91 false false false false true false false false false false false true false false false false false false No description of principal activity 2023-12-01 Sage Accounts Production Advanced 2024 - FRS102_2024 1,101,595 2,068,160 125,000 125,000 799,035 47,297 751,738 xbrli:pure xbrli:shares iso4217:GBP 01978152 2023-12-01 2024-11-30 01978152 2024-11-30 01978152 2023-11-30 01978152 2022-12-01 2023-11-30 01978152 2023-11-30 01978152 2022-11-30 01978152 bus:RegisteredOffice 2023-12-01 2024-11-30 01978152 bus:OrdinaryShareClass1 2023-12-01 2024-11-30 01978152 bus:LeadAgentIfApplicable 2023-12-01 2024-11-30 01978152 bus:Director1 2023-12-01 2024-11-30 01978152 bus:Director2 2023-12-01 2024-11-30 01978152 bus:Director3 2023-12-01 2024-11-30 01978152 bus:Director4 2023-12-01 2024-11-30 01978152 bus:CompanySecretary1 2023-12-01 2024-11-30 01978152 core:WithinOneYear 2024-11-30 01978152 core:WithinOneYear 2023-11-30 01978152 core:LandBuildings 2023-11-30 01978152 core:PlantMachinery 2023-11-30 01978152 core:MotorVehicles 2023-11-30 01978152 core:LandBuildings 2024-11-30 01978152 core:PlantMachinery 2024-11-30 01978152 core:MotorVehicles 2024-11-30 01978152 core:DeferredTaxation 2023-12-01 2024-11-30 01978152 core:LandBuildings 2023-12-01 2024-11-30 01978152 core:PlantMachinery 2023-12-01 2024-11-30 01978152 core:MotorVehicles 2023-12-01 2024-11-30 01978152 core:UKTax 2023-12-01 2024-11-30 01978152 core:UKTax 2022-12-01 2023-11-30 01978152 core:RetainedEarningsAccumulatedLosses 2022-12-01 2023-11-30 01978152 bus:AllOrdinaryShares 2022-12-01 2023-11-30 01978152 core:RetainedEarningsAccumulatedLosses 2023-11-30 01978152 core:RetainedEarningsAccumulatedLosses 2022-11-30 01978152 core:RetainedEarningsAccumulatedLosses 2024-11-30 01978152 core:RetainedEarningsAccumulatedLosses 2023-11-30 01978152 core:ShareCapital 2024-11-30 01978152 core:ShareCapital 2023-11-30 01978152 core:CostValuation core:Non-currentFinancialInstruments 2024-11-30 01978152 core:Non-currentFinancialInstruments core:ProvisionsForImpairmentInvestments 2024-11-30 01978152 core:AcceleratedTaxDepreciationDeferredTax 2024-11-30 01978152 core:AcceleratedTaxDepreciationDeferredTax 2023-11-30 01978152 core:AfterOneYear 2024-11-30 01978152 core:AfterOneYear 2023-11-30 01978152 core:LandBuildings 2023-11-30 01978152 core:PlantMachinery 2023-11-30 01978152 core:MotorVehicles 2023-11-30 01978152 core:DeferredTaxation 2023-11-30 01978152 core:DeferredTaxation 2024-11-30 01978152 countries:UnitedKingdom 2023-12-01 2024-11-30 01978152 countries:UnitedKingdom 2022-12-01 2023-11-30 01978152 countries:RestWorldOutsideUK 2023-12-01 2024-11-30 01978152 countries:RestWorldOutsideUK 2022-12-01 2023-11-30 01978152 bus:LeadAgentIfApplicable 2022-12-01 2023-11-30 01978152 bus:HighestPaidDirector 2023-12-01 2024-11-30 01978152 bus:HighestPaidDirector 2022-12-01 2023-11-30 01978152 bus:MediumEntities 2023-12-01 2024-11-30 01978152 bus:Audited 2023-12-01 2024-11-30 01978152 bus:Medium-sizedCompaniesRegimeForAccounts 2023-12-01 2024-11-30 01978152 bus:PrivateLimitedCompanyLtd 2023-12-01 2024-11-30 01978152 bus:FullAccounts 2023-12-01 2024-11-30 01978152 bus:OrdinaryShareClass1 2024-11-30 01978152 bus:OrdinaryShareClass1 2023-11-30 01978152 core:LandBuildings core:LongLeaseholdAssets 2023-12-01 2024-11-30 01978152 core:LandBuildings core:ShortLeaseholdAssets 2023-12-01 2024-11-30 01978152 core:OtherPropertyPlantEquipment 2023-11-30 01978152 core:OtherPropertyPlantEquipment 2023-12-01 2024-11-30 01978152 core:OtherPropertyPlantEquipment 2024-11-30
