Company Registration No. 03794021 (England and Wales)
BARWORKS LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2024
Kings House
9-10 Haymarket
London
SW1Y 4BP
BARWORKS LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 10
Profit and loss account
11
Group statement of comprehensive income
12
Group balance sheet
13
Company balance sheet
14 - 15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Notes to the financial statements
19 - 39
BARWORKS LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr J. Akerlund
Mr S. Chillery ACA
Mr M. Francis-Baum
Mr P. Franzen
Ms L. Raphael
Mrs R. De Ruvo-Akerlund
Company number
03794021
Registered office
1st Floor Olympus House,
Quedgeley,
Gloucester,
United Kingdom,
GL2 4NF
Auditor
TC Group
Kings House
9-10 Haymarket
London
United Kingdom
SW1Y 4BP
BARWORKS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
The directors present the strategic report for the company and the group for the year ended 30 June 2024.
Business review
The year to June 2024 was a busy year for the Barworks group. Whilst foundations were laid for the future direction of the group, it was not without its challenges. The main focus during the year was the development and opening of our most ambitious site to date – Mare Street Market Kings Cross. This site covers 18,000 square feet over two floors in the heart of the Kings Cross estate and follows the blueprint from the original, very successful, Mare Street Market in Hackney.
Whilst fitting out this site, the group’s most profitable site – Gas Station, also in Kings Cross – was handed back to the landlord for redevelopment following exercise of a break-clause. This was a blow to the group and bad timing given the commitment to Mare Street Market Kings Cross.
The loss of Gas Station was softened by the group regaining possession of its very first site, Two Floors. This site was surrendered to the landlord in April 2022 for redevelopment works, eventually being returned in December 2023.
On the back of these changes, turnover from continuing operations dropped from £9.2m to £6.5m, a fall of 28.7%. Gross profit from continuing operations dropped from £6.1m to £4.3m, a fall of 29.7%. Food and drink cost inflation impacted the gross profit margin, which fell from 66.7% to 65.7% during the year.
Adjusted EBITDA from continuing operations rose by 3.9%, increasing from £323,781 to £336,395 (adjusted for new site pre-opening loses and exceptional items).
Future developments
The immediate focus of management is on the new sites added to the group, in particular Mare Street Market Kings Cross. The long-term success of Barworks is heavily linked to the performance of this flagship site. Management believe that initial turnover levels can be doubled once the site is fully activated and are pursuing a number of avenues to achieve this.
Once Mare Street Market Kings Cross and Two Floors are bedded in and contributing positively to the group, we will once again look at growth opportunities. There continues to be a lot of interest around the Mare Street Market brand and its ability to activate large buildings and spaces.
Principal risks and uncertainties
The directors consider the principal risks to the business as follows:
New sites not reaching the level of trade required to service fixed costs
Additional cost pressure through increased ERs NIC and higher business rates
Employee retention and availability of new staff following the pandemic and Brexit
The above risks are partially mitigated by the following measures:
Continual appraisal of performance coupled with the development of new revenue streams
Operational efficiencies and – where necessary – price rises for certain food & drink items
A competitive reward structure and comprehensive training and development
BARWORKS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Key performance indicators
The Directors measure the key indications of performance that can be influenced by our staff, namely turnover, gross profit percentage, staff cost percentage and adjusted EBITDA (earnings before interest, tax, depreciation, amortisation and pre- opening costs).
Financial risk management objectives and policies
The Directors regularly review the financial requirements of the business and the associated risks. The group is financed through retained earnings, medium-term bank debt and asset finance. There are no complicated financial instruments or derivatives. The main risk arising from the group’s financing is liquidity risk. The policies for managing this are summarised below.
Liquidity risk
Cash liquidity is reviewed by the Directors on a daily basis to ensure that current operations and future plans can be comfortably supported by cash generation from existing operations and debt facilities. The availability of additional working & growth capital will make the group considerably stronger.
Post balance sheet events
In July 2024, Mare Street Market Kings Cross opened and in November 2024, Two Floors reopened.
Mr S. Chillery ACA
Director
25 March 2025
BARWORKS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the group continued to be that of a group of licensed bars and restaurants.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr J. Akerlund
Mr S. Chillery ACA
Mr M. Francis-Baum
Mr P. Franzen
Ms L. Raphael
Mrs R. De Ruvo-Akerlund
Results and dividends
The results for the year are set out on page 11. To fully understand the underlying trading performance of the group, exceptional costs have been disclosed separately on the face of the profit and loss account.
Ordinary dividends were paid amounting to £nil (2023 - £nill).
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report and Directors' 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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
BARWORKS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
Strategic Report
The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the exposure to liquidity risk.
Auditor
TC Group were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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.
BARWORKS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
Going concern
The financial statements have been prepared on the going concern basis as the directors have a reasonable expectation that the group and company have adequate resources to continue in operational existence for the foreseeable future. For additional details regarding the going concern basis, please see note 1, Accounting Policies.
On behalf of the board
Mr S. Chillery ACA
Director
25 March 2025
BARWORKS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BARWORKS LIMITED
- 7 -
Opinion
We have audited the financial statements of Barworks Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, 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 the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2024 and of the group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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.
BARWORKS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BARWORKS LIMITED
- 8 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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.
BARWORKS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BARWORKS LIMITED
- 9 -
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
BARWORKS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BARWORKS LIMITED
- 10 -
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Philip Clark FCCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
25 March 2025
Office: London
BARWORKS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Continuing
Discontinued
30 June
Continuing
Discontinued
30 June
operations
operations
2024
operations
operations
2023
Notes
£
£
£
£
£
£
Turnover
3
6,538,818
1,825,919
8,364,737
9,165,172
454,547
9,619,719
Cost of sales
(2,239,718)
(495,933)
(2,735,651)
(3,052,195)
(188,553)
(3,240,748)
Gross profit
4,299,100
1,329,986
5,629,086
6,112,977
265,994
6,378,971
Administrative expenses
(6,001,905)
(1,524,985)
(7,526,890)
(7,036,210)
(487,598)
(7,523,808)
Other operating income
336,738
47,671
384,409
549,604
94,802
644,406
Exceptional item
10,412
-
10,412
-
-
Operating loss
4
(1,355,655)
(147,328)
(1,502,983)
(373,629)
(126,802)
(500,431)
Interest receivable and similar income
8
3,201
-
3,201
10,741
-
10,741
Interest payable and similar expenses
9
(47,832)
-
(47,832)
(36,434)
(417)
(36,851)
Loss before taxation
(1,400,286)
(147,328)
(1,547,614)
(399,322)
(127,219)
(526,541)
Tax on loss
10
181,401
(12,146)
169,255
217,252
1,109
218,361
Loss for the financial year
(1,218,885)
(159,474)
(1,378,359)
(182,070)
(126,110)
(308,180)
Loss for the financial year is all attributable to the owners of the parent company.
BARWORKS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
£
£
Loss for the year
(1,378,359)
(308,180)
Other comprehensive income
-
-
Total comprehensive income for the year
(1,378,359)
(308,180)
Total comprehensive income for the year is all attributable to the owners of the parent company.
BARWORKS LIMITED
GROUP BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
1,107,781
1,169,048
Other intangible assets
11
1,700
Total intangible assets
1,107,781
1,170,748
Tangible assets
12
5,638,050
2,697,231
Investments
13
38,990
38,990
6,784,821
3,906,969
Current assets
Stocks
17
172,232
162,686
Debtors
16
2,053,934
1,484,803
Cash at bank
420,120
1,962,500
2,646,286
3,609,989
Creditors: amounts falling due within one year
18
(4,870,095)
(2,474,336)
Net current (liabilities)/assets
(2,223,809)
1,135,653
Total assets less current liabilities
4,561,012
5,042,622
Creditors: amounts falling due after more than one year
19
(1,110,243)
(360,346)
Provisions for liabilities
22
(162,288)
(15,436)
Net assets
3,288,481
4,666,840
Capital and reserves
Called up share capital
24
3,298
3,298
Share premium account
77,262
77,262
Capital redemption reserve
110
110
Profit and loss reserves
3,207,811
4,586,170
Total equity
3,288,481
4,666,840
The financial statements on pages 10 - 42 were approved by the board of directors and authorised for issue on 25 March 2025 and are signed on its behalf by:
Mr S. Chillery ACA
Director
BARWORKS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
3,008
1,401
Investments
13
1,155,001
1,063,251
1,158,009
1,064,652
Current assets
Debtors
16
5,458,456
3,599,464
Cash at bank
655
1,181,892
5,459,111
4,781,356
Creditors: amounts falling due within one year
18
(1,466,585)
(506,236)
Net current assets
3,992,526
4,275,120
Total assets less current liabilities
5,150,535
5,339,772
Creditors: amounts falling due after more than one year
19
(425,000)
-
Net assets
4,725,535
5,339,772
Capital and reserves
Called up share capital
24
3,298
3,298
Share premium account
77,262
77,262
Capital redemption reserve
110
110
Profit and loss reserves
4,644,865
5,259,102
Total equity
4,725,535
5,339,772
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £614,237 (2023 - £663,403 loss).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
BARWORKS LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2024
30 June 2024
- 15 -
The financial statements were approved by the board of directors and authorised for issue on 25 March 2025 and are signed on its behalf by:
25 March 2025
Mr S. Chillery ACA
Director
Company Registration No. 03794021
The notes on pages 19 to 39 form part of these financial statements
BARWORKS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
3,400
77,262
8
4,993,350
5,074,020
Year ended 30 June 2023:
Loss and total comprehensive income for the year
-
-
-
(308,180)
(308,180)
Own shares acquired
-
-
-
(99,000)
(99,000)
Redemption of shares
24
(102)
-
102
-
Balance at 30 June 2023
3,298
77,262
110
4,586,170
4,666,840
Year ended 30 June 2024:
Loss and total comprehensive income for the year
-
-
-
(1,378,359)
(1,378,359)
Balance at 30 June 2024
3,298
77,262
110
3,207,811
3,288,481
The notes on pages 19 to 39 form part of these financial statements
BARWORKS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
3,400
77,262
8
6,021,505
6,102,175
Year ended 30 June 2023:
Loss and total comprehensive income for the year
-
-
-
(663,403)
(663,403)
Own shares acquired
-
-
-
(99,000)
(99,000)
Redemption of shares
24
(102)
-
102
-
Balance at 30 June 2023
3,298
77,262
110
5,259,102
5,339,772
Year ended 30 June 2024:
Loss and total comprehensive income for the year
-
-
-
(614,237)
(614,237)
Balance at 30 June 2024
3,298
77,262
110
4,644,865
4,725,535
BARWORKS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
639,316
383,840
Interest paid
(47,832)
(36,851)
Income taxes refunded
501
4,144
Net cash inflow from operating activities
591,985
351,133
Investing activities
Proceeds from disposal of intangibles
1,700
-
Purchase of tangible fixed assets
(3,711,761)
(698,626)
Proceeds from disposal of tangible fixed assets
(1,699)
4,854
Proceeds from disposal of subsidiaries, net of cash disposed
111,010
-
Proceeds from disposal of investments
(111,010)
-
Repayment of loans
(23,360)
-
Interest received
3,201
10,741
Net cash used in investing activities
(3,731,919)
(683,031)
Financing activities
Purchase of own shares
(99,000)
Repayment of directors loans
-
(26,613)
Proceeds from borrowings
-
389,076
Repayment of borrowings
60,926
(40,433)
Repayment of bank loans
725,000
-
Payment of finance leases obligations
571,584
(25,599)
Net cash generated from financing activities
1,357,510
197,431
Net decrease in cash and cash equivalents
(1,782,424)
(134,467)
Cash and cash equivalents at beginning of year
1,962,500
2,096,967
Cash and cash equivalents at end of year
180,076
1,962,500
Relating to:
Cash at bank and in hand
420,120
1,962,500
Bank overdrafts included in creditors payable within one year
(240,044)
-
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
1
Accounting policies
Company information
Barworks Limited (“the company”) is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is 1st Floor, Olympus House, Quedgeley, Gloucester, GL2 4NF.
