Company registration number 09701168 (England and Wales)
BK PLUS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
BK PLUS LIMITED
COMPANY INFORMATION
Directors
Mr I Gould
Mr S Knight
Mr E J Hill
Mr M Ramzan
(Appointed 12 August 2024)
Mr D J Baldwin
Company number
09701168
Registered office
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
Auditor
Langard Lifford Hall Limited
Lifford Hall
Lifford Lane
Kings Norton
Birmingham
B30 3JN
BK PLUS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 36
BK PLUS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

 

The strategic report contains a review of the financial year in question, the principal risks and uncertainties facing the business, and the information on the future plans for the business. The directors, in preparing the strategic report, have complied with S414C of the Companies Act 2006.

Review of the business

During the financial year, the company’s principal activities continued to be the provision of accountancy, advisory and taxation services in the United Kingdom.

In September 2023, a significant minority shareholding in the Group was acquired by Palatine Private Equity, through Project Crown Topco Limited. BK Plus Limited became a cross guarantor in relation to the banking facilities of Project Crown Topco Limited securing long term funding to support further acquisitions by the group. This investment will allow the group to accelerate the buy and build strategy that it has successfully followed since incorporation in 2021.

The business continued its rapid expansion, through a combination of acquisitions and organic growth. The group made a number of strategic additions in the period which supports the group’s focus on client service to the SME market via a regional model. The business is well-positioned to provide the support required to existing and new clients and the Directors are pleased with the progress made during the period.

During the financial year ended 31 March 2024, the company acquired 8 accountancy practices that provide accountancy and taxation services in the United Kingdom.

Revenue for the year at £14.0m was £5.5m higher than the prior year, largely as a result of acquisitions made during the current and prior year.

Principal risks and uncertainties

The principal risks and uncertainties identified below, highlight potential factors that, in the opinion of the Board, could significantly impact the company’s future performance or reputation. To address these risks, the company employs a robust risk management framework that ensures effective control and oversight as we continue to grow as a business. Principally, this is centered around a risk register which is regularly reviewed by the Board to ensure it remains appropriate to emerging risks.

The company continues to monitor all aspects of risk including economic risk, competition and changes in market conditions, financial risk and customer dependencies. The company has a large number of clients that reduces the risk that it is overly dependent on a single customer.

Financial Risk

The company faces exposure to a number of financial risks. These have been outlined below.

The principal financial risk facing the company is the financial impact of delayed customer payments, particularly for acquired entities. The risk is mitigated by the implementation of consistent and robust credit control procedures with director oversight.

Wage inflation has been identified as a risk, which is managed by focusing on efficiency improvements

The company is reliant upon its immediate parent for funding of acquisitions. The company actively manages its working capital requirements to ensure it has sufficient funds for its operations.

 

BK PLUS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

Regulatory and Compliance Risk

The accountancy, audit, and taxation sectors are subject to stringent regulations. Beyond standard government guidelines and regulations, the company is also regulated by the ACCA and the Information Commissioners Office (ICO). Failure to comply with these regulations could harm the company’s reputation and potentially lead to financial consequences.

The company continues to operate closely with its regulator, the ACCA, to ensure ongoing compliance with all professional and regulatory duties. The company conducts frequent internal reviews across all service lines to ensure ongoing compliance.

The company has continued to strengthen its internal compliance and regulatory team during the financial year to ensure ongoing compliance with regulations. The Board receives regular updates from this team to ensure it is well-informed as to progress as the company continues to strive for stronger controls over regulatory compliance.

The company maintains a wide portfolio of insurance products to mitigate its risks including professional indemnity insurance. The company operates rigorous quality control procedures, to ensure that no claims arise from our advice, although some risk is inherent due to the nature of services provided.

Reputation

As the company continues on its acquisitive journey, the brand and reputation attached to BK Plus will continue to grow. Any damage to this reputation could adversely impact the future success of the business.

As outlined in the previous section, the company places significant effort on ongoing compliance the regulatory environment to ensure risk to reputation is mitigated to the fullest extent possible.

