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Beechfield Brands Holdings Limited
Company Information
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Beechfield Brands Holdings Limited
Contents
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Beechfield Brands Holdings Limited
Group Strategic Report
For the year ended 31 December 2024
Introduction
The Directors present the Strategic Report for the year ended 31 December 2024. Principal business activities Beechfield Brands designs, manufactures and distributes headwear, bags and accessories to the rebranding, personalisation and promotional industry via a network of distribution partners operating throughout Europe. The product range comprises approximately 3100 SKUs across 600 styles sold under four leading brands: Beechfield®, BagBase®, Quadra® and Westford Mill®. All Beechfield Brands products are ‘Designed for Decoration’ with the aim of easy rebranding, by trade re-processors, such as printers and embroiderers. Business review The directors acknowledge that the group's performance in 2024 has been exceptional. This was largely driven by an unsustainably low cost base following delayed investment in specific areas of the business. This was particularly evident in recruitment, where strong competition for talent meant that we were unable to expand some of our teams to the level required. As a result, significant pressure was placed on our existing staff, and the directors wish to express their sincere gratitude to all employees for their exceptional dedication and hard work throughout the year. Looking ahead to 2025, the directors remain committed to investing in the future of the business. Planned investments include expanding staffing levels, exploring opportunities in artificial intelligence, enhancing training, and adopting new technologies to improve products, strengthen relationships, and optimise processes and resource utilisation. This renewed focus on investment will result in a higher and more appropriate cost base, providing a solid foundation to support the group's long term objectives. Consequently, the directors expect the group's performance to return to more sustainable and modest levels in the coming periods. The 2024 year progressed against a backdrop of persistent economic challenges and softening consumer demand. Geopolitical tensions, chiefly conflicts in Ukraine and the Middle East, continued to disrupt global supply chains causing longer lead times and pushing up freight and insurance costs. Political tensions, both domestic and across the globe also contributed to the price volatility of energy and FX markets helping to keep energy and raw-material high, fuelling continued inflation. A tight labour market continued to make recruiting and retaining skilled people more difficult, adding further pressure through higher employment costs. Cyber risk also became an increasingly acute threat through the year. Post Brexit trading arrangements continued to add administrative burden to the logistics network. Despite these many challenges the Group delivered a strong performance. Net assets increased from £32.2m in 2023 to £35.4m in 2024, an increase of 10.0%. Turnover grew from £61.5m to £65.5m, an increase of 6.6%. Investment in process optimisation, digital and IT systems continued in the year. This will position the Group to better meet the expectations and requirements of our customers and facilitate relationships with our suppliers and other stakeholders with efficiency gains and service quality improvements. We continue to adopt technologies that bolster operational resilience and cyber security, supporting and protecting the Group’s strategic ambitions. Our commitment to people development remains central to our strategy. We provide a broad array of training programmes and career progression pathways, recognising that a skilled, engaged workforce is fundamental to our long-term success.
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Beechfield Brands Holdings Limited
Group Strategic Report (continued)
For the year ended 31 December 2024
Principal risks and uncertainties
Management regularly reviews the principal risks and uncertainties facing the Group. The main risks to the Group have been identified as follows: • Talent Attraction and Retention • Cyber Threat Risk • Supply Chain Integrity and Resilience • Intellectual Property • Quality Control and Standards • Key Supplier Dependency and Sourcing Strategy • Currency Exchange Fluctuations • Impact of Global Events • Competitive Pressure • Reputation Management • Cost Increases and Inflation • Wage Inflation These risks are monitored and reviewed on a regular basis; processes are put in place and actions are taken to minimise their impact. Key performance indicators Management uses a range of performance measures to monitor and manage the business. Key financial and non financial indicators are: • Profit ratios. Gross profit percentage was 24.8% (2023 - 25.1%) and net profit percentage was 9.3% (2023 - 9.1%). • Activity ratios. Debtor days were reported at 49 days for 2024, an increase on the prior year (38 days in 2023). Creditor days increased to 39 days in 2024 (30 days in 2023). Stock holding days increased to 145 days for 2024 (2023 - 141 days). Corporate Social Responsibility Statement In compliance with Section 172 (1) of the Companies Act 2006. We believe businesses have a fundamental responsibility to help solve the world's most pressing social and environmental challenges, so have developed an ambitious 10 year vision to build a better business. By 2032 Beechfield Brands aims to transform its sourcing and environmental impact, be recognised as a top 10 company to work for and enrich communities locally and globally through targeted giving. To help achieve this vision we are guided by the B Corp framework to continuously improve our impact. B Corp certified organisations meet high standards of social and environmental impact, are committed to accountability, transparency and continuous improvement, and form a global movement to engender an inclusive, equitable and regenerative economic system.
