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Registered number: 05423920













BGRP Limited

Annual report

30 April 2023




 
BGRP Limited
 
 
Company information


Directors
N P Armstrong 
A J Atkins 
M Dolder 
D R Pinchard 
P M I Short 
H L Svensson 
C Wilkinson 




Registered number
05423920



Registered office
Unit 3
Easter Park

Nelson Park West

Cramlington

Northumberland

NE23 1WQ




Independent auditor
UNW LLP
Chartered Accountants

Citygate

St James' Boulevard

Newcastle upon Tyne

NE1 4JE





 
BGRP Limited
 

Contents



Page
Strategic report
 
1 - 2
Directors' report
 
3
Directors' responsibilities statement
 
4
Independent auditor's report to the members of BGRP Limited
 
5 - 8
Statement of comprehensive income
 
9
Balance sheet
 
10
Statement of changes in equity
 
11
Notes to the financial statements
 
12 - 27


 
BGRP Limited
 
 
Strategic report
Year ended 30 April 2023

The directors present their strategic report for the financial year ending 30th of April 2023.

Introduction
 
BGRP Limited operates across the UK and EU as a leading manufacturer and retailer of beanbags and soft furnishings.

Business review
 
The net assets of BGRP Limited as at 30 April 2023 were £5.8m (2022: £5.8m).
Turnover in the year increased by 14.1% to £11.2m (2022: £9.9m) whilst operating profit reduced from £1.3m to zero. 
The growth in turnover resulted from the introduction of additional channels and was helped by the opening of our Hamburg site mid-year. Operating profit was adversely impacted by exceptional costs relating to legal and set up costs of the new German operation. 

Key performance indicators
 
The Board monitors progress against the overall company strategy and trading by reference to KPIs, the principal measures being turnover, EBITDA, operating profit, working capital and cashflow. These can be seen in the attached financial statements.
The following table provides a reconciliation from operating profit to EBITDA and the calculation of EBITDA:  

2023
2022
      £000
      £000
Operating profit

3

1,305
 
Depreciation

104

87
 
Amortisation

21

9
 
EBITDA

128

1,401
 

Principal risks and uncertainties
 
Macro-economic factors including the war in Ukraine affected procurement during the year and resulted in high cost inflation in some areas. 
There is a risk that any disruption to supply chain could impact the ability to manufacture and distribute products. The business mitigates this by reducing reliance on single suppliers and establishing long term supplier relationships. 
The company targets growth in existing markets using its core skills. There is a risk that the business is not as efficient or effective as key  new relationships are established. The risk is mitigated by regular review of new activities to ensure resources are deployed effectively.
  
Future developments
 
We have a plan to continue expansion in both the UK and EU. We expect business efficiency to improve as the business scales. 

1

 
BGRP Limited
 

Strategic report (continued)
Year ended 30 April 2023

Stakeholder engagement

We endeavour to listen to our people, provide feedback and keep them informed and engaged. Successful performance is delivered through a high level of engagement ensuring our people share the company’s core values and feel supported by our culture. 
Dialogue with suppliers is important to mitigate supply chain risk and to ensure the most cost effective solutions and reliable products and services. We continue to investigate more sustainable ways to achieve our business requirements.
We support local charities and support our people to participate in local community events to raise funds to support those charities.
The company is a wholly owned subsidiary of BGRP Holdings Limited, a UK incorporated business owned by Comhar Capital and management. Monthly reporting of performance is discussed by management and Comhar.
Lenders to the business provide a significant source of capital to enable the business to be successful and finance activities. In this process they participate as investors in and supporters of the business. We regularly share financial and operational data with lenders.


This report was approved by the board on 22 February 2024 and signed on its behalf by:



M Dolder 
Director

2

 
BGRP Limited
 

 
Directors' report
Year ended 30 April 2023

The directors present their report and the financial statements for the year ended 30 April 2023.

Results and dividends

The profit for the year, after taxation, amounted to £2,112 (2022: £1,268,270).

