Company Registration No. 09300364 (England and Wales)
BPS WARWICK LIMITED
CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
BPS WARWICK LIMITED
COMPANY INFORMATION
DIRECTOR
J R Dibble
SECRETARY
D I Battin
COMPANY NUMBER
09300364
REGISTERED OFFICE
Tachbrook Park Drive
Tachbrook Park
Leamington Spa
Warwickshire
CV34 6RH
AUDITOR
JW Hinks LLP
Chartered Accountants
19 Highfield Road
Edgbaston
Birmingham
B15 3BH
BPS WARWICK LIMITED
CONTENTS
PAGE
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 32
BPS WARWICK LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 JUNE 2023
- 1 -

The director presents the strategic report for the period 18 month trading period ended 30 June 2023.

FAIR REVIEW OF THE BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of our group activities during the reporting period and the position at the period end. The review is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties we face.

 

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the Group as a whole, including maintaining margins in a period of volatile inflation, managing stock levels and supporting customers with suitable credit limited during challenging times. We track performance against industry indices to aid focus and understanding of trends across our sector.

 

 

Turnover and gross margin of the Group were as follows:

 

18 months to 30 June 2023 Year ended 31 December 2021

£ £

 

Turnover 34,631,751 24,048,431

 

Gross profit 11,140,546 7,958,529

 

Gross profit (%) 32.17 33.09    

The group operates 2 complementary trading businesses. It operates builders’ merchants with kitchen and bathroom centres as well as specialist timber and landscaping centres in Warwickshire and Gloucestershire supplying independent builders and the general public. It also operates a fencing manufacturing business selling to national and regional fencing contractors.

 

Trading performance in the 18 month period to June 2023

The reported period includes stable trading in 2022 for all group businesses when compared to the prior financial period. The Group’s customer base is dependent upon consumer home investment and repair activity and new house building. Consumer driven demand remained strong however the sharp reduction in house building in 2023 compared to 2022 combined with benign weather conditions in 2023 caused some oversupply as well as demand contraction for fencing products. The prior financial period reflects the unusual profitability of the sector which benefitted from consumer investment in their homes with changing work conditions post covid.

 

 

Business Environment in the 18 month period to June 2023

The Group’s sectors continued to experience the economic challenges post Covid and from the impact of the Ukraine war on supply chain efficiency and pricing. Timber pricing remained particularly volatile with other key costs subject to inflation, particularly fuel, power and wages. Consumer demand was tempered by the cost of living crisis and rising Bank of England Base Rates. As a result of the overall outlook for the Group, the Group boards instigated a strategic review to identify opportunity to improve the customer offering and service, replacing and streamlining product ranges. New software was introduced to improve efficiency and responsiveness as well as control and reporting. The Group continue to prioritise providing a good working environment for its valued staff, investing in skills development and career progression,

 

Since the period end, the Group has achieved key parts of its strategic review, divesting of one builders’ merchant branch to a trade buyer and reduced its substantial freehold property estate to improve focus on core activity and ensure high levels of liquidity are maintained. There are positive indicators from a reduction in mortgage rates and expectations of base rate reductions with the rate of inflation reducing that should improve trading conditions for the Group businesses.

 

 

 

 

BPS WARWICK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 2 -

On behalf of the board

J R Dibble
DIRECTOR
29 March 2024
BPS WARWICK LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 30 JUNE 2023
- 3 -

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

 

 

DIRECTOR

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

J R Dibble
E M Dibble
(Resigned 24 October 2023)
RESULTS AND DIVIDENDS

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

Ordinary dividends were paid amounting to £165,870. The director does not recommend payment of a further dividend.

AUDITOR

The auditor, JW Hinks LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

On behalf of the board
J R Dibble
DIRECTOR
29 March 2024
BPS WARWICK LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2023
- 4 -

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.

BPS WARWICK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BPS WARWICK LIMITED
- 5 -
OPINION

We have audited the financial statements of BPS Warwick Limited (the 'parent company') and its subsidiaries (the 'group') for the period 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, the company 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.

