REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
BERISFORDS LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
FOR |
BERISFORDS LIMITED |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Income and Retained Earnings | 9 |
Balance Sheet | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 14 |
BERISFORDS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
83 Cambridge Street |
London |
SW1V 4PS |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their strategic report for the year ended 31st December 2023. |
REVIEW OF BUSINESS |
The company made an operating loss of £0.74m on reduced revenue of £4.91m after incurring redundancy costs of £0.27m (2022 operating profit £0.18m / revenue £5.89m/ redundancy costs £nil). |
Revenue contracted across all product markets during the year in both the UK and Rest of World although Europe was flat compared to 2022. This reduction in revenue was led by lower wholesale volumes as cost-of-living pressures affected retail demand. Contract values for bows and trims were also impacted to a lesser degree as customers looked to simplify packaging use in their own products. |
Raw material unit costs stabilised in 2023 after a period of increase during the preceding year but gross margin (before redundancy costs) contracted to 14.5% (2023: 23.6%) affected by adverse stock movement and the revenue contraction noted above. Stock turnover kept within an acceptable range at 2.60x (2022: 2.86x). Administrative costs were stable despite the recent inflation and currency/fixed asset disposal losses incurred during the year. Interest charges rose significantly as a large proportion of the company's borrowings are exposed to floating rates. |
Cash generated from operations was +£0.01m (2022: £+0.22m) with movement in working capital offsetting the operating loss. Days Sales Outstanding (DSO) based on the count back method contributed to cash flow improving to 43 days (2022: 55 days). However, given the relative weakness in forecast cash flow and outlook, the directors obtained intra group loan funding from the parent undertaking of £0.63m (2022:£nil). |
SUMMARY OF KEY PERFORMANCE INDICATORS (KPI) |
The company's key financial KPI are revenue, gross/pre-exceptional operating profit margin, operating cash flow, DSO, stock turnover and company net debt. |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors have assessed significant risks faced by the company which include reliance on key customers, price competition, exposure to fashion trends and stock control. |
Discretionary retail has been affected by the level of inflation impacting product volumes and market size. Despite this deterioration, the company maintains a strong brand recognition in its domestic market. Cost pressures have not abated and include National Living Wage (which is outside of the company's control) and new waste packaging regulations, the cost of which has been difficult to assess given the delay in implementation and publication of pricing by DEFRA. However, the company continues to benefit from long term price contracts in relation to gas and electricity supply which were commenced pre-2022. |
General commercial risk is hedged by diversifying across multiple markets and geographies. Price competition from Far East suppliers is tempered by the company's focus on quality, stock availability and short lead times. Within packaging the company is committed to the delivery of superior service levels including pre-development design of customer be-spoke product. |
The company maintains credit insurance to cover the risk of default by its most significant customers. A high proportion of its customer base has traded with the company for many years which informs credit assessments. |
The product range is reviewed on a regular basis for underperforming qualities. This is usually undertaken in association with promotion of new product designs. A review is planned for mid- 2024. Management have continued to work with yarn suppliers to maximise recycled inputs within production and to improve product sustainability at an affordable cost. |
STRATEGY AND GOING CONCERN |
Wholesale activity levels through the first half of 2024 have continued to disappoint with no immediate signs of an improvement in market conditions. In addition, little forward visibility or lead time is provided by customers on the contract side. As such planning becomes difficult. However, given the 2023 result and immediate prospects, management will implement a further cost restructure as required which may involve a reduction in production capacity. There are new markets and potential products to leverage but translating these opportunities into lead generation and sales is not certain and takes time. Throughout this difficult period, the company has taken advantage of financial support from its parent company and bankers. This has enabled management to forecast a return to financial break-even and to assume going concern in these financial statements. |
ON BEHALF OF THE BOARD: |
20th June 2024 |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 31st December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of manufacturing of ribbons, bows, and textile trimmings. |
DIVIDENDS |
The directors do not propose the payment of a dividend in respect of 2023 (2022: £nil). |
DIRECTORS |
The directors set out in the table below have held office during the whole of the period from 1st January 2023 to the date of this report. |
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report. None of the directors held any interest in the Ordinary shares of £1 each at 1st January or 31st December 2023. |
