Company registration number 08270818 (England and Wales)
GEORGE BAKER GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
GEORGE BAKER GROUP LIMITED
COMPANY INFORMATION
Directors
D. Baker
S. Binns
I. Liddell
G. Pearce
(Appointed 6 May 2024)
Company number
08270818
Registered office
Felixstowe Mega Distribution Centre
Clickett Hill Road
Felixstowe
IP11 4BA
Auditor
BG Audit LLP
Statutory Auditors
7 Three Rivers Business Park
Felixstowe Road, Foxhall
IPSWICH
IP10 0BF
GEORGE BAKER GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 33
GEORGE BAKER GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Fair review of the business
It is our aim to present a comprehensive review of the performance of George Baker Group Limited and its subsidiaries and the position of the Group for the year ended 31 December 2023.
The review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties encountered during the year.
George Baker (Air & Sea) Limited
The trade of the company transferred to George Baker (Shipping) Limited on 1st January 2023 and the company ceased to trade from that date.
George Baker (Europe) Limited
The trade of the company transferred to George Baker (Shipping) Limited on 1st March 2023 and the company ceased to trade from that date.
George Baker (Logistics) Limited
The company’s core activity continues to be the provision of specialist warehousing and related services. The company continues to operate a long-term warehousing contract, based at a dedicated facility and run by an experienced operations team, providing the company with a stable platform from which to develop the business further.
George Baker (Shipping) Limited
The directors consider that the company has performed strongly during this financial year, having achieved healthy growth across all sectors of the business. A focus around Sales and Marketing, with a clear plan around new business generation, is having a positive impact on the company’s commercial ambitions. Client retention remains strong and is considered pivotal to the long-term performance of the business.
During the year, the Group undertook a significant reorganisation with the transfer of the trades of three of its subsidiaries, into the company. The purpose of the reorganisation was to drive efficiencies and synergies across the enlarged business, the aim being to provide a strongly cohesive service for clients.
The company’s Air & Sea activities saw freight rates return to pre-pandemic levels, thus contributing to a significant reduction in turnover. However, profit margins improved due to the lower passthrough of costs, along with the added stability within the market, reducing expensive competition in the industry. Job numbers and staffing remained consistent compared to prior period.
The company’s Europe operations saw another year of growth due to the combination of increased sales from existing customers and effective purchasing of freight rates. Further fleet expansion also contributed to the growth performance.
The company’s Transport business was negatively impacted during the year as a result of high inflation leading to increased operating costs, along with reduced sub-contract margins. Nevertheless, in line with our long-term strategic plans, the company’s Transport operations benefited from a significant investment in its truck fleet, supporting a stronger service offering primarily (but not exclusively) to existing clients in the Group. The enlarged fleet will support our growth plans, built on a foundation of reliable and sustainable services.
George Baker (Transport) Limited
The trade of the company transferred to George Baker (Shipping) Limited on 1st February 2023 and the company ceased to trade from that date.
BKR Consultants Limited
The company has continued to exceed expectations with another year of strong growth in terms of turnover, profitability and client acquisition. The advisory team has also improved the depth of skill and knowledge across the business, enabling expansion of the service offering to both new and existing clients, by offering consultancy services alongside longstanding core services.
GEORGE BAKER GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
George Baker Group Limited
The principal activity of the company continues to be that of a holding company. The company did not trade during the year.
Principal risks and uncertainties
Economic risk
The main risks facing the group arise from cyclical fluctuations in the freight and shipping markets and general economic conditions, which influence the underlying business of the customer base.
Liquidity Risk
The Group manages liquidity risk by monitoring the position on liquid asset balances on a daily basis and by actively managing available funds, to ensure that cash reserves are sufficient in the short-term to meet the Group’s financial obligations as they fall due and to ensure that funds are available to support the Group’s operations and growth ambitions.
Foreign currency risk
The Group is not materially exposed to foreign currency fluctuations however, some risk is inevitable given the modest volume of foreign currency transactions undertaken during the year.
Development and performance
Overall, the Group has performed well despite the background of instability in the logistics industry and the wider economy. Continued control of margins and costs is central to strengthening the Group’s ongoing performance and a focus on Sales and Marketing, with a clear plan around new business generation, is having a positive impact on the Group’s commercial ambitions. Client retention remains strong and with no reliance on any individual customers.
The directors are pleased with the results of the Group. The profit for the financial year, after taxation, amounted to £2,910k (period ended December 2022: £3,170k).
Key performance indicators
The Group uses bespoke key performance indicators to monitor and measure profit centre performance and uses contribution margin and earnings before tax to evaluate overall performance.
Position of the business at the year end
The Group’s financial position at the year end is strong, there were no bank borrowings and the Group has sufficient cash reserves with which to meet its obligations as they fall due.
At the financial year end, the Group’s reserves were £8,707k (period ended December 2022: £9,910k) and the Group had net assets of £8,714k (period ended December 2022: £9,917k).
D. Baker
Director
24 September 2024
GEORGE BAKER GROUP LIMITED
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
George Baker (Shipping) limited is a company providing shipping related services, based at the container port of Felixstowe, and offers the following services:
- Customs clearance services, both import and export, at all major UK sea ports
- Container packing/unpacking and bonded warehousing
- UK container transportation and European trucking
- Distribution of warehoused products
The principal activity of George Baker (Transport) Limited continued to be the provision of road haulage services.
The principal activity of George Baker (Air and Sea) Limited continued to be the provision of sea and air freight-forwarding services.
The principal activity of George Baker (Europe) Limited continued to be the provision of UK trailer transportation and European trucking services.
The principal activity of George Baker Group Limited continued to be that of a holding company.
The principal activity of George Baker (Logistics) Limited continued to be the provision of warehousing services.
The principal activity of BKR Consultants Limited continued to be the provision of professional and practical guidance on all matters associated with customs clearance, customs compliance and supply chain efficiency.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D. Baker
S. Binns
I. Liddell
G. Pearce
(Appointed 6 May 2024)
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £4,113,511. The directors do not recommend payment of a further dividend.
Auditor
The auditor, BG Audit LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
GEORGE BAKER GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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
D. Baker
Director
24 September 2024
GEORGE BAKER GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
GEORGE BAKER GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GEORGE BAKER GROUP LIMITED
- 6 -
Opinion
We have audited the financial statements of George Baker Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2023 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
GEORGE BAKER GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GEORGE BAKER GROUP LIMITED
- 7 -
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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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.
Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with laws and regulations related to operating licence requirements relating to it's transport business, and considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that impact directly on the preparation of the financial statements including the Companies Act, and UK tax legislation.
We considered managements incentives and opportunities for fraudulent adjustments to the financial statements including override of controls and determined that the principal risks were related to inappropriate journal entries or fraudulent transactions that would result in the manipulation of profits.
Audit procedures included:
Making enquiries of management for known or suspected instances of fraud or non-compliance with laws and regulations.
Consideration of management’s procedures for detecting and preventing fraud, including controls.
Reviewing journal entries to identify material or unusual transactions
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
GEORGE BAKER GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GEORGE BAKER GROUP LIMITED
- 8 -
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.
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.
Jonathan Oakley F.C.A.Senior Statutory Auditor
For and on behalf of BG Audit LLP
24 September 2024
Statutory Auditor
7 Three Rivers Business Park
Felixstowe Road, Foxhall
IPSWICH
IP10 0BF
GEORGE BAKER GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Year ended
11 months to
31 December
31 December
2023
2022
Notes
£
£
Turnover
3
32,620,426
35,026,046
Cost of sales
(21,852,679)
(26,292,100)
Gross profit
10,767,747
8,733,946
Administrative expenses
(6,865,048)
(4,656,960)
Other operating income
1,000
26,602
Operating profit
7
3,903,699
4,103,588
Interest receivable and similar income
8
4,110
Interest payable and similar expenses
9
(67,603)
(36,220)
Profit before taxation
3,836,096
4,071,478
Taxation
10
(925,997)
(901,146)
Profit for the financial year
2,910,099
3,170,332
The profit and loss account has been prepared on the basis that all operations are continuing operations.
