Company registration number 12120574 (England and Wales)
B & C HOLDINGS (NW) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
B & C HOLDINGS (NW) LIMITED
COMPANY INFORMATION
Directors
Mr K Ellahi
Mrs M Ellahi
Mr S Munir
Company number
12120574
Registered office
Sixth Floor
St Johns Court
Ainsworth Street
Blackburn
England
BB1 6AR
Auditor
AMS Accountants Corporate Ltd
Floor 2
9 Portland Street
Manchester
M1 3BE
B & C HOLDINGS (NW) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 31
B & C HOLDINGS (NW) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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

Business Overview

B&C Holdings (NW) Limited and its group companies specialise in two distinct sectors, professional legal services and tissue paper converting / manufacturing.

Business model and strategy

The group operates through a business model that leverages the expertise of highly skilled professionals to deliver tailored service solutions. Our strategy focuses on expanding our market share by delivering consistent, high-quality service to our clients. We remain committed to innovation and operational efficiency, investing in technology that enhances project delivery timelines and cost-effectiveness.

 

The directors are satisfied with the results of the group for the financial year.

 

The group's turnover for the year has grown from the previous year. This has been driven by growth in both the professional legal services and the tissue paper converting / manufacturing business.

 

Baker Coleman Solicitors Limited has a considerable presence in the personal injury sector. The recognised brand value and its trust in the eyes of clients are especially important in online marketing platforms.

 

The group has no external long term loans outstanding at the balance sheet date.

Business environment and outlook

The business environment in 2023 and 2024 was affected by inflationary pressures and economic uncertainty. Despite these challenges, demand in the UK for both legal services and tissue paper products has remained strong.

International Tissue Company Limited is well-positioned to take advantage of this shift. In recognition of this selling point as well as being members of the Cleaning and Hygiene Suppliers Association, the company is in the process of obtaining the following accreditations :

 

 

Obtaining these accreditations demonstrates our performance of more efficient use of resources, enhancements in the quality of the service we provide and a commitment to maintaining our standards, gaining a competitive advantage and the trust of stakeholders. Looking ahead, B&C expects steady growth in 2024, driven by continued investment in the residential and commercial sectors. Our secured forward order book for 2024 is a positive indicator of future performance.

Environmental and Social Responsibility

B&C Holdings (NW) Limited remains committed to reducing its environmental impact. In 2024, we embarked on obtaining a range of ISO Accreditations as part of this we also began focusing on enhancing the energy efficiency of our operations and reducing waste, we expect to assess obtaining the ISO14001 - Environmental Management Systems accreditation in 2025.

B & C HOLDINGS (NW) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Principal risks and uncertainties

The group is subject to the risks set out below which are mitigated as indicated.

 

Supply chain and inflation risk

Like many businesses, B&C Holdings (NW) Limited is subject to inflationary pressures on material, subcontractor and labour costs. We have mitigated these risks by maintaining flexibility in supplier sourcing. In addition, the group prides itself in recruiting and retaining high calibre staff and are an active user of the UK apprenticeship schemes which offer great opportunities to the growing workforce. However, global supply chain disruptions and inflation continue to present a challenge.

 

Market competition

There is intense competition and the group focuses on its established track record, quality of service provided and personalised client service to maintain competitiveness.

 

Credit and liquidity risk

The group manages its cash flow carefully, maintaining sufficient liquidity to meet its obligations. The company ensures that only creditworthy clients are granted terms, and trade debtor days are closely monitored.

 

Economic downturn risk

The state of the general economy, including ongoing uncertainty following Brexit and the impacts of global conflicts, could affect demand for products and services.

 

The group risk as it participates in a highly competitive market that includes both small and large personal injury law firms. Focusing on its specialised and core areas of practice ensures the company keeps itself differentiated from the other participants in the sector. Growth has also become achievable through its vast and reliable marketing channels. Case management strategies along with the ever-changing technology is the key focusing area to be a well-established brand in the future years.

 

Baker Coleman Solicitors Limited has not borne any significant disruption or additional cost as a result of changes in the cost regime in the firm's practice areas which have been introduced over the last couple of years.

 

The key risks faced by the company include the threat of new entrants in the market and increasing online penetration of already existing competing firms. The company continues to tap all market segments with suitable strategies whilst maintaining the market share. Another key risk is the prospect of change in client preferences.

On behalf of the board

Mr K Ellahi
Director
21 March 2025
B & C HOLDINGS (NW) 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.

Principal activities

The principal activity of the company continued to be that of a holding company.

 

The principal activities of the subsidiary companies continued to be that of a solicitors practice and manufacture of paper and paperboard.

Results and dividends

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

Ordinary dividends were paid amounting to £105,000. 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 K Ellahi
Mrs M Ellahi
Mr S Munir
Financial instruments
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 fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.

Foreign currency risk

The group’s principal foreign currency exposures arise from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

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.

Auditor

AMS Accountants Corporate Ltd 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.

B & C HOLDINGS (NW) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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.

On behalf of the board
Mr K Ellahi
Director
21 March 2025
B & C HOLDINGS (NW) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF B & C HOLDINGS (NW) LIMITED
- 5 -

Qualified opinion

We have audited the financial statements of B & C Holdings (NW) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

Basis for qualified opinion

We were not appointed as auditor of the group until after 31 March 2024 and thus did not observe the counting of physical inventories at the end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 March 2024, which are included in the balance sheet at £1,157,482, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.

 

Our opinion on the financial statements for the year ended 31 March 2023 is also modified due to the same issue as noted above and of the possible effect of this matter on the comparability of the current period’s figures and the corresponding figures.

 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.

B & C HOLDINGS (NW) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF B & C HOLDINGS (NW) 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 satisfy ourselves concerning the inventory quantities of £818,004 held at 31 March 2023 and £1,157,482 held at 31 March 2024. We have concluded that where the other information refers to the inventory balance or related balances such as cost of sales, 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 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.

 

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

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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.

B & C HOLDINGS (NW) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF B & C HOLDINGS (NW) LIMITED
- 7 -

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

We gained an understanding of the legal and regulatory framework applicable to the Group and the industry in which it operates, drawing on our broad sector experience, and considered the risk of acts by the Group that were contrary to these laws and regulations, including fraud. We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, SRA regulations, Companies Act 2006 and equivalent local laws and regulations.

 

We made enquiries of management with regards to compliance with the above laws and regulations and corroborated any necessary evidence to relevant information, for example, minutes of the board meetings, legal reports provided to the Group and correspondence between the Group and its solicitors. Audit procedures performed by the engagement team included:

 

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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 which we are required to address

This is the first accounting period for which we have been appointed as auditors of the company and in consequence the prior year figures for the year ended 31 March 2023 are unaudited.

Use of our report

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

Andrew Davis ACCA CTA FMAAT (Senior Statutory Auditor)
For and on behalf of AMS Accountants Corporate Ltd, Statutory Auditor
Chartered Accountants
Floor 2
9 Portland Street
Manchester
M1 3BE
21 March 2025
B & C HOLDINGS (NW) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
3
23,621,431
16,867,029
Cost of sales
(15,401,356)
(10,414,973)
Gross profit
8,220,075
6,452,056
Administrative expenses
(5,672,158)
(3,019,730)
Other operating income
500
4,188
Operating profit
4
2,548,417
3,436,514
Interest receivable and similar income
7
57,062
10,669
Interest payable and similar expenses
8
(7,054)
-
Amounts written off investments
9
(1,643,917)
-
Profit before taxation
954,508
3,447,183
Tax on profit
10
(884,598)
(774,488)
Profit for the financial year
24
69,910
2,672,695
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
B & C HOLDINGS (NW) LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
2,100,026
949,550
Current assets
Stocks
16
1,157,482
818,004
Debtors
17
5,200,297
5,393,779
Cash at bank and in hand
4,523,947
2,840,940
10,881,726
9,052,723
Creditors: amounts falling due within one year
18
(5,751,458)
(3,250,500)
Net current assets
5,130,268
5,802,223
Total assets less current liabilities
7,230,294
6,751,773
Creditors: amounts falling due after more than one year
19
(340,800)
-
Provisions for liabilities
Deferred tax liability
21
409,611
236,800
(409,611)
(236,800)
Net assets
6,479,883
6,514,973
Capital and reserves
Called up share capital
23
300
300
Profit and loss reserves
24
6,479,583
6,514,673
Total equity
6,479,883
6,514,973

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 21 March 2025 and are signed on its behalf by:
21 March 2025
Mr K  Ellahi
Director
Company registration number 12120574 (England and Wales)
B & C HOLDINGS (NW) LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,984,772
847,117
Investments
13
151
151
1,984,923
847,268
Current assets
Debtors
17
1,955,076
2,684,311
Cash at bank and in hand
2,203,949
1,355,061
4,159,025
4,039,372
Creditors: amounts falling due within one year
18
(1,483,727)
(350)
Net current assets
2,675,298
4,039,022
Total assets less current liabilities
4,660,221
4,886,290
Provisions for liabilities
Deferred tax liability
21
380,797
211,779
(380,797)
(211,779)
Net assets
4,279,424
4,674,511
Capital and reserves
Called up share capital
23
300
300
Profit and loss reserves
24
4,279,124
4,674,211
Total equity
4,279,424
4,674,511

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 £290,087 (2023 - £1,381,259 profit).

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

The financial statements were approved by the board of directors and authorised for issue on 21 March 2025 and are signed on its behalf by:
21 March 2025
Mr K  Ellahi
Director
Company registration number 12120574 (England and Wales)
B & C HOLDINGS (NW) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
300
3,937,978
3,938,278
Year ended 31 March 2023:
Profit and total comprehensive income
-
2,672,695
2,672,695
Dividends
11
-
(96,000)
(96,000)
Balance at 31 March 2023
300
6,514,673
6,514,973
Year ended 31 March 2024:
Profit and total comprehensive income
-
69,910
69,910
Dividends
11
-
(105,000)
(105,000)
Balance at 31 March 2024
300
6,479,583
6,479,883
B & C HOLDINGS (NW) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
300
3,388,952
3,389,252
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
1,381,259
1,381,259
Dividends
11
-
(96,000)
(96,000)
Balance at 31 March 2023
300
4,674,211
4,674,511
Year ended 31 March 2024:
Profit and total comprehensive income
-
(290,087)
(290,087)
Dividends
11
-
(105,000)
(105,000)
Balance at 31 March 2024
300
4,279,124
4,279,424
B & C HOLDINGS (NW) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
5,138,454
2,018,763
Interest paid
(7,054)
-
Income taxes paid
(619,551)
(299,879)
Net cash inflow from operating activities
4,511,849
1,718,884
Investing activities
Purchase of tangible fixed assets
(1,562,907)
(645,502)
Repayment of loans
(1,643,917)
-
Interest received
57,062
10,669
Net cash used in investing activities
(3,149,762)
(634,833)
Financing activities
Proceeds from issue of shares
-
150
Proceeds from borrowings
426,000
-
Repayment of borrowings
-
(63,326)
Dividends paid to equity shareholders
(105,000)
(96,000)
Net cash generated from/(used in) financing activities
321,000
(159,176)
Net increase in cash and cash equivalents
1,683,087
924,875
Cash and cash equivalents at beginning of year
2,840,860
1,915,985
Cash and cash equivalents at end of year
4,523,947
2,840,860
Relating to:
Cash at bank and in hand
4,523,947
2,840,940
Bank overdrafts included in creditors payable within one year
-
(80)
B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information

B & C Holdings (NW) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Sixth Floor, St Johns Court, Ainsworth Street, Blackburn, England, BB1 6AR.

 

The group consists of B & C Holdings (NW) 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. 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.

B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company B & C Holdings (NW) 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.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the truegroup 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 in respect of legal services represents the fair value of amounts receivable for services provided to clients, exclusive of value added tax and professional disbursements.

 

Turnover is recognised as contract activity progresses, and as the right to consideration is earned.

 

Fair value reflects the amount expected to be recovered from clients and is based on time spent, skills and expertise provided in addition to expenses incurred.

 

Turnover in respect of contingent fee assignments (over and above any minimum fee which is recognised as above) is recognised in the period when the contingent event occurs, and the fee is assured.

 

Turnover in respect of non-contingent fee assignments is recognised as the work is performed as captured daily by fee earners recording time against specific matters at contracted rates. The contracted rates are constrained to a true recovery rate. The revenue constraint is determined with reference to historical recovery rates, specific agreements with clients and amounts considered irrecoverable.

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

1.6
Tangible fixed assets

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

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

Plant and equipment
20% reducing balance
Fixtures and fittings
25% reducing balance
Computers
20% straight line
B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -

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 profit and loss account.

1.7
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.

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.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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.

1.9
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.

B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -

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.

1.10
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.

1.11
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 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 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.

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.

B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
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.

Derecognition of financial liabilities

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

1.12
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.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
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.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

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

1.16
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.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
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.