Due to the nature of the industry that the company operates within, the business is dependent upon retaining and recruiting qualified and talented individuals. The company retains a flexible workforce with the emphasis placed on employing high quality individuals and investing in training and development, led by an experienced HR team. The company provides its employees with an environment that allows our talented employees to thrive and deliver excellent client service.

Key performance indicators

A number of key performance indictors (KPIs) are adopted to monitor company performance against strategic targets. These consist of a number of financial measures, as outlined below

Financial measures deemed focal to company performance include turnover growth (year on year), operating profit, EBITDA and headcount. Accounting for the impact of acquisitions made in the financial year, the directors are pleased with the performance.

BK PLUS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Other information and explanations

Acquisitions

During the financial year, the Company purchased the trade and assets of the following accountancy practices:

Wrigley Partington Chartered Accountants

Worton Rock

Garratts

 

Further details are set out in the notes to the financial statements.

The company also acquired the shares of the following companies, with an immediate transfer of the trade and assets to the company:

Abrams Ashton Limited

Andorran Limited

Atkins Ferrie Services Limited

Riley & Co Limited

Wrigley Partington Limited

 

Further details are set out in the notes to the financial statements.

All acquisitions are businesses who provide accountancy, advisory and taxation services in the United Kingdom.

Future developments

Acquisitions

After the year end, the company acquired the shares, or trade and assets, of the following accountancy practices:

K J Watkin & Co.

Casson Backman Business and Tax Advisers Limited

Pooleys Accountants

Walker Moyle

BK Plus Limited will continue to acquire businesses that contribute to the strategic goals of the company.

Key Personnel

The Board was delighted to welcome a number of personnel to the business after the year end into strategic positions within the business. Mohammed Ramzan has joined in the position of Chief Financial Officer whilst Kevin Brevitt has joined in the position of Chief Technology Officer.

BK Plus Limited will continue to strengthen its key management positions whenever this is either deemed necessary, or individuals become available who will significantly strengthen the business.

On behalf of the board

Mr S Knight
Director
27 September 2024
BK PLUS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company was that of Accountants, Auditors and Tax advisers.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr I Gould
Mr S Knight
Mr E J Hill
Mr M Ramzan
(Appointed 12 August 2024)
Mr D J Baldwin
Mr G M Penter
(Appointed 1 December 2023 and resigned 29 February 2024)
Future developments

Following the end of the year the company continued its strategy of making acquisitions.

 

On the 10 April 2024 the company acquired the assets of K J Watkins, on 5 June 2024 the company acquired the shares of Casson Beckman Business and Tax Advisers Ltd, on 23 July 2024 the company acquired the assets of Pooleys Chartered Accountants and Business Advisers, on 5 August 2024 the company acquired the assets of Walker Moyle.

 

All of these post balance sheet events are non adjusting.

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 company’s auditor 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 company’s auditor 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.

On behalf of the board
Mr S Knight
Director
27 September 2024
BK PLUS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

BK PLUS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BK PLUS LIMITED
- 6 -
Opinion

We have audited the financial statements of BK Plus Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 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 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:

BK PLUS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BK PLUS LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, 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.

 

From the preliminary of the audit, we ensure our understanding of the entity is up to date. This includes, but is not limited to, current knowledge of their activities, the business and control environments, and their compliance with the applicable legal and regulatory frameworks. This information supports our risk identification and the subsequent design of audit procedures to mitigate those risks; ensuring that the audit evidence obtained is sufficient and appropriate to support our opinion.

 

In response to the risks identified, specific to this entity, we designed procedures which included, but were not limited to:

 

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.

