Company registration number 11710294 (England and Wales)
BAGGA HOLDINGS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
BAGGA HOLDINGS LTD
COMPANY INFORMATION
Directors
Mr T Bagga
Mrs M L Bagga
Mr S Bagga
Company number
11710294
Registered office
5 Robin Hood Lane
Sutton
Surrey
SM1 2SW
Auditor
Xeinadin Audit Limited
5 Robin Hood Lane
Sutton
Surrey
SM1 2SW
BAGGA HOLDINGS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 32
BAGGA HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The directors present the strategic report for the year ended 31 October 2024.
Fair review of the business
During the financial year, the group has continued to build on its strategy of sustainable growth by investing in the launch of new categories and products. These initiatives have enabled us to strengthen our market presence, diversify our offering, and enhance our competitive position.
We also successfully expanded our reach by securing partnerships with new retailers and entering additional geographical markets. These efforts have not only broadened our distribution network but also allowed us to engage with a wider customer base.
In financial terms, we are pleased to report that our performance has been in line with our top and bottom-line projections. This consistency reflects the effectiveness of our operational focus and the resilience of our business model in a dynamic market environment.
In financial terms, we are pleased to report that we achieved our revenue target of £34.4 million and our performance has been in line with our top and bottom-line projections. Turnover for the year was £34.9m (2023: £33.7m), a 3.6% annual increase, along with an increase in operating profits. This consistency reflects the effectiveness of our operational focus and the resilience of our business model in a dynamic market.
At the year end, the group had net assets of £10.3m (2023: £9.8m).
Principal risks and uncertainties
The group operates in a challenging and evolving landscape where several risks and uncertainties could potentially impact our business. Our principal risks include:
1. Product Quality and Pricing Stability: Ensuring the delivery of high-quality products at stable pricing remains a critical area of focus. We continuously monitor our supply chain and production processes to mitigate risks associated with cost fluctuations and quality assurance.
2. Consumer Disposable Income: Changes in consumer spending habits due to economic pressures and reduced disposable income present a challenge. We remain vigilant in understanding market trends and consumer behaviour to adapt our offerings accordingly.
Development and performance
Looking ahead, the group remains committed to driving growth and innovation. Our development plans for the next financial year include:
Continuing to invest in the launch of new products and categories that meet the evolving needs of our customers.
Strengthening relationships with existing retail partners while also exploring opportunities to collaborate with new retailers.
Expanding into additional geographical markets to further diversify our revenue streams and reduce dependency on specific regions.
Through these initiatives, we aim to build on the foundations laid in the past year and maintain a trajectory of sustainable growth, while proactively managing risks and adapting to market dynamics.
The Board remains confident in the group’s ability to navigate the challenges ahead and deliver value to stakeholders.
BAGGA HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
Mr T Bagga
Director
9 May 2025
BAGGA HOLDINGS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 October 2024.
Principal activities
The principal activity of the group in the year under review was that of developing and importing homewares, small and major domestic appliance products under retailer and the company’s own brands.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £525,000. 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 T Bagga
Mrs M L Bagga
Mr S Bagga
Auditor
The auditor, Xeinadin Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 T Bagga
Director
9 May 2025
BAGGA HOLDINGS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
BAGGA HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BAGGA HOLDINGS LTD
- 5 -
Opinion
We have audited the financial statements of Bagga Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 2024 and of the group's 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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
BAGGA HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BAGGA HOLDINGS LTD
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to company, employment, taxation and financial reporting legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management, considering the internal controls in place and discussion amongst the engagement team. We determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure and management bias in accounting estimates.
In response to the risks identified we designed procedures which included, but were not limited to identifying and testing journal entries, evaluating the company’s internal controls and challenging significant accounting estimates such as valuation of stock.
There are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
BAGGA HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BAGGA HOLDINGS LTD
- 7 -
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.
Paul Newton FCA (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Limited, Statutory Auditor
Chartered Accountants
5 Robin Hood Lane
Sutton
Surrey
SM1 2SW
9 May 2025
BAGGA HOLDINGS LTD
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
34,949,224
33,684,808
Cost of sales
(26,858,338)
(26,842,143)
Gross profit
8,090,886
6,842,665
Distribution costs
(3,483,489)
(2,987,908)
Administrative expenses
(3,335,892)
(3,176,446)
Other operating income
267,075
215,283
Operating profit
4
1,538,580
893,594
Interest receivable and similar income
7
15,852
4,865
Interest payable and similar expenses
8
(122,862)
(107,154)
Profit before taxation
1,431,570
791,305
Tax on profit
9
(381,929)
(244,931)
Profit for the financial year
1,049,641
546,374
Profit for the financial year is all attributable to the owners of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BAGGA HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
£
£
Profit for the year
1,049,641
546,374
Other comprehensive income
-
-
Total comprehensive income for the year
1,049,641
546,374
Total comprehensive income for the year is all attributable to the owners of the parent company.
BAGGA HOLDINGS LTD
GROUP BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
212,500
262,500
Other intangible assets
11
382,113
459,769
Total intangible assets
594,613
722,269
Tangible assets
12
2,527,389
2,535,918
3,122,002
3,258,187
Current assets
Stocks
16
6,791,286
4,987,685
Debtors
17
8,849,900
9,199,209
Cash at bank and in hand
2,104,838
830,550
17,746,024
15,017,444
Creditors: amounts falling due within one year
18
(10,219,544)
(7,979,260)
Net current assets
7,526,480
7,038,184
Total assets less current liabilities
10,648,482
10,296,371
Creditors: amounts falling due after more than one year
19
-
(332,674)
Provisions for liabilities
Provisions
21
162,084
Deferred tax liability
22
137,925
139,865
(300,009)
(139,865)
Net assets
10,348,473
9,823,832
Capital and reserves
Called up share capital
24
25,000
25,000
Share premium account
6,575,000
6,575,000
Profit and loss reserves
3,748,473
3,223,832
Total equity
10,348,473
9,823,832
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 9 May 2025 and are signed on its behalf by:
09 May 2025
Mr T Bagga
Director
Company registration number 11710294 (England and Wales)
BAGGA HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
6,600,000
6,600,000
Total assets less current liabilities
6,600,000
6,600,000
Capital and reserves
Called up share capital
24
25,000
25,000
Share premium account
6,575,000
6,575,000
Total equity
6,600,000
6,600,000
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £525,000 (2023 - £0 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 9 May 2025 and are signed on its behalf by:
09 May 2025
Mr T Bagga
Director
Company registration number 11710294 (England and Wales)
BAGGA HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2022
25,000
6,575,000
2,677,458
9,277,458
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
546,374
546,374
Balance at 31 October 2023
25,000
6,575,000
3,223,832
9,823,832
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
1,049,641
1,049,641
Dividends
10
-
-
(525,000)
(525,000)
Balance at 31 October 2024
25,000
6,575,000
3,748,473
10,348,473
BAGGA HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2022
25,000
6,575,000
6,600,000
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
-
-
Balance at 31 October 2023
25,000
6,575,000
6,600,000
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
525,000
525,000
Dividends
10
-
-
(525,000)
(525,000)
Balance at 31 October 2024
25,000
6,575,000
6,600,000
BAGGA HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
27
1,437,211
(242,794)
Interest paid
(122,862)
(107,154)
Income taxes refunded/(paid)
66,139
(200,000)
Net cash inflow/(outflow) from operating activities
1,380,488
(549,948)
Investing activities
Purchase of intangible assets
(5,108)
-
Purchase of tangible fixed assets
(20,141)
(100,856)
Interest received
15,852
4,865
Net cash used in investing activities
(9,397)
(95,991)
Financing activities
Proceeds from new bank loans
2,076,893
1,758,058
Repayment of bank loans
(1,648,696)
(1,095,173)
Dividends paid to equity shareholders
(525,000)
Net cash (used in)/generated from financing activities
(96,803)
662,885
Net increase in cash and cash equivalents
1,274,288
16,946
Cash and cash equivalents at beginning of year
830,550
813,604
Cash and cash equivalents at end of year
2,104,838
830,550
BAGGA HOLDINGS LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
-
-
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 16 -
1
Accounting policies
Company information
Bagga Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 5 Robin Hood Lane, Sutton, Surrey, SM1 2SW.
The group consists of Bagga Holdings Ltd 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.
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.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Bagga Holdings Ltd 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 October 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
The group continues to adjust and be agile to changes in working culture and the wider business climate. At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
The turnover and profit before taxation is attributable to the one principal activity of the group.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
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:
Trade mark
10% on cost
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 18 -
1.8
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 machinery
10% on cost
Fixtures, fittings and equipment
15% on cost
Website
25% on cost
Motor vehicles
25% on cost
Freehold land is not depreciated. The residual value of the freehold buildings is such that depreciation is immaterial and therefore no depreciation has been recognised.
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.
1.9
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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 19 -
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.12
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.
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 20 -
1.13
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.
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.
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 21 -
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.
1.14
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.
1.15
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.
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 22 -
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.
1.16
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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.
1.17
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.19
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.20
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.
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Stock
Stock is valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and stock loss trends.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of homeware products to the retail trade
34,949,224
33,684,808
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
27,656,947
26,137,493
European Union
2,575,770
2,932,579
Rest of the World
4,716,507
4,614,736
34,949,224
33,684,808
2024
2023
£
£
Other significant revenue
Interest income
15,852
4,865
Royalty income
157,995
77,936
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Exchange losses
185,161
333,136
Depreciation of owned tangible fixed assets
28,670
24,290
Amortisation of intangible assets
132,764
132,253
Operating lease charges
180,744
136,352
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
Office and management
33
31
-
-
Warehouse and production
29
27
-
-
62
58
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,507,422
2,302,971
Social security costs
206,052
177,261
-
-
Pension costs
72,253
67,386
2,785,727
2,547,618
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
280,382
306,686
Company pension contributions to defined contribution schemes
25,864
25,561
306,246
332,247
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
6
Directors' remuneration
(Continued)
- 25 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
109,200
105,000
Company pension contributions to defined contribution schemes
21,276
21,150
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,257
4,865
Other interest income
12,595
-
Total income
15,852
4,865
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
3,257
4,865
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
122,862
107,154
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
383,869
196,633
Deferred tax
Origination and reversal of timing differences
(1,940)
126,324
Changes in tax rates
(78,026)
Total deferred tax
(1,940)
48,298
Total tax charge
381,929
244,931
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
9
Taxation
(Continued)
- 26 -
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
1,431,570
791,305
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
357,893
197,826
Tax effect of expenses that are not deductible in determining taxable profit
11,537
27,358
Effect of change in corporation tax rate
-
(21,675)
Permanent capital allowances in excess of depreciation
(1,941)
(19,376)
Amortisation on assets not qualifying for tax allowances
12,500
12,500
Deferred tax
1,940
48,298
Taxation charge
381,929
244,931
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
525,000
-
11
Intangible fixed assets
Group
Goodwill
Trade mark
Total
£
£
£
Cost
At 1 November 2023
500,000
822,533
1,322,533
Additions - separately acquired
5,108
5,108
At 31 October 2024
500,000
827,641
1,327,641
Amortisation and impairment
At 1 November 2023
237,500
362,764
600,264
Amortisation charged for the year
50,000
82,764
132,764
At 31 October 2024
287,500
445,528
733,028
Carrying amount
At 31 October 2024
212,500
382,113
594,613
At 31 October 2023
262,500
459,769
722,269
The company had no intangible fixed assets at 31 October 2024 or 31 October 2023.
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 27 -
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and machinery
Fixtures, fittings and equipment
Website
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 November 2023
2,400,000
67,180
154,954
38,566
98,475
2,759,175
Additions
237
19,904
20,141
At 31 October 2024
2,400,000
67,417
174,858
38,566
98,475
2,779,316
Depreciation and impairment
At 1 November 2023
33,135
81,445
38,402
70,275
223,257
Depreciation charged in the year
4,619
15,427
164
8,460
28,670
At 31 October 2024
37,754
96,872
38,566
78,735
251,927
Carrying amount
At 31 October 2024
2,400,000
29,663
77,986
19,740
2,527,389
At 31 October 2023
2,400,000
34,045
73,509
164
28,200
2,535,918
The company had no tangible fixed assets at 31 October 2024 or 31 October 2023.
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
6,600,000
6,600,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2023 and 31 October 2024
6,600,000
Carrying amount
At 31 October 2024
6,600,000
At 31 October 2023
6,600,000
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 28 -
14
Subsidiaries
Details of the company's subsidiaries at 31 October 2024 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Sabichi Homewares Ltd
1
Ordinary
100.00
-
Sabichi Ltd
1
Ordinary
0
100.00
Sabichi Homewares NI Ltd
2
Ordinary
0
100.00
Registered office addresses (all UK unless otherwise indicated):
1
5 Wadswordth Road, Perivale, Greenford, Middlesex, England, UB6 7JD
2
Unit 01 Strangford Park Ards Business Centre, Jubilee Rd, Newtownards, Northern Ireland BT23 4HY
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
8,678,873
9,030,448
-
-
Carrying amount of financial liabilities
Measured at amortised cost
8,406,292
7,768,075
-
-
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
6,791,286
4,987,685
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
8,258,252
8,231,144
Corporation tax recoverable
71,468
Other debtors
420,637
799,320
Prepayments and accrued income
171,011
97,277
8,849,900
9,199,209
-
-
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 29 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
6,760,536
5,999,665
Trade creditors
1,088,349
753,920
Corporation tax payable
378,540
Other taxation and social security
1,434,712
543,859
-
-
Other creditors
348,268
260,930
Accruals and deferred income
209,139
420,886
10,219,544
7,979,260
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
332,674
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
6,760,536
6,332,339
Payable within one year
6,760,536
5,999,665
Payable after one year
332,674
The company has a bank loan of £1.6m repayable over 5 years from October 2019 at an interest rate of 2.1% above the base rate. The loan matured during the year. The balance was carried forward to a new loan with a maturity date of October 2025 on the same terms.
The company also has a bank loan of £400,000 repayable over 5 years from June 2020 at an interest rate of 2.85% above base rate. This loan was fully repaid during the year.
The loans are secured by way of fixed and floating charges over the assets of the company.
21
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Warranty
162,084
-
-
-
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
21
Provisions for liabilities
(Continued)
- 30 -
Movements on provisions:
Warranty
Group
£
Additional provisions in the year
162,084
The warranty provision represents the cost of potential repair of goods or replacement of faulty goods or parts of goods under warranty. The warranty period of goods is between one and five years from date of sale.
22
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
30,977
32,917
Revaluations
106,948
106,948
137,925
139,865
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 November 2023
139,865
-
Credit to profit or loss
(1,940)
-
Liability at 31 October 2024
137,925
-
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
72,253
67,386
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.
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 31 -
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
ordinary shares of £1 each
25,000
25,000
25,000
25,000
25
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
38,215
13,203
-
-
Between two and five years
51,015
27,866
-
-
89,230
41,069
-
-
26
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties under common control:
Purchases
Purchases
2024
2023
£
£
Group
Sabichi Hong Kong Ltd
208,199
7,276
Licence charges
2024
2023
£
£
Group
Sabichi Business Centre Ltd
180,743
163,872
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Sabichi Business Centre Ltd
314,816
803,343
Sabichi Hong Kong Ltd
(41,550)
8,202
BAGGA HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 32 -
27
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,049,641
546,374
Adjustments for:
Taxation charged
381,929
160,466
Finance costs
122,862
25,560
Investment income
(15,852)
(4,865)
Amortisation and impairment of intangible assets
132,764
132,253
Depreciation and impairment of tangible fixed assets
28,670
24,290
Increase in provisions
162,084
Movements in working capital:
(Increase)/decrease in stocks
(1,803,601)
327,171
Decrease/(increase) in debtors
277,841
(447,927)
Increase in creditors
1,100,873
(139,734)
Cash generated from operations
1,437,211
623,588
28
Analysis of changes in net debt - group
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
830,550
1,274,288
2,104,838
Borrowings excluding overdrafts
(6,332,339)
(428,197)
(6,760,536)
(5,501,789)
846,091
(4,655,698)
2024-10-312023-11-01falsefalseCCH SoftwareCCH Accounts Production 2025.100Mr T BaggaMrs M L BaggaMr S 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