Company registration number 3108386 (England and Wales)
BOF GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BOF GROUP LIMITED
COMPANY INFORMATION
Directors
Mr M J Parrish
Mrs L M Parrish
Company number
3108386
Registered office
Tower House
Tower Close
Bridgend Industrial Estate
Bridgend
Mid Glamorgan
United Kingdom
CF31 3TH
Auditor
Azets Audit Services
Ty Derw, Lime Tree Court
Cardiff Gate Business Park
Cardiff
United Kingdom
CF23 8AB
BOF GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 25
BOF GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

The principal activity of the company in the year continued to be that of wholesalers and retailers of office furniture.

The strategy of the business is to increase its share of the office furniture market through increasing sales via Higher Education and Public Sector Frameworks.

The company enjoys a number of competitive advantages including strong brand recognition in its heartland trading region, where it consistently achieves a strong market share; a well-established reputation for price competitiveness; a knowledgeable and enthusiastic workforce and a strong customer focus throughout the business.

The company’s business model is driven by market demand; the flexibility and agility to adapt quickly and efficiently has meant existing Frameworks and Contracts provide opportunities for profitable collaborative engagement.

The company is an incumbent supplier on several high-profile Public-Sector Frameworks and Contracts and continues to develop productive relationships with Framework customers, further enhancing company security and growth opportunities over the mid to long term.

The company’s business model is ideally suited to our chosen marketplaces and the directors of the company continue to see opportunities over the medium-to-long term via their Framework and Contract incumbencies. FY’23 saw the company retain positions on existing Frameworks and also win significant new sole supply contracts.

Financial performance and position

The financial performance for the year and the financial position of the company as at 31 December 2023, which includes all relevant key performance indicators for the company, is set out in the annexed financial statements.

The directors of the company were pleased with the overall performance of the business during the year particularly given the economic environment prevailing in the UK.

In collaboration with the supply chain and client base, the company continued to apply prudent operational and financial management principles throughout 2023 to ensure the prevailing Business Model remained effective and efficient whilst maintaining exemplary service delivery levels.

Key achievements in FY’23

ISO 45001:2018 Occupational Health and Safety Management Systems - The directors were delighted, after a rigorous two stage auditing process with the certificating body NQA, that the business has been awarded accreditation to ISO 45001: 2018 Occupational Health and Safety Management Systems (OH&S). This certification is in addition to the company’s existing ISO 9001 Quality and ISO 14001 Environmental Management Systems that the company has maintained for many years.

Cyber Essentials - The company has successfully been recertified in FY’23. Cyber Essentials is a government-backed and industry-supported scheme that helps businesses protect themselves against the growing threat of cyber-attacks and provides a clear statement of the basic controls organisations should have in place to protect themselves. The company’s robust package of methods has enabled us to become certified for another 12-month period.

Constructionline Gold Membership - The company’s Gold accreditation verifies that we have been assessed by Constructionline for our credentials in environmental management, quality management, equal opportunities, modern slavery act adherence and anti-bribery and corruption policies.

Wales Green Business of the Year Winners - The company was awarded ‘Green Business of the Year’ at the highly anticipated Wales Business Awards 2023 at a ceremony hosted by Chambers Wales Southeast, Southwest and Mid at the ICC Wales, Newport. The directors are incredibly proud to have won the ‘Green Business of the Year’ Award. For over 30 years we have championed environmental practices.

BOF GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Sustainability - Whilst sustainability and the environment has always been very important, FY’23 saw the company continue to develop and implement several new business critical, environmental based services and reporting functions e.g., the company now monitors and measures our Carbon Emissions using DEFRA validated sources (Sustainability School, Carbon Footprint and Net Zero Carbon Supplier Tool) and is able to report client Scope 3 emissions via apportionment principles – critical for the company’s clients who need to report on their own supply chain. This monitoring, measuring and reporting has also provided detailed benchmark data (our initiation year benchmark is 2021) against which BOF Net Zero Carbon Plan is tested – at present the company has achieved an almost 50% reduction in emissions from 2022 to 2023.

During the year, the company continued its investment in the delivery fleet of motor vehicles contributing directly to ongoing carbon emission reductions.

End of Life Products - The company employs three full-time personnel and has a 1,800sq ft unit at Merthyr Tydfil. The employees reupholster existing / unwanted furniture from our Public Sector and Framework Customers’ estates. Within the first year of providing this service, we have diverted 1,048 pieces of furniture from landfill which is equivalent to 15 tonnes of waste. Importantly, the company is contributing to the local economy by using local supply chains.

IT infrastructureDuring FY’23, the company has updated all users with Business Outlook to automate backups and archiving, providing data saving and efficient archiving. The company has invested in Hybrid Cloud Migration, in which on premises and local data is backed up on a cloud, this is to mitigate business disruption, in the event a local device becomes inoperable.

