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Registered number: 05708493









Baker Perkins Limited









Annual Report and Financial Statements

For the Year Ended 30 September 2024

 
Baker Perkins Limited
 
 
Company Information


Directors
M Thomson 
P Clarke (appointed 3 February 2025)




Registered number
05708493



Registered office
Manor Drive
Paston Parkway

Peterborough

PE4 7AP




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

3 Stockport Exchange

Stockport

SK1 3GG





 
Baker Perkins Limited
 

Contents



Page
Strategic Report
 
1 - 4
Directors' Report
 
5 - 7
Independent Auditors' Report
 
8 - 11
Statement of Comprehensive Income
 
12
Balance Sheet
 
13
Statement of Changes in Equity
 
14
Notes to the Financial Statements
 
15 - 41


 
Baker Perkins Limited
 
 
Strategic Report
For the Year Ended 30 September 2024

Introduction
 
The directors present the strategic report for the year ended 30 September 2024.  The previous accounting period covers the 9 months ended 30 September 2023. The results are therefore not wholly comparable with those of the prior year.
The principal activity of the Company continued to be the engineering, manufacturing and installation of equipment, principally for the dry foods industry. The Company operates in a global market.

Business review
 
Company turnover for the period ended was £38.3m (9 months to Sept 23: £28.1m), which when apportioning the previous periods revenue to 12 months represents a 2% increase year on year largely due to improved performance in Aftermarket sales.
The company has an operating loss for the period ended of £5.0m (
9 months to Sept 23: loss of £5.2m) representing an improvement year on year when approprtioning the previous periods loss to 12 months by 38%. This has been driven in part by an increase in gross margin from 23.2% to 30.8%. The company works to mitigate risk on costs through various strategies and have put into place enhanced bidding and procurement initiatives.
The company continues with ongoing investment in targeted marketing and development costs to support the business. 2024-25 has a positive outlook with a strong orderbook (backlog) and sales forecast.
Following the acquisition of the Group within which the company resides by Hillenbrand Inc, the company's investment in Baker Perkins Inc, a company incorporated in the United States of America, was sold to a fellow Group company, recording a profit of £19.6m which was shown in the Statement of Comprehensive Income in the 9 month period to September 2023. 
The statement of financial position demonstrates that the company's position continues to be robust in terms of net current assets of £21.6m (
2023: £24.2m) and a current ratio of 2.85 (2023: 2.63).

Page 1

 
Baker Perkins Limited
 

Strategic Report (continued)
For the Period Ended 30 September 2024

Principal risks and uncertainties
 
The company operates in a changing and competitive market place where continuing global competitiveness is dependent on maintaining existing customer relationships and developing our supply chain. The company is confident that it can achieve these objectives and minimise the risk of falling short of its targets by providing outstanding quality of service to its customers at competitive prices, whilst improving efficiency. 
A number of the risks and uncertainties that are faced by the company are set out below. 
Product Safety 
Product safety is a potential risk given the type of equipment we produce. The direct financial expense of product safety failures is limited by our product liability insurance and the indirect costs are mitigated by careful selection of raw materials and suppliers, extensive product testing and monitoring of end-customer product satisfaction. 
Technological advancement 
Obsolescence as a result of technological advances is also considered to be a risk given the type of industry we operate in. This is mitigated by a strategic focus and investment in research and development to ensure our products meet the high standards of innovation, productivity and safety that we have set ourselves. 
Workforce 
Like any other similar business, retaining a suitable skilled workforce is also a challenge faced by our business. We also have policies and procedures to ensure qualified and appropriate staff are hired and maintained. Staff are encouraged to fully contribute to the business as the directors recognise that the future success of the business depends on the retention and dedication of key employees, Targeted remuneration packages which the directors consider to be attractive by industry standards are offered to mitigate the risk and encourage development. 
Supply Chain 
The Russia-Ukraine conflict has had an impact on our supply chain causing delays in order completion and increased cost in the medium term. Risk has been mitigated where possible by utilising alternative supply routes in the interim but whilst the conflict continues the risk to our supply chain remains a factor.

Financial and other key performance indicators
 
Turnover and profitability are key performance indicators. These KPI's continue to be monitored and have been detalled in the paragraphs above. 
The company also uses non-financial KPI's as part of its overall assessment strategy. This includes measures such as on-time delivery performance in both our capital and aftermarket sectors, which were in line with the prior year. 
Cost of poor quality is measured, in terms of complaints received and corrective action costs. Within the year, complaints are similar to last year, and warranty costs continue to be a focus. 
Customer services' profit margins have continued at the previous consistent levels. 
We continue to focus on our safety regime and monitor the number of incidents in each period, incident trends and the length of time since the last RIDDOR reportable injury occurred. One RIDDOR (Reporting of Incidents, Diseases and Dangerous Occurrences Regulations 2013) accident occurred this period compared to one in the previous year. 
Furthermore, Baker Perkins Limited once again retained its ISO9001 quality standard.

