Company registration number 06305113 (England and Wales)
BPG HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
BPG HOLDINGS LIMITED
COMPANY INFORMATION
Director
Mr C Pardoe
Company number
06305113
Registered office
Fibrestar House
Newby Road Industrial Estate
Hazel Grove
Stockport
Cheshire
SK7 5AS
Auditor
UHY Hacker Young
14 Park Row
Nottingham
NG1 6GR
Bankers
Lloyds Bank Plc
42-46 Market Street
Manchester
M1 1PW
BPG HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 7
Group statement of comprehensive income
8
Group balance sheet
9 - 10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 30
BPG HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The director presents the strategic report for the year ended 30 June 2023.

Review of the business

The directors are pleased with the results of the Group for the year ended 30 June 2023. The turnover has increased to £8,719,562 compared to £8,344,331 in 2022 due to good growth in the existing customer base.

Principal risks and uncertainties

Material price increases and the supply of steel have been challenges for the Group during the year, together with transport and delivery issues. Wages and fuel costs have increased also during the year but fuel prices are now falling again. The Group have kept tight controls on costs reviewing regularly throughout the year.

Development and performance

The directors are working on development of a new products to diversify the income stream of the Group investing in new machinery.

Key performance indicators

Turnover for the Group has increased to £8,719,562 from £8,344,331 in 2022.

 

Gross Profit margin has decreased slightly from 26% in 2022 to 23%.This was expected and due to increased costs such as materials and delivery, fuel and wages. The Group has kept tight control on its costs to ensure minimal impact on the Gross Profit margins.

 

Net assets have decreased from £1,333,879 in 2022 to £1,297,618 in 2023.

On behalf of the board

Mr C Pardoe
Director
1 March 2024
BPG HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -

The director presents his annual report and financial statements for the year ended 30 June 2023.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £99,024 (2022: £132,500). The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr C Pardoe
Auditor

In accordance with the company's articles, a resolution proposing that UHY Hacker Young be reappointed as auditor of the group will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Director's responsibility statement

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

BPG HOLDINGS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Mr C Pardoe
Director
1 March 2024
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BPG HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of BPG Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 group's and parent 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 director with respect to going concern are described in the relevant sections of this report.

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BPG HOLDINGS LIMITED
- 5 -

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 director is 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the director's 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:

 

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BPG HOLDINGS LIMITED
- 6 -
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.

 

Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the Group, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to incorrect revenue recognition, management override of systems and controls and the completeness of related parties.

 

Audit procedures performed included:

 

 

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BPG HOLDINGS LIMITED
- 7 -

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.

For and on behalf of UHY Hacker Young
1 March 2024
Andrew Timms
Chartered Accountants
Statutory Auditor
BPG HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
2023
2022
Notes
£
£
Turnover
8,719,562
8,344,331
Cost of sales
(6,755,013)
(6,163,682)
Gross profit
1,964,549
2,180,649
Distribution costs
(1,184,521)
(1,138,392)
Administrative expenses
(755,206)
(817,322)
Operating profit
3
24,822
224,935
Interest payable and similar expenses
7
(20,937)
(11,477)
Profit before taxation
3,885
213,458
Tax on profit
8
58,878
43,881
Profit for the financial year
23
62,763
257,339
Profit for the financial year is attributable to:
- Owners of the parent company
71,827
222,692
- Non-controlling interests
(9,064)
34,647
62,763
257,339
Total comprehensive income for the year is attributable to:
- Owners of the parent company
71,827
222,692
- Non-controlling interests
(9,064)
34,647
62,763
257,339

The profit and loss account has been prepared on the basis that all operations are continuing operations.

BPG HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
9,448
9,448
Tangible assets
11
398,953
315,008
408,401
324,456
Current assets
Stocks
14
921,031
967,008
Debtors
15
1,866,997
1,791,421
Cash at bank and in hand
910,538
1,116,018
3,698,566
3,874,447
Creditors: amounts falling due within one year
16
(2,580,761)
(2,527,042)
Net current assets
1,117,805
1,347,405
Total assets less current liabilities
1,526,206
1,671,861
Creditors: amounts falling due after more than one year
17
(216,667)
(319,927)
Provisions for liabilities
Deferred tax liability
20
11,921
18,055
(11,921)
(18,055)
Net assets
1,297,618
1,333,879
Capital and reserves
Called up share capital
22
55
55
Profit and loss reserves
23
903,156
930,353
Equity attributable to owners of the parent company
903,211
930,408
Non-controlling interests
394,407
403,471
1,297,618
1,333,879
BPG HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 JUNE 2023
30 June 2023
- 10 -
The financial statements were approved and signed by the director and authorised for issue on 1 March 2024
01 March 2024
Mr C Pardoe
Director
Company registration number 06305113 (England and Wales)
BPG HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
683,000
683,000
Current assets
-
-
Creditors: amounts falling due within one year
16
(592,000)
(592,000)
Net current liabilities
(592,000)
(592,000)
Net assets
91,000
91,000
Capital and reserves
Called up share capital
22
55
55
Profit and loss reserves
23
90,945
90,945
Total equity
91,000
91,000

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £99,024 (2022 - £132,500 profit).

The financial statements were approved and signed by the director and authorised for issue on 1 March 2024
01 March 2024
Mr C Pardoe
Director
Company registration number 06305113 (England and Wales)
BPG HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 July 2021
55
840,161
840,216
368,824
1,209,040
Year ended 30 June 2022:
Profit and total comprehensive income
-
222,692
222,692
34,647
257,339
Dividends
9
-
(132,500)
(132,500)
-
(132,500)
Balance at 30 June 2022
55
930,353
930,408
403,471
1,333,879
Year ended 30 June 2023:
Profit and total comprehensive income
-
71,827
71,827
(9,064)
62,763
Dividends
9
-
(99,024)
(99,024)
-
(99,024)
Balance at 30 June 2023
55
903,156
903,211
394,407
1,297,618
BPG HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2021
55
90,945
91,000
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
132,500
132,500
Dividends
9
-
(132,500)
(132,500)
Balance at 30 June 2022
55
90,945
91,000
Year ended 30 June 2023:
Profit and total comprehensive income
-
99,024
99,024
Dividends
9
-
(99,024)
(99,024)
Balance at 30 June 2023
55
90,945
91,000
BPG HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
180,579
146,932
Interest paid
(20,937)
(11,477)
Income taxes refunded
52,360
-
0
Net cash inflow from operating activities
212,002
135,455
Investing activities
Purchase of tangible fixed assets
(213,627)
(63,924)
Net cash used in investing activities
(213,627)
(63,924)
Financing activities
Repayment of bank loans
(100,000)
(83,333)
Payment of finance leases obligations
(4,831)
(4,831)
Dividends paid to equity shareholders
(99,024)
(132,500)
Net cash used in financing activities
(203,855)
(220,664)
Net decrease in cash and cash equivalents
(205,480)
(149,133)
Cash and cash equivalents at beginning of year
1,116,018
1,265,151
Cash and cash equivalents at end of year
910,538
1,116,018
BPG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
1
Accounting policies
Company information

BPG Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is BPG Holdings Ltd, Fibrestar House, Newby Road Industrial Estate, Hazel Grove, Stockport, Cheshire, SK7 5AS.

 

The company exists as a holding company and did not trade during the financial year to 30 June 2023.

 

The group consists of BPG Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

BPG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company BPG Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 30 June 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

With respect to the separate financial statements of the Dutch legal entities included in the consolidation, the company availed itself of the exemption laid down in section 403 subsection 1 of Book 2 of the Netherlands Civil Code. Pursuant to said section 403, the group has issued declarations of assumption of liability for the Dutch subsidiaries forming part of the consolidation.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. These reasons are set out as part of Note 2. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.

1.8
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

BPG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 17 -

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives. As the asset isn't currently in use, no amortisation has yet been charged.

1.9
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and machinery
7 - 15% straight line
Fixtures, fittings and equipment
10 - 33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Work in progress includes labour and attributable overheads. Finished goods are valued at cost by reducing the sales value by the appropriate gross margin percentage.

BPG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 18 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.14
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. Trade creditors are recognised initially at transaction price.

1.15
Equity instruments

Share capital issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.16
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

BPG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 19 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.20
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

BPG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Going concern

The group has made a profit of £62,763 during the current period. A forecast has been prepared by the directors in which the group is expected to return to stronger profitability levels in the foreseeable future. Directors have considered operational cash flows along with the financial projections for the group and have concluded that they fully expect the group to continue in operational existence for the foreseeable future.

BPG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 21 -
3
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(5,836)
34,900
Research and development costs
9,600
9,022
Depreciation of owned tangible fixed assets
129,682
127,216
Operating lease charges
268,551
168,611
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and the company
19,332
14,025
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
65
59
1
1

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,790,003
1,540,848
-
0
-
0
Social security costs
135,279
120,055
-
-
Pension costs
57,377
52,255
-
0
-
0
1,982,659
1,713,158
-
0
-
0
BPG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 22 -
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
26,648
25,500
7
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
20,937
11,477
8
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(384)
384
Group tax relief
(52,360)
-
0
Total current tax
(52,744)
384
Deferred tax
Origination and reversal of timing differences
(6,134)
(44,265)
Total tax credit
(58,878)
(43,881)
BPG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
8
Taxation
(Continued)
- 23 -

The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
3,885
213,458
Expected tax charge based on the standard rate of corporation tax in the UK of 20.50% (2022: 19.00%)
796
40,557
Tax effect of expenses that are not deductible in determining taxable profit
2,574
2,234
Adjustments in respect of prior years
(387)
384
Effect of change in corporation tax rate
(1,105)
(4,064)
Research and development tax credit
(52,356)
-
0
Deferred tax adjustments in respect of prior years
-
0
31,522
Deferred tax not recognised
-
0
(58,855)
Fixed asset differences
(8,400)
(2,552)
Additional R&D deduction
-
0
(97,691)
Surrender of tax losses for R&D credit
-
0
44,584
Taxation credit
(58,878)
(43,881)
9
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Dividends paid
99,024
132,500
10
Intangible fixed assets
Group
Goodwill
Product development
Total
£
£
£
Cost
At 1 July 2022 and 30 June 2023
988,000
9,448
997,448
Amortisation and impairment
At 1 July 2022 and 30 June 2023
988,000
-
0
988,000
BPG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
10
Intangible fixed assets
(Continued)
- 24 -
Carrying amount
At 30 June 2023
-
0
9,448
9,448
At 30 June 2022
-
0
9,448
9,448
The company had no intangible fixed assets at 30 June 2023 or 30 June 2022.
11
Tangible fixed assets
Group
Plant and machinery
Fixtures, fittings and equipment
Total
£
£
£
Cost
At 1 July 2022
2,452,440
285,000
2,737,440
Additions
213,627
-
0
213,627
At 30 June 2023
2,666,067
285,000
2,951,067
Depreciation and impairment
At 1 July 2022
2,151,016
271,416
2,422,432
Depreciation charged in the year
128,431
1,251
129,682
At 30 June 2023
2,279,447
272,667
2,552,114
Carrying amount
At 30 June 2023
386,620
12,333
398,953
At 30 June 2022
301,424
13,584
315,008
The company had no tangible fixed assets at 30 June 2023 or 30 June 2022.
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
683,000
683,000
BPG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
12
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022 and 30 June 2023
683,000
Carrying amount
At 30 June 2023
683,000
At 30 June 2022
683,000
13
Subsidiaries

Details of the company's subsidiaries at 30 June 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Bulk Packaging Group BV
Netherlands
Ordinary
75.00
-
Fibrestar Drums Limited
England and Wales
Ordinary
-
75.00
Bulk Number Seven Limited
England and Wales
Ordinary
-
75.00
Mulox International Holding BV
Netherlands
Ordinary
-
75.00

All subsidiaries are included in the consolidated financial statements.

 

The registered office Bulk Packaging Group BV and MIH BV is Johannes Vermeerplein 11, 1071 DV

Amsterdam, Netherlands.

 

Fibrestar Drums Limited and Bulk Number Seven Limited share the same registered office as BPG

Holdings Limited, details of which can be found on the company information page.

BPG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
715,075
748,995
-
-
Work in progress
41,209
42,718
-
-
Finished goods and goods for resale
164,747
175,295
-
0
-
0
921,031
967,008
-
-
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,821,118
1,749,904
-
0
-
0
Other debtors
4,264
(2,810)
-
0
-
0
Prepayments and accrued income
41,615
44,327
-
0
-
0
1,866,997
1,791,421
-
-
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
18
100,000
100,000
-
0
-
0
Obligations under finance leases
19
4,226
5,797
-
0
-
0
Trade creditors
1,557,791
1,612,015
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
498,000
498,000
Corporation tax payable
94,000
94,384
94,000
94,000
Other taxation and social security
77,939
60,351
-
-
Other creditors
51,642
-
0
-
0
-
0
Accruals and deferred income
695,163
654,495
-
0
-
0
2,580,761
2,527,042
592,000
592,000

The bank loans are secured by a fixed and floating charge over the company's assets. The finance leases are secured on the assets concerned.

 

Within accruals, there is defined pension scheme contribution due of £12,144 (2022 - £10,425).

 

BPG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 27 -
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
18
216,667
316,667
-
0
-
0
Obligations under finance leases
19
-
0
3,260
-
0
-
0
216,667
319,927
-
-

The bank loans are secured by a fixed and floating charge over the company's assets. The finance leases are secured on the assets concerned.

18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
316,667
416,667
-
0
-
0
Payable within one year
100,000
100,000
-
0
-
0
Payable after one year
216,667
316,667
-
0
-
0
19
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
4,226
5,797
-
0
-
0
In two to five years
-
0
3,260
-
0
-
0
4,226
9,057
-
-

Finance lease payments represent rentals payable by the group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

BPG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 28 -
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
71,922
18,055
Tax losses
(60,001)
-
11,921
18,055
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 July 2022
18,055
-
Credit to profit or loss
(6,134)
-
Liability at 30 June 2023
11,921
-
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
57,377
52,255

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

BPG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 29 -
22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary B shares of £1 each
45
45
45
45
Ordinary C shares of £1 each
10
10
10
10
55
55
55
55

All shares carry equal voting rights and are identical in all respect other than different dividends may be declared upon the different classes of share capital.

23
Reserves
Profit and loss reserves

The profit and loss account represents all current and prior period retained profits and losses.

24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
386,006
186,609
-
-
Between two and five years
1,437,188
18,194
-
-
1,823,194
204,803
-
-
25
Controlling party

BPG Holdings Limited is controlled by C G Pardoe by virtue of his majority shareholding.

BPG HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 30 -
26
Related party transactions

During the year the company received management recharges of £99,024 (2022: £132,500) from a subsidiary company.

 

At the year end, included within amounts owed to group undertakings was of £498,000 (2022: £498,000) due to a subsidiary company.

27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
62,763
257,339
Adjustments for:
Taxation credited
(58,878)
(43,881)
Finance costs
20,937
11,477
Depreciation and impairment of tangible fixed assets
129,682
127,216
Movements in working capital:
Decrease/(increase) in stocks
45,977
(234,692)
Increase in debtors
(75,576)
(197,637)
Increase in creditors
55,674
227,110
Cash generated from operations
180,579
146,932
28
Analysis of changes in net funds - group
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
1,116,018
(205,480)
910,538
Borrowings excluding overdrafts
(416,667)
100,000
(316,667)
Obligations under finance leases
(9,057)
4,831
(4,226)
690,294
(100,649)
589,645
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