Company registration number NI621064 (Northern Ireland)
BACAR GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
BACAR GROUP LIMITED
COMPANY INFORMATION
Directors
Mr R J McCandless
(Appointed 29 March 2024)
Mr W J McCandless
Mr C H McCandless
Mr C H McCandless
(Appointed 29 March 2024)
Company number
NI621064
Registered office
21-23 Shore Road
Holywood
Down
BT18 9HX
Auditor
Harbinson Mulholland
6th Floor East Tower
Lanyon Plaza
8 Lanyon Place
Belfast
Co. Antrim
BT1 3LP
Bankers
Danske Bank
Donegall Square West
Belfast
Co. Antrim
Northern Ireland
BT1 6JS
Solicitors
Arthur Cox
Victoria House
15-17 Gloucester Street
Belfast
BT1 4LS
BACAR GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Income statement
9
Group statement of comprehensive income
10
Group statement of financial position
11
Company statement of financial position
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 35
BACAR GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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

Principal activities

Bacar Group Limited is the ultimate parent company for the Bacar group encompassing three trading companies. The principal activities of the group companies are the manufacture and install of EPS bead for cavity wall insulation together with the manufacture of Energystore TLA, a high performance insulated floor and roof solution. The group also manages insulation schemes on behalf of the Northern Ireland Sustainable Energy Programme. In addition, the group designs, installs, services and maintains domestic heating systems.

Review of the business

The group grew revenue across each market. The company continued to benefit from it's long term strategies and commitment to innovation.

Future Developments

The directors consider the principal risks and uncertainties faced by the company are as follows:

 

Competition Risk : The directors manage competition risk through close attention to customer service levels and service innovation.

 

Financial Risk : the group has budgetary and financial reporting procedures supported by appropriate key performance indicators to manage credit, liquidity and other financial risk.

 

Economic Risk : Economic factors, particularly the continuing uncertainty of the UK exiting the European Union and the Northern Ireland Protocol, may impact upon the group and in particular the supply and cost of goods imported from both the European Union and Great Britain.

Principal risks and uncertainties

Key performance indicators used by management during the period were;

 

2024         2023

£'000         £'000

Gross profit        6,755        3,879                

Operating profit         3,287        1,386

Profit before tax         3,109         232

Management and personnel

The company places considerable value on the involvement of its employees. The continued commitment and dedication of all its employees is appreciated by the directors.

BACAR GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Financial risk management

The group has various financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations and is exposed to a variety of financial risks which include liquidity risk, interest rate risk, credit risk, price risk and foreign exchange risk.

 

Liquidity Risk: The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

 

Interest Rate Risk: The group is exposed to interest rate risk on its fixed borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group uses a mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

 

Credit Risk: All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

 

Price Risk: The group is exposed to commodity price risk as a result of operations. The group seeks to minimise the risk by actively monitoring price trends and actively seeks out appropriate buying opportunities.

 

Foreign Exchange Risk: The group undertakes some transactions in Euros. No hedging takes place.

On behalf of the board

Mr W J McCandless
Director
17 January 2025
BACAR GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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

Results and dividends

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

Ordinary dividends were paid amounting to £700,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr R J McCandless
(Appointed 29 March 2024)
Mr W J McCandless
Mr C H McCandless
Mr C H McCandless
(Appointed 29 March 2024)
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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and 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 auditor of the company 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 auditor of the company 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.

BACAR GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
On behalf of the board
Mr W J McCandless
Director
17 January 2025
BACAR GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BACAR GROUP LIMITED
- 5 -

Qualified opinion on the financial statements

We have audited the financial statements of Bacar Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

We were appointed as auditors of the group after the year end and therefore were not able to observe the counting of the opening or closing stock or satisfy ourselves regarding stock quantity by alternative means. Any potential misstatement of either of these figures would also have an impact on the group's cost of sales.

 

In addition, were any adjustment to the stock balance to be required, the strategic report would also need to be amended.

 

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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

BACAR GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BACAR GROUP LIMITED
- 6 -

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 report, we were unable to obtain sufficient appropriate audit evidence concerning the opening and closing stock. We have concluded that were the other information refers to the stock balance or related balances, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in light of the knowledge and understanding of the group and parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

 

Arising solely from the limitation of scope of our work relating to stock 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:

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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

BACAR GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BACAR GROUP LIMITED
- 7 -

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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:

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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

The financial statements for the year ended 31 March 2023 were unaudited.

The purpose of our audit work and to whom we owe our responsibilities

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.

BACAR GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BACAR GROUP LIMITED
- 8 -
Darren McDowell
For and on behalf of
17 January 2025
Harbinson Mulholland
Chartered Accountants
Statutory Auditor
6th Floor East Tower
Lanyon Plaza
8 Lanyon Place
Belfast
Co. Antrim
BT1 3LP
BACAR GROUP LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
as restated
Notes
£
£
Turnover
3
21,719,682
19,960,204
Cost of sales
(14,965,180)
(16,081,170)
Gross profit
6,754,502
3,879,034
Administrative expenses
(3,476,218)
(2,668,145)
Other operating income
8,305
174,978
Operating profit
4
3,286,589
1,385,867
Interest receivable and similar income
7
1,799
-
0
Interest payable and similar expenses
8
(178,901)
(199,460)
Amounts written off investments
9
-
(954,796)
Profit before taxation
3,109,487
231,611
Tax on profit
10
(739,704)
135,234
Profit for the financial year
2,369,783
366,845
Profit for the financial year is all attributable to the owners of the parent company.
BACAR GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
as restated
£
£
Profit for the year
2,369,783
366,845
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
2,369,783
366,845
Total comprehensive income for the year is all attributable to the owners of the parent company.
BACAR GROUP LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
12
1,521,334
1,133,155
Other intangible assets
12
32,284
53,806
Total intangible assets
1,553,618
1,186,961
Tangible assets
13
3,837,532
2,881,405
5,391,150
4,068,366
Current assets
Stocks
16
1,665,811
1,746,418
Debtors
17
6,044,239
4,719,776
Cash at bank and in hand
444,940
43,953
8,154,990
6,510,147
Creditors: amounts falling due within one year
18
(4,565,484)
(3,227,285)
Net current assets
3,589,506
3,282,862
Total assets less current liabilities
8,980,656
7,351,228
Creditors: amounts falling due after more than one year
19
(752,694)
(1,267,848)
Provisions for liabilities
Deferred tax liability
22
481,048
91,031
(481,048)
(91,031)
Net assets
7,746,914
5,992,349
Capital and reserves
Called up share capital
24
100
100
Revaluation reserve
84,782
-
0
Profit and loss reserves
7,662,032
5,992,249
Total equity
7,746,914
5,992,349

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 17 January 2025 and are signed on its behalf by:
17 January 2025
Mr W J McCandless
Director
Company registration number NI621064 (Northern Ireland)
BACAR GROUP LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
31 March 2024
- 12 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,005,716
1,039,500
Investments
14
1,400,000
1,400,000
2,405,716
2,439,500
Current assets
Debtors
17
30,196
30,270
Cash at bank and in hand
13,949
21,179
44,145
51,449
Creditors: amounts falling due within one year
18
(609,387)
(575,693)
Net current liabilities
(565,242)
(524,244)
Total assets less current liabilities
1,840,474
1,915,256
Creditors: amounts falling due after more than one year
19
(221,794)
(307,082)
Net assets
1,618,680
1,608,174
Capital and reserves
Called up share capital
24
100
100
Profit and loss reserves
1,618,580
1,608,074
Total equity
1,618,680
1,608,174

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £710,506 (2023 - £123,723 profit).

The financial statements were approved by the board of directors and authorised for issue on 17 January 2025 and are signed on its behalf by:
17 January 2025
Mr W J McCandless
Director
Company registration number NI621064 (Northern Ireland)
BACAR GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
100
-
0
5,625,404
5,625,504
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
366,845
366,845
Balance at 31 March 2023
100
-
0
5,992,249
5,992,349
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
2,369,783
2,369,783
Dividends
11
-
-
(700,000)
(700,000)
Other movements
-
84,782
-
84,782
Balance at 31 March 2024
100
84,782
7,662,032
7,746,914
BACAR GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
100
1,484,351
1,484,451
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
123,723
123,723
Balance at 31 March 2023
100
1,608,074
1,608,174
Year ended 31 March 2024:
Profit and total comprehensive income
-
710,506
710,506
Dividends
11
-
(700,000)
(700,000)
Balance at 31 March 2024
100
1,618,580
1,618,680
BACAR GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
3,583,474
503,520
Interest paid
(178,901)
(198,960)
Income taxes paid
(35,061)
(171,014)
Net cash inflow from operating activities
3,369,512
133,546
Investing activities
Purchase of intangible assets
(590,463)
(64,566)
Purchase of tangible fixed assets
(1,319,356)
(546,394)
Proceeds from disposal of tangible fixed assets
1,793
211,707
Repayment of loans
(15,195)
-
Interest received
1,799
-
0
Net cash used in investing activities
(1,921,422)
(399,253)
Financing activities
Proceeds from borrowings
-
(13,998)
Repayment of bank loans
(1,761,830)
-
Payment of finance leases obligations
(86,102)
(83,370)
Government grant income
54,978
Dividends paid to equity shareholders
(700,000)
-
0
Net cash used in financing activities
(2,547,932)
(42,390)
Net decrease in cash and cash equivalents
(1,099,842)
(308,097)
Cash and cash equivalents at beginning of year
43,953
(156,078)
Cash and cash equivalents at end of year
(1,055,889)
(464,175)
Relating to:
Cash at bank and in hand
444,940
43,953
Bank overdrafts included in creditors payable within one year
(1,500,829)
-
BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
1
Accounting policies
Company information

Bacar Limited (“the company”) is a private limited company domiciled and incorporated in Northern Ireland. The registered office is 21-23 Shore Road, Holywood, Down, BT18 9HX.

 

The group consists of Bacar Limited and all of its subsidiaries.

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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

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

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Bacar Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group statement of financial position at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services 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.

BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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 10 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.

1.8
Intangible fixed assets other than goodwill

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

 

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

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

Patents & licences
33% straight line
1.9
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% and 10% straight line
Plant and equipment
7%, 15%, 20% and 25% straight line

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 recognised in the income statement.

1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.11
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

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.

BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.14
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -
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 group 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 group 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.

BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.15
Equity instruments

Equity instruments issued by the group 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 group.

1.16
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 income statement 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 group’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 income statement, 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 if, and only if, there is 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.

1.17
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.

1.18
Retirement benefits

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

BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 23 -
1.19
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 statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.20
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 24 -
Key sources of estimation uncertainty

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

Recoverability of trade debtors

The group trades with a large and varied number of customers on credit terms. Some debts due will not be paid through the default of a small number of customers. The group uses estimates based on historical experience and current information in determining the level of debts for which an impairment charge is required. The level of impairment required is reviewed on an ongoing basis.

Impairment of stock

The group holds significant stocks at the financial year end date. The directors are of the view that an adequate charge has been made to reflect the possibility of stocks being sold at less than cost. However, this estimate is subject to inherent uncertainty.

Useful life on tangible and intangible fixed assets

The annual depreciation and amortisation charge depends primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of residual values. The directors regularly review these useful lives and change them if necessary to reflect current conditions. In determining these useful lives management consider technological change, patterns of consumption, physical condition and expected economic utilisation of the assets. Changes in the useful lives can have a significant impact on the depreciation charge for the financial year.

3
Turnover and other revenue

The group operates across the UK and through a branch in the Republic of Ireland.

 

The directors of the group are of the opinion that it would be seriously prejudicial to the interests of the company to disclose details of turnover by class or market.

2024
2023
£
£
Other revenue
Interest income
1,799
-
Grants received
8,305
54,978
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
7,039
(4,952)
Research and development costs
56,917
73,794
Government grants
(8,305)
(54,978)
Fees payable to the group's auditor for the audit of the group's financial statements
18,500
-
Depreciation of owned tangible fixed assets
439,047
320,967
Loss on disposal of tangible fixed assets
7,171
3,117
Amortisation of intangible assets
223,806
214,914
Operating lease charges
376,742
382,080
BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales, Admin & Distribution
90
84
-
-
Directors
3
3
-
-
Total
93
87
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,704,531
3,344,703
-
0
-
0
Social security costs
367,374
308,360
-
-
Pension costs
100,234
86,137
-
0
-
0
4,172,139
3,739,200
-
0
-
0
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
159,868
229,249
As total directors' remuneration was less than £200,000 in the current year, the group has not disclosed remuneration to the highest paid director.
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,688
-
0
Other interest income
111
-
Total income
1,799
-
0
BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
172,228
193,638
Interest on finance leases and hire purchase contracts
6,290
5,822
Other interest
383
-
Total finance costs
178,901
199,460
9
Amounts written off investments
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Gain on financial liabilities held at fair value through profit or loss
-
45,204
Other gains/(losses)
Other gains and losses
-
(1,000,000)
-
(954,796)
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
275,869
13,589
Adjustments in respect of prior periods
18,778
(156,646)
Total UK current tax
294,647
(143,057)
Foreign current tax on profits for the current period
94,209
94,795
Total current tax
388,856
(48,262)
Deferred tax
Origination and reversal of timing differences
350,848
(86,972)
Total tax charge/(credit)
739,704
(135,234)
BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 27 -

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

2024
2023
£
£
Profit before taxation
3,109,487
231,611
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
777,372
44,006
Tax effect of expenses that are not deductible in determining taxable profit
-
0
52,423
Tax effect of utilisation of tax losses not previously recognised
(69,341)
(20,624)
Unutilised tax losses carried forward
-
0
95,896
Adjustments in respect of prior years
18,778
(156,646)
Group relief
(29,471)
-
0
Other permanent differences
105,831
-
0
Effect of overseas tax rates
(94,209)
(42,484)
Accelerated capital allowances
(176,625)
(59,066)
R and D tax relief
(145,639)
(133,517)
Financial fair value adjustment
-
0
(8,589)
Deferred tax
350,847
(86,972)
Impact of prior year adjustment
-
180,339
2,161
-
Taxation charge/(credit)
739,704
(135,234)
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
700,000
-
BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
12
Intangible fixed assets
Group
Goodwill
Patents & licences
Total
£
£
£
Cost
At 1 April 2023
1,875,232
64,566
1,939,798
Additions
590,463
-
0
590,463
At 31 March 2024
2,465,695
64,566
2,530,261
Amortisation and impairment
At 1 April 2023
742,077
10,760
752,837
Amortisation charged for the year
202,284
21,522
223,806
At 31 March 2024
944,361
32,282
976,643
Carrying amount
At 31 March 2024
1,521,334
32,284
1,553,618
At 31 March 2023
1,133,155
53,806
1,186,961
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Total
£
£
£
£
Cost
At 1 April 2023
1,264,510
-
0
2,565,449
3,829,959
Additions
52,298
-
0
1,267,058
1,319,356
Disposals
-
0
-
0
(148,958)
(148,958)
Revaluation
84,782
-
0
-
0
84,782
At 31 March 2024
1,401,590
-
0
3,683,549
5,085,139
Depreciation and impairment
At 1 April 2023
41,832
-
0
906,722
948,554
Depreciation charged in the year
736
33,784
404,527
439,047
Eliminated in respect of disposals
-
0
-
0
(139,994)
(139,994)
At 31 March 2024
42,568
33,784
1,171,255
1,247,607
Carrying amount
At 31 March 2024
1,359,022
(33,784)
2,512,294
3,837,532
At 31 March 2023
1,222,678
-
0
1,658,727
2,881,405
BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Tangible fixed assets
(Continued)
- 29 -
Company
Leasehold land and buildings
£
Cost
At 1 April 2023 and 31 March 2024
1,039,500
Depreciation and impairment
At 1 April 2023
-
0
Depreciation charged in the year
33,784
At 31 March 2024
33,784
Carrying amount
At 31 March 2024
1,005,716
At 31 March 2023
1,039,500
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
1,400,000
1,400,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
1,400,000
Carrying amount
At 31 March 2024
1,400,000
At 31 March 2023
1,400,000
15
Subsidiaries

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

BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Subsidiaries
(Continued)
- 30 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Energystore Limited
21 - 23 Shore Road, Holywood, Co. Down, BT18 9HX, Northern Ireland
Ordinary shares
100.00
Heat Services Limited
21 - 23 Shore Road, Holywood, Co. Down, BT18 9HX, Northern Ireland
Ordinary shares
100.00
Northern Loft Insulation Limited
21 - 23 Shore Road, Holywood, Co. Down, BT18 9HX, Northern Ireland
Ordinary shares
100.00
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,645,843
1,690,104
-
-
Work in progress
19,968
56,314
-
-
1,665,811
1,746,418
-
-
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,078,194
3,334,707
-
0
-
0
Corporation tax recoverable
154,985
15,170
5,096
15,170
Other debtors
1,383,144
993,822
15,100
15,100
Prepayments and accrued income
427,916
376,077
10,000
-
0
6,044,239
4,719,776
30,196
30,270
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
2,123,852
1,895,451
113,281
111,193
Obligations under finance leases
21
21,619
81,969
-
0
-
0
Trade creditors
790,272
832,374
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
469,996
464,500
Corporation tax payable
530,007
75,566
26,110
-
0
Other taxation and social security
112,280
55,976
-
-
Other creditors
67,085
-
0
-
0
-
0
Accruals and deferred income
920,369
285,949
-
0
-
0
4,565,484
3,227,285
609,387
575,693
BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
752,694
1,242,096
221,794
307,082
Obligations under finance leases
21
-
0
25,752
-
0
-
0
752,694
1,267,848
221,794
307,082
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,375,717
3,137,547
335,075
418,275
Bank overdrafts
1,500,829
-
0
-
0
-
0
2,876,546
3,137,547
335,075
418,275
Payable within one year
2,123,852
1,895,451
113,281
111,193
Payable after one year
752,694
1,242,096
221,794
307,082

Danske Bank hold fixed and floating charges over the assets of the company in respect of all monies owing to Danske Bank. An invoice discounting facility arises as a result of the assignment of trade debtors to Danske Bank on a "with recourse" basis. A cross guarantee is held by the bank in favour of BACAR Group Limited and its group company members.

 

 

21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
21,619
81,969
-
0
-
0
In two to five years
-
0
25,752
-
0
-
0
21,619
107,721
-
-

Finance lease payments represent rentals payable by the company or group 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 remaining lease term is less than one year. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
22
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
483,209
195,627
Tax losses
-
(104,596)
Timing differences
(2,161)
-
481,048
91,031
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
91,031
-
Charge to profit or loss
390,017
-
Liability at 31 March 2024
481,048
-

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
100,234
86,137

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 33 -
25
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
414,039
328,649
-
-
Between two and five years
831,250
1,139,195
-
-
In over five years
198,750
80,000
-
-
1,444,039
1,547,844
-
-
26
Related party transactions
Transactions with related parties

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

Rent paid
2024
2023
£
£
Group
Other related parties
30,000
21,833

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
537,581
499,314
27
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Director's current accounts
-
444,021
15,195
459,216
444,021
15,195
459,216
BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 34 -
28
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
2,369,783
366,845
Adjustments for:
Taxation charged/(credited)
739,704
(135,234)
Finance costs
178,901
199,460
Investment income
(1,799)
-
0
Loss on disposal of tangible fixed assets
7,171
3,117
Amortisation and impairment of intangible assets
223,806
214,914
Depreciation and impairment of tangible fixed assets
439,047
320,967
Other gains and losses
-
954,796
Movements in working capital:
Decrease/(increase) in stocks
80,607
(689,582)
(Increase)/decrease in debtors
(1,169,453)
519,893
Increase/(decrease) in creditors
715,707
(1,251,656)
Cash generated from operations
3,583,474
503,520
29
Analysis of changes in net debt - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
43,953
400,987
444,940
Bank overdrafts
-
0
(1,500,829)
(1,500,829)
43,953
(1,099,842)
(1,055,889)
Borrowings excluding overdrafts
(3,137,547)
1,761,830
(1,375,717)
Obligations under finance leases
(107,721)
86,102
(21,619)
(3,201,315)
748,090
(2,453,225)
30
Prior period adjustment
Changes to the statement of financial position - group
As previously reported
Adjustment
As restated at 31 Mar 2023
£
£
£
Fixed assets
Goodwill
2,082,309
(949,154)
1,133,155
Capital and reserves
Profit and loss reserves
6,941,403
(949,154)
5,992,249
BACAR GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
30
Prior period adjustment
(Continued)
- 35 -
Changes to the income statement - group
As previously reported
Adjustment
As restated
Period ended 31 March 2023
£
£
£
Administrative expenses
(2,718,991)
50,846
(2,668,145)
Amounts written off investments
45,204
(1,000,000)
(954,796)
Profit after taxation
1,315,999
(949,154)
366,845
Notes to reconciliation

Based on a report during the 22/23 financial year the cost of the investment in Warmfill Limited and Warmwall Limited was overstated by £1m and therefore the goodwill created on the hive up was overstated by this amount. This then had a further impact upon the amortisation charged during the year.

 

In addition to the adjustment noted above the group took the opportunity to correct allocations within the P&L which resulted in significant changes between sales and cost of sales.

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