Page 2

 
Baker Perkins Limited
 

Strategic Report (continued)
For the Period Ended 30 September 2024

Directors' statement of compliance with duty to promote the success of the Company
 
Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would most likely promote the success of the Company for the benefit of its members as a whole. In doing this section 172 requires a director to have regard, amongst other matters, to the: 
 - Likely consequences of any decisions in the long term; 
 - Interest of the Company's employees; 
 - Need to foster the Company's business relationships with suppliers, customers and others; 
 - Impact of the Company's operations on the community and environment;
 - Desirability of the Company maintaining a reputation for high standards of business conduct; and 
 - Need to act fairly as between members of the Company. 
In discharging our section 172 duties we have regard to the matters set out above.
The s172 Director's Duty is to 'promote the success of the Company for the benefit of its members as a whole', whilst having regard to other stakeholders interest. The Duty emphasises that the Board must consider the wider impact of their decision, rather than just the financial and strategic elements. The Board should create a culture whereby the long-term consequences of its actions and the long-term success of the Company are given due consideration. These pages and references in the Strategic report show how the Board has applied s172 requirements to its decision making throughout the year. 
The directors take care to consider the interest of all stakeholders when deciding on courses of action, but also recognise that the result will not always be a positive one for all stakeholder groups. The directors take into consideration the strategy, purpose, values and culture of the business when making decisions. 
At every meeting, the directors and executive team receive reports on matters including safety and security performance, financial and operational performance, sales and marketing and new business developments. Over the course of the financial year, the director also review other matters including the Company's business strategy, key risks, stakeholder-related matters and governance, compliance and legal matters. 
Employees 
We define employees as the combination of employees and those contractors who work for us for periods in excess of 3 months per year. The Company's long-term success is predicted on the commitment of our workforce to our purpose and its demonstration of our values on a daily basis.
We engage with our workforce to ensure that we are fostering an environment that they are happy to work in and that best supports their well-being. We Invest significantly in our workforce as we believe that maintaining low staff turnover rates across the entire workforce is the source of our industry-leading efficiency and productivity rates. 
Suppliers 
We have a large supplier base from international to local independent family run businesses. Our suppliers are fundamental to the quality of our products and to ensuring that as a business we meet the high standards of conduct that we set ourselves. We have various communication channels open to suppliers and pride ourselves in targeting 'to terms' payment. 
Customers 
Engaging with our customers helps us to understand their needs and identify opportunities and challenges. Collaborating with our customers enables us to use our expertise to Improve the safety and efficiency of their manufacturing processes, enhance their end-product quality and reduce their costs. Senior-level dialogue is maintained with all key customers, including visits to customer sites.
Community 
We are committed to maintaining positive relationships with the communities in which we operate. Our social responsibility activities complement our values and we encourage our employees to engage with communities and groups local to our operations, We encourage participation with local volunteering initiatives and support many local charities through sponsorship/ donation. 
 
Page 3

 
Baker Perkins Limited
 

Strategic Report (continued)
For the Period Ended 30 September 2024


Environment 
Good environmental management is aligned with our focus on cost optimisation excellence. We engage with appropriate organisations to ensure that we are complying with regulatory requirements. 
Shareholders 
Management reporting information is provided on a regular basis.


This report was approved by the board and signed on its behalf.



P Clarke
Director

Date: 24 June 2025

Page 4

 
Baker Perkins Limited
 
 
 
Directors' Report
For the Period Ended 30 September 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The loss for the period, after taxation, amounted to £4,323,733 (2023 - profit £12,846,280).

No dividends (2023: £Nil) were paid during the year.
The directors do not recommend payment of a final dividend.

Directors

The directors who served during the period were:

D J Spooner (resigned 30 November 2024)
M Thomson 

Future developments

The company continues to invest in equipment and its people to enhance its position as a market leader.

Page 5

 
Baker Perkins Limited
 
 
 
Directors' Report (continued)
For the Period Ended 30 September 2024

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion if disabled persons should, as far as possible be identical to that of other employees.

Engagement with employees

We have an Employee Consultation Group that meets on a monthly basis. 
Staff receive an online Weekly Team Brief updating them on current events, and linked to this there is an online communications channel.
Further to this, there are regular discussion forums held alongside the trade union that represents our factory workforce.

Engagement with suppliers, customers and others

Engagement with suppliers, customers and others is covered in the Strategic Report under the section "Directors statement of compliance with duty to promote the success of the company."
Qualifiying third party indemnity provisions
The company has in place qualifying third party indemnity provisions for the benefit of its directors.

Greenhouse gas emissions, energy consumption and energy efficiency action

The Company's greenhouse gas emissions and energy consumption are as follows: 


30 September
9 months ended
30 September
2024
2023

Emissions resulting from activities for which the Company is responsible involving the combustion of gas or consumption of fuel for the purposes of transport (in tonnes of CO2 equivalent)
1470
1090

Emissions resulting from the purchase of the electricity by the Company for its own use, including the purposes of transport (in tonnes of CO2 equivalent)
945
729

Energy consumed from activities for which the Company is responsible involving the combustion of gas, or the consumption of fuel for the purposes of transport, and the annual quantity of energy consumed resulting from the purchase of electricity by the Company for its own use, including for the purposes of transport, in MWh
6915
5833

Carbon emissions have been calculated in accordance with the Greenhouse Gas (GHG) protocol. Management have used the relevant government conversion factors to calculate the relevant figures.

