REGISTERED NUMBER: |
BRADSHAW TAYLOR LTD. |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
REGISTERED NUMBER: |
BRADSHAW TAYLOR LTD. |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 | to | 3 |
Report of the Directors | 4 | to | 5 |
Report of the Independent Auditors | 6 | to | 8 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 | to | 25 |
BRADSHAW TAYLOR LTD. |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
14 All Saints Street |
Stamford |
Lincolnshire |
PE9 2PA |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their strategic report for the year ended 31 December 2022. |
REVIEW OF BUSINESS |
Strategic management |
The company's strategy and objectives are to develop individual brands within the United Kingdom, Europe and other markets. |
Business environment |
Trading remains constrained by the competitive environment in wholesale and retail sectors due to the on-going challenges faced by the economy with higher inflation, interest rates and the war in Ukraine. |
Business performance |
The board consider that the key performance indicators for the company are those that communicate the financial performance and strength of the company as a whole. The key financial highlights are as follows: |
2022 | 2021 | % |
£m | £m | change |
Revenue | 27.2 | 25.1 | 8.7% |
Gross profit | 12.2 | 11.1 | 9.5% |
Gross margin % | 44.7 | 44.3 | 0.9% |
EBITDA before exceptionals | 2.8 | (0.2 | ) | 1,862.5% |
Profit/(loss) on ordinary items before taxation | 0.6 | (1.3 | ) | 164.5% |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks arising from the company's activities are liquidity risk, currency risk, interest rate risk and credit risk. The board reviews and agrees policies for managing each of these risks and they are summarised below. |
Liquidity risk |
Liquidity risk is the risk that the company is unable to meet its payment obligations associated with its liabilities as they fall due. The company's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the company's reputation. The company determines its liquidity requirements by the use of cash flow forecasts. On at least an annual basis, the board reviews and approves any funding requirements of the company which they continue to monitor and review on an ongoing basis. |
Currency risk |
Currency risk is managed by appropriate use of forward currency contracts. |
Interest rate risk |
Interest rate risk is managed by regular review of fixed and variable rate facilities available from the company's bankers. |
Credit risk |
Credit risk is managed by constant monitoring of the creditworthiness of customers and by identifying and addressing any credit issues in a timely manner. |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) |
Environmental |
Over the last year we have built up our internal expertise to better understand the impact we have on the planet. We have been looking in detail at our supply chain and considering the raw materials we use in the manufacture of our products. Our product development team are assessing the composition of our clothes and accessories and looking at sourcing alternatives and more sustainable materials, whilst maintaining the highest quality of product. In particular we are seeking to use as many renewable and responsible natural fibres as we can in our manufacturing. |
Key suppliers have signed up to our Vendor Compliance Manual and Operations Guide which highlights our required ESG standards, including factory auditing. In the upcoming year we will build further on our vendor assessments and deepen our knowledge of the full supply cycle. Going forward, our objective is to determine a product specific carbon footprint measure, which will extend to our suppliers and the major fabric and trim vendors those suppliers work with in the manufacturing process. |
We constantly look to improve our business efficiency and reduce our impact on the planet. Specific areas of focus have been: |
- Business travel |
- Employee commuting |
- Electricity and gas (energy usage) |
- Vehicle fleet. |
- Materials used in our product collections |
- Vendor locations, fabric sources and ethics |
- Packaging reuse and recycling |
We set an ethos of being a responsible company, and we work hard to reduce waste in all its forms. |
Social |
We are committed to investing in our staff and where possible we promote from within and have a very local workforce. |
Whilst Covid-19 is not currently considered a threat, we remain vigilant and flexible, maintaining our remote working capabilities in all global locations and supporting staff who are unwell with fair sickness leave and pay. |
During the year we donated to various charitable causes including Room to Read, Atlantic Salmon Trust and other local charities. |
Governance |
The directors meet regularly on at least a monthly basis both in person and via video-calls to monitor operational performance and to make strategic decisions to address the macroeconomic environment and other challenges affecting the business. |
ON BEHALF OF THE BOARD: |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The directors present their report with the financial statements of the company for the year ended 31 December 2022. |
PRINCIPAL ACTIVITIES |
The principal activities of the company in the year under review were those of the sale of specialist clothing and footwear and group strategy and admin. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2022. |
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. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The company's principal financial instruments comprise cash, bank term borrowings, bank import loans and overdraft, trade debtors and trade creditors. |
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. |
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: |
