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BAIRD INVESTMENTS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2025
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Comprehensive income for the year
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Contributions by and distributions to owners
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Dividends to shareholders of parent
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Comprehensive income for the year
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Contributions by and distributions to owners
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Dividends to shareholders of parent
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The notes on pages 19 to 46 form part of these financial statements.
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BAIRD INVESTMENTS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2025
Cash flows from operating activities
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Profit for the financial year
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Amortisation of intangible assets
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Depreciation of tangible assets
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Decrease/(increase) in debtors
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of intangible fixed assets
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Purchase of tangible fixed assets
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Net cash from investing activities
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BAIRD INVESTMENTS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2025
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Cash flows from financing activities
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Dividends paid to non-controlling interests
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Net cash used in financing activities
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Net increase/(decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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The notes on pages 19 to 46 form part of these financial statements.
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BAIRD INVESTMENTS LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2025
The notes on pages 19 to 46 form part of these financial statements.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
Baird Investments Limited ("the Company") and its subsidaries (together "the Group") specialises in manufacturing, refining, processing, melting and assaying, and vaulting precious metals such as Gold, Silver, Platinum, Palladium and Rhodium. Revenue is derived from the subsequent sale of precious metal in various forms, and associated services.
The Company is a private company limited by shares, incorporated and domiciled in the United Kingdom.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006.
The company has adopted the July 2015 amendments to FRS 102 in the preparation of these financial statements, thus permitting the accounting valuation policy adopted for stocks as described in note 2.8.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The principal accounting policies applied in the preparation of these Group and Company financial statements are set out below. These policies have been consistently applied to all periods presented, unless otherwise stated.
The Group consolidated financial statements include the financial statements of the Company and all of its subsidiary undertaking made up to 31 December 2025.
A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where the Group owns less than 50% of the voting powers of an entity but controls the entity by virtue of an agreement with other investors which give it control of the financial and operating policies of the entity it accounts for that entity as a subsidiary. Where consideration for a subsidiary is an exchange of shares and certain conditions per FRS 102 section 19 paragraph 27 are met, merger accounting has been used.
Where a subsidiary has different accounting policies to the Group, adjustments are made to those subsidiary financial statements to apply the Group’s accounting polices when preparing the consolidated financial statements.
Where a subsidiary has a functional and presentational currency different to that of the Group, balances are converted in to the Group’s presentational currency at the appropriate spot rates. See accounting policy 2.15 for further information on the Group's treatment of foreign currency.
Any subsidiary undertakings sold or acquired during the year are included up to, or from, the dates of change of control.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Group meets its day-to-day working capital requirements through careful management of working capital positions. The Group’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group should be able to operate without other third party support. After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements.
Business combinations are accounted for by applying the purchase method.
The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination. Where control is achieved in stages the cost is the consideration at the date of each transaction.
Contingent consideration is initially recognised at estimated amount where the consideration is probable and can be measured reliably. Where (i) the contingent consideration is not considered probable or cannot be reliably measured but subsequently becomes probable and measureable or (ii) contingent consideration previously measured is adjusted, the amounts are recognised as an adjustment to the cost of the business combination.
On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill. Where the fair value of contingent liabilities cannot be reliably measured they are disclosed on the same basis as other contingent liabilities.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Group has the following main sources of revenue:
Baird Investments Limited
The Company receives dividend income and bank interest. This is accounted for when received. The Company has no other forms of revenue.
Baird & Co Limited ("the Company" for the purposes of this note)
Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
• the Company has transferred the significant risks and rewards of ownership to the buyer;
• the amount of revenue can be measured reliably;
• it is probable that the Company will receive the consideration due under the transaction;
• the costs incurred or to be incurred in respect of the transaction can be measured reliably;
• when any other specific criteria relating to each of the Company’s sales types have been met, as described below.
