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Registration number: 01756257

Brown Brothers Group Limited

Filleted Financial Statements

for the Year Ended 31 December 2023

 

Brown Brothers Group Limited
(Registration number: 01756257)

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 12

 

Brown Brothers Group Limited
(Registration number: 01756257)

Company Information

Directors

Mr L D Summers

Mr A M Kaupang

Mr T E Seljaas

Company secretary

Mr T E Seljaas

Registered office

28 Alexandra Terrace
Exmouth
Devon
EX8 1BD

Auditors

Thompson Jenner LLP
Statutory Auditors
28 Alexandra Terrace
Exmouth
Devon
EX8 1BD

 

Brown Brothers Group Limited
(Registration number: 01756257)

Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

821,375

836,352

Investments

5

393,986

393,986

 

1,215,361

1,230,338

Current assets

 

Stocks

6

909,966

1,387,247

Debtors

7

880,529

702,158

 

1,790,495

2,089,405

Creditors: Amounts falling due within one year

8

(1,458,781)

(1,672,081)

Net current assets

 

331,714

417,324

Total assets less current liabilities

 

1,547,075

1,647,662

Creditors: Amounts falling due after more than one year

8

(89,052)

(157,844)

Provisions for liabilities

(175,833)

(182,333)

Net assets

 

1,282,190

1,307,485

Capital and reserves

 

Called up share capital

70,833

70,833

Share premium reserve

191,667

191,667

Profit and loss account

1,019,690

1,044,985

Total equity

 

1,282,190

1,307,485

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 23 September 2024 and signed on its behalf by:
 

.........................................
Mr A M Kaupang
Director

 

Brown Brothers Group Limited
(Registration number: 01756257)

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
28 Alexandra Terrace
Exmouth
Devon
EX8 1BD

The principal place of business is:
3 Persfield Mews
Ewell
Epsom
Surrey
KT17 1PB
United Kingdom

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Group accounts not prepared

The financial statements contain information about Brown Brothers Group Limited as an individual company and do not contain consolidated financial information as the parent of a group.

The company is exempt under section 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Norwegian Paper UK Limited, a company incorporated in England and Wales
.

Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on ................. 23 September 2024 was Ruskin Wilson, who signed for and on behalf of Thompson Jenner LLP.

 

Brown Brothers Group Limited
(Registration number: 01756257)

Notes to the Financial Statements for the Year Ended 31 December 2023

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the Company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The Company recognises revenue on delivery of goods to the customers.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, less their estimated residual value, over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

15%/5% reducing balance

Fixtures and fittings

15% reducing balance

Computer equipment

15% reducing balance

Motor vehicles

20% straight line

 

Brown Brothers Group Limited
(Registration number: 01756257)

Notes to the Financial Statements for the Year Ended 31 December 2023

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

 

Brown Brothers Group Limited
(Registration number: 01756257)

Notes to the Financial Statements for the Year Ended 31 December 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Brown Brothers Group Limited
(Registration number: 01756257)

Notes to the Financial Statements for the Year Ended 31 December 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 29 (2022 - 25).

 

Brown Brothers Group Limited
(Registration number: 01756257)

Notes to the Financial Statements for the Year Ended 31 December 2023

4

Tangible assets

Fixtures and fittings
 £

Motor vehicles
 £

Office equipment
 £

Plant and machinery
 £

Total
£

Cost or valuation

At 1 January 2023

52,144

72,508

44,411

994,689

1,163,752

Additions

-

-

1,576

39,084

40,660

At 31 December 2023

52,144

72,508

45,987

1,033,773

1,204,412

Depreciation

At 1 January 2023

42,968

11,675

26,299

246,458

327,400

Charge for the year

1,377

10,000

2,835

41,425

55,637

At 31 December 2023

44,345

21,675

29,134

287,883

383,037

Carrying amount

At 31 December 2023

7,799

50,833

16,853

745,890

821,375

At 31 December 2022

9,176

60,833

18,112

748,231

836,352

 

Brown Brothers Group Limited
(Registration number: 01756257)

Notes to the Financial Statements for the Year Ended 31 December 2023

5

Investments

2023
£

2022
£

Investments in subsidiaries

393,986

393,986

Subsidiaries

£

Cost or valuation

At 1 January 2023

393,986

At 31 December 2023

393,986

Carrying amount

At 31 December 2023

393,986

At 31 December 2022

393,986

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Sutton's Packaging Limited

Ordinary Shares

100%

100%

 

     

Subsidiary undertakings

Sutton's Packaging Limited

The principal activity of Sutton's Packaging Limited is the sale of tissue and packaging materials.

The above subsidiary companies are registered in England and Wales

 

Brown Brothers Group Limited
(Registration number: 01756257)

Notes to the Financial Statements for the Year Ended 31 December 2023

6

Stocks

2023
£

2022
£

Work in progress

73,985

60,000

Finished goods and goods for resale

731,299

1,179,757

Goods in transit

104,682

147,490

909,966

1,387,247

7

Debtors

2023
£

2022
£

Trade debtors

852,006

671,554

Other debtors

-

5,210

Prepayments and accrued income

28,523

25,394

Total current trade and other debtors

880,529

702,158

8

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

771,827

700,232

Trade creditors

 

423,088

625,558

Amounts owed to group undertakings

 

100,000

132,355

Taxation and social security

 

130,111

173,386

Other creditors

 

5,005

6,723

Accrued expenses

 

28,750

33,827

 

1,458,781

1,672,081

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

89,052

157,844

 

Brown Brothers Group Limited
(Registration number: 01756257)

Notes to the Financial Statements for the Year Ended 31 December 2023

9

Loans and borrowings

2023
 £

2022
 £

Current loans and borrowings

Bank borrowings

60,550

59,689

Invoice discounting facility

624,620

539,386

Hire purchase liabilities

7,585

17,571

Bank overdrafts

79,072

83,586

771,827

700,232

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

89,052

149,910

Hire purchase contracts

-

7,934

89,052

157,844

The above bank borrowings and invoice discounting facilities are secured by a fixed and floating charge over the assets of the company.

The hire purchase liabilities are secured on the individual assets financed.

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £109,979 (2022 - £165,630). The total amounts due within one year is £55,651 (2022 - £55,651).

 

Brown Brothers Group Limited
(Registration number: 01756257)

Notes to the Financial Statements for the Year Ended 31 December 2023

11

Related party transactions

Transactions with directors

2023

At 1 January 2023
£

Advances to director
£

Repayments by director
£

At 31 December 2023
£

Interest free loan account

-

9,136

(9,136)

-

 

-

9,136

(9,136)

-

       

 

2022

At 1 January 2022
£

Advances to director
£

Repayments by director
£

At 31 December 2022
£

Interest free loan account

5,190

9,452

(14,642)

-

 

5,190

9,452

(14,642)

-

       

 

The company has taken advantage of the exemptions in FRS 102 Section 1A from disclosing transactions with other members of the group.

12

Parent and ultimate parent undertaking

The company's immediate parent is Norwegian Paper UK Limited, incorporated in England & Wales.

 The ultimate parent is Norwegian Paper Holdings AS, incorporated in Norway.

 The most senior parent entity producing publicly available financial statements is Norwegian Paper Holdings AS.

The parent of the largest group in which these financial statements are consolidated is Norwegian Paper Holdings AS, incorporated in Norway.

The address of Norwegian Paper Holdings AS is:

PB163, 48 91
Grimstad
Osterkogen 20, NO-4879
Grimstad
Norway