Company registration number 02493093 (England and Wales)
BID GROUP LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
BID GROUP LTD
COMPANY INFORMATION
Directors
Mr P J Thompson
Mr M Calderbank
Mrs A Thompson
Mr N Rothwell
Mr S Harrison
Secretary
Mrs A Thompson
Company number
02493093
Registered office
Unit C, Elland Close
Wingates Industrial Park
Westhoughton
Bolton
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
Bankers
Lloyds Bank Plc
9-13 Hotel Street
Bolton
BID GROUP LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
BID GROUP LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
The directors present the strategic report for the year ended 30 April 2024.
Principal Activities
The principal activities of the company have not changed and remain the service, repair, manufacture and installation of a wide range of industrial doors, high speed doors, loading bay equipment, gates, barriers, personnel and automatic doors.
Review of the business
The key performance indicators for the company are as follows:
2024
2023
£
£
Turnover
19,419,101
18,354,647
Gross profit
7,595,716
6,883,227
Gross profit margin
39.11%
37.50%
Objectives of the company
As one of the main operators in the UK marketplace we aim to fully understand our evolving marketplace and our customer’s needs & expectations, then seek to continuously improve our products and service offering to enhance customer satisfaction.
Performance Measurement
Our financial results for year ended 30 April 2024 are set out in the profit & loss account on page 8 and are largely in line with expectation.
We compile a range of financial and non-financial Key Performance Indicators (KPI’s) to monitor and measure performance, these are reported at board and senior levels of management within the company, these include turnover, contribution, profit, customer service, health & safety and employee related KPI’s.
Turnover and profit are our principal key performance indicators and having reviewed the financial performance of the business the directors consider the results to be in line with expectation. Turnover increased by £1,065k on last year, mainly as a result of inflationary led price increases, coupled with a large installation project. After dropping to 37.5% last year GP% has recovered back to 39.1% for the 23/24 financial year.
Health, Safety, and the Environment (HSQE)
BID Group remain committed to HSQE and the welfare of our employees, employing a Compliance Director and Health & Safety Manager. We are proud to remain triple ISO accredited, holding ISO9001, ISO14001 and OHSAS18001. In addition we also hold CHAS, Constructionline, SafeContractor Gold and Achilles accreditations.
Principal risks and uncertainties
The principle risks and uncertainties facing the company are as follows:
Operational Risk
The company operates in a marketplace with relatively low barriers to entry and many competitors, we therefore strive to offer industry leading supply and fix times in the hope we exceed our customer’s expectations and differentiate ourselves against competitors.
Liquidity Risk
The fall out from the Ukraine war and high inflation over the last few years presents the increased risk of company failures, more suppliers require up-front payments and customers are asking for longer to pay. To address this we employ robust credit control processes, monitoring our customers credit ratings - we also continue to maintain a strong cash position to support current work in progress requirements.
- 1 -
BID GROUP LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
Looking Forward
The forward operating environment remains challenging, with continuing tensions abroad and a new government whose policies are yet to be announced. In-spite of this, we retain a strong forward order book, and have a diversified customer base. In April 2024 we opened our new production facility in Westhoughton to improve capacity and aid operational efficiency. As such we remain confident in our continued success.
Mr P J Thompson
Director
30 July 2024
- 2 -
BID GROUP LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
The directors present their annual report and financial statements for the year ended 30 April 2024.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £506,167. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P J Thompson
Mr M Calderbank
Mrs A Thompson
Mr N Rothwell
Mr S Harrison
Auditor
The auditor, Barlow Andrews LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr P J Thompson
Director
30 July 2024
- 3 -
BID GROUP LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
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:
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.
- 4 -
BID GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BID GROUP LTD
Opinion
- 5 -
We have audited the financial statements of BID Group Ltd (the 'company') for the year ended 30 April 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 30 April 2024 and of its profit 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.
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.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year 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.
BID GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BID GROUP LTD (CONTINUED)
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 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, 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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;
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 taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management ; 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.
