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Registered number: 05355007









BEC (LONDON) LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
BEC (LONDON) LIMITED
 
 
COMPANY INFORMATION


Directors
B E Kemp 
S L Damney 
L T Galea 




Secretary
S L Damney



Registered number
05355007



Registered office
11 Thames Road
Barking

Essex

IG11 0HG




Independent auditor
Barnes Roffe LLP

Chartered Accountants

Statutory Auditor

Leytonstone House

Leytonstone

London E11 1GA




Bankers
Barclays Bank Plc
1 - 2 Trinity Way

Chingford

London

E4 8US





 
BEC (LONDON) LIMITED
 

CONTENTS



Page
Group strategic report
 
1
Directors' report
 
2 - 3
Independent auditor's report
 
4 - 7
Consolidated profit and loss account
 
8
Consolidated statement of comprehensive income
 
9
Consolidated balance sheet
 
10
Company balance sheet
 
11
Consolidated statement of changes in equity
 
12
Company statement of changes in equity
 
13
Consolidated statement of cash flows
 
14 - 15
Notes to the financial statements
 
16 - 36


 
BEC (LONDON) LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report for the period:

Business review
 
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and is written in the context of the risks and uncertainties we face.
The directors are pleased with the results for the year and to report a profit after tax of £968,587 
(2022 - £1,712,564).

Principal risks and uncertainties
 
The business environment in which we operate continues to be challenging. However, the group continues to provide a mixture of repair, new supply and on-site services to manage the risk.
The defined benefit pension scheme valuation reported a small increase in scheme liabilities, mainly due to underlying valuation assumptions. The group continues to fund the scheme in accordance with a recovery plan.

Financial key performance indicators
 
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover which increased by 3.6% during the year, gross profit margin, being of 44.5% (2022 – 45.9%). The resultant operating profit was £1,289,164 (2022 - £2,195,023)

Other key performance indicators
 
Liquidity and cash flow risk are managed through agreeing appropriate payment terms with customers and suppliers. The group manages financial risk by ensuring sufficient liquidity is available to meet foreseeable needs with short-term flexibility provided by a sales finance facility.
The group's principal financial assets are trade debtors for which credit risk is managed by setting limits for customers based on a combination of payment history and reputation. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history and to ensure sales finance facility covenants are met.
Future Developments
The directors continue to ensure that the highest level of service is provided to their customers and the directors expect the continued profit trend to continue for the subsequent year.


This report was approved by the board on 1 August 2024 and signed on its behalf.



B E Kemp
Director

Page 1

 
BEC (LONDON) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

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

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


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

make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the company during the year was that of a holding company.
The principal activity of the wholly owned subsidiary, Browning's Electric Company Limited, was that of electrical motor repairs and mechanical engineering.
The principal activity of the subsidiary, Browning's Employee Services LLP, was the provision of staff to Browning's Electric Company Limited. 

Results and dividends

The profit for the year, after taxation, amounted to £968,587 (2022 - £1,712,564).

The directors do not recommend payment of a final dividend (2022 - Nil).

Directors

The directors who served during the year were:

B E Kemp 
S L Damney 
L T Galea 

Page 2

 
BEC (LONDON) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Disclosure of information to auditor

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

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

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditor

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

This report was approved by the board on 1 August 2024 and signed on its behalf.
 





B E Kemp
Director

Page 3

 
BEC (LONDON) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BEC (LONDON) LIMITED
 

Opinion


We have audited the financial statements of BEC (London) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Group Profit and loss account, the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's 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.

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

Conclusions relating to going concern


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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.

Page 4

 
BEC (LONDON) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BEC (LONDON) LIMITED (CONTINUED)


Other information


The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statementsour 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.

Opinion on other matters prescribed by the Companies Act 2006
 

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

the information given in the Group 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 Group 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 Group 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 set out on page 2, 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.

Page 5

 
BEC (LONDON) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BEC (LONDON) LIMITED (CONTINUED)


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 Group 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:

In identifying and assessing risks of material misstatement in respect of irregularities we considered the
following:
Obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the group and parent company operates in and how the group and parent company are complying with the legal and regulatory frameworks;
Enquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; and
Discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
 
All relevant laws and regulations identified at a Group level and areas susceptible to fraud that could have a material effect on the financial statements were communicated. Any instances of non-compliance with laws and regulations identified were considered in our audit approach.
 
The most significant laws and regulations were determined as follows:
UK GAAP FRS 102 and Companies Act; 
Tax compliance regulations. 
 
Additional audit procedures performed by the audit engagement team included:
Review of the financial statement disclosures and testing to supporting documentation; 
Completion of disclosure checklists to identify areas of non-compliance.
 
The areas that we identified as being susceptible to material misstatement due to fraud were:
Revenue Recognition; 
Management Override.
 
Audit procedures in response to the identified areas above:
Obtaining an understanding of the processes and controls around revenue recognition;
Substantively testing revenue via various testing including transactional, cut off and sequencing;
Evaluation of the appropriateness of the accounting policies;
Testing the appropriateness of journal entries and other adjustments;
Assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. 

Page 6

 
BEC (LONDON) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BEC (LONDON) LIMITED (CONTINUED)


We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team
members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout
the audit.

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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.




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

15 August 2024
Page 7

 
BEC (LONDON) LIMITED
 
 
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
11,484,612
11,083,331

Cost of sales
  
(6,373,684)
(5,993,707)

Gross profit
  
5,110,928
5,089,624

Distribution costs
  
(719,831)
(753,984)

Administrative expenses
  
(3,101,933)
(2,168,781)

Other operating income
 5 
-
28,164

Operating profit
 6 
1,289,164
2,195,023

Interest receivable and similar income
 9 
14,932
5,026

Interest payable and similar expenses
 10 
(27,649)
(28,418)

Other finance income
  
(68,000)
(66,000)

Profit before tax
  
1,208,447
2,105,631

Tax on profit
 12 
(239,860)
(393,067)

Profit for the financial year
  
968,587
1,712,564

Profit for the year attributable to:
  

Owners of the parent
  
968,587
1,712,564

The notes on pages 16 to 36 form part of these financial statements.

Page 8

 
BEC (LONDON) LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£


Profit for the financial year

  

968,587
1,712,564

Other comprehensive income
  


Actuarial gain on defined benefit schemes
  
17,000
1,880,000

Movement on deferred tax relating to pension gains
  
(4,250)
(357,200)

Total comprehensive income for the year
  
981,337
3,235,364

Profit for the year attributable to:
  


Owners of the parent Company
  
968,587
1,712,564

Total comprehensive income attributable to:
  


Owners of the parent Company
  
981,337
3,235,364

The notes on pages 16 to 36 form part of these financial statements.

Page 9

 
BEC (LONDON) LIMITED
REGISTERED NUMBER: 05355007

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
67,357
114,898

Tangible assets
 15 
3,489,849
3,583,019

  
3,557,206
3,697,917

Current assets
  

Stocks
 17 
290,551
462,783

Debtors: amounts falling due within one year
 18 
2,872,814
2,621,909

Cash at bank and in hand
 19 
1,396,039
1,435,899

  
4,559,404
4,520,591

Creditors: amounts falling due within one year
 20 
(2,268,343)
(1,864,683)

Net current assets
  
 
 
2,291,061
 
 
2,655,908

Net assets excluding pension liability
  
5,848,267
6,353,825

Pension liability
  
(1,151,000)
(1,430,000)

Net assets
  
4,697,267
4,923,825


Capital and reserves
  

Called up share capital 
 22 
1,192
1,192

Share premium account
 23 
98,808
98,808

Revaluation reserve
 23 
1,401,229
1,401,229

Capital redemption reserve
 23 
820
820

Profit and loss account
 23 
3,195,218
3,421,776

Equity attributable to owners of the parent Company
  
4,697,267
4,923,825


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 1 August 2024.




B E Kemp
L T Galea
Director
Director

The notes on pages 16 to 36 form part of these financial statements.

Page 10

 
BEC (LONDON) LIMITED
REGISTERED NUMBER: 05355007

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 16 
1,532,725
1,532,725

Current assets
  

Debtors: amounts falling due within one year
 18 
26,443
254,996

Cash at bank and in hand
 19 
60
60

  
26,503
255,056

Creditors: amounts falling due within one year
 20 
(930,019)
(1,158,572)

Net current liabilities
  
 
 
(903,516)
 
 
(903,516)

  

  

Net assets
  
629,209
629,209


Capital and reserves
  

Called up share capital 
 22 
1,192
1,192

Share premium account
 23 
98,808
98,808

Capital redemption reserve
 23 
820
820

Profit and loss account brought forward
  
528,389
528,419

Profit for the year
  
1,207,895
1,188,872

Dividends

 13 

(1,207,895)
(1,188,902)

Profit and loss account carried forward
  
528,389
528,389

  
629,209
629,209


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 1 August 2024.




B E Kemp
L T Galea
Director
Director

The notes on pages 16 to 36 form part of these financial statements.

Page 11

 
BEC (LONDON) LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


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

£
£
£
£
£
£


At 1 January 2022
1,192
98,808
820
1,401,229
1,375,314
2,877,363


Comprehensive income for the year

Profit for the year
-
-
-
-
1,712,564
1,712,564

Actuarial gains on pension scheme
-
-
-
-
1,880,000
1,880,000

Deferred tax movements
-
-
-
-
(357,200)
(357,200)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
-
(1,188,902)
(1,188,902)



At 1 January 2023
1,192
98,808
820
1,401,229
3,421,776
4,923,825


Comprehensive income for the year

Profit for the year
-
-
-
-
968,587
968,587

Actuarial gains on pension scheme
-
-
-
-
17,000
17,000

Deferred tax movements
-
-
-
-
(4,250)
(4,250)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
-
(1,207,895)
(1,207,895)


At 31 December 2023
1,192
98,808
820
1,401,229
3,195,218
4,697,267


The notes on pages 16 to 36 form part of these financial statements.

Page 12

 
BEC (LONDON) LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


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

£
£
£
£
£


At 1 January 2022
1,192
98,808
820
528,419
629,239


Comprehensive income for the year

Profit for the year
-
-
-
1,188,872
1,188,872


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(1,188,902)
(1,188,902)



At 1 January 2023
1,192
98,808
820
528,389
629,209


Comprehensive income for the year

Profit for the year
-
-
-
1,207,895
1,207,895


Contributions by and distributions to owners

Dividends: Equity capital
-
-
-
(1,207,895)
(1,207,895)


At 31 December 2023
1,192
98,808
820
528,389
629,209


The notes on pages 16 to 36 form part of these financial statements.



Page 13

 
BEC (LONDON) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
968,587
1,712,564

Adjustments for:

Amortisation of intangible assets
47,541
47,541

Depreciation of tangible assets
114,215
68,709

Loss on disposal of tangible assets
(1,000)
-

Interest paid
27,649
28,418

Interest received
(14,932)
(5,026)

Taxation charge
239,860
393,067

Decrease/(increase) in stocks
172,232
(27,525)

Decrease/(increase) in debtors
4,389
(563,053)

Increase in creditors
461,693
93,426

(Decrease) in net pension liabilities
(262,000)
(174,000)

Corporation tax (paid)
(557,437)
(579,805)

Net cash generated from operating activities

1,200,797
994,316


Cash flows from investing activities

Purchase of tangible fixed assets
(21,045)
(1,525,749)

Sale of tangible fixed assets
1,000
-

Interest received
14,932
5,026

HP interest paid
-
(386)

Net cash from investing activities

(5,113)
(1,521,109)
Page 14

 
BEC (LONDON) LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash flows from financing activities

Repayment of/new finance leases
-
(3,174)

Dividends paid
(1,207,895)
(1,188,902)

Interest paid
(27,649)
(28,032)

Net cash used in financing activities
(1,235,544)
(1,220,108)

Net (decrease) in cash and cash equivalents
(39,860)
(1,746,901)

Cash and cash equivalents at beginning of year
1,435,899
3,182,800

Cash and cash equivalents at the end of year
1,396,039
1,435,899


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,396,039
1,435,899


The notes on pages 16 to 36 form part of these financial statements.

Page 15

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

BEC (London) Limited ("the Company") is a Company limited by shares, incorporated in England and Wales. Its registered office is 11 Thames Road, Barking, Essex, IG11 0HG.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 16

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Revenue is recognised on delivery. 

  
2.4
Intangible assets

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the profit and loss account over its useful economic life.
 

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.7

Interest income

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

Page 17

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 18

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

Defined benefit pension plan

The Group operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the Balance sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS102 fair value hierarchy and in accordance with the Group's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:

a) the increase in net pension benefit liability arising from employee service during the period; and

b) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.



Page 19

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following annual basis:.

Depreciation is provided on the following basis:

Freehold property
-
2% straight line
Plant and machinery
-
10% reducing balance
Motor vehicles
-
20% and 25% straight line
Fixtures, fittings and equipment
-
15% - 20% reducing balance
Leasehold improvements
-
over the period of the lease

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

  
2.12
Revaluation of tangible fixed assets

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

  
2.13
Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment. Where merger relief is applicable, the cost of the investment in a subsidiary undertaking is measured at the nominal value of the shares issued together with the fair value of any additional consideration paid.

Page 20

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

  
2.15
Debtors

Short term debtors are measured at transaction price, less any impairment. 

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.18

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Balance sheet when the Group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
 
Page 21

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.18
Financial instruments (continued)


Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.


Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

Page 22

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Critical accounting estimates and assumptions
Revaluation of tangible fixed assets
In the current year, the directors measured the market value of the property. The valuation was based upon market values as at the balance sheet date on a 'open market value' basis. See note 15 for further information.
Defined benefit pension scheme 
The Group has obligations to pay pension benefits to certain current and former employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends. See note 24 for further information.
Work in progress
Work in progress consists of labour, materials and overhead costs of ongoing projects at the balance sheet date. Management estimate the value of materials and overheads based upon a percentage of the value of labour work at that time. The percentages used are based upon the management's knowledge and experience of the industry taking into account current pricing factors. The value of work in progress is £138,118 (2022 - £252,852)


4.


Turnover

The whole of the turnover is attributable to principal activity of Browning's Electric Company Limited,  being that of electrical motor repairs and mechanical engineering. 

All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Insurance claims
-
28,164


Page 23

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
65,347
68,709

Amortisation of intangible assets, including goodwill
47,541
47,541

Auditor's fees
20,000
20,000

Other operating lease rentals
175,769
189,733

Defined contribution pension cost
566,711
124,205


7.


Employees

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


Group
Group
2023
2022
£
£


Wages and salaries
3,301,125
3,118,386

Social security costs
298,125
323,066

Cost of defined contribution scheme
566,711
124,205

4,165,961
3,565,657


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Production
39
41



Office and management
19
19



Administration
9
10

67
70

Page 24

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
191,464
86,452

Group contributions to defined contribution pension schemes
450,000
-

641,464
86,452


During the year retirement benefits were accruing to 3 directors (2022 - NIL) in respect of defined contribution pension schemes.

The directors' remuneration is in respect of services to the subsidiary company, Browning's Electric Company Limited and members' remuneration charged as an expense in the company's subsidiary, Browning's Employee Services LLP. This members' remuneration charged as an expense is due to the individuals who are also directors of this company in their capacity as members of the LLP for managing the LLP. This is included in directors' remuneration above in accordance with the Companies Act 2006.


9.


Interest receivable and similar income

2023
2022
£
£


Other interest receivable
14,932
5,026


10.


Interest payable and similar charges

2023
2022
£
£


Other loan interest payable
27,649
25,993

Finance leases and hire purchase contracts
-
386

Other interest payable
-
2,039

27,649
28,418


11.


Other finance costs

2023
2022
£
£

Net interest on net defined benefit liability
68,000
66,000


Page 25

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
258,527
364,150

Adjustments in respect of previous periods
-
(5,700)


Total current tax
258,527
358,450

Deferred tax


Origination and reversal of timing differences
(18,667)
34,617

Total deferred tax
(18,667)
34,617


Taxation on profit on ordinary activities
239,860
393,067

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,208,447
2,105,631


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
283,985
400,070

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,777
16,794

Amortisation
9,673
9,263

Adjustments to tax charge in respect of defined benefit scheme contributions
(57,575)
(33,060)

Total tax charge for the year
239,860
393,067


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 26

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Dividends

2023
2022
£
£


Dividends paid on equity shares
1,207,895
1,188,902


14.


Intangible assets

Group and Company





Goodwill

£



Cost


At 1 January 2023
950,827



At 31 December 2023

950,827



Amortisation


At 1 January 2023
835,929


Charge for the year on owned assets
47,541



At 31 December 2023

883,470



Net book value



At 31 December 2023
67,357



At 31 December 2022
114,898



Page 27

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Tangible fixed assets

Group






Freehold land and buildings
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
3,503,970
657,689
336,990
295,881
4,794,530


Additions
-
18,060
-
2,985
21,045



At 31 December 2023

3,503,970
675,749
336,990
298,866
4,815,575



Depreciation


At 1 January 2023
82,731
540,541
312,396
275,843
1,211,511


Charge for the year on owned assets
56,908
25,590
23,457
8,260
114,215



At 31 December 2023

139,639
566,131
335,853
284,103
1,325,726



Net book value



At 31 December 2023
3,364,331
109,618
1,137
14,763
3,489,849



At 31 December 2022
3,421,239
117,148
24,594
20,038
3,583,019

 
Cost or valuation at 31 December 2023 is as follows:

Land and buildings
£


At cost
1,837,199
At valuation:

31 December 2023 based on open market value
1,666,771



3,503,970

Page 28

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           15.Tangible fixed assets (continued)

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2023
2022
£
£

Group


Cost
1,837,199
1,837,199

Accumulated depreciation
(158,371)
(134,768)

Net book value
1,678,828
1,702,431

The valuation of the freehold land and buildings was carried out by the directors.


16.


Fixed asset investments

Company





Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost or valuation


At 1 January 2023
1,532,625
100
1,532,725



At 31 December 2023
1,532,625
100
1,532,725





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Principal activity

Class of shares

Holding

Brownings Electric Company Limited
Electrical motor repairs & mechanical engineering
-
Ordinary
-
100%
-
Brownings Employee Services LLP*
Provision of personnel services
-
Equity member
-
100%
-

* BEC (London) Limited has a controlling equity interest in Browning's Employee Services LLP.

Page 29

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Stocks

Group
Group
2023
2022
£
£

Raw materials and consumables
152,433
209,931

Work in progress (goods to be sold)
138,118
252,852

290,551
462,783



18.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
2,069,788
2,409,078
-
-

Amounts owed by group undertakings
-
-
-
228,553

Other debtors
505,191
109,553
26,443
26,443

Prepayments and accrued income
226,106
45,966
-
-

Deferred taxation
71,729
57,312
-
-

2,872,814
2,621,909
26,443
254,996



19.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
1,396,039
1,435,899
60
60


Page 30

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Trade creditors
692,134
617,207
-
-

Amounts owed to group undertakings
-
-
930,019
1,158,572

Corporation tax
-
64,150
-
-

Other taxation and social security
470,247
446,630
-
-

Other creditors
1,069,616
700,350
-
-

Accruals and deferred income
36,346
36,346
-
-

2,268,343
1,864,683
930,019
1,158,572



21.


Deferred taxation


Group



2023


£






At beginning of year
57,312


Charged to profit or loss
18,667


Charged to other comprehensive income
(4,250)



At end of year
71,729

Company





The deferred tax asset is made up as follows:

Group
Group
2023
2022
£
£

Accelerated capital allowances
(19,923)
(18,290)

Defined benefit scheme liability
287,750
271,700

Revalued tangible fixed assets
(196,098)
(196,098)

71,729
57,312

There is no deferred tax within the Company.

Page 31

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



425 (2021 - 425) Ordinary "A" shares of £1 each
425
425
400 (2022 - 400) Ordinary "B" shares of £1 each
400
400
355 (2022 - 355) Ordinary "C" shares of £1 each
355
355
425 (2022 - 425) Ordinary "AA" shares of £- each
4
4
400 (2022 - 400) Ordinary "BB" shares of £- each
4
4
355 (2022 - 355) Ordinary "CC" shares of £- each
4
4

1,192

1,192



23.


Reserves

Share premium account

The share premium represents amounts paid above the par value of ordinary shares.

Revaluation reserve

The revaluation reserve represents cumulative revaluation gains and losses in respect of tangible fixed assets since 2006. 

Capital redemption reserve

The capital redemption reserve represents amounts of nominal share capital redeemed by the company.

Profit and loss account

The Profit and loss account consists of distributable reserves arising from cumulative historical profits and losses less any distributions made.

Page 32

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Pension commitments

The Group operates a defined benefit pension scheme.

Defined Benefit
 
The amounts in the financial statements for the year ended 31 December 2023, relating to defined benefit pensions, are based on a full actuarial valuation.
The most recent full actuarial valuation was at 5 April 2022, which has been updated to 31 December 2023 by a qualified independent actuary.
The defined benefit scheme became a closed scheme on 5 April 2005 and an alternative money purchase scheme was operated for new members and to provide benefits in respect of future service for the current members of the defined benefit scheme. The Group continues to fund the defined benefit scheme to meet the minimum funding requirements (currently 6.7% of pensionable salary) in respect of obligations to members for past service benefits earned to the date of closure. Group contributions to the money purchase scheme were 5% of pensionable salaries.



Reconciliation of present value of plan liabilities:


2023
2022
£
£



At the beginning of the year
5,075,000
7,531,000

Interest cost
239,000
143,000

Actuarial (gains)/losses
74,000
(2,383,000)

Benefits paid
(392,000)
(216,000)

At the end of the year
4,996,000
5,075,000



Reconciliation of present value of plan assets:


2023
2022
£
£


At the beginning of the year
3,645,000
4,047,000

Interest income
171,000
77,000

Actuarial (losses)/gains
91,000
(503,000)

Contributions
330,000
240,000

Benefits paid
(392,000)
(216,000)

At the end of the year
3,845,000
3,645,000

Page 33

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
24.Pension commitments (continued)


Composition of plan assets:


2023
2022
£
£


Equities
1,955,000
1,913,000

Fixed interest
1,139,000
1,010,000

Other
544,000
582,000

Cash
207,000
140,000

Total plan assets
3,845,000
3,645,000

None of the fair value of the assets shown above include any direct investments in the group's own financial instruments or any property occupied by, or used by, the group.
Amounts recognised in the balance sheet as a Defined Benefit Liability:

2023
2022
£
£


Fair value of plan assets
3,845,000
3,645,000

Present value of plan liabilities
(4,996,000)
(5,075,000)

Net pension scheme liability
(1,151,000)
(1,430,000)

Page 34

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
24.Pension commitments (continued)


The amounts recognised in profit or loss are as follows:

2023
2022
£
£


Interest on obligation
68,000
66,000




The Group expects to contribute £360,000 to its defined benefit pension scheme in 2024.




The actual return on the scheme's invested assets over the year was £262,000 (2022 - loss of £426,000).


Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2023
2022
%
%
Discount rate


4.4

4.7
 
Future reduction in deferment


2.8

3.1
 
Future pension increases


3.0

3.3
 
Mortality rates



 
- for a male aged 65 now


21.6

21.6
 
- for a female aged 65 now


23.5

23.5
 





Defined Contribution
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £566,711 (2022 - £124,205). Contributions totalling £28,636 (2022 - £13,738) were payable to the fund at the balance sheet date.

Page 35

 
BEC (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Commitments under operating leases

At 31 December 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Land and buildings

Not later than 1 year
22,500
22,500


Group
Group
2023
2022
£
£

Other

Not later than 1 year
132,566
114,742

Later than 1 year and not later than 5 years
105,402
139,721

237,968
254,463


26.


Related party transactions

The Company is exempt from disclosing related party transactions with companies that are wholly owned within the Group.
Key management personnel compensation paid during the year totalled £299,767 
(2022 - £270,621).
Directors had an interest in dividends paid during the year of £1,207,895 
(2022 - £1,188,902).

 
Page 36