Registered number: 04306987
BARONTRADE LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARONTRADE LIMITED
REGISTERED NUMBER: 04306987
BALANCE SHEET
AS AT 31 DECEMBER 2023
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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BARONTRADE LIMITED
REGISTERED NUMBER: 04306987
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 3 to 10 form part of these financial statements.
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BARONTRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Barontrade Limited (the "Company") is a private company limited by share capital, incorporated under the UK Companies Act 1985 and domiciled in England. The address of the Company's registered office is Regina House, 124 Finchley Road, London, NW3 5JS.
2.Accounting policies
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Summary of significant accounting policies
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The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all reporting periods presented, unless otherwise stated.
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Basis of preparation of financial statements
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The financial statements of the Company have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland, and the UK Companies Act 2006.
The preparation of financial statements in conformity with Financial Reporting Standard 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Company's accounting policies.
Details of those estimates and/or judgments made in applying the Company's accounting policies towards the preparation of these financial statements that may be considered as yielding a significant risk of a material adjustment being made to the carrying amounts of assets and/or liabilities reported in the balance sheet during the next financial reporting period are disclosed in note 3 to the financial statements.
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Functional and presentational currency
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Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (the "functional currency").
The functional currency of the Company and the currency in which the financial statements are presented (the "presentational currency") is 'Pounds Sterling' (£) rounded to the nearest single unit of currency.
As at the date these financial statements were approved by the director, the following significant factors were considered by the director when determining the going concern status of the Company.
Financial performance and position
At the balance sheet date, the Company held net liabilities of £3,812,774 and is dependent on the continued financial support of fellow group undertaking, City & Docklands Management Limited, until such time as the Company identifies a suitable opportunity in the market within which it trades to take advantage of and through which revenues generated would yield overall profitability.
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BARONTRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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Going concern (continued)
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The board of directors of City & Docklands Management Limited, a member of which is also the sole director of the Company, have confirmed in said capacity to the Company and on behalf of City & Docklands Management Limited that the current and ongoing intention of City & Docklands Management Limited is for the Company to continue to be provided with appropriate financial support where considered necessary such that the Company would be able to meet any third party debts as they should fall due and for no demand for repayment of any amounts owed by the Company to its fellow group undertakings to be made until such time as the Company can repay them.
In preparing these financial statements, taking into account the aforementioned as well as the current and forecasted financial position and performance of the Company and its fellow group undertakings up to the date these financial statements were approved, the director is of the opinion that there is a reasonable expectation that the Company shall have adequate financial resources available at its disposal to continue in operational existence and, as a result of which, the Company is expected to remain a going concern.
The director therefore considers it both appropriate to adopt the going concern basis in preparing the Company's financial statements and to not recognise any adjustments in the financial statements that would arise if the going concern basis were to become no longer appropriate.
The Company makes direct contributions towards defined contribution pension plans on behalf of its sole employee; the assets of which are held separately from the Company in independently administered funds.
A defined contribution plan is a pension plan under which fixed contributions are payable into a separate entity. Once the contributions have been paid there are no further payment obligations. Contributions payable by the Company are recognised as an expense in profit or loss during the reporting period in which they fall due. Amounts not paid are shown as part of other creditors in the balance sheet.
The tax expense for the financial reporting period comprises of current taxation and is recognised in profit or loss.
Current taxation is calculated using tax rates and on the basis of tax laws enacted or substantively enacted at the balance sheet date in the United Kingdom where the Company solely operates and generates taxable income.
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BARONTRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Fixed asset investments comprise of holdings in unlisted company shares. Such holdings are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at cost less provision for impairment at the balance sheet date.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities; with said financial assets and liabilities classified in accordance with the substance of the underlying contractual obligations rather than its legal form.
Financial assets and liabilities are recognised in the balance sheet upon becoming party to the contractual provisions of the instrument. Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or the financial asset is transferred along with substantially all the risks and rewards of ownership of the asset to another party.
Financial liabilities are derecognised only when the Company’s obligations are discharged, cancelled or expired.
The measurement of specific financial assets, financial liabilities and equity is as outlined below:
Debtors
Debtors are initially measured at transaction price (i.e fair value) and subsequently held, at transaction price less provision for impairment of assets.
Cash and cash equivalents
Cash balances are reported by the Company as being financial instruments classified as short term receivables and are represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours and subject to an insignificant risk of changes in value. Cash balances are held at floating interest rates linked to UK bank rates.
Creditors
Creditors are initially measured, and subsequently held, at transaction price (i.e fair value).
Equity
Ordinary share capital, shown in equity, is initially measured and subsequently held at its nominal value. Where the transaction price for issued shares exceeds their nominal value, the difference is shown under equity in a share premium account with any directly attributable transaction costs associated with the issuing of said shares deducted from said share premium account.