The company's registration number is 03794021.
The group consists of Barworks Limited and all of its subsidiaries.
The principal activity of the group in the year under review was that of running licensed bars and restaurants.
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 principal accounting policies adopted are set out below.
1.2
Basis of consolidation
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 consolidated group financial statements consist of the financial statements of the parent company Barworks 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 30 June 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.
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 20 -
1.3
Going concern
The year to June 2024 was a busy one for the Barworks group. The development of two new sites whilst losing its most profitable site put pressure on the group’s resources and led management to investigate a number of avenues for additional funding.
One such avenue were the continuing discussions with a potential strategic investor which have been on going for a number of years. These discussions concluded positively post year end and resulted in new debt financing to sit alongside existing bank facilities and which helped the group complete the re-fit of Two Floors in Soho. Discussions continued and are now at an advanced stage with this strategic investor planning to acquire a major stake in the business which in turn will release additional working & growth capital.
The Directors have prepared trading and cash flow forecasts through to June 2027 which include this further investment and show that the group will be cash generative and will maintain strong levels of cash liquidity during the period. As with any group placing reliance on future forecasts, the Directors acknowledge that there can be no certainty that these will be achieved.
Given the above, the Directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the next 12 months from the date of approval of these accounts. They therefore continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
The turnover shown in the profit and loss account represents sales during the year, exclusive of Value Added Tax and is recognised at the point of sale through electronic tills.
1.5
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 capitalised and written off evenly over the period of the unexpired lease term of the acquired site as in the opinion of the directors this represents the period over which the goodwill is expected to give rise to economic benefits.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Branding
20% reducing balance
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or revaluation net of depreciation and any impairment losses.
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 21 -
Depreciation is recognised so as to write off the cost of all assets, other than freehold land, less their residual values over their useful lives on the following basis:
Leasehold property
Over the life of the lease
Improvements to property
Over the life of the lease
Plant and machinery
20% reducing balance
Fixtures and fittings
20% reducing balance
Computer equipment
33% straight line
Motor vehicles
20% reducing balance
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.
1.8
Fixed asset investments
In the separate accounts of the company, interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
Interests in subsidiaries are assessed for impairment at each reporting date. Any impairments losses or reversals of impairment losses are recognised immediately in profit or loss. No impairment losses were recognised at 30 June 2024.
Unlisted investments are included at cost less provisions for impairment as an approximation to market value, unless there is specific evidence to the contrary.
1.9
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.
1.10
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
1.11
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 22 -
1.12
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet 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 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 are not publicly traded. They are included at cost less provisions for impairment as an approximation to market value, unless there is specific evidence to the contrary.
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.
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 23 -
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, loans from fellow group companies and other loans 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
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.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 24 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset 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.
1.15
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account 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.
1.18
Property rentals and other related staff costs and overheads incurred prior to a new site opening are written off to the profit and loss accounts as incurred.
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 25 -
1.19
Dividends are recognised as liabilities once they are no longer at the discretion of the Company.
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.