Management have elected to disclose tonnes of CO2e per £m of turnover as its intensity ratio. In 2024 this was 38.362 (2023: 38.833).

Page 6

 
Baker Perkins Limited
 
 
 
Directors' Report (continued)
For the Period Ended 30 September 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Going concern and post balance sheet events

The company has made an operating loss in the year of £5.0 million (9 months ended 30 September 2024: £5.2 million) but retains strong current net assets of £21.6 million (2023: £24.2 million).
The directors have prepared budgets indicating that operating losses will significantly reduce in the year ending 30 September 2025. With a strong order book and substantial capital investment in the business, the company expects to return to profitability in the following year.
The company's ultimate parent, Hillenbrand Inc, has confirmed it intends to provide support wherever necessary to ensure that the company will continue to be able to pay all debts as they fall due for a period not less than 12 months from the date of approval of these financial statements.
As a result of the above, the directors have deemed it appropriate to prepare the financial statements on a going concern basis.
There have been no post balance sheet events affecting the company since the year end.

Auditors

The auditorsHurst Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





P Clarke
Director

Date: 24 June 2025

Page 7

 
Baker Perkins Limited
 
 
 
Independent Auditors' Report to the Members of Baker Perkins Limited
 

Opinion


We have audited the financial statements of Baker Perkins Limited (the 'Company') for the period ended 30 September 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (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 September 2024 and of its loss for the period 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.


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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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 Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 8

 
Baker Perkins Limited
 
 
 
Independent Auditors' Report to the Members of Baker Perkins Limited (continued)


Opinion 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 period 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 set out on page 5, 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.


Page 9

 
Baker Perkins Limited
 
 
 
Independent Auditors' Report to the Members of Baker Perkins Limited (continued)


Auditors' 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 Auditors' 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:

Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
 
The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. 
Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, and Anti-bribery and Corruption.

Audit response to risks identified
Our procedures to respond to the risks identified included the following:

Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
Enquiring of management about any actual and potential litigation and claims.
Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.







Page 10

 
Baker Perkins Limited
 
 
 
Independent Auditors' Report to the Members of Baker Perkins Limited (continued)


We have also considered the risk of fraud through management override of controls by:

Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  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 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 Auditors' 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 2006Our 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 Auditors' 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.





Anthony Woodings (Senior Statutory Auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Stockport
SK1 3GG

24 June 2025
Page 11

 
Baker Perkins Limited
 
 
Statement of Comprehensive Income
For the Period Ended 30 September 2024

30 September
9 months ended
30 September
2024
2023
Note
£
£

  

Revenue
 4 
38,323,467
28,069,237

Cost of sales
  
(26,512,812)
(21,560,575)

Gross profit
  
11,810,655
6,508,662

Administrative expenses
  
(16,839,086)
(12,372,023)

Other operating income
 5 
-
662,798

Operating loss
 6 
(5,028,431)
(5,200,563)

Profit on disposal of investments
 15 
-
19,647,582

Investment income
 10 
914,374
3,894

Finance costs
 11 
(320,805)
(724,209)

(Loss)/profit before tax
  
(4,434,862)
13,726,704

Tax on (loss)/profit
 12 
111,129
(880,424)

(Loss)/profit for the financial period
  
(4,323,733)
12,846,280

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 15 to 41 form part of these financial statements.

Page 12

 
Baker Perkins Limited
Registered number: 05708493

Statement of Financial Position
As at 30 September 2024

2024
2023
Note
£
£

  

Non-current assets
  

Intangible assets
 13 
135,932
244,679

Property, plant and equipment
 14 
8,847,268
9,093,748

Investments
 15 
86,362
86,362

  
9,069,562
9,424,789

Current assets
  

Inventories
 16 
4,201,029
4,520,038

Trade and other receivables
 17 
7,492,865
35,323,008

Cash and cash equivalents
 18 
21,614,105
3,081,078

  
33,307,999
42,924,124

Current liabilities
 19 
(11,926,046)
(18,713,289)

Net current assets
  
 
 
21,381,953
 
 
24,210,835

Total assets less current liabilities
  
30,451,515
33,635,624

  

Non-current liabilities
  
(4,537,029)
(5,404,501)

  
25,914,486
28,231,123

Provisions for liabilities
  

Deferred taxation
 23 
(450,432)
(561,561)

Other provisions
 24 
(5,710,394)
(3,592,169)

  
 
 
(6,160,826)
 
 
(4,153,730)

  

Net assets
  
19,753,660
24,077,393


Equity
  

Called up share capital 
 25 
1,000,000
1,000,000

Profit and loss account
 26 
18,753,660
23,077,393

  
19,753,660
24,077,393


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 

P Clarke
Director

Date: 24 June 2025

The notes on pages 15 to 41 form part of these financial statements.

