Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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BARBRI GLOBAL LIMITED
COMPANY INFORMATION
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BARBRI GLOBAL LIMITED
CONTENTS
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BARBRI GLOBAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
Principal Activities
Barbri Global Limited (BGL) is a leading provider of study preparation resources for the Solicitors Qualifying Examination (SQE) in the UK. Renowned for its comprehensive, innovative, and student-centric approach, BGL delivers top-tier study materials, interactive learning tools, and expert guidance tailored to aspiring solicitors. By leveraging cutting-edge technology and insights from leading legal professionals, BGL ensures that candidates are thoroughly prepared to excel in both SQE1 and SQE2 assessments. With a commitment to quality, flexibility, and success, BGL has established itself as a trusted partner for legal education and career advancement in the UK. Market Position The SQE, introduced by the Solicitors Regulation Authority (SRA) in 2021, replaced the traditional Legal Practice Course (LPC) as the mandatory route to qualification as a solicitor in England and Wales. This reform created a demand for new study prep solutions. The market includes a mix of traditional education providers, online platforms, and specialist training companies like BGL. BGL currently serve around 24% of the combined SQE1 and SQE2 market.
Barbri Global Limited operates an integrated business model:
• Online Learning: Increasing preference for flexible, online study options. • Personalised Learning: Demand for tailored study plans and adaptive learning technology. • Integrated Resources: Students seek a one-stop-shop for study materials, mock exams, and skill-building workshops. • Affordability: Price sensitivity among students, especially those from non-traditional or international pathways. Strategic Objectives • Short-term goals: Internally prepare BGL for sustained future growth through course review and enhancement, attracting new graduates onto our courses and increasing our B2B client footprint. • Medium-term goals: Increase annual revenue by ~15% over each of the next three years • Long-term goals: Be the leading UK legal education provider..
Financial Highlights:
• Revenue: £16,334,413 • Growth: 7% • Operating profit before management charges, depreciation and amortisation: £7,667,305
•Economic Risk: Potential downturns in the economy could reduce discretionary spending on education, impacting demand for BGL's products and services.
• Regulatory Risk: Changes to the SQE framework or qualification requirements by the SRA could necessitate adjustments to study materials and methods. • Supply Chain Risk: Delays or disruptions in the delivery of study materials, personnel services or technology infrastructure could impact service quality and customer satisfaction.
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BARBRI GLOBAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The company is optimistic about future growth, driven by increasing demand and mandatory route change to qualify as a solicitor. With the introduction of new course and skill offerings, driven by our strong market presence (24% share), we expect to remain a disruptive force in the legal education industry for years to come. BGL’s net loss is entirely attributed to the transfer pricing agreement with its parent company; however, as BGL’s growth stabilizes, this agreement will adjust to reflect a net profit. With optimism surrounding future net profit, driven by an eventual adjustment in the transfer pricing calculation, we anticipate fully utilizing the tax asset generated from the 2024 tax year.
This report was approved by the board and signed on its behalf.
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BARBRI GLOBAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
main courses namely, Altior, SQE courses and extended U.S. bar courses (EBAR). Altior has been accredited to deliver the SRA’s Professional Skills Course (PSC) and Higher Rights of Audience (HRA) qualifications for 20+ years. PSC is a professional level compulsory course that trainee solicitors are mandated to take as part of their two-year training contract with a law firm. The course consists of 12 days of mandatory skills training including one written assessment which students must complete to ‘pass’ the PSC course. The company has provided SQE Prep Courses to aspiring English and Welsh solicitors since 2021. Barbri Global Limited entered the UK market as a provider for QLTS in preparation for the new SQE route to qualification starting in 2021. The strategic purchase of BARBRI Altior (a legal skills training provider) at the end of 2019 also added expertise and faculty for the skills training elements tested in SQE2. The exams are broken down as follows: 1. Multiple Choice Test (SQE1) 2. Objective Structured Clinical Examination (SQE2) The company also provides extended U.S Bar courses to aspiring lawyers internationally. This is a product built on our existing and successful core U.S Bar product sold in the U.S. EBAR Prep offers the support and flexibility foreign qualified or part time students need to pass any U.S. state bar that administers the Uniform Bar Exam, including New York, or the California Bar Exam. Revenues in the year amounted to £1,070,837 for Altior, £11,394,181 for SQE and £3,869,395 for EBAR. The company has a transfer pricing arrangement in place with the parent company where each product line has a different treatment of target operating profit. Due to this the total amount of operating profit owed to the parent company in FY24 amounted to £8,098,266. The profit for the company before the calculation of the transfer pricing arrangement would have been £7,604,202.
The loss for the year, after taxation, amounted to £416,983 (2023 - profit £644,742).
The company did not pay any interim dividends during the financial year and the directors have not
recommended declared or paid any final dividends since the financial year end.
The directors who served during the year were:
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BARBRI GLOBAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
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 to 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.
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BARBRI GLOBAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors have assessed the ability of Barbri Global Ltd. ("the Company") to continue as a going concern and are confident in its capacity to continue to do so. This assessment has been conducted based on the Company’s current financial position, future projections, market position, growth opportunities, the resilience of its business model and other factors.
The Directors have considered the following factors: Financial Health The Company maintains a robust balance sheet with healthy liquidity ratios. As of the end of the fiscal year, Barbri Global Ltd. has no debt and cash on its balance sheet, as well as access to cash and undrawn credit facilities through its parent, Barbri, Inc., to ensure sufficient liquidity to meet its obligations. Market Position Barbri Global Ltd. holds a strong market position in a rapidly growing market with a strong brand and a reputation for delivering high-quality products and services. This market strength underpins the Company’s ability to generate consistent and growing revenue. Future Prospects Strategic plans for expansion and innovation are in place, supported by detailed financial projections that demonstrate the Company’s ability to significantly grow in the foreseeable future through market expansion, new product launches and additional geographies. Operational Efficiency The Company has a profitable business model and continues to optimise operational processes and cost-control measures that enhance profitability and sustain long-term operations without external financial support. Based on the above assessments and other factors, the Directors are confident that Barbri Global Ltd. has adequate resources to continue its operations for the foreseeable future. Accordingly, the financial statements have been prepared on a going concern basis. The Directors will continue to monitor the financial and operational conditions of the Company and take necessary actions to ensure ongoing viability and growth.
The auditors, Price Bailey LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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BARBRI GLOBAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board and signed on its behalf.
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BARBRI GLOBAL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARBRI GLOBAL LIMITED
We have audited the financial statements of Barbri Global Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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BARBRI GLOBAL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARBRI GLOBAL LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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.
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BARBRI GLOBAL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARBRI GLOBAL LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these 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:
-Enquiry of management around actual and potential litigation and claims, and any known instances of
non-compliance; - Performing audit work covering the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; - Reviewing minutes of meetings of those charged with governance; and - Reviewing our work throughout the audit file for evidence of non-compliance.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Causeway House
1 Dane Street
Hertfordshire
CM23 3BT
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BARBRI GLOBAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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BARBRI GLOBAL LIMITED
REGISTERED NUMBER: 13733203
BALANCE SHEET
AS AT 31 DECEMBER 2024
The company's financial statements have been prepared in accordance with the 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 on
The notes on pages 14 to 27 form part of these financial statements.
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BARBRI GLOBAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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BARBRI GLOBAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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BARBRI GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Barbri Global Limited is a private company limited by shares & incorporates in England and Wales. Its registered head office is located at Thanet House, 231-232 Strand, London, United Kingdom, WC2R 1DA.
The principal activity of Barbri Global Limited is to provide legal and professional education services.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006.
The company's financial statements are presented in Sterling and all values are rounded to the nearest pound (£) except when otherwise stated.
The following principal accounting policies have been applied:
The company is dependent upon financial support being made available to it by fellow group undertakings.
The directors have reviewed detailed forecasts and cashflows and based upon this information in the opinion of the directors the above facilities are sufficient to meet the company’s ongoing financial needs. In view of the above arrangements, the directors are satisfied, for the foreseeable future being a period of at least twelve months from the date on which these financial statements are approved, that the company has sufficient resources to enable it to continue in operation as a going concern and meet its liabilities as they fall due for payment. They therefore consider it appropriate to prepare these financial statements on a going concern basis.
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BARBRI GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
The company recognises revenue from the courses it offers over the period of the course on a straight-line basis or at the point the course is offered if it is a one-off course.
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BARBRI GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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BARBRI GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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BARBRI GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The
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BARBRI GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are
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BARBRI GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
discharged or cancelled.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
Analysis of turnover by country of destination:
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BARBRI GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BARBRI GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
There were no factors that may affect future tax charges.
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BARBRI GLOBAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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