GEORGE BAKER GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Year ended
11 months to
31 December
31 December
2023
2022
£
£
Profit for the year
2,910,099
3,170,332
Other comprehensive income
-
-
Total comprehensive income for the year
2,910,099
3,170,332
Total comprehensive income for the year is all attributable to the owners of the parent company.
GEORGE BAKER GROUP LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
31 December
31 December
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
756,533
1,008,710
Negative goodwill
11
(1,583)
(2,111)
Net goodwill
754,950
1,006,599
Tangible assets
12
2,270,403
1,459,769
3,025,353
2,466,368
Current assets
Stocks
16
14,161
16,627
Debtors
17
5,112,732
5,750,007
Cash at bank and in hand
8,336,487
10,374,916
13,463,380
16,141,550
Creditors: amounts falling due within one year
19
(6,520,685)
(7,365,842)
Net current assets
6,942,695
8,775,708
Total assets less current liabilities
9,968,048
11,242,076
Creditors: amounts falling due after more than one year
20
(700,752)
(963,492)
Provisions for liabilities
Provisions
22
50,000
Deferred tax liability
23
503,374
361,410
(553,374)
(361,410)
Net assets
8,713,922
9,917,174
Capital and reserves
Called up share capital
26
4,750
4,590
Capital redemption reserve
2,160
2,160
Profit and loss reserves
8,707,012
9,910,424
Total equity
8,713,922
9,917,174
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
D. Baker
Director
Company Registration No.08270818
GEORGE BAKER GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
31 December
31 December
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
1,764,911
1,764,911
Current assets
Debtors
17
193,922
1,002,105
Cash at bank and in hand
1,385,470
140,152
1,579,392
1,142,257
Creditors: amounts falling due within one year
19
(29,728)
(983,033)
Net current assets
1,549,664
159,224
Total assets less current liabilities
3,314,575
1,924,135
Capital and reserves
Called up share capital
26
4,750
4,590
Capital redemption reserve
2,160
2,160
Profit and loss reserves
3,307,665
1,917,385
Total equity
3,314,575
1,924,135
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
D. Baker
Director
Company Registration No.08270818
GEORGE BAKER GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
4,590
2,160
6,740,092
6,746,842
Period ended 31 December 2022:
Profit and total comprehensive income for the period
-
-
3,170,332
3,170,332
Balance at 31 December 2022
4,590
2,160
9,910,424
9,917,174
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
2,910,099
2,910,099
Issue of share capital
26
160
-
-
160
Dividends
13
-
-
(4,113,511)
(4,113,511)
Balance at 31 December 2023
4,750
2,160
8,707,012
8,713,922
GEORGE BAKER GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
4,590
2,160
1,662,917
1,669,667
Period ended 31 December 2022:
Profit and total comprehensive income for the period
-
-
254,468
254,468
Balance at 31 December 2022
4,590
2,160
1,917,385
1,924,135
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
5,503,791
5,503,791
Issue of share capital
26
160
-
-
160
Dividends
13
-
-
(4,113,511)
(4,113,511)
Balance at 31 December 2023
4,750
2,160
3,307,665
3,314,575
GEORGE BAKER GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
31 December
31 December
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
4,576,287
1,629,657
Interest paid
(67,603)
(36,220)
Income taxes paid
(791,069)
(579,795)
Net cash inflow from operating activities
3,717,615
1,013,642
Investing activities
Purchase of tangible fixed assets
(1,465,634)
(97,873)
Proceeds from disposal of tangible fixed assets
-
45,314
Repayment of loans
11,373
(12,000)
Interest received
4,110
Net cash used in investing activities
(1,454,261)
(60,449)
Financing activities
Proceeds from issue of shares
160
-
Payment of finance leases obligations
(188,432)
(368,595)
Dividends paid to equity shareholders
(4,113,511)
Net cash used in financing activities
(4,301,783)
(368,595)
Net (decrease)/increase in cash and cash equivalents
(2,038,429)
584,598
Cash and cash equivalents at beginning of year
10,374,916
9,790,318
Cash and cash equivalents at end of year
8,336,487
10,374,916
GEORGE BAKER GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
31 December
31 December