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:

BPS WARWICK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BPS WARWICK 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 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.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

 

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements and discussed the policies and procedures regarding compliance.

Specific areas considered were as follows:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected all irregularities including those leading to material misstatements in the financial statements or non-compliance with regulation, even though we have properly planned and performed our audit in accordance with auditing standards.

This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

 

A further description of our responsibilities 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.

BPS WARWICK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BPS WARWICK 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.

MARCUS ROSE FCA CTA (SENIOR STATUTORY AUDITOR)
FOR AND ON BEHALF OF JW HINKS LLP
CHARTERED ACCOUNTANTS
STATUTORY AUDITOR
19 Highfield Road
Birmingham
Edgbaston
B15 3BH
29 March 2024
BPS WARWICK LIMITED
CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2023
- 8 -
Period
Year
ended
ended
30 June
31 December
2023
2021
Notes
£
£
Turnover
4
34,631,751
24,048,431
Cost of sales
(23,491,205)
(16,089,902)
GROSS PROFIT
11,140,546
7,958,529
Administrative expenses
(11,497,270)
(6,697,766)
Other operating income
3,600
10,684
OPERATING (LOSS)/PROFIT
5
(353,124)
1,271,447
Interest payable and similar expenses
9
(211,697)
(104,013)
(LOSS)/PROFIT BEFORE TAXATION
(564,821)
1,167,434
Taxation
10
(19,705)
(49,595)
(LOSS)/PROFIT FOR THE FINANCIAL PERIOD
26
(584,526)
1,117,839
OTHER COMPREHENSIVE INCOME
Revaluation of tangible fixed assets
3,441,305
-
0
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
2,856,779
1,117,839
Total comprehensive income for the period is all attributable to the owners of the parent company.

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

BPS WARWICK LIMITED
GROUP BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 9 -
2023
2021
Notes
£
£
£
£
FIXED ASSETS
Negative goodwill
12
-
0
-
0
Tangible assets
13
9,517,152
6,749,654
Investments
14
21,100
21,100
9,538,252
6,770,754
CURRENT ASSETS
Stocks
15
3,959,546
3,446,488
Debtors
17
3,242,180
2,239,956
Cash at bank and in hand
179,203
6,580
7,380,929
5,693,024
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
18
(6,436,167)
(4,203,436)
Net current assets
944,762
1,489,588
TOTAL ASSETS LESS CURRENT LIABILITIES
10,483,014
8,260,342
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
19
(560,723)
(1,048,665)
PROVISIONS FOR LIABILITIES
(69,300)
(49,595)
NET ASSETS
9,852,991
7,162,082
CAPITAL AND RESERVES
Called up share capital
24
29,707
29,707
Revaluation reserve
25
3,441,305
-
0
Profit and loss reserves
26
6,381,979
7,132,375
EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY
9,852,991
7,162,082
The financial statements were approved by the board of directors and authorised for issue on 29 March 2024 and are signed on its behalf by:
29 March 2024
J R Dibble - Director
BPS WARWICK LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 10 -
30 June 2023
31 December 2021
Notes
£
£
£
£
FIXED ASSETS
Investments
14
1,305,671
1,305,671
CURRENT ASSETS
Cash at bank and in hand
-
0
1,870
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
18
(1,267,080)
(1,275,964)
NET CURRENT LIABILITIES
(1,267,080)
(1,274,094)
NET ASSETS
38,591
31,577
CAPITAL AND RESERVES
Called up share capital
24
29,707
29,707
Profit and loss reserves
26
8,884
1,870
TOTAL EQUITY
38,591
31,577

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 period was £172,884 (2021 - £149,501 profit).

