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Strategic Report, Report of the Directors and |
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Financial Statements |
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for the Year Ended 30 September 2022 |
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for |
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BMG Research Ltd |
REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements |
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for the Year Ended 30 September 2022 |
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for |
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BMG Research Ltd |
BMG Research Ltd (Registered number: 02841970) |
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Contents of the Financial Statements |
for the Year Ended 30 September 2022 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 6 |
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Statement of Income and Retained Earnings | 9 |
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Balance Sheet | 10 |
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Cash Flow Statement | 11 |
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Notes to the Cash Flow Statement | 12 |
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Notes to the Financial Statements | 13 |
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BMG Research Ltd |
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Company Information |
for the Year Ended 30 September 2022 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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SENIOR STATUTORY AUDITOR: |
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AUDITORS: |
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Chartered Accountants |
Registered Auditors |
c/o Blackthorn House |
St Pauls Square |
Birmingham |
West Midlands |
B3 1RL |
BMG Research Ltd (Registered number: 02841970) |
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Strategic Report |
for the Year Ended 30 September 2022 |
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The directors present their strategic report for BMG Research Ltd (the "Company") for the year ended 30 September 2022. |
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PRINCIPAL ACTIVITIES AND REVIEW OF THE BUSINESS |
The principal activity of the Company is the provision of fully integrated end to end high-quality market and social research services, from design to delivery, to clients predominantly operating in the public sector, together with the provision of Business Process Outsourcing services. |
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The Company has continued to invest in its Senior Management Team comprising of individuals with significant industry experience and knowledge and has continued operating from its offices in Birmingham and London, as well as an increasing amount of remote working. Having offices in both Birmingham and London enables access to the industry's best talent and ensure the senior client team is in proximity of key accounts. |
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The results for the Company show a reduction in turnover from that achieved in the prior period to £10,247k (2021 £16,985k) and net profit decreasing to £511k (2021 £3,625k). The reduction is due to a major Business Process Outsourcing contract ceasing during the year. Following the cessation of this contract the directors made the decision to withdraw from this market, focusing their attention to the delivery of high quality market and social research services. The company has continued to benefit from the experience of the Senior Management Team; more efficient resourcing due to greater home working; better use of technology; and a reduction in ancillary and senior staff overheads. |
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Coming out of the Covid 19 pandemic, the company has been in a position of strength, winning significant research programmes from departments including Defra, Ofcom and HMRC. The Company has also future-proofed the business by migrating a number of client research programmes from either CATI (telephone) or CAPI (face-to-face) to online and digital methods. Post Covid restrictions being lifted the company has returned to programmes which were on hold as well as continuing with new programmes and methods as outlined above. |
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The Market and Social Research industry remains competitive which is expected to lead to continued changes in methodological approaches and the use of technology, an area in which the Company has demonstrated key skills to enable it to remain at the forefront of such changes. |
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The directors consider that maintaining and developing leading edge technology, maintaining and developing effective teams to service its clients, and delivering leadership is key to the ongoing success of the business. |
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KEY PERFORMANCE INDICATORS (KPIs) |
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The directors manage the business based on a number of key indicators. These include revenue growth; gross profit; gross profit margin and individual project and client profitability. |
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BMG Research Ltd (Registered number: 02841970) |
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Strategic Report |
for the Year Ended 30 September 2022 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The Company has considered the principal risks and uncertainties affecting the business as at 30 September 2022 and up to the date of this report. These are described below: |
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Health & safety |
The Company continues to manage and monitor the impact Covid 19 had on the business, taking appropriate measures to mitigate any potential risks of a similar nature. |
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The safety of the workforce and the resilience of the business are of paramount importance, resulting in a significant move to remote working. The board is, however, very conscious of the potential mental health impacts of staff being remote and, as such, have implemented initiatives to support their inclusion, health and wellbeing. Some areas of the business have grown as they are involved in providing valuable information about the effects of the pandemic. The outlook for 2023 is strong due to the need for market research to understand the impact the pandemic has had on individuals and businesses and what the future holds. |
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Staffing |
Retention of key individuals and the ability to recruit and retain staff with the right skills and experience is critical to the success of the business. To manage this risk, the Company has introduced tools to ensure regular communication, training and feedback with staff, together with ensuring teams have the ability to meet together (whether this be virtual or in person) to celebrate successes. |
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Clients |
The Company competes for clients in a competitive industry, together with the need to be on framework agreements to enable bidding on certain projects. To manage this risk the Company regularly liaises with its clients, requesting and acting on feedback thereby maintaining strong client relationships. The Company has recruited a team of insight specialists to add maximum value to client deliverables. Technological changes could impact the method in which the Company's activities are undertaken. The Chief Technology Officer and his team are constantly innovating in order to stay at the forefront of such changes. |
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Sensitivity to Macro-economic trends |
The Company is sensitive to changes and uncertainty in the economic climate including current inflationary pressures. Economic uncertainty can lead to a greater need for information to aid decision making, resulting in greater demand for market research. The directors continue to monitor market conditions and tailor company strategy to address changes in the research market. |
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Regulations and data protection |
The EU General Data Protection Regulations ("GDPR") came into force in May 2018. The Company is committed to ensuring the security and protection of any personal information that is processed and to provide a compliant and consistent approach to data protection. The Company is fully compliant with GDPR and have robust information security policies and procedures in place to protect personal data from unauthorised access, alteration, deletion or destruction. |
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The Company maintains a number of quality accreditations, including: IQCS; MRS; Fair Data; CyberEssentialsPlus; ISO20252; ISO 27001:2013; ISO 9001:2015 |
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ON BEHALF OF THE BOARD: |
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BMG Research Ltd (Registered number: 02841970) |
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Report of the Directors |
for the Year Ended 30 September 2022 |
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The directors present their report with the financial statements of the company for the year ended 30 September 2022. |
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DIVIDENDS |
No dividends will be distributed for the year ended 30 September 2022. |
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DIRECTORS |
The directors set out in the table below have held office during the whole of the period from 1 October 2021 to the date of this report unless otherwise stated. |
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Other changes in directors holding office are as follows: |
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The directors shown below were in office at 30 September 2022 but did not hold any interest in the Ordinary Shares shares of £1 each at 1 October 2021 or 30 September 2022. |
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EMPLOYMENT POLICIES AND EMPLOYEE INVOLVEMENT |
The company's policy is to provide, wherever possible, employment and training and development opportunities for disabled people. It is also committed to supporting employees who become disabled and to helping disabled employees make the best possible use of their skills and potential. |
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The company has a culture of continuous improvement through investment in people at all levels within the company. The company is committed to pursuing equality and diversity in all its employment activities including recruitment, training, career development and promotion and ensuring there is no bias or discrimination in the treatment of people. |
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Employees are consulted regularly about changes which may affect them either through employee forums. These forums, together with regular meetings with particular groups of employees, are used to ensure that employees are kept up to date with the company's business performance and any financial and economic factors affecting the performance of the company. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
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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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
BMG Research Ltd (Registered number: 02841970) |
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Report of the Directors |
for the Year Ended 30 September 2022 |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
BMG Research Ltd |
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Opinion |
We have audited the financial statements of BMG Research Ltd (the 'company') for the year ended 30 September 2022 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, 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). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 September 2022 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company 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. |
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Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
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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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
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Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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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. |
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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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
BMG Research Ltd |
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Matters on which we are required to report by exception |
In the light of the 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 or the Report of the Directors. |
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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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the 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. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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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. |
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Auditors' 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 a Report of the Auditors 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. |
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Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. |
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We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed our audit procedures to respond to these risks, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
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We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, FRS102, the Companies Act 2006 and UK direct and indirect tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of third parties where appropriate. |
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As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors in areas of estimation or judgement, that represented a risk of material misstatement due to fraud. |
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There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. |
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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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
BMG Research Ltd |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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Chartered Accountants |
Registered Auditors |
c/o Blackthorn House |
St Pauls Square |
Birmingham |
West Midlands |
B3 1RL |
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BMG Research Ltd (Registered number: 02841970) |
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Statement of Income and |
Retained Earnings |
for the Year Ended 30 September 2022 |
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30.9.22 | 30.9.21 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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542,862 | 3,208,136 |
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Other operating income |
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OPERATING PROFIT | 5 |
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Interest receivable and similar income |
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543,325 | 3,644,955 |
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Interest payable and similar expenses | 6 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 7 |
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PROFIT FOR THE FINANCIAL YEAR |
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Retained earnings at beginning of year |
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Dividends | 8 |
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RETAINED EARNINGS AT END OF
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BMG Research Ltd (Registered number: 02841970) |
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Balance Sheet |
30 September 2022 |
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30.9.22 | 30.9.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
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Investments | 10 |
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CURRENT ASSETS |
Debtors | 11 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 12 |
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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 |
13 |
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PROVISIONS FOR LIABILITIES | 17 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 18 |
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Share premium | 19 |
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Capital redemption reserve | 19 |
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Retained earnings | 19 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
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BMG Research Ltd (Registered number: 02841970) |
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Cash Flow Statement |
for the Year Ended 30 September 2022 |
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30.9.22 | 30.9.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
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Interest paid | ( |
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Tax paid | ( |
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Net cash from operating activities | ( |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Purchase of fixed asset investments | - | (1 | ) |
Sale of tangible fixed assets |
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Interest received |
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Net cash from investing activities | ( |
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Cash flows from financing activities |
Loan repayments in year | ( |
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Amount introduced by directors | 81,080 | 35,249 |
Equity dividends paid |
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Net cash from financing activities | ( |
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(Decrease)/increase in cash and cash equivalents | ( |
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Cash and cash equivalents at
beginning of year |
2 |
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1,693,096 |
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Cash and cash equivalents at end of
year |
2 |
1,598,351 |
4,699,453 |
BMG Research Ltd (Registered number: 02841970) |
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Notes to the Cash Flow Statement |
for the Year Ended 30 September 2022 |
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1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.9.22 | 30.9.21 |
£ | £ |
Profit before taxation |
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Depreciation charges |
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Profit on disposal of fixed assets | ( |
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Finance costs | 31,848 | 19,742 |
Finance income | (463 | ) | (635 | ) |
717,726 | 3,791,599 |
Increase in trade and other debtors | ( |
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(Decrease)/increase in trade and other creditors | ( |
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Cash generated from operations | ( |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
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Year ended 30 September 2022 |
30.9.22 | 1.10.21 |
£ | £ |
Cash and cash equivalents | 1,598,351 | 4,699,453 |
Year ended 30 September 2021 |
30.9.21 | 1.10.20 |
£ | £ |
Cash and cash equivalents | 4,699,453 | 1,693,096 |
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3. | ANALYSIS OF CHANGES IN NET FUNDS |
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At 1.10.21 | Cash flow | At 30.9.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,699,453 | (3,101,102 | ) | 1,598,351 |
4,699,453 | ( |
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Debt |
Debts falling due within 1 year | (158,606 | ) | 98,634 | (59,972 | ) |
Debts falling due after 1 year | (739,382 | ) | 329,572 | (409,810 | ) |
(897,988 | ) | 428,206 | (469,782 | ) |
Total | 3,801,465 | (2,672,896 | ) | 1,128,569 |
BMG Research Ltd (Registered number: 02841970) |
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Notes to the Financial Statements |
for the Year Ended 30 September 2022 |
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1. | STATUTORY INFORMATION |
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BMG Research Ltd is a
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The presentation currency of the financial statements is the Pound Sterling (£). |
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The nature of the company's operations and principal activities are the provision of independent market research. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Preparation of consolidated financial statements |
The financial statements contain information about BMG Research Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 402/405 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as all of its subsidiaries are immaterial for the purpose of giving a true and fair view, both individually and collectively. |
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Judgements and key sources of estimation uncertainty |
The key assumptions concerning key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include: |
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Turnover measurement |
As noted below revenue from the rendering of service contracts is measured by reference to the stage of completion at the balance sheet date. In arriving at the stage of completion, the directors assess the estimated total costs on a contract by contract basis. |
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This estimation is monitored each month for changes in the operation of the individual contract, its ongoing and expected future performance and any resultant changes in total costs. Subsequent to the completion of contracts, their past performance is reviewed and these results are used by the directors to monitor and improve their estimation techniques for contract costs. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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When the outcome of a transaction can be estimated reliably, turnover from the rendering of services is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to the proportion that costs incurred for work performed to date bear to the estimated total costs. |
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When it is probable that total contract costs will exceed total contract revenue on a service contract, the expected loss is recognised as an expense immediately, with a corresponding provision for an onerous contract. |
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Progress payments and advances received from customers in excess of the value of revenue recognised are not included as revenue but as a liability in the balance sheet. |
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Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable. |
BMG Research Ltd (Registered number: 02841970) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
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2. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
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Long leasehold | - |
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Fixtures and fittings | - |
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Computer equipment | - |
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With effect from 1 May 2015, the company revised its depreciation policy for new fixtures and fittings acquired, to amortise them over either 20 or 10 years as appropriate to the asset. |
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Depreciation commences on assets when they are brought into use. |
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Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
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Financial instruments |
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
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Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously |
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Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. Creditors which are debt instrument, such as loans and finance leases, are subsequently carried at amortised cost, using th effective interest rate method. |
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Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
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BMG Research Ltd (Registered number: 02841970) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
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2. | ACCOUNTING POLICIES - continued |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
|
3. | TURNOVER |
|
The turnover and profit before taxation are attributable to the one principal activity of the company. |
|
An analysis of turnover by class of business is given below: |
|
30.9.22 | 30.9.21 |
£ | £ |
|
|
|
|
|
|
4. | EMPLOYEES AND DIRECTORS |
30.9.22 | 30.9.21 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
|
The average number of employees during the year was as follows: |
30.9.22 | 30.9.21 |
|
Operations | 162 | 239 |
Research | 40 | 32 |
Management and Administration | 12 | 33 |
|
|
|
30.9.22 | 30.9.21 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
BMG Research Ltd (Registered number: 02841970) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
|
4. | EMPLOYEES AND DIRECTORS - continued |
|
Information regarding the highest paid director is as follows: |
30.9.22 | 30.9.21 |
£ | £ |
Emoluments etc |
|
|
Pension contributions to money purchase schemes |
|
|
|
5. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
30.9.22 | 30.9.21 |
£ | £ |
Depreciation - owned assets |
|
|
Profit on disposal of fixed assets | ( |
) |
|
Auditors' remuneration |
|
|
Government grants - covid19 furlough received |
|
( |
) |
|
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.9.22 | 30.9.21 |
£ | £ |
Finance costs |
|
|
Interest on late payments of tax |
|
|
|
|
|
7. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.9.22 | 30.9.21 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
Prior year under/over adjustments | (15,384 | ) | - |
Total current tax |
|
|
|
Deferred tax | ( |
) |
|
Tax on profit |
|
|
|
UK corporation tax has been charged at 19% (2021 - 19%). |
BMG Research Ltd (Registered number: 02841970) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
|
7. | TAXATION - continued |
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
|
30.9.22 | 30.9.21 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
|
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
|
Utilisation of tax losses |
|
( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
|
Claim under R&D Enhanced expenditure | (73,606 | ) | (88,414 | ) |
Total tax charge | 4,374 | 568,011 |
|
8. | DIVIDENDS |
30.9.22 | 30.9.21 |
£ | £ |
Ordinary Shares shares of £1 each |
Interim |
|
|
|
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Long | and | Motor | Computer |
leasehold | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 October 2021 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
|
|
|
( |
) | ( |
) |
At 30 September 2022 |
|
|
|
|
|
DEPRECIATION |
At 1 October 2021 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
Eliminated on disposal |
|
|
|
( |
) | ( |
) |
At 30 September 2022 |
|
|
|
|
|
NET BOOK VALUE |
At 30 September 2022 |
|
|
|
|
|
At 30 September 2021 |
|
|
|
|
|
|
Included in the above are fixed assets pledged as security against bank loans. |
BMG Research Ltd (Registered number: 02841970) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
|
10. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 October 2021 |
and 30 September 2022 |
|
NET BOOK VALUE |
At 30 September 2022 |
|
At 30 September 2021 |
|
|
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
|
|
Registered office: Beech House 1a Greenfield Crescent, Edgbaston, Birmingham, B15 3BE |
Nature of business:
|
% |
Class of shares: | holding |
|
|
30.9.22 | 30.9.21 |
£ | £ |
Aggregate capital and reserves |
|
|
|
|
Registered office: Beech House 1a Greenfield Crescent, Edgbaston, Birmingham, B15 3BE |
Nature of business:
|
% |
Class of shares: | holding |
|
|
30.9.22 | 30.9.21 |
£ | £ |
Aggregate capital and reserves |
|
|
|
|
Registered office: Beech House 1a Greenfield Crescent, Edgbaston, Birmingham, B15 3BE |
Nature of business:
|
% |
Class of shares: | holding |
|
|
30.9.22 | 30.9.21 |
£ | £ |
Aggregate capital and reserves |
|
|
BMG Research Ltd (Registered number: 02841970) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
|
11. | DEBTORS |
30.9.22 | 30.9.21 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Amounts recoverable on contracts |
|
|
Other debtors |
|
|
Directors' current accounts | - | 81,080 |
Tax |
|
|
Prepayments and accrued income |
|
|
|
|
|
Amounts falling due after more than one year: |
Tax |
|
|
|
Aggregate amounts |
|
|
|
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.9.22 | 30.9.21 |
£ | £ |
Bank loans and overdrafts (see note 14) |
|
|
Payments on account |
|
|
Trade creditors |
|
|
Tax |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accruals and deferred income |
|
|
|
|
|
13. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
30.9.22 | 30.9.21 |
£ | £ |
Bank loans (see note 14) |
|
|
Amounts owed to group undertakings |
|
|
|
|
|
14. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
30.9.22 | 30.9.21 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
|
|
BMG Research Ltd (Registered number: 02841970) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
|
14. | LOANS - continued |
30.9.22 | 30.9.21 |
£ | £ |
Amounts falling due between two and five years: |
Bank loans falling due in two to five
years |
|
|
|
Amounts falling due in more than five years: |
|
Repayable by instalments |
Bank loans falling due after five years -
payable in instalments |
169,921 |
221,171 |
|
Bank loans, which are now variable rate loans, are repayable over fifteen years in monthly instalments and interest is payable at a variable rate of 2.8% above base rate. |
|
15. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
30.9.22 | 30.9.21 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Operating leases primarily relate to company vehicles. |
|
16. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
30.9.22 | 30.9.21 |
£ | £ |
Bank loans |
|
|
|
The company issued an all monies debenture dated 22nd September 1994, in favour of the Bank of Scotland, over all of the assets of the company. |
|
The company issued a charge over its premises at 1 a & 1 b Greenfield Crescent, Edgbaston, Birmingham, in favour of the Bank of Scotland. |
|
17. | PROVISIONS FOR LIABILITIES |
30.9.22 | 30.9.21 |
£ | £ |
Deferred tax | 84,107 | 103,358 |
BMG Research Ltd (Registered number: 02841970) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
|
17. | PROVISIONS FOR LIABILITIES - continued |
|
Deferred |
tax |
£ |
Balance at 1 October 2021 |
|
Accelerated capital allowances | (19,251 | ) |
Balance at 30 September 2022 |
|
|
At the date of approval of these accounts Finance Bill 2021-22 has received Royal Assent, increasing the main rate of Corporation Tax to 25 with effect from 1 April 2023. As the majority of the accelerated capital allowances are expected to unwind after this date, provision has been made at the higher rate. |
|
18. | CALLED UP SHARE CAPITAL |
|
Allotted and issued: |
Number: | Class: | Nominal | 30.9.22 | 30.9.21 |
value: | £ | £ |
|
Ordinary shares | £1 | 216,756 | 216,756 |
|
19. | RESERVES |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
|
At 1 October 2021 |
|
|
|
3,883,630 |
Profit for the year |
|
- | - |
|
At 30 September 2022 |
|
|
|
4,390,733 |
|
20. | PENSION COMMITMENTS |
|
The company operates three defined contribution pension schemes for all employees. The charge for the year was £146,869 (2021 - £140,592). |
|
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
|
The following advances and credits to directors subsisted during the years ended 30 September 2022 and 30 September 2021: |
|
30.9.22 | 30.9.21 |
£ | £ |
|
Balance outstanding at start of year |
|
|
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
|
|
BMG Research Ltd (Registered number: 02841970) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 September 2022 |
|
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued |
|
|
Balance outstanding at start of year |
|
|
Amounts repaid |
|
( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
|
|
|
No interest is paid on the above loans and all loans are repayable in full on demand. |
|
22. | RELATED PARTY DISCLOSURES |
|
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
|
During the year, a total of key management personnel compensation of £
|
|
HWM Holdings Limited is regarded by the directors as being the company's ultimate parent company. |
|
The controlling party is Mrs D A Hands. |