REGISTERED NUMBER: 04372380 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
for |
The Bridgford Group Limited |
REGISTERED NUMBER: 04372380 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
for |
The Bridgford Group Limited |
The Bridgford Group Limited (Registered number: 04372380) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Consolidated Profit and Loss Account | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Financial Statements | 14 |
The Bridgford Group Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
The Mills |
Canal Street |
Derby |
DE1 2RJ |
BANKERS: | Barclays Bank Plc |
Leicester |
LE87 2BB |
The Bridgford Group Limited (Registered number: 04372380) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
During the course of the period, the group's principal activity continued to be that of project management across the UK, specialising in fit out and refurbishment projects in the retail, leisure and commercial sectors. |
The results for the year show a profit before taxation of £1.43m (2022 - £1.04m). The total shareholders' funds have decreased to £0.93m (2022 - £1.24m). |
The performance of the Group is encouraging, considering the fact that it operates within an extremely competitive environment and the resulting commercial pressures that this brings. |
Continuing on from 2022 when the Company completed the sale of 100% of the share capital to an EOT (The Bridgford Group Trustees Limited) which holds the shares for the benefit of the employees. This has been a positive move for the business and is continuing to achieve the benefits of aligning the goals of all stakeholders and employees, improving retention and morale and encouraging innovation at all levels. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group's principal financial instruments comprise bank balances, trade creditors, loans to the group and finance lease agreements. The main purpose of these instruments is to raise funds for the group's operations and to finance the group's operations. |
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to clients and the regular monitoring of amounts outstanding for both time and credit limits.Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
The group is exposed to a moderate level of price risk, credit risk, liquidity risk and cash flow risk. The group manages these risks by financing its operations through retained profits, supplemented by any bank borrowings where necessary to fund expansion. |
The impact continues to be in terms of resources and price pressures which is a nationwide issue affecting all companies. The directors have carefully managed new regulations and guidelines as a result of both issues to minimise disruption to trading. |
Following the balance sheet date, the company continues to be mindful of the risks which has restricted business throughout the wider UK economy.The directors maintain a watching brief on all developments arising from the aforementioned risks. |
The management objectives are to retain sufficient liquid funds to meet day to day requirements, minimise exposure to fluctuating interest rates, and match the repayment schedule of any external borrowings or overdrafts with the future cash flows expected to arise from the group's trading activities. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The group has established and recognised key performance indicators to measure progress in achieving its key business objectives and strategies; these are reviewed on a regular basis. |
Sales Turnover and Sales Margins |
The group aims to increase turnover year-on-year whilst maintaining and improving its gross profit margin. |
Working capital |
The group closely monitors its working capital cycle and maintains a healthy cash balance, reducing the need to use short term borrowing facilities. |
The Bridgford Group Limited (Registered number: 04372380) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
FUTURE DEVELOPMENTS |
The directors pride themselves on the strong relationships that have developed with its clients and supply chain. As a result, the Group has strong commitments for future projects, and the directors feel that it is well placed to take advantage of those opportunities during 2024 and beyond. |
ON BEHALF OF THE BOARD: |
The Bridgford Group Limited (Registered number: 04372380) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
Matters required to be disclosed under SI (2008) 410 Sch 7 pertaining to the use of Financial Instruments are contained within the Strategic Report in accordance with s414C(11) of the Companies Act 2006. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
The Bridgford Group Limited |
Opinion |
We have audited the financial statements of The Bridgford Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 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 Auditors' 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 and 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
The Bridgford Group Limited |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept 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 Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the company and sector in which it operates, we considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. Audit procedures performed by the engagement team included: |
- | Enquiry of management around actual and potential litigation and claims; |
- | Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
- | 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. |
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
The Bridgford Group Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
The Mills |
Canal Street |
Derby |
DE1 2RJ |
The Bridgford Group Limited (Registered number: 04372380) |
Consolidated |
Profit and Loss Account |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 29,067,545 | 30,075,423 |
Cost of sales | 24,041,724 | 25,406,368 |
GROSS PROFIT | 5,025,821 | 4,669,055 |
Administrative expenses | 3,502,726 | 3,514,225 |
1,523,095 | 1,154,830 |
Other operating income | 3,470 | 6,008 |
OPERATING PROFIT | 5 | 1,526,565 | 1,160,838 |
Interest receivable and similar income | 97,902 | 21,769 |
1,624,467 | 1,182,607 |
Interest payable and similar expenses | 6 | 196,882 | 143,573 |
PROFIT BEFORE TAXATION | 1,427,585 | 1,039,034 |
Tax on profit | 7 | 402,239 | (130,822 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,025,346 |
1,169,856 |
Profit attributable to: |
Owners of the parent | 1,025,346 | 1,169,856 |
Total comprehensive income attributable to: |
Owners of the parent | 1,025,346 | 1,169,856 |
The Bridgford Group Limited (Registered number: 04372380) |
Consolidated Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | - |
Tangible assets | 11 | 203,181 | 300,011 |
Investments | 12 | - | - |
203,181 | 300,011 |
CURRENT ASSETS |
Debtors | 13 | 4,164,180 | 4,479,723 |
Cash at bank and in hand | 4,001,506 | 6,536,948 |
8,165,686 | 11,016,671 |
CREDITORS |
Amounts falling due within one year | 14 | 7,049,557 | 9,238,718 |
NET CURRENT ASSETS | 1,116,129 | 1,777,953 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,319,310 |
2,077,964 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(333,333 |
) |
(833,333 |
) |
PROVISIONS FOR LIABILITIES | 19 | (51,000 | ) | - |
NET ASSETS | 934,977 | 1,244,631 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 248 | 248 |
Share premium | 21 | 73,104 | 73,104 |
Retained earnings | 21 | 861,625 | 1,171,279 |
SHAREHOLDERS' FUNDS | 934,977 | 1,244,631 |
The financial statements were approved by the Board of Directors and authorised for issue on 31 July 2024 and were signed on its behalf by: |
P J Cockle - Director |
The Bridgford Group Limited (Registered number: 04372380) |
Company Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share premium | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,334,970 | 3,182,320 |
The financial statements were approved by the Board of Directors and authorised for issue on |
The Bridgford Group Limited (Registered number: 04372380) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up | Share |
share | Retained | Share | option | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | 200 | 3,065,771 | - | 73,152 | 3,139,123 |
Changes in equity |
Issue of share capital | 48 | - | 73,104 | - | 73,152 |
Dividends | - | (387,500 | ) | - | - | (387,500 | ) |
Total comprehensive income | - | 1,169,856 | - | - | 1,169,856 |
Transfer | - | 73,152 | - | (73,152 | ) | - |
EOT contribution | - | (2,750,000 | ) | - | - | (2,750,000 | ) |
Balance at 31 December 2022 | 248 | 1,171,279 | 73,104 | - | 1,244,631 |
Changes in equity |
Total comprehensive income | - | 1,025,346 | - | - | 1,025,346 |
EOT contribution | - | (1,335,000 | ) | - | - | (1,335,000 | ) |
Balance at 31 December 2023 | 248 | 861,625 | 73,104 | - | 934,977 |
The Bridgford Group Limited (Registered number: 04372380) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up | Share |
share | Retained | Share | option | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Issue of share capital | - | - |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Transfer | - | 73,152 | - | (73,152 | ) | - |
EOT contribution | - | (2,750,000 | ) | - | - | (2,750,000 | ) |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - | - |
EOT contribution | - | (1,335,000 | ) | - | - | (1,335,000 | ) |
Balance at 31 December 2023 |
The Bridgford Group Limited (Registered number: 04372380) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 24 | (625,800 | ) | 5,362,524 |
Interest paid | (196,882 | ) | (143,573 | ) |
Tax paid | - | (128,297 | ) |
Net cash from operating activities | (822,682 | ) | 5,090,654 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (143,254 | ) | (221,715 | ) |
Sale of tangible fixed assets | 169,117 | 93,100 |
Interest received | 97,902 | 21,769 |
Net cash from investing activities | 123,765 | (106,846 | ) |
Cash flows from financing activities |
Loan repayments in year | (500,000 | ) | - |
Amount introduced by directors | 489 | - |
Amount withdrawn by directors | (2,014 | ) | 12,429 |
Share issue | - | 73,200 |
EOT contribution | (1,335,000 | ) | (2,750,000 | ) |
Equity dividends paid | - | (387,500 | ) |
Net cash from financing activities | (1,836,525 | ) | (3,051,871 | ) |
(Decrease)/increase in cash and cash equivalents | (2,535,442 | ) | 1,931,937 |
Cash and cash equivalents at beginning of year |
25 |
6,536,948 |
4,605,011 |
Cash and cash equivalents at end of year |
25 |
4,001,506 |
6,536,948 |
The Bridgford Group Limited (Registered number: 04372380) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