COMPANY REGISTRATION NUMBER: 01978152
Bailey Trailers Limited
Financial Statements
For the year ended
30 November 2024
Bailey Trailers Limited
Financial Statements
Year ended 30 November 2024
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
4
Independent auditor's report to the members
6
Statement of income and retained earnings
11
Statement of financial position
12
Statement of cash flows
13
Notes to the financial statements
14
Bailey Trailers Limited
Officers and Professional Advisers
The board of directors
B T Bailey
D R Hoyes
R Bailey
M T Bailey
Company secretary
M Chessum
Registered office
Pride Parkway
Sleaford
Lincs
NG34 8GL
Auditor
Streets Audit LLP
Chartered Accountants & statutory auditor
Windsor House
A1 Business Park at
Long Bennington
Notts
NG23 5JR
Bankers
National Westminster Bank Plc
27-28 St Peters Hill
Grantham
Lincs
NG31 6QG
Bailey Trailers Limited
Strategic Report
Year ended 30 November 2024
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face. The company continues to manufacture trailers for resale. We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being gross margin and turnover. Turnover has decreased by 18% to £21.7m in the year. Gross profit percentage for the year was 17.6% (2023 - 19.9%). Our statement of financial position remains strong with reserves around £8.7m (2023 - £7.6m). As for many businesses of our size, the business environment in which we operate continues to be challenging however the company has a strong order book and results are continuing to strengthen since the year end. Credit risk The company seeks to manage its credit risk by dealing with established customers or otherwise checking the credit-worthiness of new customers, establishing clear contractual relationships with those customers and by identifying and addressing any credit issues arising in a timely manner. Interest rate risk The company's exposure to market risk for the changes in interest rates relates primarily to its finance lease borrowings. The company seeks to manage this risk by the use of a combination of variable and fixed rates. Liquidity risk The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. As for many businesses of our size, the business environment in which we operate continues to be challenging. We are not immune from the economic problems facing all businesses including the current cost of living crisis and war in Ukraine but we as directors believe the core business will not face a major downturn as a direct result of general conditions. Equally, although we exported over £2m of trailers in 2024, we do not believe we will be materially adversely affected by the current economic climate. Nevertheless with these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.
This report was approved by the board of directors on 22 April 2025 and signed on behalf of the board by:
B T Bailey
Director
Registered office:
Pride Parkway
Sleaford
Lincs
NG34 8GL
Bailey Trailers Limited
Directors' Report
Year ended 30 November 2024
The directors present their report and the financial statements of the company for the year ended 30 November 2024 .
Directors
The directors who served the company during the year were as follows:
B T Bailey
D R Hoyes
R Bailey
M T Bailey
Dividends paid during the year
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Disclosure of information in the strategic report
The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 judgments 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 22 April 2025 and signed on behalf of the board by:
B T Bailey
Director
Registered office:
Pride Parkway
Sleaford
Lincs
NG34 8GL
Bailey Trailers Limited
Independent Auditor's Report to the Members of Bailey Trailers Limited
Year ended 30 November 2024
Opinion
We have audited the financial statements of Bailey Trailers Limited (the 'company') for the year ended 30 November 2024 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 30 November 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
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.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company and sector in which it operates; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and health and safety legislation; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. 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 as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: - agreeing financial statement disclosures to underlying supporting documentation; - reading the minutes of meetings of those charged with governance; - inquiring of management as to actual and potential litigation and claims; and - reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to inquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Jonathan Day
(Senior Statutory Auditor)
For and on behalf of
Streets Audit LLP
Chartered Accountants & statutory auditor
Windsor House
A1 Business Park at
Long Bennington
Notts
NG23 5JR
15 May 2025
Bailey Trailers Limited
Statement of Income and Retained Earnings
Year ended 30 November 2024
2024
2023
Note
£
£
Turnover
4
21,682,499
26,510,884
Cost of sales
17,886,603
21,231,378
---------------
---------------
Gross profit
3,795,896
5,279,506
Distribution costs
248,362
327,061
Administrative expenses
2,522,940
2,422,786
-------------
-------------
Operating profit
5
1,024,594
2,529,659
Other interest receivable and similar income
9
34,608
18,925
Interest payable and similar expenses
10
12,674
16,608
-------------
-------------
Profit before taxation
1,046,528
2,531,976
Tax on profit
11
( 55,067)
463,816
-------------
-------------
Profit for the financial year and total comprehensive income
1,101,595
2,068,160
-------------
-------------
Dividends paid and payable
12
( 200,000)
Retained earnings at the start of the year
7,645,985
5,777,825
-------------
-------------
Retained earnings at the end of the year
8,747,580
7,645,985
-------------
-------------
All the activities of the company are from continuing operations.
Bailey Trailers Limited
Statement of Financial Position
30 November 2024
2024
2023
Note
£
£
£
Fixed assets
Tangible assets
13
3,820,836
3,615,967
Current assets
Stocks
15
1,425,674
2,248,700
Debtors
16
4,052,248
3,631,098
Cash at bank and in hand
3,111,411
2,342,366
-------------
-------------
8,589,333
8,222,164
Creditors: amounts falling due within one year
17
2,908,451
3,390,711
-------------
-------------
Net current assets
5,680,882
4,831,453
-------------
-------------
Total assets less current liabilities
9,501,718
8,447,420
Provisions
Taxation including deferred tax
19
751,738
799,035
-------------
-------------
Net assets
8,749,980
7,648,385
-------------
-------------
Capital and reserves
Called up share capital
22
2,400
2,400
Profit and loss account
23
8,747,580
7,645,985
-------------
-------------
Shareholders funds
8,749,980
7,648,385
-------------
-------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 22 April 2025 , and are signed on behalf of the board by:
B T Bailey
Director
Company registration number: 01978152
Bailey Trailers Limited
Statement of Cash Flows
Year ended 30 November 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
1,101,595
2,068,160
Adjustments for:
Depreciation of tangible assets
649,925
592,503
Other interest receivable and similar income
( 34,608)
( 18,925)
Interest payable and similar expenses
12,674
16,608
Gains on disposal of tangible assets
( 43,788)
( 155,954)
Tax on profit
( 55,067)
463,816
Accrued expenses
21,278
33,243
Changes in:
Stocks
823,026
( 206,350)
Trade and other debtors
( 421,150)
1,314,397
Trade and other creditors
( 216,866)
( 461,649)
-------------
-------------
Cash generated from operations
1,837,019
3,645,849
Interest paid
( 12,674)
( 16,608)
Interest received
34,608
18,925
Tax received/(paid)
7,770
( 333,945)
-------------
-------------
Net cash from operating activities
1,866,723
3,314,221
-------------
-------------
Cash flows from investing activities
Purchase of tangible assets
( 1,603,517)
( 927,948)
Proceeds from sale of tangible assets
792,511
480,411
-------------
-------------
Net cash used in investing activities
( 811,006)
( 447,537)
-------------
-------------
Cash flows from financing activities
Proceeds from borrowings
( 67,228)
59,209
Payments of finance lease liabilities
( 219,444)
( 316,667)
Dividends paid
( 200,000)
-------------
-------------
Net cash used in financing activities
( 286,672)
( 457,458)
-------------
-------------
Net increase in cash and cash equivalents
769,045
2,409,226
Cash and cash equivalents at beginning of year
2,342,366
(66,860)
-------------
-------------
Cash and cash equivalents at end of year
3,111,411
2,342,366
-------------
-------------
Bailey Trailers Limited
Notes to the Financial Statements
Year ended 30 November 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Pride Parkway, Sleaford, Lincs, NG34 8GL.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Research and development
The company carries out research and development activities in order to enhance its product range and to establish developments in technology that will enable it to design new products and processes within its core market.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The judgements (apart from those involving estimations) are those that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as disclosed in the accounting policies and notes to the financial statements. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as disclosed in the accounting policies and notes to the financial statements. 1 Depreciation charge The annual depreciation charge for each class of tangible fixed asset is based on an estimate of the useful economic life of the respective assets. This is reviewed periodically by the directors to ensure that they reflect both the external and internal factors. 2 Work in progress/amounts recoverable on contract Work in progress is included in the financial statements based on the percentage of completion of all stock items, being jobs which are not directly contracted for a customer, as at the year-end. All jobs for which a customer contract is in place, an amount recoverable on contract is calculated based on the percentage of completion plus a 20% profit margin included.