PropertyFY’23 saw the continued development of the company’s growth strategy which included the purchase of two properties. Further expansion of the business is proposed which will involve further property additions. The directors are actively searching for suitable premises.

Future outlook

Whilst trading conditions are expected to remain competitive throughout FY'24, the board consider the company to be well positioned to manage and take on this challenge.

The company will continue to develop its profile on current frameworks in order to achieve defined objectives as regards business development and performance over the coming accounting period and to ensure relevant business opportunities are identified with compelling business cases constructed and submitted (generally in the form of quotes and tenders). There are also prevailing framework competitions that have been targeted onto which securing an incumbency will further drive business performance and provide the opportunity to build growth into financial performance. The company is confident of achieving a key objective of securing positions on strategically and geographically important furniture supply framework agreements.

The company commitment to continuous development and inherent flexibility to quickly adapt to changing circumstances ensures our product and service offerings remain sustainable, viable and cost effective to our client base.

BOF GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Competition

Key performance indicators

The groups key performance indicators (KPI’s) are summarised below:

KPI’s – Year ended

31 December 2023

31 December 2022

Turnover

£18,707k

£24,401k

Profit for the financial year

£1,999k

£3,045k

Net current assets

£16,233k

£15,640k

 

The management of the business and the execution of the company’s strategy are subject to a number of risks. The key business risks affecting the company are considered to relate to competitor activity and employee retention and are summarised as follows:

Risk

Potential impact

Mitigation

Competitor activity

Loss of business to competitors

The threat of competitor activity comes mainly from our framework supplier incumbents. The company is extremely successful in direct tendering against these competitor groups. The company’s ambition to extend our access to suitable national furniture frameworks will expand supplier competition but also open up new markets for the company to exploit.

People

The business could be impacted by the loss of key individuals.

The business looks to increase staff engagement through (1) opportunities to give feedback and to influence future business developments and (2) training and progression opportunities.

 

BOF GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Future Developments

Principal risks and uncertainties

Business risks have been monitored and mitigated throughout the year and will continue to provide key indicators influencing business strategy going forward. Typical managed risks include Framework supplier competition, price pressure from clients and costs from supply chain, increasing overhead costs, greater resource demands from clients etc. Also, whilst our Business Model is substantively low risk i.e., Public Sector: Education Sector, NHS, Local Authorities etc. the geo-political environment will continue to be closely monitored to ensure appropriate mitigation strategies are implemented where necessary; case in point being the ongoing uncertainty caused by the Russia/Ukraine conflict.

The company implements robust financial management and control policies, mandated at Board level and managed directly by BOF Managing Director and the finance department. There is no debt finance on the books and the carefully managed Business Model means this is a low credit risk area predicated on stringent customer credit checks (on-going credit worthiness reviewed frequently) and key client profiles e.g., Public Sector: Education Sector, NHS, Local Authorities etc.

The company Environmental, Quality, Equality and Health & Safety credentials remain critical to maintaining our strong position on current frameworks and crucial to securing similar incumbencies on upcoming Framework opportunities. Development in these areas has seen further investment strategies achieve enhanced scores in Supply Chain Sustainability School environmental system where our benchmarked scores remain industry leading. Further contract critical credentials continue to be maintained e.g., CTC Security Clearance for numerous BOF personnel and Cyber Essentials accreditation.

Price risk

The company is exposed to commodity price risk as a result of its operations. However, given the size of the group's operations, the costs of managing exposure to commodity risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the group's operations change in size or nature.

Credit risk

The company is not exposed to any significant credit risk.

Liquidity risk

The company does not utilise long-term or short-term debt finance. The directors will revisit the appropriateness of this policy should the group's operations change in size or nature.

Interest rate cash flow risk

The company has interest bearing assets which comprise only cash balances which earn interest at fixed and floating rates. The directors will revisit the appropriateness of this policy should the group's operations change in size or nature.

On behalf of the board

Mr M J Parrish
Director
10 June 2024
BOF GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

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

Principal activities

The principal activity of the company in the year under review was that of wholesalers and retailers of office furniture.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr M J Parrish
Mrs L M Parrish
Results and dividends

The results for the year are set out on page 10.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr M J Parrish
Director
10 June 2024
BOF GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -

The directors are responsible for preparing 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). The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing those financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and estimates that are reasonable and prudent;

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- 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 proper accounting records that disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

BOF GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BOF GROUP LIMITED
- 7 -
Opinion

We have audited the financial statements of BOF Group Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

BOF GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BOF GROUP LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

BOF GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BOF GROUP LIMITED
- 9 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Craig Yearsley FCCA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
10 June 2024
Chartered Accountants
Statutory Auditor
Ty Derw, Lime Tree Court
Cardiff Gate Business Park
Cardiff
United Kingdom
CF23 8AB
BOF GROUP LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
18,706,629
24,401,415
Cost of sales
(12,150,171)
(16,278,134)
Gross profit
6,556,458
8,123,281
Administrative expenses
(4,450,962)
(4,225,913)
Operating profit
4
2,105,496
3,897,368
Interest receivable and similar income
7
614,574
(51,906)
Interest payable and similar expenses
8
(97,951)
(60,550)
Profit before taxation
2,622,119
3,784,912
Tax on profit
9
(622,785)
(739,172)
Profit for the financial year
1,999,334
3,045,740

The profit and loss account has been prepared on the basis that all operations are continuing operations.

BOF GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
£
£
Profit for the year
1,999,334
3,045,740
Other comprehensive income
-
-
Total comprehensive income for the year
1,999,334
3,045,740
BOF GROUP LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,519,708
1,571,325
Current assets
Stocks
12
235,441
240,207
Debtors
13
1,725,073
1,409,425
Investments
14
13,897,082
13,429,985
Cash at bank and in hand
2,499,715
2,552,478
18,357,311
17,632,095
Creditors: amounts falling due within one year
15
(2,124,461)
(1,992,168)
Net current assets
16,232,850
15,639,927
Total assets less current liabilities
18,752,558
17,211,252
Creditors: amounts falling due after more than one year
16
(1,422,090)
(1,403,838)
Provisions for liabilities
Deferred tax liability
82,422
28,702
(82,422)
(28,702)
Net assets
17,248,046
15,778,712
Capital and reserves
Called up share capital
19
2
2
Profit and loss reserves
17,248,044
15,778,710
Total equity
17,248,046
15,778,712
The financial statements were approved by the board of directors and authorised for issue on 10 June 2024 and are signed on its behalf by:
Mr M J Parrish
Director
Company Registration No. 3108386
BOF GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
2
13,232,970
13,232,972
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
3,045,740
3,045,740
Dividends
10
-
(500,000)
(500,000)
Balance at 31 December 2022
2
15,778,710
15,778,712
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
1,999,334
1,999,334
Dividends
10
-
(530,000)
(530,000)
Balance at 31 December 2023
2
17,248,044
17,248,046
BOF GROUP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
2,185,094
3,288,159
Interest paid
(97,951)
(60,550)
Income taxes paid
(723,471)
(849,667)
Net cash inflow from operating activities
1,363,672
2,377,942
Investing activities
Purchase of tangible fixed assets
(1,077,142)
(24,415)
Proceeds on disposal of tangible fixed assets
24,978
11,020
Purchase of investments
(467,097)
(12,403,615)
Interest received
614,574
(51,906)
Net cash used in investing activities
(904,687)
(12,468,916)
Financing activities
Repayment of borrowings
18,252
503,838
Dividends paid
(530,000)
(500,000)
Net cash (used in)/generated from financing activities
(511,748)
3,838
Net decrease in cash and cash equivalents
(52,763)
(10,087,136)
Cash and cash equivalents at beginning of year
2,552,478
12,639,614
Cash and cash equivalents at end of year
2,499,715
2,552,478
BOF GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

BOF Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Tower House, Tower Close, Bridgend Industrial Estate, Bridgend, Mid Glamorgan, United Kingdom, CF31 3TH.

1.1
Accounting convention

The financial statements are prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer returns.

 

Turnover from the sale of goods is recognised when the following conditions are satisfied:

 

 

 

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

 

Land and buildings Freehold
2% on cost
Plant and machinery
10% on reducing balance
Fixtures, fittings & equipment
33% on reducing balance and 10% on reducing balance
Motor vehicles
25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

BOF GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price. Costs are based on the method on a first-in-first-out basis. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

 

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial assets

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Loans and receivables

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

BOF GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

1.9
Financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

BOF GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred taxation is provided in full on timing differences that result in an obligation at the balance sheet date to pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise based on current tax rates and law. Timing differences arise from the inclusion of items of income and expenditure on taxation computations in periods different from those in which they are included in the financial statements.

 

Deferred tax assets are recognised to the extent that is regarded as more likely than not that they wll be recovered. Deferred tax assets and liabilities are not discounted.

 

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year that they are payable.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Foreign exchange

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.

 

BOF GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
2
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

 

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
wholesale and retail of office furniture
18,706,630
20,856,001
2023
2022
£
£
Other significant revenue
Interest income
614,574
(51,906)
2023
2022
£
£
Turnover analysed by geographical market
UK
18,706,630
20,856,001
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(420)
(42,109)
Fees payable to the company's auditor for the audit of the company's financial statements
12,200
13,650
Depreciation of owned tangible fixed assets
114,835
82,497
Profit on disposal of tangible fixed assets
(11,054)
(4,786)
Operating lease charges
3,601
4,142
BOF GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Sales & Distribution
36
33
Administration
16
18
Total
52
51

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,590,062
2,553,058
Social security costs
291,720
300,245
Pension costs
157,482
107,159
3,039,264
2,960,462
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
120,000
120,000
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
614,574
68,042
Other interest income
-
0
(119,948)
Total income
614,574
(51,906)
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
614,574
(51,906)
BOF GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
97,951
60,550
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
578,389
743,506
Adjustments in respect of prior periods
(9,324)
(14)
Total current tax
569,065
743,492
Deferred tax
Origination and reversal of timing differences
53,720
(4,320)
Total tax charge
622,785
739,172

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
2,622,119
3,784,912
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
616,722
719,133
Tax effect of expenses that are not deductible in determining taxable profit
12,193
7,637
Adjustments in respect of prior years
(9,324)
(14)
Effect of change in corporation tax rate
3,194
(1,037)
Deferred tax not recognised
-
0
14,345
Enhanced capital allowances
-
0
(892)
Taxation charge for the year
622,785
739,172
10
Dividends
2023
2022
£
£
Final paid
530,000
500,000
BOF GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
11
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
1,883,270
216,459
418,606
366,856
2,885,191
Additions
805,800
5,841
-
0
265,501
1,077,142
Disposals
-
0
-
0
-
0
(121,406)
(121,406)
At 31 December 2023
2,689,070
222,300
418,606
510,951
3,840,927
Depreciation and impairment
At 1 January 2023
535,333
146,150
377,026
255,357
1,313,866
Depreciation charged in the year
38,249
7,469
4,374
64,743
114,835
Eliminated in respect of disposals
-
0
-
0
-
0
(107,482)
(107,482)
At 31 December 2023
573,582
153,619
381,400
212,618
1,321,219
Carrying amount
At 31 December 2023
2,115,488
68,681
37,206
298,333
2,519,708
At 31 December 2022
1,347,937
70,309
41,580
111,499
1,571,325

 

12
Stocks
2023
2022
£
£
Finished goods and goods for resale
235,441
240,207
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,574,321
1,347,885
Other debtors
82,365
461
Prepayments and accrued income
68,387
61,079
1,725,073
1,409,425
14
Current asset investments
2023
2022
£
£
Short term deposits
13,897,082
13,429,985
BOF GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
970,123
712,626
Corporation tax
269,086
423,492
Other taxation and social security
352,388
384,720
Other creditors
97,818
102,090
Accruals and deferred income
435,046
369,240
2,124,461
1,992,168
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Loans from the Director
17
1,422,090
1,403,838
17
Other Borrowings
2023
2022
£
£
Loans from the Director
1,422,090
1,404,823
Payable within one year
-
0
985
Payable after one year
1,422,090
1,403,838

The loan from the director is secured up to the value of £1m upon the property that the business occupies.

 

During the year interest of £97,832 (2022: £60,550) was charged by Mr M J and Mrs L M Parrish upon the director loan account and included within accruals. There are no set repayment terms. Interest is charged at a rate of 5% per annum.

 

18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
157,482
107,159

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

BOF GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
200
2
2
2

During the year a sub-division of shares was enacted to change the 2 £1 ordinary shares to 200 £0.01 ordinary shares

20
Operating lease commitments
Lessee

The company leases vans, vehicles and other plant and equipment.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
5,473
8,865
Between two and five years
7,675
13,148
13,148
22,013
21
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, including directors, is as follows.

2023
2022
£
£
Aggregate compensation
1,494,369
1,446,420
22
Ultimate controlling party

The directors consider the ultimate controlling party to be Mr M Parrish due to his level of shareholding.

BOF GROUP LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
23
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,999,334
3,045,740
Adjustments for:
Taxation charged
622,785
739,172
Finance costs
97,951
60,550
Investment income
(614,574)
51,906
Gain on disposal of tangible fixed assets
(11,054)
(4,786)
Depreciation and impairment of tangible fixed assets
114,835
82,497
Movements in working capital:
Decrease in stocks
4,766
879,826
Increase in debtors
(315,648)
(7,674)
Increase/(decrease) in creditors
286,699
(1,559,072)
Cash generated from operations
2,185,094
3,288,159
24
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,552,478
(52,763)
2,499,715
Borrowings excluding overdrafts
(1,403,838)
(18,252)
(1,422,090)
1,148,640
(71,015)
1,077,625
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