Company registration number 09801842 (England and Wales)
BAKER ESTATES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
BAKER ESTATES LIMITED
COMPANY INFORMATION
Directors
Mr G P Fitzgerald (Chairman)
Mr I Baker (Managing Director)
Mr J S Dunningham
Mr H J Taylor
Company number
09801842
Registered office
Green Tree House
Silverhills Road
Decoy Industrial Estate
Newton Abbot
Devon
TQ12 5LZ
Auditor
Darnells Audit Limited
Quay House
Quay Road
Newton Abbot
Devon
TQ12 2BU
BAKER ESTATES LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 9
Statement of income and retained earnings
10
Balance sheet
11
Statement of cash flows
12
Notes to the financial statements
13 - 30
BAKER ESTATES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Business Review
The directors consider that the key financial performance indicators are Turnover, Gross margin, Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) and Net Assets. Together these demonstrate the financial performance and strength of the company. An overview of these indicators for both the current period and the prior year is given below:
2024
2023
£
£
Turnover
62,485,438
61,173,997
Gross profit
14,606,539
14,294,627
Gross margin
23.38%
23.37%
EBITDA
11,698,169
12,249,853
EBITDA margin
18.72%
20.02%
Net assets
51,628,417
46,680,987
The Company's turnover is up by £1.3 million on the sales achieved for 2023.
Even during this period of higher-than-normal interest rates the Company continues to grow through its medium-term plan.
The Company's gross profit margin has remained constant at 23.4% (23.4% in 2023). This is above the 22% aim set in the 2022 and 2023 strategic report.
Throughout the period of higher interest rates the Company will continue to aim to maintain the gross profit margin at a rate in excess of 22% going forward, despite continued economic uncertainty which faces the industry as a whole. The Company will continue to adapt and be flexible as the economic climate changes.
At the end of the year, the cumulative retained profit of the Company was £49.1m (2023: £44.2m) after payment of dividends of £Nil (2023: £285,871).
The Company has maintained a strong Balance Sheet position, with Net Current Assets of £64.0 million compared with £59.6 million at 31 December 2023. The overall increase has arisen from a concerted effort to improve all lines on the balance sheet.
In another difficult year the directors are more than satisfied with the company's results for the period and the continued strength of its balance sheet.
BAKER ESTATES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal Risks and Uncertainties
The day to day operations of the Company give rise to potential health and safety and environmental risks. The Directors provide internal audits, risk assessments, regular training for all staff and site personnel as well as ensuring an effective communication process to mitigate these risks. Reviews by external bodies also contribute to improvement in these areas.
The Company's principal risk is the market in which it operates and the ability to mitigate its inherent risks. The inherent risks associated with speculative development and in particular the recent impact of the general economy, are reviewed, monitored and controlled throughout the site process. However due to its nature there will always be a level of risk attributable to the ongoing operations.
Each site is dependent upon a number of factors as to whether the build is completed on budget and within the required timeframes. This starts from the planning process and there is a risk that when outline planning applications are made subsequent changes to these will have a detrimental impact on the deliverability of the site as a whole. Materials and subcontract labour shortages can have pressure on the whole of the supply chain leading to unplanned delays and potential financial loss. It is the company's policy to have at least two preferred suppliers for each type of material in order to minimise the risk of shortages due to one supplier being unable to provide these. Maintaining a rigorous approach to land acquisitions and budget monitoring enables the business to plan the individual sites in the most effective manner.
The Company is also reliant upon the bank and its directors for borrowing and therefore are subject to movements in interest rates, changes in interest rates are monitored and factored into forecasts. Regular reviews are undertaken by the bank and good working relationships are maintained.
Development and Performance
During the year the Company maintained its level of production and sales value, by adapting to the market changes. The business will continue to invest in people as the growth of the team has been a key factor to business success.
Customer satisfaction surveys have been high and driving commitment is providing the highest quality for new homes. The company continued with its flurry of NHBC "Pride in the Job" awards received in 2022 and 2023 by adding a further award in 2024 for the Dartmouth site.
Financial Instruments
The Company's principal financial instruments comprise of trade debtors and creditors, loans from Directors, together with bank and other loans.
Due to the nature of the financial instruments used by the Company, there is minimal exposure to price risk. Price risks are managed by insisting upon a lead time before any price increases are accepted by the company. The Company's approach to managing other risks applicable to the financial instruments concerned is shown below.
