it as 'if you want to get stinking rich by figuring out a way to clean up the Baltic and making $$$$$$$$$$$$s from it, be my guest, clean up the Baltic and get stinking rich from it'. I feel the same about models. If a manufacturer makes a good product at a price I'm happy to pay then I don't begrudge them making as much as they can from their endeavours. 

[Legend]

To be honest I'm not really bothered what level of profit they make , actually as I say that I want them to make a healthy profit to have incentive to keep going .

 

How we , the enthusiasts should judge them is whether we think we are getting value for money .  And I think on this count these guys are delivering . Just look at the detail on the Deltic , coming in at £160.  I haven't got one , but the 92 looks even to have bettered that at £185 .  This when others are delivering locos at £230.   My set of TPE coaches were very reasonably priced. 

 

So profit to us should be irrelevent . Look at what they are delivering and decide yourself on levels of detail and value for money.