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Registered number: 02269558









BAIRD & CO. LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

 
BAIRD & CO. LIMITED
 
 
COMPANY INFORMATION


Directors
A S Baird 
L Baird 




Registered number
02269558



Registered office
48 Hatton Garden

London

EC1N 8EX




Independent auditors
Barnes Roffe LLP
Chartered Accountants  
Statutory Auditor

Leytonstone House

Leytonstone

London

E11 1GA





 
BAIRD & CO. LIMITED
 

CONTENTS



Page
Strategic report
 
 
1 - 3
Directors' report
 
 
4 - 5
Independent auditors' report
 
 
6 - 9
Statement of comprehensive income
 
 
10
Balance sheet
 
 
11
Statement of changes in equity
 
 
12
Notes to the financial statements
 
 
13 - 34


 
BAIRD & CO. LIMITED
 
 
STRATEGIC REPORT
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report for the 6 month period ended 31 December 2023.
The principal activities of the Company in the period under review remained those of buying, selling, refining, manufacturing, processing, smelting, and assaying of precious metals, and vaulting.

Business review
 
We continued to experience strong trading performances in the 6 months to 31 December 2023 with steady results in Gross Profit, £3.2m (18 month period to June 2023: £8.0m) and a decrease in Profit Before Tax (PBT) to £0.4m (June 2023: £0.9m). There were reasonable profit margins in our core metals: Gold and Silver, and careful management of our operational costs. We are very pleased that our strategy of maintaining healthy levels in our vaulting revenue and profitability has been achieved and will continue to concentrate efforts in this area of growth within our business.
Revenue over all decreased by 69% to £145m 
(2023: £474m) due to only 6 months of trading activity in the period ended 31 December 2023. The Directors are satisfied with the overall performance of the company and the period end saw us with a strong liquidity position.
As part of our continued drive to create operational efficiency, we were able to reinforce our position in the market through investment in core practices, thus reflecting an increase in administrative costs in the period. 
We have had a good start to 2024 and expect that it will be another profitable year.

Principal risks and uncertainties
 
The principal risks associated with the company include fluctuations in metal prices. To protect against exposure to price fluctuations in precious metals, the company operates a policy of continuously hedging exposure. The trading of precious metals obligations achieves this with financial institutions.
Other risks faced by the company include credit, liquidity, and foreign currency risks, and the company adopts a suitable strategy to ensure such risks are mitigated effectively.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between continuity of funding and flexibility through the occasional use of overdrafts and pledged stock at floating rates of interest.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit extended to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Trade creditor's liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Page 1

 
BAIRD & CO. LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

Financial key performance indicators
 
The key financial highlights are as follows:                                   

31 December
30 June
2023
2023
£
£



Turnover
145,376,067
473,595,782

Gross profit
3,173,471
8,006,327

Profit before tax
356,220
865,994

Profit after tax
249,285
618,423

Shareholder funds
15,850,288
16,601,003

The Company also considered the retention of good quality employees to be a key performance indicator, with average number of employees in the period to be 55 (2023 - 49).
Future prospects
The directors will continue to develop the business and its product range, streamline operations and Online system which includes our social marketing presence.

Directors' statement of compliance with duty to promote the success of the Company
 
As the Board of Directors at Baird & Co Ltd, we have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, honourable, would be most likely to advocate the Company’s achievements for the interest of its members, and to have regard to the long-term effect our decisions on the Company and its stakeholders. This statement addresses the ways in which we as a Board fulfill this responsibility.
Baird & Co. was established as a firm by the late Tony Baird in 1967 and the Company continues to be controlled and run by the Baird Family. We’re proud of the ways in which, for over half a century, the Company has provided employment, training and financial reward for its owners and employees.
We aim to be the UK’s largest and best specialist Bullion Merchant dealers. In a very saturated market, dominated by high-run low-margin traders, we want to retain the customer closeness of a local Bullion dealer with the innovation and expertise to deliver refined gold and silver of the highest purity.
We acknowledge that, to progress to the next phase in the Company’s future, it is likely that we need to form strategic partnerships with other companies and groups in the sectors within which we operate. We continue to explore possibilities along these lines. In doing so, our main aims are to maximise the Company’s ability to grow profits and market share whilst returning the highest possible value to the Baird family shareholders through brand loyalty and innovative growth opportunities.
We make strategic decisions based on long-term objectives, processes, and upskilling our people at the expense of short-term gains. We will continue to invest and upgrade our infrastructure. The hope for 2024 is to re-launch e-commerce functionality that will not only improve speed, performance, and product offerings, but also offer an enhanced customer portal for both retail and wholesale, stronger site wide security, improve customer support and provide user friendly navigation.  
We continue to engage and develop our employees, reinforcing our values and recognise when they go over and above daily tasks. 