H G Kuny |
R Lenzin |
P J Bowers |
G Parker |
M T Roberts |
A J Walker |
FINANCIAL RISK MANAGEMENT |
The company manages financial risks as follows: |
Foreign exchange risk |
The company trades in UK Sterling, Euro, US dollars and Swiss Francs. The net exposure in each currency is monitored and managed by the use of forward currency contracts where the exposure is deemed material. Separate currency bank accounts are maintained to minimise transaction costs. |
Customer credit risk |
The company may offer credit terms to the majority of its customers. To manage risk of default, the company enforces credit limits, uses credit vetting reports, and reviews past trade experience. Credit insurance cover is obtained when available for specific customers. |
Liquidity risk |
The going concern assumption requires the company to manage its cash flow so as liabilities can be settled as they fall due. Weekly cash flow forecasts are integrated with the company's annual budget or budget revisions. Credit facilities are offered by the company's bankers in the form of asset-based finance and a revolving loan facility referred to in note 12. |
Interest rate risk |
The company borrows from its bankers and related parties mentioned above. The scale of borrowing does not warrant interest hedging. As such, interest rate risk is only mitigated as surplus cash is used to repay debt. Management also keep the financing structure under review. |
Financial assets and liabilities |
2023 | 2022 |
£ | £ |
Financial assets - measured at amortised cost | 804,930 | 1,209,854 |
Financial liabilities - measured at amortised cost | (2,699,490 | ) | (2,521,149 | ) |
There were no financial assets or liabilities measured at fair value through profit and loss account in either 2023 or 2022. |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, George Hay & Company, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BERISFORDS LIMITED |
Opinion |
We have audited the financial statements of Berisfords Limited (the 'company') for the year ended 31st December 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 31st December 2023 and of its loss for the year 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BERISFORDS LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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 five, 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 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. |
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 a Report of the Auditors 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. |
Based on our understanding of the company's operations, we identified that the principal risks of non-compliance with laws and regulations relates to manufacturing operations. We considered the extent to which non-compliance might have a material effect on the financial statements that results in the situation that no further production of goods could be completed. We also considered the relevant laws and regulations that have a direct impact on the preparation of the financial statements. |
We are also required to evaluate management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). We found there were no principal risks directly impacting the company's income and management bias in accounting estimates. |
Audit procedures performed by the engagement team included: |
>Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; |
>Evaluating management’s controls designed to prevent and detect irregularities; |
>Identifying and testing journals, in particular journal entries posted with unusual account combinations or with |
unusual descriptions; and |
>Challenging assumptions and judgements made by management in their critical accounting estimates. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those |
leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BERISFORDS LIMITED |
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. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
& Statutory Auditors |
83 Cambridge Street |
London |
SW1V 4PS |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
STATEMENT OF INCOME AND |
RETAINED EARNINGS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of production |
GROSS PROFIT |
Administrative expenses |
(886,965 | ) | 60,002 |
Other operating income |
OPERATING (LOSS)/PROFIT | 5 | ( |
) |
Interest receivable and similar income |
(735,104 | ) | 184,982 |
Interest payable and similar expenses | 6 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 7 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
Retained earnings at beginning of year | ( |
) | ( |
) |
RETAINED EARNINGS AT END OF YEAR |
( |
) |
( |
) |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
BALANCE SHEET |
31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
Investment property | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of finance lease payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Other loan | ( |
) |
Lease rental payments | ( |
) | ( |
) |
Bank loan funding/(repayments) in year | ( |
) |
Net cash from financing activities | ( |
) |
Decrease in cash and cash equivalents | (24,354 | ) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
91,605 |
101,841 |
Effect of foreign exchange rate changes | (3,487 | ) | (9,989 | ) |
Cash and cash equivalents at end of year | 2 |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
(Loss)/profit for the financial year | ( |
) |
Depreciation charges |
Loss/(profit) on disposal of fixed assets | ( |
