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Registered number: 01840837









IVOR BRAKA LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2023

 
IVOR BRAKA LIMITED
 
 
COMPANY INFORMATION


Director
Ivor Braka 




Company secretary
Ivor Braka



Registered number
01840837



Registered office
124 Finchley Road
London

NW3 5JS




Independent auditors
Nyman Libson Paul LLP
Chartered Accountants & Statutory Auditors

124 Finchley Road

London

NW3 5JS





 
IVOR BRAKA LIMITED
 

CONTENTS



Page
Group Strategic Report
 
 
1 - 2
Director's Report
 
 
3 - 4
Independent Auditors' Report
 
 
5 - 8
Consolidated Statement of Comprehensive Income
 
 
9
Consolidated Balance Sheet
 
 
10 - 11
Company Balance Sheet
 
 
12 - 13
Consolidated Statement of Changes in Equity
 
 
14 - 15
Company Statement of Changes in Equity
 
 
16 - 17
Consolidated Statement of Cash Flows
 
 
18 - 19
Notes to the Financial Statements
 
 
20 - 39


 
IVOR BRAKA LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

Introduction
 
The director presents his strategic report for the year ended 31 December 2023.

Principal activity
 
The principal activity of the group is fine art dealing in international markets and that of a public house providing food, drink and accommodation. 

Business review
 
The Group’s financial performance for the year and financial position as at 31 October 2023 are shown on pages 9 to 13 of these financial statements. The results for the year are reported on the basis that all operations undertaken during the year under review are continuing.
The financial performance and financial position of the Company is considered by the directors to be satisfactory given the general economic climate.
Movements in turnover and gross profit cannot considered to be representative of a trend or a result of change in the manner in which the Company operates. The fluctuating nature of stocks, both in availability and demand,as well as the changing requirements of clients makes it impossible to predict expected turnover and gross profit; however, taking into account actual market and economic activity during the reporting period, the directors are pleased with the reported results for the year.
Looking ahead post 31 October 2023, the directors remain confident of continued positive financial performance, market growth and long term success as the Company continues to report strong profits.
Competition in the art market has and continues to be intense. Given that a principal obstacle of any art dealer is the procurement of art for sale, whether be as agent or as principal, continued investment in the business has enabled the Company to build upon its proven track record of profitability and its ongoing success in identifying and following through to completion, trading opportunities at the upper echelon of the art market.
The strategy of the directors for the future is to continue focus on: 
- Continued growth of the Company's online presence;
- Development of new, and maintenance of existing, trading relationships;
- Ensuring a consistent delivery of a high level of quality and added value to its customers and suppliers;
- Building upon the Company's portfolio of art stocks and trades through an emphasis on the importance of        
  comprehensive research of the market including trends and key events; and
- Evaluation and targeting of works by artists that are either newly emerging onto the scene or re-emerging 
   after a period of absence.
Financial key performance indicators
Given the straightforward and individual nature of the business, the directors consider turnover, gross and operating profit, net asset position and cash flow as the relevant financial key performance indicators sufficient to ensure an appropriate understanding to the true underlying financial performance and position of the Company.
Details of these financial key performance indicators for the current and preceding financial reporting periods can be found on pages 14 to 19 of these financial statements.
Other key performance indicators
The directors do not consider, in the context of the art market, that there are any consistent non-financial key performance indicators which would assist in ensuring a sufficient understanding of the Company's underlying performance not already determinable from information available elsewhere.
 
Page 1

 
IVOR BRAKA LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023


Principal risks and uncertainties
 
The main uncertainties lie with the principal art business activity and the public house businesses as detailed in the going concern accounting policy.
The director has identified his own mortality as a significant risk as the business relies on the knowledge and expertise of its director to carry out the principal art business activity. 
The impact of the declining economy and its influence on energy prices has also been assessed as a significant risk due to the effefct this has on the demand for non-essential purchases, such as fine art.
The group's debt level has also been identified as a significant risk as increases in Bank of England interest rate could increase the risk of the group being unable to meet its liabilities as they fall due. 

 

This report was approved by the board and signed on its behalf.



Ivor Braka
Director

Date: 29 October 2024

Page 2

 
IVOR BRAKA LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

The director presents his report and the financial statements for the year ended 31 October 2023.

Director's responsibilities statement

The director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments 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 financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £273,876 (2022 - profit £693,313).

Dividends paid by the Company for the year amounted to £300,000  (2022 - £Nil).

Director

The director who served during the year was:

Ivor Braka 

Future developments

The directors are not expecting to make any significant changes in the nature of the business in the near future
and will continue to explore opportunities, where they may present themselves, to grow organically.

Page 3

 
IVOR BRAKA LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023

Financial instruments

Objectives and policies
The group's principal financial instruments include financial assets and liabilities such as trade debtors and trade creditors which arise directly from operations.
Price risk, credit risk, liquidity risk and interest rate risk
Foreign currency risk: The group's principal foreign currency exposure arises from trading with entities in other countries. It maintains certain foreign currency denominated bank accounts/overdrafts to limit its exposure to the foreign currency risk.
Credit risk: Receivable balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Liquidity risk: The group manages its cash and borrowing requirements via an overdraft facility which ensures the group has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk: The group is exposed to cash flow interest risk on its bank overdraft.

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsNyman Libson Paul LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Ivor Braka
Director

Date: 29 October 2024

Page 4

 
IVOR BRAKA LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IVOR BRAKA LIMITED
 

Opinion


We have audited the financial statements of Ivor Braka Limited (the 'Company') for the year ended 31 October 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 of the parent Company's affairs as at 31 October 2023 and of the Group's loss 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.


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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 director's 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 or the 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 director with respect to going concern are described in the relevant sections of this report.


Page 5

 
IVOR BRAKA LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IVOR BRAKA LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.


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 Group Strategic Report or the Director's 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 director's 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 Director's Responsibilities Statement set out on page 3, the director is 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 director determines 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 director is responsible for assessing the Group's and 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 director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
IVOR BRAKA LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IVOR BRAKA LIMITED (CONTINUED)


Auditors' 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 Auditors' 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 Group financial statements.


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

We identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error, by designing and performing audit procedures responsive to those risks and obtaining sufficient and appropriate evidence to provide a basis for our opinion.
In identifying and assessing risks of material misstatement, we have considered the following:
- the nature of the industry and sector in which the Company operates;
- the control environment and business performance of the Company;
- the organisational structure and management of the group of which the Company is an undertaking of;
- we have not received all the information and explanations we require for our audit.
- the Company's accountancy function and the use of third party service organisations as part of it;
- results of our enquiries of management about their own identification and assessment of the
  risks of irregularities;
- any matters we identified having obtained and reviewed the Company’s documentation of their policies 
  and  procedures relating to identifying, evaluating and complying with laws and regulations and detecting 
  and responding to the risks of fraud;
- whether the directors were aware of any instances of non-compliance or of actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
  and those matters discussed among the audit engagement team regarding how and where fraud might 
  occur in the financial statements and any potential indicators of fraud.
Given the relatively simple business model of the Company with comparatively few unexpected fluctuations in the reported financial performance and position, such that any unexpected items would be specifically investigated as part of audit work; our assessment of the susceptibility of the Company's financial statements to material misstatement, including how fraud may transpire, is considered to be low.

As is common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override (i.e. posting of unusual journals and complex transactions).
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on those areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management (as required by auditing standards).
The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly, the Company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation.
 
Page 7

 
IVOR BRAKA LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF IVOR BRAKA LIMITED (CONTINUED)



The key laws and regulations we considered in this context included the Company’s ongoing compliance with the UK Companies Act and current UK employment and tax legislation and the following most likely to have such an effect given the nature of the Company's activities: anti-trust compliance, anti-bribery and corruption, data privacy, anti-money laundering, artist rights, title ownership and cross-border transactions and movement of goods.
We communicated those relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected somematerial misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
Auditing standards limit the required audit procedures to identify non-compliance with laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.
In addition, as with any audit, the risk of non-detection of a material misstatement resulting from fraud is greater than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect
non-compliance.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 Auditors' 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.





Anthony Pins (Senior Statutory Auditor)
  
for and on behalf of
Nyman Libson Paul LLP
 
Chartered Accountants
Statutory Auditors
  
124 Finchley Road
London
NW3 5JS

29 October 2024
Page 8

 
IVOR BRAKA LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
12,920,779
18,446,891

Cost of sales
  
(6,623,660)
(9,972,892)

Gross profit
  
6,297,119
8,473,999

Administrative expenses
  
(5,368,673)
(6,523,361)

Other operating income
 5 
225,829
21,069

Operating profit
 6 
1,154,275
1,971,707

Interest receivable and similar income
 9 
62,181
20,238

Interest payable and similar expenses
 10 
(1,221,653)
(1,058,010)

(Loss)/profit before taxation
  
(5,197)
933,935

Tax on (loss)/profit
 11 
(268,679)
(240,622)

(Loss)/profit for the financial year
  
(273,876)
693,313

  

Total comprehensive income for the year
  
(273,876)
693,313

(Loss)/profit for the year attributable to:
  

Owners of the parent Company
  
(273,876)
693,313

  
(273,876)
693,313

The notes on pages 20 to 39 form part of these financial statements.

Page 9

 
IVOR BRAKA LIMITED
REGISTERED NUMBER: 01840837

CONSOLIDATED BALANCE SHEET
AS AT 31 OCTOBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
18,284,074
15,462,074

  
18,284,074
15,462,074

Current assets
  

Stocks
 15 
23,366,543
23,294,628

Debtors: amounts falling due within one year
 16 
3,214,698
8,095,301

Cash at bank and in hand
 17 
592,702
55,467

  
27,173,943
31,445,396

Creditors: amounts falling due within one year
 18 
(17,875,015)
(19,019,271)

Net current assets
  
 
 
9,298,928
 
 
12,426,125

Total assets less current liabilities
  
27,583,002
27,888,199

Creditors: amounts falling due after more than one year
 19 
(11,000,000)
(11,000,000)

Provisions for liabilities
  

Deferred taxation
 21 
(916,362)
(647,683)

  
 
 
(916,362)
 
 
(647,683)

Net assets
  
15,666,640
16,240,516


Capital and reserves
  

Called up share capital 
 22 
2
2

Other reserves
  
261,931
261,931

Profit and loss account
  
15,404,707
15,978,583

Equity attributable to owners of the parent Company
  
15,666,640
16,240,516

  
15,666,640
16,240,516


Page 10

 
IVOR BRAKA LIMITED
REGISTERED NUMBER: 01840837
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 OCTOBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Ivor Braka
Director

Date: 29 October 2024

The notes on pages 20 to 39 form part of these financial statements.

Page 11

 
IVOR BRAKA LIMITED
REGISTERED NUMBER: 01840837

COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
1,737,662
21,480

Investments
 14 
2
2

  
1,737,664
21,482

Current assets
  

Stocks
 15 
23,316,613
23,245,287

Debtors: amounts falling due within one year
 16 
23,354,114
27,232,451

Cash at bank and in hand
 17 
461,157
6,287

  
47,131,884
50,484,025

Creditors: amounts falling due within one year
 18 
(16,713,721)
(18,226,477)

Net current assets
  
 
 
30,418,163
 
 
32,257,548

Total assets less current liabilities
  
32,155,827
32,279,030

  

Creditors: amounts falling due after more than one year
 19 
(11,000,000)
(11,000,000)

Provisions for liabilities
  

Deferred taxation
 21 
(71,904)
(4,237)

  
 
 
(71,904)
 
 
(4,237)

Net assets excluding pension asset
  
21,083,923
21,274,793

Net assets
  
21,083,923
21,274,793


Capital and reserves
  

Called up share capital 
 22 
2
2

Other reserves
  
261,931
261,931

Profit and loss account brought forward
  
21,012,860
19,776,203

Profit for the year
  
109,130
1,236,657

Other changes in the profit and loss account

  

(300,000)
-

Profit and loss account carried forward
  
20,821,990
21,012,860

  
21,083,923
21,274,793


Page 12

 
IVOR BRAKA LIMITED
REGISTERED NUMBER: 01840837
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 OCTOBER 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Ivor Braka
Director

Date: 29 October 2024

The notes on pages 20 to 39 form part of these financial statements.

Page 13

 
IVOR BRAKA LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023


Called up share capital
Other reserves
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£

At 1 November 2022
2
261,931
15,978,583
16,240,516
16,240,516


Comprehensive income for the year

Loss for the year
-
-
(273,876)
(273,876)
(273,876)
Total comprehensive income for the year
-
-
(273,876)
(273,876)
(273,876)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(300,000)
(300,000)
(300,000)


At 31 October 2023
2
261,931
15,404,707
15,666,640
15,666,640


The notes on pages 20 to 39 form part of these financial statements.

Page 14

 
IVOR BRAKA LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2022


Called up share capital
Other reserves
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£
£

At 1 November 2021
2
261,931
15,285,270
15,547,203
15,547,203


Comprehensive income for the year

Profit for the year
-
-
693,313
693,313
693,313
Total comprehensive income for the year
-
-
693,313
693,313
693,313


At 31 October 2022
2
261,931
15,978,583
16,240,516
16,240,516


The notes on pages 20 to 39 form part of these financial statements.

Page 15

 
IVOR BRAKA LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023


Called up share capital
Other reserves
Profit and loss account
Total equity

£
£
£
£

At 1 November 2022
2
261,931
21,012,860
21,274,793


Comprehensive income for the year

Profit for the year
-
-
109,130
109,130
Total comprehensive income for the year
-
-
109,130
109,130


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(300,000)
(300,000)


At 31 October 2023
2
261,931
20,821,990
21,083,923


The notes on pages 20 to 39 form part of these financial statements.

Page 16

 
IVOR BRAKA LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2022


Called up share capital
Other reserves
Profit and loss account
Total equity

£
£
£
£

At 1 November 2021
2
261,931
19,776,203
20,038,136


Comprehensive income for the year

Profit for the year
-
-
1,236,657
1,236,657
Total comprehensive income for the year
-
-
1,236,657
1,236,657


At 31 October 2022
2
261,931
21,012,860
21,274,793


The notes on pages 20 to 39 form part of these financial statements.

Page 17

 
IVOR BRAKA LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023

2023
2022
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(273,876)
693,313

Adjustments for:

Depreciation of tangible assets
570,491
490,581

Interest received
(62,181)
(20,238)

Interest paid
1,221,654
1,058,010

Taxation charge
268,679
240,622

Bad debts written-off
-
100,000

Loss on disposal of tangible assets
-
391,281

(Increase)/decrease in stocks
(71,915)
5,573,647

Decrease/(increase) in debtors
4,880,602
(7,123,184)

Foreign exchange
(131,442)
702,724

Increase in creditors
669,926
625,067

Corporation tax (paid)/received
(62,112)
1

Net cash generated from operating activities

7,009,826
2,731,824


Cash flows from investing activities

Interest received
62,181
20,238

Purchase of tangible fixed assets
(3,392,491)
(489,377)

Net cash from investing activities

(3,330,310)
(469,139)

Cash flows from financing activities

Interest paid
(1,131,593)
(972,241)

Repayment of loans
(2,690,000)
-

Other new loans
2,471,013
-

Repayment of other loans
(1,536,545)
-

New secured loans
-
4,792,685

Dividends paid
(300,000)
-

Loans advanced to the director
-
(4,039,652)

Net cash used in financing activities
(3,187,125)
(219,208)
Page 18

 
IVOR BRAKA LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023


2023
2022

£
£



Net increase in cash and cash equivalents
492,391
2,043,477

Cash and cash equivalents at beginning of year
(10,941,977)
(12,282,730)

Foreign exchange gains and losses
131,442
(702,724)

Cash and cash equivalents at the end of year
(10,318,144)
(10,941,977)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
592,702
55,467

Bank overdrafts
(10,910,846)
(10,997,444)

(10,318,144)
(10,941,977)


The notes on pages 20 to 39 form part of these financial statements.

Page 19

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

1.


General information

Ivor Braka Limited is a private company limited by shares incorporated in England and Wales. The registered office is 71 Queen Victoria Street, London, EC4V 4BE.
Details of the company's trading activity is contained in the Strategic Report.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
 

Page 20

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.4

Revenue recognition

Turnover represents the invoiced amount of goods sold and services provided in respect of fine art transactions stated exclusive of value added tax.
Income form the sale of works of art is recognised at the date when the risks and rewards of ownership of the item transfer to the purchaser. Commission income is recognised when the company is entitled to receipt as a result of the completion of a deal.
Turnover relating to food and drink is recognised on the date in which the food and drink is provided to customers. Turnover relating to accomidation is recognised on an accruals basis. deposits paid in advance of room bookings are recorded as deferred income unless the services to which they relate have been provided by the balance sheet date, in which case they are included in turnover. Interest receiveable is recognised on an accruals basis.
 

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 21

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.9

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 22

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.10

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold land
-
Freehold land is not depreciated
Freehold building
-
2% per annum on cost
Plant & machinery
-
10% - 20% per annum on cost
Fixtures, fittings & office equipment
-
10% - 20% per annum on cost
Other tangibles
-
33% per annum on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Valuation of investments

Investments in shares which are not publicly traded are measured at cost less impairment. The parent company's investments consist only of its investments in its subsidiaries.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 23

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. 

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.16

Creditors

Short-term creditors are measured at the transaction price.

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

Financial instruments

The group only enters into basic financial instrument transactions that result in the recognition of
financial assets and liabilities like trade and other debtors and creditors, loans from banks and other
third parties, loans to related parties and investments in ordinary shares.
Investments in non-derivative instruments that are equity to the issuer are measured:
• at fair value with changes recognised in the consolidated statement of comprehensive income if the   shares are publicly traded or their fair value can otherwise be measured reliably;
• at cost less impairment for all other investments

 
2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 24

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and
assumptions that affect the amounts reported for assets and liabilities as at the reporting dates as well as
the amounts reported for revenues and expenses during the year. The resulting accounting estimates will,
by definition, seldom equal the related actual results.
The following are the company's key sources of estimation uncertainty:
Stock Valuation
Stock is valued at the lower of cost and net realisable value. Where works by artists have fallen short of auction estimates or have failed to sell, it may indicate that a write down of stock value is due. A key estimation is to make a judgement of net realisable value based on current market conditions. The carrying amount is £23,366,543 (2022- £23,294,628)


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sale of goods
10,036,764
17,494,168

Rendering of services
871,029
739,503

Commissions received
2,012,986
213,220

12,920,779
18,446,891


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
5,728,991
6,609,609

Rest of the world
7,191,788
11,837,282

12,920,779
18,446,891


Page 25

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

5.


Other operating income

2023
2022
£
£

Insurance claims
224,839
410,000

Miscellaneous other operating income
990
2,350

Loss on disposal of fixed assets
-
(391,281)

225,829
21,069



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
(131,442)
702,724


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
30,060
16,847

Fees payable to the Company's auditors in respect of:

All non-audit services not included above
49,965
21,839

Page 26

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

8.


Employees

Staff costs were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
2,029,740
1,998,982
67,500
59,976

Social security costs
147,253
170,968
5,172
6,671

Cost of defined contribution scheme
47,473
44,963
-
-

2,224,466
2,214,913
72,672
66,647


The average monthly number of employees, including the director, during the year was as follows:


        2023
        2022
            No.
            No.







Administrative and support
2
2



Pub and kitchen staff
100
108

102
110

The Company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL)

9.


Interest receivable

2023
2022
£
£


Other finance income
62,181
20,238

62,181
20,238


10.


Interest payable and similar expenses

2023
2022
£
£


Interest on bank overdrafts and borrowings
742,812
438,976

Interest expenses on other finance liabilities
474,694
619,034

Other interest payable
4,147
-

1,221,653
1,058,010

Page 27

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
62,514


Total current tax
-
62,514

Deferred tax


Origination and reversal of timing differences
268,679
178,108

Total deferred tax
268,679
178,108


Tax on (loss)/profit
268,679
240,622

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(5,197)
933,935


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
(1,299)
177,448

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
110,114

Capital allowances for year in excess of depreciation
269,978
(89,686)

Other differences leading to an increase (decrease) in the tax charge
-
42,746

Total tax charge for the year
268,679
240,622


Factors that may affect future tax charges

From April 2023 the corporation tax rate increased from 19% to 25%.

Page 28

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

12.


Dividends

2023
2022
£
£


Dividends paid
300,000
-

Page 29

 


 
IVOR BRAKA LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023


13.


Tangible fixed assets


Group







Land and buildings
Plant and machinery
Fixtures and fittings
Office equipment
Other fixed assets
Total

£
£
£
£
£
£



Cost or valuation


At 1 November 2022
15,865,157
411,235
3,975,555
168,222
65,176
20,485,345


Additions
3,264,620
28,425
88,809
10,637
-
3,392,491



At 31 October 2023

19,129,777
439,660
4,064,364
178,859
65,176
23,877,836



Depreciation


At 1 November 2022
1,708,374
193,261
2,973,793
102,511
45,332
5,023,271


Charge for the year on owned assets
315,202
27,829
207,013
14,696
5,751
570,491



At 31 October 2023

2,023,576
221,090
3,180,806
117,207
51,083
5,593,762



Net book value



At 31 October 2023
17,106,201
218,570
883,558
61,652
14,093
18,284,074



At 31 October 2022
14,156,783
217,974
1,001,762
65,711
19,844
15,462,074

Page 30

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

           13.Tangible fixed assets (continued)


