Company registration number 06217948 (England and Wales)
T. H. BAKER GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
T. H. BAKER GROUP LIMITED
COMPANY INFORMATION
Directors
A H Higgs
A S D Higgs
P J Higgs
R A Wylie
Secretary
A S D Higgs
Company number
06217948
Registered office
Churchfield House
36 Vicar Street
Dudley
West Midlands
England
DY2 8RG
Auditor
BK Plus Audit Limited
Churchfield House
36 Vicar Street
Dudley
West Midlands
United Kingdom
DY2 8RG
T. H. BAKER GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
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 - 32
T. H. BAKER GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Review of the business

The group is primarily focused on the retail jewellery trade selling a range of branded and own brand watches and jewellery. In addition to this the group has further retail operations selling various Hobby related products.

 

Group sales have rebounded strongly in the current period following disruption caused by covid related restrictions.

 

The results for the year and the financial position at the yearend were considered satisfactory by the directors who expect continued growth for the foreseeable future.

Principal risks and uncertainties

The directors evaluate the main risks facing the group in monthly board meetings and weekly management meetings. In addition, measures are in place to manage and address risks on a daily basis through the policies and procedures implemented by the group.

 

The principal risks and uncertainties facing the group are broadly grouped as: operational, competitive and financial.

 

Operational and Competitive Risks

 

The group operates in both the high street retail arena and over the internet. The group is exposed to macroeconomic risks that have an impact on consumers’ disposable income and on fashion and brand trends in the retail jewellery market. The group is also exposed to competitive risks from a number of other jewellery retailers. The directors regularly monitor the performance of individual stores and take appropriate actions where necessary. They also closely monitor buying trends across the group in conjunction with key suppliers to ensure appropriate product ranges are carried.

 

The success of the group is very dependent upon the recruitment and retention of good quality and the directors seek to make the group an employer of choice in its sector.

 

The group has developed and maintains strong relationships with all key stakeholders such as suppliers and finance providers to provide a strong base for the operational activities of the group.

 

Financial Risks

 

The group has established a financial reporting and control framework with the primary objective of protecting the group from events that hinder the achievement of the group’s performance objective.

 

The group has minimal credit exposures as the significant majority of sales are paid for at the point of sale.

 

The group uses Barclays Bank PLC, a major UK clearing bank, and therefore liquidity risk is considered low. The group has strong relationships with Barclays Bank PLC and has in place appropriate banking facilities.

 

Development and performance

The directors expect the group to continue to grow despite difficult market conditions and economic uncertainty. Continued review of overheads is an important factor in maintaining the profitability of the group and ensuring that it operates efficiently and effectively within a well-controlled cost base.

T. H. BAKER GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Key performance indicators

The directors use key performance indicators such as performance ratios, amongst others, in order to ensure the business is operating efficiently. They consider that the key financial indicators are turnover, gross profit margin and profit before taxation.

 

There was a decrease in group turnover of 17.3% (2022 - increase 25.4%), falling from £30.2m in 2022 to £24.9m in 2023.

 

The group's gross profit decreased by 24.4% (2022 - decreased by 16.4%) compared to the results of the previous year, falling from £9.1m in 2022 to £6.9m in 2023. Gross profit margin decreased from 30.1% in 2022 to 27.5% in 2023.

 

The profit before tax of £881.3k (2.9% of turnover) in 2022 has changed to a loss before tax of £101.7k (0.4% of turnover) in 2023.

 

On behalf of the board

A H Higgs
Director
25 March 2024
T. H. BAKER GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of retail jewellers.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

A H Higgs
A S D Higgs
P J Higgs
R A Wylie
Auditor

In accordance with the company's articles, a resolution proposing that BK Plus Audit Limited 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.

Medium-sized companies exemption

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

On behalf of the board
A H Higgs
Director
25 March 2024
T. H. BAKER GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

The directors are responsible for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are 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. They are 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.

T. H. BAKER GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF T. H. BAKER GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of T H Baker Group (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group profit and loss account, 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 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 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 directors with respect to going concern are described in the relevant sections of this report.

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.

Opinions on other matters prescribed by the Companies Act 2006

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

T. H. BAKER GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF T. H. BAKER GROUP LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 directors either intend to liquidate the parent 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.

 

From the preliminary of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

 

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

 

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.

T. H. BAKER GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF T. H. BAKER GROUP 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.

Christopher Hession C.A. (Senior Statutory Auditor)
For and on behalf of BK Plus Audit Limited
25 March 2024
Statutory Auditor
Churchfield House
36 Vicar Street
Dudley
West Midlands
United Kingdom
DY2 8RG
T. H. BAKER GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
24,927,335
30,149,227
Cost of sales
(18,063,153)
(21,071,250)
Gross profit
6,864,182
9,077,977
Administrative expenses
(7,012,300)
(8,399,521)
Other operating income
39,532
195,243
Operating (loss)/profit
4
(108,586)
873,699
Interest receivable and similar income
8
6,828
7,561
(Loss)/profit before taxation
(101,758)
881,260
Tax on (loss)/profit
9
33,580
(235,786)
(Loss)/profit for the financial year
(68,178)
645,474
(Loss)/profit for the financial year is all attributable to the owner of the parent company.
T. H. BAKER GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
£
£
(Loss)/profit for the year
(68,178)
645,474
Other comprehensive income
-
-
Total comprehensive income for the year
(68,178)
645,474
Total comprehensive income for the year is all attributable to the owners of the parent company.
T. H. BAKER GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
430,000
550,000
Other intangible assets
10
120,189
214,114
Total intangible assets
550,189
764,114
Tangible assets
11
918,516
494,737
1,468,705
1,258,851
Current assets
Stocks
14
15,128,376
15,653,063
Debtors
15
1,129,649
2,869,914
Investments
16
200
200
Cash at bank and in hand
356,523
935,391
16,614,748
19,458,568
Creditors: amounts falling due within one year
17
(10,964,851)
(13,530,639)
Net current assets
5,649,897
5,927,929
Total assets less current liabilities
7,118,602
7,186,780
Provisions for liabilities
Provisions
19
85,883
85,883
(85,883)
(85,883)
Net assets
7,032,719
7,100,897
Capital and reserves
Called up share capital
22
1,513,000
1,513,000
Profit and loss reserves
5,519,518
5,587,696
Equity attributable to owner of the parent company
7,032,518
7,100,696
Non-controlling interests
201
201
7,032,719
7,100,897

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 25 March 2024 and are signed on its behalf by:
25 March 2024
A H Higgs
Director
Company registration number 06217948 (England and Wales)
T. H. BAKER GROUP LIMITED
COMPANY BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
953,000
953,000
Current assets
Debtors
15
11,515,127
11,685,622
Cash at bank and in hand
93
86
11,515,220
11,685,708
Creditors: amounts falling due within one year
17
(7,412,105)
(7,588,924)
Net current assets
4,103,115
4,096,784
Net assets
5,056,115
5,049,784
Capital and reserves
Called up share capital
22
1,513,000
1,513,000
Profit and loss reserves
3,543,115
3,536,784
Total equity
5,056,115
5,049,784

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 £6,331 (2022 - £6,051 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 25 March 2024 and are signed on its behalf by:
25 March 2024
A H Higgs
Director
Company registration number 06217948 (England and Wales)
T. H. BAKER GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
Balance at 1 April 2021
1,513,000
4,942,222
6,455,222
201
6,455,423
Year ended 31 March 2022:
Profit and total comprehensive income
-
645,474
645,474
-
645,474
Balance at 31 March 2022
1,513,000
5,587,696
7,100,696
201
7,100,897
Year ended 31 March 2023:
Loss and total comprehensive income
-
(68,178)
(68,178)
-
(68,178)
Balance at 31 March 2023
1,513,000
5,519,518
7,032,518
201
7,032,719
T. H. BAKER GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2021
1,513,000
3,530,734
5,043,734
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
6,050
6,050
Balance at 31 March 2022
1,513,000
3,536,784
5,049,784
Year ended 31 March 2023:
Profit and total comprehensive income
-
6,331
6,331
Balance at 31 March 2023
1,513,000
3,543,115
5,056,115
T. H. BAKER GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
433,358
(83,914)
Income taxes paid
(165,878)
(69,908)
Net cash inflow/(outflow) from operating activities
267,480
(153,822)
Investing activities
Purchase of intangible assets
(103,156)
(600,000)
Purchase of tangible fixed assets
(750,000)
(148,877)
Interest received
6,828
7,561
Net cash used in investing activities
(846,328)
(741,316)
Net decrease in cash and cash equivalents
(578,848)
(895,138)
Cash and cash equivalents at beginning of year
935,371
1,830,509
Cash and cash equivalents at end of year
356,523
935,371
Relating to:
Cash at bank and in hand
356,523
935,391
Bank overdrafts included in creditors payable within one year
-
(20)
T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information

T H Baker Group (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Churchfield House, 36 Vicar Street, Dudley, West Midlands, United Kingdom, DY2 8RG.

 

The group consists of T H Baker Group 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.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

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.

T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 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 T H Baker Group together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. 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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.6
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, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Website development expenditure
2 years
Goodwill
5 years
1.8
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:

Fixtures and fittings
20% straight line and 15% reducing balance
Computers
20% and 33% straight line
Motor vehicles
25% reducing balance

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.

1.9
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.

T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
1.11
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

Change in accounting estimate

 

During the year the directors undertook a review of the stock provision and due to the value of stock being driven by gold and diamond prices have updated the provision for stock older than 48 days.

 

The impact in the accounts for the year ended 31/03/2023 is an increase in stock of £116,224.

1.12
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.

1.13
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.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. 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. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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 finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments 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.

1.15
Taxation

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

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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 22 -
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.18
Retirement benefits

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

1.19
Leases

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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.20
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are 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.

Stock provision

The group considers it necessary to evaluate the recoverability of the cost of stock. The stock levels are constantly reviewed and, should there be an indication of obsolescence, the stock is written down to its assessed net realisable value.

T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
24,927,335
30,149,227
2023
2022
£
£
Turnover analysed by geographical market
UK Sales
24,927,335
30,149,227
2023
2022
£
£
Other revenue
Interest income
6,828
7,561
Grants received
-
170,198
4
Operating (loss)/profit
2023
2022
£
£
Operating (loss)/profit for the year is stated after charging/(crediting):
Government grants
-
(170,198)
Depreciation of owned tangible fixed assets
326,221
397,409
Amortisation of intangible assets
317,081
221,291
Operating lease charges
1,299,938
1,324,648
5
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 company
-
-
Audit of the financial statements of the company's subsidiaries
54,422
53,775
T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
6
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
Management
6
6
-
-
Retail managers and assistants
194
216
-
-
Total
200
222
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,148,457
4,106,860
-
0
-
0
Social security costs
312,809
312,946
-
-
Pension costs
260,856
307,694
-
0
-
0
4,722,122
4,727,500
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
175,828
331,957
Company pension contributions to defined contribution schemes
11,561
95,077
187,389
427,034
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
11
26
Other interest income
6,817
7,535
Total income
6,828
7,561
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
235,786
T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Taxation
2023
2022
£
£
(Continued)
- 25 -
Deferred tax
Origination and reversal of timing differences
(33,580)
-
0
Total tax (credit)/charge
(33,580)
235,786

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

2023
2022
£
£
(Loss)/profit before taxation
(101,758)
881,260
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(19,334)
167,439
Tax effect of expenses that are not deductible in determining taxable profit
8,049
16,079
Tax effect of income not taxable in determining taxable profit
(92)
-
0
Unutilised tax losses carried forward
35,924
-
0
Change in unrecognised deferred tax assets
(114,261)
-
0
Group relief
30,856
-
0
Permanent capital allowances in excess of depreciation
(7,267)
-
0
Amortisation on assets not qualifying for tax allowances
-
0
9,500
Depreciation in excess of capital allowances
-
0
10,223
Goodwill amortisation
32,545
32,545
Taxation (credit)/charge
(33,580)
235,786
10
Intangible fixed assets
Group
Goodwill
Website development expenditure
Goodwill
Total
£
£
£
£
Cost
At 1 April 2022
600,000
87,012
856,455
1,543,467
Additions
-
0
103,156
-
0
103,156
At 31 March 2023
600,000
190,168
856,455
1,646,623
Amortisation and impairment
At 1 April 2022
50,000
87,012
642,341
779,353
Amortisation charged for the year
120,000
25,790
171,291
317,081
At 31 March 2023
170,000
112,802
813,632
1,096,434
T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Intangible fixed assets
(Continued)
- 26 -
Carrying amount
At 31 March 2023
430,000
77,366
42,823
550,189
At 31 March 2022
550,000
-
0
214,114
764,114
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
11
Tangible fixed assets
Group
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
4,658,573
237,178
34,817
4,930,568
Additions
750,000
-
0
-
0
750,000
At 31 March 2023
5,408,573
237,178
34,817
5,680,568
Depreciation and impairment
At 1 April 2022
4,206,539
203,330
25,962
4,435,831
Depreciation charged in the year
315,381
8,626
2,214
326,221
At 31 March 2023
4,521,920
211,956
28,176
4,762,052
Carrying amount
At 31 March 2023
886,653
25,222
6,641
918,516
At 31 March 2022
452,034
33,848
8,855
494,737
The company had no tangible fixed assets at 31 March 2023 or 31 March 2022.

Tangible fixed assets with a net book value of £918,516 (2022: £494,737) have been pledged as security for bank loans payable by the group.

12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
953,000
953,000
T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
12
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
953,000
Carrying amount
At 31 March 2023
953,000
At 31 March 2022
953,000
13
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
T H Baker & Company (Established 1888) Ltd
1
Retail Jewellers
£1 A Ordinary Shares
100.00
West Midland Merchants Ltd
1
Wholesale Jewellers
£1 A Ordinary Shares
100.00
T H Baker Goldsmiths Ltd
1
Retail Jewellers
£1 Ordinary Shares
100.00
T H Baker (Management Services) Ltd
1
Payroll Management
£1 Ordinary Shares
100.00
T H Bakers Ltd
1
Retail of cut glass and jewellery
£1 Ordinary Shares
100.00
Kheper Ltd
1
Holding company
£1 Ordinary Shares
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Churchfield House, 36 Vicar Street, Dudley, West Midlands, DY2 8RG
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
15,128,376
15,653,063
-
0
-
0
T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
12,996
1,343,926
-
0
-
0
Corporation tax recoverable
22,945
22,945
-
0
-
0
Amounts owed by group undertakings
39,289
105,349
11,450,130
11,420,475
Other debtors
163,847
397,763
64,997
265,147
Prepayments and accrued income
740,522
813,553
-
0
-
0
979,599
2,683,536
11,515,127
11,685,622
Deferred tax asset (note 20)
150,050
-
0
-
0
-
0
1,129,649
2,683,536
11,515,127
11,685,622
Amounts falling due after more than one year:
Deferred tax asset (note 20)
-
0
186,378
-
0
-
0
Total debtors
1,129,649
2,869,914
11,515,127
11,685,622
16
Current asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Unlisted investments
200
200
-
-
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
-
0
20
-
0
-
0
Trade creditors
2,197,581
2,934,095
-
0
-
0
Amounts owed to group undertakings
7,307,426
7,474,794
7,401,307
7,565,606
Corporation tax payable
-
0
235,786
-
0
1,431
Other taxation and social security
406,693
603,948
-
-
Other creditors
593,182
1,272,809
10,798
21,887
Accruals and deferred income
459,969
1,009,187
-
0
-
0
10,964,851
13,530,639
7,412,105
7,588,924
T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank overdrafts
-
0
20
-
0
-
0
Payable within one year
-
0
20
-
0
-
0

Barclays Bank plc hold a fixed charge over all book and other debts, goodwill, uncalled capital and intellectual property rights and a first floating charge over all assets and undertakings, both present and future.

 

Cross guarantee and Debenture have been given by and between T H Baker Group Limited, T H Baker Holdings Limited, T H Baker & Company (Established 1888) Limited, T H Baker Limited, West Midland Merchants Limited, Creedpoint Limited, T H Baker (Management Services) Limited to secure all liabilities.

19
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Dilapidations
85,883
85,883
-
-
Movements on provisions:
Dilapidations
Group
£
At 1 April 2022 and 31 March 2023
85,883
20
Deferred taxation

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

Assets
Assets
2023
2022
Group
£
£
Deferred Tax Asset
150,050
186,378
The company has no deferred tax assets or liabilities.
T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
20
Deferred taxation
(Continued)
- 30 -
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 April 2022
(186,378)
-
Charge to profit or loss
33,580
-
Other
2,748
-
Asset at 31 March 2023
(150,050)
-

 

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
260,856
307,694

The group also operates additional defined contribution schemes for the benefit of five directors.

 

The assets of the schemes are held separately from those of the group in independently administered funds. The pension costs charged represents contributions payable by the group to the funds and amounted to £11,561 (2022: £80,000).

 

The group also operates a defined contribution scheme for all its qualifying employees.

 

The assets of the scheme are held separately from those of the group in independently administered funds. The pension costs charged represents contributions payable by the group to the funds and amounted to £249,295 (2022: £227,694). There were £21,912 (2022: £22,613) of contributions outstanding at the year end.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,513,000
1,513,000
1,513,000
1,513,000
T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
23
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
894,242
1,944,988
-
-
Between two and five years
2,081,633
4,541,848
-
-
In over five years
676,100
2,110,760
-
-
3,651,975
8,597,596
-
-
24
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
2023
2022
£
£
Group
Other related parties
334,043
290,362
Other information

The group continues to advance a loan to the pension fund of four directors. The amount outstanding was £64,997 (2022: £265,148). Interest is charged at 2.5% over the bank base rate. The loan is repayable on demand.

25
Controlling party

T H Baker Group Limited is a wholly owned subsidiary of T H Baker Holdings Limited.

T H Baker Holdings Limited is a wholly owned subsidiary of T H Baker Global Incorporated Limited. That company is controlled by Mr A S D Higgs and Mr P J Higgs.

 

As well as preparing consolidated accounts the individual accounts of T H Baker Group Limited are consolidated within the ultimate parent company T H Baker Global Incoporated Limited, accounts for which are available at the registered office Churchfield House, 36 Vicar Street, Dudley, West Midlands, DY2 8RG.

T. H. BAKER GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
26
Cash generated from/(absorbed by) group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(68,178)
645,474
Adjustments for:
Taxation (credited)/charged
(33,580)
235,786
Investment income
(6,828)
(7,561)
Amortisation and impairment of intangible assets
317,081
221,291
Depreciation and impairment of tangible fixed assets
326,221
397,409
Decrease in provisions
-
(95,950)
Movements in working capital:
Decrease/(increase) in stocks
524,687
(1,769,144)
Decrease/(increase) in debtors
1,501,184
(1,509,796)
(Decrease)/increase in creditors
(2,127,229)
1,798,577
Cash generated from/(absorbed by) operations
433,358
(83,914)
27
Analysis of changes in net funds - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
935,391
(578,868)
356,523
Bank overdrafts
(20)
20
-
0
935,371
(578,848)
356,523
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.300A H HiggsA S D HiggsP J HiggsR A WylieR A WylieMrs P J HiggsA S D 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