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Beechfield Brands Holdings Limited
Group Strategic Report (continued)
For the year ended 31 December 2024
Employees
Providing an environment where our team can thrive is incredibly important to us. We offer comprehensive health and wellness programmes for all employees including a walking club, a badminton club, a climbing club and an employee assistance service. We communicate key strategic decisions across the Group via team briefings and quarterly meetings, as well as informally on a regular basis through noticeboards and a HR software platform. We aim to participate in the Best Companies to Work For list and be accredited by Best Companies™. We are proud to pay 100% of employees above The Real Living Wage, set by the Living Wage Foundation, and are committed to continuing to pay the Real Living Wage in the long term. Customers The business engages with its customers from the new product development phase through to subsequent account management. We have formal quality control mechanisms in place to ensure the suitability and technical capability of our supply partners, and a comprehensive privacy policy to protect customers' data. Environment Environmental concerns have led to the introduction of SECR (Streamlined Energy and Carbon Reporting) compliance, which can be found later in this report. The Group is continually reviewing its systems and procedures to reduce energy consumption. More detail can be found within the Group’s impact assessment. In addition to measuring scope 1 and 2 emissions, we have continued efforts to address scope 3 emissions. This initiative involves mapping of our brand’s supply chain and collecting primary footprint data in collaboration with third parties. We have fully mapped out 1 brand, have made good progress on a second and will start mapping for our other 2 brands later in the year. Our objective is to calculate the product impact through a comprehensive Life Cycle Assessment (LCA) and use this data to identify impact areas. Through our four brands, Beechfield® Original Headwear, BagBase®, Westford Mill® and Quadra®, we have pledged 1% of current and future annual sales to the preservation and restoration of the natural environment through our membership with 1% for the Planet®. Since joining this initiative in 2018, we have become one of the largest 1% for the Planet Business members in the UK. As part of our 1% for the Planet® membership we are founding sponsors of the Carbon Literacy Project. The Carbon Literacy Project’s aim is to advance education in conservation, protection, and improvement of the physical and natural environment. We are an accredited Carbon Literate Bronze Organisation. We are working towards achieving a Carbon Literate Silver Organisation accreditation and are organising Carbon Literacy training for all of our staff in 2025. As part of our vision, we are working to increase the proportion of our materials which come from certified sustainable sources, and packaging which is kerbside recyclable year on year. We are committed to improving cotton farming practices globally with Better Cotton®. As of 2023 we have been proud members of Better Cotton®. We are committed to sourcing 70% of our cotton as Better Cotton® by 2026. In tandem with maximising the use of sustainable materials, we aim to reduce user consumption. That is why purposeful design, durability and quality sustainable fabrics are at the forefront of every style we design.
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Beechfield Brands Holdings Limited
Group Strategic Report (continued)
For the year ended 31 December 2024
Suppliers
The Group is committed to upholding the highest ethical and environmental standards throughout our entire supply chain reflecting our purpose: to every day make a positive impact on the world by supporting a better life for everyone touched by Beechfield. We operate according to an ethical policy that protects and rewards every individual involved in the manufacture and supply of our products. The policy references, respects and enhances local laws and regulations, with regard to wages, health and safety, workers' welfare, and human rights, and it expressly forbids the use of child workers or coerced/forced labour. This policy allows our customers to buy our products in the knowledge that they are partnering with a responsible company that is focused on working to minimise the negative impact of the textile industry on the environment. Our field based staff carry out inspections on all our manufacturing partners to ensure that our ethical standards are constantly maintained. In addition to our own visits, we also commission third party social compliance audits, in accordance with SA8000 guidelines. We recognise that a large proportion of our impact lies with our supply chain. We endeavour to protect the environment through sound environmental practices. We ensure that our manufacturing partners meet or exceed all local environmental laws and regulations, and we promote energy efficiency and the reduction of waste at every stage of production. We believe in the power of collaboration and plan to engage with our suppliers in the coming year via surveys and interviews to learn from and support them in continuously improving our collective impact on people and planet. Community In the community, the business continually employs local skills, and has supported a variety of local causes, including significant financial contributions to local charities. The business is committed to being an inclusive employer and recognises the value of having a diverse workforce. We formally track the diversity metrics of our team and provide training on Diversity, Equality, and Inclusion topics. Our DEI committee continues to progress our goals. The Group is focused on giving something back to the communities in which we operate. We support several initiatives in the UK and abroad across a range of causes important to us, including amateur and junior sports clubs, environmental groups, homeless charities, and international humanitarian organisations. We provide support to these groups through the supply of products and cash donations. Additionally, every employee is offered two paid days per year to volunteer for local charitable causes. Our goal for the coming year is to build a framework to measure and report on our donations publicly. The Directors' receive regular updates about our performance in relation to our vision and our sustainability commitments and always considers the impact on the environment and people when making key decisions.
This report was approved by the board and signed on its behalf.
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Beechfield Brands Holdings 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 Group Strategic Report, the Directors' Report and the consolidated 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 Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £6,092,121 (2023 - £5,578,644).
Dividends totalling £2,206,000 paid during the year (2023 - £Nil). A final dividend of £544,000 was declared (2023 - £Nil).
The Directors who served during the year were:
The Group continues to strive to meet the highest standards of social and environmental performance, public transparency, and legal accountability to balance profit and purpose.
Information on engagement with suppliers, customers and others is contained in the Strategic Report.
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Beechfield Brands Holdings Limited
Directors' Report (continued)
For the year ended 31 December 2024
The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 require large unquoted groups that have consumed more than 40,000 kilowatt-hours (kWh) of energy in the reporting period to include energy and carbon information.
In line with this requirement, our Streamlined Energy and Carbon Reporting disclosures for 2024 are detailed in the table below: Carbon Reporting Methodology • All figures relate to the UK and cover the calendar year in 2023 and 2024 and the operational control approach was used to define our reporting boundary. • Scope 1 covers all direct emissions from activities owned or controlled by us. Specifically, this includes natural gas consumption at our facilities and fuel consumption within our vehicle fleet. • Scope 1 emissions associated with natural gas consumption were calculated using primary kWh data multiplied by the appropriate BEIS emission factor. • Scope 1 emissions associated with vehicle fleet were calculated using derived kWh figures multiplied by the appropriate BEIS emission factor. kWh was derived based on the price of fuel purchased or the mileage claimed. • Scope 2 disclosures follow the location-based reporting approach and cover all indirect emissions associated with electricity consumption within our facilities. • Scope 2 emissions associated with electricity consumption were calculated using primary kWh data multiplied by the appropriate BEIS emission factor. • The energy consumption figures disclosed fully align with the emission data reported. • Emission intensity was calculated as our total Scope 1 and 2 footprint per million £ revenue.
Energy efficiency measures implemented within the reporting year
The Group has continued to implement a number of energy efficiency initiatives in the period. In 2024 we have continued to focus our efforts on updating our company and staff car fleets. We have a policy to promote the use of EVs for both our company and staff vehicles. In 2024 we brought an additional 6 EVs into our company car fleet. We also assisted 3 members of staff to transition to EVs via our Salary Exchange scheme. The Group continues to provide on-site electricity charging for free to all EV car drivers at our premises at Silverpoint. In 2023 we changed our premises electricity tariff to 100% renewable energy, 2024 was our first full year on this tariff. In addition, we had a full year of 100% renewable gas. In 2023, we changed our premises’ waste service partner to improve our waste recycling rates. 2024 was our first full year whereby 100% of our waste was diverted from landfill.
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Beechfield Brands Holdings Limited
Directors' Report (continued)
For the year ended 31 December 2024
There have been no significant events affecting the Group since the year end.
The auditors, Hurst Accountants Limited, will 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.
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Beechfield Brands Holdings Limited
Independent Auditors' Report to the Members of Beechfield Brands Holdings Limited
We have audited the financial statements of Beechfield Brands Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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Beechfield Brands Holdings Limited
Independent Auditors' Report to the Members of Beechfield Brands Holdings Limited (continued)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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Beechfield Brands Holdings Limited
Independent Auditors' Report to the Members of Beechfield Brands Holdings 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 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 Group 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 Group operates; the control environment and business performance including key drivers for performance targets.
∙The outcome of enquiries of 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 Group'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 Group operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, tax legislation, or which had a fundamental effect on the operations of the Group, 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 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.
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Beechfield Brands Holdings Limited
Independent Auditors' Report to the Members of Beechfield Brands Holdings 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.
∙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 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.
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 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.
for and on behalf of
Chartered Accountants & Statutory Auditors
3 Stockport Exchange
Cheshire
SK1 3GG
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Beechfield Brands Holdings Limited
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2024
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Beechfield Brands Holdings Limited
Registered number: 05661581
Consolidated Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 35 form part of these financial statements.
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Beechfield Brands Holdings Limited
Registered number: 05661581
Company Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 35 form part of these financial statements.
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Beechfield Brands Holdings Limited
Consolidated Statement of Changes in Equity
For the year ended 31 December 2024
Consolidated Statement of Changes in Equity
For the year ended 31 December 2023
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Beechfield Brands Holdings Limited
Company Statement of Changes in Equity
For the year ended 31 December 2024
Company Statement of Changes in Equity
For the year ended 31 December 2023
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Beechfield Brands Holdings Limited
Consolidated Statement of Cash Flows
For the year ended 31 December 2024
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Beechfield Brands Holdings Limited
Consolidated Analysis of Net Debt
For the year ended 31 December 2024
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Beechfield Brands Holdings Limited is a private company limited by share capital incorporated in England, registered number 05661581. The address of the registered office and principal place of business is Silverpoint, Moor Street, Bury, BL9 5AQ.
The principal activity of the Company is that of a holding company. The principal activity of the Group continued to be the wholesale distribution of headwear, bags and associated goods.
2.Accounting policies
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 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the Group's accounting policies (see note 3). The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The Company has taken advantage of the exemption allowed under FRS 102 section 1.12 (b) and has not presented its own Statement of Cash Flows in these financial statements. The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Group and its own subsidiaries ("the Group") as they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
2.Accounting policies (continued)
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the profit and loss account over its useful economic life of 20 years.
Software is initially recognised at cost. After recognition, under the cost model. it is measured at cost less any accumulated amortisation and any accumulated impairment losses.
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The Group 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 Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
2.Accounting policies (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:
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.
Included within freehold property is an amount relating to land which as per accounting standards has not been depreciated.
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.
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
2.Accounting policies (continued)
Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
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 profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
2.Accounting policies (continued)
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Functional and presentation currency
Transactions and balances
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Provision for discontinued and slow moving stock The Group reviews its stocks to assess for discontinued stock lines and slow moving stock lines. In determining whether a provision for discontinued and slow moving stocks should be recorded in profit or loss, the Group makes judgements as to the future saleability of the product and the estimated net realisable value for such product. Accordingly, provisions are made where the net realisable value is less than the cost. The carrying value of stocks at the year end was £21,744,735 (2023 - £17,814,891). Should this estimate vary, the profit or loss and balance sheet of the following years could be impacted.
Analysis of turnover by country of destination:
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 26
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 27
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
There were no factors that may affect future tax charges.
Page 28
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 29
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 30
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 31
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 32
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 33
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Page 34
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Beechfield Brands Holdings Limited
Notes to the Financial Statements
For the year ended 31 December 2024
Share premium account
Capital redemption reserve
Other reserves
Profit and loss account
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from
those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £379,718 (2023 - £216,822). Contributions totalling £127,639 (2023 - £105,749) were payable to the fund at the balance sheet date.
The ultimate controlling party of Beechfield Brands Holdings Limited group is R McHugh.
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