The Bridgford Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The consolidated accounts incorporate the accounts of The Bridgford Group Limited and all of its subsidiary undertakings for the year. The acquisition method of accounting has been adopted. No profit or loss account is presented for The Bridgford Group Limited as permitted by section 408 of the Companies Act 2006. |
Goodwill arising on consolidation is capitalised and has been fully amortised over a period of five years from the date of acquisition. |
In the company's financial statements, investments in subsidiary undertakings are stated at cost less amounts written off. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Tangible fixed assets 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 necessary condition for it to be capable of operating in the manner intended by management. |
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life: |
Leasehold improvements | - 33% on cost |
Motor vehicles | - 25% on cost |
Computer equipment | - 33% on cost |
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. |
The Bridgford Group Limited (Registered number: 04372380) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Long term contract balances |
For long term contracts, profit is recognised by reference to the stage of completion of each contract where there is reasonable certainty that the contract will be profitable. Where the outcome of the contract cannot be established with reasonable certainty, no profit is recognised. Foreseeable losses are provided for in full at the point at which the loss is anticipated. |
Where amounts invoiced exceed the value of work done, the excess is accounted for as payments received on account and is included within creditors. Where the value of work done exceeds the amounts invoiced, the excess is accounted for as amounts recoverable on contracts and is included within debtors. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,491,486 | 2,312,321 |
Social security costs | 270,285 | 247,169 |
Other pension costs | 62,586 | 88,700 |
2,824,357 | 2,648,190 |
The Bridgford Group Limited (Registered number: 04372380) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Production staff | 4 | 5 |
Administrative staff | 39 | 39 |
4. | DIRECTORS' EMOLUMENTS |
2023 | 2022 |
£ | £ |
Directors' remuneration | 641,308 | 700,906 |
Directors' pension contributions to money purchase schemes | 19,491 | 54,891 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 105,920 | 129,871 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 101,963 | 88,992 |
Profit on disposal of fixed assets | (30,996 | ) | (8,663 | ) |
Auditors' remuneration | 11,825 | 11,650 |
Auditors' remuneration for non audit work | 6,070 | 4,000 |
Foreign exchange differences | 4,445 | (37,863 | ) |
Operating lease costs | 224,476 | 201,737 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Interest payable | 196,882 | 143,573 |
7. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 220,417 | - |
Deferred tax | 181,822 | (130,822 | ) |
Tax on profit | 402,239 | (130,822 | ) |
The Bridgford Group Limited (Registered number: 04372380) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 1,427,585 | 1,039,034 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
356,896 |
197,416 |
Effects of: |
Expenses not deductible for tax purposes | 4,341 | 29,769 |
Capital allowances in excess of depreciation | - | (10,296 | ) |
Depreciation in excess of capital allowances | 13,262 | - |
EMI deduction | - | (313,391 | ) |
Other timing differences | 41,604 | (34,320 | ) |
Change in tax rate | (13,864 | ) | - |
Total tax charge/(credit) | 402,239 | (130,822 | ) |
8. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim | - | 387,500 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 9,459 |
AMORTISATION |
At 1 January 2023 |
and 31 December 2023 | 9,459 |
NET BOOK VALUE |
At 31 December 2023 | - |
At 31 December 2022 | - |
The Bridgford Group Limited (Registered number: 04372380) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Leasehold | Motor | Computer |
improvements | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 75,760 | 452,680 | - | 528,440 |
Additions | - | 117,899 | 25,355 | 143,254 |
Disposals | - | (246,996 | ) | - | (246,996 | ) |
At 31 December 2023 | 75,760 | 323,583 | 25,355 | 424,698 |
DEPRECIATION |
At 1 January 2023 | 75,760 | 152,669 | - | 228,429 |
Charge for year | - | 93,511 | 8,452 | 101,963 |
Eliminated on disposal | - | (108,875 | ) | - | (108,875 | ) |
At 31 December 2023 | 75,760 | 137,305 | 8,452 | 221,517 |
NET BOOK VALUE |
At 31 December 2023 | - | 186,278 | 16,903 | 203,181 |
At 31 December 2022 | - | 300,011 | - | 300,011 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Group registered office (page 1) |
Nature of business: |
% |
Class of shares: | holding |
The Bridgford Group Limited (Registered number: 04372380) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: Group registered office (page 1) |
Nature of business: |
% |
Class of shares: | holding |
13. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 2,511,778 | 3,174,932 |
Amounts recoverable on contracts | 1,229,232 | 626,738 |
Other debtors | 164,198 | 241,940 |
Directors' current accounts | 2,306 | 292 | - | - |
Prepayments and accrued income | 256,666 | 304,999 |
4,164,180 | 4,348,901 |
Amounts falling due after more than one | year: |
Deferred tax asset | - | 130,822 | - | - |
Aggregate amounts | 4,164,180 | 4,479,723 |