BK PLUS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BK PLUS LIMITED (CONTINUED)
- 8 -

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

David Hanby
Senior Statutory Auditor
For and on behalf of Langard Lifford Hall Limited
27 September 2024
Chartered Certified Accountants and Statutory Auditors
Lifford Hall
Lifford Lane
Kings Norton
Birmingham
B30 3JN
BK PLUS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
14,015,759
8,501,136
Cost of sales
(8,587,746)
(5,475,051)
Gross profit
5,428,013
3,026,085
Administrative expenses
(5,311,152)
(2,549,337)
Other operating income
1,494,407
801,968
Exceptional item
4
(616,206)
(238,947)
Operating profit
5
995,062
1,039,769
Interest receivable and similar income
8
595
272
Interest payable and similar expenses
9
(154,100)
(108,566)
Amounts written off investments
10
-
(781,677)
Profit before taxation
841,557
149,798
Tax on profit
11
(323,465)
(221,819)
Profit/(loss) for the financial year
518,092
(72,021)

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

BK PLUS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
£
£
Profit/(loss) for the year
518,092
(72,021)
Other comprehensive income
-
-
Total comprehensive income for the year
518,092
(72,021)
BK PLUS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
13
13,659,196
4,112,293
Other intangible assets
13
6,884
13,921
Total intangible assets
13,666,080
4,126,214
Tangible assets
14
323,758
216,473
Investments
15
49
49
13,989,887
4,342,736
Current assets
Debtors
18
6,731,859
3,104,353
Cash at bank and in hand
1,912,138
29,540
8,643,997
3,133,893
Creditors: amounts falling due within one year
19
(17,942,147)
(4,289,725)
Net current liabilities
(9,298,150)
(1,155,832)
Total assets less current liabilities
4,691,737
3,186,904
Creditors: amounts falling due after more than one year
20
(2,805,833)
(2,090,112)
Provisions for liabilities
Provisions
23
243,945
-
0
Deferred tax liability
24
72,109
45,034
(316,054)
(45,034)
Net assets
1,569,850
1,051,758
Capital and reserves
Called up share capital
26
100
100
Profit and loss reserves
1,569,750
1,051,658
Total equity
1,569,850
1,051,758

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 27 September 2024 and are signed on its behalf by:
Mr S Knight
Director
Company registration number 09701168 (England and Wales)
BK PLUS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
100
1,123,679
1,123,779
Year ended 31 March 2023:
Loss and total comprehensive income
-
(72,021)
(72,021)
Balance at 31 March 2023
100
1,051,658
1,051,758
Year ended 31 March 2024:
Profit and total comprehensive income
-
518,092
518,092
Balance at 31 March 2024
100
1,569,750
1,569,850
BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information

BK Plus Limited is a private company limited by shares incorporated in England and Wales. The registered office is Azzurri House, Walsall Road, Aldridge, Walsall, England, WS9 0RB.

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.

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

 

 

The financial statements of the company are consolidated in the financial statements of Project Crown Topco Limited. These consolidated financial statements are available from its registered office, Azzurri House, Walsall Road, Aldridge, Walsall, England, WS9 0RB.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

BK Plus Limited is a wholly owned subsidiary of Project Crown Bidco Limited and the results of BK Plus Limited are included in the consolidated financial statements of Project Crown Topco Limited which are available from Azzurri House, Walsall Road, Aldridge, Walsall, England, WS9 0RB.

BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.2
Business combinations

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.

 

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
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Revenue for services represents the fair value of services provided during the year on work carried out for clients. Fair value represents the amount expected to be recoverable from clients and is based on the time spent, expertise and skills provided and expenses incurred. Fee income is stated net of Value Added Tax.

 

Services provided to clients during the year which, by the balance sheet date, has not been invoiced to clients, has been recognised as fee income in accordance with Section 23 of FRS 102. Fee income recognised in this manner is based on an assessment of the fair value of the services provided by the balance sheet date as a proportion of the total value of the engagement.

 

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition over the fair value of net assets acquired relating to the acquisition of unincorporated businesses and the hive-up of net assets from the acquisition of subsidiary companies . It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

 

1.6
Intangible fixed assets other than goodwill

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

 

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

BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -

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:

Website development
Straight line 4 years
1.7
Tangible fixed assets

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

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

Leasehold land and buildings
Over the terms of the lease ranging from 5 - 10 years
Fixtures and fittings
Straight Line 4 years
Computers
Straight Line 4 years

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 credited or charged to profit or loss.

1.8
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. 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 company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

1.9
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -

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

1.10
Cash 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.

1.11
Financial instruments

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

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
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 company 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the company 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 company.

1.13
Taxation

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

BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

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

1.14
Provisions

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

 

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

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

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

BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
1.17
Leases

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

 

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

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

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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Fixed assets and depreciation

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, all relevant known factors are taken into account but there is inherent uncertainty present in making this assessment.

Provision for work in progress

A provision for unrecoverable work in progress has been included, on the basis that management estimate that 20% of the total value of work in progress at the year end is non-recoverable.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Accountancy, payroll and taxation services
14,015,759
8,501,136
BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 20 -
2024
2023
£
£
Other revenue
Interest income
595
272
Commissions received
121,456
70,374
Management charge income
1,369,926
719,527
Other sundry income
-
12,067

All turnover arises from the United Kingdom.

4
Exceptional item
2024
2023
£
£
Expenditure
Exceptional costs
616,206
238,947

During the current and prior year, the company acquired a number of businesses resulting in various terminations of agreements, contracts, subscriptions etc. The following is a summary of the resulting costs which are considered to be exceptional by the directors:

 

 

2024

 

2023

 

£

 

£

Legal and professional

-

 

63,935

IT costs

242,213

 

53,190

Contracts/Subscriptions

65,689

 

12,815

Contractors

226,548

 

104,924

Property

12,523

 

4,083

Salaries

69,233

 

-

 

 

 

 

 

5
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
15,500
14,500
Depreciation of owned tangible fixed assets
101,355
80,614
Amortisation of intangible assets
409,311
180,149
Operating lease charges
488,025
284,077
BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
6
Employees

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

2024
2023
Number
Number
Directors and management
30
16
Direct wages
160
91
Admin
38
17
Exceptional
1
-
Total
229
124

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
8,378,600
5,086,015
Social security costs
879,762
558,883
Pension costs
690,678
433,545
9,949,040
6,078,443
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
750,910
516,875
Company pension contributions to defined contribution schemes
73,022
50,333
823,932
567,208

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
206,667
190,833
Company pension contributions to defined contribution schemes
22,000
19,667
BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
595
272
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
128,500
105,953
Other interest on financial liabilities
23,340
353
Interest on finance leases and hire purchase contracts
2,260
2,260
154,100
108,566
10
Amounts written off investments
2024
2023
£
£
Amounts written back to/(written off) current loans
3,915,183
(781,677)
Other gains and losses
(3,915,183)
-
-
(781,677)
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
304,845
216,657
Deferred tax
Origination and reversal of timing differences
18,620
5,162
Total tax charge
323,465
221,819
BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Taxation
(Continued)
- 23 -

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

2024
2023
£
£
Profit before taxation
841,557
149,798
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
210,389
28,462
Tax effect of expenses that are not deductible in determining taxable profit
103,208
199,518
Group relief
(97,748)
-
0
Amortisation on assets not qualifying for tax allowances
101,828
-
0
Other permanent differences
-
0
2,392
Deferred tax adjustments in respect of prior years
5,788
-
0
Capital Allowances
-
0
(11,323)
Tax WDV lower than NBV
-
0
2,770
Taxation charge for the year
323,465
221,819
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Fixed asset investments
15
3,915,183
-
Recognised in:
Amounts written off investments
3,915,183
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
13
Intangible fixed assets
Goodwill
Website development
Total
£
£
£
Cost
At 1 April 2023
4,346,731
28,150
4,374,881
Additions - business combinations
9,646,052
-
0
9,646,052
Transfers
303,125
-
0
303,125
At 31 March 2024
14,295,908
28,150
14,324,058
Amortisation and impairment
At 1 April 2023
234,438
14,229
248,667
Amortisation charged for the year
402,274
7,037
409,311
At 31 March 2024
636,712
21,266
657,978
Carrying amount
At 31 March 2024
13,659,196
6,884
13,666,080
At 31 March 2023
4,112,293
13,921
4,126,214
14
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 April 2023
21,969
115,755
224,059
361,783
Additions
2,474
30,467
118,248
151,189
Transfers
-
0
30,897
26,554
57,451
At 31 March 2024
24,443
177,119
368,861
570,423
Depreciation and impairment
At 1 April 2023
6,195
53,783
85,332
145,310
Depreciation charged in the year
-
0
30,846
70,509
101,355
At 31 March 2024
6,195
84,629
155,841
246,665
Carrying amount
At 31 March 2024
18,248
92,490
213,020
323,758
At 31 March 2023
15,774
61,972
138,727
216,473
BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
15
Fixed asset investments
2024
2023
Notes
£
£
Investments in associates
17
49
49
49
49
Movements in fixed asset investments
Shares in subsidiaries and associates
£
Cost or valuation
At 1 April 2023
49
Additions
9,273,476
Transfer to goodwill on hive-up
(5,358,293)
At 31 March 2024
3,915,232
Impairment
At 1 April 2023
-
Impairment losses
3,915,183
At 31 March 2024
3,915,183
Carrying amount
At 31 March 2024
49
At 31 March 2023
49

When a subsidiary is acquired, BK Plus Limited hives up all the assets and liabilities of the acquired company into itself, and subsequently impairs the value of its investments to their fair value of zero.

BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
16
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Gilpin & Harding Limited
1
Ordinary
100.00
-
Burrows & Lewis Limited
1
Ordinary
100.00
-
BK Plus (Solihull) Limited
1
Ordinary
100.00
-
BK Plus (Stoke) Limited
1
Ordinary
100.00
-
Blueprint Associates Ltd
1
Ordinary
100.00
-
Chapman Nash Accountancy Limited
1
Ordinary
100.00
-
BK Plus (St Helens) Limited
1
Ordinary
0
100.00
BK Plus (Cheltenham) Limited
1
Ordinary
100.00
-
Atkins Ferrie Services Limited
1
Ordinary
100.00
-
Riley & Co Limited
1
Ordinary
100.00
-
Wrigley Partington Limited
1
Ordinary
100.00
-
Abrams Ashton Holdings Limited
1
Ordinary
100.00
-

Registered office addresses (all UK unless otherwise indicated):

1
Azzurri House, Walsall Business Park, Aldridge, Walsall, West Midlands, WS9 0RB
17
Associates

Details of the company's associates at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
BK Plus Audit Limited
Azzurri House, Walsall Business Park, Aldridge, Walsall, West Midlands, WS9 0RB
Ordinary
49.00
18
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,333,315
1,522,769
Other debtors
2,911,328
1,329,579
Prepayments and accrued income
487,216
252,005
6,731,859
3,104,353
BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
19
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
21
-
0
509,145
Obligations under finance leases
22
12,302
16,406
Other borrowings
21
81,000
274,289
Trade creditors
702,777
507,195
Amounts owed to group undertakings
12,708,578
-
0
Corporation tax
659,529
361,775
Other taxation and social security
948,002
409,059
Other creditors
2,604,375
2,056,687
Accruals and deferred income
225,584
155,169
17,942,147
4,289,725

Amounts due to group undertakings are interest free and repayable on demand.

20
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
21
-
0
1,731,143
Obligations under finance leases
22
-
0
12,302
Other creditors
2,805,833
346,667
2,805,833
2,090,112
21
Loans and overdrafts
2024
2023
£
£
Bank loans
-
0
2,142,337
Bank overdrafts
-
0
97,951
Other loans
81,000
274,289
81,000
2,514,577
Payable within one year
81,000
783,434
Payable after one year
-
0
1,731,143

 

BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
22
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
13,999
18,666
In two to five years
-
0
13,995
13,999
32,661
Less: future finance charges
(1,697)
(3,953)
12,302
28,708

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

23
Provisions for liabilities
2024
2023
£
£
Dilapidations provision
243,945
-
Movements on provisions:
Dilapidations provision
£
Additional provisions in the year
243,945

On acquisition of numerous subsidiaries during the year, on review of the leasehold properties acquired a fair value adjustment for dilapidation costs expected to arise has been provided for.

