Registration number:
Baltic Works Ltd
for the Period from 2 December 2024 to 30 November 2025
Baltic Works Ltd
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 Statement of Income and Retained Earnings |
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Consolidated Statement of Financial Position |
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Statement of Financial Position |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Baltic Works Ltd
Company Information
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Directors |
Mr Malcolm Moir Mr James Campbell Ms Kay Laing |
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Registered office |
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Solicitors |
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Auditors |
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Baltic Works Ltd
Strategic Report for the period from 2 December 2024 to 30 November 2025
The directors present their strategic report for the period from 2 December 2024 to 30 November 2025.
Principal activity
The principal activity of the group is the manufacture, sale and distribution of textiles.
Fair review of the business
The Group has continued to be profiitable in the period to 30 November 2025 as shown in the profit and loss account.
Trading has been robust since the period end and it is hoped that this will continue.
The Directors are satisfied with the trading results in terms of both turnover and net profitability in respect of the period ending 30 November 2025 and hope to see an equally good, if not improved, result next year. The outlook for the Group remains strong as the business continues to make profit.
The Group has repaid all of its bank debt during the year.
The company's key financial and other performance indicators during the period were as follows:
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Financial KPIs |
Unit |
2025 |
2024 |
|
Turnover |
£ |
14,144,660 |
10,370,264 |
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Gross Profit Margin |
% |
48.7 |
51.2 |
|
Profit Before Tax |
£ |
2,341,646 |
1,772,041 |
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Net Assets |
£ |
3,024,104 |
4,692,484 |
Principal risks and uncertainties
The key risks and uncertainties facing the Group include the following:
Competition - The risk of losing business to competitors is mitigated by close monitoring of competitors' prices and feedback from existing customers.
Employees - The risk of costs incurred and loss of customer confidence arising from excessive staff turnover rates is mitigated by staff training and employee involvement.
Regulation - The risk of rising costs of complying or failing to comply with new legisaltion resulting from regulatory changes etc. is mitigated through staff training and controls to reduce the risks arising from non compliance.
Economic climate - The Directors are satisfied that the Accounts demonstrate the business can continue to maintain profitability and positive cashflow in difficult economic times.
Baltic Works Ltd
Strategic Report for the period from 2 December 2024 to 30 November 2025
Approved and authorised by the
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Baltic Works Ltd
Directors' Report for the Period from 2 December 2024 to 30 November 2025
The directors present their report and the financial statements for the period from 2 December 2024 to 30 November 2025.
Directors of the group
The directors who held office during the period were as follows:
Financial instruments
Objectives and policies
The Group's financial instruments comprise cash at bank, long term bank funding and hire purchase. The main purpose of these financial instruments is to raise adequate finance for the Group's operations.
Price risk, credit risk, liquidity risk and cash flow risk
The Group does not trade in financial instruments.
The main risks arising from the Group's financial instruments are interest rate fluctuations and liquidity risk. It is the Group's policy to finance its operations through a mixture of cash and borrowings and to review periodically the mix of these instruments with regard to the projected cashflow requirements of the Group and an acceptable level of risk exposure.
The Directors review the internal credit limits of all major customers and review credit risk regularly.
Research and development
The group places research and development at the core of its operations. The group consistently pursues advancements, developing fabrics and materials that feature specialised characteristics and performance capabilities.
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.
Reappointment of auditors
The auditors Morris & Young, Statutory Auditor are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Baltic Works Ltd
Directors' Report for the Period from 2 December 2024 to 30 November 2025
Approved and authorised by the
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Baltic Works Ltd
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.
Baltic Works Ltd
Independent Auditor's Report to the Members of Baltic Works Ltd
Opinion
We have audited the financial statements of Baltic Works Ltd (the 'parent company') and its subsidiaries (the 'group') for the period from 2 December 2024 to 30 November 2025, which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Statement of Financial Position, Statement of Financial Position, Consolidated Statement of Changes in Equity, 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 30 November 2025 and of the group's profit for the period 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'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.
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.
Baltic Works Ltd
Independent Auditor's Report to the Members of Baltic Works Ltd
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 period 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 6], 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 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 company or to cease operations, or have no realistic alternative but to do so.
Baltic Works Ltd
Independent Auditor's Report to the Members of Baltic Works Ltd
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.
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 considered the opportunities that may exist within the organisation for fraud and identified the greatest potential for irregularities to occur is in relation to revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, UK tax legislation, employment, environmental and health and safety legislation.
We communicated relevant identified laws and regulations and potential fraud risks to all engagement team members at planning and reminded them to remain alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.
Our procedures to respond to risks identified included the following:
. reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
. enquiring of directors concerning actual and potential litigation and claims;
. we gained an understanding of the controls that the directors have in place to prevent and detect fraud. We enquired of the directors about any incidences of fraud that had taken place during the year;
. performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
. testing of the completeness and correct allocation of revenue in the year;
. reading minutes of meetings of those charged with governance;
. in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;
. assessing whether the judgements made in making accounting estimates are indicative of a potential bias;
. and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Baltic Works Ltd
Independent Auditor's Report to the Members of Baltic Works Ltd
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. As with any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with 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 group and parent 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 group and parent 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 group and the parent company's members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
Chartered Accountants
6 Atholl Crescent
PH1 5JN
Baltic Works Ltd
Consolidated Statement of Income and Retained Earnings for the Period from 2 December 2024 to 30 November 2025
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Note |
2025 |
2024 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
|
|
|
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Distribution costs |
( |
( |
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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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|
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Interest payable and similar charges |
( |
( |
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(27,153) |
(83,569) |
||
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Profit before tax |
|
|
|
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Taxation |
( |
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Profit for the financial period |
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|
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Profit/(loss) attributable to: |
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Owners of the company |
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|
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Retained earnings brought forward |
4,122,483 |
2,483,986 |
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Dividends paid |
( |
( |
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Retained earnings carried forward |
2,454,103 |
4,122,483 |
Baltic Works Ltd
(Registration number: SC460045)
Consolidated Statement of Financial Position as at 30 November 2025
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Note |
2025 |
2024 |
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Fixed assets |
|||
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Tangible assets |
|
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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 |
570,571 |
570,571 |
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Other reserves |
(570) |
(570) |
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Retained earnings |
2,454,103 |
4,122,483 |
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Equity attributable to owners of the company |
3,024,104 |
4,692,484 |
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Shareholders' funds |
3,024,104 |
4,692,484 |
Baltic Works Ltd
(Registration number: SC460045)
Consolidated Statement of Financial Position as at 30 November 2025
Approved and authorised by the
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Baltic Works Ltd
(Registration number: SC460045)
Statement of Financial Position as at 30 November 2025
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Note |
2025 |
2024 |
|
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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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|
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|
|
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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 |
570,571 |
570,571 |
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Retained earnings |
153,379 |
389,108 |
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Shareholders' funds |
723,950 |
959,679 |
The company made a profit after tax for the financial period of £3,264,271 (2024 - profit of £676,241).
Approved and authorised by the
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Baltic Works Ltd
Consolidated Statement of Changes in Equity for the Period from 2 December 2024 to 30 November 2025
Equity attributable to the parent company
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Share capital |
Other reserves |
Retained earnings |
Total |
Total equity |
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At 2 December 2024 |
|
( |
|
|
|
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Profit for the period |
- |
- |
|
|
|
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Dividends |
- |
- |
( |
( |
( |
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At 30 November 2025 |
|
( |
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|
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Share capital |
Other reserves |
Retained earnings |
Total |
Total equity |
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At 4 December 2023 |
|
( |
|
|
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Profit for the period |
- |
- |
|
|
|
|
Dividends |
- |
- |
( |
( |
( |
|
New share capital subscribed |
|
- |
- |
|
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At 1 December 2024 |
570,571 |
(570) |
4,122,483 |
4,692,484 |
4,692,484 |
Baltic Works Ltd
Statement of Changes in Equity for the Period from 2 December 2024 to 30 November 2025
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Share capital |
Retained earnings |
Total |
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At 2 December 2024 |
|
|
|
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Profit for the period |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 30 November 2025 |
|
|
|
|
Share capital |
Retained earnings |
Total |
|
|
At 4 December 2023 |
|
|
|
|
Profit for the period |
- |
|
|
|
Dividends |
- |
( |
( |
|
New share capital subscribed |
|
- |
|
|
At 1 December 2024 |
570,571 |
389,108 |
959,679 |
Baltic Works Ltd
Consolidated Statement of Cash Flows for the Period from 2 December 2024 to 30 November 2025
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Note |
2025 |
2024 |
|
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Cash flows from operating activities |
|||
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Profit for the period |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
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Depreciation and amortisation |
|
|
|
|
Finance income |
( |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
( |
|
|
|
|
||
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Working capital adjustments |
|||
|
Decrease in stocks |
|
|
|
|
Increase in trade debtors |
( |
( |
|
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Increase in trade creditors |
|
|
|
|
Increase/(decrease) in deferred income |
|
( |
|
|
Cash generated from operations |
|
|
|
|
Income taxes paid |
- |
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Proceeds from issue of ordinary shares, net of issue costs |
- |
|
|
|
Repayment of bank borrowing |
( |
( |
|
|
Payments to finance lease creditors |
( |
( |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
|
Cash and cash equivalents at 2 December |
|
|
|
|
Cash and cash equivalents at 30 November |
685,482 |
896,568 |
|
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
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General information |
The company is a private company limited by share capital, incorporated in Scotland.
The address of its registered office is:
These financial statements were authorised for issue by the
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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 United Kingdom and Republic of Ireland and the Companies Act 2006'.
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 financial statements are presented in Sterling (£) and are rounded to the nearest £1.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 November 2025.
No Income Statement is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial period of £3,264,271 (2024 - profit of 676,241).
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
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.
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.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.
Going concern
These accounts have been prepared having regard to the group's trading forecasts for the next twelve months.
Notwithstanding the above, given the current economic environment, there remains a risk that the external trading environment may be worse than currently envisaged, and as a result, the directors of Baltic Works Limited have also reviewed forecasts which include sensitivities that make allowance for that risk. Should such a scenario arise, the directors have confidence that they have adequate liquidity to ensure the group can meet its liabilities as they fall due for the foreseeable future. After taking this in to account the directors of Baltic Works Limited consider that it is appropriate to prepare these accounts on a going concern basis.
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
Judgements
Inventory Valuation Judgement Policy - Management applies judgement in assessing whether inventory remains recoverable at its carrying value. This assessment is performed at each reporting date and considers inventory ageing, historical sales patterns, product lifecycle considerations, subsequent selling prices after the year end, expected future demand and known quality or specification issues. Specific provisions are recorded for inventory identified as damaged, obsolete, discontinued or unlikely to be sold within a reasonable period. Where uncertainty exists, management adopts a prudent approach to valuation. Significant judgements and assumptions supporting material inventory provisions are documented and approved by the Directors. |
Climate-Related Supply Chain Judgement - Management considers climate-related risks as part of its assessment of business risks,going-concern and the valuation of assets and inventories. Significant judgement is applied in assessing the potential impact of climate-related factors on the Company's supply chain including availability of key raw materials, disruption caused by extreme weather events, increasing transportation and logistics costs, future environmental regulation and expected changes in customer demand arising from sustainability considerations. Management performs periodic assessments of key suppliers and sourcing locations to identifiy vulnerabilities arising from physical and transitional climate risks. Where material risks are identified, alternative sourcing options, inventory strategies and contractual arrangements are evaluated to mitigate potential disruptions. Management have concluded that no current climate-related supply chain risks give rise to an impairment of assets or material adjustment to inventory values at the reporting date. However, continued monitoring is required due to the evloving nature of climate-related risks. |
Revenue recognition
Revenue represents amounts receivable for the manufacture and sale of textiles net of VAT, trade discounts, rebates and returns and after eliminating sales within the group.
Revenue from the sale of textiles and manufactured products is recognised when the significant risks and rewards of ownership have passed to the customer, recovery of the consideration is probable, and the amount of revenue can be measured reliably.
