Company Registration No. 02965597 (England and Wales)
BARAM LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
PO6 3TH
BARAM LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 23
BARAM LIMITED
COMPANY INFORMATION
- 1 -
Directors
Ms. C Schofield
Mr. T Brenton
Mr. J Maynard
Secretary
Ms. C Schofield
Company number
02965597
Registered office
Yelfs Yard
Botley Road
Bishops Waltham
Southampton
United Kingdom
SO32 1DR
Auditor
TC Group
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
BARAM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Fair review of the business

Baram Ltd undertakes groundwork and civil engineering disciplines mainly for housing developers, working on contracts ranging in value from £1m to £20m. Works are undertaken throughout the South and South East, in particular Hampshire and West Sussex.

Operating companies
Baram Ltd is the Groundworks Company, established over 20 years and employing the services of around 150 people and various specialist sub contractors in its business. Nas Plant Ltd owns and maintains plant hired to Baram.

Principal risks and uncertainties

 

Financial:

 

Production:

 

Structural:

 

The risks are mitigated by the following:

 

Financial:

 

Production:

 

Structural:

BARAM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Future developments

We are continually tendering for new works and are noticing projects which were previously delayed are now coming through for construction. Generally, it seems that following the election clients are showing more optimism with regards to the planning system which has been holding up build starts. The market we operate in is sound and we expect it to be expanding rapidly towards the end of 2024.

 

Labour remains a challenge with the supply of skilled labour restricted. We are improving levels of pay in order to both attract and retain labour.

 

Plant supply issues have eased and we are continuing with our plant and vehicle replacement programme. We have established a level of affordable borrowing to support investment and remain within it.

 

On behalf of the board

Mr. J Maynard
Director
22 July 2024
BARAM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Principal activities

The principal activity of the company during the year was groundwork and civil engineering services.

Directors

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

Ms. C Schofield
Mr. T Brenton
Mr. J Maynard
Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £350,808. The directors do not recommend payment of a further dividend.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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

Auditor

The auditor, TC Group, are deemed to be reappointed under section 487(2) of the Companies Act 2006.

BARAM LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
Mr. J Maynard
Director
22 July 2024
BARAM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BARAM LIMITED
- 6 -
Opinion

We have audited the financial statements of Baram Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

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

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 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:

Responsibilities of directors

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

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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

BARAM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BARAM LIMITED
- 8 -

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

 

 

 

BARAM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BARAM LIMITED
- 9 -

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.

Graham Figgins FCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
22 July 2024
Office: Portsmouth
BARAM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
16,859,909
19,864,055
Cost of sales
(15,796,059)
(18,556,328)
Gross profit
1,063,850
1,307,727
Administrative expenses
(1,435,852)
(1,347,604)
Other operating income
950,000
550,000
Operating profit
4
577,998
510,123
Interest receivable and similar income
7
-
0
4,772
Interest payable and similar expenses
8
(5,424)
(5,608)
Profit before taxation
572,574
509,287
Taxation
9
(133,610)
(114,847)
Profit for the financial year
438,964
394,440
Other comprehensive income
-
-
Total comprehensive income for the year
438,964
394,440

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

The notes on pages 13 to 23 form part of these financial statements
BARAM LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
311,467
317,711
Current assets
Debtors
12
7,640,304
8,031,091
Cash at bank and in hand
1,170,647
875,601
8,810,951
8,906,692
Creditors: amounts falling due within one year
13
(3,926,415)
(4,085,731)
Net current assets
4,884,536
4,820,961
Total assets less current liabilities
5,196,003
5,138,672
Creditors: amounts falling due after more than one year
14
(10,744)
(39,457)
Provisions for liabilities
(61,436)
(63,548)
Net assets
5,123,823
5,035,667
Capital and reserves
Called up share capital
18
500
500
Capital redemption reserve
500
500
Profit and loss reserves
5,122,823
5,034,667
Total equity
5,123,823
5,035,667
The financial statements were approved by the board of directors and authorised for issue on 22 July 2024 and are signed on its behalf by:
Mr. J Maynard
Director
Company Registration No. 02965597
The notes on pages 13 to 23 form part of these financial statements
BARAM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
500
500
5,021,035
5,022,035
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
394,440
394,440
Dividends
10
-
-
(380,808)
(380,808)
Balance at 31 December 2022
500
500
5,034,667
5,035,667
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
438,964
438,964
Dividends
10
-
-
(350,808)
(350,808)
Balance at 31 December 2023
500
500
5,122,823
5,123,823
The notes on pages 13 to 23 form part of these financial statements
BARAM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Baram Limited is a private company limited by shares incorporated in England and Wales. The registered office is Yelfs Yard, Botley Road, Bishops Waltham, Southampton, United Kingdom, SO32 1DR.

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.

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

 

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures

 

The financial statements of the company are consolidated in the financial statements of Baram JTC Limited. These consolidated financial statements are available from its registered office Yelfs Yard, Botley Road, Bishops Waltham, Southampton, SO32 1DR.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered a period of 12 months from the date of approval of these accounts. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is the total amount receivable for goods supplied and services provided, excluding VAT. Profit is recognised on long-term contracts if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses.

 

Turnover is calculated by reference to the value of work performed to date as a proportion of the total contract value

 

BARAM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.4
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:

Plant & Machinery
25% straight line
Equipment
25% straight line
Motor Vehicles
Straight line over 9 years

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 credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.6
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Amounts recoverable on long term contracts, which are included in debtors, are stated at the net of sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on accounts.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and other short-term liquid investments with original maturities of three months or less.

BARAM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.8
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

Impairment of financial assets

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

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans 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. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

BARAM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.10
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 company’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.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

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

1.12
Retirement benefits

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

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

BARAM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2
Judgements and key sources of estimation uncertainty

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

 

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

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

 

In the case of contracts treated as long term the directors assess the stage of completion by comparing the current costs with the total expected costs for the project. Consideration is given to external factors that may affect the overall outcome of the project.

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
16,859,909
19,864,055
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
7,000
6,500
Depreciation of owned tangible fixed assets
8,569
4,375
Depreciation of tangible fixed assets held under finance leases
49,804
51,607
(Profit)/loss on disposal of tangible fixed assets
(523)
2,403
BARAM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
5
Employees

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

2023
2022
Number
Number
Direct
34
40
Administrative
11
11
Total
45
51

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,061,268
2,120,221
Social security costs
216,113
224,276
Pension costs
50,472
37,020
2,327,853
2,381,517
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
25,457
26,216
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
-
0
4,772
8
Interest payable and similar expenses
2023
2022
£
£
Interest on hire purchase contracts
5,424
5,608
BARAM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
135,723
101,174
Deferred tax
Origination and reversal of timing differences
(2,113)
(1,578)
Changes in tax rates
-
0
15,251
Total deferred tax
(2,113)
13,673
Total tax charge
133,610
114,847

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
572,574
509,287
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
134,669
96,765
Tax effect of expenses that are not deductible in determining taxable profit
5,949
4,891
Group relief
(6,944)
-
0
Capital allowances enhanced relief
(64)
(2,060)
Effect of deferred tax at future tax rate
-
0
15,251
Taxation charge for the year
133,610
114,847

Deferred tax assets and liabilities are calculated using the future rate of corporation tax of 25% applicable from 1 April 2023, in order to accurately reflect the prevailing rate which is expected to apply at the time of the the reversal of timing differences.

10
Dividends
2023
2022
£
£
Final paid
350,808
380,808
BARAM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
11
Tangible fixed assets
Plant & Machinery
Equipment
Motor Vehicles
Total
£
£
£
£
Cost
At 1 January 2023
445,515
31,286
881,243
1,358,044
Additions
37,564
-
0
15,000
52,564
Disposals
(8,105)
-
0
(24,645)
(32,750)
At 31 December 2023
474,974
31,286
871,598
1,377,858
Depreciation
At 1 January 2023
443,327
30,719
566,287
1,040,333
Depreciation charged in the year
5,779
189
52,405
58,373
Eliminated in respect of disposals
(7,670)
-
0
(24,645)
(32,315)
At 31 December 2023
441,436
30,908
594,047
1,066,391
Carrying amount
At 31 December 2023
33,538
378
277,551
311,467
At 31 December 2022
2,188
567
314,956
317,711

The net carrying value of tangible fixed assets includes the following in respect of assets held under hire purchase contracts.