Revenue recognition
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all material timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Land and buildings
-
10% Straight Line
Other fixed assets
-
20% Straight Line
Plant & Machinery
-
10% - 20% Straight Line
Motor Vehicles
-
20% Straight Line
Equipment
-
20% Straight Line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Stocks
Stocks are valued at the lower of cost and net realisable value, on a first-in-first-out basis, after making due allowance for obsolete and slow moving items. Cost is based on purchase price.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
21,682,499
26,510,884
---------------
---------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024
2023
£
£
United Kingdom
19,528,450
23,449,484
Overseas
2,154,049
3,061,400
---------------
---------------
21,682,499
26,510,884
---------------
---------------
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
649,925
592,503
Gains on disposal of tangible assets
( 43,788)
( 155,954)
----------
----------
6. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
7,000
6,000
-------
-------
Fees payable to the company's auditor and its associates for other services:
Other non-audit services
2,997
5,539
-------
-------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
76
92
Distribution staff
2
5
Administrative staff
9
4
Management staff
4
4
----
----
91
105
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
4,132,727
4,663,007
Social security costs
459,880
520,712
Other pension costs
85,345
80,251
-------------
-------------
4,677,952
5,263,970
-------------
-------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
428,981
442,849
Company contributions to defined contribution pension plans
5,256
5,256
----------
----------
434,237
448,105
----------
----------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
2
2
----
----
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
148,158
159,697
----------
----------
9. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
34,608
18,925
---------
---------
10. Interest payable and similar expenses
2024
2023
£
£
Interest on obligations under finance leases and hire purchase contracts
12,674
16,608
---------
---------
11. Tax on profit
Major components of tax (income)/expense
2024
2023
£
£
Current tax:
UK current tax expense
97,930
333,945
Adjustments in respect of prior periods
( 105,700)
----------
----------
Total current tax
( 7,770)
333,945
----------
----------
Deferred tax:
Origination and reversal of timing differences
( 47,297)
129,871
---------
----------
Tax on profit
( 55,067)
463,816
---------
----------
Reconciliation of tax (income)/expense
The tax assessed on the profit on ordinary activities for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 23 %).
2024
2023
£
£
Profit on ordinary activities before taxation
1,046,528
2,531,976
-------------
-------------
Profit on ordinary activities by rate of tax
261,632
582,235
Adjustment to tax charge in respect of prior periods
( 105,700)
Effect of expenses not deductible for tax purposes
7,574
6,560
Effect of capital allowances and depreciation
( 114,220)
146,108
Utilisation of tax losses
( 145,396)
R&D tax claim
( 104,353)
( 125,673)
-------------
-------------
Tax on profit
( 55,067)
463,834
-------------
-------------
12. Dividends paid during the year
2024
2023
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
200,000
----
----------
13. Tangible assets
Land and buildings
Plant and machinery
Motor vehicles
Equipment
Total
£
£
£
£
£
Cost
At 1 December 2023
1,325,963
4,661,079
315,789
64,035
6,366,866
Additions
70,928
1,312,863
218,878
848
1,603,517
Disposals
( 1,091,457)
( 161,000)
( 1,252,457)
-------------
-------------
----------
---------
-------------
At 30 November 2024
1,396,891
4,882,485
373,667
64,883
6,717,926
-------------
-------------
----------
---------
-------------
Depreciation
At 1 December 2023
555,300
1,967,902
179,020
48,677
2,750,899
Charge for the year
112,720
463,249
69,828
4,128
649,925
Disposals
( 372,251)
( 131,483)
( 503,734)
-------------
-------------
----------
---------
-------------
At 30 November 2024
668,020
2,058,900
117,365
52,805
2,897,090
-------------
-------------
----------
---------
-------------
Carrying amount
At 30 November 2024
728,871
2,823,585
256,302
12,078
3,820,836
-------------
-------------
----------
---------
-------------
At 30 November 2023
770,663
2,693,177
136,769
15,358
3,615,967
-------------
-------------
----------
---------
-------------
Included within plant & machinery is £nil (2023 - £976,275) relating to assets held under hire purchase agreements.