Page 13

 
Baker Perkins Limited
 

Statement of Changes in Equity
For the Year Ended 30 September 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2023
1,000,000
10,231,113
11,231,113


Comprehensive income for the period

Profit for the period
-
12,846,280
12,846,280



At 1 October 2023
1,000,000
23,077,393
24,077,393


Comprehensive deficit for the period

Loss for the year
-
(4,323,733)
(4,323,733)


At 30 September 2024
1,000,000
18,753,660
19,753,660


The notes on pages 15 to 41 form part of these financial statements.

Page 14

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

1.


General information

Baker Perkins Limited is a private company limited by shares incorporated in England and Wales. The registered office is Manor Drive, Paston Parkway, Peterborough, PE4 7AP. The principal activity of the Company continued to be the engineering, manufacturing and installation of equipment, principally for the dry foods industry.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework'  and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 101 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of IFRS 7 Financial Instruments: Disclosures
the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers
the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases. The requirements of paragraph 58 of IFRS 16, provided that the disclosure of details in indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total
the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:

 - paragraph 73(e) of IAS 16 Property, Plant and Equipment;
 - paragraph 118(e) of IAS 38 Intangible Assets;
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
the requirements of IAS 7 Statement of Cash Flows
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member



Page 15

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

2.Accounting policies (continued)


2.2
Financial Reporting Standard 101 - reduced disclosure exemptions (continued)

This information is included in the consolidated financial statements of Hillenbrand Inc as at 30 September 2024 and these financial statements may be obtained from the Hillenbrand website, as indicated in the controlling party note (See Note 31).

  
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of a state other than the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 401 of the Companies Act 2006.

 
2.4

Going concern

The company has made an operating loss in the year of £5.0 million (9 months ended 30 September 2024: £5.2 million) but retains strong current net assets of £21.6 million (2023: £24.2 million).
The directors have prepared budgets indicating that operating losses will significantly reduce in the year ending 30 September 2025. With a strong order book and substantial capital investment in the business, the company expects to return to profitability in the following year.
The company's ultimate parent, Hillenbrand Inc, has confirmed it intends to provide support wherever necessary to ensure that the company will continue to be able to pay all debts as they fall due for a period not less than 12 months from the date of approval of these financial statements.
As a result of the above, the directors have deemed it appropriate to prepare the financial statements on a going concern basis.

 
2.5

Impact of new international reporting standards, amendments and interpretations

The following amendments are effective for the period beginning 1 October 2025:
-   Lack of Exchangeability (Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates).
The following amendments are effective for the period beginning 1 October 2026:
-   Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9      Financial Instruments).
The directors anticipate that the adoption of these Standards in future periods may have an impact on the results and net assets of the Company, however, it is too early to quantify this.
The directors anticipate that the adoption of other Standards and interpretations that are not yet effective in future periods will only have an impact on the presentation in the financial statements of the Company.

Page 16

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

2.Accounting policies (continued)

 
2.6

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.7

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

The Company has contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company adjusts the transaction prices of these contracts for the time value of money.

Sale of goods

Revenue from the sale of goods is recognised on the satisfaction of performance obligations, such as the transfer of a promised good, identified in the contract between the Company and the customer.

A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

Rendering of services

Revenue from providing services is recognised in the accounting period in which the services are rendered.

For fixed-price contracts, revenue is recognised based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided because the customer receives and uses the benefits simultaneously.

Further detail regarding recognition of revenue is provided below:
 





 
Page 17

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

2.Accounting policies (continued)


2.7
Revenue (continued)

Capital contracts 
The company designs, manufactures and implements machinery used for the production of various food products. It also provides service contracts to carry out necessary upkeep and maintenance.
IFRS 15, revenue from contracts with customers, stipulates a five step process that should be followed. Each step is summarised below in respect of the company's revenue recognition process:
Step 1 - Identification of contract
The company holds signed contracts with all of its customers, which clearly stipulate the rights of the customer and supplier, the payment terms and conditions and confirms that contracts cannot be cancelled without due reason, as clearly set out in the contract, together with any penalty fees.
Each project is carefully costed prior to quoting a sales price, ensuring that the project has commercial substance as defined by IFRS 15.
Step 2 - Identification of performance obligations
Management have considered different performance obligations. Where an asset is being constructed, the completion of construction is typically viewed as the sole performance obligation. Where an asset is to be installed, it is deemed that it is immaterial to recognise this as a separate performance obligation.
Step 3 - Identifiy transaction price
Transaction prices are usually easily identifiable from the original signed contract. Where costs are expected to vary significantly from original estimates, management will consider whether the contract price will also be adjusted. Minor adjustments are added to the contract price and measured against the total costs when determining the amount of revenue to be recognised. More major variations are considered as to whether they give rise to a new contract.
Steps 4 and 5 - Link transaction price to performance obligations and recognition of revenue thereon
Typically, there is only one performance obligation, and therefore revenue shall be recognised based on a percentage of completion method, driven by costs incurred to date.
Spares sales
Spares sales are typically recognised as revenue at the despatch of goods.
Service contracts
Where revenue for a service contract is anticipated to be in excess of £100,000, revenue is recognised in the same way as capital contracts.
For service contracts that are less than £100,000, revenue is recognised at the point of completion of the service to the customer's satisfaction. To recognise revenue over a period of time is not necessary as the value of such contracts and the time incurred on them is not sufficient to create a material difference. 
For annual maintenance contracts, revenue is recognised on a straight line basis over the contract term.