Liquidity risk is managed by the Directors' monitoring of rolling forecasts, maintaining a balance between available cash reserves and its undrawn bank loan facility at a floating rate of interest.
In respect of loans, these comprise loans from financial institutions. The interest rate on bank loans is variable and driven by SONIA rates which are subject to variation depending on economic forces. Repayments of capital are based on completed sales. The Company manages the liquidity risk by ensuring there are sufficient funds to meet the payments. Loans from Directors are unsecured and subject to interest at commercial rates.
Trade debtors are managed in respect of credit and cash flow risk by the implementation of policies that require appropriate checks on potential customers before any sales are made. The company has no significant concentration of credit risk due to the nature of the business.
Trade creditors risk is managed by ensuring that there are sufficient funds available to meet amounts as they fall due.
BAKER ESTATES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Other performance indicators
The Company monitors key performance indicators in relation to revenue, gross margin and overhead costs throughout the process including land acquisition to customer care post sale. Benchmarking is used to compare overall performance against competitors. Internal KPI's for the business are looked at on a site-by-site basis.
Section 172 Companies Act statement - Promoting the success of the company
Company's business relationships with suppliers, customers and others:
The directors recognise that building professional and co-operative relationships with third parties is integral to the company's operations. Communications with customers and suppliers tend to take place verbally on an ongoing basis through the staff in the company's head office. In addition, communications with customers are through sales teams located at each site, and with suppliers through staff at the site offices. Where there are significant changes to the company's operations, then communications are made both verbally and in writing to inform customers and suppliers of how changes may impact on their interactions with the business.
The impact of the company's operations on the community and the environment:
The company is committed to building a significant number of affordable homes, which can be purchased by local young people and families. In 2024 the company exceeded its target, and in 2025 will seek to expand the number of homes transferred to Housing Associations.
The company has a commitment to work with local subcontractors to build their developments, and sets aside land for employment generating uses. The company also offers apprenticeships and work experience for those in the community looking to start their career.
The company's reputation for high standards of business conduct:
The directors monitor the company's culture to ensure that high standards of business conduct are maintained. Open and constructive dialogue with employees and other key stakeholders is critical to inform the Board's decisions.
The directors monitor the company's performance in relation to health and safety on a regular basis.
The need to act fairly between members:
The directors have identified the shareholders as key stakeholders of the business, alongside the company's employees, customers, suppliers and the communities in which the sites are based. The directors operate within the long-term strategic direction set by the shareholders, and seek to achieve their long-term goals in the best interests of all the parties involved.
Mr I Baker (Managing Director)
Director
25 April 2025
BAKER ESTATES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of residential property development.
Results and dividends
The results for the year are set out on page 10.
The directors do not recommend payment of a final 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 G P Fitzgerald (Chairman)
Mr I Baker (Managing Director)
Mr J S Dunningham
Mr H J Taylor
Future developments
The year has commenced with a 25.3% in hand position with speculative homes, compared 24.8% in January 2024, a reasonable position to start 2025. This is still being impacted by wider economic factors, including the sustained higher interest base rate and low customer confidence. The Directors remain optimistic that selling prices will not fall significantly and that other new mortgage products will become available to buyers during the year. We continue to review and monitor our cost base, margins and resources to ensure that our operations are controlled for the forthcoming year, whilst maintaining the highest standards of quality and performance.
Auditor
Darnells Audit Limited were appointed as auditor to the company 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.
Energy and carbon report
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
2,372,155
2,064,588
BAKER ESTATES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
155.48
101.49
- Fuel consumed for owned transport
39.84
36.62
- Site plant - diesel
160.11
162.82
355.43
300.93
Scope 2 - indirect emissions
- Electricity purchased
71.55
63.33
Scope 3 - other indirect emissions
- Business travel in employee owned vehicles - petrol and diesel
78.78
90.28
Total gross emissions
505.76
454.54
2024
2023
Intensity ratio
Tonnes CO2e per turnover (£m)
8.09
7.43
Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate standard and have used the 2023 and 2024 UK Government GHG conversion factors for company reporting.
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £ Million of turnover.
Measures taken to improve energy efficiency
The company continues to take a number of measures to improve energy efficiency that include:
- focusing on energy efficiency and improvements to our activities;
- focusing on the awareness campaign, with an emphasis on the operational efficiency of plant;
- continuing to replace the company car fleet with hybrid and electric vehicles;
- expanding the number of electric car charging points at head office and on sites, to aim to reduce our emissions from business travel of the company car fleet and enable our customers to continue to reduce their emissions in the future.
-focusing on producing energy efficient new homes, with increased insulation, double glazing, ventilation, 100% energy saving bulbs. These new homes produce just a third of the annual carbon emissions produced by older properties.
BAKER ESTATES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
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 company and of the profit or loss of the company 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 financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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 company’s auditor 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 company’s auditor is aware of that information.
On behalf of the board
Mr I Baker (Managing Director)
Director
25 April 2025
BAKER ESTATES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BAKER ESTATES LIMITED
- 7 -
Opinion
We have audited the financial statements of Baker Estates Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, the balance sheet, the 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 company's affairs as at 31 December 2024 and of its profit 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 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our 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.
BAKER ESTATES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BAKER ESTATES LIMITED
- 8 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
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, or returns adequate for our audit have not been received from branches not visited by us; or
the 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 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 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The 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, misrepresentation or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with those charged with governance of the company and management.
We obtained an understanding of the legal and statutory frameworks that are applicable to the company, and determined that the most significant are NHBC standards, Building Regulations 2010 (as amended), the Health & Safety at Work Act 1974 and the Health & Safety Regulations 1992 & 1999 (as well as FRS 102, the Companies Act 2006 and relevant tax compliance regulations in the UK).
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by considering the controls that the company has established to both address risks identified by management and to prevent, deter and detect fraud in the areas of:
We evaluated the conditions in the context of incentives and/or pressure to commit fraud, considering the opportunity to commit fraud and the potential rationalisation of the fraudulent act.
BAKER ESTATES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BAKER ESTATES LIMITED
- 9 -
Based on this understanding, we designed our audit procedures to detect material misstatements in respect of irregularities, including fraud, and to identify non-compliance with the laws and regulations above, as follows:
Enquiry of management and those charged with governance around actual and potential litigation and claims.
Enquiry of management in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
Reviewing compliance with building, employment, environmental and health and safety legislation.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
We corroborated our enquiries through inspection of supporting documentation and records, as well as reviewing correspondence with regulatory bodies where available.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/library/standards-codes-policy/audit-assurance-and-ethics/auditors-responsibilities-for-the-audit/. 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.
Sean Murphy BA FCA (Senior Statutory Auditor)
For and on behalf of Darnells Audit Limited
2 May 2025
Statutory Auditor
Quay House
Quay Road
Newton Abbot
Devon
TQ12 2BU
BAKER ESTATES LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
62,485,438
61,173,997
Cost of sales
(47,878,899)
(46,879,370)
Gross profit
14,606,539
14,294,627
Administrative expenses
(2,981,269)
(2,116,470)
Operating profit
4
11,625,270
12,178,157
Interest receivable and similar income
99,501
363,223
Interest payable and similar expenses
8
(3,412,188)
(3,425,713)
Fair value (losses) / gains on investments
9
(1,379,390)
2,608,576
Profit before taxation
6,933,193
11,724,243
Tax on profit
10
(1,985,763)
(2,803,555)
Profit for the financial year
4,947,430
8,920,688
Retained earnings brought forward
44,180,977
35,546,160
Dividends
11
(285,871)
Retained earnings carried forward
49,128,407
44,180,977
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BAKER ESTATES LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
2
2
Tangible assets
13
141,730
197,908
Investments
14
10
8,196,478
141,742
8,394,388
Current assets
Stocks
17
92,915,224
77,790,932
Debtors
18
6,311,664
8,933,829
Investments
19
1,538,434
Cash at bank and in hand
3,166,622
5,307,219
103,931,944
92,031,980
Creditors: amounts falling due within one year
20
(39,950,968)
(32,411,177)
Net current assets
63,980,976
59,620,803
Total assets less current liabilities
64,122,718
68,015,191
Creditors: amounts falling due after more than one year
21
(8,549,026)
(16,110,015)
Provisions for liabilities
Provisions
23
3,919,396
4,382,683
Deferred tax liability
24
25,879
841,506
(3,945,275)
(5,224,189)
Net assets
51,628,417
46,680,987
Capital and reserves
Called up share capital
26
2,500,010
2,500,010
Profit and loss reserves
49,128,407
44,180,977
Total equity
51,628,417
46,680,987
The financial statements were approved by the board of directors and authorised for issue on 25 April 2025 and are signed on its behalf by:
Mr I Baker (Managing Director)
Director
Company registration number 09801842 (England and Wales)
BAKER ESTATES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
32
4,095,612
(631,242)
Interest paid
(3,412,188)
(3,425,713)
Income taxes paid
(2,673,001)
(2,440,406)
Net cash outflow from operating activities
(1,989,577)
(6,497,361)
Investing activities