The Company has the following main sources of revenue:
a) Sale of goods
All of the Company’s significant sources of revenue derive from the sale of precious metal to its customers. Due to the nature of the industry in which the Company operates, the contractual arrangements surrounding certain transactions can be complex. The key elements of these contractual arrangements, which are necessary for an understanding of these financial statements, are explained in more detail below. However, unless as separately described below, the key revenue recognition criteria above shall apply to all transactions.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Similarly, the industry in which the Company operates gives rise to significant additional commercial activity associated with the commodity and product that the Company sells. For example, bullion brokerage, arbitrage and investment. The Company does not participate in such activity. All of the Company’s sales derive from metal owned by the Company. The Company does not seek to earn any revenue from movements in the price of the underlying commodity. The Company’s stock and trading positions are balanced accordingly to avoid such price exposure.
Allocated and unallocated metal sales
Sales are made on either an allocated or an unallocated basis. Allocated metal sales involve the physical transfer of specific metal bars and/or coins to a customer or to be set aside and held on behalf of a customer, such metal being uniquely and separately identifiable as belonging to the customer.
Unallocated sales are sales in which there is often no immediate requirement or desire to transfer the physical metal to the customer, or for such metal to be separately identifiable. Given the nature of the commodity, selling on an unallocated basis is common. Unallocated metal account holders have a general entitlement to metal and are unsecured creditors of the Company. In line with industry convention, the Company continues to recognise the associated metal within its own stocks.
In the case of both allocated and unallocated sales, revenue is recognised based on the above key criteria, which will generally be the trade date of sale. For unallocated sales it is appropriate to recognise revenue even though physical delivery may not have taken place, since it is demonstrably the case that the significant risks and rewards of ownership of the metal (which is mainly the exposure to price fluctuations) will have passed to the customer. The Company will no longer be exposed to such risks and rewards as it will have corresponding stock and creditor balances denominated in metal terms such that the Company’s position is balanced.
When an unallocated account customer converts previously purchased unallocated metal into allocated metal the Company accounts for this as a purchase of unallocated metal and a sale of allocated metal. This is because the original sale of unallocated metal is a contractually separate transaction. The subsequent repurchase of unallocated metal represents a contractually separate transaction, on new terms, including weight and timing, and therefore price. The allocated metal sale represents another contractually separate transaction and will involve the legal separation and physical identification (separate numbering of bars etc.) of metal.
Further information regarding unallocated and allocated metal accounts can be found on our website at www.bairdmint.com.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Deferred trading accounts
The Company operates deferred cash and metal accounts with certain customers and suppliers (counterparties). All sales and purchases arising from deferred trading account activity are included within revenue and cost of sales respectively. All transactions are recognised in the financial statements on the trade date of the transaction which is the date at which both parties are unconditionally contracted to complete the transaction. Deferred cash and metal balances will exist with such counterparties at a given point in time and such balances are included within stocks, in the case of metal asset balances, debtors in the case of cash asset balances and in creditors in the case of both cash and metal liabilities.
b) Rendering of services
The Company provides a number of services related to precious metal including vaulting,
manufacturing and assaying, and recognition is in accordance with the criteria outlined above.
Cost of sales represents amounts payable for the purchase of various precious metals and related products. Cost of sales are recognised on the trade date of a transaction.
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Stocks and work in progress
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The Parent Company does not hold stock.
Baird & Co Limited ("the Company" for the purposes of this note)
Stocks consist of precious metals held by the Company and are valued at fair value less costs to sell in accordance with the alternative accounting rules permitted by the Companies Act 2006 and with the provisions of FRS 102 paragraph 13.3. All precious metals are valued at period end closing values as published by the London Bullion Market Association (LBMA), an internationally recognised pricing mechanism. Such prices are based on the “fine” metal benchmark for each type of precious metal, which is similarly internationally recognised. As stocks of precious metals are held in various forms, only the fine metal content is included in stock valuation, all other metal content is ignored as such values would be wholly immaterial.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
As noted in accounting policy 2.5, the Company operates allocated and unallocated accounts for its customers. In common with industry practice, stocks held on behalf of unallocated account holders are included within the value of stocks held by the Company in the balance sheet. A corresponding liability is included within creditors. Unallocated metal account holders have a general entitlement to metal and are unsecured creditors of the Company. Their holding is not represented by any specific metal set aside but their general entitlement is made up of metal balances held within stock. The corresponding liability to unallocated metal account holders is valued at fair value, based on the same principles as the corresponding stock asset value, as described above. The Company seeks to maintain an equilibrium between its level of total precious metal stocks and total precious metal liabilities. The Directors consider it necessary to adopt a fair value policy to measure both the assets and liabilities in question in order for the financial statements to give a true and fair view.