2023
2022
£
£
Motor Vehicles
258,213
308,018
258,213
308,018
Depreciation charge for the year in respect of assets held under hire purchase contracts
49,804
51,607
BARAM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,578,242
3,557,732
Gross amounts due from contract customers
1,157,229
114,689
Amount due from parent undertaking
4,814,508
4,283,438
VAT recoverable
77,602
67,736
Prepayments and accrued income
12,723
7,496
7,640,304
8,031,091
13
Creditors: amounts falling due within one year
2023
2022
£
£
Net obligations under hire purchase contracts
15
29,837
68,788
Payments received on account
163,286
981,043
Trade creditors
1,243,242
1,239,854
Amounts due to fellow subsidiary undertaking
2,261,636
1,611,973
Corporation tax
135,723
101,174
Other taxation and social security
77,604
71,785
Accruals and deferred income
15,087
11,114
3,926,415
4,085,731

The hire purchase contracts are secured by the assets to which they relate.

14
Creditors: amounts falling due after more than one year
2023
2022
£
£
Obligations under hire purchase contracts
15
10,744
39,457

The hire purchase contracts are secured by the assets to which they relate.

BARAM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
15
Finance lease and hire purchase obligations
2023
2022
Future minimum lease payments due under finance leases and hire purchase contracts:
£
£
Within one year
29,837
68,788
In two to five years
10,744
39,457
40,581
108,245
16
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
61,436
63,548
2023
Movements in the year:
£
Liability at 1 January 2023
63,548
Credit to profit or loss
(1,987)
Effect of change in tax rate - profit or loss
(125)
Liability at 31 December 2023
61,436
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
50,472
37,020
BARAM LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
18
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
500 Ordinary shares of £1 each
500
500
500
500
19
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
-
0
1,582
20
Ultimate controlling party

The ultimate parent company is Baram JTC Limited, a company registered in England and Wales.

2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100Mr. T BrentonMr. J MaynardMr James MaynardMs. C Schofieldfalsefalse029655972023-01-012023-12-3102965597bus:CompanySecretaryDirector12023-01-012023-12-3102965597bus:Director12023-01-012023-12-3102965597bus:Director22023-01-012023-12-3102965597bus:CompanySecretary12023-01-012023-12-3102965597bus:Director32023-01-012023-12-3102965597bus:RegisteredOffice2023-01-012023-12-31029655972023-12-31029655972022-01-012022-12-31029655972022-12-3102965597core:PlantMachinery2023-12-3102965597core:FurnitureFittings2023-12-3102965597core:MotorVehicles2023-12-3102965597core:PlantMachinery2022-12-3102965597core:FurnitureFittings2022-12-3102965597core:MotorVehicles2022-12-3102965597core:Non-currentFinancialInstruments2023-12-3102965597core:Non-currentFinancialInstruments2022-12-3102965597core:CurrentFinancialInstruments2023-12-3102965597core:CurrentFinancialInstruments2022-12-3102965597core:ShareCapital2023-12-3102965597core:ShareCapital2022-12-3102965597core:CapitalRedemptionReserve2023-12-3102965597core:CapitalRedemptionReserve2022-12-3102965597core:RetainedEarningsAccumulatedLosses2023-12-3102965597core:RetainedEarningsAccumulatedLosses2022-12-3102965597core:ShareCapital2021-12-3102965597core:RetainedEarningsAccumulatedLosses2021-12-31029655972021-12-3102965597core:ShareCapitalOrdinaryShares2023-12-3102965597core:ShareCapitalOrdinaryShares2022-12-3102965597core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3102965597core:PlantMachinery2023-01-012023-12-3102965597core:FurnitureFittings2023-01-012023-12-3102965597core:MotorVehicles2023-01-012023-12-3102965597dpl:Item12023-01-012023-12-3102965597dpl:Item32022-01-012022-12-3102965597dpl:Item22023-01-012023-12-3102965597dpl:Item42022-01-012022-12-3102965597core:UKTax2023-01-012023-12-3102965597core:UKTax2022-01-012022-12-310296559712023-01-012023-12-310296559712022-01-012022-12-310296559722023-01-012023-12-310296559722022-01-012022-12-3102965597core:PlantMachinery2022-12-3102965597core:FurnitureFittings2022-12-3102965597core:MotorVehicles2022-12-31029655972022-12-3102965597core:WithinOneYear2023-12-3102965597core:WithinOneYear2022-12-3102965597core:BetweenTwoFiveYears2023-12-3102965597core:BetweenTwoFiveYears2022-12-3102965597bus:OrdinaryShareClass42023-01-012023-12-3102965597bus:OrdinaryShareClass42023-12-3102965597bus:PrivateLimitedCompanyLtd2023-01-012023-12-3102965597bus:FRS1022023-01-012023-12-3102965597bus:Audited2023-01-012023-12-3102965597bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP