Company Registration No. 10369765 (England and Wales)
BF INTER LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BF INTER LTD
COMPANY INFORMATION
Directors
Mr R J Cook
Mr R L Simmonds
Company number
10369765
Registered office
1350-1360 Montpellier Court
Brockworth
Gloucester
GL3 4AH
Auditor
Kendall Wadley LLP
Granta Lodge
71 Graham Road
Malvern
Worcestershire
WR14 2JS
BF INTER LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
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
Company statement of cash flows
14
Notes to the financial statements
15 - 34
BF INTER LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

 

The principal activity of the company is that of a holding company for a UK financial services group of companies.

Review of the business

The last year saw headwinds caused by inflation and base rate rises. The company raised a healthy level of new investment into the business which has assisted with the continued growth. Over the course of 2023 the business progressed with projects aimed to diversify revenue streams and to widen the customer base.

 

The results for the group show a pre tax profit of £4,336,581 for the year (2022 : £4,159,007).

 

The shareholder's funds amount to a surplus of £4,815,467 (2022 : £3,097,778 surplus).

Principal risks and uncertainties

Key risks and uncertainties relate to inflation and base rate increases. Investments performed in line with expectations. The Group has continued to raise a healthy flow of new funds and investment management activities continue to generate revenue. The management team are confident in the group's resilience and ability to trade and adjust to the ‘new normal’.

Section 172 (1) Statement

The directors have acted in a way that they considered, in good faith, to be the most likely to promote the success of BF Inter Ltd for the benefit of its stakeholders, and in doing so had regard, amongst other matters to:

These matters were achieved by the directors in the following ways:

Long term view

The directors carry out a robust and thorough assessment of the risks faced by the company, this enables the strategic objectives and long-term viability of the company and allows it to remain in a healthy and stable condition.

Employees

Our employees are critical to the progression of the company moving forwards, we value every member and improve systems to enhance the working environment where possible. The working conditions (post Covid-19) have allowed our teams to flexibly work from home. An enhanced employee benefits package is also in place.

Customers

We aim to deliver a truly outstanding customer experience that is clear, concise and provide a rewarding journey.

We have made a portal which empowers our customers to obtain real time information and have efficient communication channels that enables strong business relationships.

Suppliers

We aim to treat suppliers fairly and pay them within agreed timescales, holding ourselves to high standards of business conduct.

BF INTER LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Community and environment

Environmental, social and governance (ESG) is a core pillar of the company’s framework. We work to ensure that any impact on the environment is positive; that we always consider social responsibility; and that the group makes governance a priority.

On behalf of the board

Mr R J Cook
Director
10 September 2024
BF INTER LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company is that of a holding company for a UK financial services group of companies.

Results and dividends

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

Ordinary dividends were paid amounting to £2,000,000. 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:

Mr R J Cook
Mr R L Simmonds
Auditor

In accordance with the company's articles, a resolution proposing that Kendall Wadley LLP be reappointed as auditor of the group will be put at a General Meeting.

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
Mr R J Cook
Director
10 September 2024
BF INTER LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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.

BF INTER LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BF INTER LTD
- 5 -
Opinion

We have audited the financial statements of BF Inter Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 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, the company 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:

BF INTER LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BF INTER LTD
- 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, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

BF INTER LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BF INTER LTD
- 7 -

We assessed the susceptibility of the group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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.

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.

Elizabeth Needham ACA CTA (VAT) (Senior Statutory Auditor)
For and on behalf of Kendall Wadley LLP
10 September 2024
Chartered Accountants
Statutory Auditor
Granta Lodge
71 Graham Road
Malvern
Worcestershire
WR14 2JS
BF INTER LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
22,942,390
20,635,617
Cost of sales
(419,531)
(325,739)
Gross profit
22,522,859
20,309,878
Administrative expenses
(18,195,183)
(16,097,588)
Other operating income
6,885
18,032
Operating profit
4
4,334,561
4,230,322
Interest receivable and similar income
8
19,417
4,027
Interest payable and similar expenses
9
(50,947)
(37,664)
Amounts written off investments
10
33,550
(37,678)
Profit before taxation
4,336,581
4,159,007
Tax on profit
11
(639,848)
(507,300)
Profit for the financial year
3,696,733
3,651,707
Other comprehensive income
Revaluation of tangible fixed assets
20,956
-
0
Total comprehensive income for the year
3,717,689
3,651,707
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.

