Company registration number 04019416 (England and Wales)
BUCKLEY GRAY YEOMAN LIMITED
ANNUAL REPORT AND GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BUCKLEY GRAY YEOMAN LIMITED
COMPANY INFORMATION
Directors
Matt Yeoman
Paul White
Secretary
Colin Nunn
Company number
04019416
Registered office
Studio 4.04 The Tea Building
56 Shoreditch High Street
London
E1 6JJ
Auditor
Clarkson Hyde LLP
Chancery House
St Nicholas Way
Sutton
SM1 1JB
BUCKLEY GRAY YEOMAN LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Group income statement
10
Group statement of financial position
11
Company statement of financial position
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
Notes to the financial statements
16 - 33
BUCKLEY GRAY YEOMAN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

In 2023 the Group achieved a turnover of £16,096,655, an increase of 26.5% compared to the previous year. The increase in turnover for the Group was made up of an increase of £236,380 from Buckley Gray Yeoman Interiors Limited, £2,568,753 from Buckley Gray Yeoman Limited, and first year trade of £520,350 from The Shoreditch Arts Club. The Group rewarded staff for this achievement and significant costs were incurred in 2023 as the Group increased salaries and paid Employee Ownership Trust bonuses to all eligible staff. Profit before tax for the year increased (17.8%) to £1,209,547 (2022: £1,026,957).

 

The Group operates in a fluctuating market and is susceptible to the continued political and economic changes. During the year, economic conditions have been heavily affected by the evolution and uncertainties still surrounding Brexit, interest rate rises and the war in the Ukraine. To meet the challenging environment the Group conducted a strategic review and has identified key areas of focus for the next year, making changes to safeguard against market fluctuations.

 

The directors continue to strive for growth and winning exciting new projects from UK and overseas. The Madrid office continues to create contacts for more projects and the Bristol office provides a broader catchment for the UK market. The Company has the benefit of projects spanning long periods and has good visibility of revenue for the year ahead.

 

The Company has been appointed in several new sectors, especially in the interior design market following post-Covid growth in hotel, hospitality and workplace sectors, in residential and master-planning and in additional locations across the world. With our Sustainability team we continue to improve our commercial offerings and remain at the front of changing demands of the built environment.

 

The Company has also invested in new ways of working in response to the pandemic, by expanding its office in London to include Shoreditch Arts Club. This new space provides staff, clients and collaborates with workspace, a presentation cinema, meeting facilities and a food & beverage offer. Staff and clients now work and socialise within a creative art hub that is widely seen within the industry as a forward thinking, innovative response to the new world of work.

 

The Company has been shortlisted for numerous awards across a wide spectrum of projects during the year. Buckley Gray Yeoman continues to be recognised internationally and we are extremely pleased with our rising listing in the Top 27 UK architectural practices and inclusion in the Top 100 World architectural practices. We are delighted to have been awarded AJ100 Practice of the Year 2023 – this is an accolade awarded by peers to acknowledge strength in design and diversity of projects, sectors, and practice.

 

 

BUCKLEY GRAY YEOMAN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The principal risks and uncertainties facing the business are;

 

Competitive risk

 

The company is very dependent on winning major new projects and therefore future performance would be affected by the lack of projects and strong competition from other firms. The company mitigates this risk by making every effort to maintain strong relationships with its clients.

 

Political and economical risk

 

The political and economic environment remains a prominent risk and uncertainty facing the company. The key external factors faced by the company in 2023 were:

 

1.    Reduced economic investment in the Real Estate sector generally. Funds and investors are more cautious and as a result projects are moving at a slower pace, often one stage at a time. This causes a shorter-term uncertainty on fee income.

2.    Interest Rates and Inflation have increased the cost of both borrowing and construction. Whilst the company has experienced sales growth in the year, it is necessary to keep a watchful eye on the macro-economic situation.

3.    Covid. The long-term effect of working from home has changed demand for commercial projects, especially in London. As a result, the company is seeing new markets emerging but at the same time has seen a significant reduction in its commercial office workload.

