Company Registration No. 03226955 (England and Wales)
Baccarat UK Limited
Annual report and financial statements
For the year ended 31 December 2022
55 L
oudoun Road
St J
ohn's Wood
Lon
don NW8 0DL
BACCARAT UK LIMITED
Baccarat UK Limited
COMPANY INFORMATION
Directors
R Grosjean
(Appointed 1 July 2022)
M Henriquez
(Appointed 1 April 2022)
Secretary
M Wittmer
Company number
03226955
Registered office
55 Loudoun Road
St John's Wood
London
NW8 0DL
Auditor
Mazars LLP
6 Sutton Plaza
Sutton Court Road
Sutton
London
SM1 4FS
Business address
87-135 Brompton Road
Knightsbridge
London
SW1X 7XL
BACCARAT UK LIMITED
Baccarat UK Limited
CONTENTS
Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 21
BACCARAT UK LIMITED
Baccarat UK Limited
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The principal activity of the company continued to be that of retailers of crystalware and jewellery.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
N Houdoux
(Resigned 24 June 2022)
H Martin
(Resigned 1 April 2022)
R Grosjean
(Appointed 1 July 2022)
M Henriquez
(Appointed 1 April 2022)
Auditor
Mazars LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be appointed will be put at a General Meeting.
Statement of disclosure to auditor
Each of the directors in office at the date of approval of this annual report confirms that:
so far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware, and
the directors have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
The company has taken the special provisions relating to small companies within Part 15 of the Companies Act 2006 in regards to preparing a strategic report.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
R Grosjean
Director
19 December 2023
BACCARAT UK LIMITED
Baccarat UK Limited
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
The directors are responsible 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
BACCARAT UK LIMITED
Baccarat UK Limited
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BACCARAT UK LIMITED
- 3 -
Opinion
We have audited the financial statements of Baccarat UK Limited (the ‘company’) for the year ended 31 December 2022 which comprise the Profit and loss account, the Balance sheet, the Statement of changes in equity, the 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 FRS 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 company's affairs as at 31 December 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.
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 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.
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.
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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
BACCARAT UK LIMITED
Baccarat UK Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BACCARAT UK LIMITED
- 4 -
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 directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors’ report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In 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 directors’ report.
We have nothing to report in respect of the following matters in relation to which 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.
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemption in preparing the directors’ report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 2, 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.
BACCARAT UK LIMITED
Baccarat UK Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BACCARAT UK LIMITED
- 5 -
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 the financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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.
Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: data protection legislation, indirect tax laws and tax regulations governing the retention of records.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as the Companies Act 2006.
In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, revenue recognition for high value made-to-order items (which we pinpointed to the occurrence and completeness assertions of revenue and deferred income respectively), and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
BACCARAT UK LIMITED
Baccarat UK Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BACCARAT UK LIMITED
- 6 -
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body for our audit work, for this report, or for the opinions we have formed.
Elisabeth Maxwell (Senior Statutory Auditor) for and on behalf of Mazars LLP
Chartered Accountants and Statutory Auditor
6 Sutton Plaza
Sutton Court Road
Sutton
SM1 4FS
21 December 2023
BACCARAT UK LIMITED
Baccarat UK Limited
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2022
2021
as restated
Notes
£
£
Turnover
3
3,645,798
3,937,009
Cost of sales
(1,630,396)
(1,924,464)
Gross profit
2,015,402
2,012,545
Administrative expenses
(1,924,256)
(1,813,045)
Other operating income
2,805
Operating profit
4
91,146
202,305
Interest receivable and similar income
6
92
9
Interest payable and similar expenses
7
(13,824)
(17,964)
Profit before taxation
77,414
184,350
Taxation
8
(12,294)
(34,590)
Profit for the financial year
65,120
149,760
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There are no recognised gains or losses other than those passing through the profit and loss account.
BACCARAT UK LIMITED
Baccarat UK Limited
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 8 -
2022
2021
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
9
101,891
Current assets
Stocks
10
848,144
899,961
Debtors
11
480,657
633,682
Cash at bank and in hand
1,414,157
72,911
2,742,958
1,606,554
Creditors: amounts falling due within one year
12
(2,162,789)
(1,175,839)
Net current assets
580,169
430,715
Total assets less current liabilities
580,169
532,606
Provisions for liabilities
14
(21,020)
(38,577)
Net assets
559,149
494,029
Capital and reserves
Called up share capital
16
315,000
315,000
Profit and loss reserves
244,149
179,029
Total equity
559,149
494,029
The financial statements were approved by the board of directors and authorised for issue on 19 December 2023 and are signed on its behalf by:
R Grosjean
Director
Company Registration No. 03226955
BACCARAT UK LIMITED
Baccarat UK Limited
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 December 2021:
Balance at 1 January 2021
315,000
29,269
344,269
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
149,760
149,760
Balance at 31 December 2021
315,000
179,029
494,029
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
65,120
65,120
Balance at 31 December 2022
315,000
244,149
559,149
BACCARAT UK LIMITED
Baccarat UK Limited
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
2022
2021
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
19
1,408,749
(187,985)
Interest paid
(13,824)
(17,964)
Income taxes paid
(53,771)
(27,580)
Net cash inflow/(outflow) from operating activities
1,341,154
(233,529)
Investing activities
Interest received
92
9
Net cash generated from investing activities
92
9
Net increase/(decrease) in cash and cash equivalents
1,341,246
(233,520)
Cash and cash equivalents at beginning of year
72,911
306,431
Cash and cash equivalents at end of year
1,414,157
72,911
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
1
Accounting policies
Company information
Baccarat UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 55 Loudoun Road, St John's Wood, London, NW8 0DL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on the going concern basis which assumes that the company will continue in operational existence for the foreseeable future. The directors have considered the company's business prospects and all relevant aspects of the company's financing position, including amounts due to and due from related companies and its ability to generate positive cash flows and obtain any additional funding that may be required. The immediate parent entity has confirmed that should it be required, it will provide support to the company for the 12 months following the signing of the accounts.true
1.3
Turnover
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually at the point of sale.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
39 Months straight line
Plant and machinery
25% Reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand.
1.8
Financial assets
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Loans and receivables
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
1.9
Financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Provision for stock
The company applies a stock obsolescence provision based on the ageing of the stock and sales history. Whilst this is an estimate, the directors consider this to be an appropriate policy based on their ongoing knowledge and experience in the retail industry.
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2022
2021
£
£
Turnover analysed by class of business
Concession sales
3,645,798
3,937,009
2022
2021
£
£
Other significant revenue
Interest income
92
9
Grants received
-
2,805
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
3,645,798
3,937,009
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
30,000
17,500
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
6
6
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
255,869
247,421
Social security costs
24,145
22,476
Pension costs
5,145
5,975
285,159
275,872
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
6
Interest receivable and similar income
2022
2021
£
£
Other interest receivable and similar income
92
9
7
Interest payable and similar expenses
2022
2021
£
£
Interest payable/(receivable) to group undertakings
13,824
17,964
8
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
30,668
53,771
Adjustments in respect of prior periods
(817)
Total current tax
29,851
53,771
Deferred tax
Origination and reversal of timing differences
(17,557)
(19,181)
Total tax charge
12,294
34,590
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
77,414
184,350
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
14,709
35,027
Tax effect of expenses that are not deductible in determining taxable profit
15,959
18,744
Adjustments in respect of prior years
(817)
Deferred tax on timing differences
(17,557)
(19,181)
Taxation charge for the year
12,294
34,590
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
9
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2022 and 31 December 2022
335,798
Depreciation and impairment
At 1 January 2022
233,907
Depreciation charged in the year
101,891
At 31 December 2022
335,798
Carrying amount
At 31 December 2022
At 31 December 2021
101,891
10
Stocks
2022
2021
£
£
Stocks
848,144
899,961
11
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
355,537
621,814
Other debtors
125,120
11,868
480,657
633,682
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
12
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
26,828
22,237
Amounts due to group undertakings
1,384,486
572,881
Corporation tax
30,668
54,588
Other taxation and social security
186,723
322,613
Other creditors
534,084
203,520
2,162,789
1,175,839
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
935
18,492
2022
Movements in the year:
£
Liability at 1 January 2022
18,492
Credit to profit or loss
(17,557)
Liability at 31 December 2022
935
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.
14
Provisions for liabilities
2022
2021
£
£
Asset rehabilitation obligation provision
20,085
20,085
Deferred tax liabilities
13
935
18,492
21,020
38,577
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 19 -
15
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
5,145
5,975
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
16
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
165,000
165,000
165,000
165,000
Redeemable ordinary shares of £1 each
150,000
150,000
150,000
150,000
315,000
315,000
315,000
315,000
All shares in the company rank pari passu and carry equal voting rights.
17
Related party transactions
The company has taken advantage of the exemption available in accordance with FRS102 Section 33 'Related party disclosures' not to disclosure transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.
18
Parent company
The company is a subsidiary of Baccarat SA, a company incorporated in France whose accounts are available to the public and may be obtained from Rue des Cristalleries, 54120 Baccarat, France.
The ultimate controlling company is Fortune Legend Limited Sarl. (FLL), a company incorporated in Luxembourg, whose address is 124, Boulevard de la Petrusse, L-2330 Luxembourg.
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
19
Cash generated from operations
2022
2021
£
£
Profit for the year after tax
65,120
149,760
Adjustments for:
Taxation charged
12,294
34,590
Finance costs
13,824
17,964
Investment income
(92)
(9)
Depreciation and impairment of tangible fixed assets
101,891
101,955
Movements in working capital:
Decrease in stocks
51,817
419,921
Decrease/(increase) in debtors
153,025
(39,858)
Increase/(decrease) in creditors
669,443
(970,523)
Increase in deferred income
341,427
98,215
Cash generated from/(absorbed by) operations
1,408,749
(187,985)
20
Prior period adjustment
There have been three restatements in the prior year accounts. These have been made due to changes to classifications in the current year accounts and therefore the prior year balances have been restated for comparative purposes. There is no impact on the profit and loss. The adjustments are as follows.
The reclassification of a balance included in other creditors to debtors in order to show the net debtor position with a 3rd party to align to the terms of the contract. The amount reclassified in the current year is £92,077 (2021: £160,218).
The reclassification of commission costs from Cost of Sales to Administrative expenses to align with the group accounting treatment. The amount reclassified in the current year is £1,307,539 (2021: £1,283,744).
The reclassification of an amount due to a group entity from Trade Creditors to Amounts due to group undertakings due to this balance being repaid over a longer period. The amount reclassified in the current year is £284,357 (2021: £462,201). This reclassification has not had an impact on the total creditor balance and therefore is not set out below.
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Dec 2021
£
£
£
Current assets
Debtors due within one year
793,900
(160,218)
633,682
Creditors due within one year
Other creditors
(833,535)
160,218
(673,317)
Net assets
494,029
-
494,029
Capital and reserves
Total equity
494,029
-
494,029
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
20
Prior period adjustment
(Continued)
- 21 -
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 December 2021
£
£
£
Cost of sales
(3,232,003)
1,307,539
(1,924,464)
Administrative expenses
(505,506)
(1,307,539)
(1,813,045)
Profit for the financial period
149,760
-
149,760
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2021
£
Total adjustments
-
Profit as previously reported
149,760
Profit as adjusted
149,760
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