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
33
(139,369)
(1,299,013)
Income taxes paid
(1,335)
(570)
Net cash outflow from operating activities
(140,704)
(1,299,583)
Investing activities
Repayment of loans
(627)
Interest received
4,110
Dividends received
5,500,000
250,000
Net cash generated from investing activities
5,499,373
254,110
Financing activities
Proceeds from issue of shares
160
-
Dividends paid to equity shareholders
(4,113,511)
-
Net cash used in financing activities
(4,113,351)
-
Net increase/(decrease) in cash and cash equivalents
1,245,318
(1,045,473)
Cash and cash equivalents at beginning of year
140,152
1,185,625
Cash and cash equivalents at end of year
1,385,470
140,152
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
1
Accounting policies
Company information
George Baker Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Felixstowe Mega Distribution Centre, Clickett Hill Road, Felixstowe, IP11 4BA. The company number is 08270818.
The group consists of George Baker Group 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. The principal accounting policies adopted are set out below.
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 £5,503,791 (Dec-2022 - £254,468).
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. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
The consolidated group financial statements consist of the financial statements of the parent company George Baker Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
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 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.
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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 5 years.
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:
Warehouse equipment and Plant and machinery
33% straight line
Fixtures, fittings and equipment
10 - 33% straight line
Motor vehicles
25% straight line
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.
1.7
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, associates and jointly controlled entities 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.
1.8
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.
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
1.10
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.
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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.
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
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.
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Share-based payments
For cash-settled share-based payments, a liability is recognised for the goods and services acquired, measured initially at the fair value of the liability. At the balance sheet date until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value recognised in profit or loss for the year.
1.18
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.
1.19
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.
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Shipping and transport services
32,620,426
35,026,046
2023
2022
£
£
Other significant revenue
Interest income
-
4,110
Grants received
-
15,602
The whole of the turnover is attributable to the company’s principal activities.
The Directors consider that disclosure of geographical markets would be prejudicial to the company’s interests and therefore this has not been given.
4
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
2,200
1,280
Audit of the financial statements of the company's subsidiaries
29,196
27,904
31,396
29,184
5
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
Admin and sales
59
55
-
-
Warehouse
21
21
-
-
Transport
23
20
-
-
Total
103
96
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 23 -
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,872,446
3,766,455
Social security costs
523,889
418,246
-
-
Pension costs
136,595
105,607
5,532,930
4,290,308
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
182,777
133,375
All Directors received their remuneration primarily in respect of services provided to other group companies and as a result their respective remuneration details are reflected in the financial statements of those companies.