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BID GROUP LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BID GROUP LTD (CONTINUED)
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries 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; and
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required 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 error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Adam Woodward
Senior Statutory Auditor
For and on behalf of Barlow Andrews LLP
30 July 2024
Chartered Accountants
Statutory Auditor
Carlyle House
78 Chorley New Road
Bolton
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BID GROUP LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
2024
2023
Notes
£
£
Turnover
3
19,419,101
18,354,647
Cost of sales
(11,823,385)
(11,471,420)
Gross profit
7,595,716
6,883,227
Administrative expenses
(6,104,913)
(5,433,535)
Other operating income
33,475
12,233
Operating profit
4
1,524,278
1,461,925
Interest receivable and similar income
7
88,280
32,863
Interest payable and similar expenses
8
(147,397)
(87,138)
Profit before taxation
1,465,161
1,407,650
Tax on profit
9
(411,567)
(259,293)
Profit for the financial year
1,053,594
1,148,357
The profit and loss has been prepared on the basis that all operations are continuing operations.
There is no other comprehensive income in the year. The total comprehensive income is the profit for the financial year shown above.
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BID GROUP LTD
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,671,504
2,190,468
Current assets
Stocks
14
1,946,460
1,381,348
Debtors
15
4,108,693
4,302,013
Cash at bank and in hand
3,744,626
3,453,947
9,799,779
9,137,308
Creditors: amounts falling due within one year
16
(5,343,524)
(4,805,079)
Net current assets
4,456,255
4,332,229
Total assets less current liabilities
7,127,759
6,522,697
Creditors: amounts falling due after more than one year
17
(1,091,287)
(1,153,396)
Provisions for liabilities
Deferred tax liability
20
(611,563)
(491,819)
(611,563)
(491,819)
Net assets
5,424,909
4,877,482
Capital and reserves
Called up share capital
22
31,002
31,002
Profit and loss reserves
5,393,907
4,846,480
Total equity
5,424,909
4,877,482
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 30 July 2024 and are signed on its behalf by:
Mr P J Thompson
Director
Company registration number 02493093 (England and Wales)
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BID GROUP LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
31,002
4,149,363
4,180,365
Year ended 30 April 2023:
Profit and total comprehensive income
-
1,148,357
1,148,357
Dividends
10
-
(451,240)
(451,240)
Balance at 30 April 2023
31,002
4,846,480
4,877,482
Year ended 30 April 2024:
Profit and total comprehensive income
-
1,053,594
1,053,594
Dividends
10
-
(506,167)
(506,167)
Balance at 30 April 2024
31,002
5,393,907
5,424,909
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BID GROUP LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,924,241
1,828,683
Interest paid
(147,397)
(87,138)
Income taxes paid
(89,449)
(205,864)
Net cash inflow from operating activities
1,687,395
1,535,681
Investing activities
Purchase of tangible fixed assets
(481,660)
(164,380)
Proceeds on disposal of tangible fixed assets
297,360
331,497
Interest received
88,280
32,863
Net cash (used in)/generated from investing activities
(96,020)
199,980
Financing activities
Repayment of bank loans
(100,000)
(100,000)
Payment of finance leases obligations
(694,529)
(558,397)
Dividends paid
(506,167)
(451,240)
Net cash used in financing activities
(1,300,696)
(1,109,637)
Net increase in cash and cash equivalents
290,679
626,024
Cash and cash equivalents at beginning of year
3,453,947
2,827,923
Cash and cash equivalents at end of year
3,744,626
3,453,947
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BID GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
Company information
BID Group Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Unit C, Elland Close, Wingates Industrial Park, Westhoughton, Bolton.
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 on the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 402 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
The company has a subsidiary, Lowland Doors Ltd, which was dormant in the current and prior year.
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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
- 12 -
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts and settlement discounts.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of installation and maintenance services are recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is five years.
BID GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Property improvements
10% straight line
Tools, plant and machinery
25% straight line
Fixtures, fittings and equipment
10% straight line
Computer equipment
25% straight line
Motor vehicles
20% - 25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Stocks
- 13 -
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.9
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. Financial assets classified as receivable within one year are not amortised.
BID GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
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.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
1.11
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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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BID GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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 the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the 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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock impairment
The directors have reviewed the items included in stock at year end and have made a provision against the total stock balance for items where the estimated sales price less costs to sell is lower than the cost incurred to bring the items into stock. At year end, the provision had a carrying value of £258,972 (2023: £255,018).
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BID GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Supply & installation of industrial doors
19,419,101
18,354,647
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
19,419,101
18,354,647
2024
2023
£
£
Other revenue
Interest income
88,280
32,863
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
826
944
Fees payable to the company's auditor for the audit of the company's financial statements
16,600
12,250
Depreciation of owned tangible fixed assets
196,204
327,929
Depreciation of tangible fixed assets held under finance leases
524,549
312,037
Profit on disposal of tangible fixed assets
(156,860)
(231,370)
Operating lease charges
429,879
225,030
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration, office and production staff
70
72
Site based staff
118
111
Total
188
183
- 16 -
BID GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
5
Employees
(Continued)
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
6,706,015
5,998,398
Social security costs
713,208
624,107
Pension costs
320,189
250,191
7,739,412
6,872,696
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
112,070
215,547
Company pension contributions to defined contribution schemes
45,727
36,692
157,797
252,239
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023: 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
n/a
71,422
Company pension contributions to defined contribution schemes
n/a
6,566
As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.
The only remuneration of key management personnel is that of the directors.
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
88,280
32,863
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
88,280
32,863
- 17 -
BID GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
17,341
14,350
Other finance costs:
Interest on finance leases and hire purchase contracts
98,516
49,250
Other interest
31,540
23,538
147,397
87,138
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
285,372
82,998
Adjustments in respect of prior periods
6,451
Total current tax
291,823
82,998
Deferred tax
Origination and reversal of timing differences
119,744
176,295
Total tax charge
411,567
259,293
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:
2024
2023
£
£
Profit before taxation
1,465,161
1,407,650
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.50%)
366,290
274,492
Tax effect of expenses that are not deductible in determining taxable profit
15,836
12,435
Permanent capital allowances in excess of depreciation
20,021
(27,634)
Under/(over) provided in prior years
6,451
Movements in provisions
2,969
Taxation charge for the year
411,567
259,293
The tax rate used is the average rate over the financial year.
- 18 -
BID GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
Dividends
2024
2023
£
£
Interim paid
506,167
451,240
11
Intangible fixed assets
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
86,313
Amortisation and impairment
At 1 May 2023 and 30 April 2024
86,313
Carrying amount
At 30 April 2024
At 30 April 2023
12
Tangible fixed assets
Property improvements
Tools, plant and machinery
Fixtures, fittings and equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 May 2023
382,084
617,452
383,078
386,074
2,734,622
4,503,310
Additions
53,063
180,568
189,070
10,267
909,321
1,342,289
Disposals
(6,000)
(481,198)
(487,198)
At 30 April 2024
435,147
792,020
572,148
396,341
3,162,745
5,358,401
Depreciation and impairment
At 1 May 2023
266,304
495,775
205,172
369,683
975,908
2,312,842
Depreciation charged in the year
27,768
73,870
32,597
15,654
570,864
720,753
Eliminated in respect of disposals
(6,000)
(340,698)
(346,698)
At 30 April 2024
294,072
563,645
237,769
385,337
1,206,074
2,686,897
Carrying amount
At 30 April 2024
141,075
228,375
334,379
11,004
1,956,671
2,671,504
At 30 April 2023
115,780
121,677
177,906
16,391
1,758,714
2,190,468
- 19 -
BID GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
12
Tangible fixed assets
(Continued)
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Tools, plant and machinery
20,285
30,869
Motor vehicles
1,901,631
1,619,814
1,921,916
1,650,683
13
Subsidiaries
These financial statements are separate company financial statements for BID Group Ltd.