Page 2

 
BAIRD & CO. LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023


This report was approved by the board on 29 July 2024 and signed on its behalf.



L Baird
Director

Page 3

 
BAIRD & CO. LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the 6 month period ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Greenhouse gas emissions, energy consumption and energy efficiency action

The energy usage for the 6 month period ended 31 December 2023 at our Beckton refinery was 764 MWh of Electricity (Primary energy), equivalent to 295 MWh of delivered energy. For Gas the energy usage was 40 KWh. The electricity energy usage equates to 6 MWh per tonne of silver refined and 142 MWh per tonne of gold refined. This information is taken from reports sent to the Environment Agency.

Results and dividends

The profit for the 6 month period, after taxation, amounted to £249,285 (2023 - £618,423).

Dividends of £1,000,000 were paid during the period ended 31 December 2023 (2023 - £1,000,000). The directors have recommended further dividends of £500,000 post-period end.

Page 4

 
BAIRD & CO. LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023


Directors

The directors who served during the 6 month period were:

A S Baird 
L Baird 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the period end.

Auditors

The auditorsBarnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 July 2024 and signed on its behalf.
 





L Baird
Director

Page 5

 
BAIRD & CO. LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BAIRD & CO. LIMITED
 

Opinion


We have audited the financial statements of Baird & Co. Limited (the 'Company') for the 6 month period ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the 6 month period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 6

 
BAIRD & CO. LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BAIRD & CO. LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the Directors' report for the financial 6 month period for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
BAIRD & CO. LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BAIRD & CO. LIMITED (CONTINUED)


Auditors' 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 Auditors' 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the relevant sector;
We focused on specific laws and regulations, which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and ISO standards;
We assessed the extent of compliance with laws and regulations identified above through making enquires of management and inspecting legal correspondence and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
 
We assessed the susceptibility of the company’s financial statements to material misstatement, including
obtaining an understanding of how fraud might occur, by:

Making enquires of management as to where they considered there was susceptibility to fraud, their knowledge of actual suspected and alleged fraud; and
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
 
To address the risk of fraud through management bias and override of controls, we:

Performed analytical procedures to identify any unusual or unexpected relationships;
Tested journal entries to identify unusual transactions;
Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
Investigated the rationale behind significant or unusual transactions.
 
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial statements, the less likely it is that we would become aware of non-compliance.
 
Auditing standards also limit the audit procedures to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
 
Material misstatements that arise due to fraud can be harder to detect than those that arise from errors as they
may involve deliberate concealment or collusion.
Page 8

 
BAIRD & CO. LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BAIRD & CO. LIMITED (CONTINUED)




A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


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 2006Our 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 Auditors' 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.





Simon Liggins (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants  
Statutory Auditor
Leytonstone House
Leytonstone
London
E11 1GA

30 July 2024
Page 9

 
BAIRD & CO. LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

6 Month 
period to 31 December 2023
18 Month period to 30 June 2023
Note
£
£

  

Turnover
 4 
145,376,067
473,595,782

Cost of sales
  
(142,202,596)
(465,589,455)

Gross profit
  
3,173,471
8,006,327

Administrative expenses
  
(2,736,186)
(7,078,093)

Operating profit
  
437,285
928,234

Interest payable and similar expenses
 8 
(81,065)
(62,240)

Profit before tax
  
356,220
865,994

Tax on profit
 9 
(106,935)
(247,571)

Profit for the financial 6 month period
  
249,285
618,423

Other comprehensive income for the 6 month period
  

Revaluation of property
  
-
1,883,059

Other comprehensive income for the 6 month period
  
-
1,883,059

Total comprehensive income for the 6 month period
  
249,285
2,501,482

There were no recognised gains and losses for 2023 or 2023 other than those included in the statement of comprehensive income.

The notes on pages 13 to 34 form part of these financial statements.

Page 10

 
BAIRD & CO. LIMITED
REGISTERED NUMBER: 02269558

BALANCE SHEET
AS AT 31 DECEMBER 2023

31 December
30 June
2023
2023
Note
£
£

Fixed assets
  

Intangible assets
 11 
152,000
189,050

Tangible assets
 12 
8,801,228
8,862,333

  
8,953,228
9,051,383

Current assets
  

Stocks
 14 
29,672,039
31,346,809

Debtors: amounts falling due within one year
 15 
5,141,748
8,700,493

Cash at bank and in hand
 16 
5,619,674
5,461,100

  
40,433,461
45,508,402

Creditors: amounts falling due within one year
 17 
(33,281,703)
(37,708,671)

Net current assets
  
 
 
7,151,758
 
 
7,799,731

Total assets less current liabilities
  
16,104,986
16,851,114

Provisions for liabilities
  

Deferred tax
  
(254,698)
(250,111)

Net assets
  
15,850,288
16,601,003


Capital and reserves
  

Called up share capital 
 20 
127,090
127,090

Share premium account
 21 
1,525,814
1,525,814

Capital redemption reserve
 21 
8,000
8,000

Revaluation reserve
 21 
2,447,294
2,447,294

Profit and loss account
 21 
11,742,090
12,492,805

  
15,850,288
16,601,003


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 July 2024.




L Baird
Director

The notes on pages 13 to 34 form part of these financial statements.

Page 11

 

 
BAIRD & CO. LIMITED


 

STATEMENT OF CHANGES IN EQUITY
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023



Called up share capital
Share premium account
Capital redemption reserve
Revaluation reserve
Profit and loss account
Total equity


£
£
£
£
£
£



At 1 January 2022
127,090
1,525,814
8,000
564,235
12,874,382
15,099,521





Profit for the 18 month period
-
-
-
-
618,423
618,423


Revaluation of tangible fixed assets
-
-
-
1,883,059
-
1,883,059


Dividends: Equity capital
-
-
-
-
(1,000,000)
(1,000,000)





At 1 July 2023
127,090
1,525,814
8,000
2,447,294
12,492,805
16,601,003





Profit for the 6 month period
-
-
-
-
249,285
249,285


Dividends: Equity capital
-
-
-
-
(1,000,000)
(1,000,000)



At 31 December 2023
127,090
1,525,814
8,000
2,447,294
11,742,090
15,850,288



The notes on pages 13 to 34 form part of these financial statements.

Page 12

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

1.


General information

Baird & Co Limited specialises in manufacturing, refining, processing, melting and assaying precious metals, and vaulting such as Gold, Silver, Platinum, Palladium and Rhodium. Revenue is derived from the subsequent sale of precious metal in various forms.
The Company is a private company limited by shares, incorporated and domiciled in the United Kingdom.


2.


Accounting policies

  
2.1

Statement of compliance and basis of preparation

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.
The company has adopted the July 2015 amendments to FRS 102 in the preparation of these financial statements, thus permitting the accounting valuation policy adopted for stocks as described in note 2.7.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated. 

  
2.2

Going concern

The Company meets its day-to-day working capital requirements through careful management of working capital positions. The Company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Company should be able to operate without other third party support. After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

  
2.3

Exemptions for qualifying entities under FRS 102

The Company has taken advantage of the exemption, under FRS 102 paragraph 1.12(b), from preparing a statement of cash flows, on the basis that it is a qualifying entity and its ultimate parent company, Baird Investments Limited, includes the Company’s cash flows in its own consolidated financial statements.

  
2.4

Consolidated financial statements

The Company is a subsidiary of Baird Investments Limited. It is included in the consolidated financial statements of Baird Investments Limited which are publicly available. It is exempt from the requirement to prepare group accounts by virtue of section 400 of the Companies Act 2006. These financial statements therefore present information about the Company as an individual undertaking and not about its group. 

Page 13

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

.Accounting policies (continued)

  
2.5

Revenue recognition

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:
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
• the Company has transferred the significant risks and rewards of ownership to the buyer;
• the amount of revenue can be measured reliably;
• it is probable that the Company will receive the consideration due under the transaction;
• the costs incurred or to be incurred in respect of the transaction can be measured reliably;
• when any other specific criteria relating to each of the Company’s sales types have been met, as   described below.
The Company has the following main sources of revenue:
a) Sale of goods - wholesale
All of the Company’s significant sources of revenue derive from the sale of precious metal to its customers. Due to the nature of the industry in which the Company operates, the contractual arrangements surrounding certain transactions can be complex. The key elements of these contractual arrangements, which are necessary for an understanding of these financial statements, are explained in more detail below. However, unless as separately described below, the key revenue recognition criteria above shall apply to all transactions. 
Similarly, the industry in which the Company operates gives rise to significant additional commercial activity associated with the commodity and product that the Company sells. For example, bullion brokerage, arbitrage and investment. The Company does not participate in such activity. All of the Company’s sales derive from metal owned by the Company. The Company does not seek to earn any revenue from movements in the price of the underlying commodity. The Company’s stock and trading positions are balanced accordingly to avoid such price exposure.
Allocated and unallocated metal sales
Sales are made on either an allocated or an unallocated basis. Allocated metal sales involve the physical transfer of specific metal bars and/or coins to a customer or to be set aside and held on behalf of a customer, such metal being uniquely and separately identifiable as belonging to the customer.
Unallocated sales are sales in which there is often no immediate requirement or desire to transfer the physical metal to the customer, or for such metal to be separately identifiable. Given the nature of the commodity, selling on an unallocated basis is common. Unallocated metal account holders have a general entitlement to metal and are unsecured creditors of the Company. In line with industry convention, the Company continues to recognise the associated metal within its own stocks.
In the case of both allocated and unallocated sales, revenue is recognised based on the above key criteria, which will generally be the trade date of sale. For unallocated sales it is appropriate to recognise revenue even though physical delivery may not have taken place, since it is demonstrably the case that the significant risks and rewards of ownership of the metal (which is mainly the
Page 14

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

.Accounting policies (continued)

exposure to price fluctuations) will have passed to the customer. The Company will no longer be exposed to such risks and rewards as it will have corresponding stock and creditor balances denominated in metal terms such that the Company’s position is balanced. 
When an unallocated account customer converts previously purchased unallocated metal into allocated metal the Company accounts for this as a purchase of unallocated metal and a sale of allocated metal.  This is because the original sale of unallocated metal is a contractually separate transaction. The subsequent repurchase of unallocated metal represents a contractually separate transaction, on new terms, including weight and timing, and therefore price. The allocated metal sale represents another contractually separate transaction and will involve the legal separation and physical identification (separate numbering of bars etc.) of metal. 
Further information regarding unallocated and allocated metal accounts can be found on our website at www.bairdmint.com.
Deferred trading accounts
The Company operates deferred cash and metal accounts with certain customers and suppliers (counterparties). All sales and purchases arising from deferred trading account activity are included within revenue and cost of sales respectively. All transactions are recognised in the financial statements on the trade date of the transaction which is the date at which both parties are unconditionally contracted to complete the transaction. Deferred cash and metal balances will exist with such counterparties at a given point in time and such balances are included within stocks, in the case of metal asset balances, debtors in the case of cash asset balances and in creditors in the case of both cash and metal liabilities.  
b) Sale of goods - retail
The Company operates a retail shop for the sale of gold and certain related products. Sales of gold and related products are recognised on sale to the customer, which is considered to be at the point at which risks and rewards of ownership are transferred.
c) Sale of goods - internet and telephone based transactions
The Company sells precious metal via its website and by telephone for delivery to the customer. Revenue is recognised at the point at which risks and rewards of ownership are transferred. 

  
2.6

Cost of sales

Cost of sales represents amounts payable for the purchase of various precious metals and related products. Cost of sales are recognised on the trade date of a transaction.

Page 15

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

.Accounting policies (continued)

  
2.7

Stocks and work in progress

Stocks consist of precious metals held by the Company and are valued at fair value less costs to sell in accordance with the alternative accounting rules permitted by the Companies Act 2006 and with the provisions of FRS 102 paragraph 13.3. All precious metals are valued at period end closing values as published by the London Bullion Market Association (LBMA), an internationally recognised pricing mechanism. Such prices are based on the “fine” metal benchmark for each type of precious metal, which is similarly internationally recognised. As stocks of precious metals are held in various forms, only the fine metal content is included in stock valuation, all other metal content is ignored as such values would be wholly immaterial. 
As noted in accounting policy 2.5, the Company operates allocated and unallocated accounts for its customers. In common with industry practice, stocks held on behalf of unallocated account holders are included within the value of stocks held by the Company in the balance sheet. A corresponding liability is included within creditors. Unallocated metal account holders have a general entitlement to metal and are unsecured creditors of the Company. Their holding is not represented by any specific metal set aside but their general entitlement is made up of metal balances held within stock. The corresponding liability to unallocated metal account holders is valued at fair value, based on the same principles as the corresponding stock asset value, as described above. The Company seeks to maintain an equilibrium between its level of total precious metal stocks and total precious metal liabilities. The Directors consider it necessary to adopt a fair value policy to measure both the assets and liabilities in question in order for the financial statements to give a true and fair view. 
Deferred metal stocks, as described in accounting policy 2.5, comprise stocks held on behalf of counterparties with which deferred accounts are operated. Similarly deferred metal liabilities represent corresponding metal liabilities to counterparties with which deferred accounts are operated. Deferred metal stocks and liabilities are valued at fair value at the balance sheet date. Deferred metal stocks are included within the stock value in the balance sheet and deferred metal liabilities are included within creditors in the balance sheet. 
Post period-end diminution in value will only be considered as an indicator of impairment of precious metal stocks to the extent that total precious metal stocks exceed total precious metal liabilities at the balance sheet date. In other words, impairment is only considered to the extent the Company has a net precious metal stock exposure.
Allocated metal account holders have specific metal set aside held as the property of the account holder. The value of metal held by these account holders is not included in the Company's financial statements. Accordingly no liability to allocated account holders is included in the financial statements.  
Stocks also include immaterial amounts of tools and other ancillary items which are valued at the lower of cost and estimated selling price less costs to complete and sell. 
Precious metal stocks held on consignment at third parties are included at fair value within stocks in the balance sheet as the Company retains legal title to such stocks until they are sold by the third party. Stocks held on behalf of third parties by the Company, as consignee, are not included in the value of stocks in the balance sheet as the Company does not have legal title to such stocks. 

Page 16

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

.Accounting policies (continued)

  
2.8

Financial instruments

Financial assets
Basic financial assets, including trade debtors and other receivables, cash and bank balances and investments, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the Statement of comprehensive income.
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 the Statement of comprehensive income.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities
Basic financial liabilities, including trade creditors and other payables, 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 receipts discounted at a market rate of interest.
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. Trade creditors 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.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
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.
Deferred metal contracts involve the purchase and sale of a non-financial item and are therefore not financial instruments and neither do the Directors believe that the provisions of FRS 102 paragraph
Page 17

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

.Accounting policies (continued)

12.5 apply because such contracts are not capable of being settled net in cash or another financial instrument.
Metal liabilities to deferred and unallocated metal account holders represent a non-financial liability and are included in creditors. These are not financial liabilities.
Cash balances owed by/to deferred account counterparties are included within debtors/creditors respectively and are financial assets/liabilities.

  
2.9

Intangible fixed assets and goodwill

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 five years. Intangible assets that are not yet brought into use are not amortised. The Directors will assess the useful economic life of such intangibles when they are brought into use. 
Acquired goodwill is capitalised and amortised over its useful economic life. The Company does not currently have any unamortised goodwill. The Directors would consider the useful economic life for any future additions based on their knowledge and experience of the sector and with due regard to prevailing accounting standards. All goodwill is reviewed for impairment at the end of its first full financial year following acquisition and subsequently as and when necessary if circumstances emerge that indicate that the carrying value may not be recoverable.

Page 18

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

.Accounting policies (continued)

  
2.10

Tangible fixed assets

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.
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Statement of comprehensive income during the period in which they are incurred.
Land is not depreciated. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance method. The estimated useful lives range as follows:
Freehold property 2% (50 years) on straight-line 
Long term leasehold property – over the term of the lease
Plant & machinery 10% (10 years) on straight-line
Motor vehicles 25% (4 years) on straight-line
Office equipment 25% (4 years) on straight-line 
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 within the Statement of comprehensive income.

  
2.11

Fixed asset investments

Fixed asset investments comprise equity shares in Baird & Co. Private Limited (“PTE”) which is incorporated in Singapore and not publicly traded. Investments in subsidiaries are measured at cost less accumulated impairment. 

  
2.12

Operating leases: Lessee

Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the period of the lease.

  
2.13

Cash and cash equivalents

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.

Page 19

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

.Accounting policies (continued)

  
2.14

Foreign currency

Functional and presentation currency
The Company’s functional and presentation currency is the pound sterling.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of comprehensive income except when deferred in other comprehensive income as qualifying cash flow hedges.

  
2.15

Employee benefits

The Company provides a range of benefits to eligible employees, annual bonus arrangements, paid holiday arrangements and defined contribution pension plans.
Short term benefits
Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.
Defined contribution pension plans
The Company makes contributions to the personal pension plans of certain employees. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plans are held separately from the Company in independently administered funds.
Annual bonus plan
The Company operates an annual bonus plan for certain employees. An expense is recognised in the Statement of comprehensive income when the Company has a legal or constructive obligation to make payments under the plan as a result of past events and a reliable estimate of the obligation can be made.

Page 20

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

.Accounting policies (continued)

  
2.16

Current taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statement of comprehensive income, 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 balance sheet date in the countries where the Company operates and generates income. 

  
2.17

Deferred taxation

Deferred balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet 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. 
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Company can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. 
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 income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

  
2.18

Related party transactions

The Company discloses transactions with related parties which are not wholly owned within the same group. It does not disclose transactions with members of the same group that are wholly owned.

  
2.19

Revaluation of tangible fixed assets

Individual freehold properties are carried at current period value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

Page 21

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

.Accounting policies (continued)

  
2.20

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

  
2.21

Interest income

Interest income is recognised in profit or loss using the effective interest method.

  
2.22

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

  
2.23

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured.
If it is not possible to distinguish between the research phase and the development phase of an internal project the expenditure is treated as if it were all incurred in the research phase only.

  
2.24

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Page 22

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
a) Critical judgments in applying the entity’s accounting policies
(i)  Stock valuation basis 
As described in note 2.7 above the Company values stocks of precious metals at fair value.  This policy is in accordance with the alternative accounting rules permitted by the Companies Act 2006 and with FRS 102 paragraph 13.3 but is a departure from the general requirement to value stocks at cost less estimated selling price less costs to complete and sell.  The Directors believe that unless a policy of valuing stocks at fair value is adopted the accounts would not provide a true and fair view. 
(ii)  Stocks - amounts owed to unallocated account holders  
As described in note 2.7  above the Company recognises metal stocks owed to unallocated metal account customers within its own stock in the balance sheet with a corresponding liability recorded within creditors. This treatment is in line with industry practice in respect of the operation of unallocated metal accounts.
(iii)  Revenue recognition and financial instruments 
The Company adopts the revenue recognition and financial instruments policies as noted above at note 2.5. The Company does not regard any of its transactions as falling within the scope of section 12 of FRS 102 “Other Financial Instrument Issues”. In particular paragraph 12.5 of this section does not apply. As a result, except where the Company’s stated policies themselves would result in the netting off of sales and cost of sales, the gross value of sales and purchase transactions are recorded within turnover and cost of sales respectively in these financial statements. The Directors believe that this approach is the most appropriate in the Company’s circumstances, is in accordance with prevailing generally accepted accounting practice and adopting such a policy helps to maintain a consistent understanding for typical users of these accounts.  
b) Critical accounting estimates and assumptions
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
(i)  Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 15 for the carrying amount of the property plant and equipment, and note 2.10 for the useful economic lives for each class of assets.

(ii)  Impairment of debtors
The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of
Page 23

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

3.Judgments in applying accounting policies (continued)

the debtor, the ageing profile of debtors and historical experience. See note 18 for the net carrying amount of the debtors.
(iii)  Taxation
The Company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities. Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an
assessment of the effect of future tax planning strategies. Further details are contained in note 12.


4.


Turnover

6 Month period to 31 December 2023
18 Month period to 30 June 2023
£
£

Sale of precious metals
145,376,067
473,595,782


All revenue arises from the sale of precious metals and there are no other material sources of revenue.
In the opinion of the Directors the disclosure of revenue by geographical area would be seriously prejudicial to the interests of the Company.


5.


Auditors' remuneration

During the 6 month period, the Company obtained the following services from the Company's auditors and their associates:


6 Month period to 31 December 2023
18 Month period to 30 June 2023
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
50,000
64,500

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 24

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

6.


Employees

Staff costs, including directors' remuneration, were as follows:


6 Month period to 31 December 2023
18 Month period to 30 June 2023
£
£

Wages and salaries
1,251,266
2,989,738

Social security costs
126,991
314,406

Cost of defined contribution scheme
19,748
56,964

1,398,005
3,361,108


The average monthly number of employees, including the directors, during the 6 month period was as follows:


6 Month    
period to 31 December 2023
18 Month    
period to 30 June 2023
            No.
            No.







Administration, Marketing and Production
55
49


7.


Directors' remuneration

6 Month period to 31 December 2023
18 Month period to 30 June 2023
£
£

Directors' emoluments
17,395
321,086

Company contributions to defined contribution pension schemes
263
8,927

17,658
330,013


During the 6 month period retirement benefits were accruing to 2 directors (period to June 2023 - 2) in respect of defined contribution pension schemes.

Page 25

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

8.


Interest payable and similar expenses

6 Month period to 31 December 2023
18 Month period to 30 June 2023
£
£


Other loan interest payable
81,065
62,240


9.


Taxation


6 Month period to 31 December 2023
18 Month period to 30 June 2023
£
£

Corporation tax


Current tax on profits for the period / year
102,348
231,633


Total current tax
102,348
231,633

Deferred tax


Origination and reversal of timing differences
4,587
15,938

Total deferred tax
4,587
15,938


Tax on profit
106,935
247,571
Page 26

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023
 
9.Taxation (continued)


Factors affecting tax charge for the 6 month period/period

The tax assessed for the 6 month period (18 month period) is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 20%). The rate used in the prior period is reflective of the mid-period transition from 19% to 25%. The differences are explained below:

6 Month period to 31 December 2023
18 Month period to 30 June 2023
£
£


Profit on ordinary activities before tax
356,220
865,994


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (period to June 2023 - 20%)
89,055
173,199

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
9,230
47,742

Capital allowances for 6 month period/18 month period in excess of depreciation
8,650
26,630

Total tax charge for the 6 month period/18 month period
106,935
247,571


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


10.


Dividends

6 Month period to 31 December
18 Month period to 30 June
2023
2023
£
£


Final dividend
1,000,000
1,000,000

The directors have recommended further dividends of £500,000 post-period end. 

Page 27

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

11.


Intangible assets






Software

£



Cost


At 1 July 2023
654,961



At 31 December 2023

654,961



Amortisation


At 1 July 2023
465,911


Charge for the 6 month period on owned assets
37,050



At 31 December 2023

502,961



Net book value



At 31 December 2023
152,000



At 30 June 2023
189,050

The software intangible assets include the development of the Company’s bespoke financial management system which was created by an external development firm for the Company’s specific requirements.
The asset is being amortised over 10 years. 



Page 28

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

12.


Tangible fixed assets







Freehold property
Long-term leasehold property
Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 July 2023
6,050,000
2,420,731
3,758,990
82,300
462,084
12,774,105


Additions
-
-
79,371
-
12,265
91,636



At 31 December 2023

6,050,000
2,420,731
3,838,361
82,300
474,349
12,865,741



Depreciation


At 1 July 2023
-
158,664
3,331,162
33,193
388,753
3,911,772


Charge for the 6 month period on owned assets
27,452
11,805
84,641
7,014
21,829
152,741



At 31 December 2023

27,452
170,469
3,415,803
40,207
410,582
4,064,513



Net book value



At 31 December 2023
6,022,548
2,250,262
422,558
42,093
63,767
8,801,228



At 30 June 2023
6,050,000
2,262,067
427,828
49,107
73,331
8,862,333

Page 29

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

           12.Tangible fixed assets (continued)



Freehold property has been professionally valued as at 30th June 2023, by Aston James Associates. The directors are able to demonstrate there has not been a material change in the valuation of this property since this valuation took place. 
If the freehold land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:


31 December
30 June
2023
2023
£
£



Cost
4,209,227
4,209,227

Accumulated depreciation
(685,762)
(645,801)

3,523,465
3,563,426


13.


Investments

The Company has a 100% investment in the ordinary share capital of Baird & Co. Private Limited ("PTE"), a company registered in Singapore, for SGD100, with the Sterling equivalent being £53.


14.


Stocks

In accordance with FRS 102 paragraph 13.22(b) the Directors believe it is appropriate to disclose carrying amounts of stocks in the following classifications:


31 December
30 June
2023
2023
£
£

Precious metals - refined
3,363,005
2,159,652

Precious metals - unrefined
26,309,034
29,187,157

29,672,039
31,346,809


Stocks recognised as an expense during the period were £142,202,596 (June 2023 - £465,589,455).

Page 30

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

15.


Debtors

31 December
30 June
2023
2023
£
£


Trade debtors
4,194,177
6,888,381

Other debtors
293,060
1,018,162

Prepayments and accrued income
654,511
793,950

5,141,748
8,700,493



16.


Cash and cash equivalents

31 December
30 June
2023
2023
£
£

Cash at bank and in hand
5,619,674
5,461,100



17.


Creditors: Amounts falling due within one year

31 December
30 June
2023
2023
£
£

Metal liabilities
30,312,382
33,100,643

Trade creditors
2,485,509
3,828,854

Amounts owed to group undertakings
2,724
2,724

Corporation tax
97,351
230,723

Other taxation and social security
114,272
44,432

Accruals and deferred income
269,465
501,295

33,281,703
37,708,671


Page 31

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

18.


Financial instruments

31 December
30 June
2023
2023
£
£

Financial assets


Financial assets measured at amortised cost
4,202,653
7,898,947


Financial liabilities


Financial liabilities measured at amortised cost
2,757,698
4,332,873


19.


Deferred taxation






2023
2023


£

£






At beginning of period / year
(250,111)
(234,173)


Charged to profit or loss
(4,587)
(15,938)



At end of period / year
(254,698)
(250,111)

The provision for deferred taxation is made up as follows:

31 December
30 June
2023
2023
£
£


Accelerated capital allowances
(138,593)
(134,006)

Rolled over gains
(116,105)
(116,105)

(254,698)
(250,111)

Page 32

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

20.


Share capital

31 December
30 June
2023
2023
£
£
Allotted, called up and fully paid



127,090 (2023 - 127,090) Ordinary shares of £1.00 each
127,090
127,090

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.



21.


Reserves

Share premium account

Share premium reserve represents consideration received on the issue of shares in excess of nominal value.
Capital redemption reserve
Capital redemption reserve represents the nominal value of shares previously repurchased by the Company.

Revaluation reserve

The revaluation reserve represents cumulative revaluations of freehold properties, less the associated deferred tax adjustments in accordance with FRS102.

Profit and loss account

The profit and loss account represents cumulative distributable profits and losses net of dividends and other adjustments


22.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £19,748 (June 2023 - £56,964). Contributions totalling £10,495 (June 2023 - £6,742) were payable to the fund at the balance sheet date.

Page 33

 
BAIRD & CO. LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 6 MONTH PERIOD ENDED 31 DECEMBER 2023

23.


Related party transactions and Directors' benefits: advances, credit and guarantees

All amounts are interest free and repayable on demand.
During the period the shareholders, who are also directors, of the Company had advances of £Nil (June 
2023 - £889,758) and repaid amounts of £885,760 (June 2023 - £Nil). At the period end, included within other debtors, were amounts owed by these shareholders of £3,998 (June 2023 - £889,758). 
At the period end, the Company was owed £Nil by (
June 2023 - £122,418 owed by) shareholders of the Company, who are not also directors.
At the period end, the Company owed to its shareholders amounts denominated in metal at a period end fix price equivalent to £273,244 (
June 2023 - £273,999). These are included within unallocated metal liabilies and occured at an arms-length basis. 
During the period companies controlled by the directors had an interest in dividends of £885,760 (
June 2023 -    £885,758).
The company has taken advantage of the exemption, under FRS 102 paragraph 1.12 and paragraph 33.1A, from disclosing transactions with key management and from disclosing other related party transactions as they are with other companies that are wholly owned within the Group.


24.


Controlling party

The parent undertaking is Baird Investments Limited, a Company incorporated in the United Kingdom. The group accounts of Baird Investments Limited are publicly avaliable from Companies House. The Company does not have an ultimate controlling party.

 
Page 34