Company registration number 01116854 (England and Wales)
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
COMPANY INFORMATION
Director
Mr S Baker
Secretary
Mr T Baker
Company number
01116854
Registered office
Unit A2 Hubert Road
Brentwood
Essex
CM14 4JE
Auditor
TC Audit Limited
Suite 501, The Nexus Building
Broadway
Letchworth Garden City
Hertfordshire
SG6 9BL
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

The director presents the strategic report for the year ended 31 August 2024.

Review of the business

Over the last 12 months we have continued to invest in equipment to ensure we remain a market leader in our industry. This investment has allowed us to maintain our gross margins at 37% and increase our sales by 5.85% in the year to 31 August 2024.

 

Having invested heavily in equipment in the current and previous years we were able to have a year of looking internally and spent more on training and wellbeing. As with machine investments, this will have a long term benefit to the company by ensuring we have a well trained, loyal and stable workforce. The average staff levels have increased from 111 to 114 and we have increased the number of apprentices from 2 to 3. More importantly we have increased the number of completed training objectives by over 60% ensuring we have better trained employees to secure the future quality and production levels required.

 

The new flexible packaging division increased in line with expectations and is now contributing to the business. During the year we have invested heavily with 2 large digital printing presses and 2 new pouchmakers. We are now well positioned to expand with this market.

Principal risks and uncertainties

Market Risks

Through diversification and increased investment, we feel we are well set to avoid any potential risks. Label and flexible packaging demand is increasing so there are no issue with market share.

 

Operational risks

All equipment, factory and office, is up to date and covered by external maintenance contracts to ensure minimal disruption. IT systems are robust, regularly checked and backed up offsite. Our modern building has full security and fire alarms.

 

Financial risks

The company has a strong balance sheet and excellent credit rating. Although the director monitors and manages the company's finances through robust financial reporting, he believes that the financial risks the company faces are very low. The company has very limited external finance and builds cash balances before making the investments it needs.

Future Developments

As in previous years the company will continue to invest in the latest equipment to remain a market leader in our field. We are looking to add extra services by developing new market areas.

 

On behalf of the board

Mr S Baker
Director
28 May 2025
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -

The director presents his annual report and financial statements for the year ended 31 August 2024.

Results and dividends

The results for the year are set out on page 7.

The total distribution of dividends for the year ended 31 August 2024 was £800 per share totalling £120,000 being the final distribution for the year.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr S Baker
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr S Baker
Director
28 May 2025
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the director is required to:

The director is 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. He is 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.

THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
- 4 -
Opinion

We have audited the financial statements of The Baker Self-Adhesive Label Company Limited (the 'company') for the year ended 31 August 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 director's 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 director 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 director is 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 BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED (CONTINUED)
- 5 -
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 director's 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

 

Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the revenue recognition, the application of period end cut off, the carrying of debtor balances and the reasonableness of key accounting estimates.

 

Audit procedures performed included: review of the financial statement disclosures to underlying supporting documentation, review of correspondence with and reports to the regulators, enquiries of management reasonableness checks, and testing of journals and evaluating whether there was evidence of bias by the Director that represented a risk of material misstatement due to fraud.

 

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

THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED (CONTINUED)
- 6 -

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.

James Price FCA
Senior Statutory Auditor
For and on behalf of TC Audit Limited
28 May 2025
Suite 501, The Nexus Building
Broadway
Letchworth Garden City
Hertfordshire
SG6 9BL
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2024
- 7 -
2024
2023
Notes
£
£
Turnover
2
15,956,998
15,075,371
Cost of sales
(10,027,090)
(9,463,209)
Gross profit
5,929,908
5,612,162
Administrative expenses
(2,748,702)
(2,373,539)
Other operating income
10,608
24,215
Operating profit
3
3,191,814
3,262,838
Interest receivable and similar income
238,170
102,260
Profit before taxation
3,429,984
3,365,098
Tax on profit
5
(889,287)
(524,737)
Profit for the financial year
2,540,697
2,840,361
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
2024
2023
£
£
Profit for the year
2,540,697
2,840,361
Other comprehensive income
-
-
Total comprehensive income for the year
2,540,697
2,840,361
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
7
1,173
1,722
Tangible assets
8
3,392,630
2,553,222
3,393,803
2,554,944
Current assets
Stocks
9
1,651,325
1,278,106
Debtors
10
3,842,768
3,201,395
Cash at bank and in hand
7,464,393
7,205,966
12,958,486
11,685,467
Creditors: amounts falling due within one year
11
(2,101,945)
(2,771,678)
Net current assets
10,856,541
8,913,789
Total assets less current liabilities
14,250,344
11,468,733
Provisions for liabilities
Deferred tax liability
12
615,428
254,514
(615,428)
(254,514)
Net assets
13,634,916
11,214,219
Capital and reserves
Called up share capital
13
150
150
Capital redemption reserve
350
350
Profit and loss reserves
14
13,634,416
11,213,719
Total equity
13,634,916
11,214,219

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

The financial statements were approved and signed by the director and authorised for issue on 28 May 2025
Mr S  Baker
Director
Company registration number 01116854 (England and Wales)
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2022
150
350
11,453,695
11,454,195
Year ended 31 August 2023:
Profit and total comprehensive income
-
-
2,840,361
2,840,361
Dividends
6
-
-
(3,080,337)
(3,080,337)
Balance at 31 August 2023
150
350
11,213,719
11,214,219
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
2,540,697
2,540,697
Dividends
6
-
-
(120,000)
(120,000)
Balance at 31 August 2024
150
350
13,634,416
13,634,916
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
3,414,332
4,857,827
Taxes paid
(376,286)
(732,413)
Net cash inflow from operating activities
3,038,046
4,125,414
Investing activities
Purchase of tangible fixed assets
(2,123,722)
(1,694,090)
Proceeds from disposal of tangible fixed assets
463,198
-
0
Interest received
238,170
102,260
Net cash used in investing activities
(1,422,354)
(1,591,830)
Financing activities
Dividends paid
(120,000)
(3,080,337)
Amount introduced by director
(1,237,265)
1,103,271
Net cash used in financing activities
(1,357,265)
(1,977,066)
Net increase in cash and cash equivalents
258,427
556,518
Cash and cash equivalents at beginning of year
7,205,966
6,649,448
Cash and cash equivalents at end of year
7,464,393
7,205,966
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
1
Accounting policies
Company information

The Baker Self-Adhesive Label Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit A2 Hubert Road, Brentwood, Essex, CM14 4JE.

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
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents invoiced sales of goods net of VAT and trade discounts. It is recognised at the point the goods are dispatched.

1.4
Trademarks

Trademarks are initially measured at cost. After initial recognition trademarks are measured at cost less any accumulated amortisation and any accumulated impairment loss.

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:

Trademarks
Amortised over 5 and 10 years
1.5
Tangible fixed assets

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

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

Leasehold land and buildings
20% on cost
Plant and equipment
33% and 20% on cost
Fixtures and fittings
33% on cost and 15% reducing balance
Motor vehicles
25% on reducing balance
1.6
Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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 company’s contractual obligations expire or are discharged or cancelled.

1.9
Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

 

Current or deferred taxation assets and liabilities are not discounted.

Current tax

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

THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.
1.11
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 leases asset are consumed.

1.12
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.

2
Turnover

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Label Printing
12,765,598
12,060,297
Raw Materials
3,191,400
3,015,074
15,956,998
15,075,371
2024
2023
£
£
Turnover analysed by geographical market
UK
15,266,613
14,405,216
Europe
509,425
373,922
Rest of the World
180,960
296,233
15,956,998
15,075,371
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
2
Turnover
(Continued)
- 16 -
2024
2023
£
£
Other revenue
Interest income
238,170
102,260
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(89)
670
Auditors' remuneration
10,841
8,750
Depreciation of owned tangible fixed assets
1,127,259
922,781
Profit on disposal of tangible fixed assets
(306,139)
-
Amortisation of intangible assets
549
549
Operating lease charges
334,321
214,753
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Director
1
1
Factory
94
89
Office
19
21
Total
114
111

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,620,908
3,610,462
Social security costs
350,188
346,091
Pension costs
95,937
96,245
4,067,033
4,052,798
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
4
Employees
(Continued)
- 17 -

The pensions paid during the year were paid into a defined contribution pension scheme.