Purchase of tangible fixed assets
(16,721)
(82,091)
Proceeds from disposal of investments
5,278,644
Interest received
99,501
77,352
Dividends received
285,871
Net cash generated from investing activities
5,361,424
281,132
Financing activities
(Repayment) / Increase of other borrowings
(560,989)
418,096
(Decrease) / Increase in revolving facility
(4,951,455)
3,279,611
Dividends paid
(285,871)
Net cash (used in)/generated from financing activities
(5,512,444)
3,411,836
Net decrease in cash and cash equivalents
(2,140,597)
(2,804,393)
Cash and cash equivalents at beginning of year
5,307,219
8,111,612
Cash and cash equivalents at end of year
3,166,622
5,307,219
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information
Baker Estates Limited is a private company limited by shares incorporated in England and Wales. The registered office is Green Tree House, Silverhills Road, Decoy Industrial Estate, Newton Abbot, Devon, TQ12 5LZ.
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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 405 of the Companies Act 2006 not to prepare consolidated accounts as all its subsidiary undertakings are dormant and not material in total. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
Turnover
Turnover is recognised when the significant risks and rewards of ownership have been transferred to the purchaser. Revenue comprises the fair value of the consideration received or receivable net of rebates, discounts and value added tax.
Revenue and profit are recognised on housebuilding and land sales as follows:
Revenue from private housing sales represents amounts receivable from the sale of properties. Properties are treated as sold and profit is recognised at the point control of the unit is passed to the customer, which has been determined as the point of legal completion. Profit is recognised on a site-by-site basis by reference to the expected result of each site.
Revenue from land sales is recognised on the unconditional exchange of contracts.
Contracting development sales for affordable housing are accounted for as construction contracts.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
33% straight line
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.5
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:
Leasehold land and buildings
Over the term of the lease
Plant and equipment
20% straight line
Fixtures and fittings
20% straight line
Computers
33% straight line
Motor vehicles
33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
Interests in listed investments are initially measured at cost plus any additional costs of purchase, and revaluated at the year end to current market price.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long-term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
Stocks
Stock and developments are valued at the lower of cost and net realisable value. Work in progress is valued at the lower of cost, including direct costs and directly attributable overheads, and net realisable value. On initial recognition, land is included within developments at its fair value, which is its cost to the company. Stock of land is recognised at the time a liability is recognised; either on unconditional exchange of contract or once the acquisition has completed.
Where a development is in progress net realisable value is assessed by considering the expected future revenues and total costs to complete the development, including direct costs and directly attributable overheads.
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.
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.8
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.
1.9
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include 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 company 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.
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
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 company 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 receipts 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 on normal terms are not interest bearing and are stated at their nominal value. Trade payables on extended terms, particularly in respect of land, are recorded at their fair value at the date of acquisition of the assets to which they relate and subsequently held at amortised cost. The discount to nominal value is amortised over the period of the credit term and charged to finance costs using the effective interest rate. Changes in estimates of the financial payment due are taken to the developments (land) and, in due course, to cost of sales in the profit and loss account.
Other financial liabilities
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 company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company 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 company.
1.11
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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 when the company has 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.
1.12
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
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.
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’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 estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Land held for development and housing work in progress
The Company holds work in progress which is stated at the lower of cost and net realisable value. To assess the net realisable value of land held of development and housing work in progress, the Company completes a financial appraisal of the likely revenue which will be generated for each site. Where the financial appraisal demonstrates that the revenue will exceed the costs of sale and other associated costs of constructing the residential properties, the work in progress is stated at cost. Where the assessed revenue is lower, the extent to which there is a shortfall is written off through the profit and loss statement leaving the stock and work in progress stated at realisable value.
Margin Recognition
The gross margin from revenue generated on each of the Company's individual sites within the year is recognised based on the latest forecast for the gross margin expected to be generated over the remaining life of the site. The remaining life gross margin is calculated using forecasts for selling prices and all land, build, infrastructure, and overhead costs associated with that site. There is an inherent uncertainty and sensitivity to external forces (predominately house prices, labour costs and construction costs) in these forecasts, which are reviewed regularly throughout the year by management.
3
Turnover and other revenue
All of the turnover arose within the United Kingdom.
2024
2023
£
£
Turnover analysed by class of business
Private house sales
49,998,083
46,268,590
Non spec construction
10,467,568
13,405,407
Other income
2,019,787
1,500,000
62,485,438
61,173,997
2024
2023
£
£
Other revenue
Interest income
99,501
77,352
Dividends received
-
285,871
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
72,899
71,696
Operating lease charges
136,272
142,836
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 company
26,000
22,500
For other services
Audit-related assurance services
2,500
2,275
Taxation compliance services
1,000
1,000
All other non-audit services
16,120
8,010
19,620
11,285
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
3
3
Administration
25
24
Sales
14
14
Construction/design/technical
34
34
76
75
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
4,847,150
3,932,476
Social security costs
477,268
438,314
Pension costs
446,678
379,597
5,771,096
4,750,387
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
805,061
416,000
Company pension contributions to defined contribution schemes
4,000
4,000
Reversal of unpaid directors bonuses accrued in prior year
(842,228)
809,061
(422,228)
The 2022 accounts were signed on 19 June 2022. Shortly afterwards on the grounds of economic prudence the directors decided to reduce the 2022 bonuses due and delay settlement. This was then adjusted for in the 2023 financial statements.
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
461,297
221,000
Company pension contributions to defined contribution schemes
4,000
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,898,010
2,058,919
Other interest on financial liabilities
439,001
418,096
2,337,011
2,477,015
Other finance costs:
Other interest
1,075,177
948,698
3,412,188
3,425,713
9
Fair value gains on investments
2024
2023
£
£
Fair value gains/(losses) on financial instruments
(Loss)/gain on financial assets held at fair value through profit or loss
(1,755,947)
2,608,576
Other gains/(losses)
Gain on disposal of fixed asset investments
376,557
(1,379,390)
2,608,576
The gains above relate to unrealised profit on the revaluation of the company's listed investments - see note 14 and note 19 to the financial statements.
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
2,779,058
1,986,415
Adjustments in respect of prior periods
22,332
160,870
Total current tax
2,801,390
2,147,285
Deferred tax
Origination and reversal of timing differences
(815,627)
656,270
Total tax charge
1,985,763
2,803,555
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
6,933,193
11,724,243
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
1,733,298
2,757,542
Tax effect of expenses that are not deductible in determining taxable profit
128,452
(189,516)
Tax effect of income not taxable in determining taxable profit
(67,237)
Gains not taxable
(8,461)
Adjustments in respect of prior years
22,332
160,870
Effect of change in corporation tax rate
46,662
Permanent capital allowances in excess of depreciation
392
(3,102)
Effective interest on amortised loans
109,750
98,336
Taxation charge for the year
1,985,763
2,803,555
11
Dividends
2024
2023
£
£
Interim paid
285,871
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
12
Intangible fixed assets
Software
£
Cost
At 1 January 2024 and 31 December 2024
8,028
Amortisation and impairment
At 1 January 2024 and 31 December 2024
8,026
Carrying amount
At 31 December 2024
2
At 31 December 2023
2
13
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2024
143,568
63,615
33,286
200,661
117,120
558,250
Additions
16,721
16,721
At 31 December 2024
143,568
63,615
33,286
217,382
117,120
574,971
Depreciation and impairment
At 1 January 2024
63,186
63,519
29,230
147,422
56,985
360,342
Depreciation charged in the year
11,962
65
1,474
26,100
33,298
72,899
At 31 December 2024
75,148
63,584
30,704
173,522
90,283
433,241
Carrying amount
At 31 December 2024
68,420
31
2,582
43,860
26,837
141,730
At 31 December 2023
80,382
96
4,056
53,239
60,135
197,908
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
15
10
10
Listed investments
8,196,468
10
8,196,478
Listed investments included above:
Market value if different from carrying amount
-
8,196,468
Potential tax liability if sold at market value
-
754,087
Fixed asset investments revalued
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2024
10
8,196,468
8,196,478
Additions
1,299,350
-
1,299,350
Disposals
-
(8,196,468)
(8,196,468)
At 31 December 2024
1,299,360
-
1,299,360
Impairment
At 1 January 2024
-
-
-
Impairment losses
1,299,350
-
1,299,350
At 31 December 2024
1,299,350
-
1,299,350
Carrying amount
At 31 December 2024
10
-
10
At 31 December 2023
10
8,196,468
8,196,478
15
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
15
Subsidiaries
(Continued)
- 24 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Viewvista Limited
England
Ordinary
100.00
-
Church View Kingsteignton Limited
England
Ordinary
100.00
-
SM16 Limited
England
Ordinary
0
100.00
Baker Estates Land Holdings (D1) Ltd
England
Ordinary
100.00
-
Baker Estates Land Holdings (D2) Ltd
England
Ordinary
100.00
-
Exeter Road Developments Ltd
England
Ordinary
100.00
-
SM16 Limited is wholly-owned by Viewvista Limited.
