Company registration number 12333092 (England and Wales)
BPE HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
BPE HOLDINGS LIMITED
COMPANY INFORMATION
Directors
J P Bimson
J Bimson
M J Cullen
L A Marriott
(Appointed 8 February 2023)
D Norman
(Appointed 8 February 2023)
Company number
12333092
Registered office
Unit 17-18, Bradley Hall Trading Estate
Bradley Lane
Standish
Wigan
WN6 0XQ
Auditor
JS. Audit Limited
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
Business address
Unit 17-18, Bradley Hall Trading Estate
Bradley Lane
Standish
Wigan
WN6 0XQ
Bankers
HSBC Bank PLC
2-4 St Ann's Square
Manchester
M2 7HD
Handelsbanken PLC
3 Thomas More Square
London
E1W 1WY
BPE HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 31
BPE HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 1 -

The directors present the strategic report for the year ended 30 April 2023.

Review of the business

Turnover for the year ended 30 April 2023 was £27.7m (2022: £14.5m). Profit for the year ended 30 April 2023 was £936,944 (2022: £473,964). The Group’s Balance Sheet position as of 30 April 2023 shows a positive net asset position amounting to £2.4m (2022: £2.2m).

During the year to 30 April 2023, for a six-month period from August 2022 to January 2023, the Group’s sales doubled, predominantly because of increased demand for Power Generators in Europe. The demand increase was caused by three factors.

1.The conflict between Russia and Ukraine, driving demand in Ukraine for back-up power, and in turn, Power Generators

2.The German government advising its citizens to purchase a Power Generator to mitigate the impact of potential power outages which could be caused because of the conflict between Russia and Ukraine (Russia threatening to cut off power supply to Germany)

3.The on-boarding of two large, blue chip, DIY retailers in Germany as a route to market to satisfy the increase in demand driven by the above two factors.

The increase in sales and price decreases from suppliers drove the increase in profits for the Group.

From February 2023 UK and Europe sales saw a downturn because end consumer demand had been saturated and our customers, the retailers, were therefore left with excess stock. This downturn has continued into 2024. Please refer to note 1.3 for further details.

Principal risks and uncertainties

A brief summary of the main business risks and mitigations in place for these are detailed below:

1.Sales demand reduction – the business mitigates this risk by operating a diversified sales demographic; It operates in multiple product categories across multiple geographies in both business to business and direct to consumer markets via its own websites, Amazon and eBay.

2.Shipping delays on products from our suppliers in China – the business mitigates this risk by carrying adequate inventory cover

3.The weakening of GBP against the USD, impacting on the cost of our product – the business mitigates this risk via a currency hedging strategy

4.Increased container shipping costs – the business protects its margin by frequent product costing reviews and implementing selling price increases

Key performance indicators

The group monitors progress using the below key performance indicators:

 

             2023             2022

                             

             £000's    % of sale     £000's     % of sale

Turnover             27,733              14,522    

Gross Profit         9,308    33.6%         4,211    29.0%

Distribution costs         (2,713)    -9.8%         (1,392)    -9.6%

Administrative expenses     (4,872)    -17.6%         (2,323)    -16.0%

Op Profit             1,723    6.2%         508    3.5%

BPE HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 2 -

On behalf of the board

M J Cullen
Director
24 September 2024
BPE HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 April 2023.

Principal activities

The principal activity of group continued to be that of sales of power tools and winches. The company is a holding company.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £502,837. The directors do not recommend payment of a further dividend.

Directors

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

J P Bimson
J Bimson
M J Cullen
L A Marriott
(Appointed 8 February 2023)
D Norman
(Appointed 8 February 2023)
Financial instruments
Liquidity risk

The Group manages its cash to minimise its borrowing requirements to minimise interest costs, whilst ensuring the Group has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The Group is exposed to base interest rate risk on the three-year, fixed term, repayment loan.  The Directors monitor changes in the interest rate and take appropriate action as and when deemed necessary.