) |
Non-operating foreign exchange | 23,909 | 8,908 |
Finance costs | 112,740 | 29,333 |
Finance income | (293 | ) | (312 | ) |
Taxation | ( |
) |
(525,782 | ) | 361,275 |
Decrease/(increase) in stocks | ( |
) |
Decrease in trade and other debtors |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31st December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 156,651 | 145,778 |
Bank overdrafts | ( |
) | ( |
) |
63,764 | 91,605 |
Year ended 31st December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 145,778 | 137,751 |
Bank overdrafts | ( |
) | ( |
) |
91,605 | 101,841 |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank | 145,778 | 10,873 | 156,651 |
Bank overdrafts | (54,173 | ) | (38,714 | ) | (92,887 | ) |
91,605 | (27,841 | ) | 63,764 |
Debt |
Finance leases | (23,335 | ) | 16,399 | (6,936 | ) |
Debts falling due within 1 year | (612,839 | ) | 423,777 | (189,062 | ) |
(636,174 | ) | 440,176 | (195,998 | ) |
Total | (544,569 | ) | 412,335 | (132,234 | ) |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Berisfords Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the Companies Act 2006. |
The financial statements are prepared on a historical cost basis except for investment property and currency hedging contracts, which have accounted for at fair value as specified in the accounting policies below. |
The financial statements are presented in UK Pound Sterling (£). |
Going concern |
Following a review of the company's budget and cash flow forecast, the directors believe that the business has adequate financing to continue for the foreseeable future. As such these financial statements have been prepared on a going concern basis. |
Significant judgements and estimates |
There are no significant judgements or estimates applied in the financial statements other than: |
a) Property which is surplus to the manufacturing operation of the Company and can be separately identified as such has been recognised as investment property at open market value on the transition date. The directors are of the opinion that there has been no diminution in value since the transition date and that the open market value approximates to fair value. The deferred tax rate applied on revaluation gains should be the rate expected to apply when the property is sold, which is assumed to be the rate enacted on the balance sheet date. |
b) Stock in trade is reviewed annually for impairment associated with obsolescence or slow turnover of product. |
Turnover |
Turnover, which is stated net of value added tax, is recognised on the transfer of all significant risks and rewards associated with ownership of the goods. This usually arises on or close to the date of invoicing, at which time the company has fulfilled its obligations to make the goods available on an unconditional basis. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Office equipment | - |
Investment property |
Investment property is carried at fair value. Revaluation surpluses are recognised in the profit and loss account. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold. |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stock in trade is stated at the lower of cost or net realisable value (selling price less costs to complete and sell). The cost of work in progress and finished goods include materials, labour and an appropriate proportion of production overhead. The directors conduct an annual review for possible impairment losses resulting from slow moving stocks, obsolescence or changes in pricing and foreign exchange rates. |
Debtors |
Short term trade and other debtors are measured at transaction price less any impairment provision. The company provides for unused annual leave accrued by employees for services rendered in the financial year. Where the amount paid at the balance sheet date exceeds the salary cost payable for the holiday absence, a debtor has been recognised within prepayments. |
Impairment of assets |
Assets are reviewed for indication of impairment, where the estimated recoverable amount has fallen below the carrying value. In such circumstances, an impairment loss is recognised in the profit and loss account. In the event that there is a subsequent upward revision in estimated recoverable amount, the carrying value of the asset will be increased will be increased by no more than the total of impairment losses arising from prior years. The reversal of impairment losses shall also be recognised in the profit and loss account. |
Creditors |
Short term trade and other creditors are measured at transaction price. Loans are measured at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Foreign exchange |
The functional and presentation currency is UK Pounds Sterling (£). |
Transactions in currencies other than the functional currency are recognised at the spot rate of the transaction (or at a mean average rate where such a rate approximates to the spot rate applicable to the transaction). |
Monetary assets and liabilities denominated in currencies other than the functional currency are retranslated at the rate of exchange ruling at the balance sheet date. Exchange differences are recognised in the profit and loss account in the period in which they arise. |
Derivative financial instruments |
The company hedges against currency fluctuations using open forward currency contracts. Outstanding contracts are recognised at fair value on the basis of the exchange rate quoted at the balance sheet date taking account of the remaining currency and the unexpired period of the contract. Outstanding forward currency contracts are included within other debtors or other creditors as appropriate. |
