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COMPANY REGISTRATION NUMBER: 03395567
BB (UK) Limited
Financial Statements
31 March 2024
BB (UK) Limited
Financial Statements
Year ended 31 March 2024
Contents
Page
Strategic report
1
Directors' report
3
Independent auditor's report to the members
6
Consolidated income statement
9
Consolidated statement of income and retained earnings
10
Company statement of income and retained earnings
11
Consolidated statement of financial position
12
Company statement of financial position
13
Consolidated statement of cash flows
14
Notes to the financial statements
15
BB (UK) Limited
Strategic Report
Year ended 31 March 2024
The directors hereby present their strategic report, Director's report and the audited financial statements of BB (UK) Limited for the year ended 31 March 2024. BB (UK) Ltd is a wholly owned subsidiary of Cravatex Ltd, which is a listed company in the Bombay Stock Exchange, India.
Principal activities
The principal activity of the Group during the year was that of design, manufacture, e-commerce and wholesale of "Fila" and "Sergio Tacchini" branded sportswear, casual wear and life style products consisting of footwear, apparel and accessories categories for men, women and children.
Business review and key performance indicators
The group has two product divisions, namely Lifestyle and sportswear. The directors consider that the key financial performance indicators are those that monitor the performance in respect of each of these divisions. The key performance indicators used by the business within these divisions are turnover, gross margin, season on season and year on year forward order books, debtor days, stock turnover days, sell through percentage in the newly developed product categories and the year on year growth in in each market. Even though the group's forward sales order book had been under some pressure on a year-on-year basis, the gross margin had been maintained at a reasonable level despite the adverse effects of the market conditions during the year. The continuing impact of these are yet to be seen, which will be dependent on how the economy and customers recover in post the pandemic period. All of these impacts are reflected in the group's financial statements reported hereof.
Principal risk and uncertainties
Similar to any other companies in this market sector, our group also continues to face number of risk including the currency movements and the wars in Ukraine. The Board acknowledges that there are risks that may affect the group and necessary actions have been taken to minimise or mitigate any such risk that can be either controlled or is insurable. The credit risk is mitigated by having credit insurance policies and following stringent credit control procedures. Currency rate exposures are minimised by booking forward foreign exchange contracts. Stock risk is controlled by encouraging forward orders from our customers, following careful stock purchasing policies and promptly liquidating stock. The group maintains robust quality control and perpetual checking process through its sourcing centres to minimise the risk of faulty or sub-standard products. Similar to any other companies in this market sector, our group also continues to face number of risks including the currency movements and supply chain disruptions. The Board acknowledges that there are risks that may affect the company and actions have been taken to minimise or mitigate any such risk that can be either controlled or is is insurable.
Future developments
The directors anticipate that the business environment will remain even more competitive due to the impacts of the high interest rates, high inflation, increased cost of living and the consequential fall in consumer spending. However, they believe that the group is in sound financial position and they remain confident that the group and its brands will bounce back in the foreseeable future. To revive the business directors have authorised an increased investments in the group's research and development, logistics infrastructure, E- commerce platform and export markets.
Research and development
The group has currently put in place a perpetual improvement process to undertake research and development with the view to improving the performance of its two licensed brands and to enhance its product offers and to maintain its market edge over its competition. Investing on innovation and embracing future technologies are considered by the board as paramount.
This report was approved by the board of directors on 15 May 2024 and signed on behalf of the board by:
Mr. P. Rudran
Director
Registered office:
Unit 1
Colonial Business Park
Colonial Way
Watford
Hertfordshire
WD24 4PR
BB (UK) Limited
Directors' Report
Year ended 31 March 2024
The directors present their report and the financial statements of the group for the year ended 31 March 2024 .
Principal activities
The principal activity of the company during the year was that of design, manufacture andwholesale of "Fila" and "Sergio Tacchini" branded sportswear, casual wear and lifestyle products.
Directors
The directors who served the company during the year were as follows:
Mr. N. Santhanam
Mr. P. Rudran
Mr. R. Batra
Dividends
The directors recommend payment of a dividend of £4.50 per share for the year under review. The profit after tax and dividends for the financial year will therefore be taken into the reserves.
Future developments
The future development of the group has been reported in the strategic report.
Employment of disabled persons
The group operates an equal opportunities policy. The aim of this policy is to ensure that there should be equal opportunity for all and this applies to external recruitment and internal appointments, terms of employment, conditions of service and opportunity for training and promotion regardless of age, gender, ethnic origin or disability. Disabled persons are given full and fair consideration for all types of vacancy in as much as the opportunities available are constrained by the practical limitations of the disability. Should for whatever reason, an employee of the Group become disabled whilst in employment, every step, where appropriate, will be taken to (i) assist with rehabilitation and ii) arrange suitable retraining. The Group maintains its own health, safety and environmental policies covering all aspects of its operations. Regular meetings and inspections take place to ensure all legal requirements are adhered to and that the Group is responsible for the needs of the employees and the environment.
Employee involvement
Within the bounds of commercial confidentiality, the Group endeavours to keep staff at all levels informed of matters that affect the progress of the Group and are of interest to them as employees.
Financial instruments
The period of unprecedented market pressures on consumers continues as did falling demand for the luxury and branded goods.
Continued market conditions and currency fluctuation in input costs and intense competition can adversely impact the growth and profitability as well as capability to execute long term plans.
In the current highly competitive and volatile market, the group continues to pursue strategies to explore new streams of revenue. The directors expect the environment to remain highly competitive in 2024/2025 but are confident that the group is well positioned to deal with such market risks and challenges.
Competition, market volatility, economic condition and currency fluctuations remain the principal risk and the group has implemented programs to increase efficiency in logistics and raise the standard of service in order to maintain its strong market position. Management is constantly striving to reduce base costs and improve its profit margin.
Foreign exchange exposure is a risk area with the products purchased and sold in various currencies. However, the group mitigates these risks by utilising its forward currency booking options.
Recoverability of trade debts is a risk in the current economic climate and the group constantly monitors its customers' credit worthiness and credit insures them.
Due to the straightforward nature of the business, the directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the business.
Events after the end of the reporting period
The adverse economic, social, infrastructure and financial impacts in the world and the industry are the important factors to mention as the post balance sheet events.
Disclosure of information in the strategic report
The group has chosen in accordance with s.414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 group and the company and the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent. 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
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information.
This report was approved by the board of directors on 15 May 2024 and signed on behalf of the board by:
Mr. P. Rudran
Director
Registered office:
Unit 1
Colonial Business Park
Colonial Way
Watford
Hertfordshire
WD24 4PR
BB (UK) Limited
Independent Auditor's Report to the Members of BB (UK) Limited
Year ended 31 March 2024
Opinion
We have audited the financial statements of BB (UK) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the consolidated income statement, company statement of income and retained earnings, consolidated statement of income and retained earnings, consolidated statement of financial position, company statement of financial position, consolidated statement of cash flows and the related notes, 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 group's and of the parent company's affairs as at 31 March 2024 and of the group's profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company 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, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent 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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - Enquiry of management and those charged with governance around actual and potential litigation and claims; - Performing audit work over the risk of management override of controls. including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. - Reviewing minutes of meetings of those charged with governance; - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. 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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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 auditor’s report. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 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.
Sailesh Rameshchandra Vaghjee
(Senior Statutory Auditor)
For and on behalf of
SRV Delson
Chartered Certified Accountants & Statutory Auditors
Maruti House
1st Floor
369 Station Road
Harrow
HA1 2AW
25 May 2024
BB (UK) Limited
Consolidated Income Statement
Year ended 31 March 2024
2024
2023
Note
£
£
Turnover
4
19,295,757
39,834,898
Cost of sales
13,277,078
29,058,336
-------------
-------------
Gross profit
6,018,679
10,776,562
Distribution costs
490,191
834,431
Administrative expenses
6,167,646
9,315,332
Other operating income
5
892,050
246,323
------------
-------------
Operating profit
6
252,892
873,122
Other interest receivable and similar income
10
166,755
55,321
Interest payable and similar expenses
11
21,287
------------
-------------
Profit before taxation
419,647
907,156
Tax on profit
12
144,053
3,934
---------
---------
Profit for the financial year
275,594
903,222
---------
---------
All the activities of the group are from continuing operations.
BB (UK) Limited
Consolidated Statement of Income and Retained Earnings
Year ended 31 March 2024
2024
2023
Note
£
£
Profit for the financial year and total comprehensive income
275,594
903,222
Dividends paid and payable
13
( 225,000)
( 500,000)
Retained earnings at the start of the year
7,653,201
7,249,979
------------
------------
Retained earnings at the end of the year
7,703,795
7,653,201
------------
------------
BB (UK) Limited
Company Statement of Income and Retained Earnings
Year ended 31 March 2024
2024
2023
Note
£
£
Profit for the financial year and total comprehensive income
332,461
817,153
Dividends paid and payable
13
( 225,000)
( 500,000)
Retained earnings at the start of the year
7,555,987
7,238,834
------------
------------
Retained earnings at the end of the year
7,663,448
7,555,987
------------
------------
BB (UK) Limited
Consolidated Statement of Financial Position
31 March 2024
2024
2023
Note
£
£
Fixed assets
Tangible assets
15
34,588
68,499
Current assets
Stocks
17
1,013,335
2,850,866
Debtors
18
1,812,843
3,639,259
Cash at bank and in hand
6,914,438
5,192,403
------------
-------------
9,740,616
11,682,528
Creditors: amounts falling due within one year
Trade creditors
893,843
2,205,506
Other creditors including taxation and social security
19
554,194
1,075,984
Accruals and deferred income
531,730
724,694
------------
-------------
1,979,767
4,006,184
------------
------------
Net current assets
7,760,849
7,676,344
------------
------------
Total assets less current liabilities
7,795,437
7,744,843
Provisions
20
37,085
37,085
------------
------------
Net assets
7,758,352
7,707,758
------------
------------
Capital and reserves
Called up share capital
24
50,000
50,000
Share premium account
25
4,557
4,557
Profit and loss account
25
7,703,795
7,653,201
------------
------------
Shareholders funds
7,758,352
7,707,758
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 15 May 2024 , and are signed on behalf of the board by:
Mr. P. Rudran
Director
Company registration number: 03395567
BB (UK) Limited
Company Statement of Financial Position
31 March 2024
2024
2023
Note
£
£
Fixed assets
Tangible assets
15
34,588
68,499
Investments
16
21,368
21,980
--------
--------
55,956
90,479
Current assets
Stocks
17
1,013,335
2,839,908
Debtors
18
1,819,172
3,726,866
Cash at bank and in hand
6,820,244
4,962,928
------------
-------------
9,652,751
11,529,702
Creditors: amounts falling due within one year
Trade creditors
897,077
2,202,964
Other creditors including taxation and social security
19
527,716
1,051,915
Accruals and deferred income
528,824
717,673
------------
-------------
1,953,617
3,972,552
------------
------------
Net current assets
7,699,134
7,557,150
------------
------------
Total assets less current liabilities
7,755,090
7,647,629
Provisions
20
37,085
37,085
------------
------------
Net assets
7,718,005
7,610,544
------------
------------
Capital and reserves
Called up share capital
24
50,000
50,000
Share premium account
25
4,557
4,557
Profit and loss account
25
7,663,448
7,555,987
------------
------------
Shareholders funds
7,718,005
7,610,544
------------
------------
The profit for the financial year of the parent company was £ 332,461 (2023: £ 817,153 ).
These financial statements were approved by the board of directors and authorised for issue on 15 May 2024 , and are signed on behalf of the board by:
Mr. P. Rudran
Director
Company registration number: 03395567
BB (UK) Limited
Consolidated Statement of Cash Flows
Year ended 31 March 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
275,594
903,222
Adjustments for:
Depreciation of tangible assets
52,234
113,430
Other interest receivable and similar income
( 166,755)
( 55,321)
Interest payable and similar expenses
21,287
Tax on profit
144,053
3,934
Accrued (income)/expenses
( 192,964)
104,355
Changes in:
Stocks
1,837,531
1,523,558
Trade and other debtors
1,826,416
2,175,380
Trade and other creditors
( 1,875,603)
( 2,375,552)
------------
------------
Cash generated from operations
1,900,506
2,414,293
Interest paid
( 21,287)
Interest received
166,755
55,321
Tax paid
( 101,903)
( 20,000)
------------
------------
Net cash from operating activities
1,965,358
2,428,327
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 18,323)
( 22,667)
------------
------------
Net cash used in investing activities
( 18,323)
( 22,667)
------------
------------
Cash flows from financing activities
Dividends paid
( 225,000)
( 500,000)
------------
------------
Net cash used in financing activities
( 225,000)
( 500,000)
------------
------------
Net increase in cash and cash equivalents
1,722,035
1,905,660
Cash and cash equivalents at beginning of year
5,192,403
3,286,743
------------
------------
Cash and cash equivalents at end of year
6,914,438
5,192,403
------------
------------
BB (UK) Limited
Notes to the Financial Statements
Year ended 31 March 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit 1, Colonial Business Park, Colonial Way, Watford, Hertfordshire, WD24 4PR.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
In preparing the financial statements the directors have taken into account all the information that could reasonably be expected to be available together with their continued support The company is dependent on the availability of orders and the current conditions of Covid 19 are having significant impact upon the orders and the conditions remain challenging. Based on the results of the company the board consider that the company has sufficient confirmed future funds to maintain its profitability. The directors have reasonable expectations and adequate resources that the company will be able to continue in operations and meet its liabilities as they fall due. On this basis the financial statements have been prepared by using the going concern basis of accounting because there are no material uncertainties related to events and conditions that may cast significant doubt about the ability of the company to continue as a going concern.
Disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
Consolidation
The financial statements consolidate the financial statements of BB (UK) Limited and all of its subsidiary undertakings.
The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Patents, trademarks and licences
-
Straight line basis over 5 years
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures and fittings
-
Straight line over a period of 3 and 5 years
Motor vehicles
-
Straight line over a period of 3 years
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Investments in associates
Investments in associates are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate.
Investments in joint ventures
Investments in joint ventures are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the joint venture.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
The company enters into foreign currency contracts to mitigate the exchange rate risks. The forward currency contracts are measured at fair value using forward exchange rates.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
19,295,757
39,834,898
-------------
-------------
The whole of the turnover is attributable to the principal activity of the group
5. Other operating income
2024
2023
£
£
Other operating income
892,050
246,323
---------
---------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
52,234
113,430
Impairment of trade debtors
9,309
(8,097)
Foreign exchange differences
1,949
( 6,920)
--------
---------
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
19,625
24,625
--------
--------
8. Staff costs
The average number of persons employed by the group during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
6
7
Distribution staff
10
14
Administrative staff
11
13
Design and Development
23
24
----
----
50
58
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
2,168,405
3,595,754
Social security costs
261,773
419,740
Other pension costs
224,581
187,658
------------
------------
2,654,759
4,203,152
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
265,250
1,015,250
Company contributions to defined contribution pension plans
10,000
4,000
---------
------------
275,250
1,019,250
---------
------------
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
275,250
1,015,250
---------
------------
10. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
166,755
55,321
---------
--------
11. Interest payable and similar expenses
2024
2023
£
£
Other interest payable and similar charges
21,287
----
--------
12. Tax on profit
Major components of tax expense/(income)
2024
2023
£
£
Current tax:
UK current tax expense/(income)
144,053
3,934
Tax on profit
144,053
3,934
---------
-------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is the same as (2023: lower than) the standard rate of corporation tax in the UK of 19 % (2023: 19 %).
2024
2023
£
£
Profit on ordinary activities before taxation
419,647
907,156
---------
---------
Profit on ordinary activities by rate of tax
144,053
200,046
Adjustment to tax charge in respect of prior periods
( 203,980)
---------
---------
Tax on profit
144,053
(3,934)
---------
---------
13. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2024
2023
£
£
Dividend paid
225,000
500,000
---------
---------
14. Intangible assets
Group and company
Patents, trademarks and licences
£
Cost
At 1 April 2023 and 31 March 2024
24,727
--------
Amortisation
At 1 April 2023 and 31 March 2024
24,727
--------
Carrying amount
At 1 April 2023 and 31 March 2024
--------
At 31 March 2023
--------
15. Tangible assets
Group and company
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 April 2023
877,753
7,230
884,983
Additions
18,323
18,323
---------
-------
---------
At 31 March 2024
896,076
7,230
903,306
---------
-------
---------
Depreciation
At 1 April 2023
810,777
5,707
816,484
Charge for the year
50,711
1,523
52,234
---------
-------
---------
At 31 March 2024
861,488
7,230
868,718
---------
-------
---------
Carrying amount
At 31 March 2024
34,588
34,588
---------
-------
---------
At 31 March 2023
66,976
1,523
68,499
---------
-------
---------
16. Investments
The group has no investments.
Company
Shares in group undertakings
£
Cost
At 1 April 2023
21,980
Revaluations
( 612)
--------
At 31 March 2024
21,368
--------
Impairment
At 1 April 2023 and 31 March 2024
--------
Carrying amount
At 31 March 2024
21,368
--------
At 31 March 2023
21,980
--------
Subsidiaries, associates and other investments
Details of the investments in which the parent company has an interest of 20% or more are as follows:
Registered office
Class of share
Percentage of shares held
Subsidiary undertakings
BB Europe GmbH
Eschweiler
Ordinary Shares
100
Geschaftsanschrift
Schnellengasse 2,55249 Eschweiler
17. Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,013,335
2,850,866
1,013,335
2,839,908
------------
------------
------------
------------
18. Debtors
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade debtors
1,312,987
2,636,906
1,324,952
2,636,815
Amounts owed by group undertakings
92,016
Prepayments and accrued income
322,568
366,438
322,568
366,438
Other debtors
177,288
635,915
171,652
631,597
------------
------------
------------
------------
1,812,843
3,639,259
1,819,172
3,726,866
------------
------------
------------
------------
19. Other creditors including taxation and social security falling
due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Corporation tax
199,323
157,173
172,564
133,104
Social security and other taxes
141,912
554,162
142,193
554,162
Other creditors
212,959
364,649
212,959
364,649
---------
------------
---------
------------
554,194
1,075,984
527,716
1,051,915
---------
------------
---------
------------
20. Provisions
Group and company
Deferred tax (note 21)
£
At 1 April 2023 and 31 March 2024
37,085
--------
21. Deferred tax
The deferred tax included in the statement of financial position is as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Included in provisions (note 20)
37,085
37,085
37,085
37,085
--------
--------
--------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
Group
Company
2024
2023
2024
2023
£
£
£
£
Accelerated capital allowances
37,085
37,085
37,085
37,085
Provisions
( 37,085)
( 37,085)
( 37,085)
( 37,085)
--------
--------
--------
--------
--------
--------
--------
--------
22. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 224,581 (2023: £ 187,658 ).
23. Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not at market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
24. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
50,000
50,000
50,000
50,000
--------
--------
--------
--------
Called up share capital represents the nominal value of share that have been issued. The share premium reserve contains the premium arising on issue of equity shares.
25. Reserves
The share premium and profit & loss reserves include all current and prior retained profits and losses.
26. Analysis of changes in net debt
At 1 Apr 2023
Cash flows
At 31 Mar 2024
£
£
£
Cash at bank and in hand
5,192,403
1,722,035
6,914,438
------------
------------
------------
27. Related party transactions
Group
During the year the group entered into the following transactions with related parties:
Transaction value
Balance owed by/(owed to)
2024
2023
2024
2023
£
£
£
£
Rudy & Sons Limited.
150,000
150,000
---------
---------
----
----
During the year teh company paid feed, expenses and subsistance of £150,000 to Rudy & Sons Ltd, a company in which P. Rudran is also a director.
BB (UK) Limited
Notes to the Financial Statements (continued)
Year ended 31 March 2024
27. Related party transactions (continued)
Company
During the year the company entered into the following transactions with related parties:
Transaction value
Balance owed by/(owed to)
2024
2023
2024
2023
£
£
£
£
Rudy & Sons Limited.
150,000
150,000
---------
---------
----
----
During the year the company paid fee, expenses and subsistence of £150,000 to Rudy & Sons Ltd, a company in which P. Rudran is also a director. All transactions have been carried out on an arm's length basis and ordinary course of business.
28. Controlling party
The company is a wholly owned subsidiary of Cravatex Limited, which is a listed company in the Bombay Stock Exchange. The ultimate controlling interest is held by Cravatex Limited.