The subsidiary companies were dormant during the accounting year and the comparative year, apart from the new acquisition of Exeter Road Developments Limited that was active and dissolved in the year.
The registered offices of all of the subsidiary companies are the same as that of the company.
16
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Measured at undiscounted amount receivable
- Trade and other debtors
1,753,476
4,016,791
Equity instruments measured at cost less impairment
- Investment in subsidaries
10
10
Instruments measured at fair value through profit or loss
- Listed investments
-
8,196,468
Carrying amount of financial liabilities
Measured at amortised cost
- Loans payable (including deferred consideration for land acquisitions)
34,143,248
40,525,151
Measured at undiscounted amount payable
- Trade and other creditors
6,249,798
2,079,270
17
Stocks
2024
2023
£
£
Work in progress
92,915,224
77,790,932
See note 20 for details of securities given on land and development costs included within work in progress.
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
18
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,753,476
4,015,109
Other debtors
57,404
138,085
Prepayments and accrued income
4,500,784
4,780,635
6,311,664
8,933,829
Prepayments and accrued income above include an amount of £3,919,396 (2023: £4,382,683) for deferred expenditure relating to S106 Contributions, where the liability has been triggered, yet the milestones have not been reached.
19
Current asset investments
2024
2023
£
£
Listed investments
1,538,434
Listed investments included above:
Listed investments carrying amount
1,538,434
Listed fixed asset investments purchased in the year with a historical cost of £1,995,031 have been revalued to market value at the year end.
20
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
22
18,594,222
23,545,677
Other borrowings
22
7,000,000
Trade creditors
1,299,798
1,714,106
Corporation tax
1,084,390
956,001
Other taxation and social security
250,576
146,780
Other creditors
5,372,747
1,261,562
Accruals and deferred income
6,349,235
4,787,051
39,950,968
32,411,177
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
20
Creditors: amounts falling due within one year
(Continued)
- 26 -
The bank loans are secured by fixed charges over all present freehold; first fixed charge over book and other debt, both present and future; and first floating charge over all assets and undertaking both present and future.
Other borrowings include amounts due to the directors within 12 months £7m (2023: £Nil)
There is also an unlimited cross company guarantee given by Viewvista Limited, a dormant subsidiary company.
Included in Other creditors are short term liabilities for deferred consideration on land purchases of £4,950,000 (2023: £869,459). Deferred consideration is secured by fixed charges over the specific land registry numbers that they relate to.
21
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Other borrowings
22
8,549,026
16,110,015
Included in Creditors falling due after more than one year are:
Long term loans by the directors of £8,549,026 (2023: £16,110,015) which are unsecured and bear interest at 7% per annum.
22
Loans and overdrafts
2024
2023
£
£
Bank loans
18,594,222
23,545,677
Other loans
15,549,026
16,110,015
34,143,248
39,655,692
Payable within one year
25,594,222
23,545,677
Payable after one year
8,549,026
16,110,015
The bank loan is secured by fixed and floating charges over the company's assets. It represents a revolving facility, with interest charged on a daily basis at the sterling overnight index average (SONIA) plus 2.7%. (2023: 3.1%)
Other loans relate to amounts owed to the directors of the company.
23
Provisions for liabilities
2024
2023
£
£
S106 Planning Contributions
3,919,396
4,382,683
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
23
Provisions for liabilities
(Continued)
- 27 -
Movements on provisions:
S106 Planning Contributions
£
At 1 January 2024
4,382,683
Additional provisions in the year
2,070,456
Utilisation of provision
(2,533,743)
At 31 December 2024
3,919,396
The above provision includes the probable best estimate of S106 planning obligations that may fall due in the future.