 

        2024     2023

         £         £

Director's remuneration     8,464     8,464

 

The number of directors to whom retirement benefits were accruing was as follows:

 

Money purchase schemes          1 1

5
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
528,373
312,364
Deferred tax
Origination and reversal of timing differences
360,914
212,373
Total tax charge
889,287
524,737

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
3,429,984
3,365,098
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
857,496
724,169
Tax effect of expenses that are not deductible in determining taxable profit
(71,441)
769
Effect of change in corporation tax rate
(327)
15,415
Permanent capital allowances in excess of depreciation
(257,355)
(213,810)
Research and development tax credit
-
0
(214,179)
Deferred tax adjustments in respect of prior years
360,914
212,373
Taxation charge for the year
889,287
524,737
6
Dividends
2024
2023
£
£
Final paid
120,000
3,080,337
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -
7
Intangible fixed assets
Trademarks
£
Cost
At 1 September 2023 and 31 August 2024
6,462
Amortisation and impairment
At 1 September 2023
4,740
Amortisation charged for the year
549
At 31 August 2024
5,289
Carrying amount
At 31 August 2024
1,173
At 31 August 2023
1,722

More information on impairment movements in the year is given in note .

8
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 September 2023
1,670,453
8,270,569
612,832
149,115
10,702,969
Additions
227,075
1,777,951
74,862
43,833
2,123,721
Disposals
-
0
(1,392,280)
-
0
-
0
(1,392,280)
At 31 August 2024
1,897,528
8,656,240
687,694
192,948
11,434,410
Depreciation and impairment
At 1 September 2023
1,332,841
6,380,751
424,200
11,950
8,149,742
Depreciation charged in the year
138,581
872,964
71,378
44,336
1,127,259
Eliminated in respect of disposals
-
0
(1,235,221)
-
0
-
0
(1,235,221)
At 31 August 2024
1,471,422
6,018,494
495,578
56,286
8,041,780
Carrying amount
At 31 August 2024
426,106
2,637,746
192,116
136,662
3,392,630
At 31 August 2023
337,612
1,889,813
188,632
137,165
2,553,222
9
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,651,325
1,278,106
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,962,888
2,824,081
Corporation tax recoverable
-
0
112,472
Other debtors
25,722
2,197
Prepayments and accrued income
854,158
262,645
3,842,768
3,201,395
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,117,653
727,491
Corporation tax
39,615
-
0
Other taxation and social security
244,439
146,622
Other creditors
460,821
1,699,984
Accruals and deferred income
239,417
197,581
2,101,945
2,771,678
12
Provisions for liabilities
2024
2023
£
£
Deferred tax liabilities
615,428
254,514

 

 

 

£

Balance at 1 September 2023

 

 

254,514

Accelerated capital allowances

 

 

360,914

Balance at 31 August 2024

 

 

615,428

 

 

 

 

13
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
150
150
150
150
THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
14
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
11,213,719
11,453,695
Adjusted balance
11,213,719
11,453,695
Profit for the year
2,540,697
2,840,361
Dividends declared and paid in the year
(120,000)
(3,080,337)
At the end of the year
13,634,416
11,213,719
15
Capital and other commitments
As lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within 1 year
320,947
194,888
Years 2-5
1,162,575
261,562
After 5 years
1,181,228
-
0
2,664,750
456,450
At the year end, the company had some commitents totalling £839,336 for future capital expenditure not provided in the financial statements in relation to purchase of fixed assets.
16
Related party transactions

As at 31 August 2024 the company owed Mr S R Baker, the director, £460,821 (2023: £1,698,086). This is an interest free loan repayable on demand.

 

Mr S R Baker is the sole beneficiary of a SIPP. The SIPP owns a 66% share of the company's business premises. The other 34% is owned by Mrs A Baker. During the year the company paid rent to the SIPP of £104,983 (2023: £94,667) and to Mrs A Baker of £54,082 (2023: £47,333).

 

The remuneration of key management personnel, which includes the director and non-directors, was £361,885 (2023: £379,621). Under FRS102 section 33.6, key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director of the entity.

17
Ultimate controlling party

Mr S R Baker controls the company as he is the sole director and shareholder of the company.

THE BAKER SELF-ADHESIVE LABEL COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
18
Cash generated from operations
2024
2023
£
£
Profit after taxation
2,540,697
2,840,361
Adjustments for:
Taxation charged
889,287
524,738
Investment income
(238,170)
(102,260)
Gain on disposal of tangible fixed assets
(306,139)
-
Amortisation and impairment of intangible assets
549
549
Depreciation and impairment of tangible fixed assets
1,127,259
922,781
Movements in working capital:
(Increase)/decrease in stocks
(373,219)
95,728
(Increase)/decrease in debtors
(753,847)
981,512
Increase/(decrease) in creditors
527,915
(405,582)
Cash generated from operations
3,414,332
4,857,827
19
Analysis of changes in net funds
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
7,205,966
258,427
7,464,393
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