- | 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. |
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. |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
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. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRADSHAW TAYLOR LTD. |
Opinion |
We have audited the financial statements of Bradshaw Taylor Ltd. (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2022 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. |
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. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the 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. |
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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BRADSHAW TAYLOR LTD. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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. |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with directors and other management obtained as part of the work required by auditing standards. We have also discussed with the directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. The potential impact of different laws and regulations varies considerably. |
Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of unusual material journal entries and challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. We carried out substantive tests on accounting estimates, including reviewing the methods and data used by management to make those estimates, reperforming the calculation and reviewing the outcome of current year estimates since the financial reporting date. |
Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and safety regulations, consumer rights and employment law. |
Our work included a review of relevant correspondence within the year for any evidence of non-compliance and reading minutes of meetings of those charged with governance. In addition, an assessment of the company's legal expenses and possible contingencies was performed. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
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 |
BRADSHAW TAYLOR LTD. |
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. |
for and on behalf of |
14 All Saints Street |
Stamford |
Lincolnshire |
PE9 2PA |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
REVENUE | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
10,529,658 | 12,652,883 |
1,634,376 | (1,543,502 | ) |
Other operating income | 4 |
OPERATING PROFIT/(LOSS) | 6 | ( |
) |
Exceptional items | 7 |
1,430,328 | (1,172,906 | ) |
Interest receivable and similar income |
1,551,555 | (1,149,011 | ) |
Interest payable and similar expenses | 8 |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 9 | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR | ( |
) |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | ( |
) |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Property, plant and equipment | 11 |
Investments | 12 |
CURRENT ASSETS |
Inventories | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Revaluation reserve | 23 |
Capital redemption reserve | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2021 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Bradshaw Taylor Ltd. is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
The company is a subsidiary of Cavell Taylor Holdings Limited. Consolidated financial statements of Cavell Taylor Holdings Limited can be obtained from: |
Companies House |
Crown Way |
Cardiff |
CF14 3UZ |
Preparation of consolidated financial statements |
The financial statements contain information about Bradshaw Taylor Ltd. as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Cavell Taylor Holdings Limited, 16 Mill Street, Oakham, Rutland, LE15 6EA. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
In the application of the company's accounting policies, management are required to make judgements, estimates and assumptions about the carrying value 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. |
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. |
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below. |
i) Stock provision: |
The company sells outdoor clothing and is subject to changing consumer demands and economic trends. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management consider the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods. |
ii) Bad debt provision |
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other receivables, management consider factors including the credit rating of the receivable, the aging profile of receivables and historical experience. The bad debt provision is netted off against the overall trade debtor amount. |
iii) Sales return provision |
The sales return provision is estimated on the basis of historical return and after date sales analysis. The provision is recorded to allocate the returns to the same period in which the revenue is recorded. A sales return provision has been recognised in accruals. |
Revenue |
Revenue represents amounts receivable for the supply of goods and services and is net of VAT and trade discounts. Product revenue is recognised on the delivery of products to wholesale customers and on the sale of products to retail customers. |
Goodwill |
Other intangible assets |
Patents and licences are carried at cost and are reviewed for impairment in value at each reporting date. |
Brands are held at cost less accumulated amortisation and impairment losses and are to be amortised evenly over their estimated useful life of 10 years. |
Property, plant and equipment |
Property, plant and equipment is held at cost less accumulated depreciation. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property | - 2% on cost (buildings only) |
Short leasehold | - 20% on cost |