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BARONTRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Judgments in applying accounting policies and key sources of estimation uncertainty
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In the application of the Company's accounting policies, the director is required to apply judgment and make estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other available sources based on historical experience and other factors that are considered to be relevant. Consequently, actual results may differ from that originally estimated.
Judgments in applying the principal accounting policies, outlined in note 2 of these financial statements, towards the preparation of these financial statements that may be considered as having a significant risk of causing a material adjustment to the carrying amount of assets and/or liabilities carried forward as at the balance sheet date where by which the actual future outcome observed may differ from that originally determined and reported were as follows:
Assessment of indicators of impairment
In his assessment, the director considers both externally available and internal sources of information such as historic and expected market activity and cash flows.
Estimates and assumptions that are considered as having a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial reporting period are addressed below:
Determination of the residual value of fixed asset investments held
∙In determining the residual value, the director considers the expected proceeds currently receivable on disposal taking into account expected future earnings and, where possible, externally available market prices. Where relevant, this will require estimation of the future cash flows from the underlying asset and application of appropriate discount rates in order to reflect the time value when calculating the net present value of those cash flows.
Recoverable value of debtors
∙When determining the recoverable value of debtors, the director considers a variety of factors including, in the case of amounts owed by group undertakings, the forecasted financial performance and expected cash flows, ageing profile and historical experience.
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The average monthly number of employees, including directors, during the year was 1 (2022 - 1).
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BARONTRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Falling due within one year
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Prepayments and accrued income
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Other debtors falling due within one year are non-interest bearing and, in the opinion of the director, of a fair value not materially different to their carrying value.
At the balance sheet date, the provision for impairment against other debtors falling due within one year was £nil (2022; £nil).
Deferred tax assets of approximately £173,000 in respect of trading losses incurred in the United Kingdom have not been recognised by the Company as part of these financial statements on the grounds that there is insufficient certainty as to whether the Company will generate adequate trading profits in the United Kingdom against which said deferred tax assets may be offset.
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Cash and cash equivalents
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BARONTRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Amounts owed to group undertakings are unsecured, interest free and repayable on demand with no fixed date of repayment.
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The Company held no financial instruments that would require specific disclosure under sections 1.12, 11 or 12 of Financial Reporting Standard 102 and paragraph 36 of Schedule 1 to the Companies Act 2006.
The Company is party to a cross guarantee in which a fixed charge with negative pledge over all present and future assets of the Company has been granted in respect of any and all amounts owed towards loan finance arrangements entered into by a fellow group undertaking of the Company.
No contributions payable were outstanding at the balance sheet date (2022: £nil).
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BARONTRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Related party transactions
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Wholly owned group undertakings
The Company has taken advantage of exemptions provided by Section 33 of Financial Reporting Standard 102 from the requirement to disclose transactions undertaken or balances carried forward as at the balance sheet date between the Company and its fellow wholly-owned group undertakings.
Other related parties
During the reporting period the sole director of the Company continued to maintain an unsecured and interest-free loan account with the Company. Amounts due towards the loan account are repayable on demand with no fixed date of repayment and at the balance sheet date, the balance due by the Company to the director towards the loan account was £372,126 (2022: £928,235).
At the balance sheet date the following balances, as disclosed in the table below, were due (to)/from fellow non-wholly owned group undertakings of the Company. Amounts due are unsecured, repayable on demand and interest free
During the reporting period, the Company made charitable donations totalling £60,500 (2022: £66,000) to Norwood Ravenswood, a UK registered charity of which the director of the Company is a trustee.
At the balance sheet date, the Company was owed £10,297 (2022: £10,297) by Aldenham Estates Ltd, a Company under common control. Amounts owed are unsecured, interest free and repayable on demand with no fixed date of repayment. No provision for recoverability has been made against amounts owed as at the balance sheet date.
There were no other related party transactions and/or period end balances to report in accordance with the UK Companies Act 2006 and Section 1A of Financial Reporting Standard 102 as part of these financial statements.
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The immediate parent undertaking is City & Docklands London Limited, a company incorporated under the UK Companies Act 1985, which holds a 100% interest in the issued share capital of the Company.
The parent undertaking of the smallest group to consolidate these financial statements is Landeck Services Limited, a company incorporated under the BVI Business Companies Act and whose registered office is located at Craigmuir Chambers, Road Town, Tortola, British Virgin Islands.
Copies of consolidated group financial statements for Landeck Services Limited are not publicly available.
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BARONTRADE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The auditors' report on the financial statements for the year ended 31 December 2023 was unqualified.
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In their report, the auditors emphasised the following matter without qualifying their report:
∙The existence of a material uncertainty which may cast significant doubt about the Company’s ability to continue as a going concern and note 2.4 of the financial statements which explained the director's basis in light of this uncertainty for continuing to adopt the going concern basis in preparing the Company's financial statements.
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The audit report was signed on 3 January 2025 by Richard Paul (senior statutory auditor) on behalf of Nyman Libson Paul LLP.
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