BF INTER LTD
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
73,090
100,079
Tangible assets
14
130,682
831,193
Investment properties
15
670,000
-
0
Investments
16
341,495
257,948
1,215,267
1,189,220
Current assets
Debtors
18
5,953,164
5,735,666
Cash at bank and in hand
1,513,148
985,275
7,466,312
6,720,941
Creditors: amounts falling due within one year
19
(3,280,516)
(4,228,187)
Net current assets
4,185,796
2,492,754
Total assets less current liabilities
5,401,063
3,681,974
Creditors: amounts falling due after more than one year
20
(557,647)
(551,165)
Provisions for liabilities
23
(27,949)
(33,031)
Net assets
4,815,467
3,097,778
Capital and reserves
Called up share capital
25
1,000
1,000
Revaluation reserve
20,956
-
0
Profit and loss reserves
4,793,511
3,096,778
Total equity
4,815,467
3,097,778
The financial statements were approved by the board of directors and authorised for issue on 10 September 2024 and are signed on its behalf by:
10 September 2024
Mr R J Cook
Director
BF INTER LTD
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
16
595,673
595,673
Current assets
Debtors
18
5,263,041
3,991,125
Cash at bank and in hand
403
2,945
5,263,444
3,994,070
Creditors: amounts falling due within one year
19
(5,765,844)
(4,487,528)
Net current liabilities
(502,400)
(493,458)
Total assets less current liabilities
93,273
102,215
Capital and reserves
Called up share capital
25
1,000
1,000
Profit and loss reserves
92,273
101,215
Total equity
93,273
102,215

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the period was £1,991,058 (2022 - £2,824,807 profit).

The financial statements were approved by the board of directors and authorised for issue on 10 September 2024 and are signed on its behalf by:
10 September 2024
Mr R J Cook
Director
Company Registration No. 10369765
BF INTER LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
1,000
-
0
2,273,439
2,274,439
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
3,651,707
3,651,707
Dividends
12
-
-
(2,828,368)
(2,828,368)
Balance at 31 December 2022
1,000
-
0
3,096,778
3,097,778
Year ended 31 December 2023:
Profit for the year
-
-
3,696,733
3,696,733
Other comprehensive income:
Revaluation of tangible fixed assets
-
20,956
-
20,956
Total comprehensive income for the year
-
20,956
3,696,733
3,717,689
Dividends
12
-
-
(2,000,000)
(2,000,000)
Balance at 31 December 2023
1,000
20,956
4,793,511
4,815,467
BF INTER LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
1,000
104,775
105,775
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
2,824,808
2,824,808
Dividends
12
-
(2,828,368)
(2,828,368)
Balance at 31 December 2022
1,000
101,215
102,215
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,991,058
1,991,058
Dividends
12
-
(2,000,000)
(2,000,000)
Balance at 31 December 2023
1,000
92,273
93,273
BF INTER LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
3,138,748
3,807,006
Interest paid
(50,947)
(37,664)
Income taxes paid
(410,561)
(340,411)
Net cash inflow from operating activities
2,677,240
3,428,931
Investing activities
Purchase of tangible fixed assets
(59,321)
(47,471)
Proceeds on disposal of tangible fixed assets
13,503
-
Purchase of fixed asset investments
(49,997)
(116,733)
Directors loans
-
324,063
Interest received
19,417
4,027
Net cash (used in)/generated from investing activities
(76,398)
163,886
Financing activities
Repayment of bank loans
(9,498)
(92,990)
Payment of finance leases obligations
(63,471)
(50,584)
Dividends paid to equity shareholders
(2,000,000)
(2,828,368)
Net cash used in financing activities
(2,072,969)
(2,971,942)
Net increase in cash and cash equivalents
527,873
620,875
Cash and cash equivalents at beginning of year
985,275
364,400
Cash and cash equivalents at end of year
1,513,148
985,275
BF INTER LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
31
(5,292)
(324,821)
Income taxes refunded/(paid)
2,750
(163)
Net cash outflow from operating activities
(2,542)
(324,984)
Investing activities
Directors loans
-
0
324,063
Interest received
-
0
3,214
Net cash (used in)/generated from investing activities
-
327,277
Net (decrease)/increase in cash and cash equivalents
(2,542)
2,293
Cash and cash equivalents at beginning of year
2,945
652
Cash and cash equivalents at end of year
403
2,945
BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

BF Inter Ltd (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is 1350-1360 Montpellier Court, Brockworth, Gloucester, GL3 4AH.

 

The group consists of BF Inter Ltd 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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.

The consolidated financial statements incorporate those of BF Inter Ltd and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 December 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.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group and 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.

BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.4
Turnover

Turnover comprises revenue recognised by the group in respect of financial agency services, other investment products during the period, rentals receivable, arrangement fees and monitoring fees exclusive of Value Added Tax.

 

The group recognises the commission income from investment portfolios completed only when full legal title has been granted.

 

The group recognises the investment management fees in line with the agreements held with the investors.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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

Freehold land and buildings
2% straight line on original cost of assets
Improvements to leasehold buildings
Over the life of the lease
Fixtures and fittings
25% to 33% straight line on original cost of assets
Computers
25% to 33% straight line on original cost of assets
Motor vehicles
25% straight line on original cost of assets

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.

On reclassification of the freehold property, the freehold property was revalued to its fair value. The fair value of the land and buildings is considered to be the market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.

 

BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.7
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

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.

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 is estimated to be less than its carrying amount, the carrying amount of the asset 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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Cash at bank and in hand

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.

BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.11
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.

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, including creditors, bank loans and loans from fellow group companies 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.

BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial liabilities

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

1.12
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.

1.13
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.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

1.15
Retirement benefits

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

BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.16
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

1.17
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.

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.

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Arrangement and monitoring fees
11,250,087
9,330,235
Management and administration fees
6,229,069
5,248,715
Sales fees
2,795,522
3,080,678
Investment management fees
1,966,015
1,957,016
Rent receiveable
88,690
98,785
Legal fees
123,049
407,886
Exit fees
489,958
512,302
22,942,390
20,635,617
BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 21 -
2023
2022
£
£
Turnover analysed by geographical market
UK sales
22,942,390
20,635,617
2023
2022
£
£
Other revenue
Interest income
19,417
4,027
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Exchange losses
1,370
1,409
Depreciation of owned tangible fixed assets
97,286
147,429
Amortisation of intangible assets
26,989
26,989
Operating lease charges
161,500
191,674
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
11,690
7,600
Audit of the financial statements of the company's subsidiaries
49,570
37,980
61,260
45,580
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
Administrative
148
135
-
-
Directors
2
2
2
2
150
137
2
2
BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
12,911,053
11,013,021
-
0
-
0
Social security costs
1,449,094
1,343,733
-
-
Pension costs
690,701
533,860
-
0
-
0
15,050,848
12,890,614
-
0
-
0

During the year redundancy payments made or committed amounted to are £30,000 (2022 : £40,167).

7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
846,245
854,992
Company pension contributions to defined contribution schemes
26,640
52,260
872,885
907,252
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
502,245
507,496
Company pension contributions to defined contribution schemes
6,000
31,410

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 : 2).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
19,417
4,027
BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
32,217
17,735
Other finance costs:
Interest on finance leases and hire purchase contracts
17,055
11,478
Other interest
1,675
8,451
Total finance costs
50,947
37,664
10
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Gain/(loss) on financial assets held at fair value through profit or loss
31,710
(45,379)
Other gains/(losses)
Gain on disposal of financial assets held at fair value through profit or loss
-
10,713
Amounts written back to financial assets held at cost
1,840
-
Other gains and losses
-
(3,012)
33,550
(37,678)
BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,041,289
807,347
Adjustments in respect of prior periods
(396,819)
(319,260)
Total current tax
644,470
488,087
Deferred tax
Origination and reversal of timing differences
(4,622)
12,304
Changes in tax rates
-
0
6,909
Total deferred tax
(4,622)
19,213
Total tax charge
639,848
507,300

The change in UK corporation tax rate from 19% to 25% enacted in the Finance Act 2021 for profits arising after 1 April 2023 led to the deferred tax liability being revalued based on these rates changes.

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
4,336,581
4,159,007
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
1,020,007
790,211
Tax effect of expenses that are not deductible in determining taxable profit
14,863
12,545
Effect of change in corporation tax rate
-
6,909
Permanent capital allowances in excess of depreciation
-
(2,710)
Depreciation on assets not qualifying for tax allowances
3,342
8,403
Amortisation on assets not qualifying for tax allowances
6,345
5,128
Adjustments in respect of financial assets
(7,890)
5,652
Research and development tax credit
(396,819)
(319,260)
Deferred tax adjustments for prior years
-
0
422
Tax expense for the year
639,848
507,300

The adjustment in respect of prior year relates to the research and development claim for 2022. The prior year adjustment in 2022 relates to the 2021 research and development claim.

BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
2,000,000
2,828,368
13
Intangible fixed assets
Group
Goodwill arising on consolidation
£
Cost
At 1 January 2023 and 31 December 2023
269,885
Amortisation and impairment
At 1 January 2023
169,806
Amortisation charged for the year
26,989
At 31 December 2023
196,795
Carrying amount
At 31 December 2023
73,090
At 31 December 2022
100,079
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
14
Tangible fixed assets
Group
Freehold land and buildings
Improvements to leasehold buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost on acquistion
At 1 January 2023
711,932
127,305
137,322
338,757
407,874
1,723,190
Additions
-
0
6,450
8,022
44,849
-
0
59,321
Disposals
-
0
-
0
-
0
(542)
(74,350)
(74,892)
Revaluation
20,956
-
0
-
0
-
0
-
0
20,956
Transfer to investment property
(732,888)
-
0
-
0
-
0
-
0
(732,888)
At 31 December 2023
-
0
133,755
145,344
383,064
333,524
995,687
Depreciation and impairment on acquistion
At 1 January 2023
48,654
124,875
134,448
276,517
307,503
891,997
Depreciation charged in the year
14,235
324
4,189
42,814
35,724
97,286
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(61,389)
(61,389)
Transfer to investment property
(62,889)
-
0
-
0
-
0
-
0
(62,889)
At 31 December 2023
-
0
125,199
138,637
319,331
281,838
865,005
Carrying amount
At 31 December 2023
-
0
8,556
6,707
63,733
51,686
130,682
At 31 December 2022
663,278
2,430
2,874
62,240
100,371
831,193
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022
BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
15
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
-
-
Transfers from owner-occupied property
670,000
-
At 31 December 2023
670,000
-

Investment property comprises of 1145 Regents Court. The fair value of the investment property has been arrived at on the basis of a valuation carried out by the directors. The valuation was made on a yield basis on the open market rental value by reference to market evidence for similar properties.

16
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
17
-
0
-
0
595,673
595,673
Unlisted investments
341,495
257,948
-
0
-
0
341,495
257,948
595,673
595,673
Movements in fixed asset investments
Group
Investments other than loans
£
Cost or valuation
At 1 January 2023
257,948
Additions
49,997
Valuation changes
33,550
At 31 December 2023
341,495
Carrying amount
At 31 December 2023
341,495
At 31 December 2022
257,948
BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 January 2023 and 31 December 2023
595,673
Carrying amount
At 31 December 2023
595,673
At 31 December 2022
595,673
17
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Blackfinch Corporate Services Limited
*
Financial facilities
Ordinary
-
100.00
Blackfinch Financial Limited
*
Financial services
Ordinary
-
100.00
Blackfinch Group Limited
*
Non trading holding company
Ordinary
100.00
-
Blackfinch Investments Limited
*
Agency services for investment products
Ordinary
-
100.00
Origin Investments Limited
*
Financial brokering services
Ordinary
-
100.00
rcs Solutions Ltd
*
Office and facilities management
Ordinary
-
100.00
Blackfinch Adaptations plc
*
Dormant
Ordinary
-
100.00
Blackfinch Holdings Limited
*
Financial investments
Ordinary
-
100.00
Blackfinch Energy Ltd
*
Dormant
Ordinary
-
100.00
Feather Pensions Limited
*
Dormant
Ordinary
-
100.00

Registered office addresses (all UK unless otherwise indicated):

*
1350-1360 Montpellier Court, Brockworth, Gloucester, GL3 4AH
BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
575,751
510,095
-
0
-
0
Amounts owed by group undertakings
-
-
642,734
367,489
Other debtors
4,782,366
3,665,504
4,620,307
3,623,636
Prepayments and accrued income
591,267
1,555,827
-
0
-
0
5,949,384
5,731,426
5,263,041
3,991,125
Deferred tax asset (note 23)
3,780
4,240
-
0
-
0
5,953,164
5,735,666
5,263,041
3,991,125
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
21
8,736
14,704
-
0
-
0
Obligations under finance leases
22
45,737
119,220
-
0
-
0
Payments received on account
37,500
56,700
-
0
-
0
Trade creditors
336,048
494,954
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
5,756,094
4,479,928
Corporation tax payable
1,041,289
807,380
-
0
-
0
Other taxation and social security
559,996
500,319
-
-
Other creditors
125,755
85,567
-
0
-
0
Accruals and deferred income
1,125,455
2,149,343
9,750
7,600
3,280,516
4,228,187
5,765,844
4,487,528
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
440,480
444,010
-
0
-
0
Obligations under finance leases
22
117,167
107,155
-
0
-
0
557,647
551,165
-
-
Amounts included above which fall due after five years are as follows:
Payable by instalments
362,272
379,610
-
-
BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
449,216
458,714
-
0
-
0
Payable within one year
8,736
14,704
-
0
-
0
Payable after one year
440,480
444,010
-
0
-
0

Bank Overdraft

 

The group has granted an unlimited monies guarantee in favour of Lloyds Bank Plc together with other such security as the bank may from time to time hold for the debts and liabilities of the guarantor dated 21 November 2006 and 11 June 2009.

 

Bank Loans

 

The long-term loans are secured by fixed charges over the property at 1145 Regent Court,

 

The loan is also secured by a series of fixed and floating charges over all the assets on Blackfinch Investments Limited a subsidiary undertaking of Blackfinch Group Limited.

 

The loan is over a period of 25 years and interest is charged at base rate plus 2.5% per annum.

22
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
57,303
130,058
-
0
-
0
In two to five years
135,957
116,784
-
0
-
0
193,260
246,842
-
-
Less: future finance charges
(30,356)
(20,467)
-
0
-
0
162,904
226,375
-
0
-
0

Finance lease payments represent rentals payable by the company or group for purchase of motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
23
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
27,949
33,031
-
-
Investments
-
-
3,780
4,240
27,949
33,031
3,780
4,240
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
28,791
-
Credit to profit or loss
(4,622)
-
Liability at 31 December 2023
24,169
-

The deferred tax asset and liability set out above is expected to reverse within the foreseeable future.

24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
690,701
533,860

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.

BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
25
Share capital
Group and company
2023
2022
Issued and fully paid
510 Ordinary A shares of £1 each
510
510
225 Ordinary B shares of £1 each
225
225
185 Ordinary C shares of £1 each
185
185
20 Ordinary D shares of £1 each
20
20
20 Ordinary E shares of £1 each
20
20
20 Ordinary F shares of £1 each
20
20
20 Ordinary G shares of £1 each
20
20
1,000
1,000

All classes of shares shall rank pari passu on a return of capital whether on winding up or dissolution. Every holder of A,B,C,D,E,F,G shares shall have one vote for every share they hold.

26
Financial commitments, guarantees and contingent liabilities

The subsidiary companies of the BF Inter Ltd group have a contingent liability on arrangement fees estimated at £nil (2022 : £300,000), if the terms of the agreement are not satisfied.

 

The subsidiary company Blackfinch Investments Limited is also a guarantor for their product investment companies.

 

 

27
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the group for rental of the properties and office equipment. Leases for property rental are negotiated for an average term of 4 years.

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
161,500
-
-
-
Between two and five years
282,625
-
-
-
444,125
-
-
-
BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
28
Directors' transactions

Dividends totalling £2,000,000 (2022 - £2,828,368) were paid in the year in respect of shares held by the company's directors to their personal companies.

During the year there were transactions with companies the directors have a common interest in.

 

At the year end the amount owed from Stone Barn Consulting Ltd was £2,541,169 (2022 : £2,109,076).

 

At the year end the amount owed from Baldenhall Holdings Ltd was £2,079,138 (2022 : £1,514,560).

 

These amounts are included in other debtors.

29
Controlling party

The ultimate controlling party is Mr R Cook who owns 55% of the share capital.

 

30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,696,733
3,651,707
Adjustments for:
Taxation charged
639,848
507,300
Finance costs
50,947
37,664
Investment income
(19,417)
(4,027)
Amortisation and impairment of intangible assets
26,989
26,989
Depreciation and impairment of tangible fixed assets
97,286
147,429
Loss on investments
-
5,000
Revaluation of investments
(33,550)
45,379
Movements in working capital:
(Increase)/decrease in debtors
(217,959)
(1,344,509)
Increase/(decrease) in creditors
(1,102,129)
734,074
Cash generated from operations
3,138,748
3,807,006
BF INTER LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
31
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
1,991,058
2,824,808
Adjustments for:
Taxation credited
(2,750)
(835)
Investment income
(2,000,000)
(2,831,582)
Movements in working capital:
Increase in debtors
(1,271,916)
(831,314)
Increase in creditors
1,278,316
514,102
Cash absorbed by operations
(5,292)
(324,821)
32
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
985,275
527,873
1,513,148
Borrowings excluding overdrafts
(458,714)
9,498
(449,216)
Obligations under finance leases
(226,375)
63,471
(162,904)
300,186
600,842
901,028
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200Mr R J CookMr R L 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