Key sources of estimation uncertainty
The directors do not believe that there are any estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Licensed bars and restaurants
8,364,737
9,619,719
4
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging:
Depreciation of owned tangible fixed assets
402,809
491,129
Loss on disposal of tangible fixed assets
369,832
75,425
Amortisation of intangible assets
61,267
56,791
(Profit)/loss on disposal of intangible assets
-
5,046
Operating lease charges
1,114,666
717,642
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
28,810
32,750
For other services
All other non-audit services
21,515
28,230
6
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
Number of operations staff
240
235
2
2
Number of office and management staff
9
9
9
9
Total
249
244
11
11
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,243,263
3,850,691
484,396
536,845
Social security costs
273,708
354,253
84,864
84,368
Pension costs
50,447
87,210
10,313
21,851
3,567,418
4,292,154
579,573
643,064
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
281,072
274,547
Company pension contributions to defined contribution schemes
7,044
7,945
288,116
282,492
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
154,286
142,500
Company pension contributions to defined contribution schemes
3,522
4,080
The key management personnel are included within the directors' remuneration. The total employer NIC for the year in relation to the key management personnel amounted to £34,418 (2023 - £38,909).
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,039
10,741
Other interest income
162
-
Total income
3,201
10,741
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
3,039
10,741
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
38,051
-
Other interest on financial liabilities
-
30,138
38,051
30,138
Other finance costs:
Interest on finance leases and hire purchase contracts
9,781
5,336
Other interest
-
1,377
Total finance costs
47,832
36,851
10
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(501)
Deferred tax
Origination and reversal of timing differences
(168,754)
(218,361)
Total tax credit
(169,255)
(218,361)
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
(Continued)
- 29 -
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(1,547,614)
(526,541)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
(386,904)
(107,941)
Tax effect of expenses that are not deductible in determining taxable profit
172,490
30,551
Tax effect of utilisation of tax losses not previously recognised
(182,332)
(125,830)
Unutilised tax losses carried forward
188,573
257,039
Adjustments in respect of prior years
(501)
Group relief
(100,900)
(28,159)
Permanent capital allowances in excess of depreciation
40,204
(11,192)
Depreciation on assets not qualifying for tax allowances
6,929
-
Other non-reversing timing differences
46,918
(14,468)
Deferred tax adjustments for current year
46,268
(218,361)
Taxation credit
(169,255)
(218,361)
11
Intangible fixed assets
Group
Goodwill
Branding
Total
£
£
£
Cost
At 1 July 2023
1,883,175
2,500
1,885,675
Disposals
(2,500)
(2,500)
At 30 June 2024
1,883,175
1,883,175
Amortisation and impairment
At 1 July 2023
714,127
800
714,927
Amortisation charged for the year
61,267
61,267
Disposals
(800)
(800)
At 30 June 2024
775,394
775,394
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
11
Intangible fixed assets
(Continued)
- 30 -
Carrying amount
At 30 June 2024
1,107,781
1,107,781
At 30 June 2023
1,169,048
1,700
1,170,748
The company had no intangible fixed assets at 30 June 2024 or 30 June 2023.
12
Tangible fixed assets
Group
Leasehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2023
1,677,985
498,947
2,125,039
110,362
3,381
4,415,714
Additions
496,031
585,297
2,627,533
2,900
3,711,761
Disposals
(89,367)
(58,940)
(394,000)
(19,660)
(561,967)
At 30 June 2024
2,084,649
1,025,304
4,358,572
93,602
3,381
7,565,508
Depreciation and impairment
At 1 July 2023
116,006
276,403
1,237,048
86,139
2,887
1,718,483
Depreciation charged in the year
33,529
56,173
304,597
8,431
79
402,809
Eliminated in respect of disposals
(11,396)
(20,518)
(151,528)
(10,392)
(193,834)
At 30 June 2024
138,139
312,058
1,390,117
84,178
2,966
1,927,458
Carrying amount
At 30 June 2024
1,946,510
713,246
2,968,455
9,424
415
5,638,050
At 30 June 2023
1,561,979
222,544
887,991
24,223
494
2,697,231
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Tangible fixed assets
(Continued)
- 31 -
Company
Plant and machinery
Fixtures and fittings
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
651
890
75,594
3,380
80,515
Additions
2,469
2,469
At 30 June 2024
651
890
78,063
3,380
82,984
Depreciation and impairment
At 1 July 2023
62
573
75,593
2,886
79,114
Depreciation charged in the year
50
70
663
79
862
At 30 June 2024
112
643
76,256
2,965
79,976
Carrying amount
At 30 June 2024
539
247
1,807
415
3,008
At 30 June 2023
589
318
494
1,401
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
(111,010)
1,005,001
1,024,261
Unlisted investments
150,000
38,990
150,000
38,990
38,990
38,990
1,155,001
1,063,251
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
13
Fixed asset investments
(Continued)
- 32 -
Movements in fixed asset investments
Group
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 July 2023
-
38,990
38,990
Additions
(111,010)
111,010
-
At 30 June 2024
(111,010)
150,000
38,990
Carrying amount
At 30 June 2024
(111,010)
150,000
38,990
At 30 June 2023
-
38,990
38,990
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 July 2023
1,024,261
38,990
1,063,251
Additions
38,990
111,010
150,000
Valuation changes
500,000
-
500,000
Disposals
(558,250)
-
(558,250)
At 30 June 2024
1,005,001
150,000
1,155,001
Carrying amount
At 30 June 2024
1,005,001
150,000
1,155,001
At 30 June 2023
1,024,261
38,990
1,063,251
14
Subsidiaries
Details of the company's subsidiaries at 30 June 2024 are as follows:
Name of undertaking
Registered office/Company
Nature of business
Class of
% Held
S479A
registration no.
shares held
Direct
Barworks (Soho) Limited
UK - 02937414
Licensed bar and restaurant
Ordinary
100
Yes
Mare Street Projects Limited
UK - 10469321
Licensed bar and restaurant
Ordinary
100
Yes
Barworks (Kings Cross) Limited
UK - 06500087
Licensed bar and restaurant
Ordinary
100
Yes
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
14
Subsidiaries
Name of undertaking
Registered office/Company
Nature of business
Class of
% Held
S479A
registration no.
shares held
Direct
(Continued)
- 33 -
Barworks Pub Group Limited
UK - 12483424
Licensed bar and restaurant
Ordinary
100
Yes
Barworks London 1 Limited
UK - 13908965
Licensed bar and restaurant
Ordinary
100
Yes
Barworks London 2 Limited
UK - 13909025
Dormant
Ordinary
100
N/A
Barworks London 3 Limited
UK - 13909076
Dormant
Ordinary
100
N/A
The table above indicates which subsidiaries are exempt from the requirements of an audit in accordance with Section 479A of the Companies Act 2006.
15
Financial instruments
As permitted by the reduced disclosure framework within FRS 102, the company has taken advantage of the exemption from disclosing the carrying amount of certain classes of financial instruments.
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
14,095
23,312
8,525
1,502
Amounts owed by group undertakings
-
-
4,538,232
3,087,199
Other debtors
251,558
297,472
211,866
91,008
Prepayments and accrued income
401,599
167,816
20,675
19,755
667,252
488,600
4,779,298
3,199,464
Deferred tax asset (note 22)
294,000
107,500
667,252
782,600
4,779,298
3,306,964
Amounts falling due after more than one year:
Other debtors
377,435
302,562
29,250
Deferred tax asset (note 22)
1,009,247
399,641
649,908
292,500
1,386,682
702,203
679,158
292,500
Total debtors
2,053,934
1,484,803
5,458,456
3,599,464
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 34 -
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
172,232
162,686
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
540,044
540,003
Obligations under finance leases
21
207,849
Other borrowings
20
210,926
111,162
Trade creditors
1,667,051
690,770
96,333
(3,754)
Amounts owed to group undertakings
719,820
294,734
Other taxation and social security
314,907
464,955
30,185
77,021
Other creditors
1,385,613
223,986
39,045
32,758
Accruals and deferred income
543,705
983,463
41,199
105,477
4,870,095
2,474,336
1,466,585
506,236
Amounts owed to group undertakings are repayable on demand. Accordingly, the amounts have been disclosed as falling due within one year.