Page 18

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

2.Accounting policies (continued)

 
2.8

Leases

The Company as a lessee

The Company assesses whether a contract is or contains a lease, at inception of a contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate, which is provided by it's ultimate parent, based on its own incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise:

fixed lease payments (including in-substance fixed payments), less any lease incentives;


The lease liability is included in 'Creditors' on the Balance Sheet.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

a change in ownership gives rise to a change in discount rate, meaning a change in the lease assets and liabilities should be considered.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The right-of-use assets are included in the 'Intangible Assets', 'Tangible Fixed Assets' and 'Investment Property' lines, as applicable, in the Balance Sheet.

The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in note 2.15.

As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has used this practical expedient.

Page 19

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

2.Accounting policies (continued)

 
2.9

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.10

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.11

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.12

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 20

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

2.Accounting policies (continued)

 
2.13

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.14

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

 
2.15

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 21

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

2.Accounting policies (continued)


2.15
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
Life of the lease
Plant and machinery
-
5 - 10 Years
Motor vehicles
-
2 - 5 Years
Fixtures and fittings
-
2 - 10 Years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.17

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.18

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.19

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.20

Creditors

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Creditors are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

Page 22

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

2.Accounting policies (continued)

 
2.21

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.22

Financial instruments



The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:

Financial assets and financial liabilities are initially measured at fair value. 

Financial assets

All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.

Debt instruments at amortised cost

Debt instruments are subsequently measured at amortised cost where they are financial assets held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and selling the financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Amortised cost is calculated using the effective interest method and represents the amount measured at initial recognition less repayments of principal plus the cumulative amortisation using the effective interest method of any difference between the initial amount and the maturity amount, adjusted for any loss allowance.

Impairment of financial assets

The Company recognises a loss allowance for expected credit losses on investments in debt instruments that are measured at amortised or at FVOCI. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument.

The Company always recognises lifetime ECL for trade receivables and amounts due on contracts with customers. The expected credit losses on these financial assets are estimated based on the Company's historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument.

Page 23

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

2.Accounting policies (continued)


2.22
Financial instruments (continued)

Financial liabilities
Fair value through profit or loss
Financial liabilities are classified as at fair value through profit or loss, when the financial liability is held for trading, or is designated as at fair value through profit or loss. This designation may be made if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise, or the financial liability forms part of a group of financial instruments which is managed and its performance is evaluated on a fair value basis, or the financial liability forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the entire combined contract to be designated as at fair value through profit or loss. Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship.
At amortised cost
Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability.

Page 24

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period In which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. 
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Criticial judgements
Contract balances
Contract revenue is recognised in accordance with IFRS 15 input methodology on a percentage of completion basis. The directors estimate the percentage of completion based on the costs incurred to date as a proportion of total estimate costs of fulfilling the contract. The main estimation uncertainty is related to the costs to complete the project which is based on detailed project plans and the experience of the production team.
Leases
Discount rate 
Management have concluded that the interest rate implicit in the leases cannot be readily determined therefore the leases have been discounted by the incremental borrowing rate (IBR), being the rate if interest that the company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain assets of a similar value to the right-of-use assets in a similar economic environment. 
The rates of 6.27% (
2023: 6.27%) for buildings and 5.89% (2023: 5.89%) for vehicles have been applied. These rates are consistent with those applied across the Hillenbrand Group and are based on the groups borrowing position, which are considered to be appropriate for the specific leased assets in question. 
Lease term 
On transition to IFRS 16, management calculated the lease term for each lease to be from the date of initial application (being 1 April 2019) to the lease expiration date as permitted by the standards. Management assessed this to be initial break option in 2032, as at initial application it was not reasonably certain the lease would be extended past this point. There have been no changes in circumstances that would invalidate this judgement 
Inventory obsolesence 
In determining inventory provision, future demand is evaluated and appropriate provision are made to reflect the risk of obsolescence. This methodology is significantly affected by forecasted requirements for inventory. If actual demand or usage were to be lower than estimated, additional inventory provisions for excess or obsolete inventory may be required, which could have a material adverse effect on the business, financial position and results of operations. 
Warranty provision
Warranties are provided for in the normal course of business based on an assessment of future claims with reference to past claims. Such costs are generally incurred over the product warranty period.


