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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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BARONIE UK LIMITED
COMPANY INFORMATION
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BARONIE UK LIMITED
CONTENTS
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BARONIE UK LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present the Strategic Report for the year ended 31 December 2024.
The results for the year are set out in the profit and loss account, which shows a profit before tax for the year of £13,300,458. Net assets have increased to £25,152,862 at December 2024 from £15,227,521 at December 2023.
Following the previous year's results, the Group has focused on ensuring that our commercial strategy is a sustainable one. The success of this can be seen in our results. The surge in commodity prices, energy and labour charges, due to market increases, were proactively managed by the Group in order to ensure that the Group did not suffer as a result of the market impacts. The Group remains focused on improving its margins by controlling costs and improving productivity.
Financial risk management objectives and policies
The Group uses various financial instruments. These included intra-group cash pool facility and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations. The existence of these financial instruments exposes the Group to a number of financial risks, which are described in more detail below. The main risks arising from the Group's financial instruments are currency risk, liquidity risk, and credit risk. The directors review and agree policies for managing each of these risks and they are summarised below. Currency risk The Group is exposed to translation and transaction foreign exchange risk. However, this is reduced as export sales are priced and invoiced in UK Sterling and Euros. Liquidity risk The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest in cash assets safely and profitably. The Group's policy throughout the period has been to utilise its intra-group cash pool facility when required. Credit risk The Group's principal financial assets are cash and trade debtors. The principal credit risk arises from its trade debtors. In order to manage credit risk the directors set limits for customers based on a combination of payment history and third part credit references. Financial instruments The Group does not actively use financial instruments as part of its risk management. It is exposed to the usual credit risk and cash flow risk associated with selling on credit and managed this through credit control procedures.
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BARONIE UK LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors have monitored the progress of the Group strategy and the individual strategic elements by reference to certain key performance indicators:
- EBIT for the year amounted to £13,587,875 (2023 - £7,953,330) which provided significant growth in comparison to the prior year.
The directors of the Group, as those of all UK companies, must act in accordance with a set of duties. These duties are detailed in section 172 of the UK Companies Act 2006 which are summarised as follows; A director of a company must act in a way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its shareholder as a whole and, in doing so have regard (amongst other matters) to;
• The likely consequences of any decisions in the long term; • The interest of the Group's employees; • The need to foster the Group's business relationships with suppliers, customers and others; • The impact of the Group's operations on the community and environment; and • The desirability of the Group maintaining a reputation for high standards of business conduct All of our directors are briefed on their duties and if necessary, they can seek professional advice from an independent adviser/expert. It is of utmost importance that our directors fulfil their duties through the governance framework that guides the organisation's daily decision making. The following paragraphs summarise how the directors fulfil their duties; Risk Management The senior management team meets weekly to review performance and assess risks facing the organisation. The aims of these meetings are to; • Ensure that adequate and efficient processes are in place to identify, report and monitor risks. • Raise risk awareness and ensure there is appropriate risk management within the organisation. • Establish policies for risk management. • Ensure that the most effective procedures are put in place to mitigate any risks identified. • Use Risk Management models such as TARA to manage risk. Our People The Group embraces responsibility for its action and strives to make a positive impact on all of its employees. It is important to us that our day-to-day activities align with the expectations of our people; we meet these expectations through continuous training and development of our employees to ensure they are able to meet their full potential. We work tirelessly with our teams to ensure that our factory runs to the highest possible safety, hygiene and ethical standards so that our company values of Opportunity, Stability, Commitment, Teamwork, Responsibility and Safety are achieved.
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BARONIE UK LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Business Relationships Our strategy for growth is to sell our existing products into new export markets and to introduce new product development into our existing customers and markets. In order to achieve this strategy, we must maintain and develop strong business relationships. Our suppliers are key to us achieving our growth strategy and are highly valued by the Group. We work closely with our key suppliers, ensuring their businesses run to the highest possible safety, hygiene and ethical standards so that our shared values are achieved. Community and Environment The local and wider communities with which we interact with are at the heart of the Group. As a large employer in the local community, we take our responsibilities very seriously. Through providing sustainable employment we strengthen and support the local community.
This report was approved by the board and signed on its behalf.
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BARONIE UK 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 judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 £9,925,341 (2023 - £5,930,592).
The Directors recommended that no dividend should be declared for the year (2023 - £Nil).
The directors who served during the year were:
The Group's main focus in the outlook to the future is increasing product profitability and expanding into the export market.
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BARONIE UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Group believes strongly in keeping employees informed of matters affecting them as employees and the financial performance of the business.
This is achieved by issuing weekly newsletters, written by the directors on the Group’s performance, areas of concern, opportunities, and key events but it also includes a section asking for employee feedback. A director and at least 1 member of the senior management team meet with employee and union representatives on a bi-weekly basis. In these meetings employees have an opportunity to raise concern, ask questions but it is also an opportunity for the senior team to consider employees view of business decision. The Group ensures that training, career development and promotions are available to all employees.
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BARONIE UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2024 SECR Report 1st Jan to 31st Dec
The below report reviews the Groups energy consumption and Green House Gas Emissions, along with an intensity ratio and energy efficient narrative, in line with the government's SECR requirements. Energy Consumption per Scope The figures below detail the Group's total Scope 1 & Scope 2 energy consumption in kWh for the period 2024, with 2023 also shown as a comparison: The above kWh values for both gas & electricity have been obtained from utility invoices. Fuel values have been calculated using fuel charges and multiplied to kWh using DEFRA's 2023 & 2024 conversion factors.
Emissions per Scope
The figures below detail the Group's associated Green House Gas (GHG) emissions in kg of Carbon Emissions (kgCO2e) for the period 2024, with 2023 also shown as a comparison:
The above carbon emissions values have been calculated using DEFRA'S 2023 & 2024 coversion factors. Intensity Ratio The below figures provide an intensity ratio of GHG per Tonne of product. This intensity ratio was chosen as it is iin line with OP Chocolate’s Climate Change Agreement, which compares energy consumption per tonnes of product against a stringent target.
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BARONIE UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The above production values have been provided by site and audited in line with the business’s Climate Change Agreement.
Energy Efficiency Action During the period covered by this report, the Group has continued its long-term energy efficiency strategy aimed at reducing energy consumption and carbon emissions. This has been achieved through projects such as improving tank and pipework insulation, increasing LED lighting installations across the site, and switching tank and pipeline heating requirements to more efficient decentralized systems. Additionally, performance analysis has been improved through a better understanding of the product mix and the extensive network of electricity, gas, and water sub-metering continues to be expanded, enhancing energy consumption monitoring and management. However, the 2024 product mix has shifted to a more energy-intensive variety compared to previous years. There have also been major projects initiated that will lead to long-term improvements in production and energy efficiency, although installation downtime and subsequent teething issues have had a short-term detrimental effect. Methodology 2024: • Electricity & Gas consumptions obtained from utility invoices • Mileage of Company-owned vehicles has been provided by site and converted to kWh using DEFRA’s 2024 conversion factors. • All energy to GHG conversions have been calculated using DEFRA’s 2024 conversion factors. • Intensity ratio of GHG against Tonne of Product has been chosen in line with O.P. Chocolate Limited's Climate Change Agreement. Methodology 2023: • Electricity & Gas consumptions obtained from utility invoices • Transport Fuel Charges (£) provided from company records and; o Converted to litres using UK government’s monthly average fuel rates. o Converted to kWh using DEFRA’s 2023 conversion factors • All energy to GHG conversions have been calculated using DEFRA’s 2023 conversion factors. • Intensity ratio of GHG against Tonne of Product has been chosen in line with OP Chocolate Ltd.’s Climate Change Agreement.
There have been no significant events affecting the Group since the year end.
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BARONIE UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
MHA 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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BARONIE UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARONIE UK LIMITED
We have audited the financial statements of Baronie UK 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.
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BARONIE UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARONIE UK LIMITED (CONTINUED)
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.
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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BARONIE UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARONIE UK 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:
- Enquiry of management around actual and potential litigation and claims; - Enquiry of staff to identify any instances of non-compliance with laws and regulations; - Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and review of accounting estimates for bias; - Reviewing financial statement disclosures and testing supporting documentation to assess compliance with applicable laws and regulations.
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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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BARONIE UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BARONIE UK LIMITED (CONTINUED)
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
Statutory Auditors
Northampton, United Kingdom
Date:
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
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BARONIE UK LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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BARONIE UK LIMITED
REGISTERED NUMBER: 09426120
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 21 to 41 form part of these financial statements.
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BARONIE UK LIMITED
REGISTERED NUMBER: 09426120
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 21 to 41 form part of these financial statements.
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BARONIE UK LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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BARONIE UK LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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BARONIE UK LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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BARONIE UK LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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BARONIE UK LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Baronie UK Limited is a private company, limited by shares, incorporated and registered in England and Wales under number 09426120. Its registered office and principal place of business is Corby Enterprise Centre, London Road, Priors Hall, Corby, Northamptonshire, NN17 5EU.
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 judgment 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 following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of a business combination using the merger accounting method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are recognised as if the acquiree has always been a subsidiary. They are deconsolidated from the date control ceases.
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis.
Although Baronie UK Limited itself does not maintain significant cash reserves in its own bank accounts, it participates in a centralised group cash pooling arrangement, managed by Baronie NV, which provides access to working capital as required. This arrangement is a normal part of the group’s treasury operations and allows the Company to draw on group funds to meet its day-to-day operational and financial commitments. The group has confirmed access to the cashpool facility for the next 18 months. This financial support includes not seeking the repayment of amounts advanced to the company by the Ultimate Parent and other members of the Parent group unless adequate financing is available to the Company. Based on sales forecasts, and taking into account the continued availability of funding via the group cash pool facility, the directors are confident that the company and group will have sufficient resources to meet its obligations as they fall due. Accordingly, the directors consider it appropriate to prepare the financial statements on a going concern basis.-
Functional and presentation currency
Transactions and balances
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
At each reporting date the company 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.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Page 24
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
Land is not depreciated. Depreciation on other assets 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.
Page 25
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BARONIE UK 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.
Page 26
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
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.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
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.
Page 27
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
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.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
Page 28
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. There are no key judgements. The key estimates includes the stock provisions. The need for a stock provision is considered regularly by management on a line by line basis and is included as part of the closing stock figure.
The whole of the turnover is attributable to the principal activity of the Group.
Analysis of turnover by country of destination:
Page 29
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 30
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 31
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Taxation (continued)
There were no factors that may affect future tax charges.
Page 32
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 33
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
13.Intangible assets (continued)
Page 34
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 35
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
14.Tangible fixed assets (continued)
Page 36
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 37
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 38
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 39
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Other reserves
Profit and loss account
The Group operates a defined contributions pension scheme. The assets of the scheme are held seperately 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 £320,128 for the year (2023: £297,158). Contributions totalling £61,126 (2023: £47,999) were payable to the fund at the balance sheet date and are included in creditors.
Page 40
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BARONIE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The immediate parent company is Cemoi International SA, a company incorporated in Switzerland.
The ultimate parent company is Baronie NV, a company incorporated in Belgium. This is the largest group for which consolidated accounts are prepared and copies can be obtained from Baronie NV, Kolvestraat 70, 8000, Brugge, Belgium. In the opinion of the Directors, the ultimate controlling party of the parent company is A Walder.
Page 41
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