Pensions |
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are recognised when incurred in the profit and loss account. |
Leasing and hire purchase commitments |
Property, plant and equipment acquired under finance leases and hire purchase contracts are capitalised in the balance sheet and depreciated over their useful lives. The related obligations, net of future finance charges are included in creditors. Lease payments are apportioned between interest charges and reduction of the lease obligation. The interest element of the rental obligations is charged to profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding. |
Rentals paid under operating leases are charged to profit and loss account on a straight line basis over the lease term. |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Current tax is recognised for the amount of corporation tax payable in respect of the current year or preceding years. |
Deferred tax is provided using the liability method to take account of material timing differences between the treatment of certain items for accounts and tax purposes. Deferred tax assets are only 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. The tax expense or income is recognised in the profit and loss account (or equity depending on the nature of the underlying transaction). Deferred tax liabilities are presented within provision for liabilities and charges and deferred tax assets within debtors. |
Current and deferred tax is provided at the rates of tax enacted (or substantively enacted) at the reporting date for either the period in which the current tax arises, or in respect of deferred tax, for the period when the timing difference is expected to reverse. |
3. | TURNOVER |
Turnover analysed by category is as follows: |
2023 | 2022 |
£ | £ |
Ribbons | 2,735,284 | 3,361,008 |
Bows | 1,969,203 | 2,221,607 |
Bindings | 202,277 | 306,467 |
4,906,764 | 5,889,082 |
Turnover is derived from the following markets: |
2023 | 2022 |
£ | £ |
United Kingdom | 3,473,042 | 4,120,014 |
Europe | 892,608 | 896,183 |
America, Australasia and others | 541,114 | 872,885 |
4,906,764 | 5,889,082 |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
4. | EMPLOYEES AND DIRECTORS |
Directors' emoluments |
The total emoluments of the directors of the company, who are also considered to be the key management personnel (including pension contribution and benefits in kind) were: |
2023 | 2022 |
£ | £ |
Emoluments | 308,081 | 328,113 |
Pension contributions | 58,569 | 51,529 |
366,650 | 379,642 |
2023 | 2022 |
Number of directors to whom retirement |
benefits are accruing under money |
purchase scheme | 3 | 4 |
The emoluments of directors disclosed above |
include the following amounts paid to the |
highest paid director | 2023 | 2022 |
£ | £ |
Emoluments | 67,366 | 79,545 |
Pension contributions | 35,124 | 29,652 |
102,490 | 109,197 |
Staff costs (Excluding directors) |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,005,280 | 1,738,806 |
Social security costs | 239,745 | 219,240 |
Pension costs | 115,257 | 110,095 |
2,360,282 | 2,068,141 |
Included in wages and salaries are redundancy related costs of £270,425 (2022: £nil). |
The average number of employees during the year was: | 2023 | 2022 |
General administration | 8 | 6 |
Sales and marketing | 10 | 10 |
Production | 67 | 68 |
85 | 84 |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
5. | OPERATING (LOSS)/PROFIT |
2023 | 2022 |
£ | £ |
This is stated after charging/(crediting): |
Operating lease rentals | 12,652 | 12,419 |
Auditors' remuneration | 10,000 | 10,000 |
Depreciation of owned fixed assets | 151,511 | 152,598 |
Depreciation of assets held under finance lease | 17,279 | 32,323 |
Loss/ (Profit) on disposal of fixed assets | 16,916 | (17,224 | ) |
Directors' emoluments (see above) | 366,650 | 379,642 |
Staff costs (see above) | 2,360,282 | 2,068,141 |
Loss on exchange | 25,496 | 531 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loans and invoicing financing | 69,326 | 32,668 |
Finance lease interest | 897 | 10,488 |
Interest on related company loan | 42,517 | (13,823 | ) |
112,740 | 89,095 |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) | ( |
) |
Tax on (loss)/profit | ( |
) |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
7. | TAXATION - continued |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Depreciation in excess of capital allowances |
Re-measurement of deferred tax balances | (6,399 | ) | (10,342 | ) |
Tax losses generated/(utilised) | 149,673 | (27,792 | ) |
Difference between chargeable gain and accounting profit | 1,567 | - |
Total tax (credit)/charge | (6,399 | ) | 3,510 |
8. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1st January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
8. | TANGIBLE FIXED ASSETS - continued |
Motor | Office |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1st January 2023 |
Additions |
Disposals | ( |
) |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
Included in cost of land and buildings is freehold land of £ 255,360 (2022 - £ 255,360 ) which is not depreciated. |
Fixed assets, included in the above, which are held under finance leases are as follows: |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1st January 2023 |
Transfer to ownership | (85,873 | ) | - | (85,873 | ) |
At 31st December 2023 |
DEPRECIATION |
At 1st January 2023 |
Charge for year |
Transfer to ownership | (30,770 | ) | - | (30,770 | ) |
At 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
9. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1st January 2023 |
and 31st December 2023 |
NET BOOK VALUE |
At 31st December 2023 |
At 31st December 2022 |
Land and buildings, which are surplus to the company's manufacturing operation, were valued by Timothy a. brown, Chartered Surveyors on 14 December, 2022 on an existing use open market basis in accordance with the Appraisal and Valuation Manual issued by the Royal Institute of Chartered Surveyors. The directors are of the opinion that there has been no diminution in the value of the property since that date. |
10. | STOCKS |
2023 | 2022 |
£ | £ |
Raw materials and consumables |
Work in progress |
Finished goods and goods for |
resale |
Stock movement is recognised in cost of sales as an expense/(income) including impairment losses or reversal of losses. |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Prepayments |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Other loans (see note 14) |
Finance leases (see note 15) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Taxation and social security | 218,881 | 195,520 |
Other creditors |
Accruals and deferred income |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
As part of its structured asset based finance arrangement, the company has access to a revolving bank loan with one of its banks, secured by a floating legal charge over assets of the company. The loan was drawn upon during the year and an amount of £nil (2022: £nil) was outstanding at the balance sheet date. |
Other loans consist of asset based finance without a repayment term secured by way of a fixed legal charge over trade debtors of £189,062 (2022: £612,839). |
The asset based finance arrangement and revolving loan are subject to a minimum period of 12 months. |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Finance leases (see note 15) |
Amounts owed to group undertakings |
H Kuny & Cie AG, the company's immediate parent undertaking, has a legal charge over the assets of the company as security for amounts advanced by way of loans to the company. The legal charge ranks second in priority to that of the bank. The loans are repayable as cash flow allows, and interest bearing at a rate of 1.75% above bank base rate ("ABR") subject to an operative cap. Given the ranking of security, this level of interest is deemed to be below market rate and as such a weighted average interest rate of 1.3 % ABR has been applied in these financial statements. |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Other loans |
15. | LEASING AGREEMENTS |
Minimum lease payments under finance leases fall due as follows: |
Finance leases |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
15. | LEASING AGREEMENTS - continued |
Minimum future operating lease payments are as follows: |
2023 | 2022 |
£ | £ |
Amount payable |
Within one year | 12,727 | 12,364 |
In the second to fifth years inclusive | 18,833 | 27,808 |
31,560 | 40,172 |
Certain motor vehicles are held under finance lease arrangements, which are secured by those related assets. The lease agreements generally include fixed payment instalments and a purchase option at the end of the lease term. |
16. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 12,985 | 19,384 |
Deferred |
tax |
£ |
Balance at 1st January 2023 |
Provided during year | ( |
) |
Balance at 31st December 2023 |
Deferred taxation is provided at 25% (2022:19%). |
The net reversal of timing differences expected to occur next year is £11,418 (2022: £71,452). This relates to reversal of existing timing differences and origination of new timing differences for accelerated capital allowances and prepaid rents. |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 3,205,000 | 3,205,000 |
18. | RESERVES |
Retained |
earnings |
£ |
At 1st January 2023 | ( |
) |
Deficit for the year | ( |
) |
At 31st December 2023 | ( |
) |
Included in retained earnings are non-distributable reserves of 78,399 relating to the revaluation of assets. |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
19. | PENSION COMMITMENTS |
Contributions in respect of a defined contribution scheme are made through a Group Personal Pension Plan arranged with Scottish Widows plc. The cost in relation to the scheme was £173,826 (2022:£ 161,624). |
20. | ULTIMATE PARENT COMPANY |
The Kuny-Stiftung (The Kuny Foundation) (incorporated in Switzerland ) is regarded by the directors as being the company's ultimate parent company. |
21. | CAPITAL COMMITMENTS |
The company had authorised & contracted commitments for plant, equipment and software of £nil (2022: £nil). Authorised but not contracted commitments were £3,393 (2022: £22,814). |
BERISFORDS LIMITED (REGISTERED NUMBER: 02707046) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST DECEMBER 2023 |
22. | RELATED PARTY DISCLOSURES |
With fellow subsidiary undertakings |
Sale of goods | 2023 | 2022 |
£ | £ |
Seidenbandweberei Sackingen GmbH | 16,346 | 17,096 |
Kuny AG | 430,372 | 357,631 |
Purchase of goods and services | 2023 | 2022 |
£ | £ |
Kuny AG | 546,584 | 646,245 |
Interest (recoverable)/payable on loans | 2023 | 2022 |
£ | £ |
H Kuny & Cie AG | 42,517 | (13,823 | ) |
Interest payable on finance lease obligations | 2023 | 2022 |
£ | £ |
Kuny AG | - | 5,038 |
Trade and other debtors: amount due from | 2023 | 2022 |
£ | £ |
Kuny AG | - | 5,401 |
Seidenbandweberei Sackingen GmbH | - | 81 |
Trade creditors: amount due to | 2023 | 2022 |
£ | £ |
Kuny AG | 211,508 | 99,392 |
Loan payable to | 2023 | 2022 |
£ | £ |
H Kuny & Cie | 1,521,708 | 876,947 |