Year Ended
Registration number:
Bob Pepper Holdings Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Statement of Comprehensive Income |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Bob Pepper Holdings Limited
Company Information
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Chairman |
Mr R D Pepper |
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Directors |
Mr R A Pepper-Smith Mrs M Pepper-Smith Mrs T M Bullen |
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Registered office |
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Auditors |
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Bob Pepper Holdings Limited
Strategic Report
Year Ended 31 December 2024
The directors present their strategic report for the year ended 31 December 2024.
Principal activity
The principal activity of the group continues to be the design, manufacture and installation of engineered timber frame structures. The group also provides construction services, undertakes property development activities and undertakes the restoration, design and development of classic and race cars.
The group also owns investment property.
Fair review of the business
Trading levels were impacted in 2024 due to the current economic instability caused in part by the political uncertainty during a general election year, along with the continued cost of living crisis, inflation and interest rates impacting the market for new build residential, leisure and commercial properties. Considering the circumstances, the company was well positioned to navigate these challenges
Despite the above the long-term prospects for the company remain strong with the continuing shortage of housing stock dictating that the UK must build significantly more new housing. Timber frame is increasingly seen by clients and developers alike as the preferred technology option to be able to meet government targets whilst delivering high levels of quality, energy performance and sustainability.
The company continues to undertake Research & Development into new products. It remains a core part of the company’s strategy to lead the sector with new innovative products. This program has delivered numerous digital and technical enhancements to the company’s systems and products. The company is committed to continued investment in this area and will continue to innovate and develop unique products to maintain competitive advantage
Management of the Environment, Quality, Health, and Safety continues to be an important priority of the business. During the year the company was successful with renewing its accreditation to PAS 99 incorporating ISO 9001,14001 along with re-accreditation under PEFC (Chain of Custody) & STA Assure Gold Status
The company remains focused on providing a first-class customer service to ensure a high level of customer satisfaction and repeat business.
The directors consider the company to be in a strong trading position, and it has a healthy forward order book for 2025 which will assist in the company to deliver its budgeted sales and forecasting for the forthcoming financial year.
The group's key financial and other performance indicators during the year were as follows:
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Unit |
2024 |
2023 |
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Gross profit margin |
% |
32 |
33 |
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Operating profit |
£'000 |
387 |
376 |
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Net current assets |
£'000 |
6,614 |
6,518 |
Gross profit margin is impacted by turnover mix as disclosed in note 3 to the accounts.
Bob Pepper Holdings Limited
Strategic Report
Year Ended 31 December 2024
Future Developments
The company continues to invest in new plant, machinery and technology and is well placed to take advantage of any improvement in market conditions. Order levels going into the new financial year are encouraging and give confidence regarding the continued growth and improved trading performance that the company will seek to achieve in the coming year.
With the continuing under-supply of housing stock dictating that the UK must build significantly more new housing, the demand for offsite manufactured systems is strong and timber frame is increasingly seen by clients and developers alike as the preferred mainstream build system option to deliver increased housing output whilst delivering quality, energy performance and sustainability.
The prospects for off-site timber frame construction are excellent and with the company’s status as a leading provider of sustainable solutions it expects to consolidate its position as a significant player in the UK Timber Frame Market.
Continued Research & Development activities will open new opportunities for the company as its product range expands further into specialist areas.
Principal risks and uncertainties
Principal risks and uncertainties include:
- Programme delays due to material and labour shortages;
- Rapid inflation of material and labour costs; and
- Potential political and regulatory changes,
The directors continue to proactively monitor and review the position as required and have established controls to enable the company to respond to and mitigate the impact of such risks. Short term fluctuations in raw material prices and labour costs are addressed through well managed procedures to ensure that increases are properly factored into pricing of contracts. The company also has in place robust purchasing policies and seeks to maintain strong relationships with supply chains.
Approved and authorised by the
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Bob Pepper Holdings Limited
Directors' Report
Year Ended 31 December 2024
The directors present their report and the for the year ended 31 December 2024.
Directors of the group
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The company finances its operations through a mixture of retained profits, structured bank debt, asset finance and where necessary to fund working capital requirements, through short-term bank borrowings.
Any potential bad debt is managed by the company’s credit risk insurance policy within its trading terms for its clients currently being underwritten by Atradius.
It manages its cash and borrowing requirements in order to minimise interest expense, whilst ensuring the company has sufficient funds available for the growth of the company.
Investments of cash surpluses are made through banks and companies which fulfil the credit rating criteria approved by the board.
Price risk, credit risk, liquidity risk and cash flow risk
Risk is managed on a day to day basis by the directors. Liquidity risk is managed by ensuring sufficient funds are available to make payments as and when they fall due.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved by the
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Bob Pepper Holdings Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Bob Pepper Holdings Limited
Independent Auditor's Report to the Members of Bob Pepper Holdings Limited
Opinion
We have audited the financial statements of Bob Pepper Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, 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).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2024 and of the group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.
Bob Pepper Holdings Limited
Independent Auditor's Report to the Members of Bob Pepper Holdings Limited
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Bob Pepper Holdings Limited
Independent Auditor's Report to the Members of Bob Pepper Holdings Limited
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Extent to which the audit was considered capable of detecting irregularities, including fraud
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:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our commercial and sector experience and through discussions with the directors and other management. We discussed with the directors and other management the policies and procedures regarding compliance throughout the audit and any relevant correspondence with regulatory bodies. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
The potential effect of these laws and regulations on the financial statements varies significantly.
The group is subject to laws that directly affect the financial statements including financial reporting and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures.
The group is subject to other laws and regulations where the consequences of non-compliance could have an effect on the amounts or disclosures in the financial statements, for instance the result of a litigation claim. We identified the following areas as those most likely to have an effect: employment law, health and safety, data protection and company legislation.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Enquiries of management regarding their knowledge of any non compliance with laws and regulations that could affect the financial statements. As part of these enquiries we also discussed with management whether there have been any known instances, allegations or suspicions of fraud in the year.
• Considering the filings made at Companies House, and any omissions thereon.
• Reviewing health and safety compliance reviews and workplans.
• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale for significant transactions outside the normal course of business.
• Reviewing estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates.
Bob Pepper Holdings Limited
Independent Auditor's Report to the Members of Bob Pepper Holdings Limited
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. 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, collusion, omission or misrepresentation.
We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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Lowin House
Tregolls Road
Cornwall
TR1 2NA
Bob Pepper Holdings Limited
Consolidated Profit and Loss Account
Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
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Operating profit |
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Other interest receivable and similar income |
- |
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Interest payable and similar charges |
( |
( |
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Profit before tax |
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Taxation |
( |
( |
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Profit for the financial year |
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Profit/(loss) attributable to: |
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Owners of the company |
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The above results were derived from continuing operations.
Bob Pepper Holdings Limited
Consolidated Statement of Comprehensive Income
Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Profit for the year |
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Total comprehensive income for the year |
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Total comprehensive income attributable to: |
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Owners of the company |
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Bob Pepper Holdings Limited
Consolidated Balance Sheet
31 December 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Tangible assets |
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Investment property |
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Investments |
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- |
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Other financial assets |
- |
5 |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Capital redemption reserve |
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Revaluation reserve |
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Fair value reserve |
1,899,432 |
1,899,432 |
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Other reserves |
( |
( |
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Profit and loss account |
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Equity attributable to owners of the company |
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Shareholders' funds |
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Approved and authorised by the
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Company Registration Number: 07933260
Bob Pepper Holdings Limited
Balance Sheet
31 December 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Investments |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Profit and loss account |
( |
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Shareholders' funds |
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The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a loss after tax for the financial year of £15,438 (2023 - loss of £8,074).
Approved and authorised by the
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Company Registration Number: 07933260
Bob Pepper Holdings Limited
Consolidated Statement of Changes in Equity
Year Ended 31 December 2024
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Share capital |
Capital redemption reserve |
Revaulation reserve |
Fair value reserve |
Other reserves |
Profit and loss account |
Total equity |
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At 1 January 2024 |
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( |
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Profit for the year |
- |
- |
- |
- |
- |
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Total comprehensive income |
- |
- |
- |
- |
- |
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Dividends |
- |
- |
- |
- |
- |
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At 31 December 2024 |
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( |
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Share capital |
Capital redemption reserve |
Revaluation reserve |
Fair value reserve |
Other reserves |
Profit and loss account |
Total equity |
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At 1 January 2023 |
|
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|
( |
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Profit for the year |
- |
- |
- |
- |
- |
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Total comprehensive income |
- |
- |
- |
- |
- |
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At 31 December 2023 |
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( |
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Bob Pepper Holdings Limited
Consolidated Statement of Cash Flows
Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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Profit on disposal of tangible assets |
( |
( |
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Finance income |
|
( |
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Finance costs |
|
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Income tax expense |
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||
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Working capital adjustments |
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Increase in stocks |
( |
( |
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(Increase)/decrease in debtors |
( |
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Increase/(decrease) in creditors |
|
( |
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Decrease in deferred income, including government grants |
( |
( |
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Cash generated from operations |
( |
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Income taxes paid |
( |
( |
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Net cash flow from operating activities |
( |
( |
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Cash flows from investing activities |
|||
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Interest received |
- |
|
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Acquisitions of tangible assets |
( |
( |
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Proceeds from sale of tangible assets |
|
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Acquisition of investment properties |
( |
( |
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Net cash flows from investing activities |
( |
( |
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Cash flows from financing activities |
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Interest paid |
( |
( |
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Repayment of bank borrowing |
( |
( |
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Payments to finance lease creditors |
( |
( |
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Net cash flows from financing activities |
( |
( |
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Net decrease in cash and cash equivalents |
( |
( |
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Cash and cash equivalents at 1 January |
|
|
|
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Cash and cash equivalents at 31 December |
3,038,894 |
3,548,837 |
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Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
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 years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The functional currency of the group is considered to be pounds sterling because this is the currency of the primary economic environment in which the company operates.
Basis of consolidation
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2024.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Certain subsidiaries, as outlined in the investments note, have not been consolidated in the group financial statements due to their immaterial nature and size.
Summary of disclosure exemptions
FRS102 allows a qualifying entity certain disclosure exemptions subject to certain conditions which the company has complied with. This includes the notification of, and no objection to, the use of such exemptions by the company’s shareholders.
On this basis the company has taken advantage of the following exemptions:
i) From preparing a statement of cash flows, on the basis that it is a qualifying entity and the consolidated statement of cash flows included in these financial statements includes the company’s cash flows;
ii) From the financial instrument disclosures, required under FRS102 paragraphs 11.39 to 11.48A as the information is provided in the consolidated financial statement disclosures.
The group and company have also taken advantage of the exemption under FRS102 paragraph 33.1A in respect of transactions between members of the group, on the basis that the group companies are 100% owned.
The company has also 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 made a loss after tax for the year of £15,437 (2023 - loss of £8,073).
Revenue recognition
Turnover represents:
Amounts receivable on staged levels of completion during the design and manufacture of engineered timber frame structures, net of trade discounts, VAT and other sales related taxes.
Amounts chargeable in respect of the sale of goods and services, net of trade discounts, VAT and other sales related taxes. Turnover from the sale of development property is recognised on completion of the underlying sales contract.
Other operating income represents:
Rental income and service recharges recognised on an accruals basis in line with the lease agreement.
Amortisation of government grants to match the consumption of the underlying assets.
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Government grants
Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met, usually on submission of a valid claim for payment.
Government grants are classified as either a capital grant or revenue grant on initial recognition.
Capital grants are recognised with reference to the accruals basis. Such grants are credited to profit and loss and disclosed as other operating income on a systematic basis, being with reference to the impairment losses and disposals of investment properties. Any remaining capital grants are being amortised over a period of 50 years.
Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.
Research and development
Research and development expenditure is charged directly to the profit and loss account in the year in which it is incurred.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Tangible assets
Tangible assets are stated in the statement of financial position at cost or valuation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
On transition to FRS102 the directors elected to take the exemption under paragraph 35.10(d) of FRS102 to treat the freehold land and buildings of the group as deemed cost.
Revaluation of freehold property
Properties are carried at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent impairment losses.
Revaluations are performed with sufficient regularity to ensure that 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 the statement of 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.
Depreciation
Freehold buildings are depreciated straight line over 50 years.
Given that buildings are kept in full repair the directors are of the opinion that their residual value is not less than cost and therefore no depreciation charge for the year ended 31 December 2022 actually arises.
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction, over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Large plant and machinery |
10% p a straight line |
|
Other plant and machinery |
20 - 50% p a reducing balance |
|
Fixtures and fittings |
20% p a reducing balance |
|
Office equipment |
20 - 50% p a reducing balance |
|
Motor vehicles |
25% p a reducing balance |
Investment property
Investments
Investments represent the company's investment in subsidiary undertakings, which are held in the financial statements at cost less impairment.
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Financial instruments
Classification
Recognition and measurement
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, which include trade and other receivables, cash and bank balances, and loans to related parties, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Basic financial liabilities, including trade and other payables, loans and borrowings, and loans from related parties 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.
Impairment
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Critical accounting judgements and estimation uncertainty
Management evaluate estimates and judgements on an annual basis, and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The key accounting judgements applied by management are as outlined below:
Revenue recognition on stage of completion
Where revenue and costs in relation to contract work can be reliably estimated the company will recognise both income and expenditure with reference to stage of completion. If the outcome cannot be reliably measured then all costs are expensed and revenue is only recognised to the extent that such costs are recoverable. Management regularly assess the performance of contract work to ensure income and expenditure is being accurately recorded in the financial statements.
Depreciation and useful economic lives of tangible assets
Management have carefully considered the depreciation estimates applied on the tangible assets held by the company. This assessment is performed on an annual basis, and would be amended when necessary to reflect current estimates, based on technological advancements, future investments, economic utilisation and the physical condition of each asset.
Recognition of government grants
Management have considered the recognition basis for capital grant intended to facilitate the construction of investment property, and on the basis that the grant is attached to the construction of the properties it is being recognised through the profit and loss in conjunction with any impairment losses or disposals of investment properties. Any remaining capital grant is being amortised over a period of 50 years.
|
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sales and work done |
|
|
|
Property development sales |
|
- |
|
|
|
The analysis of the group's Turnover for the year by market is as follows:
|
2024 |
2023 |
|
|
UK |
|
|
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2024 |
2023 |
|
|
Government grants |
|
|
|
Rental income |
|
|
|
Miscellaneous other operating income |
|
|
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Operating lease expense - plant and machinery |
|
|
|
Operating lease expense - other |
76,561 |
55,656 |
|
Profit on disposal of property, plant and equipment |
( |
( |
|
Auditor's remuneration - The audit of the company's annual accounts |
17,700 |
17,350 |
|
Depreciation of owned assets |
166,197 |
143,353 |
|
Depreciation of assets held under finance lease and hire purchase contracts |
67,683 |
110,197 |
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
Sales, marketing and distribution |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
232,194 |
224,163 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2024 |
2023 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
|
Auditor's remuneration |
|
2024 |
2023 |
|
|
Audit of these financial statements |
17,700 |
17,350 |
|
Other fees to auditors |
||
|
All other non-audit services |
|
|
£11,100 (2023 - £11,100) of the fee for auditing the financial statements relates to the company.
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Interest income on bank deposits |
- |
|
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
|
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
|
- |
|
83,372 |
61,957 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
|
|
Tax expense in the income statement |
|
|
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of revenues exempt from taxation |
( |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
- |
|
Deferred tax expense (credit) relating to changes in tax rates or laws |
- |
( |
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
(95) |
(471) |
|
Increase (decrease) in UK tax from adjustment for prior periods |
|
- |
|
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
|
2024 |
Asset |
Liability |
|
Capital allowances in excess of depreciation |
- |
|
|
Deferred tax on property revaluations |
- |
|
|
Deferred tax on fair value movements |
- |
|
|
Tax losses available |
|
- |
|
Inter-group unrealised profits |
|
- |
|
Other timing differences |
|
- |
|
|
|
|
2023 |
Asset |
Liability |
|
Capital allowances in excess of depreciation |
- |
|
|
Deferred tax on property revaluations |
- |
|
|
Deferred tax on fair value movements |
- |
|
|
Tax losses available |
|
- |
|
Inter-group unrealised profits |
|
- |
|
Other timing differences |
|
- |
|
|
|
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Tangible assets |
Group
|
Freehold land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Plant and machinery |
Total |
|
|
Cost or valuation |
|||||
|
At 1 January 2024 |
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
Disposals |
- |
- |
( |
- |
( |
|
At 31 December 2024 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 January 2024 |
- |
|
|
|
|
|
Charge for the year |
- |
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
- |
( |
|
At 31 December 2024 |
- |
|
|
|
|
|
Carrying amount |
|||||
|
At 31 December 2024 |
|
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
|
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Revaluation
The fair value of the group's freehold land and buildings was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
The current valuations of the land and building are not independent and are carried out by T Bullen.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2024 |
2023 |
|
|
Plant and machinery |
37,400 |
29,701 |
|
Motor vehicles |
183,531 |
243,618 |
|
220,931 |
273,319 |
|
Investment properties |
Group
|
2024 |
|
|
At 1 January 2024 |
|
|
Additions |
|
|
At 31 December 2024 |
|
The fair value of the company's investment property was valued on 31 December 2024 by Mrs T Bullen RICS who is internal to the company. The basis of this valuation was open market value.
Had this class of asset been measured on a historical cost basis the carrying amount would have been £5,308,024 (2023 - £5,296,695) representing historic cost of £7,608,222 less impairment loss of £2,300,198 (2023 historic cost £7,596,883 less impairment of £2,300,198). The impairment loss was offset by an equal and opposite release of deferred grant credit.
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Investments |
Company
|
2024 |
2023 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 January 2024 and 31 December 2024 |
|
|
Provision |
|
|
Carrying amount |
|
|
At 31 December 2024 |
|
|
At 31 December 2023 |
|
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Details of undertakings
Details of the investments in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Frame Homes (South West) Limited (included in these consolidated accounts). This company is incorporated in England and Wales. The group holds 100% of the ordinary share capital. The principal activity of the company is the design and manufacture of engineered timber frame structures for domestic housing and flats (private and social), student and key workers accommodation, Ministry of Defence, hospitals, hotels, schools, leisure and other commercial buildings.
Practical Developments (South West) Limited (included in these consolidated accounts). This company is incorporated in England and Wales. The group holds 100% of the ordinary share capital. The principal activity of the company is that of property developers, manufacturers of roof trusses and commercial property letting.
Millennium Motorsport (UK) Limited (included in these consolidated accounts). This company is incorporated in England and Wales. The group holds 100% of the ordinary share capital. The principal activity of the company is the purchase and restoration of classic and race cars and the design and development of track race cars.
Frame UK Limited (excluded from these consolidated accounts). This company is incorporated in England and Wales. The group holds 100% of the ordinary share capital. The company is dormant. The accounting date of the company is 31 December. At the 31 December 2024 the company had capital and reserves of £1 and a profit for the year of £nil (2023 - £nil).
Frame Homes Limited (excluded from these consolidated accounts). This company is incorporated in England and Wales. The group holds 100% of the ordinary share capital. The company is dormant. The accounting date of the company is 31 December. At the 31 December 2024 the company had capital and reserves of £2 and a profit for the year of £nil (2023 - £nil).
Millennium Classics & Restorations Limited (excluded from these consolidated accounts). This company is incorporated in England and Wales. The group holds 100% of the ordinary share capital. The company is dormant. The accounting date of the company is 31 December. At the 31 December 2024 the company had capital and reserves of £1 and a profit for the year of £nil (2023 - £nil).
Millennium Classics Limited (excluded from these consolidated accounts). This company is incorporated in England and Wales. The group holds 100% of the ordinary share capital. The company is dormant. The accounting date of the company is 31 December. At the 31 December 2024 the company had capital and reserves of £1 and a profit for the year of £nil (2023 - £nil).
All of the above companies have the same registered office as the parent company.
For the year ending 31 December 2024 the following subsidiaries were entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies:
Practical Developments (South West) Limited
Millennium Motorsport (UK) Limited
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Stocks |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Raw materials and consumables |
|
|
- |
- |
|
Work in progress |
|
|
- |
- |
|
Other inventories |
|
|
- |
- |
|
|
|
- |
- |
|
|
Debtors |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Trade debtors |
|
|
- |
- |
|
Amounts owed by group undertakings |
- |
- |
|
|
|
Other receivables |
825,182 |
652,118 |
242,982 |
110,000 |
|
Prepayments and accrued income |
|
|
|
|
|
|
|
|
|
|
Trade debtors are stated after provisions for impairment at the year end of £12,750 (2023 - £86,448). Impairment losses recovered and recognised as a credit in the year amounted to £6,993 (2023 - £nil).
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Cash on hand |
|
|
- |
- |
|
Cash at bank |
|
|
|
|
|
|
|
|
|
|
|
Creditors |
|
Group |
Company |
||||
|
Note |
2024 |
2023 |
2024 |
2023 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
|
Trade creditors |
|
|
- |
- |
|
|
Amounts due to group undertakings |
- |
- |
|
|
|
|
Corporation tax |
79,631 |
58,377 |
- |
- |
|
|
Social security and other taxes |
|
|
|
|
|
|
Other creditors |
|
|
|
|
|
|
Accrued expenses |
|
|
|
|
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
|
Deferred income |
|
|
- |
- |
|
|
2,750,995 |
2,945,135 |
- |
- |
||
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Loans and borrowings |
|
Group |
||
|
2024 |
2023 |
|
|
Current loans and borrowings |
||
|
Bank borrowings |
|
|
|
HP and finance lease liabilities |
|
|
|
|
|
|
|
Group |
||
|
2024 |
2023 |
|
|
Non-current loans and borrowings |
||
|
Bank borrowings |
|
|
|
HP and finance lease liabilities |
|
|
|
|
|
|
The bank borrowings are secured by way of a debenture over all assets of the group and a first legal charge over the freehold property and certain investment properties held by the group.
The obligations under finance lease are secured on the assets to which they relate.
|
Reconciliation of net debt |
|
At 1 January 2024 |
Cash flow |
Other non cash changes |
At 31 December 2024 |
|
|
£ |
£ |
£ |
£ |
|
|
Cash on hand |
35,512 |
867 |
- |
36,379 |
|
Cash at bank |
3,513,325 |
(510,810) |
- |
3,002,515 |
|
Cash and cash equivalents |
3,548,837 |
(509,943) |
- |
3,038,894 |
|
Bank loans less than one year |
(101,525) |
101,521 |
(103,574) |
(103,578) |
|
Finance lease liabilities less than one year |
(93,152) |
130,744 |
(99,146) |
(61,554) |
|
Bank loans more than one year |
(926,484) |
103,574 |
(822,910) |
|
|
Finance lease liabilities more than one year |
(206,926) |
- |
46,377 |
(160,549) |
|
Net debt |
2,220,750 |
(277,678) |
(52,769) |
1,890,303 |
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
- |
|
The current lease arrangements of all group companies are short term arrangements with no ongoing disclosable liability.
Operating leases - lessor
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
These financial commitments relate to amounts due from leaseholders within the investment properties.
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Deferred tax and other provisions |
Group
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Increase (decrease) in existing provisions |
( |
( |
|
At 31 December 2024 |
|
|
|
|
||
Details of the composition of deferred tax balances is given in note 11.
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £12,473 (2023 - £11,683) were payable to the scheme at the end of the year and are included in creditors.
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
6,353,100 |
|
6,353,100 |
|
Reserves |
Group
Capital redemption reserve
The capital redemption reserve records the nominal value of shares repurchased by the group.
Revaluation reserve
The revaluation reserve reflects the cumulative upward revaluation of trading property held, net of any deferred tax provided against unrealised gains at the balance sheet date. The balance on this reserve is unrealised and non-distributable.
The revaluation reserve has been separated from the fair value reserve.
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Fair value reserve
The fair value reserve reflects the cumulative upward fair value movements of investment property held, net of any deferred tax provided against unrealised gains at the balance sheet date. This has been segregated from the profit and loss account where this relates to net unrealised gains that are non-distributable.
Other reserves
The other reserve represents the difference between the nominal value of shares issued and the nominal value of shares received on creation of the group.
Profit and loss account
The profit and loss account reflects the group's accumulated earnings less dividends paid and payable.
|
Financial instruments |
Group
Categorisation of financial instruments
|
2024 |
2023 |
|
|
Financial assets measured at fair value through profit or loss |
|
|
Financial assets measured at fair value comprise of investment properties.
Bob Pepper Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Related party transactions |
Group
|
Transactions with directors |
|
2024 |
At 1 January 2024 |
Advances to director |
Repayments by director |
At 31 December 2024 |
|
Mr R D Pepper |
||||
|
Loan account - (interest free, unsecured and repayable on demand |
- |
|
- |
|
|
Mr R A Pepper-Smith |
||||
|
Loan account (interest free, unsecured and repayable on demand) |
|
- |
( |
- |
|
2023 |
At 1 January 2023 |
At 31 December 2023 |
|
Mr R A Pepper-Smith |
||
|
Loan account (interest free, unsecured and repayable on demand) |
|
|
Summary of transactions with other related parties
During the year the group made sales to companies under common control of £nil (2023 - £52,072) and received services from companies under common control to a value of £85,469 (2023 £110,776).
Included in other operating income in the year are charges of £90,000 (2023 - £nil) to a partnership for management services rendered.
At the balance sheet date a total of £90,000 was owed to the group in respect sales made in the year (2023 £56,073).
Key management personnel
There are no key management personnel outside of the Directors. Details of Directors Remuneration is provided in note 7 to the financial statements.
|
Controlling party |
The ultimate controlling party is