24
Deferred taxation
The following deferred tax asset is recognised by the company and the movement thereon is as follows:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
25,879
39,286
Revaluations
-
802,220
25,879
841,506
2024
Movements in the year:
£
Liability at 1 January 2024
841,506
Transfer on disposal
(815,627)
Liability at 31 December 2024
25,879
The deferred tax liability set out above relates to accelerated capital allowances and deferred tax on revalued fixed asset investments that are expected to mature within the foreseeable future.
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
446,678
379,597
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
26
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
2,500,010
2,500,010
2,500,010
2,500,010
27
Non-distributable profits reserve
2024
2023
£
£
At the beginning of the year
1,219,975
1,638,071
Effective interest charge on basic loans
(439,001)
(418,096)
At the end of the year
780,974
1,219,975
The non distributable profit reserve has been created due to a basic loan being accounted for under the effective interest method. As the effective interest cost in the profit and loss account is being incurred an amount equal to this charge is being transferred out of the non distributable reserve on order to mitigate the notional cost in the accounts.
28
Financial commitments, guarantees and contingent liabilities
The company is party to planning obligations with local planning authorities that can include future estimated financial contributions to the local authority for infrastructure. Such obligations become a liability when S106 planning consent is signed and work has commenced, becoming payable at a future date when and if milestones have been achieved. These liabilities are fully allowed for in the costing projections for each site. As at 31 December 2024 the company has contracted potential future commitments of £3.3m (2023: £5.4m), where developments are unstarted, that are not provided for in the accounts, as either assets or liabilities.
29
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
111,989
118,686
Between two and five years
159,406
318,449
In over five years
11,250
271,395
448,385
30
Related party transactions
Remuneration of key management personnel
Advantage has been taken of the exemption from disclosing the remuneration of key management personnel on the grounds that they are the same as the directors.
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
30
Related party transactions
(Continued)
- 29 -
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
2024
2023
£
£
Other related parties
360,926
1,072,836
Purchase of services
2024
2023
£
£
Other related parties
20,000
140,927
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due to related parties
£
£
Other related parties
737,261
361,205
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Other related parties
108,340
46,458
Other information
Other related parties above represent companies in which one or more directors have an interest. The transactions were conducted under normal market conditions.
31
Directors' transactions
During the year interest arising on loans by the directors to the company totalled £1,028,954 (2023: £899,149).
BAKER ESTATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
32
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit after taxation
4,947,430
8,920,688
Adjustments for:
Taxation charged
1,985,763
2,803,555
Finance costs
3,412,188
3,425,713
Investment income
(99,501)
(363,223)
Depreciation and impairment of tangible fixed assets
72,899
71,696
Gain on sale of investments
(376,557)
-
Other (gains) and losses
1,755,947
(2,608,576)
(Decrease)/increase in provisions
(463,287)
4,382,683
Movements in working capital:
Increase in stocks
(15,124,292)
(11,568,504)
Decrease in debtors
2,622,165
2,019,280
Increase/(decrease) in creditors
5,362,857
(7,714,554)
Cash generated from/(absorbed by) operations
4,095,612
(631,242)
33
Analysis of changes in net debt
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
5,307,219
(2,140,597)
3,166,622
Borrowings excluding overdrafts
(39,655,692)
5,512,444
(34,143,248)
(34,348,473)
3,371,847
(30,976,626)