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

The financial statements were approved by the board of directors and authorised for issue on 29 March 2024 and are signed on its behalf by:
29 March 2024
J R Dibble
DIRECTOR
Company registration number 09300364 (England and Wales)
BPS WARWICK LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2023
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
29,707
-
0
6,163,736
6,193,443
PERIOD ENDED 31 DECEMBER 2021:
Profit and total comprehensive income for the period
-
-
1,117,839
1,117,839
Dividends
11
-
-
(149,200)
(149,200)
BALANCE AT 31 DECEMBER 2021
29,707
-
0
7,132,375
7,162,082
PERIOD ENDED 30 JUNE 2023:
Loss for the period
-
-
(584,526)
(584,526)
Other comprehensive income:
Revaluation of tangible fixed assets
-
3,441,305
-
3,441,305
Total comprehensive income for the period
-
3,441,305
(584,526)
2,856,779
Dividends
11
-
-
(165,870)
(165,870)
BALANCE AT 30 JUNE 2023
29,707
3,441,305
6,381,979
9,852,991
BPS WARWICK LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
BALANCE AT 1 JANUARY 2021
29,707
1,569
31,276
PERIOD ENDED 31 DECEMBER 2021:
Profit and total comprehensive income for the period
-
149,501
149,501
Dividends
11
-
(149,200)
(149,200)
BALANCE AT 31 DECEMBER 2021
29,707
1,870
31,577
PERIOD ENDED 30 JUNE 2023:
Profit and total comprehensive income for the period
-
172,884
172,884
Dividends
11
-
(165,870)
(165,870)
BALANCE AT 30 JUNE 2023
29,707
8,884
38,591
BPS WARWICK LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 JUNE 2023
- 13 -
2023
2021
Notes
£
£
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Cash generated from operations
33
156,236
413,486
Interest paid
(211,697)
(104,013)
NET CASH (OUTFLOW)/INFLOW FROM OPERATING ACTIVITIES
(55,461)
309,473
INVESTING ACTIVITIES
Purchase of tangible fixed assets
(116,759)
(258,875)
Proceeds on disposal of tangible fixed assets
21,033
350
NET CASH USED IN INVESTING ACTIVITIES
(95,726)
(258,525)
FINANCING ACTIVITIES
Repayment of loans
(468,203)
(428,894)
Payment of finance leases obligations
(18,057)
(17,918)
Dividends paid to equity shareholders
(165,870)
(149,200)
NET CASH USED IN FINANCING ACTIVITIES
(652,130)
(596,012)
NET DECREASE IN CASH AND CASH EQUIVALENTS
(803,317)
(545,064)
Cash and cash equivalents at beginning of period
(1,086,908)
(541,844)
CASH AND CASH EQUIVALENTS AT END OF PERIOD
(1,890,225)
(1,086,908)
RELATING TO:
Cash at bank and in hand
179,203
6,580
Bank overdrafts included in creditors payable within one year
(2,069,428)
(1,093,488)
BPS WARWICK LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 JUNE 2023
- 14 -
2023
2021
Notes
£
£
£
£
CASH FLOWS FROM OPERATING ACTIVITIES
Cash absorbed by operations
34
(26,180)
(19,699)
INVESTING ACTIVITIES
Dividends received
186,709
169,200
NET CASH GENERATED FROM INVESTING ACTIVITIES
186,709
169,200
FINANCING ACTIVITIES
Dividends paid to equity shareholders
(165,870)
(149,200)
NET CASH USED IN FINANCING ACTIVITIES
(165,870)
(149,200)
NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
(5,341)
301
Cash and cash equivalents at beginning of period
1,870
1,569
CASH AND CASH EQUIVALENTS AT END OF PERIOD
(3,471)
1,870
RELATING TO:
Cash at bank and in hand
-
0
1,870
Bank overdrafts included in creditors payable within one year
(3,471)
-
BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
- 15 -
1
ACCOUNTING POLICIES
COMPANY INFORMATION

BPS Warwick Limited is a company limited by shares incorporated in England and Wales. The registered office is Tachbrook Park Drive, Tachbrook Park, Leamington Spa, Warwickshire, CV34 6RH.

 

The Group consists of BPS Warwick 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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 period was £172,884 (2021 - £149,501 profit).

The current year amounts presented in the financial statements (including the related notes) are not entirely comparable as they relate to a 18 months period to 30 June 2023. The period was extended as part of an internal reorganisation.

1.2
BASIS OF CONSOLIDATION

The consolidated financial statements incorporate those of BPS Warwick Limited and all of its subsidiaries (i.e. entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. All financial statements are made up to 30 June 2023.

 

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.

 

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.

 

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 period following the acquisition date.

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.

BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
1
ACCOUNTING POLICIES
(Continued)
- 16 -

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.

1.3
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 on the grounds that their bankers have confirmed continued support. There has also been the sale of a freehold property and sale of trade and assets post year end which has improved cashflow. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
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.

1.5
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. Negative goodwill arising on the consolidation of BPS Warwick Limited is considered to have a finite useful life and has been amortised in full.

 

Goodwill from the acquisition of a business in 2010 has been amortised evenly over its estimated useful life of ten 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.

Computer development
50% on cost
BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
1
ACCOUNTING POLICIES
(Continued)
- 17 -
1.6
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:

Freehold land and buildings
2% on cost and not provided
Leasehold land and buildings
2% on cost
Plant and equipment
25% on cost
Plant and machinery
20% on reducing balance and at varying rates on cost
Computer equipment
33% on 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.

1.7
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.

1.8
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.

1.9
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.

BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
1
ACCOUNTING POLICIES
(Continued)
- 18 -
1.10
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.

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, 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.

BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
1
ACCOUNTING POLICIES
(Continued)
- 19 -
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.

Derecognition of financial liabilities

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

1.11
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.

1.12
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.

1.13
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.

1.14
RETIREMENT BENEFITS

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

BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
1
ACCOUNTING POLICIES
(Continued)
- 20 -
1.15
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.

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.

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.

1.16
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
CHANGE IN ACCOUNTING POLICY

During the year the company changed its accounting policy in respect of freehold property valuation from the cost model to the revaluation model. This change in policy has been done so that the financial statements can provide reliable and more relevant information.

3
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.

CRITICAL JUDGEMENTS

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Valuation of stock

Goods for resale are valued on a moving average basis using the cost of the stock. The year end valuation is calculated using the average cost and the physical stock held.

BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
3
JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
(Continued)
- 21 -
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.

Provision for stock

A provision is included in the accounts for stock that has not moved in the last 12 months. Each line is categorised and an appropriate stock is provision is applied based on changes in trends and tastes.

4
TURNOVER AND OTHER REVENUE

An analysis of the group's turnover is as follows:

2023
2021
£
£
TURNOVER ANALYSED BY CLASS OF BUSINESS
Building and plumbing supplies
27,685,756
18,701,077
Manufacture and supply of fence panels
6,945,995
5,347,354
34,631,751
24,048,431
2023
2021
£
£
OTHER SIGNIFICANT REVENUE
Grants received
-
8,284
2023
2021
£
£
TURNOVER ANALYSED BY GEOGRAPHICAL MARKET
United Kingdom
34,631,751
24,048,431
5
OPERATING PROFIT
2023
2021
£
£
Operating profit for the period is stated after charging/(crediting):
Government grants
-
(8,284)
Depreciation of owned tangible fixed assets
403,101
195,201
Depreciation of tangible fixed assets held under finance leases
-
14,134
Loss on disposal of tangible fixed assets
(21,033)
394
Amortisation of intangible assets
-
0
1,062
Operating lease charges
1,545,908
937,136
BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 22 -
6
AUDITORS' REMUNERATION
2023
2021
Fees payable to the company's auditor and its associates:
£
£
FOR AUDIT SERVICES
Audit of the financial statements of the group and company
4,300
2,500
Audit of the company's subsidiaries
37,000
16,600
41,300
19,100
FOR OTHER SERVICES
All other non-audit services
7,500
-
7
EMPLOYEES

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

2023
2021
Number
Number
Directors
6
6
Sales and administration
142
141
148
147

Their aggregate remuneration comprised:

2023
2021
£
£
Wages and salaries
5,742,625
3,636,219
Social security costs
548,365
345,180
Pension costs
351,771
223,692
6,642,761
4,205,091
8
DIRECTOR'S REMUNERATION
2023
2021
£
£
Remuneration for qualifying services
70,000
51,035
Company pension contributions to defined contribution schemes
53,000
24,000
123,000
75,035

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2021: 2).

 

 

BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 23 -
9
INTEREST PAYABLE AND SIMILAR EXPENSES
2023
2021
£
£
INTEREST ON FINANCIAL LIABILITIES MEASURED AT AMORTISED COST:
Interest on bank overdrafts and loans
2,594
4,027
Other interest on financial liabilities
198,473
90,697
201,067
94,724
OTHER FINANCE COSTS:
Interest on finance leases and hire purchase contracts
10,630
9,289
Total finance costs
211,697
104,013
10
TAXATION
2023
2021
£
£
DEFERRED TAX
Origination and reversal of timing differences
19,705
49,595

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

2023
2021
£
£
(Loss)/profit before taxation
(564,821)
1,167,434
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(107,316)
221,812
Tax effect of expenses that are not deductible in determining taxable profit
77,023
3,670
Tax effect of utilisation of tax losses not previously recognised
-
0
(214,128)
Unutilised tax losses carried forward
(24,602)
-
0
Other non-reversing timing differences
-
0
(2,444)
Capital allowances in excess of depreciation
54,895
(8,910)
Deferred tax movement
19,705
49,595
Taxation charge
19,705
49,595
11
DIVIDENDS
2023
2021
Recognised as distributions to equity holders:
£
£
Interim paid
165,870
149,200
BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 24 -
12
INTANGIBLE FIXED ASSETS
GROUP
Goodwill
Computer development
Total
£
£
£
COST
At 1 January 2022 and 30 June 2023
399,601
32,700
432,301
AMORTISATION AND IMPAIRMENT
At 1 January 2022 and 30 June 2023
399,601
32,700
432,301
CARRYING AMOUNT
At 30 June 2023
-
0
-
0
-
0
At 31 December 2021
-
0
-
0
-
0

 

13
TANGIBLE FIXED ASSETS
GROUP
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Total
£
£
£
£
£
COST OR VALUATION
At 1 January 2022
7,498,884
286,296
2,013,781
12,800
9,811,761
Additions
42,293
-
0
74,466
-
0
116,759
Disposals
-
0
-
0
(40,501)
-
0
(40,501)
Revaluation
1,677,055
-
0
-
0
-
0
1,677,055
Transfers
174,233
-
0
(174,233)
-
0
-
0
Impairment
(387,465)
-
0
-
0
-
0
(387,465)
At 30 June 2023
9,005,000
286,296
1,873,513
12,800
11,177,609
DEPRECIATION AND IMPAIRMENT
At 1 January 2022
1,511,719
66,327
1,481,928
2,133
3,062,107
Depreciation charged in the period
165,751
35,109
197,441
4,800
403,101
Eliminated in respect of disposals
-
0
-
0
(40,501)
-
0
(40,501)
Revaluation
(1,764,250)
-
0
-
0
-
0
(1,764,250)
Transfers
86,780
-
0
(86,780)
-
0
-
0
At 30 June 2023
-
0
101,436
1,552,088
6,933
1,660,457
CARRYING AMOUNT
At 30 June 2023
9,005,000
184,860
321,425
5,867
9,517,152
At 31 December 2021
5,987,165
219,969
531,853
10,667
6,749,654
The company had no tangible fixed assets at 30 June 2023 or 31 December 2021.

Included in the cost of freehold property is freehold land of £1,925,613 (31 December 2021 - £1,925,613) which is not depreciated.

BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
13
TANGIBLE FIXED ASSETS
(Continued)
- 25 -

Land and buildings with a carrying amount of £ £9,005,000 were revalued by as follows:

 

1) Bidford - Harris Lamb Property Consultancy on 13 January 2022

2) Tachbrook Park - FHP on 15 September 2023

3) Tewksbury - Harrislamb Property Consultancy on 4 February 2021

4) Shipston - Innes England on 13 December 2023

5) Hermes Close - Innes England on 14 December 2023

 

The independent valuers were not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

The revaluation surplus is disclosed in note 25.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2023
2021
£
£
GROUP
Cost
7,940,039
7,498,884
Accumulated depreciation
(1,822,866)
(1,511,719)
Carrying value
6,117,173
5,987,165
14
FIXED ASSET INVESTMENTS
Group
Company
2023
2021
2023
2021
Notes
£
£
£
£
Investments in subsidiaries
32
-
0
-
0
1,305,671
1,305,671
Unlisted investments
21,100
21,100
-
0
-
0
21,100
21,100
1,305,671
1,305,671
15
STOCKS
Group
Company
2023
2021
2023
2021
£
£
£
£
Finished goods and goods for resale
3,959,546
3,446,488
-
0
-
0
BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 26 -
16
FINANCIAL INSTRUMENTS
Group
Company
2023
2021
2023
2021
£
£
£
£
CARRYING AMOUNT OF FINANCIAL ASSETS
Debt instruments measured at amortised cost
2,597,748
1,922,607
-
-
Equity instruments measured at cost less impairment
21,100
21,100
-
-
CARRYING AMOUNT OF FINANCIAL LIABILITIES
Measured at amortised cost
6,587,559
4,860,391
1,267,080
1,275,964
17
DEBTORS
Group
Company
2023
2021
2023
2021
AMOUNTS FALLING DUE WITHIN ONE YEAR:
£
£
£
£
Trade debtors
2,585,328
1,911,678
-
0
-
0
Other debtors
12,420
10,929
-
0
-
0
Prepayments and accrued income
644,432
317,349
-
0
-
0
3,242,180
2,239,956
-
-
18
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group
Company
2023
2021
2023
2021
Notes
£
£
£
£
Bank loans and overdrafts
20
2,387,887
1,398,529
3,471
-
0
Obligations under finance leases
21
-
0
11,736
-
0
-
0
Trade creditors
3,212,181
1,935,778
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
1,263,609
1,275,964
Other taxation and social security
409,331
391,710
-
-
Other creditors
135,411
68,518
-
0
-
0
Accruals and deferred income
291,357
397,165
-
0
-
0
6,436,167
4,203,436
1,267,080
1,275,964
19
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group
Company
2023
2021
2023
2021
Notes
£
£
£
£
Bank loans and overdrafts
20
560,723
1,042,344
-
0
-
0
Obligations under finance leases
21
-
0
6,321
-
0
-
0
560,723
1,048,665
-
-
BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 27 -
20
LOANS AND OVERDRAFTS
Group
Company
2023
2021
2023
2021
£
£
£
£
Bank loans
879,182
1,347,385
-
0
-
0
Bank overdrafts
2,069,428
1,093,488
3,471
-
0
2,948,610
2,440,873
3,471
-
Payable within one year
2,387,887
1,398,529
3,471
-
0
Payable after one year
560,723
1,042,344
-
0
-
0

Building and Plumbing Supplies Limited

 

HSBC Bank Plc hold a legal mortgage dated 6 April 2018 over the freehold property known as land at Shannon Way, Tewkesbury.

 

HSBC Bank Plc Multilateral Guarantee dated 2 June 2016 given by BPS Warwick Limited, Building Plumbing Supplies Limited, John Grimes Fencing Limited and Dibble Developments Limited.

 

HSBC Bank Plc hold a legal mortgage dated 1 December 2014 over the freehold property known as land at Tachbrook Park Estate, Leamington Spa.

 

They also hold a first legal charge dated 20 September 2011 over land lying to the South West of, Queensway, Leamington Spa.

 

They also hold a debenture including a fixed charge over all present freehold and leasehold property. First fixed charge over book and other debts, chattels, goodwill and uncalled capital. both present and future, and first floating charge over all assets and undertaking both present and future dated 19 May 2010.

 

They also hold a legal mortgage over the freehold property known as unit 5A and plot 5B, Waterloo Industrial Estate, Waterloo Road, Bidford-on-Avon, Alcester, B50 4JH dated 8 February 2019.

 

They also hold a legal charge dated 2 February 2024 over Unit 5 Hermes court and Unit 1 Shipston.

 

The obligations under finance leases are secured against the assets to which they relate.

21
FINANCE LEASE OBLIGATIONS
Group
Company
2023
2021
2023
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
-
0
11,736
-
0
-
0
In two to five years
-
0
6,321
-
0
-
0
-
18,057
-
-

Finance lease payments represent rentals payable by the company or 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.

BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 28 -
22
DEFERRED TAXATION

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2021
GROUP
£
£
ACAs
69,300
49,595
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
MOVEMENTS IN THE PERIOD:
£
£
Liability at 1 January 2022
49,595
-
Charge to profit or loss
19,705
-
Liability at 30 June 2023
69,300
-

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

23
RETIREMENT BENEFIT SCHEMES
2023
2021
DEFINED CONTRIBUTION SCHEMES
£
£
Charge to profit or loss in respect of defined contribution schemes
351,771
223,692

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.

24
SHARE CAPITAL
Group and company
2023
2021
ORDINARY SHARE CAPITAL
£
£
ISSUED AND FULLY PAID
13,541 Ordinary A shares of £1 each
13,541
13,541
1,515 Ordinary B shares of £1 each
1,515
1,515
7,884 Ordinary C shares of £1 each
7,884
7,884
4,884 Ordinary D shares of £1 each
4,884
4,884
1,883 Ordinary E shares of £1 each
1,883
1,883
29,707
29,707

 

BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 29 -
25
REVALUATION RESERVE
Group
Company
2023
2021
2023
2021
£
£
£
£
At the beginning of the period
-
0
-
0
-
0
-
0
Revaluation surplus arising in the period
3,441,305
-
0
-
0
-
0
At the end of the period
3,441,305
-
-
0
-
26
PROFIT AND LOSS RESERVES
Group
Company
2023
2021
2023
2021
£
£
£
£
At the beginning of the period
7,132,375
6,163,736
1,870
1,569
Profit/(loss) for the period
(584,526)
1,117,839
172,884
149,501
Dividends
(165,870)
(149,200)
(165,870)
(149,200)
At the end of the period
6,381,979
7,132,375
8,884
1,870
27
CONTROLLING PARTY

The Group is controlled by the Dibble family by virtue of them owning 100% of the issued share capital in BPS Warwick Limited.

28
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
2021
2023
2021
£
£
£
£
Within one year
775,798
1,019,981
-
-
Between two and five years
1,846,247
2,268,740
-
-
In over five years
25,550
309,229
-
-
2,647,595
3,597,950
-
-
BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 30 -
29
CAPITAL COMMITMENTS

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2021
2023
2021
£
£
£
£
Acquisition of tangible fixed assets
315,896
49,998
-
-
30
EVENTS AFTER THE REPORTING DATE

During 2024, the group sold a property for £1.2m and assets of one branch for a total of £1,532,468.

31
RELATED PARTY TRANSACTIONS
REMUNERATION OF KEY MANAGEMENT PERSONNEL

The remuneration of key management personnel is as follows.

2023
2021
£
£
Aggregate compensation
537,073
387,679
OTHER INFORMATION

The company has taken advantage of exemption of Section 33 of FRS 102 Related Party Disclosures, not to disclose related party transactions with wholly owned subsidiaries within the group.

 

Building and Plumbing Supplies Limited

 

J R Dibble is a director of the company and purchased goods at arms length amounting to £32,436 during the period (2021: £973). At 30 June 2023 the amount due from J R Dibble was £44,892 (2021: £nil).

 

E M Dibble is a director of the company and purchased goods at arms length amounting to £316 during the period (2021: £448). At 30 June 2023 the amount due from E M Dibble was £1,760 (2021: £nil).

 

G N Stanley is a director of the company and purchased goods at arms length amounting to £154 during the period (2021: £568). At 30 June 2023 the amount due from G N Stanley was £3 (2021: £143).

 

D I Battin is a director of the company and purchased goods at arms length amounting to £295 during the period (2021: £230). At 30 June 2023 the amount due from D I Battin was £53 (2021: £14).

 

M Cook is a director of the company and purchased goods at arms length amounting to £188 during the period (2021: £1,621). At 30 June 2023 the amount due from M Cook was £98 (2021: £480).

 

A Collins is a director of the company and purchased goods at arms length amounting to £1,340 during the period (2021: £2,055). At 30 June 2023 the amount due from A Collins was £2 (2021: £85).

 

John Grimes Fencing Limited

 

As at 30 June 2023 an amount of £Nil (2021: £31,500) was due to The Building and Plumbing Supplies Limited SSAS from John Grimes Fencing Limited. The scheme also charged rent of £177,374 (2021: £104,894 for 12 months) to John Grimes Fencing Limited during the 18 month period.

 

The Building and Plumbing Supplies Limited SSAS owns the premises from which John Grimes Fencing Limited trades from and the SSAS is controlled by the Dibble family.

 

BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 31 -
32
SUBSIDIARIES

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

Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shareholding
Direct
Indirect
Building and Plumbing Supplies Limited
England
Building and plumbing supplies
Ordinary
100.00
0
Dibble Developments Limited
England
Dormant
Ordinary
100.00
0
John Grimes Fencing Limited
England
Manufacture and supply of fencing panels
Ordinary
100.00
0
John Grimes Sawmills Limited
England
Dormant
Ordinary
100.00
0
33
CASH GENERATED FROM GROUP OPERATIONS
2023
2021
£
£
(Loss)/profit for the period after tax
(584,526)
1,117,839
ADJUSTMENTS FOR:
Taxation charged
19,705
49,595
Finance costs
211,697
104,013
(Gain)/loss on disposal of tangible fixed assets
(21,033)
394
Amortisation and impairment of intangible assets
-
1,062
Depreciation and impairment of tangible fixed assets
790,566
209,335
MOVEMENTS IN WORKING CAPITAL:
Increase in stocks
(513,058)
(640,765)
Increase in debtors
(1,002,224)
(102,065)
Increase/(decrease) in creditors
1,255,109
(325,922)
CASH GENERATED FROM OPERATIONS
156,236
413,486
34
CASH ABSORBED BY OPERATIONS - COMPANY
2023
2021
£
£
Profit for the period after tax
172,884
149,501
ADJUSTMENTS FOR:
Investment income
(186,709)
(169,200)
MOVEMENTS IN WORKING CAPITAL:
Decrease in creditors
(12,355)
-
CASH ABSORBED BY OPERATIONS
(26,180)
(19,699)
BPS WARWICK LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 32 -
35
ANALYSIS OF CHANGES IN NET DEBT - GROUP
1 January 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
6,580
172,623
179,203
Bank overdrafts
(1,093,488)
(975,940)
(2,069,428)
(1,086,908)
(803,317)
(1,890,225)
Borrowings excluding overdrafts
(1,347,385)
468,203
(879,182)
Obligations under finance leases
(18,057)
18,057
-
(2,452,350)
(317,057)
(2,769,407)
36
ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) - COMPANY
1 January 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
1,870
(1,870)
-
Bank overdrafts
-
0
(3,471)
(3,471)
1,870
(5,341)
(3,471)
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