 

The directors do not consider that there are any critical judgements or sources of estimation uncertainty requiring disclosure during the current or prior period.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Legal services
8,240,793
6,903,771
Paper sales
15,380,638
9,963,258
23,621,431
16,867,029
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
23,621,431
16,867,029
2024
2023
£
£
Other revenue
Interest income
57,062
10,669
Grants received
500
4,188
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
25,630
27,070
Government grants
(500)
(4,188)
Fees payable to the group's auditor for the audit of the group's financial statements
22,500
-
Depreciation of owned tangible fixed assets
412,431
122,647
B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
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
Directors
3
3
3
3
Admin
91
57
-
-
Total
94
60
3
3

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,085,667
1,369,144
-
0
-
0
Social security costs
149,092
93,146
-
-
Pension costs
513,233
83,768
-
0
-
0
2,747,992
1,546,058
-
0
-
0
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
48,389
45,704
Company pension contributions to defined contribution schemes
480,000
60,000
528,389
105,704
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
20,319
n/a
Company pension contributions to defined contribution schemes
160,000
n/a
B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
53,386
10,591
Other interest income
3,676
78
Total income
57,062
10,669
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
6,948
-
Other interest
106
-
Total finance costs
7,054
-
9
Amounts written off investments
2024
2023
£
£
Amounts written off current loans
(1,643,917)
-

Included within Amounts written off current loans are balances that were due from related parties under common control of the directors that have been written off during the year as they are no longer considered recoverable.

 

10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
711,788
618,760
Deferred tax
Origination and reversal of timing differences
172,810
155,728
Total tax charge
884,598
774,488
B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 23 -

The actual charge 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
954,508
3,447,183
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
238,627
654,965
Tax effect of expenses that are not deductible in determining taxable profit
645,385
99,931
Permanent capital allowances in excess of depreciation
586
449
Deferred tax adjustments in respect of prior years
-
19,143
Taxation charge
884,598
774,488

The standard rate of tax applied to corporation and deferred taxation balances is 25% (2023 - 19%). The applicable tax rate has changed following the substantive enactment of the Finance Act 2021.

11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
105,000
96,000
12
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 April 2023
1,371,163
9,345
30,397
1,410,905
Additions
1,561,689
-
1,218
1,562,907
At 31 March 2024
2,932,852
9,345
31,615
2,973,812
Depreciation and impairment
At 1 April 2023
431,704
8,098
21,553
461,355
Depreciation charged in the year
410,324
312
1,795
412,431
At 31 March 2024
842,028
8,410
23,348
873,786
Carrying amount
At 31 March 2024
2,090,824
935
8,267
2,100,026
At 31 March 2023
939,459
1,247
8,844
949,550
B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Tangible fixed assets
(Continued)
- 24 -
Company
Plant and equipment
£
Cost
At 1 April 2023
1,264,067
Additions
1,529,403
At 31 March 2024
2,793,470
Depreciation and impairment
At 1 April 2023
416,950
Depreciation charged in the year
391,748
At 31 March 2024
808,698
Carrying amount
At 31 March 2024
1,984,772
At 31 March 2023
847,117
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
-
151
151
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
151
Carrying amount
At 31 March 2024
151
At 31 March 2023
151
14
Subsidiaries

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

B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Subsidiaries
(Continued)
- 25 -
Name of undertaking
Address
Class of
% Held
shares held
Direct
Baker & Coleman Solicitors Limited
England and Wales
Ordinary
100.00
International Tissue Company Limited
England and Wales
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Sixth Floor, St Johns Court, Ainsworth Street, Blackburn, England, BB1 6AR
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
5,077,033
5,340,020
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
5,026,165
2,273,256
n/a
n/a
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
927,506
717,127
-
-
Finished goods and goods for resale
229,976
100,877
-
0
-
0
1,157,482
818,004
-
-
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,461,874
2,716,803
-
0
-
0
Amounts owed by group undertakings
-
-
354,780
90,575
Other debtors
1,615,159
2,623,736
1,600,296
2,593,736
Prepayments and accrued income
123,264
53,240
-
0
-
0
5,200,297
5,393,779
1,955,076
2,684,311
B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
-
80
-
0
-
0
Other borrowings
20
88,315
3,115
-
0
-
0
Trade creditors
4,440,367
2,114,640
-
0
-
0
Amounts owed to group undertakings
-
-
1,460,777
-
0
Corporation tax payable
710,995
618,759
-
0
-
0
Other taxation and social security
355,098
358,485
-
-
Other creditors
117,684
96,080
(150)
(150)
Accruals and deferred income
38,999
59,341
23,100
500
5,751,458
3,250,500
1,483,727
350
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
20
340,800
-
-
0
-
0
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank overdrafts
-
80
-
0
-
0
Other loans
429,115
3,115
-
0
-
0
429,115
3,195
-
-
Payable within one year
88,315
3,195
-
0
-
0
Payable after one year
340,800
-
-
0
-
0

Included in other loans is a loan from a related party which is repayable in monthly instalments. Interest is charged monthly, calculated at 5% over the offered Bank of England base rate. The loan will be fully repaid in 2028.

B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
21
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
409,611
236,800
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
380,797
211,779
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
236,800
211,779
Charge to profit or loss
172,811
169,018
Liability at 31 March 2024
409,611
380,797

The deferred tax liability set out above, relates to accelerated capital allowances which will release over the associated fixed assets useful economic life. Tax losses carried forward will be utilised against future profits.

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
513,233
83,768

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.

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
300
300
300
300

 

 

B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
24
Reserves
Profit and loss reserves

The profit and loss reserve holds the retained earnings of the company and group, after the deduction of any dividends paid in the period.

25
Operating lease commitments

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
360,000
360,000
-
-
Between two and five years
540,000
900,000
-
-
900,000
1,260,000
-
-
26
Events after the reporting date

Post year end the Group has undertaken a group restructure and a demerger.

 

As a result of the restructure, Baker & Coleman Solicitors Limited, is no longer part of the the B & C Holdings (NW) Limited group and has formed a group with Baker & Coleman Holdings Limited as its parent company.

 

B & C Holdings (NW) Limited and International Tissue Company Limited are now part of a Group which is headed up by International Tissue Holdings Limited as its parent company.

 

The demerger on 8th of May 2024 is classified as a non-adjusting event and therefore no adjustment is made in the financial statements.

27
Related party transactions
Transactions with related parties

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

Property Rent
2024
2023
£
£
Group
Other related parties
19,200
19,200

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Other related parties
426,000
-
B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
27
Related party transactions
(Continued)
- 29 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
1,586,546
2,593,216
Company
Other related parties
1,586,546
2,593,216
Other information

Amounts due from related parties are owed from companies which have shareholders in common. These amounts are interest free, with no security and are repayable on demand.

 

The company has taken advantage of the exemptions under FRS 102 Section 33 for related party transactions from disclosing transactions with other members of the group included within the consolidated financial statements.

28
Directors' transactions

Dividends totaling £105,000 (2023: £96,000) were paid in the year in respect of shares held by the company's directors.

 

As at the balance sheet date, the director was owed £113,385 (2023: £94,735) by the group.

29
Controlling party

At no point during the current or previous year did any single shareholder have control of the company.

B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
30
Cash generated from group operations
2024
2023
£
£
Profit after taxation
69,910
2,672,695
Adjustments for:
Taxation charged
884,598
774,488
Finance costs
7,054
-
Investment income
(57,062)
(10,669)
Depreciation and impairment of tangible fixed assets
412,431
122,647
Other gains and losses
1,643,917
-
Movements in working capital:
Increase in stocks
(339,478)
(168,004)
Decrease/(increase) in debtors
179,732
(3,306,196)
Increase in creditors
2,337,352
1,933,802
Cash generated from operations
5,138,454
2,018,763
31
Analysis of changes in net funds - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
2,840,940
1,683,007
4,523,947
Bank overdrafts
(80)
80
-
2,840,860
1,683,087
4,523,947
Borrowings excluding overdrafts
(3,115)
(426,000)
(429,115)
2,837,745
1,257,087
4,094,832
32
Prior period adjustment
Reconciliation of changes in equity - group
1 April
31 March
2022
2023
Notes
£
£
Adjustments to prior year
Reduction in dividends received
1
-
(525,957)
Equity as previously reported
3,938,278
7,040,930
Equity as adjusted
3,938,278
6,514,973
Analysis of the effect upon equity
Profit and loss reserves
-
(525,957)
B & C HOLDINGS (NW) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
32
Prior period adjustment
(Continued)
- 31 -
Reconciliation of changes in profit for the previous financial period
2023
Notes
£
Adjustments to prior year
Reduction in dividends received
1
(525,957)
Profit as previously reported
3,198,652
Profit as adjusted
2,672,695
Reconciliation of changes in equity - company
1 April
31 March
2022
2023
£
£
Adjustments to prior year
Reduction in dividends receivable
-
(525,957)
Equity as previously reported
3,389,252
5,200,468
Equity as adjusted
3,389,252
4,674,511
Analysis of the effect upon equity
Profit and loss reserves
-
(525,957)
Reconciliation of changes in profit for the previous financial period
2023
£
Adjustments to prior year
Reduction in dividends receivable
(525,957)
Profit as previously reported
1,907,216
Profit as adjusted
1,381,259
Notes to reconciliation
Dividends received

A dividend paid totalling £525,957 was originally recorded in the accounts for the year ended 31 March 2024.

 

This dividend paid was an error and the dividend was cancelled.

 

As such this has had the impact of increasing the company and group retained profit and net assets by £525,957.

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