7
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
91,106
8,447
Government and Capital grants
-
(124,204)
Depreciation of owned tangible fixed assets
636,877
514,826
Loss on disposal of tangible fixed assets
18,123
1,208
Amortisation of intangible assets
251,649
251,649
Operating lease charges
214,323
96,994
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
-
4,110
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
38,850
26,739
Other interest
28,753
9,481
Total finance costs
67,603
36,220
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
784,033
791,069
Deferred tax
Origination and reversal of timing differences
141,964
110,077
Total tax charge
925,997
901,146
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
3,836,096
4,071,478
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
902,250
773,581
Tax effect of expenses that are not deductible in determining taxable profit
(33,607)
19,600
Tax effect of utilisation of tax losses not previously recognised
352
1,092
Effect of change in corporation tax rate
683
87,350
Depreciation on assets not qualifying for tax allowances
6,038
Amortisation on assets not qualifying for tax allowances
59,188
47,813
Other permanent differences
2,886
Under/(over) provided in prior years
(1,273)
Enhanced capital allowances
(3,816)
(36,743)
Deferred taxation underprovision
143
(471)
Business combinations
2,077
Taxation charge
925,997
901,146
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
11
Intangible fixed assets
Group
Goodwill
Negative goodwill
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
1,303,920
(2,639)
1,301,281
Amortisation and impairment
At 1 January 2023
295,210
(528)
294,682
Amortisation charged for the year
252,177
(528)
251,649
At 31 December 2023
547,387
(1,056)
546,331
Carrying amount
At 31 December 2023
756,533
(1,583)
754,950
At 31 December 2022
1,008,710
(2,111)
1,006,599
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
12
Tangible fixed assets
Group
Warehouse equipment and Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2023
20,738
189,829
1,974,371
2,184,938
Additions
2,200
41,845
1,421,589
1,465,634
Disposals
(20,739)
(30,807)
(51,546)
At 31 December 2023
2,199
200,867
3,395,960
3,599,026
Depreciation and impairment
At 1 January 2023
2,442
87,566
635,161
725,169
Depreciation charged in the year
1,350
64,161
571,366
636,877
Eliminated in respect of disposals
(3,734)
(29,689)
(33,423)
At 31 December 2023
58
122,038
1,206,527
1,328,623
Carrying amount
At 31 December 2023
2,141
78,829
2,189,433
2,270,403
At 31 December 2022
18,296
102,263
1,339,210
1,459,769
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
13
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
4,113,511
-
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
1,764,911
1,764,911
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
1,764,911
Carrying amount
At 31 December 2023
1,764,911
At 31 December 2022
1,764,911
15
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
George Baker (Air & Sea) Limited
England and Wales
Ordinary
100.00
George Baker (Europe) Limited
England and Wales
Ordinary
100.00
George Baker (Logistics) Limited
England and Wales
Ordinary
100.00
George Baker (Shipping) Limited
England and Wales
Ordinary
100.00
George Baker (Transport) Limited
England and Wales
Ordinary
100.00
BKR Consultants Limited
England and Wales
Ordinary
100.00
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
14,161
16,627
-
-
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,318,149
4,084,368
Corporation tax recoverable
1,273
Amounts owed by group undertakings
-
-
15,000
100,999
Other debtors
570,963
1,317,480
178,694
895,368
Prepayments and accrued income
222,347
348,159
228
5,738
5,112,732
5,750,007
193,922
1,002,105
18
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
4,507,858
5,012,106
193,694
996,367
Carrying amount of financial liabilities
Measured at amortised cost
6,273,816
7,247,752
27,100
981,698
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
21
461,510
387,202
Trade creditors
4,188,089
5,152,869
5,598
Amounts owed to group undertakings
938,000
Corporation tax payable
785,306
791,069
2,628
1,335
Other taxation and social security
162,315
281,331
-
-
Other creditors
71,748
34,282
Accruals and deferred income
851,717
719,089
27,100
38,100
6,520,685
7,365,842
29,728
983,033
Net obligations of £461,510 (2022: £387,202) under hire purchase contracts are secured on the assets concerned.
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
21
700,752
963,492
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Creditors: amounts falling due after more than one year
(Continued)
- 28 -
Net obligations of £700,752 (2022: £963,492) under hire purchase contracts are secured on the assets concerned.
21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
461,510
387,202
In two to five years
700,752
963,492
1,162,262
1,350,694
-
-
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. 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.