24
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
72,109
45,034
BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
24
Deferred taxation
(Continued)
- 29 -
2024
Movements in the year:
£
Liability at 1 April 2023
45,034
Charge to profit or loss
18,620
Other
8,455
Liability at 31 March 2024
72,109

The deferred tax liability set out above is expected to reverse in future periods and relates to accelerated capital allowances that are expected to mature within the same period.

25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
690,678
433,545

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

26
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
27
Acquisitions
On 25 August 2023 the company acquired the trade and assets of Wrigley Partington Partnership.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
10,000
-
10,000
Trade and other receivables
250,005
(57,368)
192,637
Total identifiable net assets
260,005
(57,368)
202,637
Goodwill
1,996,763
Total consideration
2,199,400
BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
27
Acquisitions
(Continued)
- 30 -
Satisfied by:
£
Cash
1,319,400
Deferred consideration
880,000
2,199,400
On 26 June 2023 the company acquired the trade and assets of Worton Rock.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
2,000
-
2,000
Trade and other receivables
135,009
(14,860)
120,149
Provisions
-
(25,000)
(25,000)
Total identifiable net assets
137,009
(39,860)
97,149
Goodwill
768,876
Total consideration
866,025
Satisfied by:
£
Cash
542,025
Deferred consideration
324,000
866,025
On 31 July 2023 the company acquired the trade and assets of Garratts.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Trade and other receivables
100,008
(38,235)
61,773
Provisions
-
(50,500)
(50,500)
Total identifiable net assets
100,008
(88,735)
11,273
Goodwill
1,054,752
Total consideration
1,066,025
BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
27
Acquisitions
(Continued)
- 31 -
Satisfied by:
£
Cash
666,025
Deferred consideration
400,000
1,066,025
On 25 August 2023 the company acquired 100% of the issued share capital of Wrigley Partington Limited
Net assets acquired
Book Value
Adjustments
Fair Value
£
£
£
Trade and other receivables
29,683
-
29,683
Cash and cash equivalents
183,121
-
183,121
Trade and other payables
(4,546)
-
(4,546)
Tax liabilities
(13,301)
-
(13,301)
Provisions
(50,000)
-
(50,000)
Total identifiable net assets
144,957
-
144,957
Goodwill
175,122
Total consideration
320,079
Satisfied by:
£
Cash
320,079
BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
27
Acquisitions
(Continued)
- 32 -
On 1 September 2023 the company acquired 100% of the issued share capital of Riley & Co Limited.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
8,852
-
8,852
Trade and other receivables
399,540
(51,442)
348,098
Cash and cash equivalents
232,016
-
232,016
Trade and other payables
(172,172)
46,197
(125,975)
Tax liabilities
(60,693)
-
(60,693)
Provisions
-
(45,000)
(45,000)
Deferred tax
(2,213)
-
(2,213)
Total identifiable net assets
405,330
(50,245)
355,085
Goodwill
1,442,313
Total consideration
1,797,398
Satisfied by:
£
Cash
1,257,398
Deferred consideration
540,000
1,797,398
On 27 December 2023 the company acquired 100% of the issued share capital of Abrams Ashton Holdings Limited.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
28,980
-
28,980
Trade and other receivables
489,084
(45,000)
444,084
Cash and cash equivalents
120,711
-
120,711
Trade and other payables
(203,771)
-
(203,771)
Tax liabilities
(91,484)
-
(91,484)
Provisions
-
(20,020)
(20,020)
Deferred tax
(7,145)
-
(7,145)
Total identifiable net assets
336,375
(65,020)
271,355
Goodwill
903,097
Total consideration
1,174,452
BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
27
Acquisitions
(Continued)
- 33 -
Satisfied by:
£
Cash
573,340
Deferred consideration
601,112
1,174,452
29 February 2024 the company acquired 100% of the issued share capital of Andorran Limited.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
4,904
-
4,904
Trade and other receivables
549,836
(20,648)
529,188
Cash and cash equivalents
1,244,415
-
1,244,415
Trade and other payables
(143,803)
-
(143,803)
Tax liabilities
(186,576)
-
(186,576)
Provisions
-
(17,000)
(17,000)
Retirement benefit pension scheme
(5,000)
-
(5,000)
Total identifiable net assets
1,463,776
(37,648)
1,426,128
Goodwill
1,015,917
Total consideration
2,442,045
Satisfied by:
£
Cash
1,862,045
Deferred consideration
580,000
2,442,045
BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
27
Acquisitions
(Continued)
- 34 -
On 11 March 2024 the company acquired 100% of the issued share capital of Atkins Ferrie Services Limited.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Intangible assets
303,125
-
303,125
Property, plant and equipment
4,716
-
4,716
Trade and other receivables
749,837
(228,029)
521,808
Cash and cash equivalents
744,392
-
744,392
Trade and other payables
(138,644)
-
(138,644)
Tax liabilities
(147,371)
-
(147,371)
Provisions
-
(36,425)
(36,425)
Deferred tax
-
(1,310)
(1,310)
Total identifiable net assets
1,516,055
(265,764)
1,250,291
Goodwill
2,289,211
Total consideration
3,539,502
Satisfied by:
£
Cash
2,144,502
Deferred consideration
1,395,000
3,539,502
All incorporated businesses acquired in the year were hived up into BK Plus Limited on the day of acquistion with a write off of the resulting inter company balance and an impairment to investment in subsidiaries for the same amount.
28
Financial commitments, guarantees and contingent liabilities