2024-12-312024-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100Mr G P Fitzgerald (Chairman)Mr I Baker (Managing Director)Mr J S DunninghamMr H J Taylor098018422024-01-012024-12-3109801842bus:Director12024-01-012024-12-3109801842bus:Director22024-01-012024-12-3109801842bus:Director32024-01-012024-12-3109801842bus:Director42024-01-012024-12-3109801842bus:RegisteredOffice2024-01-012024-12-31098018422024-12-31098018422023-01-012023-12-3109801842core:RetainedEarningsAccumulatedLosses2023-12-3109801842core:RetainedEarningsAccumulatedLosses2022-12-3109801842core:ShareCapital2024-12-3109801842core:ShareCapital2023-12-3109801842core:RetainedEarningsAccumulatedLosses2024-12-3109801842core:RetainedEarningsAccumulatedLosses2023-12-31098018422023-12-3109801842core:ShareCapitalOrdinaryShareClass12024-12-3109801842core:ShareCapitalOrdinaryShareClass12023-12-3109801842core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3109801842core:OtherResidualIntangibleAssets2024-12-3109801842core:OtherResidualIntangibleAssets2023-12-3109801842core:ComputerSoftware2024-12-3109801842core:ComputerSoftware2023-12-3109801842core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-12-3109801842core:PlantMachinery2024-12-3109801842core:FurnitureFittings2024-12-3109801842core:ComputerEquipment2024-12-3109801842core:MotorVehicles2024-12-3109801842core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3109801842core:PlantMachinery2023-12-3109801842core:FurnitureFittings2023-12-3109801842core:ComputerEquipment2023-12-3109801842core:MotorVehicles2023-12-3109801842core:Non-currentFinancialInstruments2023-12-3109801842core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-3109801842core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3109801842core:Non-currentFinancialInstrumentscore:AfterOneYear2024-12-3109801842core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3109801842core:CurrentFinancialInstruments2024-12-3109801842core:CurrentFinancialInstruments2023-12-310980184212024-01-012024-12-310980184212023-01-012023-12-31098018422023-12-31098018422022-12-3109801842core:IntangibleAssetsOtherThanGoodwill2024-01-012024-12-3109801842core:ComputerSoftware2024-01-012024-12-3109801842core:LandBuildingscore:LongLeaseholdAssets2024-01-012024-12-3109801842core:PlantMachinery2024-01-012024-12-3109801842core:FurnitureFittings2024-01-012024-12-3109801842core:ComputerEquipment2024-01-012024-12-3109801842core:MotorVehicles2024-01-012024-12-3109801842core:UKTax2024-01-012024-12-3109801842core:UKTax2023-01-012023-12-310980184222024-01-012024-12-310980184222023-01-012023-12-3109801842core:ComputerSoftware2023-12-3109801842core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3109801842core:PlantMachinery2023-12-3109801842core:FurnitureFittings2023-12-3109801842core:ComputerEquipment2023-12-3109801842core:MotorVehicles2023-12-3109801842core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-01-012024-12-3109801842core:Non-currentFinancialInstruments2024-12-3109801842core:Non-currentFinancialInstrumentscore:ListedExchangeTraded2024-12-3109801842core:Non-currentFinancialInstrumentscore:ListedExchangeTraded2023-12-3109801842core:CurrentFinancialInstrumentscore:UnlistedNon-exchangeTraded2024-12-3109801842core:CurrentFinancialInstrumentscore:UnlistedNon-exchangeTraded2023-12-3109801842core:CurrentFinancialInstrumentscore:ListedExchangeTraded2024-12-3109801842core:CurrentFinancialInstrumentscore:ListedExchangeTraded2023-12-3109801842core:Subsidiary12024-01-012024-12-3109801842core:Subsidiary22024-01-012024-12-3109801842core:Subsidiary32024-01-012024-12-3109801842core:Subsidiary42024-01-012024-12-3109801842core:Subsidiary52024-01-012024-12-3109801842core:Subsidiary62024-01-012024-12-3109801842core:Subsidiary112024-01-012024-12-3109801842core:Subsidiary222024-01-012024-12-3109801842core:Subsidiary332024-01-012024-12-3109801842core:Subsidiary442024-01-012024-12-3109801842core:Subsidiary552024-01-012024-12-3109801842core:Subsidiary662024-01-012024-12-3109801842bus:OrdinaryShareClass12024-01-012024-12-3109801842bus:OrdinaryShareClass12024-12-3109801842bus:OrdinaryShareClass12023-12-3109801842core:WithinOneYear2024-12-3109801842core:WithinOneYear2023-12-3109801842core:BetweenTwoFiveYears2024-12-3109801842core:BetweenTwoFiveYears2023-12-3109801842core:MoreThanFiveYears2024-12-3109801842core:MoreThanFiveYears2023-12-3109801842core:OtherRelatedPartiescore:SaleOrPurchaseGoods2024-01-012024-12-3109801842core:OtherRelatedPartiescore:SaleOrPurchaseGoods2023-01-012023-12-3109801842bus:PrivateLimitedCompanyLtd2024-01-012024-12-3109801842bus:FRS1022024-01-012024-12-3109801842bus:Audited2024-01-012024-12-3109801842bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP