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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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BAIRD & CO. LIMITED
COMPANY INFORMATION
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BAIRD & CO. LIMITED
CONTENTS
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BAIRD & CO. LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic report for the year ended 31 December 2024.
The principal activities of the Company in the period under review remained those of buying, selling, refining, manufacturing, processing, smelting, and assaying of precious metals, and vaulting.
We continued to experience strong trading performances in 2024 with steady results in Gross Profit, £7.1m (6 month period to Dec 2023: £3.2m) and an increase in Profit Before Tax (PBT) to £1.4m (6 month period to Dec 2023: £0.4m). There were reasonable profit margins in our core metals: Gold and Silver. We are very pleased that our strategy of maintaining healthy levels in our vaulting revenue and profitability has been achieved and will continue to concentrate efforts in this area of growth within our business.
Revenue over all increased by 158% to £375m (2023: £145m) due to only 6 months of trading activity in the period ended 31 December 2023. The Directors are satisfied with the overall performance of the company and the period end saw us with a strong liquidity position. As part of our continued drive to create operational efficiency, we were able to reinforce our position in the market through investment in core practices, thus reflecting an increase in administrative costs in the period. We have had a good start to 2025 and expect that it will be another profitable year.
The principal risks associated with the company include fluctuations in metal prices. To protect against exposure to price fluctuations in precious metals, the company operates a policy of continuously hedging exposure. The trading of precious metals obligations achieves this with financial institutions.
Other risks faced by the company include credit, liquidity, and foreign currency risks, and the company adopts a suitable strategy to ensure such risks are mitigated effectively. In respect of bank balances, the liquidity risk is managed by maintaining a balance between continuity of funding and flexibility through the occasional use of overdrafts and pledged stock at floating rates of interest. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit extended to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditor's liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
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BAIRD & CO. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The key financial highlights are as follows:
The Company also considered the retention of good quality employees to be a key performance indicator, with average number of employees in the period to be 56 (2023 - 55).
Future prospects The directors will continue to develop the business and its product range, streamline operations and Online system which includes our social marketing presence.
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BAIRD & CO. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
As the Board of Directors at Baird & Co Ltd, we have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, honourable, would be most likely to advocate the Company’s achievements for the interest of its members, and to have regard to the long-term effect our decisions on the Company and its stakeholders. This statement addresses the ways in which we as a Board fulfill this responsibility.
Baird & Co. was established as a firm by the late Tony Baird in 1967 and the Company continues to be controlled and run by the Baird Family. We’re proud of the ways in which, for over half a century, the Company has provided employment, training and financial reward for its owners and employees. We aim to be the UK’s largest and best specialist Bullion Merchant dealers. In a very saturated market, dominated by high-run low-margin traders, we want to retain the customer closeness of a local Bullion dealer with the innovation and expertise to deliver refined gold and silver of the highest purity. We acknowledge that, to progress to the next phase in the Company’s future, it is likely that we need to form strategic partnerships with other companies and groups in the sectors within which we operate. We continue to explore possibilities along these lines. In doing so, our main aims are to maximise the Company’s ability to grow profits and market share whilst returning the highest possible value to the Baird family shareholders through brand loyalty and innovative growth opportunities. We make strategic decisions based on long-term objectives, processes, and upskilling our people at the expense of short-term gains. We will continue to invest and upgrade our infrastructure. The hope for 2025 is to re-launch e-commerce functionality that will not only improve speed, performance, and product offerings, but also offer an enhanced customer portal for both retail and wholesale, stronger site wide security, improve customer support and provide user friendly navigation. We continue to engage and develop our employees, reinforcing our values and recognise when they go over and above daily tasks.
This report was approved by the board on 5 September 2025 and signed on its behalf.
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BAIRD & CO. LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments 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 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The energy usage for the year ended 31 December 2024 at our Beckton refinery was 1,428 MWh of Electricity (Primary energy), equivalent to 595 MWh of delivered energy. For Gas the energy usage was 83.2 KWh. The electricity energy usage equates to 4 MWh per tonne of silver refined and 133 MWh per tonne of gold refined. This information is taken from reports sent to the Environment Agency.
The profit for the year, after taxation, amounted to £1,256,689 (2023 - £249,285).
The directors have prepared a full business review in the Stategic report.
Dividends of £1,000,000 were paid during the period ended 31 December 2024 (2023 - £1,000,000). The directors have recommended further dividends of £500,000 post-period end.
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BAIRD & CO. LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors who served during the period were:
There have been no significant events affecting the Company since the period end.
After the year end Barnes Roffe LLP resigned as auditors due to the transfer of its audit business and its successor Barnes Roffe Audit Limited was appointed by the directors under s485 Companies Act 2006.
This report was approved by the board on
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BAIRD & CO. LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BAIRD & CO. LIMITED
We have audited the financial statements of Baird & Co. Limited (the 'Company') for the year ended 31 December 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 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).
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 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.
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.
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BAIRD & CO. LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BAIRD & CO. LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
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.
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BAIRD & CO. LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BAIRD & CO. LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the relevant sector;
∙We focused on specific laws and regulations, which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and ISO standards;
∙We assessed the extent of compliance with laws and regulations identified above through making enquires of management and inspecting legal correspondence and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
∙Making enquires of management as to where they considered there was susceptibility to fraud, their knowledge of actual suspected and alleged fraud; and
∙Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
∙Performed analytical procedures to identify any unusual or unexpected relationships;
∙Tested journal entries to identify unusual transactions;
∙Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
∙Investigated the rationale behind significant or unusual transactions.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial statements, the less likely it is that we would become aware of non-compliance.
Auditing standards also limit the audit procedures to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from errors as they may involve deliberate concealment or collusion.
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BAIRD & CO. LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BAIRD & CO. LIMITED (CONTINUED)
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Leytonstone House
3 Hanbury Drive
London
E11 1GA
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BAIRD & CO. LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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BAIRD & CO. LIMITED
REGISTERED NUMBER: 02269558
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 13 to 36 form part of these financial statements.
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BAIRD & CO. LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Baird & Co Limited specialises in manufacturing, refining, processing, melting and assaying precious metals, and vaulting such as Gold, Silver, Platinum, Palladium and Rhodium. Revenue is derived from the subsequent sale of precious metal in various forms.
The Company is a private company limited by shares, incorporated and domiciled in the United Kingdom.
2.Accounting policies
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.
The company has adopted the July 2015 amendments to FRS 102 in the preparation of these financial statements, thus permitting the accounting valuation policy adopted for stocks as described in note 2.7. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.
The Company meets its day-to-day working capital requirements through careful management of working capital positions. The Company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Company should be able to operate without other third party support. After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.
The Company has taken advantage of the exemption, under FRS 102 paragraph 1.12(b), from preparing a statement of cash flows, on the basis that it is a qualifying entity and its ultimate parent company, Baird Investments Limited, includes the Company’s cash flows in its own consolidated financial statements.
The Company is a subsidiary of Baird Investments Limited. It is included in the consolidated financial statements of Baird Investments Limited which are publicly available. It is exempt from the requirement to prepare group accounts by virtue of section 400 of the Companies Act 2006. These financial statements therefore present information about the Company as an individual undertaking and not about its group.
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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:
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: • the Company has transferred the significant risks and rewards of ownership to the buyer; • the amount of revenue can be measured reliably; • it is probable that the Company will receive the consideration due under the transaction; • the costs incurred or to be incurred in respect of the transaction can be measured reliably; • when any other specific criteria relating to each of the Company’s sales types have been met, as described below. The Company has the following main sources of revenue: a) Sale of goods - wholesale All of the Company’s significant sources of revenue derive from the sale of precious metal to its customers. Due to the nature of the industry in which the Company operates, the contractual arrangements surrounding certain transactions can be complex. The key elements of these contractual arrangements, which are necessary for an understanding of these financial statements, are explained in more detail below. However, unless as separately described below, the key revenue recognition criteria above shall apply to all transactions. Similarly, the industry in which the Company operates gives rise to significant additional commercial activity associated with the commodity and product that the Company sells. For example, bullion brokerage, arbitrage and investment. The Company does not participate in such activity. All of the Company’s sales derive from metal owned by the Company. The Company does not seek to earn any revenue from movements in the price of the underlying commodity. The Company’s stock and trading positions are balanced accordingly to avoid such price exposure. Allocated and unallocated metal sales Sales are made on either an allocated or an unallocated basis. Allocated metal sales involve the physical transfer of specific metal bars and/or coins to a customer or to be set aside and held on behalf of a customer, such metal being uniquely and separately identifiable as belonging to the customer. Unallocated sales are sales in which there is often no immediate requirement or desire to transfer the physical metal to the customer, or for such metal to be separately identifiable. Given the nature of the commodity, selling on an unallocated basis is common. Unallocated metal account holders have a general entitlement to metal and are unsecured creditors of the Company. In line with industry convention, the Company continues to recognise the associated metal within its own stocks. In the case of both allocated and unallocated sales, revenue is recognised based on the above key criteria, which will generally be the trade date of sale. For unallocated sales it is appropriate to recognise revenue even though physical delivery may not have taken place, since it is demonstrably the case that the significant risks and rewards of ownership of the metal (which is mainly the
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
exposure to price fluctuations) will have passed to the customer. The Company will no longer be exposed to such risks and rewards as it will have corresponding stock and creditor balances denominated in metal terms such that the Company’s position is balanced.
When an unallocated account customer converts previously purchased unallocated metal into allocated metal the Company accounts for this as a purchase of unallocated metal and a sale of allocated metal. This is because the original sale of unallocated metal is a contractually separate transaction. The subsequent repurchase of unallocated metal represents a contractually separate transaction, on new terms, including weight and timing, and therefore price. The allocated metal sale represents another contractually separate transaction and will involve the legal separation and physical identification (separate numbering of bars etc.) of metal. Further information regarding unallocated and allocated metal accounts can be found on our website at www.bairdmint.com. Deferred trading accounts The Company operates deferred cash and metal accounts with certain customers and suppliers (counterparties). All sales and purchases arising from deferred trading account activity are included within revenue and cost of sales respectively. All transactions are recognised in the financial statements on the trade date of the transaction which is the date at which both parties are unconditionally contracted to complete the transaction. Deferred cash and metal balances will exist with such counterparties at a given point in time and such balances are included within stocks, in the case of metal asset balances, debtors in the case of cash asset balances and in creditors in the case of both cash and metal liabilities. b) Sale of goods - retail The Company operates a retail shop for the sale of gold and certain related products. Sales of gold and related products are recognised on sale to the customer, which is considered to be at the point at which risks and rewards of ownership are transferred. c) Sale of goods - internet and telephone based transactions The Company sells precious metal via its website and by telephone for delivery to the customer. Revenue is recognised at the point at which risks and rewards of ownership are transferred.
Cost of sales represents amounts payable for the purchase of various precious metals and related products. Cost of sales are recognised on the trade date of a transaction.
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Stocks consist of precious metals held by the Company and are valued at fair value less costs to sell in accordance with the alternative accounting rules permitted by the Companies Act 2006 and with the provisions of FRS 102 paragraph 13.3. All precious metals are valued at period end closing values as published by the London Bullion Market Association (LBMA), an internationally recognised pricing mechanism. Such prices are based on the “fine” metal benchmark for each type of precious metal, which is similarly internationally recognised. As stocks of precious metals are held in various forms, only the fine metal content is included in stock valuation, all other metal content is ignored as such values would be wholly immaterial.
As noted in accounting policy 2.5, the Company operates allocated and unallocated accounts for its customers. In common with industry practice, stocks held on behalf of unallocated account holders are included within the value of stocks held by the Company in the balance sheet. A corresponding liability is included within creditors. Unallocated metal account holders have a general entitlement to metal and are unsecured creditors of the Company. Their holding is not represented by any specific metal set aside but their general entitlement is made up of metal balances held within stock. The corresponding liability to unallocated metal account holders is valued at fair value, based on the same principles as the corresponding stock asset value, as described above. The Company seeks to maintain an equilibrium between its level of total precious metal stocks and total precious metal liabilities. The Directors consider it necessary to adopt a fair value policy to measure both the assets and liabilities in question in order for the financial statements to give a true and fair view. Deferred metal stocks, as described in accounting policy 2.5, comprise stocks held on behalf of counterparties with which deferred accounts are operated. Similarly deferred metal liabilities represent corresponding metal liabilities to counterparties with which deferred accounts are operated. Deferred metal stocks and liabilities are valued at fair value at the balance sheet date. Deferred metal stocks are included within the stock value in the balance sheet and deferred metal liabilities are included within creditors in the balance sheet. Post period-end diminution in value will only be considered as an indicator of impairment of precious metal stocks to the extent that total precious metal stocks exceed total precious metal liabilities at the balance sheet date. In other words, impairment is only considered to the extent the Company has a net precious metal stock exposure. Allocated metal account holders have specific metal set aside held as the property of the account holder. The value of metal held by these account holders is not included in the Company's financial statements. Accordingly no liability to allocated account holders is included in the financial statements. Stocks also include immaterial amounts of tools and other ancillary items which are valued at the lower of cost and estimated selling price less costs to complete and sell. Precious metal stocks held on consignment at third parties are included at fair value within stocks in the balance sheet as the Company retains legal title to such stocks until they are sold by the third party. Stocks held on behalf of third parties by the Company, as consignee, are not included in the value of stocks in the balance sheet as the Company does not have legal title to such stocks.
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Financial assets
Basic financial assets, including trade debtors and other receivables, cash and bank balances and investments, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the Statement of comprehensive income. 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 the Statement of comprehensive income. Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. Financial liabilities Basic financial liabilities, including trade creditors and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. 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. Trade creditors 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. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Deferred metal contracts involve the purchase and sale of a non-financial item and are therefore not financial instruments and neither do the Directors believe that the provisions of FRS 102 paragraph
Page 17
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
12.5 apply because such contracts are not capable of being settled net in cash or another financial instrument.
Metal liabilities to deferred and unallocated metal account holders represent a non-financial liability and are included in creditors. These are not financial liabilities. Cash balances owed by/to deferred account counterparties are included within debtors/creditors respectively and are financial assets/liabilities.
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.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed five years. Intangible assets that are not yet brought into use are not amortised. The Directors will assess the useful economic life of such intangibles when they are brought into use. Acquired goodwill is capitalised and amortised over its useful economic life. The Company does not currently have any unamortised goodwill. The Directors would consider the useful economic life for any future additions based on their knowledge and experience of the sector and with due regard to prevailing accounting standards. All goodwill is reviewed for impairment at the end of its first full financial year following acquisition and subsequently as and when necessary if circumstances emerge that indicate that the carrying value may not be recoverable.
Page 18
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Statement of comprehensive income during the period in which they are incurred. Land is not depreciated. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance method. The estimated useful lives range as follows: Freehold property 2% (50 years) on straight-line Long term leasehold property – over the term of the lease Plant & machinery 10% (10 years) on straight-line Motor vehicles 25% (4 years) on straight-line Office equipment 25% (4 years) on straight-line 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 within the Statement of comprehensive income.
Fixed asset investments comprise equity shares in Baird & Co. Private Limited (“PTE”) which is incorporated in Singapore and not publicly traded. Investments in subsidiaries are measured at cost less accumulated impairment.
Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the period of the lease.
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Right-of-Use Assets (ROU) represent the company’s right to use leased assets over the lease term. The ROU assets are initially recognized at the amount of the lease liability adjusted for any prepayments or incentives received and any initial direct costs incurred. ROU assets are amortised on a straigh-line basis over the lease term.
Lease liabilties represent the present value of future lease payments, discounted using the rate implicit in the lease or, if that rate cannot be readily determined, the company’s incremental borrowing rate.
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.
Functional and presentation currency
The Company’s functional and presentation currency is the pound sterling. 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 the Statement of comprehensive income except when deferred in other comprehensive income as qualifying cash flow hedges.
Page 20
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company provides a range of benefits to eligible employees, annual bonus arrangements, paid holiday arrangements and defined contribution pension plans.
Short term benefits Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received. Defined contribution pension plans The Company makes contributions to the personal pension plans of certain employees. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plans are held separately from the Company in independently administered funds. Annual bonus plan The Company operates an annual bonus plan for certain employees. An expense is recognised in the Statement of comprehensive income when the Company has a legal or constructive obligation to make payments under the plan as a result of past events and a reliable estimate of the obligation can be made.
The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statement of comprehensive income, 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.
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Deferred 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. Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Company can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. 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 income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
The Company discloses transactions with related parties which are not wholly owned within the same group. It does not disclose transactions with members of the same group that are wholly owned.
Individual freehold properties are carried at current period value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
Interest income is recognised in profit or loss using the effective interest method.
Page 22
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance sheet.
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.
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.
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
a) Critical judgments in applying the entity’s accounting policies (i) Stock valuation basis As described in note 2.7 above the Company values stocks of precious metals at fair value. This policy is in accordance with the alternative accounting rules permitted by the Companies Act 2006 and with FRS 102 paragraph 13.3 but is a departure from the general requirement to value stocks at cost less estimated selling price less costs to complete and sell. The Directors believe that unless a policy of valuing stocks at fair value is adopted the accounts would not provide a true and fair view. (ii) Stocks - amounts owed to unallocated account holders As described in note 2.7 above the Company recognises metal stocks owed to unallocated metal account customers within its own stock in the balance sheet with a corresponding liability recorded within creditors. This treatment is in line with industry practice in respect of the operation of unallocated metal accounts. (iii) Revenue recognition and financial instruments The Company adopts the revenue recognition and financial instruments policies as noted above at note 2.5. The Company does not regard any of its transactions as falling within the scope of section 12 of FRS 102 “Other Financial Instrument Issues”. In particular paragraph 12.5 of this section does not apply. As a result, except where the Company’s stated policies themselves would result in the netting off of sales and cost of sales, the gross value of sales and purchase transactions are recorded within turnover and cost of sales respectively in these financial statements. The Directors believe that this approach is the most appropriate in the Company’s circumstances, is in accordance with prevailing generally accepted accounting practice and adopting such a policy helps to maintain a consistent understanding for typical users of these accounts. b) Critical accounting estimates and assumptions The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. (i) Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 15 for the carrying amount of the property plant and equipment, and note 2.10 for the useful economic lives for each class of assets. (ii) Impairment of debtors The Company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of
Page 24
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
3.Judgments in applying accounting policies (continued)
(iii) Taxation The Company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities. Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. Further details are contained in note 12.
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 26
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 27
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
9.Taxation (continued)
There were no factors that may affect future tax charges.
Page 28
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 29
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 30
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
12.Tangible fixed assets (continued)
The Company has a 100% investment in the ordinary share capital of Baird & Co. Private Limited ("PTE"), a company registered in Singapore, for SGD100, with the Sterling equivalent being £53.
Page 31
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 32
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 33
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 34
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Share premium account
Capital redemption reserve Capital redemption reserve represents the nominal value of shares previously repurchased by the Company.
Revaluation reserve
Profit and loss account
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 £63,403 (6 month period to December 2023 - £19,748). Contributions totalling £11,677 (December 2023 - £10,495) were payable to the fund at the balance sheet date.
All amounts are interest free and repayable on demand.
At the period end, included within other debtors, were amounts owed by directors of £162,011 (December 2023 - £3,998). At the period end, the Company owed to its shareholders amounts denominated in metal at a period end fix price equivalent to £344,403 (December 2023 - £273,244). These are included within unallocated metal liabilies and occured at an arms-length basis. During the period companies controlled by the directors had an interest in dividends of £885,760 (6 month period to December 2023 - £885,760). The company has taken advantage of the exemption, under FRS 102 paragraph 1.12 and paragraph 33.1A, from disclosing transactions with key management and from disclosing other related party transactions as they are with other companies that are wholly owned within the Group.
Page 35
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BAIRD & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The parent undertaking is Baird Investments Limited, a Company incorporated in the United Kingdom. The group accounts of Baird Investments Limited are publicly avaliable from Companies House.
The Company does not have an ultimate controlling party.
Page 36
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