Foreign currency risk

The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign currency risk through exchange rate fluctuations.  The Directors have mitigated the forecasted currency exchange requirements for the next 12 months in full, with fixed rate, forward hedging contracts.  The only foreign currency risk therefore lies in there being a larger requirement for currency exchange than forecasted, as the forecasted currency exchange requirements are fully hedged.

Credit risk

Debtors of all customers who trade on credit terms are insured via a credit insurance policy held.  Credit terms and limits are set after approval, which involves the insurer conducting a credit search on the customer.

Acquisition of own shares

During the year a redemption of shares took place, please refer to note 23 for further details.

Future developments

During April 2023, the business entered the North American market with its other product range, Winches, with in year sales to 30 April 2024 of £6m. This growth meant that despite the downturn in sales in the UK and European markets on Power Generators, the Group still generated enough cash to cover its overheads, replenish stocks and partially repay the trade loans.

Auditor

JS. Audit Limited were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

BPE HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 4 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
M J Cullen
Director
24 September 2024
BPE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BPE HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of BPE Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information 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:

BPE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BPE HOLDINGS LIMITED
- 6 -
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 their 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, included within the directors' report, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities and fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities including fraud is detailed below.

Based on our understanding of the company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, the Companies Act 2006, UK tax, employment, pension and health and safety legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements and the risk of fraud in revenue recognition.

BPE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BPE HOLDINGS LIMITED
- 7 -

Our procedures to respond to risks identified included the following:

 

 

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

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Other matters

The prior period financial statements were unaudited.

Use of our report

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

Christopher Moss BSc F.C.A. (Senior Statutory Auditor)
For and on behalf of JS. Audit Limited
25 September 2024
Chartered Accountants
Statutory Auditor
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
BPE HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
27,733,488
14,521,614
Cost of sales
(18,425,619)
(10,311,110)
Gross profit
9,307,869
4,210,504
Distribution costs
(2,712,631)
(1,392,296)
Administrative expenses
(4,871,754)
(2,323,078)
Other operating income
-
12,754
Operating profit
4
1,723,484
507,884
Interest receivable and similar income
8
-
0
4
Interest payable and similar expenses
9
(300,104)
(19,604)
Profit before taxation
1,423,380
488,284
Tax on profit
10
(486,436)
(14,320)
Profit for the financial year
936,944
473,964
Other comprehensive income
Currency translation differences
26,043
(3,210)
Total comprehensive income for the year
962,987
470,754
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

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

BPE HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2023
30 April 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
104,529
118,623
Other intangible assets
12
168,956
142,761
Total intangible assets
273,485
261,384
Tangible assets
13
162,393
105,257
435,878
366,641
Current assets
Stocks
16
8,221,399
2,605,599
Debtors
17
4,726,813
4,017,393
Cash at bank and in hand
1,715,421
1,145,941
14,663,633
7,768,933
Creditors: amounts falling due within one year
18
(12,482,115)
(5,932,972)
Net current assets
2,181,518
1,835,961
Total assets less current liabilities
2,617,396
2,202,602
Provisions for liabilities
Provisions
20
253,639
-
0
Deferred tax liability
21
-
0
25,710
(253,639)
(25,710)
Net assets
2,363,757
2,176,892
Capital and reserves
Called up share capital
23
95
100
Share premium account
24
205,992
205,992
Capital redemption reserve
24
13
8
Profit and loss reserves
24
2,157,657
1,970,792
Total equity
2,363,757
2,176,892

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
24 September 2024
M J Cullen
Director
Company registration number 12333092 (England and Wales)
BPE HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2023
30 April 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
375,176
374,372
Current assets
Debtors
17
396,316
161,812
Cash at bank and in hand
7,530
5,216
403,846
167,028
Creditors: amounts falling due within one year
18
(511,407)
(500)
Net current (liabilities)/assets
(107,561)
166,528
Net assets
267,615
540,900
Capital and reserves
Called up share capital
23
95
100
Share premium account
24
205,992
205,992
Capital redemption reserve
24
13
8
Profit and loss reserves
24
61,515
334,800
Total equity
267,615
540,900

As permitted by s408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £502,837 (2022 - £645,872 profit).