 

To mitigate the risks the company faces, we continue to diversify into other UK cities such as Birmingham, Cambridge and Bristol as well as expanding our office in Madrid (BGY Europe). The company is also continuing its growth in other sectors including Interior Design (BGY ID), the Arts sector (SAC), residential, co-living, student housing and masterplanning sectors.

 

Staff retention

 

Staff remain the key to the performance and future development of the company and therefore it faces the risk of losing key staff to our competition. This risk is managed by ensuring staff are robustly trained and appropriately incentivised. The company has strong links with several universities and are proud to support the next generation of architects.

 

Key performance indicators

The groups key performance indicators are;

 

2023

2022

%

Sales

16,096,655

12,725,100

26.5%

Profit before tax

1,209,547

1,026,957

17.8%

Number of

employees

143

 

108

 

32.4%

 

            

The Directors review sales on a weekly basis by reviewing the status of every project with its team. This allows for constant review of the pipeline and the staff resourcing and allocation that it will need for current and future projects.

Overheads are monitored on a monthly basis and expenditure is signed off by the board.

Staff headcount has increased by 32.4% due to a considerable post-Covid expansion.

BUCKLEY GRAY YEOMAN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

On behalf of the board

Matt Yeoman
Director
9 October 2024
BUCKLEY GRAY YEOMAN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Principal activities

The principal activity of the company and group continued to be that of Architecture and Design.

Results and dividends

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

 

During the year, the company made gifts totalling £845,916 to the Buckley Gray Employee Ownership Trust which owns 100% of the share capital of the company.

Directors

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

Matt Yeoman
Paul White
Financial instruments
Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations. In respect of bank balances, the liquidity risk is managed by maintaining a sufficient bank balance reserve to allow for short term net cash outflows. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to clients and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Future developments

The company continue to focus on winning exciting new projects from UK and overseas with a diversified portfolio.

Auditor

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

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

BUCKLEY GRAY YEOMAN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
On behalf of the board
Matt Yeoman
Director
9 October 2024
BUCKLEY GRAY YEOMAN LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -

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.

BUCKLEY GRAY YEOMAN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BUCKLEY GRAY YEOMAN LIMITED
- 7 -
Opinion

We have audited the financial statements of Buckley Gray Yeoman Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group income statement, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

BUCKLEY GRAY YEOMAN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BUCKLEY GRAY YEOMAN LIMITED
- 8 -
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 its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

We have nothing to report in respect of the following matters where 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.

 

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

 

We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

 

 

 

BUCKLEY GRAY YEOMAN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BUCKLEY GRAY YEOMAN LIMITED
- 9 -

 

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

Other matters which we are required to address

The financial statements of the company for the year ended 31 December 2022 were audited by another auditor who expressed an unmodified opinion on those statements on 19 December 2023.

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.

Andrew Seton (Senior Statutory Auditor)
For and on behalf of Clarkson Hyde LLP
9 October 2024
Chartered Accountants and
Statutory Auditor
Chancery House
St Nicholas Way
Sutton
SM1 1JB
BUCKLEY GRAY YEOMAN LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Revenue
3
16,096,655
12,725,100
Cost of sales
(1,093,455)
(1,037,077)
Gross profit
15,003,200
11,688,023
Distribution costs
(3,462)
-
0
Administrative expenses
(13,663,881)
(10,561,420)
Other operating income
-
4,603
Operating profit
4
1,335,857
1,131,206
Investment income
7
21,566
3,977
Finance costs
8
(147,876)
(108,226)
Profit before taxation
1,209,547
1,026,957
Tax on profit
9
(184,169)
2,184
Profit for the financial year
23
1,025,378
1,029,141
Profit for the financial year is attributable to:
- Owners of the parent company
1,023,109
926,451
- Non-controlling interests
2,269
102,690
1,025,378
1,029,141
BUCKLEY GRAY YEOMAN LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Non-current assets
Intangible assets
11
3,759
-
0
Property, plant and equipment
12
1,383,338
1,067,399
1,387,097
1,067,399
Current assets
Inventories
15
20,784
-
Trade and other receivables
16
5,445,553
4,534,160
Cash and cash equivalents
2,314,437
1,837,209
7,780,774
6,371,369
Current liabilities
17
(6,855,326)
(5,799,246)
Net current assets
925,448
572,123
Total assets less current liabilities
2,312,545
1,639,522
Non-current liabilities
18
(1,683,497)
(1,289,468)
Provisions for liabilities
Deferred tax liability
20
138,621
39,089
(138,621)
(39,089)
Net assets
490,427
310,965
Equity
Called up share capital
22
90
90
Capital redemption reserve
23
70
70
Retained earnings
23
532,351
355,158
Equity attributable to owners of the parent company
532,511
355,318
Non-controlling interests
(42,084)
(44,353)
490,427
310,965