Deferred tax asset |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | - | 130,822 | - | - |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Other loans (see note 16) | 500,000 | 500,000 |
Trade creditors | 3,178,883 | 4,357,875 |
Amounts owed to group undertakings | - | - |
Tax | 220,417 | - |
Social security and other taxes | 1,044,007 | 1,251,619 |
Dividends payable | 200 | 200 | 100 | 100 |
Other creditors | 15,690 | 21,409 |
Directors' current accounts | 14,283 | 13,794 | - | - |
Accruals and deferred income | 2,076,077 | 3,093,821 |
7,049,557 | 9,238,718 |
The Bridgford Group Limited (Registered number: 04372380) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Other loans (see note 16) | 333,333 | 833,333 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or | on demand: |
Other loans | 500,000 | 500,000 |
Amounts falling due between one and | two years: |
Other loans - 1-2 years | 333,333 | 500,000 |
Amounts falling due between two and | five years: |
Other loans - 2-5 years | - | 333,333 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 214,574 | 224,476 |
Between one and five years | 445,260 | 486,581 |
In more than five years | 233,750 | 318,750 |
893,584 | 1,029,807 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Other loans | 833,333 | 1,333,333 |
Other loans were provided by IGF Invoice Finance Limited which holds a debenture including fixed charges and a floating charge over all assets and undertakings of the group. |
The Bridgford Group Limited (Registered number: 04372380) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
19. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 51,000 | - |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | (130,822 | ) |
Provided during year | 181,822 |
Balance at 31 December 2023 | 51,000 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
£ | £ |
Number: |
Class: |
Nominal value: |
2023 |
2022 |
66 | A Ordinary | £1 | - | 66 |
66 | B Ordinary | £1 | - | 66 |
66 | C Ordinary | £1 | - | 66 |
2 | D Ordinary | £1 | - | 2 |
48 | Ordinary | £1 | - | 48 |
- | 248 |
21. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2023 | 1,171,279 | 73,104 | 1,244,383 |
Profit for the year | 1,025,346 | 1,025,346 |
EOT contribution | (1,335,000 | ) | - | (1,335,000 | ) |
At 31 December 2023 | 861,625 | 73,104 | 934,729 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 January 2023 | 648,304 |
Profit for the year |
EOT contribution | (1,335,000 | ) | - | (1,335,000 | ) |
At 31 December 2023 | 648,274 |
The Bridgford Group Limited (Registered number: 04372380) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
22. | RELATED PARTY DISCLOSURES |
The group is controlled by The Bridgford Group Trustees Limited (an Employee Ownership Trust) following the purchase of 100% of the parent's share capital on 31 May 2022. |
During the year rent of £85,268 (2022 - £77,647) was paid to a pension scheme in which the directors of the Group are beneficiaries. This rent was for the building in which the company operates. |
During the year ended 31 December 2019 the Group loaned £211,656 to 3 companies in which the directors are the shareholders. At the year end £122,371 (2022 - £181,656) was owed by the companies and is included in other debtors. The loans outstanding are broken down below: |
2023 | 2022 |
£ | £ |
NSH Investments Limited | - | 60,552 |
PJCB Investments Limited | 61,158 | 60,552 |
SJMB Investments Limited | 61,158 | 60,552 |
122,371 | 181,656 |
The loans are subject to interest charged at 3% above the Bank of England base rate. |
At the balance sheet date, two directors held current accounts with the Group. Included within debtors is £2,306 (2022 - £292) due from the directors and included within creditors is £14,283 (2022 - £13,794) owed to the directors. These balances are interest free and repayable on demand. |
In accordance with the accounting policy, the company has taken advantage of the exemption not to disclose related party transactions with wholly owned subsidiaries within the group. |
The directors are the key management personnel. |
23. | EMPLOYEE BENEFITS |
Included in the notes to the financial statements are payments to a defined contribution pension scheme. |
24. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 1,427,585 | 1,039,034 |
Depreciation charges | 101,963 | 88,992 |
Profit on disposal of fixed assets | (30,996 | ) | (8,663 | ) |
Employee share option expense | - | (48 | ) |
Finance costs | 196,882 | 143,573 |
Finance income | (97,902 | ) | (21,769 | ) |
1,597,532 | 1,241,119 |
Decrease in trade and other debtors | 186,735 | 2,686,789 |
(Decrease)/increase in trade and other creditors | (2,410,067 | ) | 1,434,616 |
Cash generated from operations | (625,800 | ) | 5,362,524 |
The Bridgford Group Limited (Registered number: 04372380) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
25. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 4,001,506 | 6,536,948 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 6,536,948 | 4,605,011 |
26. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 6,536,948 | (2,535,442 | ) | 4,001,506 |
6,536,948 | (2,535,442 | ) | 4,001,506 |
Debt |
Debts falling due within 1 year | (500,000 | ) | - | (500,000 | ) |
Debts falling due after 1 year | (833,333 | ) | 500,000 | (333,333 | ) |
(1,333,333 | ) | 500,000 | (833,333 | ) |
Total | 5,203,615 | (2,035,442 | ) | 3,168,173 |