The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
24 September 2024
M J Cullen
Director
Company registration number 12333092 (England and Wales)
BPE HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 May 2021
108
205,992
-
0
1,811,110
2,017,210
Year ended 30 April 2022:
Profit for the year
-
-
-
473,964
473,964
Other comprehensive income:
Currency translation differences
-
-
-
(3,210)
(3,210)
Total comprehensive income
-
-
-
470,754
470,754
Dividends
11
-
-
-
(104,042)
(104,042)
Redemption of shares
23
(8)
-
8
(207,030)
(207,030)
Balance at 30 April 2022
100
205,992
8
1,970,792
2,176,892
Year ended 30 April 2023:
Profit for the year
-
-
-
936,944
936,944
Other comprehensive income:
Currency translation differences
-
-
-
26,043
26,043
Total comprehensive income
-
-
-
962,987
962,987
Dividends
11
-
-
-
(502,837)
(502,837)
Redemption of shares
23
(5)
-
5
(273,285)
(273,285)
Balance at 30 April 2023
95
205,992
13
2,157,657
2,363,757
BPE HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 May 2021
108
205,992
-
0
-
0
206,100
Year ended 30 April 2022:
Profit and total comprehensive income for the year
-
-
-
645,872
645,872
Dividends
11
-
-
-
(104,042)
(104,042)
Redemption of shares
23
(8)
-
8
(207,030)
(207,030)
Balance at 30 April 2022
100
205,992
8
334,800
540,900
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
-
502,837
502,837
Dividends
11
-
-
-
(502,837)
(502,837)
Redemption of shares
23
(5)
-
5
(273,285)
(273,285)
Balance at 30 April 2023
95
205,992
13
61,515
267,615
BPE HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
27
(2,271,909)
(2,486,993)
Interest paid
(300,104)
(19,604)
Income taxes paid
(101,087)
(130,677)
Net cash outflow from operating activities
(2,673,100)
(2,637,274)
Investing activities
Purchase of intangible assets
(62,751)
(143,920)
Purchase of tangible fixed assets
(122,256)
(51,311)
Interest received
-
0
4
Net cash used in investing activities
(185,007)
(195,227)
Financing activities
Purchase of own shares
(273,285)
(207,030)
Proceeds from new bank loans
6,801,542
2,576,092
Repayment of bank loans
(2,623,876)
-
Dividends paid to equity shareholders
(502,837)
(104,042)
Net cash generated from financing activities
3,401,544
2,265,020
Net increase/(decrease) in cash and cash equivalents
543,437
(567,481)
Cash and cash equivalents at beginning of year
1,145,941
1,716,632
Effect of foreign exchange rates
26,043
(3,210)
Cash and cash equivalents at end of year
1,715,421
1,145,941
BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 14 -
1
Accounting policies
Company information

BPE Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 17-18 Bradley Hall Trading Estate, Bradley Lane, Standish, Wigan, Lancashire, WN6 0XQ.

 

The group consists of BPE Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company BPE Holdings Limited and all of its subsidiaries.

 

Subsidiaries are consolidated using either the acquisition or merger accounting method. Under the acquisition method, the results are incorporated from the date that control passes. Under merger accounting, the total results are consolidated.

 

All financial statements are made up to 30 April 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Going concern

The group’s working capital requirements are provided through HSBC short term trade loans secured against the stock to which they relate. At 30 April 2023 the total amount advanced to the group was £6,753,758 (see note 19).

After the year end there was a reduction in sales resulting in a cash shortfall.

In June 2023 and November 2023 the above trade loans could not be settled as the amounts were falling due.

In June 2023 the bank extended the repayment dates by 150 days and in November 2023 further extensions were applied to the trade loans repayment periods, which were specific to each loan.