Company






Land and buildings
Fixtures and fittings
Office equipment
Other fixed assets
Total

£
£
£
£
£

Cost or valuation


At 1 November 2022
-
277,591
43,566
51,846
373,003


Additions
1,738,208
-
-
-
1,738,208



At 31 October 2023

1,738,208
277,591
43,566
51,846
2,111,211



Depreciation


At 1 November 2022
-
277,591
34,409
39,523
351,523


Charge for the year on owned assets
17,382
-
3,300
1,344
22,026



At 31 October 2023

17,382
277,591
37,709
40,867
373,549



Net book value



At 31 October 2023
1,720,826
-
5,857
10,979
1,737,662



At 31 October 2022
-
-
9,157
12,323
21,480






Page 31

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 November 2022
2



At 31 October 2023
2





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

The Gunton Arms Limited
124 Finchley Road, London, England, NW3 5JS
Ordinary
100%
The Suffield Arms Limited
124 Finchley Road, London, England, NW3 5JS
Ordinary
100%

The Gunton Arms Limited
The principal activity of The Gunton Arms Limited is the operation of a bar, restaurant and hotel facilities on the Gunton Estate, in Norfolk.
The Suffield Arms Limited
The principal activity of The Suffield Arms Limited is the operation of a bar and restaurant in Norfolk.
For the year ending 31 October 2022 the following subsidiaries were entitled to exemption from audit undersection 479A of the Companies Act 2006 relating to subsidiary companies:
The Gunton Arms Limited – Company No. 06997263
The Suffield Arms Limited – Company No. 09957797

Page 32

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

15.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Works of art
23,316,613
23,245,287
23,316,613
23,245,287

Food and wine
49,930
49,341
-
-

23,366,543
23,294,628
23,316,613
23,245,287



16.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
274,389
4,411,522
267,981
4,406,904

Amounts owed by group undertakings
-
-
20,582,409
19,729,249

Other debtors
2,516,490
3,095,452
2,491,416
3,082,665

Prepayments and accrued income
423,819
588,327
12,308
13,633

3,214,698
8,095,301
23,354,114
27,232,451



17.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
592,702
55,467
461,157
6,287

Less: bank overdrafts
(10,910,846)
(10,997,444)
(10,910,846)
(10,997,444)

(10,318,144)
(10,941,977)
(10,449,689)
(10,991,157)


Page 33

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank overdrafts
10,910,846
10,997,444
10,910,846
10,997,444

Bank loans
-
2,690,000
-
2,690,000

Other loans
4,273,094
3,338,626
4,273,094
3,338,626

Trade creditors
1,729,855
364,703
1,345,611
22,113

Corporation tax
403
62,515
403
62,515

Social security and other taxes
42,153
116,623
-
71,279

Other creditors
575,403
173,931
99,620
36,258

Accruals and deferred income
343,261
1,275,429
84,147
1,008,242

17,875,015
19,019,271
16,713,721
18,226,477



19.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
11,000,000
11,000,000
11,000,000
11,000,000


Details of the terms of repayment and the rates of any interest payable on the amounts is detailed per note 24.


20.


Financial instruments

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Financial assets

Financial assets that are debt instruments measured at amortised cost
3,383,581
7,972,440
23,802,963
27,225,106

Financial assets that are equity instruments measured at cost less impairment
-
-
2
2

3,383,581
7,972,440
23,802,965
27,225,108


Financial liabilities

Financial liabilities that are debt instruments measured at amortised cost
28,489,198
29,702,460
27,629,171
29,092,683

Page 34

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

21.


Deferred taxation


Group





2023


£






At beginning of year
(647,683)


Charged to profit or loss
(268,679)



At end of year
(916,362)

Company




2023


£






At beginning of year
(4,237)


Charged to profit or loss
(67,667)



At end of year
(71,904)

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(916,362)
(647,683)
(71,904)
(4,237)

(916,362)
(647,683)
(71,904)
(4,237)


22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2 (2022 - 2) Ordinary shares of £1.00 each
2
2


Page 35

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

22.Share capital (continued)

Profit and loss account
This reserve includes all current and prior period retained profits and losses.
Other reserves
The capital contribution reserve represents the difference arising on initial recognition of a fixed term loan from a related party at below market rate of interest.


23.


Pension commitments

The group operates a defined contribution pension scheme. the pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £47,473 (2022: £44,963).
,Contributions totalling £7,845 (2022: £8,368) were payable to the scheme at the end of the year and are included in creditors


24.


Loans and borrowings

2023
Group 
2022
2023
Company
2022
        £
        £
        £
        £
Current loans and borrowings

Bank borrowings

-

2,690,000

-
 
2,690,000
 
Bank overdrafts

10,910,846

10,997,444

10,910,846
 
10,997,444
 
Other loans

1,892,142

3,338,626

-
 
3,338,626
 

12,802,988

17,026,070

10,910,846
 
17,026,070
 

Page 36

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
Due after one year

Loans and borrowings

11,000,000

11,000,000

13,380,953
 
11,000,000
 
Other loans

2,380,952

-

-
 
-
 

13,380,952

11,000,000

13,380,953
 
11,000,000
 

Bank borrowings
Bank borrowings with a total carrying amount of £11,000,000 (2022 - £13,690,000) are denominated in £.
At the year-end, there were two loans provided by C Hoare & Co. A 3-year fixed rate loan of carrying amount £5,000,000 with fixed interest rate of 3.64% repayable on 9 December 2024. A 3-year fixed rate loan of carrying amount £6,000,000 with fixed interest rate of 3.72% repayable on 11 August 2025.
These borrowings are secured by a personal guarantee from the Director, Mr Braka.
Bank overdrafts
Bank overdraft with a carrying amount of £10,910,846 (2022 - £10,997,444) are denominated in £ , € and $. The GBP overdraft facility has variable interest rate of 1.5% over the Bank of England base rate. The EUR overdraft facility has variable interest rate of 3.5% over the ECB rate, and the USD Overdraft facility has variable interest of 3.5% over the US FED rate.
The bank overdraft facility is provided by C Hoare & Co. This overdraft facility is secured by a personal guarantee from the Director, Mr Braka.
Other loans
Other loans include a loan from the Jack Braka Trust as disclosed in note 26 of carrying amount £1,891,242 (2022 - £1,801,182). As the loan is at a rate of interest below market rate, it constitutes a financing transaction under FRS 102. The loan has been measured at present value of future payments discounted at 5% being the market rate available to the group on other commercial loans and borrowings.
Other loans included a loan of £2,380,952 to an unrelated party. This loan was repaid in full 21 December 2023.


25.


Related party transactions

Transactions with director – Group


At 1 November 2022
Advances to director
Repayments by director
At 31 October 2023
£
£
£
£

2023
Ivor Braka
3,041,247
5,685,557
(6,324,539)
2,402,266

Page 37

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
At 1 November 2021
Advances to director
Repayments by director
At 31 October 2022
        £
        £
        £
        £
2022

Ivor Braka

824,014

6,689,001

(4,471,768)
 
3,041,247
 

Repayments in the year included the purchase of land and property valued at £2,502,381, and rent of £145,833 paid to the director for use of his home.
At the year end, the director owed £2,402,266 to the company (2022 – £3,041,247). The loan with the director is unsecured and repayable on demand. Interest is charged daily at HMRC’s average official rate of interest on beneficial loan arrangements. The group charged interest of £62,182 (2022 - £20,235) to the director during the year.

Loans from related parties
Terms of loans from related parties
Jack Braka Trust, a Trust which is under the control of the director. Included within creditors is an amount due to the Jack Braka Trust of £1,891,242 (2022 - £1,801,182). This loan bears rate interest of 2% with an additional clause that this will be adjusted to ensure a market rate is charged. A market rate of 5% has been used as the discount rate to account for the loan at fair value. 

Due to Jack Braka Trust
Total
        £
        £
2023

At start of period

1,801,182

1,801,182

2022

-

-

Interest transactions

90,060

90,060

At end of period

1,891,242

1,891,242


Due to Jack Braka Trust
Due to director's wife
Total
        £
        £
        £
2022

At start of period

1,715,411

210,000

1,925,411
 
Payments from the director’s wife

-

325,000

325,000
 
Settlement to the director’s wife

-

(535,000)

(535,000)
 
Interest transactions

85,771

-

85,771
 
At end of period

1,801,182

-

1,801,182
 

Page 38

 
IVOR BRAKA LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

26.


Post balance sheet events

There are no material post balance sheets events that require disclosure in the accounts.


27.


Controlling party

The ultimate controlling party is Ivor Braka.

 
Page 39