Deferred metal stocks, as described in accounting policy 2.5, comprise stocks held on behalf of counterparties with which deferred accounts are operated. Similarly deferred metal liabilities represent corresponding metal liabilities to counterparties with which deferred accounts are operated. Deferred metal stocks and liabilities are valued at fair value at the balance sheet date. Deferred metal stocks are included within the stock value in the balance sheet and deferred metal liabilities are included within creditors in the balance sheet.
Post-period end diminution in value will only be considered as an indicator of impairment of precious metal stocks to the extent that total precious metal stocks exceed total precious metal liabilities at the balance sheet date. In other words, impairment is only considered to the extent the Company has a net precious metal stock exposure.
Allocated metal account holders have specific metal set aside held as the property of the account holder. The value of metal held by these account holders is not included in the Company's financial statements. Accordingly no liability to allocated account holders is included in the financial statements.
Stocks also include immaterial amounts of tools and other ancillary items which are valued at the lower of cost and estimated selling price less costs to complete and sell.
Precious metal stocks held on consignment at third parties are included at fair value within stocks in the balance sheet as the Company retains legal title to such stocks until they are sold by the third party. Stocks held on behalf of third parties by the Company, as consignee, are not included in the value of stocks in the balance sheet as the Company does not have legal title to such stocks.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Financial assets
Basic financial assets, including trade debtors and other receivables, cash and bank balances and investments, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of comprehensive income.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the Statement of comprehensive income.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities
Basic financial liabilities, including trade creditors and other payables, bank loans, and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Deferred metal contracts involve the purchase and sale of a non-financial item and are therefore not financial instruments and neither do the Directors believe that the provisions of FRS 102 paragraph 12.5 apply.
Metal liabilities to deferred and unallocated metal account holders represent a non-financial liability and are included in creditors. These are not financial liabilities.
Cash balances owed by/to deferred account counterparties are included within debtors/creditors respectively and are financial assets/liabilities.
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Intangible fixed assets and goodwill
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Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed five years. Intangible assets that are not yet brought into use are not amortised. The Directors will assess the useful economic life of such intangibles when they are brought into use.
Acquired goodwill is capitalised and amortised over its useful economic life. The Group does not currently have any unamortised acquired goodwill. The Directors would consider the useful economic life for any future additions based on their knowledge and experience of the sector and with due regard to prevailing accounting standards.
Goodwill arising on consolidation is capitalised and amortised over its useful economic life, currently 20 years for existing goodwill, as determined by the directors.
All goodwill is reviewed for impairment at the end of its first full financial year following acquisition and subsequently as and when necessary if circumstances emerge that indicate that the carrying value may not be recoverable.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Land is not depreciated. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance methods. The estimated useful lives range as follows:
Freehold property 2% (50 years) on straight-line
Long term leasehold property – over the term of the lease
Plant & machinery 10% (10 years) on straight-line
Motor Vehicles 25% (4 years) on straight-line
Office equipment 25% (4 years) on straight-line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within the Income Statement.
Baird Investments Limited
The Company's fixed asset investments comprise an equity shareholding of 83.54% in Baird & Co. Limited which is incorporated in England and Wales and not publicly traded.
Investments in subsidiaries are measured at cost less accumulated impairment.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Rentals paid under operating leases are charged to the statement of comprehensive income on a straight line basis over the period of the lease.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
Functional and presentation currency
The Group's functional and presentation currency is the pound sterling.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of comprehensive income except when deferred in other comprehensive income as qualifying cash flow hedges.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Group provides a range of benefits to eligible employees, annual bonus arrangements, paid holiday arrangements and defined contribution pension plans.