In January 2024 the business was not in a position to settle the trade loans, despite the extensions granted by HSBC.

On 23 September 2024 the group agreed a new medium term repayment loan facility with HSBC of £5,600,000 to 30 April 2027 at an interest rate of 3.9% per annum above the Bank of England base rate.

In order to prepare the group’s financial statements on a going concern basis, the directors have considered detailed financial projections covering a period of at least 12 months from the date of approval of the group financial statements (the “Assessment Period”). These projections are based on the group’s business plan for the year ended 30 April 2025 as well as the group’s anticipated activity for the period to December 2026. The directors have considered these financial projections in conjunction with the group’s available loan facilities described above.

The directors have also considered sensitivity analysis performed on these forecasts to model the impact of potential reductions in sales of 10%.

The sensitised forecasts indicate that the group can continue to operate within its new loan facilities and remain compliant with associated loan covenants during the Assessment Period.

After considering the forecast information and new facilities, the directors have concluded that there is a reasonable expectation that the group 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 these financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for power products and winches provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 16 -
1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
10-20% per annum straight line basis
1.7
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Plant and equipment
15-25% per annum on reducing balance basis
Fixtures and fittings
25% per annum on reducing balance basis
Computers
25% per annum on reducing balance basis
Motor vehicles
25% per annum on reducing balance basis

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 recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 17 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

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.

1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 18 -
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 group 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.

Classification of financial liabilities

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

Basic 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.

Derecognition of financial liabilities

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

1.13
Equity instruments

Equity instruments issued by the group 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 group.

BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 19 -
1.14
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.15
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 group’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 tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.17
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.

BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 20 -
1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
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 leased asset are consumed.

1.20
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.21
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.22

Translation of group companies

For the purpose of presenting consolidated financial statements, the assets are liabilities of the group's foreign operations are translated from their functional currency to Sterling (£) using the closing exchange rate. Income and expenses are translated using the average rate for the period, unless exchange rates fluctuated significantly during that period, in which case the exchange rates at dates of the transactions are used. Exchange differences arising on the translation of group companies are recognised in other comprehensive income and are not reclassified to profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The directors consider the critical judgements made in preparing the financial statements to be in relation to their assessment of the recoverability of investment balances and related party loans, including the estimation of any required provisions and their assessment of going concern in note 1.3.

BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 21 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Power products and winches
27,733,488
14,521,614
2023
2022
£
£
Turnover analysed by geographical market
UK
6,998,258
5,934,499
Europe
19,330,091
5,437,994
Canada
1,064,445
2,965,063
Rest of the World
340,694
184,058
27,733,488
14,521,614
2023
2022
£
£
Other revenue
Interest income
-
4
Grants received
-
12,754
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
311,706
233,180
Forward currency contracts gains
(138,411)
-
Government grants
-
(12,754)
Depreciation of owned tangible fixed assets
55,954
37,933
Provision for contractual damages included in purchases (see note 20)
253,639
-
Loss on disposal of tangible fixed assets
9,166
-
Amortisation of intangible assets
38,073
15,675
Loss on disposal of intangible assets
12,577
-
Operating lease charges
99,473
97,084

 

The amortisation of intangible assets is included within administration expenses.

BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 22 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,000
-
Audit of the financial statements of the company's subsidiaries
17,250
-
20,250
-
For other services
Taxation compliance services
3,000
-
All other non-audit services
9,000
-
12,000
-
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration
24
21
-
-
Production
10
5
-
-
Sales
5
2
-
-
Total
39
28
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,837,289
928,536
-
0
-
0
Social security costs
209,121
113,588
-
-
Pension costs
66,184
64,616
-
0
-
0
2,112,594
1,106,740
-
0
-
0
BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 23 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
228,445
68,971
Company pension contributions to defined contribution schemes
44,081
37,670
272,526
106,641

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 3).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
137,805
n/a
Company pension contributions to defined contribution schemes
1,321
n/a

As total directors' remuneration was less than £200,000 in the prior year, no disclosure is provided for that year.

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
-
0
4
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
291,104
-
Other interest on financial liabilities
9,000
19,604
Total finance costs
300,104
19,604
BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 24 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
6,219
Adjustments in respect of prior periods
-
0
(72)
Total UK current tax
-
0
6,147
Foreign current tax on profits for the current period
592,860
-
0
Total current tax
592,860
6,147
Deferred tax
Origination and reversal of timing differences
(137,583)
8,173
Adjustment in respect of prior periods
31,159
-
0
Total deferred tax
(106,424)
8,173
Total tax charge
486,436
14,320

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
1,423,380
488,284
Expected tax charge based on the standard rate of corporation tax in the UK of 19.49% (2022: 19.00%)
277,417
92,774
Tax effect of expenses that are not deductible in determining taxable profit
10,104
11,050
Adjustments in respect of prior years
31,160
(72)
Effect of change in corporation tax rate
-
13,649
Permanent capital allowances in excess of depreciation
(6,833)
(10,034)
Amortisation on assets not qualifying for tax allowances
2,746
2,678
Deferred tax not provided in prior year
-
0
(31,159)
Difference in corporation and deferred tax rates
155,690
-
0
Tax not provided on foreign subsidiaries
-
0
(64,566)
Foreign Levy
16,152
-
0
Taxation charge
486,436
14,320
BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 25 -
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
502,837
104,042
12
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 May 2022
352,337
151,421
503,758
Additions
-
0
62,751
62,751
Disposals
-
0
(15,947)
(15,947)
At 30 April 2023
352,337
198,225
550,562
Amortisation and impairment
At 1 May 2022
233,714
8,660
242,374
Amortisation charged for the year
14,094
23,979
38,073
Disposals
-
0
(3,370)
(3,370)
At 30 April 2023
247,808
29,269
277,077
Carrying amount
At 30 April 2023
104,529
168,956
273,485
At 30 April 2022
118,623
142,761
261,384
The company had no intangible fixed assets at 30 April 2023 or 30 April 2022.
BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 26 -
13
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2022
77,151
163,017
110,515
13,200
363,883
Additions
38,464
29,949
53,843
-
0
122,256
Disposals
(5,629)
(32,386)
(36,190)
-
0
(74,205)
At 30 April 2023
109,986
160,580
128,168
13,200
411,934
Depreciation and impairment
At 1 May 2022
58,191
114,943
72,292
13,200
258,626
Depreciation charged in the year
14,256
19,484
22,214
-
0
55,954
Eliminated in respect of disposals
(4,775)
(26,878)
(33,386)
-
0
(65,039)
At 30 April 2023
67,672
107,549
61,120
13,200
249,541
Carrying amount
At 30 April 2023
42,314
53,031
67,048
-
0
162,393
At 30 April 2022
18,960
48,074
38,223
-
0
105,257
The company had no tangible fixed assets at 30 April 2023 or 30 April 2022.
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
375,176
374,372
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2022
374,372
Additions
804
At 30 April 2023
375,176
Carrying amount
At 30 April 2023
375,176
At 30 April 2022
374,372
BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 27 -
15
Subsidiaries

Details of the company's subsidiaries at 30 April 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Winch Solutions limited
Unit 17-18, Bradley Hall Trading Estate, Bradley Lane, Standish, WN6 0XQ
Ordinary shares
100.00
BPE Retail Limited
Unit 17-18, Bradley Hall Trading Estate, Bradley Lane, Standish, WN6 0XQ
Ordinary shares
100.00
BPE Deutschland
Altrottstraße 31, D-69190 Walldorf
Ordinary shares
100.00
BPE North America
300 Creek View Road, Suite 209, Newark, Delaware, 19711
Ordinary shares
100.00

 

16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
8,221,399
2,605,599
-
0
-
0
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,560,172
3,870,819
-
0
-
0
Amounts owed by group undertakings
-
-
396,316
161,812
Derivative financial instruments
138,411
-
-
-
Other debtors
854,810
79,474
-
0
-
0
Prepayments and accrued income
1,092,706
67,100
-
0
-
0
4,646,099
4,017,393
396,316
161,812
Amounts falling due after more than one year:
Deferred tax asset (note 21)
80,714
-
0
-
0
-
0
Total debtors
4,726,813
4,017,393
396,316
161,812
BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 28 -
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
6,753,758
2,576,092
-
0
-
0
Trade creditors
1,057,744
2,533,695
-
0
-
0
Corporation tax payable
598,960
107,187
-
0
-
0
Other taxation and social security
244,020
272,916
-
-
Other creditors
640,348
25,469
503,925
-
0
Accruals and deferred income
3,187,285
417,613
7,482
500
12,482,115
5,932,972
511,407
500
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
6,753,758
2,576,092
-
0
-
0
Payable within one year
6,753,758
2,576,092
-
0
-
0

The bank loans are short term trade loans, secured against the stock to which they relate. Interest is charged on the trade loans at 3.25% above bank base rate.

20
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Other provisions
253,639
-
-
-
Movements on provisions:
Group
£
At 1 May 2022
-
Additional provisions in the year
253,639
At 30 April 2023
253,639

Other provisions relate to a claim for contractual damages.

BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 29 -
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
-
26,315
(67,103)
-
Tax losses
-
-
147,052
-
Short term timing differences
-
(605)
765
-
-
25,710
80,714
-
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 May 2022
25,710
-
Credit to profit or loss
(106,424)
-
Asset at 30 April 2023
(80,714)
-

The deferred tax asset set out above relates to both accelerated capital allowances and tax losses for offset against future accounting periods which are expected to reverse in 4 years and 3 years respectively.

22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
66,184
64,616

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

At the year-end accrued pension contributions amounted to £6,944 (2022: £3,892).

 

 

BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 30 -
23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 1p each
4,242
4,242
42
42
B Ordinary shares of 1p each
2,107
2,107
21
21
C Ordinary shares of 1p each
462
462
5
5
D Ordinary shares of 1p each
-
500
-
5
F Ordinary shares of 1p each
2,689
2,689
27
27
9,500
10,000
95
100

During the year the company purchased 500 D Ordinary shares of £0.01 for a consideration of £273,285.

24
Reserves
Share premium account

The amount above the nominal value of shares issued less transaction costs.

Capital redemption reserve

The nominal value of the shares repurchased by the company.

Profit and loss reserves

Cumulative profits and losses net of distributions to shareholders.

25
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
88,940
97,759
-
-
Between two and five years
299,233
318,174
-
-
In over five years
29,166
99,166
-
-
417,339
515,099
-
-
26
Controlling party

The controlling party is considered to be Mr J Bimson by virtue of his majority shareholding in the parent company.

BPE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 31 -
27
Cash absorbed by group operations
2023
2022
£
£
Profit for the year after tax
936,944
473,964
Adjustments for:
Taxation charged
486,436
14,320
Finance costs
300,104
19,604
Investment income
-
0
(4)
Loss on disposal of tangible fixed assets
9,166
-
Loss on disposal of intangible assets
12,577
-
Amortisation and impairment of intangible assets
38,073
15,675
Depreciation and impairment of tangible fixed assets
55,954
37,933
Increase in provisions
253,639
-
Movements in working capital:
Increase in stocks
(5,615,800)
(1,652,609)
Increase in debtors
(628,706)
(4,290,376)
Increase in creditors
1,879,704
2,894,500
Cash absorbed by operations
(2,271,909)
(2,486,993)
28
Analysis of changes in net debt - group
1 May 2022
Cash flows
Exchange rate movements
30 April 2023
£
£
£
£
Cash at bank and in hand
1,145,941
543,437
26,043
1,715,421
Borrowings excluding overdrafts
(2,576,092)
(4,177,666)
-
(6,753,758)
(1,430,151)
(3,634,229)
26,043
(5,038,337)
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