Improvements to property | - 12.5% on cost |
Fixtures and fittings | - at varying rates between 10% and 33% on cost |
Motor vehicles | - 20% on cost |
The freehold property was valued on an open market basis by Moore & York Professional Services on 6th May 2008. On transition to FRS102 the directors opted to treat this valuation as the deemed cost and are now reporting under the cost model. |
Government grants |
Government grants are recognised when there is reasonable assurance that the grant will be received and any conditions attached will be complied with. Grants are recognised as income over the period necessary to match them with related costs, for which they are intended to compensate, on a systematic basis. |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Inventories |
Inventories are stated at the lower of cost and fair value less costs to complete and sell after making due allowance for slow moving and obsolete items. Cost includes the product cost, import duties and inward carriage costs. Inventories are accounted for on a first-in-first-out basis. |
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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the financial reporting date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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 the income statement in the period to which they relate. |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the income statement. |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. |
Such assets are subsequently carried at fair value and the changes in fair value are recognised in the income statement, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
Basic financial liabilities, including trade and other creditors, bank loans, loans from related companies and preference shares that are classified as debt, 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. |
Trade creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Derivative financial instruments |
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value through the income statement. |
The company uses forward exchange contracts to mitigate the company's exposure to foreign exchange risks. The fair value is determined using valuation techniques that utilise observable inputs. The key assumptions used in valuing the derivatives are the forward exchange rates. |
3. | REVENUE |
The revenue and profit (2021 - loss) before taxation are attributable to the principal activities of the company. |
An analysis of revenue by class of business is given below: |
2022 | 2021 |
£ | £ |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
3. | REVENUE - continued |
An analysis of revenue by geographical market is given below: |
2022 | 2021 |
£ | £ |
United Kingdom |
Europe | 394,367 | 2,502,650 |
Rest of the World | 303,071 | 141,853 |
4. | OTHER OPERATING INCOME |
2022 | 2021 |
£ | £ |
Rents received |
Management charges and sundry receipts | 127,200 | 535,150 |
Coronavirus Business Interruption Loan interest |
Coronavirus Job Retention Scheme grants |
304,224 | 782,469 |
5. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2022 | 2021 |
Directors | 10 | 10 |
Marketing, administration and warehouse | 123 | 137 |
2022 | 2021 |
£ | £ |
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: |
2022 | 2021 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
6. | OPERATING PROFIT/(LOSS) |
The operating profit (2021 - operating loss) is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Goodwill amortisation |
Brands amortisation |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
7. | EXCEPTIONAL ITEMS |
2022 | 2021 |
£ | £ |
Exceptional stock provisions | 358,636 | - |
Costs of termination of distribution agreement | 119,636 | - |
Redundancies | 30,000 | - |
Investment / loan impairments | - | 360,796 |
Exceptional royalty costs | - | 51,077 |
508,272 | 411,873 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank interest |
Bank loan interest |
Other interest paid |
9. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Deferred tax | ( |
) |
Tax on profit/(loss) | ( |
) |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
9. | TAXATION - continued |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2022 | 2021 |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of (2021 - |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Utilisation of tax losses | ( |
) |
Change in rate of deferred tax | - | 54,746 |
Total tax charge/(credit) | 270,298 | (148,554 | ) |
10. | INTANGIBLE FIXED ASSETS |
Patents |
and |
Goodwill | licences | Brands | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
AMORTISATION |
At 1 January 2022 |
Amortisation for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
11. | PROPERTY, PLANT AND EQUIPMENT |
Improvements |
Freehold | Short | to |
property | leasehold | property |
£ | £ | £ |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
Included within cost of freehold property is freehold land of £750,000 (2021: £750,000) which is not depreciated. |
12. | FIXED ASSET INVESTMENTS |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 January 2022 |
and 31 December 2022 | 884,019 |
NET BOOK VALUE |
At 31 December 2022 | 884,019 |
At 31 December 2021 | 884,019 |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
12. | FIXED ASSET INVESTMENTS - continued |
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Registered office: Klavermaten 49, 7472DD Goor, The Netherlands |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Klavermaten 49, 7472DD Goor, The Netherlands |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Klavermaten 49, 7472DD Goor, The Netherlands |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 1209 Orange Street, City of Wilmington 19801, County of New Castle, Delaware, USA |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 3rd Floor, 22420 Dewdney Trunk Road, Maple Ridge, British Colombia, Canada |