Short term benefits
Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.
Defined contribution pension plans
The Group makes contributions to the personal pension plans of certain employees. Once the contributions have been paid the Group has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plans are held separately from the Group in independently administered funds.
Annual bonus plan
The Group operates an annual bonus plan for certain employees. An expense is recognised in the Statement of comprehensive income when the Group has a legal or constructive obligation to make payments under the plan as a result of past events and a reliable estimate of the obligation can be made.
The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statement of comprehensive income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Group operates and generates income.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Deferred balances are recognised in respect of all timing differences that have originated but not reversed by the Balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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Related party transactions
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The Group and Company discloses transactions with related parties which are not wholly within the same group. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors, separate disclosure is necessary to understand the effect of the transaction on the Group financial statements.
Interest income is recognised in profit or loss using the effective interest method.
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Revaluation of tangible fixed assets
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Individual freehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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Provisions for liabilities
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Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the period that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured.
If it is not possible to distinguish between the research phase and the development phase of an internal project the expenditure is treated as if it were all incurred in the research phase only.
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Judgments in applying accounting policies and key sources of estimation uncertainty
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Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
a) Critical judgments in applying the entity’s accounting policies
(i) Stock valuation basis
As described in note 2.7 above the Group values stocks of precious metals at fair value. This policy is in accordance with the alternative accounting rules permitted by the Companies Act 2006 and with FRS 102 paragraph 13.3 but is a departure from the general requirement to value stocks at cost less estimated selling price less costs to complete and sell. The Directors believe that unless a policy of valuing stocks at fair value is adopted the accounts would not provide a true and fair view.
(ii) Stocks - amounts owed to unallocated account holders.
As described in note 2.7 above the Group recognises metal stocks owed to unallocated metal account customers within its own stock in the balance sheet with a corresponding liability recorded within creditors. This treatment is in line with industry practice in respect of the operation of unallocated metal accounts.
(iii) Revenue recognition and financial instruments
The Group adopts the revenue recognition and financial instruments policies as noted above at note 2.5 and 2.8. The Group does not regard any of its transactions as falling within the scope of section 12 of FRS 102 “Other Financial Instrument Issues”. In particular paragraph 12.5 of this section does not apply. As a result, except where the Group’s stated policies themselves would result in the netting off of sales and cost of sales, the gross value of sales and purchase transactions are recorded within turnover and cost of sales respectively in these financial statements. The Directors believe that this approach is the most appropriate in the Group’s circumstances, is in accordance with prevailing generally accepted accounting practice and adopting such a policy helps to maintain a consistent understanding for typical users of these accounts.
b) Critical accounting estimates and assumptions
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
3.Judgments in applying accounting policies (continued)
(i) Useful economic lives of tangible assets and goodwill
The annual depreciation and amortisation charges for tangible assets and goodwill are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation, cash generation and the physical condition of the assets. See note 15 for the carrying amount of the property plant and equipment and note 14 for the carrying amount of intangible assets. See note 2.10 for the useful economic lives for each class of assets and note 2.9 for the useful economic life of goodwill.
(ii) Impairment of debtors
The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 18 for the net carrying amount of the debtors.
(iii) Taxation
The Group establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities. Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. Further details are contained in note 11.
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Sales of precious metals and related services
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All revenue arises from the sale of, or services related to, precious metals and there are no other material sources of revenue.
In the opinion of the Directors the disclosure of revenue by geographical area would be seriously prejudicial to the interests of the Group.
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The operating profit is stated after charging:
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Depreciation of tangible fixed assets
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Amortisation of intangible assets, including goodwill
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Defined contribution pension cost
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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During the year, the Group obtained the following services from the Company's auditor and its associates:
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Fees payable to the Group's auditor and its associates for the audit of the
Group's annual accounts
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Fees payable to the Company's auditor and its associates in respect of:
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Administration, Marketing and Production
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Group contributions to defined contribution pension schemes
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During the year retirement benefits were accruing to 2 directors (2024 - 2) in respect of defined contribution pension schemes.