A dividend of £nil (2022: £nil) was paid during the year. The directors do not recommend a final dividend in respect of the year.

Directors

The directors who served during the year and up to the date of signing the financial statements were:

N P Armstrong 
A J Atkins 
M Dolder 
D R Pinchard (appointed 30 May 2022)
P M I Short (resigned 13 January 2024)
I R Simpson (resigned 30 May 2022)
H L Svensson  
C Wilkinson 

Matters covered in the strategic report

Future developments, which otherwise would be disclosed in the directors' report are instead set out in the strategic report as permitted by Section 414C(11) of the Companies Act 2006.

Disclosure of information to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Auditor

Pursuant to section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and UNW LLP will therefore continue in office.

This report was approved by the board on 22 February 2024 and signed on its behalf by:
 





M Dolder
Director

3

 
BGRP Limited
 
 
Directors' responsibilities statement
Year ended 30 April 2023

The directors are responsible for preparing the strategic report, the directors' report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

4

 
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Independent auditor's report to the members of BGRP Limited

Opinion


We have audited the financial statements of BGRP Limited ('the company') for the year ended 30 April 2023, which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 30 April 2023 and of its loss 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 'Auditor's 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 United Kingdom, including the Financial Reporting Council'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.


5

 
img75d5.png
 

 
Independent auditor's report to the members of BGRP Limited (continued)

Other information


The other information comprises the information included in the annual report other than the financial statements and  our auditor's report thereon.  The directors are responsible for the other information contained within the annual report.  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. 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 course of 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.


Opinion 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report 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 directors' report.


We have nothing to report in respect of the following matters in relation to which 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.


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 4, 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 is 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.


6

 
img53e7.png
 

 
Independent auditor's report to the members of BGRP Limited (continued)

Auditor's 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 an auditor's report 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of law and regulations that could reasonably be expected to have a material effect on the financial statements from our general and sector experience and through discussions with the directors and other management (as required by Auditing Standards) and from inspection of the company's legal correspondence and we discussed with the directors and other management the policies and procedures in place regarding compliance with the laws and regulations. We communicated identified laws and regulations throughout our audit team and remained alert to any indications of non-compliance throughout the audit.
Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect; health and safety, employment law, data protection, environmental law and certain aspects of company legislation, recognising the nature of the company's activities. Auditing Standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance material to the financial statements.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 auditor's report.


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 2006Our 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 an auditor's report 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.


7

 
img0331.png
 

 
Independent auditor's report to the members of BGRP Limited (continued)




Nicola Coleman BSc(Hons) BFP FCA (Senior Statutory Auditor)
for and on behalf of UNW LLP, Statutory Auditor
Chartered Accountants
Newcastle upon Tyne

22 February 2024
8

 
BGRP Limited
 
 
Statement of comprehensive income
Year ended 30 April 2023

2023
2022
Note
£
£

Profit and loss account
  

Turnover
 5 
11,241,380
9,854,962

Cost of sales
  
(7,056,480)
(6,071,772)

Gross profit
  
4,184,900
3,783,190

Administrative expenses
  
(3,463,293)
(2,348,700)

Exceptional administrative expenses
 13 
(986,374)
(135,832)

Other operating income
 6 
267,967
6,840

Operating profit
 7 
3,200
1,305,498

Interest receivable and similar income
 10 
58
74

Interest payable and similar expenses
 11 
(156,955)
-

(Loss)/profit before tax
  
(153,697)
1,305,572

Tax on (loss)/profit
 12 
155,809
(37,302)

Profit for the financial year
  
2,112
1,268,270

There was no other comprehensive income for 2023 (2022: £nil).

The notes on pages 12 to 27 form part of these financial statements.