22
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Provision for legal fees
50,000
-
-
-
Movements on provisions:
Provision for legal fees
Group
£
Additional provisions in the year
50,000
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
2023
2022
Group
£
£
Accelerated capital allowances
515,874
361,410
Other timing differences
(12,500)
-
503,374
361,410
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
23
Deferred taxation
(Continued)
- 29 -
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
361,410
-
Charge to profit or loss
141,964
-
Liability at 31 December 2023
503,374
-
The net deferred tax liability expected to reverse in the year ended 31st December 2024 is £190,986. This primarily relates to the reversal of timing differences on acquired tangible assets and capital allowances through depreciation, offset by expected tax deductions when payments are made to utilise provisions.
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
136,595
105,607
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.
25
Share-based payment transactions
In August 2023, the parent company issued 3,200 shares of 5p. There are good and bad leaver conditions attached to the shares that may result in a liability under a cash settled share-based payment arrangement for certain employees in the group. The directors estimate the liability and any accounting entries to be immaterial to the financial statements as at 31st December 2023.
26
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary B shares of 5p each
3,200
-
160
-
Ordinary shares of 50p each
9,180
9,180
4,590
4,590
12,380
9,180
4,750
4,590
There are two classes of ordinary shares issued. There are no restrictions on the distribution of dividends and the repayment of capital on the Ordinary shares. The Ordinary B shares have no voting rights or rights to dividends, and the repayment of capital is conditional on certain events.
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
27
Financial commitments, guarantees and contingent liabilities
The bank has made guarantees on behalf of the company to HM Customs of £487,000.
28
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
8,728
31,750
-
-
Between two and five years
4,076
12,804
-
-
12,804
44,554
-
-
29
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2022
£
£
Aggregate compensation
985,975
831,014
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Entities with control, joint control or significant influence over the group
374,220
454,293
802,922
579,937
Rent, rates and service charges
2023
2022
£
£
Group
Entities with control, joint control or significant influence over the group
170,816
150,328
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
29
Related party transactions
(Continued)
- 31 -
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2023
2022
£
£
Group
Entities with control, joint control or significant influence over the group
69,297
-
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities with control, joint control or significant influence over the group
-
108,550
Other information
During the year dividends of £4,113,511 (2022: £nil) were paid to the joint owners.
The company has taken advantage of the exemptions conferred by FR102 not to make disclosures concerning companies wholly owned within the group.
30
Controlling party
In the opinion of the directors, there is no ultimate controlling party.
31
Directors' transactions
Included in other debtors at the year end is £nil owed from a director of a subsidiary company (2022: £715,000 ). This was fully repaid during the year.
During the year a repayment of £12,000 was made by a director. At the year end the director owed £nil to the company (2022: £12,000).
During the year a director received an advance of £627. At the year end the director owed the company £627. The advance was fully repaid after the year end.
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
32
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,910,099
3,170,332
Adjustments for:
Taxation charged
925,997
901,146
Finance costs
67,603
36,220
Investment income
(4,110)
Loss on disposal of tangible fixed assets
18,123
1,208
Amortisation and impairment of intangible assets
251,649
251,649
Depreciation and impairment of tangible fixed assets
636,877
514,826
Increase/(decrease) in provisions
50,000
(375,000)
Movements in working capital:
Decrease in stocks
2,466
15,001
Decrease in debtors
627,175
234,044
Decrease in creditors
(913,702)
(3,115,659)
Cash generated from operations
4,576,287
1,629,657
33
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
5,503,791
254,468
Adjustments for:
Taxation charged
2,628
1,335
Investment income
(5,500,000)
(254,110)
Movements in working capital:
Decrease/(increase) in debtors
808,810
(301,128)
Decrease in creditors
(954,598)
(999,578)
Cash absorbed by operations
(139,369)
(1,299,013)
34
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
140,152
1,245,318
1,385,470
GEORGE BAKER GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
35
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
10,374,916
(2,038,429)
8,336,487
Obligations under finance leases
(1,350,694)
188,432
(1,162,262)
9,024,222
(1,849,997)
7,174,225
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