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The highest paid director received remuneration of £112,744 (2024 - £108,136).
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The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £1,761 (2024 - £1,233).
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Other interest receivable
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Interest payable and similar expenses
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Other loan interest payable
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Finance leases and hire purchase contracts
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
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Non-tax deductible amortisation of goodwill and impairment
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Expenses not deductible for tax purposes
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Capital allowances for year in excess of depreciation
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Research and development claim
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Adjustments in respect of prior periods
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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The directors have recommended further dividends of £1,253,100 post-period end.
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Parent company profit for the year
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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 profit after tax of the parent Company for the year was £1,240,619 (2024 - £835,377).
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Charge for the year on owned assets
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
14.Intangible assets (continued)
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The software intangible assets include the development of the Group’s bespoke financial management system which was created by an external development firm for the Group’s specific requirements. The asset is being amortised over 10 years.
The consolidated goodwill is being amortised over 20 years.
The parent entity does not have separate intangible assets.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Long-term leasehold property
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Charge for the year on owned assets
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
15.Tangible fixed assets (continued)
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Freehold property has been professionally valued as at 30th June 2023, by Aston James Associates. The directors are able to demonstrate there has not been a material change in the valuation of this property since this valuation took place.
If the freehold land and buildings had not been included at valuation they would have been included under
the historical cost convention as follows:
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Investments in subsidiary companies
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The following was a subsidiary undertaking of the Company:
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The aggregate of the share capital and reserves as at 31 December 2025 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:
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Aggregate of share capital and reserves
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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In accordance with FRS 102 paragraph 13.22(b) the Directors believe it is appropriate to disclose carrying amounts of stocks in the following classifications:
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Prepayments and accrued income
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Cash and cash equivalents
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance leases
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Obligations under finance leases
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As at 31 December 2025, the company has lease liabilities of £14,838 relating to a right of use asset. The liability is recognised as the present value of future lease payments due under lease agreements.
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Minimum lease payments under hire purchase fall due as follows:
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Financial assets that are debt instruments
measured at amortised cost
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Financial liabilities measured at amortised cost
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Allotted, called up and fully paid
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2 (2024 - 2) Ordinary shares of £1.00 each
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There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
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Revaluation reserve
The revaluation reserve represents cumulative revaluations of freehold and long term leasehold properties, less associated deferred tax adjustments in accordance with FRS102.
Foreign exchange reserve
Foreign exchange reserve represents historical foreign exchange gains and losses.
Non-controlling interests
Non-controlling interests represent the cumulative reserves attributable to non-controlling interests.
Profit and loss account
The profit and loss account represents cumulative distributable profits and losses net of dividends and other adjustments.
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £133,665 (2024 - £63,403). Contributions totalling £36,814 (2024 - £11,677) were payable to the fund at the balance sheet date.
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BAIRD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
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Related party transactions
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At the start of the period £162,011 was owed to the Group by a director. During the year this amount was repaid in full.
During the year purchases were made from directors on an arms length basis of £21,994 (2024 - £3,845),
During the year drawings were made of £184,023 (2024 - £158,011). At the period end, included within
other debtors, were amounts owed by directors of £162,030. Interest was charged at the HMRC official
rate of interest.
At the period end, the Group owed to the shareholders of Baird & Co. amounts denominated in metal at a period end fix price equivalent to £641,787 (2024 - £344,403). These are included within unallocated metal liabilities and occurred at an arms-length basis.
During the period the directors had an interest in dividends of £1,240,619 (2024 - £835,377).
The company has taken advantage of the exemption, under FRS 102 paragraph 1.12 and paragraph
33.1A, from disclosing transactions with key management and from disclosing other related party
transactions as they are with other companies that are wholly owned within the Group.
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The Company does not have a controlling party.
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