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

The financial statements were approved by the board of directors and authorised for issue on 9 October 2024 and are signed on its behalf by:
09 October 2024
Matt Yeoman
Director
Company registration number 04019416 (England and Wales)
BUCKLEY GRAY YEOMAN LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
12
987,479
826,163
Investments
13
190
190
987,669
826,353
Current assets
Trade and other receivables
16
5,246,186
4,418,856
Cash and cash equivalents
2,206,642
1,833,858
7,452,828
6,252,714
Current liabilities
17
(6,214,487)
(5,430,586)
Net current assets
1,238,341
822,128
Total assets less current liabilities
2,226,010
1,648,481
Non-current liabilities
18
(1,683,497)
(1,289,468)
Provisions for liabilities
Deferred tax liability
20
206,874
39,089
(206,874)
(39,089)
Net assets
335,639
319,924
Equity
Called up share capital
22
90
90
Capital redemption reserve
23
70
70
Retained earnings
23
335,479
319,764
Total equity
335,639
319,924

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £861,632 (2022 - £449,840 profit).

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

The financial statements were approved by the board of directors and authorised for issue on 9 October 2024 and are signed on its behalf by:
09 October 2024
Matt Yeoman
Director
Company registration number 04019416 (England and Wales)
BUCKLEY GRAY YEOMAN LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Capital redemption reserve
Retained earnings
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
Balance at 1 January 2022
90
70
711,864
712,024
(147,043)
564,981
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
926,451
926,451
102,690
1,029,141
Gift to Employee Ownership Trust
-
-
(1,283,157)
(1,283,157)
-
(1,283,157)
Balance at 31 December 2022
90
70
355,158
355,318
(44,353)
310,965
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
1,023,109
1,023,109
2,269
1,025,378
Gift to Employee Ownership Trust
-
-
(845,916)
(845,916)
-
(845,916)
Balance at 31 December 2023
90
70
532,351
532,511
(42,084)
490,427
BUCKLEY GRAY YEOMAN LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Capital redemption reserve
Retained earnings
Total
£
£
£
£
Balance at 1 January 2022
90
70
1,153,080
1,153,240
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
449,841
449,841
Gift to Employee Ownership Trust
10
-
-
(1,283,157)
(1,283,157)
Balance at 31 December 2022
90
70
319,764
319,924
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
861,631
861,631
Gift to Employee Ownership Trust
-
-
(845,916)
(845,916)
Balance at 31 December 2023
90
70
335,479
335,639
BUCKLEY GRAY YEOMAN LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,698,418
1,970,049
Interest paid
(147,876)
(108,226)
Income taxes (paid)/refunded
(2,003)
402,469
Net cash inflow from operating activities
1,548,539
2,264,292
Investing activities
Purchase of intangible assets
(4,000)
-
Purchase of property, plant and equipment
(629,274)
(919,962)
Proceeds on disposal of property, plant and equipment
7,938
-
Receipts arising from loans made
(117)
(309)
Interest received
21,566
3,977
Net cash used in investing activities
(603,887)
(916,294)
Financing activities
Repayment of bank loans
378,492
(595,423)
Gift to Employee Ownership Trust
(845,916)
(1,283,157)
Net cash used in financing activities
(467,424)
(1,878,580)
Net increase/(decrease) in cash and cash equivalents
477,228
(530,582)
Cash and cash equivalents at beginning of year
1,837,209
2,367,791
Cash and cash equivalents at end of year
2,314,437
1,837,209
BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Buckley Gray Yeoman Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Studio 4.04 The Tea Building, 56 Shoreditch High Street, London, E1 6JJ

 

The group consists of Buckley Gray Yeoman 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.

1.2
Business combinations

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.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Buckley Gray Yeoman 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.

Buckley Gray Yeoman Interiors Limited Limited has been included in the group financial statements using the purchase method of accounting. Accordingly, the group income statement and statement of cash flows include the results and cash flows of Buckley Gray Yeoman Interiors Limited for the 4 month period from its incorporation on 10 September 2019. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of incorporation.

BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.4
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.

1.5
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for goods and 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.

 

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.

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

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets other than goodwill

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

 

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

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

Registered trademarks
Over 10 years
1.8
Property, plant and equipment

Property, plant and equipment 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:

Leasehold land and buildings
10% straight line basis
Plant and equipment
25% straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.9
Non-current 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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of non-current assets

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

 

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

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

 

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

BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

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.

1.11
Inventories

Inventories 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 inventories to their present location and condition.

 

Inventories 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 inventories 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.

1.12
Cash and cash equivalents

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

1.13
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 statement of financial position 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 trade and other receivables 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.

BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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

 

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

BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

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

1.14
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.

1.15
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
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 non-current 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.

1.17
Retirement benefits

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

1.18
Leases

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

BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful economic lives of tangible assets

The annual depreciation charges for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful lives and residual values are re-assessed annually.

Revenue recognition

The amount of accrued and deferred income relies on the correct estimation of the level of completion of each relevant assignment. These estimations are reviewed on a monthly basis to ensure they remain in line with expectations.

3
Revenue

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

2023
2022
£
£
Revenue analysed by class of business
Architectural and design services
15,692,913
12,725,100
Hospitality and events
403,742
-
16,096,655
12,725,100
BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Revenue
(Continued)
- 23 -
2023
2022
£
£
Revenue analysed by geographical market
United Kingdom
15,059,419
12,440,525
European Union
1,037,236
284,575
16,096,655
12,725,100
2023
2022
£
£
Other revenue
Interest income
21,566
3,977
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
19,360
(10,432)
Fees payable to the group's auditor for the audit of the group's financial statements
9,500
10,010
Depreciation of owned property, plant and equipment
305,397
112,336
Amortisation of intangible assets
241
-
Operating lease charges
702,516
662,896
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
Architect
94
94
94
94
Support (incl Finance, HR & IT)
12
-
11
-
Senior Leadership Team
8
-
7
-
CEO
2
2
2
2
Interior designer
11
10
-
-
SAC
16
2
-
-
Total
143
108
114
96
BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
8,164,948
6,041,415
6,783,243
5,484,439
Social security costs
907,673
747,622
760,276
680,492
Pension costs
485,748
328,228
456,592
314,848
9,558,369
7,117,265
8,000,111
6,479,779
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
463,731
486,978
Company pension contributions to defined contribution schemes
14,000
8,000
477,731
494,978
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
259,626
254,943
Company pension contributions to defined contribution schemes
4,000
4,000
7
Investment income
2023
2022
£
£
Interest income
Interest on bank deposits
19,563
2,821
Other interest income
2,003
1,156
Total income
21,566
3,977
BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
8
Finance costs
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
143,476
107,854
Other finance costs:
Other interest
4,400
372
Total finance costs
147,876
108,226
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
84,637
-
0
Adjustments in respect of prior periods
-
0
434
Total current tax
84,637
434
Deferred tax
Origination and reversal of timing differences
99,532
(2,618)
Total tax charge/(credit)
184,169
(2,184)

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

2023
2022
£
£
Profit before taxation
1,209,547
1,026,957
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
284,244
195,122
Tax effect of expenses that are not deductible in determining taxable profit
46,580
41,647
Tax effect of income not taxable in determining taxable profit
10,347
6,582
Unutilised tax losses carried forward
141,769
51,306
Group relief
44
-
0
Permanent capital allowances in excess of depreciation
(292,140)
(21,207)
Research and development tax credit
(104,564)
(273,449)
Under/(over) provided in prior years
-
0
434
Deferred tax adjustments in respect of prior years
99,532
(2,619)
Other timing differences
(1,643)
-
0
Taxation charge/(credit)
184,169
(2,184)
BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
10
Dividends
Gift to Employee Ownership Trust
Amounts paid
845,916
1,283,157
11
Intangible fixed assets
Group
Registered trademarks
£
Cost
At 1 January 2023
-
0
Additions
4,000
At 31 December 2023
4,000
Amortisation and impairment
At 1 January 2023
-
0
Amortisation charged for the year
241
At 31 December 2023
241
Carrying amount
At 31 December 2023
3,759
At 31 December 2022
-
0
12
Property, plant and equipment
Group
Leasehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 1 January 2023
796,971
1,133,040
1,930,011
Additions
345,082
284,192
629,274
Disposals
-
0
(7,938)
(7,938)
At 31 December 2023
1,142,053
1,409,294
2,551,347
Depreciation and impairment
At 1 January 2023
255,433
607,179
862,612
Depreciation charged in the year
119,816
185,581
305,397
At 31 December 2023
375,249
792,760
1,168,009
Carrying amount
At 31 December 2023
766,804
616,534
1,383,338
At 31 December 2022
541,538
525,861
1,067,399
BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Property, plant and equipment
(Continued)
- 27 -
Company
Leasehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 1 January 2023
796,971
870,151
1,667,122
Additions
259,734
124,365
384,099
Disposals
-
0
(7,938)
(7,938)
At 31 December 2023
1,056,705
986,578
2,043,283
Depreciation and impairment
At 1 January 2023
255,433
585,526
840,959
Depreciation charged in the year
92,984
121,861
214,845
At 31 December 2023
348,417
707,387
1,055,804
Carrying amount
At 31 December 2023
708,288
279,191
987,479
At 31 December 2022
541,538
284,625
826,163
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
190
190
Movements in non-current investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
190
Carrying amount
At 31 December 2023
190
At 31 December 2022
190
14
Subsidiaries

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

BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Subsidiaries
(Continued)
- 28 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Buckley Gray Yeoman Interiors Limited
England
Ordinary shares
75.00
The Shoreditch Arts Club Ltd
England
Ordinary shares
100.00
15
Inventories
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
20,784
-
-
-
16
Trade and other receivables
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade receivables
3,430,325
3,095,677
2,954,987
2,920,467
Corporation tax recoverable
1,635
51,635
-
0
50,000
Amounts owed by group undertakings
-
-
302,259
222,270
Other receivables
70,878
14,822
65,359
3,780
Prepayments and accrued income
1,942,715
1,372,026
1,923,581
1,222,339
5,445,553
4,534,160
5,246,186
4,418,856
17
Current liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
544,850
560,387
544,850
560,387
Trade payables
930,010
1,036,733
873,161
953,935
Corporation tax payable
32,634
-
0
32,634
-
0
Other taxation and social security
697,256
445,742
534,155
344,377
Deferred income
2,379,223
1,983,381
2,126,083
1,854,947
Other payables
6,067
15,387
2,786
10,282
Accruals
2,265,286
1,757,616
2,100,818
1,706,658
6,855,326
5,799,246
6,214,487
5,430,586
BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
18
Non-current liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
1,683,497
1,289,468
1,683,497
1,289,468
19
Borrowings
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
2,228,347
1,849,855
2,228,347
1,849,855
Payable within one year
544,850
560,387
544,850
560,387
Payable after one year
1,683,497
1,289,468
1,683,497
1,289,468

The long-term loans are secured by fixed charges over the assets of the company.

On the 7th July 2023 the company obtained a bank loan from HSBC bank of £2,400,000 carrying interest at 2.50% over the Bank of England Base Rate. This is to be repaid over 4 years at a fixed rate of £58,050 per month.

20
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
259,838
139,000
Tax losses
(165,248)
(99,911)
Retirement benefit obligations
44,031
-
138,621
39,089
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
162,843
139,000
Tax losses
-
(99,911)
Retirement benefit obligations
44,031
-
206,874
39,089
BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Deferred taxation
(Continued)
- 30 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
39,089
39,089
Charge to profit or loss
99,532
167,785
Liability at 31 December 2023
138,621
206,874
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
485,748
328,228

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.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 1p each
8,932
8,932
90
90
23
Reserves
Retained earnings

Capital redemption reserve

The capital redemption reserve relates to shares purchased back from previous years.

Retained earnings

This account includes all current and prior period profits and losses.

BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases (stated gross inclusive of VAT), which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
915,040
683,072
915,040
683,072
Between two and five years
757,970
547,392
757,970
547,392
1,673,010
1,230,464
1,673,010
1,230,464
25
Related party transactions
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 over which the group has control, joint control or significant influence
73,500
-
324,570
560,751

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities over which the group has control, joint control or significant influence
302,259
222,270
26
Controlling party

The ultimate controlling party is Buckley Gray Yeoman Employee Trustee Limited

BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
27
Employee Ownership Trust

On 7 June 2019, the Buckley Gray Yeoman Employee Trustee Limited (the "Trust") was established for the benefit of all employees for the time being of Buckley Gray Yeoman Limited and its subsidiaries.

 

On 7 June 2019, the Trust acquired 100% of the share capital in Buckley Gray Yeoman Limited. The Shares were acquired by the Trust for a sum of £10,500,000 of which £6,158,834 was paid on completion and funded by a gift from the Company. The balance (the "deferred consideration") was anticipated to be payable over the next 3 years.

 

On 7 June 2019, Buckley Gray Yeoman Limited entered into a loan facility agreement with the trustees of the Trust, Buckley Gray Yeoman Employee Trustee Limited. The loan facility is for the purpose of acquiring shares in Buckley Gray Yeoman Limited, specifically so that the remaining deferred consideration of £4,341,166 could be paid. Notwithstanding this, the deferred consideration is expected to be financed by further gifts from the group.

 

The total gifts to the Trust in the year, to fund completion payments amounted to £845,916 and is disclosed as an equity movement on page 13. Consideration remaining deferred and due for payment in full in 2024 is £354,084.

28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,025,378
1,029,141
Adjustments for:
Taxation charged/(credited)
184,169
(2,184)
Finance costs
147,876
108,226
Investment income
(21,566)
(3,977)
Amortisation and impairment of intangible assets
241
-
Depreciation and impairment of property, plant and equipment
305,397
112,336
Movements in working capital:
Increase in inventories
(20,784)
-
Increase in trade and other receivables
(961,276)
(1,117,144)
Increase in trade and other payables
643,141
1,369,585
Increase in deferred income
395,842
474,066
Cash generated from operations
1,698,418
1,970,049
BUCKLEY GRAY YEOMAN LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
29
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
861,631
449,841
Adjustments for:
Taxation charged/(credited)
252,422
(2,184)
Finance costs
143,476
108,251
Investment income
(21,449)
(3,668)
Depreciation and impairment of property, plant and equipment
214,845
104,530
Movements in working capital:
Increase in trade and other receivables
(877,330)
(565,360)
Increase in trade and other payables
495,668
1,298,252
Increase in deferred income
271,136
345,632
Cash generated from operations
1,340,399
1,735,294
30
Analysis of changes in net funds/(debt) - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,837,209
477,228
2,314,437
Borrowings excluding overdrafts
(1,849,855)
(378,492)
(2,228,347)
(12,646)
98,736
86,090
31
Analysis of changes in net debt - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,833,858
372,784
2,206,642
Borrowings excluding overdrafts
(1,849,855)
(378,492)
(2,228,347)
(15,997)
(5,708)
(21,705)
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