Details of the company's subsidiaries at 30 April 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Lowland Doors Ltd
Unit C Elland Close, Wingates Industrial Park, Westhoughton, Bolton
Non-trading
Ordinary
100
14
Stocks
2024
2023
£
£
Work in progress
729,133
428,259
Finished goods and goods for resale
1,217,327
953,089
1,946,460
1,381,348
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,545,452
3,759,556
Other debtors
203,472
260,648
Prepayments and accrued income
359,769
281,809
4,108,693
4,302,013
- 20 -
BID GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
100,000
100,000
Obligations under finance leases
19
593,543
465,334
Trade creditors
1,958,025
2,022,905
Corporation tax
285,372
82,998
Other taxation and social security
678,041
674,686
Other creditors
639,506
447,901
Accruals and deferred income
1,089,037
1,011,255
5,343,524
4,805,079
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
108,334
208,334
Obligations under finance leases
19
982,953
945,062
1,091,287
1,153,396
The finance leases are secured on the assets purchased under the lease agreements.
18
Loans and overdrafts
2024
2023
£
£
Bank loans
208,334
308,334
Payable within one year
100,000
100,000
Payable after one year
108,334
208,334
The loan is secured by an unlimited debenture dated 2 January 2019 incorporating a fixed and floating charge.
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
593,543
465,334
In two to five years
982,953
945,062
1,576,496
1,410,396
- 21 -
BID GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
19
Finance lease obligations
(Continued)
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
20
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
2024
2023
Balances:
£
£
Accelerated capital allowances
611,563
491,819
2024
Movements in the year:
£
Liability at 1 May 2023
491,819
Charge to profit or loss
119,744
Liability at 30 April 2024
611,563
The deferred tax liability set out above is expected to reverse within the next five years and relates to accelerated capital allowances that are expected to mature within the same period.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
320,189
250,191
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
30,000
30,000
30,000
30,000
Ordinary B shares of £1 each
1,000
1,000
1,000
1,000
Ordinary C shares of £1 each
2
2
2
2
31,002
31,002
31,002
31,002
- 22 -
BID GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
22
Share capital
(Continued)
The holders of Ordinary A shares are entitled to voting rights only.
The holders of B and C ordinary shares are entitled to receive dividends and share in any capital distribution on winding up or dissolution of the company. They are not entitled to any voting rights.
23
Operating lease commitments
Lessee
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:
2024
2023
£
£
Within one year
525,180
417,006
Between two and five years
1,208,978
1,091,314
In over five years
640,000
800,000
2,374,158
2,308,320
24
Related party transactions
During the year, BID Group Ltd made purchases of £960,110 (2023: £833,475) and sales of £10,392 (2023: £10,399) with companies related via common directorships. The entity owed £223,509 (2023: £261,884) to related parties at the year end in relation to these transactions, included in trade creditors. Related parties owed £1,567 (2023: £408) to the entity in relation to these transactions, included in trade debtors.
Rent of £106,917 (2023: £75,000) was paid to a pension fund, of which the directors of BID Group Ltd are trustees.
During an earlier year, a loan of £230,000 was made to a company associated via joint control. £170,000 of this loan was still outstanding at the year end. No interest is being charged on the loan and there is no fixed date for repayment.
25
Directors' transactions
Dividends totalling £506,167 (2023: £451,240) were paid in the year in respect of shares held by the company's directors.
26
Ultimate controlling party
BID Group Ltd is under the ultimate control of Mr P J Thompson.
- 23 -
BID GROUP LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
27
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,053,594
1,148,357
Adjustments for:
Taxation charged
411,567
259,293
Finance costs
147,397
87,138
Investment income
(88,280)
(32,863)
Gain on disposal of tangible fixed assets
(156,860)
(231,370)
Depreciation and impairment of tangible fixed assets
720,753
639,966
Movements in working capital:
Increase in stocks
(565,112)
(83,699)
Decrease/(increase) in debtors
193,320
(112,631)
Increase in creditors
207,862
154,492
Cash generated from operations
1,924,241
1,828,683
28
Analysis of changes in net funds
1 May 2023
Cash flows
New finance leases
30 April 2024
£
£
£
£
Cash at bank and in hand
3,453,947
290,679
-
3,744,626
Borrowings excluding overdrafts
(308,334)
100,000
-
(208,334)
Obligations under finance leases
(1,410,396)
694,529
(860,629)
(1,576,496)
1,735,217
1,085,208
(860,629)
1,959,796
- 24 -
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