Revenue from domestic sales is recognised on delivery or collection of goods when control of the goods transfers to the customer.
Revenue from export sales is recognised when control of the goods transfers to the customer in accordance with the contractual delivery terms. The point at which control transfers is determined by reference to the applicable Incoterms and may occur upon shipment, loading onto a carrier, or delivery to the customer's specified location.
Where customers are billed before the related goods are delivered, the amounts received are recognised as contract liabilities and released to revenue when the control of goods transfers to the customers.
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
Government grants
Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.
Foreign currency transactions and balances
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, 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.
Depreciation
Depreciation is not provided on freehold land and buildings. The directors are of the opinion that the property concerned is maintained to a high standard throughout a programme of refurbishment and maintenance. This expenditure is essential to ensure the continual upkeep and integrity of the property upon which the trading position of the company and its position in the market place depends. The expenditure is written off to the profit and loss account. As a consequence the lives of the properties and their residual values are such that any depreciation charge would be immaterial.
Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
Asset class |
Depreciation method and rate |
|
Plant & machinery |
17% reducing balance |
|
Fixtures & fittings |
40% & 15% reducing balance |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Website |
100% |
Investments
Investments in subsidiaries are accounted for at cost less accumulated impairment losses.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and on deposit.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stock and work in progress are valued at the lower of cost and net realisable value. Costs represents materials, freight and handling charges, direct labour and appropriate production overheads. Net realisable value is based on estimated selling price, less further costs expected to be incurred to completion and disposal.
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially as the transaction price.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
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 statement of financial position as a finance lease obligation.
Lease payments are apportioned between finance costs in the income statement and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
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.
Financial instruments
|
Revenue |
The analysis of the group's Turnover for the period from continuing operations is as follows:
|
2025 |
2024 |
|
|
Sale of goods |
|
|
|
Other operating income |
The analysis of the group's other operating income for the period is as follows:
|
2025 |
2024 |
|
|
Government grants |
|
|
|
Miscellaneous other operating income |
|
|
|
|
|
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
Operating profit |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Foreign exchange gains |
( |
( |
|
Operating lease expense - plant and machinery |
|
|
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
|
|
|
|
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Redundancy costs |
- |
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the period, analysed by category was as follows:
|
2025 |
2024 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
Sales |
|
|
|
Other departments |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the period was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
263,035 |
201,847 |
During the period the number of directors who were receiving benefits and share incentives was as follows:
|
2025 |
2024 |
|
|
Exercised share options |
- |
|
|
Accruing benefits under money purchase pension scheme |
|
|
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
Auditors' remuneration |
|
2025 |
2024 |
|
|
Audit of these financial statements |
1,860 |
1,220 |
|
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
11,410 |
6,030 |
|
|
|
|
|
Other fees to auditors |
||
|
All other assurance services |
|
|
|
Taxation |
Tax charged/(credited) in the consolidated income statement
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
- |
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
( |
|
Tax expense/(receipt) in the income statement |
|
( |
The tax on profit before tax for the period is the same as the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
2025 |
2024 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Tax decrease from other short-term timing differences |
( |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Tax decrease from effect of exercise of employee share options |
- |
( |
|
Tax decrease from effect of adjustment in research and development tax credit |
( |
( |
|
Total tax charge/(credit) |
|
( |
Deferred tax
Group
Deferred tax assets and liabilities
|
2025 |
Asset |
Liability |
|
- |
|
|
|
- |
|
|
2024 |
Asset |
Liability |
|
- |
|
|
|
- |
|
Company
Deferred tax assets and liabilities
|
2024 |
Asset |
Liability |
|
|
- |
|
|
|
- |
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
Intangible assets |
Group
|
Other intangible assets |
Total |
|
|
Cost or valuation |
||
|
At 2 December 2024 |
|
|
|
At 30 November 2025 |
|
|
|
Amortisation |
||
|
At 2 December 2024 |
|
|
|
At 30 November 2025 |
|
|
|
Carrying amount |
||
|
At 30 November 2025 |
- |
- |
|
At 1 December 2024 |
- |
- |
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
Tangible assets |
Group
|
Land and buildings |
Furniture, fittings and equipment |
Total |
|
|
Cost or valuation |
|||
|
At 2 December 2024 |
|
|
|
|
Additions |
- |
|
|
|
At 30 November 2025 |
|
|
|
|
Depreciation |
|||
|
At 2 December 2024 |
- |
|
|
|
Charge for the period |
- |
|
|
|
At 30 November 2025 |
- |
|
|
|
Carrying amount |
|||
|
At 30 November 2025 |
|
|
|
|
At 1 December 2024 |
|
|
|
Included within the net book value of land and buildings above is £1,055,333 (2024 - £1,055,333) in respect of freehold land and buildings.
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:
|
2025 |
2024 |
|
|
Plant and machinery |
23,729 |
664,010 |
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
Investments |
Company
|
2025 |
2024 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 2 December 2024 |
|
|
Provision |
|
|
Carrying amount |
|
|
At 30 November 2025 |
|
|
At 1 December 2024 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2025 |
2024 |
|||
|
Subsidiary undertakings |
||||
|
|
Baltic Works, Annfield Road, DUNDEE, DD1 5JH Scotland |
|
|
|
|
Subsidiary undertakings |
|
Halley Stevensons Ltd The principal activity of Halley Stevensons Ltd is |
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
Stocks |
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Raw materials and consumables |
|
|
- |
- |
|
Work in progress |
|
|
- |
- |
|
Finished goods and goods for resale |
|
|
- |
- |
|
|
|
- |
- |
|
|
Debtors |
|
Group |
Company |
||||
|
Current |
Note |
2025 |
2024 |
2025 |
2024 |
|
Trade debtors |
|
|
- |
- |
|
|
Amounts owed by related parties |
- |
- |
|
|
|
|
Other debtors |
|
|
|
|
|
|
Prepayments |
|
|
- |
- |
|
|
Deferred tax assets |
- |
- |
- |
|
|
|
Income tax asset |
- |
|
- |
- |
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Cash on hand |
|
|
- |
- |
|
Cash at bank |
|
|
|
|
|
|
|
|
|
|
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
Creditors |
|
Group |
Company |
||||
|
Note |
2025 |
2024 |
2025 |
2024 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
|
Trade creditors |
|
|
- |
- |
|
|
Amounts due to related parties |
|
- |
|
- |
|
|
Social security and other taxes |
|
|
- |
- |
|
|
Other payables |
|
- |
- |
- |
|
|
Accruals |
|
|
- |
- |
|
|
Income tax liability |
300,769 |
- |
- |
- |
|
|
Deferred income |
|
|
- |
- |
|
|
|
|
|
- |
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
|
Deferred income |
|
|
- |
- |
|
|
|
|
- |
- |
||
|
Provisions for liabilities |
Group
|
Deferred tax |
Total |
|
|
At 2 December 2024 |
|
|
|
Increase (decrease) in existing provisions |
|
|
|
At 30 November 2025 |
|
|
|
|
||
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the group to the scheme and amounted to £
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
570,570 |
|
570,570 |
|
|
|
1 |
|
1 |
|
|
|
|
|
|
Rights, preferences and restrictions
|
Ordinary shares have the following rights, preferences and restrictions: |
|
Ordinary B shares have the following rights, preferences and restrictions: |
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
Reserves |
Group
Called up share capital
represents the nominal value of shares that have been issued.
Profit and loss account
includes current and prior period retained profits and losses.
Other reserves
Relates to de-merger of previous group
Company
Called up share capital
represents the nominal value of shares that have been issued.
Profit and loss account
includes current and prior period retained profits and losses.
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
Loans and borrowings |
Non-current loans and borrowings
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Bank borrowings |
- |
|
- |
- |
|
Finance lease liabilities |
|
|
- |
- |
|
|
|
- |
- |
|
Current loans and borrowings
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Bank borrowings |
- |
|
- |
- |
|
HP and finance lease liabilities |
6,157 |
130,379 |
- |
- |
|
|
|
- |
- |
|
Hire purchase and finance leases are secured on the assets to which they relate.
Group
Bank borrowings
|
|
|
|
|
|
|
The bank loans were repaid in full during the year.
|
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
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:
|
2025 |
2024 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the period was £
|
Share-based payments |
Scheme details and movements
The movements in the number of share options during the period were as follows:
|
2025 |
2024 |
|
|
Outstanding, start of period |
- |
|
|
Exercised during the period |
- |
( |
|
|
||
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
Dividends |
|
2025 |
2024 |
|||
|
£ |
£ |
|||
|
Interim dividend of £ |
3,500,000 |
449,267 |
||
|
Commitments |
Group
Capital commitments
In 2024 a 10% final payment for a new laminator was contractually payable at the year end.
The total amount contracted for but not provided in the financial statements was £
|
Contingent liabilities |
Group
The banking facilities of the group are secured by a bond and two floating charges over the assets of the group and a legal first charge over Baltic Works, 28 Annfield Road, Dundee.
|
Analysis of changes in net debt |
Group
|
At 2 December 2024 |
Financing cash flows |
At 30 November 2025 |
|
|
Cash and cash equivalents |
|||
|
Cash |
896,568 |
(211,086) |
685,482 |
|
|
|||
|
|
( |
|
|
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
Related party transactions |
Group
Key management compensation
|
2025 |
2024 |
|
|
Salaries and other short term employee benefits |
|
|
|
Post-employment benefits |
|
|
|
|
|
Summary of transactions with subsidiaries
Summary of transactions with other related parties
Also during the year the group made distributions of £3,500,000 to the Halley Stevensons Employee Ownership Trust to enable payment to the selling shareholders of which £643,115 was outstanding and owed to the Trust at the year end. The group also advanced funds of £139,955 to the Trust to meet costs associated with the establishment of the EOT. The balance outstanding at the year end is unsecured, interest free and repayable on demand.
Loans to related parties
|
2025 |
Other related parties |
Total |
|
At start of period |
|
|
|
Advanced |
|
|
|
Repaid |
( |
( |
|
At end of period |
|
|
|
|
||
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
|
2024 |
Other related parties |
Total |
|
At start of period |
|
|
|
Advanced |
|
|
|
Repaid |
( |
( |
|
At end of period |
|
|
|
|
||
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
Loans from related parties
|
2025 |
Other related parties |
Total |
|
Advanced |
|
|
|
Repaid |
( |
( |
|
At end of period |
|
|
|
|
||
Company
Dividends paid to directors
|
2025 |
2024 |
|||
|
Mr James Campbell |
||||
|
dividend |
- |
24,409 |
||
|
Mr Malcolm Moir |
||||
|
dividend |
- |
156,537 |
||
Summary of transactions with subsidiaries
Summary of transactions with other related parties
During the year the group continued to lend money to Wax Creations Limited, a company James Campbell is a director and a 100% shareholder of.
Also during the year the company made distributions of £3,500,000 to the Halley Stevensons Employee Ownership Trust to enable payment to the selling shareholders of which £643,115 was outstanding and owed to the Trust at the year end. The company also advanced funds of £139,955 to the Trust to meet costs associated with the establishment of the EOT. The balance outstanding at the year end is unsecured, interest free and repayable on demand.
Baltic Works Ltd
Notes to the Financial Statements for the Period from 2 December 2024 to 30 November 2025
Loans to related parties
|
2025 |
Other related parties |
Total |
|
At start of period |
|
|
|
Advanced |
|
|
|
Repaid |
( |
( |
|
At end of period |
|
|
|
|
||
|
2024 |
Other related parties |
Total |
|
At start of period |
|
|
|
Advanced |
|
|
|
Repaid |
( |
( |
|
At end of period |
|
|
|
|
||
Loans from related parties
|
2025 |
Other related parties |
Total |
|
Advanced |
|
|
|
Repaid |
( |
( |
|
At end of period |
|
|
|
|
||
|
Parent and ultimate parent undertaking |