Financial commitments and guarantees

 

The company became a chargor on a debenture dated 16/09/2023 with Shawbrook Bank Limited, with fixed and floating assets over its assets, as security for liabilities across all chargors, as they fall due. As at 31/03/2024 the obligation by all parties totals £10,285,000.

 

The company became a chargor on a guarantee and debenture dated 16/09/2023 with Palatine Private Equity LLP, with fixed and floating charges over its assets, as security for liabilities across all chargors as they fall due. As at 31/03/2024 the obligation by all parties totals £15,638,568.

 

Contingent liabilities

 

For some of the acquisitions in the year, built into the share purchase agreements, are clauses that relate to future fee income earned and WIP/debt recoverability. It is possible that these clauses will give rise to an adjustment to the overall consideration to be paid for the acquisition, as of the date of signing the accounts these amounts are not known therefore no reserve for these have been included in the accounts.

BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 35 -
29
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
567,453
295,858
Between two and five years
1,184,472
560,272
In over five years
119,150
-
0
1,871,075
856,130
30
Events after the reporting date

Following the end of the year the company continued its strategy of making acquisitions.

 

On the 10 April 2024 the company acquired the assets of K J Watkins, on 5 June 2024 the company acquired the shares of Casson Beckman Business and Tax Advisers Ltd, on 23 July 2024 the company acquired the assets of Pooleys Chartered Accountants and Business Advisers, on 5 August 2024 the company acquired the assets of Walker Moyle.

 

All of these post balance sheet events are non adjusting.

31
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Services provided
2024
2023
£
£
Other related parties
1,369,926
719,527

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Other related parties
295,007
217,440
Other information

The company has taken advantage of the exemption available under section 33.1A of FRS102 from disclosing related party transactions and balances with other companies that are wholly owned as part of the group.

BK PLUS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 36 -
32
Ultimate controlling party

Following its acquisition of 100% shareholding in the company, the parent company of BK Plus Limited is Project Crown Bidco Limited and its registered office is Azzurri House, Walsall Road, Aldridge, Walsall, England, WS9 0RB.

The ultimate parent company is Project Crown Topco limited, registered office Azzurri House, Walsall Road, Aldridge, Walsall, England, WS9 0RB.

The following are the parents of the largest and smallest groups in which this company's results are consolidated:

Largest group
Project Crown Topco Limited
Smallest group
Project Crown Topco Limited

Consolidated accounts are available from the groups registered office.

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