Capital commitments
2024
2023
£
£
Contracted for but not provided for in the financial statements
634,100
----
----------
14. Investments
Other investments other than loans
£
Cost
At 1 December 2023 and 30 November 2024
125,000
----------
Impairment
At 1 December 2023 and 30 November 2024
125,000
----------
Carrying amount
At 30 November 2024
----------
At 30 November 2023
----------
The company has an investment in Helium Productions LLP.
15. Stocks
2024
2023
£
£
Raw materials and consumables
1,160,721
1,448,432
Work in progress
29,268
150,614
Finished goods and goods for resale
235,685
649,654
-------------
-------------
1,425,674
2,248,700
-------------
-------------
16. Debtors
2024
2023
£
£
Trade debtors
3,307,452
2,955,956
Prepayments and accrued income
97,792
97,792
Directors loan account
69,654
Other debtors
577,350
577,350
-------------
-------------
4,052,248
3,631,098
-------------
-------------
The debtors above include the following amounts falling due after more than one year:
2024
2023
£
£
Other debtors
121,195
121,195
----------
----------
17. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
2,112,963
1,959,204
Accruals and deferred income
274,464
253,186
Social security and other taxes
335,766
735,598
Obligations under finance leases and hire purchase contracts
219,444
Director loan accounts
67,228
Other creditors
185,258
156,051
-------------
-------------
2,908,451
3,390,711
-------------
-------------
Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.
18. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
227,258
Less: future finance charges
( 7,814)
----
----------
Present value of minimum lease payments
219,444
----
----------
19. Provisions
Deferred tax (note 20)
£
At 1 December 2023
799,035
Additions
( 47,297)
----------
At 30 November 2024
751,738
----------
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 19)
751,738
799,035
----------
----------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
751,738
799,035
----------
----------
21. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 80,089 (2023: £ 74,995 ).
22. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
2,400
2,400
2,400
2,400
-------
-------
-------
-------
23. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
24. Analysis of changes in net debt
At 1 Dec 2023
Cash flows
At 30 Nov 2024
£
£
£
Cash at bank and in hand
2,342,366
769,045
3,111,411
Debt due within one year
(286,672)
286,672
-------------
-------------
-------------
2,055,694
1,055,717
3,111,411
-------------
-------------
-------------
Bailey Trailers Limited
Notes to the Financial Statements (continued)
Year ended 30 November 2024
25. Directors' advances, credits and guarantees
During the year the directors operated a loan account with the company. The directors owed the company £69,654 (2023 - £67,228 owed to the directors) at the year end. The loan is repayable on demand and no interest is charged on the balance. During the year the directors repaid £99,701 and the company made advances of £236,582.
26. Related party transactions
During the year, the company paid rent to The Bailey Holdings Partnership (a partnership owned by two directors of the company and members of their close family) amounting to £288,000 (2023 - £288,000). No balance was outstanding at the year end. The company has loaned funds to the partnership amounting to £243,406 (2023 - £243,406). No interest was charged and the loan is repayable on demand. The company has loaned funds to Bailey Chessum Developments Limited amounting to £155,371 (2023 - £155,371). No interest was charged and the loan is repayable on demand.