Company registration number 05990630 (England and Wales)
BAW (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
BAW (HOLDINGS) LIMITED
COMPANY INFORMATION
Director
P J Bysouth-Kemp
Company number
05990630
Registered office
Units 1 & 2
Bunny Trading Estate
Gotham Lane
Bunny
Nottingham
NG11 6QJ
Auditor
UHY Hacker Young
14 Park Row
Nottingham
NG1 6GR
Business address
Units 1 & 2
Bunny Trading Estate
Gotham Lane
Bunny
Nottingham
NG11 6QJ
BAW (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 29
BAW (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 1 -

The director presents the strategic report for the year ended 31 July 2023.

Review of the business

The results for the year and financial position of the group are shown in the attached financial statements.

 

As shown in the group's profit and loss account, the group's turnover has decreased by 18% to £36,450,509 (2022 - £44,517,431).

 

Turnover has been impacted by inflation and a market slowdown, the group continues to be focused on profitability.

Principal risks and uncertainties

Financial risks are considered low because of strong profitability, a cash generative base and because the group is able to insure against material financial risks.

 

Liquidity risk is mitigated due to the group's strong cash flow and a good earnings visibility ensures that its margins are sufficient to exceed operating costs. The group does not have any external bank borrowings or other external financing.

 

The group is reliant on its main suppliers to supply the business with products at a competitive price. As the group operates in a competitive market, it is also at risk from competitors reducing their selling prices. The group mitigates this risk by continuing to strengthen relationships with key suppliers and thus to maintain a good supply of products.

 

Direct sales from manufacturer to customer have increased which represents an ongoing threat to business as an appliance wholesaler. With the world's reliance on electronic communication and the associated constant threat of a cyber-attack, the group continues to invest in improving systems and processors to mitigate against this threat.

Key performance indicators

The group's main key performance indicator is retaining the level of gross margin versus sales price. In the current year, gross margin has remained fairly consistent at 25.2% (2022 - 26.5%).

On behalf of the board

P J Bysouth-Kemp
Director
19 April 2024
BAW (HOLDINGS) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JULY 2023
- 2 -

The director presents his annual report and financial statements for the year ended 31 July 2023.

Principal activities

The principal activity of the company and group continued to be that of kitchen appliance sales.

Results and dividends

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

Ordinary dividends were paid amounting to £4,505,000 (2022 - £6,015,000). The directors do not recommend payment of a further dividend.

Director

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

J Bysouth-Kemp
(Deceased 22 December 2023)
P J Bysouth-Kemp
Auditor

UHY Hacker Young were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of director's responsibilities

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.

BAW (HOLDINGS) LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 3 -
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
P J Bysouth-Kemp
Director
19 April 2024
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BAW (HOLDINGS) LIMITED
- 4 -
Opinion

We have audited the financial statements of BAW (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2022 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and 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.

INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BAW (HOLDINGS) LIMITED
- 6 -
Auditor's responsibilities for the audit of the financial statements

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

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

 

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

 

Audit procedures performed included:

 

 

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

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

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

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Timms (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
19 April 2024
Chartered Accountants
Statutory Auditor
BAW (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME false
FOR THE YEAR ENDED 31 JULY 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
36,450,509
44,517,431
Cost of sales
(27,256,794)
(32,699,129)
Gross profit
9,193,715
11,818,302
Distribution costs
(2,432,534)
(2,598,801)
Administrative expenses
(1,444,950)
(1,320,316)
Operating profit
4
5,316,231
7,899,185
Interest receivable and similar income
7
52,519
3,961
Profit before taxation
5,368,750
7,903,146
Tax on profit
8
(1,136,785)
(1,436,001)
Profit for the financial year
4,231,965
6,467,145
Profit for the financial year is all attributable to the owners of the parent company.
BAW (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT
31 JULY 2023
31 July 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
136,403
105,310
Investments
10
1
1
136,404
105,311
Current assets
Stocks
13
4,887,443
6,577,128
Debtors
14
1,064,313
921,519
Cash at bank and in hand
4,703,347
3,584,114
10,655,103
11,082,761
Creditors: amounts falling due within one year
15
(5,483,519)
(5,607,049)
Net current assets
5,171,584
5,475,712
Net assets
5,307,988
5,581,023
Capital and reserves
Called up share capital
19
500
500
Other reserves
501
501
Profit and loss reserves
5,306,987
5,580,022
Total equity
5,307,988
5,581,023
The financial statements were approved by the board of directors and authorised for issue on 19 April 2024 and are signed on its behalf by:
19 April 2024
P J Bysouth-Kemp
Director
Company registration number 05990630 (England and Wales)
BAW (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 JULY 2023
31 July 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
10
500
500
Current assets
Debtors
14
1,189,869
1,194,869
Creditors: amounts falling due within one year
15
(1,007,410)
(1,007,410)
Net current assets
182,459
187,459
Net assets
182,959
187,959
Capital and reserves
Called up share capital
19
500
500
Profit and loss reserves
182,459
187,459
Total equity
182,959
187,959

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 £0 (2022 - £0 profit).

The financial statements were approved by the board of directors and authorised for issue on 19 April 2024 and are signed on its behalf by:
19 April 2024
P J Bysouth-Kemp
Director
Company registration number 05990630 (England and Wales)
BAW (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 11 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2021
500
501
5,127,877
5,128,878
Year ended 31 July 2022:
Profit and total comprehensive income
-
-
6,467,145
6,467,145
Dividends
-
-
(6,015,000)
(6,015,000)
Balance at 31 July 2022
500
501
5,580,022
5,581,023
Year ended 31 July 2023:
Profit and total comprehensive income
-
-
4,231,965
4,231,965
Dividends
-
-
(4,505,000)
(4,505,000)
Balance at 31 July 2023
500
501
5,306,987
5,307,988
BAW (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2021
500
202,459
202,959
Year ended 31 July 2022:
Profit and total comprehensive income for the year
-
-
-
0
Dividends
-
(15,000)
(15,000)
Balance at 31 July 2022
500
187,459
187,959
Year ended 31 July 2023:
Profit and total comprehensive income
-
-
-
0
Dividends
-
(5,000)
(5,000)
Balance at 31 July 2023
500
182,459
182,959
BAW (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
6,966,546
5,943,731
Income taxes paid
(1,337,758)
(1,715,000)
Net cash inflow from operating activities
5,628,788
4,228,731
Investing activities
Purchase of tangible fixed assets
(57,074)
(70,210)
Interest received
52,519
3,961
Net cash used in investing activities
(4,555)
(66,249)
Financing activities
Dividends paid to equity shareholders
(4,505,000)
(6,015,000)
Net cash used in financing activities
(4,505,000)
(6,015,000)
Net increase/(decrease) in cash and cash equivalents
1,119,233
(1,852,518)
Cash and cash equivalents at beginning of year
3,584,114
5,436,632
Cash and cash equivalents at end of year
4,703,347
3,584,114
BAW (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 14 -
1
Accounting policies
Company information

BAW (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Units 1 & 2, Bunny Trading Estate, Gotham Lane, Bunny, Nottingham, NG11 6QJ.

 

The group consists of BAW (Holdings) Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

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

1.2
Basis of consolidation

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.

The consolidated group financial statements consist of the financial statements of the parent company BAW (Holdings) Limited 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 July 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.

BAW (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group and the turnover can be reliably measured. Turnover is measured at fair value of the consideration received or receivable excluding discounts, rebates, VAT and other sales taxes.

 

Sales of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

1.5
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
Not depreciated
Plant and equipment
15% straight line
Fixtures and fittings
10%-15% straight line
Computers
3 years straight line
Motor vehicles
15% straight line

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

1.6
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.

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.

BAW (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 16 -
1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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).

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost comprises direct materials 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 replacement cost and 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 and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

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

BAW (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 17 -
Basic financial liabilities

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

 

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

1.11
Equity instruments

Share capital issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on share capital 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.

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.

1.14
Retirement benefits

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

1.15
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.

BAW (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 18 -
1.16
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

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

 

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

 

The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

Carrying value of stocks

The directors review the finished goods costs on a quarterly basis. The stock is then revalued to ensure it is recorded in the financial statements at the lower of cost and net realisable value. Any provision for impairment is recorded against the carrying value of stocks. The directors use their knowledge of market conditions, historical experiences and estimates of future events to assess future demand for the group's products and achievable selling prices.

 

Provisions

A provision is recognised when the company present legal or constructive obligation as a result of past events for which it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably measured.

 

Whether a present obligation is probable or not requires judgment. The nature and type of risks for these provisions differ and the directors' judgment is applied regarding the nature and extent of obligations in deciding if an outflow of resources is probable or not. External advice is sought where appropriate.

 

Rebates receivable

The group enters various rebate agreements with suppliers. Supplier rebate income affects the recorded value of cost of sales, trade creditors and stock. The amounts receivable under rebate agreements are often subject to negotiation after the balance sheet date. A number of agreements are non-coterminous with the group's financial year, requiring judgment over the level of future purchases. At the balance sheet date, the directors make judgments on the amount of rebate that will become due to the group under these agreements based upon prices, volumes and product mix.

BAW (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 19 -
3
Turnover and other revenue

The whole of turnover is attributable to the group's principal activity.

 

All turnover arose within the United Kingdom.

 

2023
2022
£
£
Other revenue
Interest income
52,519
3,961
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Exchange differences
-
1,430
Depreciation of owned tangible fixed assets
25,981
17,756
Operating lease charges
207,777
174,013
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
17,500
16,000
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
12
13
2
2
Administration
14
12
-
-
Distribution
36
37
-
-
Total
62
62
2
2
BAW (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
6
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,952,724
1,860,232
-
0
-
0
Social security costs
201,707
187,882
-
-
Pension costs
48,628
41,751
-
0
-
0
2,203,059
2,089,865
-
0
-
0

The remuneration of key management personnel is as follows.

Group
Company
2023
2022
2023
2022
£
£
£
£
Aggregate compensation
369,577
428,932
369,577
428,932
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
52,519
3,961
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
52,519
3,961
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,122,550
1,493,732
Adjustments in respect of prior periods
5,729
-
0
Total current tax
1,128,279
1,493,732
BAW (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
8
Taxation
2023
2022
£
£
(Continued)
- 21 -
Deferred tax
Origination and reversal of timing differences
8,506
(57,731)
Total tax charge
1,136,785
1,436,001

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

2023
2022
£
£
Profit before taxation
5,368,750
7,903,146
Expected tax charge based on the standard rate of corporation tax in the UK of 21.01% (2022: 19.00%)
1,127,974
1,501,598
Tax effect of expenses that are not deductible in determining taxable profit
4,063
6,214
Adjustments in respect of prior years
(481)
-
0
Permanent capital allowances in excess of depreciation
(2,394)
(3,175)
Adjustments for deferred tax rates
1,247
3,444
Adjustment for prior year deferred tax
6,376
(72,080)
Taxation charge
1,136,785
1,436,001
BAW (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 22 -
9
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 August 2022
18,509
51,404
132,167
50,013
25,500
277,593
Additions
-
0
-
0
25,314
31,760
-
0
57,074
At 31 July 2023
18,509
51,404
157,481
81,773
25,500
334,667
Depreciation and impairment
At 1 August 2022
-
0
46,708
63,258
43,192
19,125
172,283
Depreciation charged in the year
-
0
1,371
13,949
6,836
3,825
25,981
At 31 July 2023
-
0
48,079
77,207
50,028
22,950
198,264
Carrying amount
At 31 July 2023
18,509
3,325
80,274
31,745
2,550
136,403
At 31 July 2022
18,509
4,696
68,909
6,821
6,375
105,310
The company had no tangible fixed assets at 31 July 2023 or 31 July 2022.
10
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
11
-
0
-
0
500
500
Unlisted investments
1
1
-
0
-
0
1
1
500
500
BAW (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
10
Fixed asset investments
(Continued)
- 23 -
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 August 2022 and 31 July 2023
1
Carrying amount
At 31 July 2023
1
At 31 July 2022
1
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 August 2022 and 31 July 2023
500
Carrying amount
At 31 July 2023
500
At 31 July 2022
500
BAW (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 24 -
11
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Bunny Appliance Warehouse Ltd
England & Wales
Sale of domestic appliances and fittings
Ordinary 'A' Shares
100

Bunny Appliance Warehouse Ltd shares the same registered office as shown on the company information page.

12
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
305,414
55,202
1,189,869
1,194,869
Equity instruments measured at cost less impairment
1
1
-
-
Carrying amount of financial liabilities
Measured at amortised cost
4,489,426
4,592,270
1,007,410
1,007,410
13
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
4,887,443
6,577,128
-
0
-
0
BAW (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 25 -
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
41,729
45,658
-
0
-
0
Amounts owed by undertakings in which the company has a participating interest
-
-
1,189,869
1,194,869
Other debtors
263,685
9,544
-
0
-
0
Prepayments and accrued income
721,618
821,170
-
0
-
0
1,027,032
876,372
1,189,869
1,194,869
Deferred tax asset (note 17)
37,281
45,147
-
0
-
0
1,064,313
921,519
1,189,869
1,194,869
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Convertible loans
680,427
952,833
-
0
-
0
Other borrowings
16
1,000,000
1,000,000
1,000,000
1,000,000
Trade creditors
2,231,842
2,239,634
-
0
-
0
Corporation tax payable
484,375
693,214
-
0
-
0
Other taxation and social security
509,718
321,565
-
-
Other creditors
383,970
292,277
7,410
7,410
Accruals and deferred income
193,187
107,526
-
0
-
0
5,483,519
5,607,049
1,007,410
1,007,410
16
Preference shares
Group
Company
2023
2022
2023
2022
£
£
£
£
Preference shares
1,000,000
1,000,000
1,000,000
1,000,000
Redeemable on the option of the holders
1,000,000
1,000,000
1,000,000
1,000,000
BAW (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
16
Preference shares
(Continued)
- 26 -

The rights attaching to the preference shares are as follows:

 

These shares are redeemable on the option of the holders. Shares can be redeemed at any time providing notice of not less than 25 business days is given in writing.

 

Dividends are subject to the board recommending payment of any available profits which the company may determine to distribute in respect of any financial year.

 

On a return of assets on liquidation or otherwise the assets of the company remaining after the payment of its liabilities shall be applied first to repaying the holders of the redeemable preference shares an amount equal to the nominal value of the shares and a sum equal to any arrears of accrued dividends. If there is a short fall of assets remaining to satisfy such payments in full, the proceeds shall be distributed to the holders on a pro-rata basis, therefore the balance (if any) shall be distributed amongst the ordinary shareholders.

 

The redeemable preference shares shall not confer on the holders thereof any right to received notice of or to be present or to vote either in person or by proxy at a general meeting of the company.

17
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
£
£
Accelerated capital allowances
(33,677)
(25,811)
Revaluations
70,958
70,958
37,281
45,147
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 August 2022
(45,147)
-
Charge to profit or loss
7,866
-
Asset at 31 July 2023
(37,281)
-
BAW (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 27 -
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
48,628
41,751

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. Within other creditors, there is a defined pension scheme contribution due of £8,527 (2022 - £7,741).

19
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
500
500
500
500
20
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
17,499
529
-
-
17,499
529
-
-

The company had no commitments under the non-cancellable operating leases as at the balance sheet date.

21
Related party transactions
BAW (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
21
Related party transactions
(Continued)
- 28 -

At the year end £33,018 (2022: £8,254) is included within other debtors and relates to costs paid by the company on behalf of the pension scheme, of which the directors of the company are trustees and beneficiaries. No interest is payable on this amount.

 

Pension expenses totalling £99,162 (2022: £97,226) were paid to directors in respect of the above pension scheme. This balance was repaid in full by the pension scheme.

 

At the year end £1,777 (2022: £nil) was owed to a company under common control. Rental costs paid to this company totalled £207,777 (2022: £174,013). Electricity recharges and service charge expenses of £44,821 (2022: £42,970) were also paid to this connected company in the year.

 

Payroll expenses totalling £80,560 (2022: £28,000) were paid to close family members of directors during the year.

 

Dividends of £4,500,000 (2022: £6,000,000) were paid to Bucks Investments Limited during the year.

22
Controlling party

The group is controlled by its director P J Bysouth-Kemp.

23
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
4,231,965
6,467,145
Adjustments for:
Taxation charged
1,136,785
1,436,001
Investment income
(52,519)
(3,961)
Depreciation and impairment of tangible fixed assets
25,981
17,756
Movements in working capital:
Decrease/(increase) in stocks
1,689,685
(1,617,944)
(Increase)/decrease in debtors
(150,660)
76,315
Increase/(decrease) in creditors
85,309
(431,581)
Cash generated from operations
6,966,546
5,943,731
BAW (HOLDINGS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 29 -
24
Analysis of changes in net funds - group
1 August 2022
Cash flows
31 July 2023
£
£
£
Cash at bank and in hand
3,584,114
1,119,233
4,703,347
Preference shares
(1,000,000)
-
(1,000,000)
Deposits held on behalf of customers
(952,833)
272,406
(680,427)
1,631,281
1,391,639
3,022,920
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