 
Page 25

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

3.Judgements in applying accounting policies (continued)

Remedial work provision
Provisions for remedial work are provided in the normal course of business based on an assessment of the costs to be incurred in respect of good and services supplied. Such costs are generally incurred over the product lifecycle. 
Dilapidiations provisions
Dilapidation costs are determined by way of a professional valuation, and are accrued over the period of the lease. 


4.


Turnover

An analysis of turnover by class of business is as follows:


30 September
9 months ended
30 September
2024
2023
£
£

Capital contracts (recognised over time)
22,254,261
19,431,212

Spares (recognised at a point in time)
11,443,579
6,104,299

Servicing (recognised at a point in time)
4,625,627
2,533,726

38,323,467
28,069,237


Analysis of turnover by country of destination:

30 September
9 months ended
30 September
2024
2023
£
£

United Kingdom
7,094,731
5,114,535

Rest of Europe
9,959,817
5,082,341

Rest of the world
21,268,919
17,872,361

38,323,467
28,069,237


Page 26

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

5.


Other operating income

30 September
9 months ended
30 September
2024
2023
£
£

Reversal of impairment of tangible assets
-
662,798


During the prior period, the company was acquired by Hillenbrand Inc, via intermediate parent Hillenbrand UK Holdings Limited. At this time, the company re-assessed it's right of use assets and liabilities under IFRS 16, primarily on its land and buildings. 
It was noted by management that there was limited support available to substantiate the figures previously used by the company prior to the acquisition by Hillenbrand Inc. As a result, it was agreed that, upon acquisition, the right of use asset and liability should be re-measured using the discount rates as agreed with Hillebrand Inc, with the resultant adjustment being written back through the Statement of comprehensive income.
The following adjustments were therefore made to the right-of use assets and liabilities:
 - Increase to the right of use asset of £1,598,721;
 - Increase of £935,923 in the lease liability;
 - The balance of £662,798 has been credited to the Statement of comprehensive income as shown     above.
No such re-measurements were required in the year to 30 September 2024.


6.


Operating loss

The operating loss is stated after charging/(crediting):

30 September
9 months ended
30 September
2024
2023
£
£

Research & development charged as an expense
634,611
427,200

Exchange differences
134,184
(54,183)

Page 27

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

7.


Auditors' remuneration

During the period, the Company obtained the following services from the Company's auditors and their associates:


30 September
9 months ended
30 September
2024
2023
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
44,000
51,000

Fees payable to the Company's auditors and their associates in respect of:

Audit-related assurance services
12,000
5,000

Taxation compliance services
9,000
5,000


8.


Employees

Staff costs, including directors' remuneration, were as follows:


30 September
9 months ended
30 September
2024
2023
£
£

Wages and salaries
13,285,054
9,864,895

Social security costs
1,423,546
1,055,086

Cost of defined contribution scheme
1,587,408
1,170,189

16,296,008
12,090,170


The average monthly number of employees, including the directors, during the period was as follows:


     30 September
   9 months ended
     30 September
        2024
        2023
            No.
            No.







Selling
26
25



Administration
30
27



Production
255
266



Apprentices
8
9

319
327

Page 28

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

9.


Directors' remuneration

30 September
9 months ended
30 September
2024
2023
£
£

Directors' emoluments
115,566
82,428

Company contributions to defined contribution pension schemes
51,570
39,676

167,136
122,104


During the period retirement benefits were accruing to 1 director (2023 - 1) in respect of defined contribution pension schemes.


10.


Investment income

30 September
9 months ended
30 September
2024
2023
£
£


Interest receivable from group companies
428,977
-

Other interest receivable
485,397
3,894

914,374
3,894


11.


Finance costs

30 September
9 months ended
30 September
2024
2023
£
£


Loans from group undertakings
-
402,095

Interest on lease liabilities
320,805
322,114

320,805
724,209

Page 29

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

12.


Taxation


30 September
9 months ended
30 September
2024
2023
£
£

Corporation tax


Adjustments in respect of previous periods
-
(389,374)


Total current tax
-
(389,374)

Deferred tax


Origination and reversal of timing differences
(111,129)
174,798

Adjustments in respect of prior years
-
1,095,000

Total deferred tax
(111,129)
1,269,798


Taxation on (loss)/profit on ordinary activities
(111,129)
880,424
Page 30

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024
 
12.Taxation (continued)


Factors affecting tax charge for the period

The tax assessed for the period is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.02%). The differences are explained below:

30 September
9 months ended
30 September
2024
2023
£
£


(Loss)/profit on ordinary activities before tax
(4,434,862)
13,726,704


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.02%)
(1,108,716)
3,159,887

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
25,206
4,868

Capital allowances for period in excess of depreciation
162
(9,742)

Adjustments to tax charge in respect of prior periods
-
(389,374)

Adjustments to deferred tax charge in respect of prior periods
(3,141)
248,502

Movement in deferred tax not recognised
(228,594)
2,506,727

Gain on disposal of subsidiary not taxable
-
(4,522,850)

Changes in tax rates
-
(117,528)

Other differences leading to an increase (decrease) in the tax charge
-
(66)

Group relief
1,203,954
-

Total tax (credit)/charge for the period
(111,129)
880,424


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 31

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

13.


Intangible assets




Development expenditure

£



Cost


At 1 October 2023
326,239



At 30 September 2024

326,239



Amortisation


At 1 October 2023
81,560


Charge for the year on owned assets
108,747



At 30 September 2024

190,307



Net book value



At 30 September 2024
135,932



At 30 September 2023
244,679




Page 32

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

14.


Property, Plant and Equipment





Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost


At 1 October 2023
7,461,760
5,080,590
12,627
1,175,878
13,730,855


Additions
-
932,378
-
26,548
958,926


Disposals
-
(79,459)
-
-
(79,459)



At 30 September 2024

7,461,760
5,933,509
12,627
1,202,426
14,610,322



Depreciation


At 1 October 2023
1,635,896
2,177,119
12,627
811,465
4,637,107


Charge for the year on owned assets
-
513,250
-
183,518
696,768


Charge for the year on right-of-use assets
508,638
-
-
-
508,638


Disposals
-
(79,459)
-
-
(79,459)



At 30 September 2024

2,144,534
2,610,910
12,627
994,983
5,763,054



Net book value



At 30 September 2024
5,317,226
3,322,599
-
207,443
8,847,268



At 30 September 2023
5,825,864
2,903,471
-
364,413
9,093,748


The net book value of owned and leased assets included as "Tangible fixed assets" in the Balance Sheet is as follows:

2024
2023
£
£


Tangible fixed assets owned
3,581,679
3,319,521

Right-of-use tangible fixed assets
5,265,589
5,774,227

8,847,268
9,093,748

Page 33

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

           14.Property, Plant and Equipment (continued)

Information about right-of-use assets is summarised below:

Net book value

2024
2023
£
£

Property
5,317,226
5,825,864

Other tangible fixed assets
-
(51,637)

Depreciation charge for the period ended

2024
2023
£
£

Property
508,638
465,174


15.


Fixed asset investments





Investments in subsidiary companies

£



Cost 


At 1 October 2023
86,362



At 30 September 2024
86,362





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Class of shares

Holding

Baker Perkins SAS
Ordinary
100%

The aggregate of the share capital and reserves as at 30 September 2024 and the profit or loss for the period ended on that date for the subsidiary undertaking was as follows:

Name

Baker Perkins SAS

Page 34

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

16.


Stocks

2024
2023
£
£

Raw materials and consumables
3,409,621
3,369,760

Work in progress (goods to be sold)
703,118
1,150,278

Finished goods and goods for resale
88,290
-

4,201,029
4,520,038


The difference between purchase price or production cost of stocks and their replacement cost is not material.
Impairment losses in relation to inventories recognised during the year as an expense were £93,492 (
2023: £114,011).



17.


Trade and Other Receivables

2024
2023
£
£


Trade receivables
4,018,476
3,115,678

Receivables from contracts with customers
2,140,210
3,368,566

Amounts owed by group undertakings
540,729
26,945,873

Other receivables
180,140
874,302

Prepayments and accrued income
613,310
1,018,589

7,492,865
35,323,008


Impairment losses
No impairment losses were recognised on the company's receivables from contracts with customers (2023: £Nil).
Impairment losses totalling £1,116 were recognised on the company's trade debtors (
2023: £Nil).
Amounts owed by group undertakings
All amounts owed by group undertakings are unsecured, interest free and repayable on demand. At the prior period end, interest was payable at a rate of 4.3% on these amounts.


18.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
21,614,105
3,081,078


Page 35

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

19.


Current liabilities

2024
2023
£
£

Trade payables
1,272,221
5,432,449

Amounts owed to group undertakings
967,372
930,571

Other taxation and social security
374,645
394,340

Lease liabilities
608,505
574,604

Other payables
2,164,655
2,973,330

Accruals and deferred income
1,257,026
1,397,969

Contract liabilities
5,281,622
7,010,026

11,926,046
18,713,289


The following liabilities were secured:

2024
2023
£
£



Lease liabilities
608,505
574,604

Details of security provided:

Lease liabilities are secured on the assets to which they relate, primarily the land and buildings leased by the company.
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.


20.


Non-current liabilities

2024
2023
£
£

Lease liabilities
4,537,029
5,404,501


The following liabilities were secured:

2024
2023
£
£



Lease liabilities
4,537,029
5,404,501

Details of security provided:

Lease liabilities are secured on the assets to which they relate, primarily the land and buildings leased by the company.

Page 36

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

21.

Leases

Company as a lessee

The Company assesses whether a contract is or contains a lease, at contract inception, The Company recognises a right- of-use asset and a corresponding lease liability with respect to all lease agreements in which is it the lessee, except for short term leases (defined as leases with a lease term of 12 months or less) and lease of low value assets. For these leases, the Company recognises the lease payments as an operating expense on a straight line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. 
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Company uses its incremental borrowing rate. 
Lease payments included in the measurement of the lease liability comprise: . fixed lease payments (including in-substance fixed payments), less any lease incentives. The lease liability is included in 'Creditors' on the Statement of Financial Position. The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever: . the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised discount rate. The right of use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement date, any initial direct costs and any expected future costs in relation to dilapidations. They are subsequently measured at cost less accumulated depreciation and impairment losses. 
Depreciation of right-of-use assets 
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expect to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease. 
The right-of-use assets are included in 'property, plant and equipment' in the statement of financial position. The Company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss. 
As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease components as a single arrangement. The Company has used this practical expedient.

Lease liabilities are due as follows:


2024
2023
£
£

Not later than one year
608,505
574,604

Between one year and five years
2,622,008
2,693,939

Later than five years
1,915,021
2,710,562

5,145,534
5,979,105

Page 37

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

21.Leases (continued)



The following amounts in respect of leases, where the Company is a lessee, have been recognised in profit or loss:


2024
2023
£
£

Interest expense on lease liabilities
320,805
322,114


22.


Contract liabilities

Where amounts invoiced by the company in respect of contractual revenue are in advance of revenue that can be recognised based on the assessment of how complete the performance obligations are on that contract, the balance is held in contract liabilities within creditors.
As progress is made on performance obligations, revenue is recognised by way of a release of revenue from contract liabilities. Further invoices raised are credited to contract liabilities as they arise.
In respect of contracts that constitute "capital sales," these can take several years to complete, and therefore in some cases it can be several years before the revenue on these contracts is fully recognised.
In respect of contracts that constitute "spares sales" and "service sales," these are typically completed within one year, and therefore the contract liabilities are released within one year.


23.


Deferred taxation




2024
2023


£

£






Liability at beginning of year
(561,561)
708,237


Charged to profit or loss
111,129
(1,269,798)



Liability at end of year
(450,432)
(561,561)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(450,432)
(561,561)

Due to uncertainty as to the timing of their recoverability, deferred tax arising on carried forward losses of £8,976,185 (2023: 9,980,559) have not been recognised.

Page 38

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

24.


Provisions




Warranty provision
Dilapidations provision
Remedial provisions
Total

£
£
£
£





At 1 October 2023
1,071,069
1,435,600
1,085,500
3,592,169


Charged to profit or loss
2,354,875
243,850
(480,500)
2,118,225



At 30 September 2024
3,425,944
1,679,450
605,000
5,710,394

Warranty provision
The company holds provision for potential defects on machines sold that would be covered by the warranty offered to customers. Terms on these vary from customer to customer but typically last not more than two years from the date of commissioning.
In addition to the usual warranty provision, additional provisions totalling £2,277,635 (
2023: £Nil) have been recognised during the year. These relate to specific contracts with known warranty issues identified during the period.
Dilapidations provision
The company is required to incur costs to undo amends it has made to the property which it occupies under a lease due to expire in 2037. The costs expected to be incurred have been independently verified and have been included in the financial statements.
Remedial provisions
The company holds provision for certain contracts where it is expected that additional costs above those accrued might be incurred.

Page 39

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

25.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,000,000 (2023 - 1,000,000) Ordinary shares of £1.00 each
1,000,000
1,000,000



26.


Reserves

Profit and loss account
The profit and loss account includes all profits and losses accumulated since incorporation, net of dividends paid.


27.


Contingent liabilities

The company has provided bank guarantees to customers totalling £1,616,550 (2023: £2,541,000).
As at 30 September 2024, the Company is addressing performance matters associated with a contract involving an overseas customer. Although discussions are ongoing, any financial impact, if any, cannot be reliably estimated at this time. Accordingly, no provision has been made in these financial statements.


28.


Capital commitments

As at 30 September 2024, the Company had entered into contractual commitments for the acquisition of plant and machinery amounting to £567,500 (2023: £Nil). These commitments primarily relate to the expansion of production facilities and the upgrade of machinery.
The Company expects these commitments to be settled within the next 12 months.


29.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £1,587,408 (2023: £1,170,189). Contributions totalling £151,573  (2023: £149,054) were payable to the fund at the balance sheet date and are included in creditors.


30.


Related party transactions

The entity has taken the available exemption conferred by IAS 24 Related Party Disclosures not to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

Page 40

 
Baker Perkins Limited
 
 
 
Notes to the Financial Statements
For the Period Ended 30 September 2024

31.


Controlling party

The Company's immediate parent is Baker Perkins Holdings Limited by virtue of its 100% stake in the voting share capital.
The largest group in which the results of the Company are consolidated is that headed by Hillenbrand Inc, a company incorporated in the United States of America and listed on the New York Stock Exchange. The registered office of Hillenbrand Inc is One Batesville Boulevard, Batesville, Indiana 47006, United States of America. Copies of the parent company's consolidated financial statements may be obtained from the company's website. 
The link to the annual report for the year ended 30 September 2024 can be found below:
https://ir.hillenbrand .com/_assets/_686659ceb236ef959a40f6a98b7c862f /hillenbrand /db/1218/12150/annual_report /Hillenbrand +2024+Annual+Report .pdf

 
Page 41