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Registered number: 00124503










BENNETT OPIE LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
BENNETT OPIE LIMITED
 
 
COMPANY INFORMATION


Directors
Mr P G Opie BSc (President) 
Mr W J Opie (Chairman) 
Mr C I W Opie (Managing Director) 
Rev D I B Opie BA 
Mrs J M Wittams 
Mr S P Ward MAAT 
Mr M G W Stringer 
Mr P A Fox BSc (Hons) 
Mr S A Bailey BA (Hons) 
Mr M J Godley 
Mr W J Davies 




Company secretary
Mr S P Ward MAAT



Registered number
00124503



Registered office
Chalkwell Road

Sittingbourne

Kent

ME10 2LE




Independent auditor
MHA

Maidstone

United Kingdom




Bankers
Barclays Bank plc
1 Churchill Place

London

E14 5HP




Solicitors
Cripps LLP
Mount Ephraim

Tunbridge Wells

Kent

TN4 8AS





 
BENNETT OPIE LIMITED
 

CONTENTS



Page
Strategic report
 
 
1 - 2
Directors' report
 
 
3 - 6
Independent auditor's report
 
 
7 - 10
Statement of comprehensive income
 
 
11
Balance sheet
 
 
12
Statement of changes in equity
 
 
13
Statement of cash flows
 
 
14 - 15
Analysis of net debt
 
 
16
Notes to the financial statements
 
 
17 - 39

 
BENNETT OPIE LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Introduction
 
The Directors present their strategic report for the period ended 31st March 2023. 
Principal activities
The Company's principal activities during the period continued to be the manufacture, import, marketing and distribution of premium ambient food and beverage products. 

Business review
 
The Directors consider the trading results to be satisfactory for the period whilst acknowledging that they are down against the exceptionally strong previous year.
Turnover was maintained and reached £44.5 million for the year, as referenced in last year’s report and as expected, cost increases and pressures seen across nearly all areas of the business impacted the profitability level for the year. The measures already taken by the Board together with the anticipated fall in inflation and some cost components should hopefully benefit this area.
The well reported cost of living crisis, generally challenging economic climate and the ongoing conflict in Eastern Europe all have the potential to impact future trading results.  
Investment plans for the manufacturing operations are well in progress with the benefits expected to be seen from the middle of 2024. The Directors continue to see opportunities for growth within both our manufacturing, import and distribution business. The Company is an attractive partner for brand owners seeking to benefit from our wide-ranging and well developed customer relationships and these opportunities will continue to be given due consideration as they occur.

Principal risks and uncertainties
 
The Board has identified several key risks and continues to monitor and manage these on an ongoing basis:
 
Foreign exchange – the Company imports a large proportion of its materials and product range in both Euro and US Dollar currencies. Variations in foreign exchange rates will have an impact on the Company’s profitability. 
Brexit – the challenges resulting from the decision to leave the EU and it's possible impacts is a key concern for the Directors, with the impact on supply chain, regulation and additional costs.
Economic environment – the Company operates in a dynamic environment where factors such as rising inflation, consumer confidence and customer consolidation can impact performance. 
Competition – the Company operates in a competitive market and the Directors are aware of the continued need to offer a commercially attractive package together with the highest level of quality and customer service. 
Covid-19 – the pandemic caused unparalleled economic and social turmoil across the globe and the Company is not immune to the risks faced by such disruption. In particular whilst our customer base has to some extent recovered there are ongoing challenges throughout our supply chain where managing costs and capacity constraints are significant. Directors have considered the risks to finances and operations arising from Covid-19 and have identified no material uncertainties that cast significant doubt on the Company’s ability to continue as a going concern. 
Ukraine conflict – the ongoing conflict in Eastern Europe has resulted in some very specific impacts on both our direct supply chain and at a wider level across certain key commodities that we are exposed to indirectly. The uncertain nature of this event and risks associated with it will need to be monitored closely on an ongoing basis.

Page 1

 
BENNETT OPIE LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Financial key performance indicators
 
The Directors monitor a number of key performance indicators to ensure the business continues to create value for its shareholders and stability of employment for its employees.
 
