Registered number: 02580392
BATHGATE BUSINESS FINANCE LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
For the Year Ended 30 September 2023
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BATHGATE BUSINESS FINANCE LIMITED
Registered number: 02580392
STATEMENT OF FINANCIAL POSITION
As at 30 September 2023
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Debtors: amounts falling due after more than one year
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Page 1
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BATHGATE BUSINESS FINANCE LIMITED
Registered number: 02580392
STATEMENT OF FINANCIAL POSITION (CONTINUED)
As at 30 September 2023
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 April 2024.
The notes on pages 3 to 14 form part of these financial statements.
Page 2
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BATHGATE BUSINESS FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023
The entity is a private limited liability company, limited by shares registered in England and Wales within
the United Kingdom. The registered office is The Plaza, 100 Old Hall Street, Liverpool, L3 9QJ, the principal place of business is The Loft, Brook House, Brook Terrace, West Kirby, CH48 4DX.
2.ACCOUNTING POLICIES
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BASIS OF PREPARATION OF FINANCIAL STATEMENTS
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The presentation currency of these financial statements is pound sterling; the financial statements
are rounded to the nearest pound.
The following principal accounting policies have been applied:
The company depends on its existing facilities to meet its day to day working capital requirements. Current forecasts indicate that the company expects to be able to operate within these facilities for whole of the foreseeable future. These facilities are renewed annually and are not guaranteed for the period covered by the going concern review. The Directors are not aware, however, of any circumstances that may adversely affect the renewal of these facilities. Accordingly, the directors believe it is appropriate to prepare the financial statements on the going concern basis.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Turnover represents the interest element of installments due on lease and hire purchase contracts
excluding any Value Added Tax on the lease rentals.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Page 3
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BATHGATE BUSINESS FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023
2.ACCOUNTING POLICIES (CONTINUED)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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CASH AND CASH EQUIVALENTS
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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
Page 4
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BATHGATE BUSINESS FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023
2.ACCOUNTING POLICIES (CONTINUED)
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FINANCIAL INSTRUMENTS (continued)
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Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of
Page 5
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BATHGATE BUSINESS FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023
2.ACCOUNTING POLICIES (CONTINUED)
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FINANCIAL INSTRUMENTS (continued)
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ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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OPERATING LEASES: THE COMPANY AS LESSEE
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
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LEASED ASSETS: THE COMPANY AS LESSOR
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Where assets leased to a third party give rights approximating to ownership (finance lease), the lessor recognises as a receivable an amount equal to the net investment in the lease i.e. the minimum lease payments receivable under the lease discounted at the interest rate implicit in the lease. This receivable is reduced as the lessee makes capital payments over the term of the lease.
A finance lease gives rise to two types of income: profit or loss equivalent to the profit or loss resulting from outright sale of the asset being leased, at normal selling prices, reflecting any applicable discounts, and finance income over the lease term.
Income is calculated over the period of lease, using the Rule of 78, the interest element of the rental charges, and excludes Value Added Tax.
Leased assets are disclosed as debtors in the financial statements, analysed between amounts due within one year and thereafter. The debtors represent the outstanding capital balance due on leases.
Page 6
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BATHGATE BUSINESS FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023
2.ACCOUNTING POLICIES (CONTINUED)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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CURRENT AND DEFERRED TAXATION
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
A specific case by case provision is made for all leases where the lease has terminated.
Page 7
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BATHGATE BUSINESS FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023
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The average monthly number of employees during the year was as follows:
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Charge for the year on owned assets
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Amortisation transfer from group
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Page 8
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BATHGATE BUSINESS FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023
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Charge for the year on owned assets
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Page 9
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BATHGATE BUSINESS FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023
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Investments in subsidiary companies
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Page 10
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BATHGATE BUSINESS FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023
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Due after more than one year
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Prepayments and accrued income
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Amounts owed by group undertakings
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Prepayments and accrued income
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CHANGE IN ACCOUNTING ESTIMATE OF LEASE DEBTORS
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The company has changed its estimate of making an 82.5% provision for certain leases where the lease has terminated to making a case by case basis for a provision for all terminated leases.
The impact of this change is to increase lease debtors during the year by £27,950, reduce the charge in cost of sales by the same and accordingly reduce the loss for the year by the same.
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GROSS INVESTMENT IN LEASE DEBTORS
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Gross amounts receivable due within 1 year
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Gross amounts receiveable between 1 and 5 years
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Unearned finance income is represented by the difference between the discounted lease income (shown above in debtors) and the gross investment in lease debtors, namely £614,442 (2022 - £605,438).
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Page 11
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BATHGATE BUSINESS FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023
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CASH AND CASH EQUIVALENTS
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CREDITORS: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Bank overdrafts are secured by a debenture over all the assets of the company.
Block discount advances are secured on specific book debts of the company.
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CREDITORS: Amounts falling due after more than one year
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Amounts owed to group undertakings
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Block discount advances are secured on specific book debts of the company.
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Page 12
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BATHGATE BUSINESS FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023
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Financial assets measured at fair value through profit or loss
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Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.
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Credited to the profit or loss
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The deferred tax asset is made up as follows:
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Accelerated capital allowances
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Tax losses carried forward
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Unprovided deferred taxation
A deferred taxation asset of £593,912 (2022 - £575,161) is not provided. The amount unprovided represents a contigent asset at the balance sheet date and is calculated at a rate of 25%. This amount is unrecognised due to the expected slowness of recovery of this asset.
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The Company pays into personal pension plans. The assets of the plans are held separately from those of the Company in an independently administered fund. The pension cost charge of £74,409 (2022 - £57,365) represents contributions payable by the Company to the plans.
Page 13
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BATHGATE BUSINESS FINANCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the Year Ended 30 September 2023
The company's parent company, which prepares consolidated financial statements is Archibald Bathgate Group Limited, whose registered office is the same as the company. Copies of the parent company's financial statements can be obtained from Companies House, Cardiff.
The directors consider the controlling party to be R.H. Walker.
The auditor's report on the financial statements for the year ended 30 September 2023 was unqualified.
The audit report was signed on 2 April 2024 by Andrew McCall (Senior Statutory Auditor) on behalf of Langtons Professional Services Limited.
Page 14
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