9

 
BGRP Limited


Balance sheet
At 30 April 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
74,964
36,690

Tangible assets
 15 
1,183,826
383,435

Investments
 16 
23,155
-

  
1,281,945
420,125

Current assets
  

Stocks
 17 
1,171,494
1,213,578

Debtors
 18 
6,276,319
5,115,802

Cash at bank and in hand
  
1,552,272
476,954

  
9,000,085
6,806,334

Creditors: amounts falling due within one year
 19 
(2,817,592)
(1,336,033)

Net current assets
  
 
 
6,182,493
 
 
5,470,301

Total assets less current liabilities
  
7,464,438
5,890,426

Creditors: amounts falling due after more than one year
 20 
(1,572,917)
-

Provisions for liabilities
  

Deferred tax
 22 
(58,281)
(59,298)

Net assets
  
5,833,240
5,831,128


Capital and reserves
  

Called up share capital 
 23 
100
100

Profit and loss account
 24 
5,833,140
5,831,028

Total equity
  
5,833,240
5,831,128


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 22 February 2024.




M Dolder
Director

Company registered number: 05423920
The notes on pages 12 to 27 form part of these financial statements.

10

 
BGRP Limited
 

Statement of changes in equity
Year ended 30 April 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 May 2021
100
4,562,758
4,562,858



Profit and total comprehensive income for the year
-
1,268,270
1,268,270



At 1 May 2022
100
5,831,028
5,831,128



Profit and total comprehensive income for the year
-
2,112
2,112


At 30 April 2023
100
5,833,140
5,833,240


The notes on pages 12 to 27 form part of these financial statements.

11

 
BGRP Limited
 
 

Notes to the financial statements
Year ended 30 April 2023

1.


General information

The principal activity of the company is the manufacture and distribution of bean bags. 
The company is a private company, limited by shares, incorporated in the United Kingdom and registered in England and Wales. The address of the registered office is shown on the company information page of this report. 

2.


Statement of compliance

The financial statements have been prepared in accordance with the United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland' ('FRS 102') and the Companies Act 2006. 

3.Accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

  
3.1

Basis of preparation of financial statements

These financial statements are the company's separate financial statements. The company is exempt by virtue of section 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statements, on the basis that it is itself a subsidiary undertaking and is included in the consolidated financial statements of its parent undertaking, BGRP Holdings Limited, whose registered address is 3 Easter Park, Nelson Park West, Baker Road, Cramlington, Northumberland, NE23 1WQ.
The financial statements are prepared on a going concern basis and under the historical cost convention. They are presented in pounds sterling and rounded to the nearest pound. 
The preparation of financial statements in conformity with FRS 102 required the use of certain critical accounting estimates. It also required management to exercise judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 4. 

  
3.2

Reduced disclosures

FRS 102 allows a qualifying entity certain disclosure exemptions. The company meets the definition of a qualifying entity and has taken advantage of the exemptions relating to certain financial instruments disclosures, the disclosure of key management personnel compensation and the preparation of a cash flow statement. The consolidated financial statements of BGRP Holdings Limited include the equivalent disclosures and a consolidated cash flow statement. Copies of BGRP Holdings Limited consolidated financial statements can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ. 

12

 
BGRP Limited
 

 
Notes to the financial statements
Year ended 30 April 2023

3.Accounting policies (continued)

  
3.3

Going concern

The company meets its working capital requirements through operating cash flows, supported by significant cash balances.
The directors have prepared financial forecasts which indicate that the company will be able to meet its liabilities as they fall due in the normal course of business for at least the next twelve months following approval of these financial statements. Accordingly, they continue to prepare the financial statements on a going concern basis. 

  
3.4

Revenue recognition

Turnover
Turnover is measured at fair value of the consideration of received or receivable for goods supplies and services rendered, net of discounts and excluding Value Added Tax. 
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. 
Government grants
Government grants are recognised on the accruals basis. Grants relating to expenditure on tangible fixed assets are credited to the profit and loss account at the same rate as the depreciation on the assets to which the grant relates. Grants of revenue nature are credited to the profit and loss account over the same period as the related expenditure is incurred. Grant monies received but deferred to future periods are included on the balance sheet within creditors. 
Interest receivable and similar income
Interest receivable and similar income is recognised on an accruals basis. 

