Company registration number 04090477 (England and Wales)
BLUE DIAMOND PRODUCTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
BLUE DIAMOND PRODUCTS LIMITED
COMPANY INFORMATION
Directors
B Turner
Michael Maundrill
Secretary
B Turner
Company number
04090477
Registered office
Unit 1 Brick Park
Bretfield Court
Bretton Street Industrial Estate
Dewsbury
WF12 9BY
Auditor
Parsons Accountants Ltd
Unit 2 Silkwood Park
Fryers Way
Ossett
WF5 9TJ
BLUE DIAMOND PRODUCTS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
BLUE DIAMOND PRODUCTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 November 2023.

Business review

 

The Company's principal activities are that of camping and outdoor equipment.

Principal risks and uncertainties

 

The Company believes the main risks and uncertainties to be outlined in the Economic impact of global events statement below.

Economic impact of global events

 

UK businesses are currently facing many uncertainties such as the consequences of Brexit, COVID-19, environmental sustainability and geopolitical events such as the Russian invasion of Ukraine. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working.

 

The Directors have carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and have concluded that these are non-adjusting events with the greatest impact on the business expected to be from the economic ripple effect on the global economy. The Directors have taken account of these potential impacts in their going concern assessment.

 

Blue Diamond Products Limited continues to work with its partners to minimise any impacts of these events and maximise the realisation of any opportunities they may provide to the business.

Financial key performance indicators

 

 

 

 

30 November 2023

30 November 2022

 

£

£

 

 

 

Turnover

10,101,273

12,920,724

Gross profit

838,916

3,056,074

Gross profit %

8.3

23.7

Other key performance indicators

 

The Company have no other non-financial key performance indicators and believes the only key performance indicators are the financial key indicators stated above.

On behalf of the board

B Turner
Director
24 December 2024
BLUE DIAMOND PRODUCTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 30 November 2023.

Results and dividends

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

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:

B Turner
Michael Maundrill
Auditor

The auditor, Parsons Accountants Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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.

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.

BLUE DIAMOND PRODUCTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
On behalf of the board
B Turner
Director
24 December 2024
BLUE DIAMOND PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BLUE DIAMOND PRODUCTS LIMITED
- 4 -

Qualified opinion

We have audited the financial statements of Blue Diamond Products Limited (the 'company') for the year ended 30 November 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the possible effects on the corresponding figures of the matter described in the basis for qualified opinion section of our report, the financial statements:

Basis for qualified opinion

We were not appointed as auditor of the company until after 30 November 2021 and thus did not observe the counting of physical inventories at the end of that year. We were unable to satisfy ourselves by alternative means as to the quantities and condition of inventory of £1,561,197 held at 30 November 2021 by using other audit procedures. Consequently, we were unable to determine whether there was any consequential effect on the cost of sales for the year ended 30 November 2022. Our audit opinion on the financial statements for the year ended 30 November 2022 was modified accordingly. Our opinion on the current period’s financial statements is also modified because of the possible effect of this matter on the comparability of the current period’s figures and the corresponding figures.

 

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 qualified 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.

BLUE DIAMOND PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BLUE DIAMOND PRODUCTS LIMITED
- 5 -

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.

 

As described in the basis for qualified opinion section of our audit report, we were unable to satisfy ourselves concerning the quantities and condition of inventory at 30 November 2021. We have concluded that where the other information refers to that inventory balance, related balances such as cost of sales or related metrics such as gross profit percentage, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In respect solely of the limitation on our work relating to stock, described above:

 

Except for the matter described in the basis for qualified opinion section of our report, 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.

 

Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

 

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:

BLUE DIAMOND PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BLUE DIAMOND PRODUCTS LIMITED
- 6 -
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:

The extent to which the audit was capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including

fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining

an understanding of how fraud might occur, by:

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

BLUE DIAMOND PRODUCTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BLUE DIAMOND PRODUCTS LIMITED
- 7 -

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures

which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to

enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Ian Parsons
Senior Statutory Auditor
For and on behalf of Parsons Accountants Ltd
24 December 2024
Chartered Accountants
Statutory Auditor
Unit 2 Silkwood Park
Fryers Way
Ossett
WF5 9TJ
BLUE DIAMOND PRODUCTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
10,101,273
12,920,724
Cost of sales
(9,262,357)
(9,864,650)
Gross profit
838,916
3,056,074
Administrative expenses
(1,680,464)
(1,738,201)
Operating (loss)/profit
4
(841,548)
1,317,873
Interest payable and similar expenses
7
(507,602)
(233,292)
(Loss)/profit before taxation
(1,349,150)
1,084,581
Tax on (loss)/profit
8
9,842
(206,131)
(Loss)/profit for the financial year
(1,339,308)
878,450

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

BLUE DIAMOND PRODUCTS LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,675,358
1,409,475
Current assets
Stocks
12
5,646,931
6,539,334
Debtors
13
1,918,936
3,190,629
Cash at bank and in hand
287,334
239,898
7,853,201
9,969,861
Creditors: amounts falling due within one year
14
(6,452,933)
(6,938,326)
Net current assets
1,400,268
3,031,535
Total assets less current liabilities
3,075,626
4,441,010
Creditors: amounts falling due after more than one year
15
(615,299)
(628,483)
Provisions for liabilities
Deferred tax liability
18
-
0
12,892
-
(12,892)
Net assets
2,460,327
3,799,635
Capital and reserves
Called up share capital
20
1,000
1,000
Profit and loss reserves
2,459,327
3,798,635
Total equity
2,460,327
3,799,635

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 24 December 2024 and are signed on its behalf by:
B  Turner
Director
Company registration number 04090477 (England and Wales)
BLUE DIAMOND PRODUCTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2021
1,000
3,170,185
3,171,185
Year ended 30 November 2022:
Profit and total comprehensive income
-
878,450
878,450
Dividends
9
-
(250,000)
(250,000)
Balance at 30 November 2022
1,000
3,798,635
3,799,635
Year ended 30 November 2023:
Loss and total comprehensive income
-
(1,339,308)
(1,339,308)
Balance at 30 November 2023
1,000
2,459,327
2,460,327
BLUE DIAMOND PRODUCTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
24
1,098,877
(2,464,174)
Interest paid
(507,602)
(233,292)
Income taxes paid
(182,424)
(180,375)
Net cash inflow/(outflow) from operating activities
408,851
(2,877,841)
Investing activities
Purchase of tangible fixed assets
(293,532)
(1,259,380)
Proceeds from disposal of tangible fixed assets
20,000
22,500
Net cash used in investing activities
(273,532)
(1,236,880)
Financing activities
Proceeds from borrowings
-
0
5,229,263
Repayment of borrowings
(759,118)
(1,725,506)
Proceeds from new bank loans
1,500,000
-
0
Repayment of bank loans
(782,500)
(220,000)
Payment of finance leases obligations
(46,265)
(20,295)
Invoice discounting
-
0
478,702
Dividends paid
-
0
168,678
Net cash (used in)/generated from financing activities
(87,883)
3,910,842
Net increase/(decrease) in cash and cash equivalents
47,436
(203,879)
Cash and cash equivalents at beginning of year
239,898
443,777
Cash and cash equivalents at end of year
287,334
239,898
BLUE DIAMOND PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
1
Accounting policies
Company information

Blue Diamond Products Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1 Brick Park, Bretfield Court, Bretton Street Industrial Estate, Dewsbury, WF12 9BY.

 

The principal activity of the Company continued to be that of camping and outdoor equipment.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
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.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

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

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

1.4
Research and development expenditure

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.

 

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

BLUE DIAMOND PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.5
Intangible fixed assets - goodwill

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

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Tangible fixed assets

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

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

Freehold land and buildings
2% straight line, land is not depreciated
Plant and machinery
20% straight line
Motor vehicles
25% straight line

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.

 

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.

1.7
Borrowing costs

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

1.8
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.

BLUE DIAMOND PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 14 -

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.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase using an average cost method.

At each reporting date, an assessment is made 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.

1.10
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 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 Company's cash management.

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.

BLUE DIAMOND PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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.

BLUE DIAMOND PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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.

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
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.

1.15
Retirement benefits

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

BLUE DIAMOND PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.16
Leases

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

 

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

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.

 

The judgements and estimates with the most significant effect on the amounts recognised in the statutory financial statements are discussed below.

 

(i) Assessing indicators of impairment

 

In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit rating, previous experience of recoverability and where applicable the ability of the asset to be operated as planned.

 

(ii) Determining residual values and useful economic lives of tangible fixed assets

 

The company depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of tangible assets is based on historic performance as well as expectation about future use and thus requires estimates and assumptions to be applied. The actual lives of these assets can vary depending on a wide variety of factors including technological innovation, product life cycles and maintenance programmes to plant and machinery.

 

Judgement is also applied when determining the residual values for fixed assets. When determining the residual value the directors have assessed the amount that the company would currently obtain for the disposal of the asset if it were already of the condition expected at the end of its useful life. Where possible this is done with reference to external market prices.

 

(iii) Determining the future demand of stock items to calculate a stock provision

 

In determining whether a stock provision is required, the directors have considered both internal and external sources of information including quantity of stock held, current orders of the stock item, historic saleability of the stock item and wider market conditions. Where there is evidence that the ability of a stock item to be sold is reduced (for example due to physical damage or obsolescence) an appropriate revision to the realisable value is made. Where this is less than the cost of the stock item, an expense is recognised in the statement of comprehensive income.

 

BLUE DIAMOND PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 18 -
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Sales of goods
10,101,273
12,920,724
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
9,412,402
11,968,233
Rest of Europe
670,370
438,555
Rest of the World
18,501
513,936
10,101,273
12,920,724
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange losses
46,329
132,881
Research and development costs
-
33,341
Fees payable to the company's auditor for the audit of the company's financial statements
17,250
17,250
Depreciation of owned tangible fixed assets
75,901
85,330
Profit on disposal of tangible fixed assets
(3,048)
(21,979)
5
Employees

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

2023
2022
Number
Number
21
19

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
706,029
715,175
Social security costs
77,003
68,041
Pension costs
15,066
14,698
798,098
797,914
BLUE DIAMOND PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 19 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
150,000
113,113
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
217,510
75,172
Other finance costs:
Interest on finance leases and hire purchase contracts
6,472
3,828
Other interest
283,620
154,292
507,602
233,292
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
214,566
Adjustments in respect of prior periods
3,050
(286)
Total current tax
3,050
214,280
Deferred tax
Origination and reversal of timing differences
(12,892)
(8,149)
Total tax (credit)/charge
(9,842)
206,131
BLUE DIAMOND PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
8
Taxation
(Continued)
- 20 -

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

2023
2022
£
£
(Loss)/profit before taxation
(1,349,150)
1,084,581
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(256,339)
206,070
Tax effect of expenses that are not deductible in determining taxable profit
245
217
Adjustments in respect of prior years
3,050
(286)
Deferred tax adjustments in respect of prior years
(12,892)
3,292
Super deduction
(1,018)
(417)
Remeasurement of deferred tax for changes in tax rates
-
0
(2,745)
Deferred tax asset not recognised
257,112
-
0
Taxation (credit)/charge for the year
(9,842)
206,131
9
Dividends
2023
2022
£
£
Final paid
-
0
250,000
10
Intangible fixed assets
Goodwill
£
Cost
At 1 December 2022 and 30 November 2023
228,730
Amortisation and impairment
At 1 December 2022 and 30 November 2023
228,730
Carrying amount
At 30 November 2023
-
0
At 30 November 2022
-
0
BLUE DIAMOND PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
11
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 December 2022
1,230,465
416,819
173,039
1,820,323
Additions
290,407
68,329
-
0
358,736
Disposals
-
0
-
0
(31,302)
(31,302)
At 30 November 2023
1,520,872
485,148
141,737
2,147,757
Depreciation and impairment
At 1 December 2022
-
0
354,795
56,053
410,848
Depreciation charged in the year
-
0
38,509
37,392
75,901
Eliminated in respect of disposals
-
0
-
0
(14,350)
(14,350)
At 30 November 2023
-
0
393,304
79,095
472,399
Carrying amount
At 30 November 2023
1,520,872
91,844
62,642
1,675,358
At 30 November 2022
1,230,465
62,024
116,986
1,409,475

Included within freehold land and buildings is land of £247,575 (2022: £247,575).

 

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Plant and machinery
59,157
18,820
Motor vehicles
30,155
65,895
89,312
84,715
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
5,646,931
6,539,334

Stock is reported net of an impairment provision of £1,396,840 (2022: £nil) representing an estimation by management of the recoverable value of stock in line with the accounting policy of valuing stock at the lower of cost and net realisable value.

BLUE DIAMOND PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 22 -
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,760,756
2,949,984
Amounts owed by related parties / connected companies
31,844
14,813
Other debtors
40,904
125,622
Prepayments and accrued income
85,432
100,210
1,918,936
3,190,629
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
16
969,991
219,991
Obligations under finance leases
17
37,494
37,871
Other borrowings
16
3,167,638
3,926,756
Invoice financing creditor
556,941
478,702
Trade creditors
271,634
507,268
Corporation tax
214,280
393,654
Other taxation and social security
347,415
686,110
Other creditors
612,840
395,690
Accruals and deferred income
274,700
292,284
6,452,933
6,938,326

The company is subject to a fixed and floating charge with HSBC Bank plc over all assets dated 16 May 2013.

 

The company entered a general pledge with HSBC Bank plc on 25 March 2014.

 

The invoice financing creditor is secured by way of a fixed and floating charge and negative pledge dated 18 December 2019.

15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
572,509
605,009
Obligations under finance leases
17
42,790
23,474
615,299
628,483
BLUE DIAMOND PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 23 -
16
Loans and overdrafts
2023
2022
£
£
Bank loans
1,542,500
825,000
Other loans
3,167,638
3,926,756
4,710,138
4,751,756
Payable within one year
4,137,629
4,146,747
Payable after one year
572,509
605,009

The bank loans relate to a coronavirus business interruption loan that is repayable in installments by August 2026 with interest charged at 3.99% over the BOEBR and a recovery loan scheme that is repayable in installments by February 2025 with interest charged at 4.1% over the BOEBR.

 

The RLS loan provided by HSBC UK is also secured on a joint and several personal guarantee from the directors in respect of the obligations of the borrower for an amount limited to £290,000.

 

The other loan relates to a stock loan that is secured over the company's assets.

17
Hire purchase and finance lease obligations
2023
2022
Future minimum lease payments due under hire purchases fall due as follows:
£
£
Within one year
37,494
37,871
In two to five years
42,790
23,474
80,284
61,345

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 40 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Obligations under finance leases and hire purchase contracts are secured over the assets to which they relate.

18
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
-
12,892
BLUE DIAMOND PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
18
Deferred taxation
(Continued)
- 24 -
2023
Movements in the year:
£
Liability at 1 December 2022
12,892
Credit to profit or loss
(12,892)
Liability at 30 November 2023
-

 

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
15,066
14,698

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.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
1,000
1,000
1,000
1,000
21
Related party transactions

Amounts owed by companies under common control at the year end totalled £31,844 (2022: £14,813). Amounts owed to companies under common control at the year end totalled £74,420 (2022: £nil).

Fixed asset additions of £39,650 were purchased from a connected company by virtue of common directorship during the period (2022: £nil).

At the year end amounts due to the directors' from the Company totalled £502,477 (2022: £389,911) which is included in other creditors. Amounts due from the directors' to the Company totalled £nil (2022: £65,369) which is included within other debtors.

Dividends totalling £nil were paid to the directors during the period (2022: £250,000).

The directors’ loan accounts where these balances have arisen are active accounts with both payments and receipts as such balances are always repayable on demand. No interest is charged on outstanding balances. During the year there were times when the directors loan accounts were overdrawn. The maximum level of indebtedness of the directors to the Company in the year was £67,561 (2022: £269,228).

 

During the year the Company paid rent to a connected pension fund of £6,667 (2022: £5,417).

22
Ultimate controlling party

The ultimate controlling party is Mr B Turner by virtue of his majority shareholding.

BLUE DIAMOND PRODUCTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 25 -
23
Analysis of changes in net debt
1 December 2022
Cash flows
New finance leases
30 November 2023
£
£
£
£
Cash at bank and in hand
239,898
47,436
-
287,334
Borrowings excluding overdrafts
(4,751,756)
41,618
-
(4,710,138)
Obligations under finance leases
(61,345)
46,265
(65,204)
(80,284)
(4,573,203)
135,319
(65,204)
(4,503,088)
24
Cash generated from/(absorbed by) operations
2023
2022
£
£
(Loss)/profit for the year after tax
(1,339,308)
878,450
Adjustments for:
Taxation (credited)/charged
(9,842)
206,131
Finance costs
507,602
233,292
Invoice discounting
-
0
(478,702)
Gain on disposal of tangible fixed assets
(3,048)
(21,979)
Depreciation and impairment of tangible fixed assets
75,901
85,330
Movements in working capital:
Decrease/(increase) in stocks
892,403
(4,978,137)
Decrease in debtors
1,271,693
498,149
(Decrease)/increase in creditors
(296,524)
1,113,292
Cash generated from/(absorbed by) operations
1,098,877
(2,464,174)
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