£'000's
2023
2022
2021
2020
2019
Turnover
44,509
43,784
31,617
34,277
34,334
Gross Margin
22%
26%
26%
22%
22%
Profit Before Tax
3.9%
8.6%
8.1%
7.2%
7.5%

Directors' statement of compliance with duty to promote the success of the Company
 
The Directors are aware of their duty under s.172 of the Companies Act 2006 to act in a way that they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders, which includes having regard to other stakeholders.


This report was approved by the board and signed on its behalf.



Mr C I W Opie 
Managing Director

Date: 18 September 202318 September 2023
Page 2

 
BENNETT OPIE LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors' responsibilities statement

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 for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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.

Results and dividends

The profit for the year, after taxation, amounted to £1,541,857 (2022 - £3,011,174).

Dividends of £384,000 (2022 - £752,000) were paid during the period. These were paid to the parent company Bennett Opie Holdings Limited.

Directors

The directors who served during the year were:

Mr P G Opie BSc (President) 
Mr W J Opie (Chairman) 
Mr C I W Opie (Managing Director) 
Rev D I B Opie BA 
Mrs J M Wittams 
Mr S P Ward MAAT 
Mr M G W Stringer 
Mr P A Fox BSc (Hons) 
Mr S A Bailey BA (Hons) 
Mr M J Godley 
Mr W J Davies 

Page 3

 
BENNETT OPIE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Future developments

The board are extremely pleased with the results for the period. The directors' policy is one of continued investment in our key brands leading to continued growth of the business. We also look at expanding into new market sectors where appropriate to broaden the base of the Company.

Streamlined Energy & Carbon Reporting

Initial Review

An environmental committee exists within the business to review our current energy usage, set out our aspirations & meet regularly to discuss performance levels & appropriate courses of action.
A suitable overall metric has been established, which allows our stakeholders to review at a glance our performance in this area. Due to the significant growth levels achieved by the business over the last 2 years, it was decided CO2 per £000 sales turnover continues to be the most relevant measure.
Carbon Usage Efficiency
 
CO2 per £000 Sales Turnover
Base Year 2020/21
Current Year 2022/23
Better/(Worse)
Scope 1: Emissions - Gas
24.61
19.91
4.70
19%
Scope 2: Emissions - Electric
7.96
6.18
1.79
22%
Scope 3: Emissions - Fuel
1.11
0.93
0.18
16%
TOTAL
33.68
27.02
6.66
20%

Methodology
In order to determine the energy usage levels over the period of assessment, data was obtained from our energy suppliers / brokers to accurately report on the (KWH) energy used.
Energy levels were subsequently converted into CO2 levels using standard conversion tables that defined 1KWH as equivalent to 0.233kg of CO2 for electricity & 0.185kg for gas. Petrol & Diesel defined each litre of fuel as equivalent to 2.4kg of CO2.
Since 2021/22 was the first period where Streamlined Energy & Carbon Reporting (SECR) was reported on within our business, the baseline period chosen remains at 2020/21. This period is considered most appropriate, despite it covering the period of Covid lockdown experienced across the UK, since food production & operations continued during this time & was comparable with other periods in most respects.
 
Page 4

 
BENNETT OPIE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Further Reporting
Additional information relating to the metrics used, which express energy usage in terms of KWH are reported below & show the actual & relative levels of energy used within the business.

SECR Data
Energy Consumed KWH
Conversion Rate
CO2 Levels KG
CO2 KG per £000 Turnover
Gas - Manufacturing
4,678,947
0.185
865,605
19.45
Gas - Other
111,582
0.185
20,643
0.46
Electric - Manufacturing
970,943
0.233
226,230
5.08
Electric - Other
209,471
0.233
48,807
1.10
Petrol/Diesel
17,282
2.4
41,476
0.93
Total 2022/23
Current Year
1,202,760
27.02





Total 2020/21
Base Year
1,129,158
25.79

Carbon and Energy Reduction Plans
A 4th production line was added during the year & although CO2 output increased versus the previous year, it still managed to remain below our comparative base year.
The ambitions for the business in terms of our carbon emissions are to reduce our scope 1 & 2 levels by a further 10% over the next 3 years, relative to the size of our business.
It is the intention of the environmental committee to explore all the ways in which carbon emissions can be reduced. Existing plans are to replace all remaining lighting throughout the business with lower energy usage light bulbs & continue to explore the feasibility of installing solar panels to help generate some of the power required to service our business.
Further capital projects under consideration include the introduction of recirculating heat pumps that could provide factory heating during the winter months & upgrading both boilers with cleaner, more efficient gas burners.

Matters covered in the Strategic report

Certain items required under Schedule 7 to be disclosed in the Directors' Report are set out in the Strategic Report in accordance with S.414C(II) of the Companies Act 2006; these being the Company's principle risks and uncertainties.

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.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Page 5

 
BENNETT OPIE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Auditor

The auditor, MHAwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Mr C I W Opie (Managing Director)
Director

Date: 18 September 2023
Page 6

 
BENNETT OPIE LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BENNETT OPIE LIMITED
 

Opinion


We have audited the financial statements of Bennett Opie Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, 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 31 March 2023 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 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.


Page 7

 
BENNETT OPIE LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BENNETT OPIE 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.
Page 8

 
BENNETT OPIE LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BENNETT OPIE LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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.


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:

Enquiry of management, those charged with governance around actual and potential litigation and claims;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
Reviewing minutes of meetings of those charged with governance;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
Maintaining professional scepticism throughout the course of our audit work.


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.


Page 9

 
BENNETT OPIE LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BENNETT OPIE LIMITED (CONTINUED)


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.




Duncan Cochrane-Dyet BSc BFP FCA (Senior Statutory Auditor)
for and on behalf of
MHA
Statutory Auditor
Maidstone
United Kingdom

29 November 2023
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
Page 10

 
BENNETT OPIE LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
£
£

  

Turnover
 4 
44,508,767
43,783,638

Cost of sales
  
(34,720,364)
(32,260,544)

Gross profit
  
9,788,403
11,523,094

Distribution costs
  
(2,946,616)
(2,713,091)

Administrative expenses
  
(5,215,597)
(5,113,322)

Other operating income
 5 
33,824
76,009

Operating profit
 6 
1,660,014
3,772,690

Interest receivable and similar income
 10 
64,519
5,277

Interest payable and similar expenses
 11 
(2,569)
(8,649)

Other finance income
 12 
35,000
10,000

Profit before tax
  
1,756,964
3,779,318

Tax on profit
 13 
(215,107)
(768,144)

Profit for the financial year
  
1,541,857
3,011,174

Other comprehensive income for the year
  

Actuarial gains on defined benefit pension scheme
  
1,296,000
778,000

Movement of deferred tax relating to pension deficit
  
(345,250)
(225,460)

Other comprehensive income for the year
  
950,750
552,540

Total comprehensive income for the year
  
2,492,607
3,563,714

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

The notes on pages 17 to 39 form part of these financial statements.
Page 11

 
BENNETT OPIE LIMITED
REGISTERED NUMBER: 00124503

BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 15 
1,479,451
1,323,939

Current assets
  

Stocks
 16 
12,568,926
10,268,034

Debtors: amounts falling due within one year
 17 
6,336,678
5,344,035

Current asset investments
 18 
2,500,000
2,500,000

Cash at bank and in hand
 19 
1,675,406
4,816,653

  
23,081,010
22,928,722

Creditors: amounts falling due within one year
 20 
(7,855,162)
(8,674,643)

Net current assets
  
 
 
15,225,848
 
 
14,254,079

Total assets less current liabilities
  
16,705,299
15,578,018

Provisions for liabilities
  

Deferred tax
 22 
(962,480)
(562,806)

  
 
 
(962,480)
 
 
(562,806)

Pension asset
  
2,618,000
1,237,000

Net assets
  
18,360,819
16,252,212


Capital and reserves
  

Called up share capital 
 23 
480,000
480,000

Profit and loss account
  
17,880,819
15,772,212

  
18,360,819
16,252,212


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mr W J Opie (Chairman)
Mr C I W Opie (Managing Director)
Director
Director


Date: 18 September 202318 September 2023

The notes on pages 17 to 39 form part of these financial statements.
Page 12

 
BENNETT OPIE LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2021
480,000
12,960,498
13,440,498


Comprehensive income for the year

Profit for the year
-
3,011,174
3,011,174

Actuarial gains on pension scheme
-
552,540
552,540
Total comprehensive income for the year
-
3,563,714
3,563,714


Contributions by and distributions to owners

Dividends: Equity capital
-
(752,000)
(752,000)


Total transactions with owners
-
(752,000)
(752,000)



At 1 April 2022
480,000
15,772,212
16,252,212


Comprehensive income for the year

Profit for the year
-
1,541,857
1,541,857

Actuarial gains on pension scheme
-
950,750
950,750
Total comprehensive income for the year
-
2,492,607
2,492,607


Contributions by and distributions to owners

Dividends: Equity capital
-
(384,000)
(384,000)


Total transactions with owners
-
(384,000)
(384,000)


At 31 March 2023
480,000
17,880,819
18,360,819


The notes on pages 17 to 39 form part of these financial statements.
Page 13

 
BENNETT OPIE LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,541,857
3,011,174

Adjustments for:

Depreciation of tangible assets
281,273
302,081

Interest paid
2,569
8,649

Interest received
(64,519)
(5,277)

Taxation charge
215,107
768,144

(Increase) in stocks
(2,300,892)
(1,978,293)

(Increase) in debtors
(755,833)
(1,577,288)

(Increase) in amounts owed by groups
(147,504)
(94,630)

(Decrease)/increase in creditors
(250,889)
2,558,849

Increase/(decrease) in amounts owed to groups
-
(298,239)

(Decrease) in net pension assets/liabilities
(85,000)
(18,000)

Corporation tax (paid)
(818,581)
(392,050)

Net cash generated from operating activities

(2,382,412)
2,285,120


Cash flows from investing activities

Purchase of tangible fixed assets
(436,785)
(281,377)

Interest received
64,519
5,277

Net cash from investing activities

(372,266)
(276,100)
Page 14

 
BENNETT OPIE LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


2023
2022

£
£



Cash flows from financing activities

Repayment of/new finance leases
-
(11,919)

Dividends paid
(384,000)
(752,000)

Interest paid
(2,569)
(8,649)

Net cash used in financing activities
(386,569)
(772,568)

Net (decrease)/increase in cash and cash equivalents
(3,141,247)
1,236,452

Cash and cash equivalents at beginning of year
4,816,653
3,580,201

Cash and cash equivalents at the end of year
1,675,406
4,816,653


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,675,406
4,816,653

1,675,406
4,816,653


The notes on pages 17 to 39 form part of these financial statements.

Page 15

 
BENNETT OPIE LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2023




At 1 April 2022
Cash flows
At 31 March 2023
£

£

£

Cash at bank and in hand

4,816,653

(3,141,247)

1,675,406

Debt due within 1 year

(129,438)

-

(129,438)


4,687,215
(3,141,247)
1,545,968

The notes on pages 17 to 39 form part of these financial statements.
Page 16

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

Bennett Opie Limited is a private company limited by shares incorporated in England and Wales in the United Kingdom. The address of the registered office is Chalkwell Road, Sittingbourne, Kent, ME10 2LE. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors have considered all available relevant information including annual budgets and forecasts, future cashflows and the potential impact of subsequent events in making their assessment.
Based on this assessment and having regard to the resources available to the Company, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing these accounts.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 17

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

The Company's policy is that revenue is recognised on dispatch of the goods to customers.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 18

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Defined benefit pension plan

The Company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the Balance sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.

Page 19

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.10
Pensions (continued)

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:

a) the increase in net pension benefit liability arising from employee service during the period; and

b) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Page 20

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the methods below.

Depreciation is provided on the following basis:

Short-term leasehold property
-
Over the term of the lease
Plant and machinery
-
5 to 15 years straight line basis
Motor vehicles
-
25% reducing balance basis
Fixtures and fittings
-
3 to 10 years straight line basis
Office equipment
-
3 to 5 years straight line basis

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Page 21

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

 
2.18

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:
at fair value with changes recognised in the Statement of comprehensive income if the shares are publicly traded or their fair value can otherwise be measured reliably;
at cost less impairment for all other investments.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the
Page 22

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.18
Financial instruments (continued)

difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

 
2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:
- The apportionment of values between land and buildings.
- The useful expected lives of assets.
- The stock provisioning.
- The bad debt provision.
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:
- The defined benefit scheme accounting.
- Allocation of overhead costs to the value of manufactured stock items.

Page 23

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

4.


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
43,819,496
43,071,334

Rest of Europe
548,555
559,157

Rest of the world
140,716
153,147

44,508,767
43,783,638



5.


Other operating income

2023
2022
£
£

Other operating income
3,000
-

Net rents receivable
24,339
24,514

Government grants receivable - HMRC job retention scheme
-
13,444

Insurance claims receivable
-
31,922

Sundry income
6,485
6,129

33,824
76,009



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
190,328
307,138

Other operating lease rentals
495,726
323,555

Page 24

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

7.


Auditor's remuneration

2023
2022
£
£

Fees payable to the Company's auditor and its associates for the audit of the Company's financial statements

33,380
27,772


The Company has taken advantage of the exemption not to disclose amounts paid for non audit services.




8.


Employees

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


2023
2022
£
£

Wages and salaries
4,430,774
3,791,488

Social security costs
444,238
449,949

Cost of defined contribution scheme
292,442
197,495

5,167,454
4,438,932


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


        2023
        2022
            No.
            No.







Manufacturing
72
61



Sales, office and management
53
60



Directors
11
11

136
132

Page 25

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
831,527
768,538

Company contributions to defined contribution pension schemes
75,228
67,245

906,755
835,783


During the year retirement benefits were accruing to 3 directors (2022 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £179,081 (2022 - £155,863).


10.


Interest receivable

2023
2022
£
£


Other interest receivable
64,519
5,277

64,519
5,277


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
992
5,784

Other loan interest payable
660
644

Other interest payable
917
2,221

2,569
8,649


12.


Other finance costs

2023
2022
£
£

Net interest on net defined benefit liability
35,000
10,000

35,000
10,000


Page 26

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

13.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
269,899
704,614

Adjustments in respect of previous periods
(109,216)
-


Total current tax
160,683
704,614

Deferred tax


Origination and reversal of timing differences
54,424
63,530

Total deferred tax
54,424
63,530


Tax on profit
215,107
768,144
Page 27

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
13.Taxation (continued)


Factors affecting tax charge for the year

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

2023
2022
£
£


Profit on ordinary activities before tax
1,756,964
3,779,318


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
333,823
718,070

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,903
2,141

Capital allowances for year in excess of depreciation
(49,807)
(11,920)

Adjustments to tax charge in respect of prior periods
(109,216)
-

Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax
(16,150)
(3,420)

Short-term timing difference leading to an increase (decrease) in taxation
54,424
63,530

Other timing differences leading to an increase (decrease) in taxation
2,370
(257)

Group relief
(2,240)
-

Total tax charge for the year
215,107
768,144


Factors that may affect future tax charges

Legislation has been introduced in the Finance Bill 2021 to effect an increase in the Corporation Tax main rate to 25% for the financial year beginning 1 April 2023.


14.


Dividends

2023
2022
£
£


Dividends on equity shares
368,000
736,000


Dividends on non-equity shares
16,000
16,000

384,000
752,000

Page 28

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

15.


Tangible fixed assets





Leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment

£
£
£
£
£



Cost or valuation


At 1 April 2022
129,068
5,301,295
50,959
826,138
240,655


Additions
-
436,785
-
-
-


Disposals
-
(8,539)
-
-
-



At 31 March 2023

129,068
5,729,541
50,959
826,138
240,655



Depreciation


At 1 April 2022
126,881
4,142,569
46,242
680,408
228,076


Charge for the year on owned assets
2,187
234,574
1,179
34,212
9,121


Disposals
-
(8,539)
-
-
-



At 31 March 2023

129,068
4,368,604
47,421
714,620
237,197



Net book value



At 31 March 2023
-
1,360,937
3,538
111,518
3,458



At 31 March 2022
2,187
1,158,726
4,717
145,730
12,579
Page 29

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

           15.Tangible fixed assets (continued)


Total

£



Cost or valuation


At 1 April 2022
6,548,115


Additions
436,785


Disposals
(8,539)



At 31 March 2023

6,976,361



Depreciation


At 1 April 2022
5,224,176


Charge for the year on owned assets
281,273


Disposals
(8,539)



At 31 March 2023

5,496,910



Net book value



At 31 March 2023
1,479,451



At 31 March 2022
1,323,939




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Short leasehold
-
2,187

-
2,187


Page 30

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

16.


Stocks

2023
2022
£
£

Raw materials and consumables
2,247,570
2,047,776

Work in progress (goods to be sold)
19,975
55,755

Finished goods and goods for resale
10,301,381
8,164,503

12,568,926
10,268,034


The difference between purchase price or production cost of stock and their replacement cost is not material.


17.


Debtors

2023
2022
£
£


Trade debtors
5,005,017
4,400,316

Amounts owed by group undertakings
242,134
94,630

Other debtors
191,678
453,053

Prepayments and accrued income
808,543
396,036

Corporation tax recoverable
89,306
-

6,336,678
5,344,035



18.


Current asset investments

2023
2022
£
£

Unlisted investments (liquid)
2,500,000
2,500,000

2,500,000
2,500,000


The amounts above under short term investments are cash balances held in 65 day notice accounts.

Page 31

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

19.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,675,406
4,816,653

1,675,406
4,816,653



20.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
5,911,734
6,479,547

Corporation tax
-
568,592

Other taxation and social security
96,795
97,660

Other creditors
129,438
129,438

Accruals and deferred income
1,717,195
1,399,406

7,855,162
8,674,643



21.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
1,675,406
4,816,653

Financial assets that are debt instruments measured and amortised at cost
5,438,829
4,947,999

7,114,235
9,764,652


Financial Liabilities


Financial liabilities measured and amortised at cost
(7,758,367)
(8,008,391)


Financial assets measured at fair value through profit or loss comprise of cash & cash equivalents.
Financial assets that are debt instruments measured at amortised cost comprise of trade debtors, other debtors and amounts owed by group undertakings.
Financial liabilities measured at amortised cost comprise of accruals and deferred income, amounts owed to group undertakings, obligations under finance lease and hire purchase contract, trade and other creditors.
Page 32

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

22.


Deferred taxation




2023


£






At beginning of year
(562,806)


Charged to profit or loss
(54,424)


Charged to other comprehensive income
(345,250)



At end of year
(962,480)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(313,375)
(255,833)

Pension surplus
(654,500)
(309,250)

Short-term timing differences
5,395
2,277

(962,480)
(562,806)

Page 33

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



320,000 (2022 - 320,000) Ordinary shares of £1.00 each
320,000
320,000
160,000 (2022 - 160,000) Preference shares of £1.00 each
160,000
160,000

480,000

480,000

The rights of the preference shareholders include a right to dividend and a priority over the ordinary shareholders as regards to dividend and capital on winding up.



24.


Capital commitments


At 31 March 2023 the Company had capital commitments as follows:

2023
2022
£
£


Contracted for but not provided in these financial statements
171,063
-

171,063
-

Page 34

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

25.


Pension commitments

The Company operates a Defined benefit pension scheme.

The Company contributes to three money purchase pension schemes for certain employees. Employers contribution are charged to profit and loss account as they fall due. Contributions payable by the Company for the period were £Nil (2022 - £Nil).
The Company operates a defined benefit pension scheme in the UK. This is a separate trustee administered fund holding the pension scheme assets to meet long term pension liabilities. A full actuarial valuation was carried out at 31 March 2020 and updated to 31 March 2023  by a qualified actuary, independent of the scheme's sponsoring employer. The major assumptions used by the actuary are shown below.
This most recent actuarial valuation showed a deficit of £429,000. Bennett Opie Limited has agreed with the trustees that it will aim to eliminate the deficit over a period of 3 years and 4 months from 1 April 2021 by the payment of monthly contributions of £7,000 increasing at 3% per annum from 1 April 2022 in respect of the deficit. In addition and in accordance with the actuarial valuation, Bennett Opie Limited has agreed with the trustees that it will pay contributions of 35% of pensionable salaries, and member contributions will be 10% of pensionable salaries. In addition, the employer will pay amounts into the scheme equal to the levy payments made by the scheme to the Pension Protection Fund.



Reconciliation of present value of plan liabilities:


2023
2022
£
£

Reconciliation of present value of plan liabilities


At the beginning of the year
4,976,000
6,554,000

Current service cost
107,000
141,000

Expenses
13,000
13,000

Interest cost
121,000
132,000

Actuarial gains/losses
(1,682,000)
(647,000)

Contributions
24,000
22,000

Benefits paid
(825,000)
(1,239,000)

At the end of the year
2,734,000
4,976,000
Page 35

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
25.Pension commitments (continued)



Reconciliation of present value of plan assets:


2023
2022
£
£


At the beginning of the year
6,213,000
6,995,000

Interest income
156,000
142,000

Actuarial gains/losses
(386,000)
131,000

Contributions
194,000
184,000

Benefits paid
(825,000)
(1,239,000)

At the end of the year
5,352,000
6,213,000


Composition of plan assets:


2023
2022
£
£


Overseas Equities
3,186,000
3,424,000

Unit linked Government Bonds
1,151,000
1,227,000

Property
783,000
549,000

Cash and alternatives
177,000
949,000

With Profits
55,000
64,000

Total plan assets
5,352,000
6,213,000

2023
2022
£
£


Fair value of plan assets
5,352,000
6,213,000

Present value of plan liabilities
(2,734,000)
(4,976,000)

Net pension scheme liability
2,618,000
1,237,000


The amounts recognised in profit or loss are as follows:

2023
2022
£
£


Interest on obligation
35,000
10,000

Total
35,000
10,000


Page 36

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
25.Pension commitments (continued)


The cumulative amount of actuarial gains and losses recognised in the Statement of comprehensive income was £1,296,000 (2022 - £778,000).



The Company expects to contribute £NIL to its Defined benefit pension scheme in 2024.





Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2023
2022
%
%
Discount rate


4.80

2.80
 
Future salary increases


3.10

3.45
 
Future pension increases


3.40

3.80
 
Proportion of employees opting for early retirement


2.50

2.50
 
Inflation assumption


3.10

3.45
 
Mortality rates



 
- for a male aged 65 now


22.1

22.3
 
- at 65 for a male aged 45 now


23.8

23.9
 
- for a female aged 65 now


23.9

24.1
 
- at 65 for a female member aged 45 now


25.7

25.9
 

Page 37

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
25.Pension commitments (continued)


Amounts for the current and previous four periods are as follows:


Defined benefit pension schemes

2023
2022
2021
2020
2019
£
£
£
£
£
Defined benefit obligation

(2,734,000)

(4,976,000)

(6,554,000)
 
(6,620,000)
 
(6,768,000)

Scheme assets

5,352,000

6,213,000

6,995,000
 
6,168,000
 
7,539,000

Surplus
2,618,000

1,237,000

441,000
 
(452,000)
 
771,000


Experience adjustments on scheme liabilities
(126,000)
310,000
1,066,000
(10,000)
(49,000)
Experience adjustments on scheme assets
(386,000)
131,000
615,000
(1,867,000)
236,000
(512,000)
441,000
1,681,000
(1,877,000)
187,000


Reconciliation of pension adjustment to profit and loss account



2023
2022
£
£
Pension contributions paid

(170,000)

(162,000)

Finance charges - interest cost

121,000

132,000

Finance charges - expected return

(156,000)

(142,000)

Pension expenditure in profit and loss
(205,000)

(172,000)


Page 38

 
BENNETT OPIE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

26.


Commitments under operating leases

At 31 March 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

Plant & Equipment 2023
Plant & Equipment 2022
£
£


Not later than 1 year
51,401
51,937

Later than 1 year and not later than 5 years
66,875
66,106

118,276
118,043

Land & Buildings 2023
Land & Buildings 2022

£
£


Not later than 1 year
442,759
446,154

Later than 1 year and not later than 5 years
428,789
253,929

871,548
700,083


27.Other financial commitments

At the year end the Company was financially committed to make payment for raw materials and finished goods to the value of £1,746,261 (2022 - £812,944).


28.


Related party transactions

Dividends totalling £384,000 (2022 - £752,000) were paid during the year to Bennett Opie Holdings Limited, the parent company. At the period end, £242,134 (2022 - £94,630) was owed by Bennett Opie Holdings Limited.


29.


Controlling party

The Company's parent company and controlling party is Bennett Opie Holdings Limited, which is incorporated in the United Kingdom and registered in England & Wales. 
The smallest and largest group in which the results of the Company are consolidated is that headed by Bennett Opie Holdings Limited, whose financial statements are available from Bennett Opie Limited, Chalkwell Road, Sittingbourne, Kent, ME10 2LE.
 
Page 39