  
3.5

Employee benefits

Short-term benefits
Short-term benefits, including holiday pay and other similar non-monetary benefits are recognised as an expense in the period in which the employee's entitlement to the benefit accrues. 
Defined contribution pension plan
The company operates a defined contribution pension plan for its employees. Contributions are recognised as an expense when they fall due. Amounts due but not yet paid are included within creditors on the balance sheet. The assets of the plan are held seperately from the company in independently administered funds. 

  
3.6

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominates in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account. 

13

 
BGRP Limited
 

 
Notes to the financial statements
Year ended 30 April 2023

3.Accounting policies (continued)

  
3.7

Research and development

Research and development expenditure is written off to the profit and loss account in the period in which it is incurred. 

  
3.8

Operating leases

All of the company's leasing arrangements are 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 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 received are recognised in profit and loss over the term of the lease and an integral part of the total lease expense.

 
3.9

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the company but are presented separately due to their size or incidence.

  
3.10

Borrowing costs

All borrowing costs are recognised in the profit and loss account in the period in which they are incurred.

  
3.11

Taxation

The taxation expense for the year comprises current and deferred tax and is recognised in the profit and loss account. 
Current tax is the amount of corporation tax payable in respect of the taxable profit for the current or prior years. It is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date. 
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous years and arises from 'timing differences' (where transactions or events are included in the financial statements in periods different from those in which they are assessed for tax). Deferred tax is recognised in respect of all timing differences, except that unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probably that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. 
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. 

14

 
BGRP Limited
 

 
Notes to the financial statements
Year ended 30 April 2023

3.Accounting policies (continued)

  
3.12

Intangible fixed assets and amortisation

Intangible fixed assets are stated at cost, less accumulated amortisation and accumulated impairment losses. 
Amortisation is provided on all intangible fixed assets calculated to write off the cost less estimated residual value of each asset on a systematic basis over its expected useful life as follows:
Computer software                                    -  33% - 50% straight line
Development expenditure                                  -  33% - 50% straight line
Asset residual values and useful lives are reviewed at the end of each reporting period, and adjusted if appropriate. The effect of any change is accounted for prospectively.
Amortisation is included in administrative expenses in the profit and loss account.

  
3.13

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost, less accumulated depreciation and accumulated impairment losses. Cost includes the purchase price plus any further costs directly attributable to making the asset operate as intended. 
Depreciation is provided on all tangible fixed assets calculated to write off the cost less estimated residual value of each asset on a systematic basis over its expected useful life as follows: 
Leasehold property improvements   - 20% straight line
Plant and machinery     - 6.667% - 33% straight line
Assets residual values and useful lives are reviewed at the end of each reporting period, and adjusted if appropriate. The effect of any changes is accounted for prospectively. 

  
3.14

Investments

Investments in subsidiary undertakings are measured at cost less accumulated impairment losses. 

  
3.15

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in first-out (FIFO) method. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. 
Provision is made as necessary for damaged, obsolete or slow-moving items. 

  
3.16

Cash and cash equivalents

Cash and cash equivalents includes cash in hand and deposits held at call with banks.

15

 
BGRP Limited
 

 
Notes to the financial statements
Year ended 30 April 2023

3.Accounting policies (continued)

  
3.17

Financial instruments

The company only enters into financial instruments transactions that result in the recognition of basic debt financial assets and liabilities like trade and other debtors and creditors, cash and bank balances, bank loans and loans to related parties, including fellow group undertakings. 
Debt instruments due within one year are measured, initially and subsequently at the transaction price. Debt instruments due after one year are measured initially at the transaction price and subsequently at amortised cost using the effective interest method. 
At the end of each reporting period debt financial assets are assessed for impairment, and their carrying value reduced if necessary. Any impairment charge is recognised in the profit and loss account. 

  
3.18

Dividends

Dividends and other distributions to the company's equity shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the company's shareholders. These amounts are recognised in the statement of changes in equity. 


4.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgment are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 
Significant judgments in applying the entity's accounting policies 
In preparing these financial statements, the directors do not consider there to have been any significant judgements that were required in the process of applying the company's accounting policies. 
Key sources of estimation uncertainty
Useful economic lives of intangible and tangible fixed assets
The annual amortisation charge for intangible fixed assets and depreciation charge for tangible fixed assets are 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 regularly. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See notes 14 and 15 for the carrying value of intangible and tangible fixed assets, and notes 3.12-3.13 for the useful economic lives for each class of asset. 
Impairment of fixed assets
The company considers whether fixed assets, including intangible fixed assets, tangible fixed assets and investments, are impaired. Where an indication of impairment is identified the estimation of recoverable value requires estimation of the recoverable value of the cash generating units (CGUs). This requires estimation of the future cash flows from the CGUs and also selection of appropriate discount rates in order to calculate the net present value of these cash flows. In addition to this, the useful lives of fixed assets are regularly reviewed and any reduction in the length of the life would result in an impairment charge to the profit and loss account and a reduction in the carrying value of the asset. See notes 14-16 for the carrying values of intangible fixed assets, tangible fixed assets and fixed asset investments respectively.
 
16

 
BGRP Limited
 
 

Notes to the financial statements
Year ended 30 April 2023

4.Judgments in applying accounting policies (continued)


Stock provisioning
Provision is made against specific stock items which are slow moving or obsolete to ensure the stock items are held at the lower of cost and net realisable value. See note 17 for the carrying value of stock and the provision for impairment.
Impairment of debtors
Provision is made against debts which are not considered to be recoverable. See note 18 for the carrying value of trade debtors and the provision for impairment. 


5.


Turnover

The whole of the turnover is attributable to the principal activity of the company.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
9,187,299
8,554,824

Rest of Europe
2,054,081
1,300,138

11,241,380
9,854,962



6.


Other operating income

2023
2022
£
£

Other operating income
267,967
-

Government grants receivable
-
91

Insurance claims receivable
-
6,749

267,967
6,840


17

 
BGRP Limited
 
 

Notes to the financial statements
Year ended 30 April 2023

7.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
(36,618)
13,564

Operating lease rentals
371,593
221,440

Amortisation of intangible fixed assets
21,352
8,573

Depreciation of tangible fixed assets
113,685
86,966

Auditor's remuneration
18,000
16,500


8.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
2,326,946
1,785,553

Social security costs
252,378
166,842

Cost of defined contribution pension scheme
98,571
73,155

2,677,895
2,025,550


Included within wages and salaries are amounts paid to agency staff of £133,692 (2022: £114,040).

The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Management
9
8



Design, sales, customer care, admin
33
28



Manufacturing
22
19

64
55

18

 
BGRP Limited
 
 

Notes to the financial statements
Year ended 30 April 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
517,737
266,150

Company contributions to defined contribution pension schemes
-
1,368

517,737
267,518


During the year retirement benefits were accruing to no directors (2022: 1) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £186,188  (2022: £168,428).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £nil (2022: £nil).


10.


Interest receivable

2023
2022
£
£


Bank and other interest receivable
58
74


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
156,955
-

19

 
BGRP Limited
 
 

Notes to the financial statements
Year ended 30 April 2023

12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
75,808

Adjustments in respect of previous periods
(154,792)
(51,140)


Total current tax
(154,792)
24,668

Deferred tax


Origination and reversal of timing differences
1,910
(2,617)

Effect of changes in tax rates
(3,467)
14,231

Adjustment in respect of previous periods
540
1,020

Total deferred tax
(1,017)
12,634


Taxation on profit
(155,809)
37,302

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 19.49% (2022: 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit before tax
(153,697)
1,305,572


Profit multiplied by standard rate of corporation tax in the UK of 19.49% (2022: 19%)
(29,956)
248,059

Effects of:


Expenses not deductible for tax purposes
61,554
5,865

Effects of group relief / other reliefs
-
(176,404)

Effects of super deduction
-
(4,329)

Income not taxable
(29,769)
-

Adjustments in respect of prior periods
(158,259)
(50,120)

Tax rate changes
540
14,231

SBA
81
-

Total tax charge for the year
(155,809)
37,302


Factors that may affect future tax charges

20

 
BGRP Limited
 
 

Notes to the financial statements
Year ended 30 April 2023
 
12.Taxation (continued)

In the Spring Budget 2021 it was announced that the main UK corporation tax rate would increase from 19% to 25% from 1 April 2023. This rate increase was substantively enacted as part of the Finance Act 2021 on 24 May 2021 and has now taken effect.  Accordingly, the company’s profits are taxed at an effective rate of 19.5% for the year ended 30 April 2023 (19% for year ended 30 April 2022), and future profits will be taxed at a rate of 25%.  Deferred tax at the balance sheet date has been calculated at 25% (2022: 25%), as this was the tax rate substantively enacted at the year end.


13.


Exceptional items

2023
2022
£
£


Expansion costs
986,374
135,832

Exceptional costs incurred during the prior year relate to the company's preparation into further growth within the UK and expansion into mainland Europe by establishing a site in Germany.


14.


Intangible assets




Development expenditure
Computer software
Total

£
£
£



Cost


At 1 May 2022
-
45,263
45,263


Additions
33,390
26,236
59,626



At 30 April 2023

33,390
71,499
104,889



Amortisation


At 1 May 2022
-
8,573
8,573


Charge for the year
-
21,352
21,352



At 30 April 2023

-
29,925
29,925



Net book value



At 30 April 2023
33,390
41,574
74,964



At 30 April 2022
-
36,690
36,690



21

 
BGRP Limited
 
 

Notes to the financial statements
Year ended 30 April 2023

15.


Tangible fixed assets





Leasehold property improvements
Plant and machinery
Assets under construction
Total

£
£
£
£



Cost


At 1 May 2022
200,273
1,063,884
-
1,264,157


Additions
6,570
510,842
397,078
914,490


Disposals
-
(106,170)
-
(106,170)



At 30 April 2023

206,843
1,468,556
397,078
2,072,477



Depreciation


At 1 May 2022
148,601
732,121
-
880,722


Charge for the year
20,187
93,498
-
113,685


Disposals
-
(105,756)
-
(105,756)



At 30 April 2023

168,788
719,863
-
888,651



Net book value



At 30 April 2023
38,055
748,693
397,078
1,183,826



At 30 April 2022
51,672
331,763
-
383,435

22

 
BGRP Limited
 
 

Notes to the financial statements
Year ended 30 April 2023

16.


Fixed asset investments





Investments in subsidiary companies

£



Cost


At 1 May 2022
100


Additions
23,155



At 30 April 2023

23,255



Impairment


At 1 May 2022
100



At 30 April 2023

100



Net book value



At 30 April 2023
23,155



At 30 April 2022
-

Subsidiary undertakings
The company owns 100% of the ordinary share capital in the following companies: 
Name       Registered office   Principal activity
Beanbag Bazaar Limited     Unit 3 Easter Park,   Dormant
       Nelson Park West, 
       Cramlington,
       Northumberland, NE23
       1WQ
BGRP GmbH                             Essener Str. 4 a,   Soft-seating Trader 
       22419 Hamburg, 
       Germany.     


23

 
BGRP Limited
 
 

Notes to the financial statements
Year ended 30 April 2023

17.


Stocks

2023
2022
£
£

Raw materials and consumables
1,171,494
1,213,578


Stocks are stated after provisions for impairment of £109,122 (2022: £275,445) The impairment reversal  for the year, included within cost of sales, totalled £166,500 (2022: £77,537 charge).


18.


Debtors

2023
2022
£
£


Trade debtors
1,025,256
766,458

Amounts owed by group undertakings
4,759,633
4,082,004

Other debtors
155,728
15,854

Prepayments and accrued income
335,702
251,486

6,276,319
5,115,802


Trade debtors are stated after provisions for impairment of £6,000 (2022: £6,000) The impairment reversal for the year, included within administrative expenses, totalled £nil (2022: £12,000).
Amounts owed by group undertakings are unsecured, interest free and payable on demand.


19.


Creditors: amounts falling due within one year

2023
2022
£
£

Bank overdrafts
40,549
-

Bank loans
1,343,750
-

Trade creditors
859,817
623,483

Amounts owed to group undertakings
15,082
12,633

Corporation tax
-
210,121

Other taxation and social security
206,297
282,916

Other creditors
39,782
60,516

Accruals and deferred income
312,315
146,364

2,817,592
1,336,033


Amounts owed to group undertakings are unsecured, interest free and payable on demand.

24

 
BGRP Limited
 
 

Notes to the financial statements
Year ended 30 April 2023

20.


Creditors: amounts falling due after more than one year

2023
2022
£
£

Bank loans
1,572,917
-



21.


Bank loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
1,343,750
-


1,343,750
-

Amounts falling due 1-2 years

Bank loans
791,667
-


791,667
-

Amounts falling due 2-5 years

Bank loans
781,250
-


781,250
-


2,916,667
-

Bank loans are subject to interest of 4.00% over the Bank of England Base Rate and are secured over the assets of the group.
The aggregate amount of liabilities repayable in more than five years after the balance sheet date is £nil.
The principle terms in respect of each loan are as follows:
£1,500,000 bank loan is secured, repayable in May 2025 on the second anniversary of the issue date and accrue interest of 4.00% over the Bank of England Base Rate per annum.
£1,500,000 bank loan is secured, repayable in April 2028 on the fifth anniversary of the issue date and accrue interest of 4.00% over the Bank of England Base Rate per annum.

25

 
BGRP Limited
 
 

Notes to the financial statements
Year ended 30 April 2023

22.


Deferred taxation




2023


£






At beginning of year
59,298


Charged to profit or loss
1,017



At end of year
58,281

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Fixed asset timing differences
192,515
63,931

Short term timing differences
(1,537)
(4,633)

Losses
(132,697)
-

58,281
59,298


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022: 100) Ordinary shares of £1.00 each
100
100


There is a single class of ordinary shares. There are no restriction on the distribution of dividends or the repayment of capital. 


24.


Reserves

Profit and loss account

The profit and loss reserve represents cumulative profits or losses, net of cumulative dividends paid and other adjustments. 

26

 
BGRP Limited
 
 

Notes to the financial statements
Year ended 30 April 2023

25.


Capital commitments


At 30 April 2023 the company had capital commitments as follows:

2023
2022
£
£


Contracted for but not provided in these financial statements
150,876
226,630


26.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company  in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £98,571 (2022: £73,155).
Contributions totalling £147 (2022: £12,532) were payable to the fund at the balance sheet date and are included in creditors.


27.


Commitments under operating leases

At 30 April 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
703,254
227,343

Later than 1 year and not later than 5 years
2,801,473
899,386

Later than 5 years
2,232,453
987,165

5,737,180
2,113,894


28.


Related party transactions

Directors' remuneration is disclosed in note 9. 
As a wholly-owned subsidiary undertaking, the company is exempt from disclosing transactions with its parent company and other wholly-owned subsidiary undertakings within the same group. 


29.


Controlling party

The immediate and ultimate parent undertaking and the only group to consolidate these financial statements is BGRP Holdings Limited. Copies of BGRP Holdings Limited consolidated financial statements can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ. 
The ultimate controlling party is Hawksford Trustees Jersey Limited, incorporated in Jersey.

27