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
425,000
425,000
Obligations under finance leases
21
363,735
Other borrowings
20
321,508
360,346
1,110,243
360,346
425,000
-
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 35 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
725,000
725,000
Bank overdrafts
240,044
240,003
Other loans
532,434
471,508
1,497,478
471,508
965,003
-
Payable within one year
750,970
111,162
540,003
Payable after one year
746,508
360,346
425,000
21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
207,849
In two to five years
363,735
571,584
-
-
-
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 36 -
22
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Fixed asset timing differences
165,820
55,611
(147,415)
(61,581)
Tax losses
(3,532)
(40,175)
1,156,322
755,222
Retirement benefit obligations
-
-
340
-
162,288
15,436
1,009,247
693,641
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Fixed asset timing differences
-
-
(752)
-
Tax losses
-
-
650,320
400,000
Retirement benefit obligations
-
-
340
-
-
-
649,908
400,000
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 July 2023
(678,205)
(400,000)
Credit to profit or loss
(168,754)
(249,908)
Asset at 30 June 2024
(846,959)
(649,908)
The group has accumulated tax losses of circa £6.0m which are considered available to carry forward for offset against future trading profits. A deferred tax asset of £1,009k has been recognised in respect of these tax losses.
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 37 -
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
43,403
79,285
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 A shares of £1 each
3,298
3,298
3,298
3,298
During the prior year the company purchased 102 of its own Ordinary A Shares of £1 each for cancellation.
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
1,362,500
645,000
-
-
Between two and five years
5,450,000
2,404,932
-
-
In over five years
10,937,740
3,633,028
-
-
17,750,240
6,682,960
-
-
26
Related party transactions
The directors maintain loan accounts with the company. At the year end, the directors owed the company £19,190 (2023: - £7,282).
The directors received dividends during the year totalling £nil (2023 - £nil).
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 38 -
27
Controlling party
In the opinion of the directors there is no ultimate controlling party in the current or previous years.
28
Cash generated from group operations
2024
2023
£
£
Loss for the year after tax
(1,378,359)
(308,180)
Adjustments for:
Taxation credited
(169,255)
(218,361)
Finance costs
47,832
36,851
Investment income
(3,202)
(10,739)
Loss on disposal of tangible fixed assets
369,832
75,425
(Gain)/loss on disposal of intangible assets
-
5,046
Amortisation and impairment of intangible assets
61,267
56,791
Depreciation and impairment of tangible fixed assets
402,809
491,129
Movements in working capital:
Increase in stocks
(9,546)
(9,570)
(Increase)/decrease in debtors
(230,165)
914,916
Increase/(decrease) in creditors
1,548,103
(649,468)
Cash generated from operations
639,316
383,840
29
Analysis of changes in net funds/(debt) - group
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
1,962,500
(1,542,380)
420,120
Bank overdrafts
(240,044)
(240,044)
1,962,500
(1,782,424)
180,076
Borrowings excluding overdrafts
(471,508)
(785,926)
(1,257,434)
Obligations under finance leases
-
(571,584)
(571,584)
1,490,992
(3,139,934)
(1,648,942)
BARWORKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 39 -
30
Analysis of changes in net funds/(debt) - company
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
1,181,892
(1,181,237)
655
Bank overdrafts
(240,003)
(240,003)
1,181,892
(1,421,240)
(239,348)
Borrowings excluding overdrafts
-
(725,000)
(725,000)
1,181,892
(2,146,240)
(964,348)
2024-06-302023-07-01falsefalseCCH SoftwareCCH Accounts Production 2024.310Mr J. AkerlundMr S. Chillery ACAMr M. Francis-BaumMr P. FranzenMs L. RaphaelMrs R. De Ruvo-AkerlundMr P. 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