Nature of business: |
% |
Class of shares: | holding |
13. | INVENTORIES |
2022 | 2021 |
£ | £ |
Finished goods |
Inventories are recognised after provisions for impairment of £452,813 (2021: £374,000). |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Derivative financial instruments | - | 24,782 |
Prepayments and accrued income |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Trade creditors |
Amounts owed to group undertakings |
Other taxes and social security |
Other creditors |
Accruals and deferred income |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2022 | 2021 |
£ | £ |
Bank loans (see note 17) |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
A £1,000,000 loan repayable in instalments commenced in January 2019 with a term of 5 years. Interest on the loan is charged at 2% per annum over the Bank of England base rate. |
A £3,000,000 loan repayable in instalments commenced in May 2020 with a term of 6 years. Interest on the loan is charged at 3.99% per annum over the Bank of England base rate. |
A £2,500,000 loan repayable in instalments commenced in April 2022 with a term of 5 years. Interest on the loan is charged at 2.3% per annum over the Bank of England base rate. |
Short-term import loans totalling £12,173,945 (2021: £8,206,323) are due within 8 months (2021: 8 months) of the year end. |
18. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
2022 | 2021 |
£ | £ |
Bank loans |
Bank loans are secured by fixed and floating charges over all of the company's assets including freehold land and buildings. A director has also given personal guarantees of up to £1.2M. |
20. | FINANCIAL INSTRUMENTS |
The company has the following financial instruments: |
2022 | 2021 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Trade debtors | 2,312,886 | 1,693,788 |
Amounts owed by group undertakings | 15,058,084 | 9,766,096 |
Other debtors | 282,507 | 419,567 |
Financial liabilities measured at amortised cost |
Bank loans and overdrafts | 16,932,350 | 11,432,832 |
Trade creditors | 8,982,468 | 3,436,301 |
Amounts owed to group undertakings | 8,238,385 | 6,483,860 |
Other creditors | 12,879 | 17,280 |
The total interest income and expense for financial assets and financial liabilities that are not measured at fair value through the Income Statement was £121,227 (2021: £23,895) and £646,818 (2021: £254,185) respectively. |
Derivative financial instruments |
The company enters into forward foreign currency contracts to mitigate the exchange rate risk for certain foreign currency payables. At 31 December 2022 there were no outstanding contracts (2021: contracts maturing within within 4 months of the year end). The company was not committed to purchase any currency (2021: US$5,050,000 and €2,045,000) for a fixed Sterling amount. |
At 31 December 2021 a derivative asset of £24,782 was recognised in respect of the above foreign currency contracts and released to the Income Statement upon maturity of the contracts in 2022. |
21. | PROVISIONS FOR LIABILITIES |
2022 | 2021 |
£ | £ |
Deferred tax |
Tax losses carried forward | ( |
) | ( |
) |
Accelerated capital allowances | 355,474 | 385,995 |
Property revaluations | 14,000 | 14,000 |
309,106 | 38,808 |
Deferred |
tax |
£ |
Balance at 1 January 2022 |
Charge to Income Statement during year |
Balance at 31 December 2022 |
Deferred taxation provisions are made at a rate of 25% (2021: 25%) in line with government legislation on future corporation tax rates. |
The reversal of deferred taxation timing differences is not expected to be significant in the forthcoming year. |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | 1 | 6,183 | 6,183 |
23. | RESERVES |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2022 | 5,751,349 |
Profit for the year |
At 31 December 2022 | 6,385,788 |
Retained earnings |
The retained earnings reserve represents cumulative profit and loss net of dividends and other adjustments. |
Revaluation reserve |
The aggregate surplus on re-measurement of freehold properties, net of associated deferred tax, is transferred to a separate non-distributable revaluation reserve in order to assist with the identification of profits available for distribution. |
Capital redemption reserve |
The capital redemption reserve is a non-distributable reserve into which amounts are transferred following the redemption or purchase of the company's own shares out of distributable profits. |
24. | CONTINGENT LIABILITIES |
The company has a contingent liability in connection with its bank having provided a guarantee in the sum of £400,000 to HM Revenue and Customs. |
25. | CAPITAL COMMITMENTS |
2022 | 2021 |
£ | £ |
Contracted but not provided for in the |
financial statements |
26. | RELATED PARTY DISCLOSURES |
Key management personnel of the entity |
Key management personnel compensation is considered to be the same as reported under directors' remuneration disclosed in note 5. |
2022 | 2021 |
£ | £ |
Sales & recharges invoiced to related parties |
Purchases & recharges incurred from related parties |
Amounts due from related parties at year end | 202,361 | 96,506 |
Amounts due to related parties at year end | 182,880 | 17,280 |
Fixed asset additions recharged to related parties | - | 177,368 |
BRADSHAW TAYLOR LTD. (REGISTERED NUMBER: 00301933) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
27. | SUBSEQUENT EVENTS |
Subsequent to the Statement of Financial Position date but prior to the date of issue of these financial statements, the company's two retail stores (Cavells and The Epicente) were sold as a going concern in a non-cash transaction. |
28. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is C E B Cavell-Taylor. |