Company Registration No. 03226955 (England and Wales)
Baccarat UK Limited
Annual report and financial statements
For the year ended 31 December 2020
BACCARAT UK LIMITED
Baccarat UK Limited
COMPANY INFORMATION
Directors
N Houdoux
H Martin
(Appointed 27 September 2021)
Secretary
M Wittmer
Company number
03226955
Registered office
55 Loudoun Road
St John's Wood
London
NW8 0DL
Auditor
CBW Audit Limited
66 Prescot Street
London
E1 8NN
Business address
87-135 Brompton Road
Knightsbridge
London
SW1X 7XL
BACCARAT UK LIMITED
Baccarat UK Limited
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
BACCARAT UK LIMITED
Baccarat UK Limited
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2020.
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:
P Amiel
(Resigned 27 September 2021)
N Houdoux
H Martin
(Appointed 27 September 2021)
Post reporting date events
As at the date of signing of these financial statements, the UK Government has enacted emergency measures to reduce transmission of Coronavirus (COVID-19). The directors continue to monitor the developing situation and take steps to reduce the impact on operations and financial performance.
In view of "lock-down" restrictions that were implemented, retail operations were curtailed whilst shops in specific retail sectors were shut. Baccarat UK Limited however made use of the Government Furlough Scheme for their employees in order to minimise company overheads.
Baccarat UK have taken advantage of the VAT deferment under the COVID relief scheme which is due to be paid by 31 March 2021.
In the current complex and uncertain economic environment that exists, as lockdown restrictions have now started to be lifted, the company has recommenced its trading activities, and together with the continued support of its parent company, Baccarat UK Limited will focus on growing its performance so as to restore it to previous levels of activity.
Auditor
In accordance with section 487 of the Companies Act 2006, a resolution proposing that CBW Audit Limited be reappointed as auditors of the company will be put at the Annual 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.
BACCARAT UK LIMITED
Baccarat UK Limited
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 2 -
On behalf of the board
N Houdoux
Director
28 September 2021
BACCARAT UK LIMITED
Baccarat UK Limited
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 3 -
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
- 4 -
Opinion
We have audited the financial statements of Baccarat UK Limited
(the 'company')
for the year ended 31 December 2020 set out on pages 8 to 22
,
which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity, 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 2020 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The other information comprises the information included in the annual report, other than the financial statements and our auditor's opinion thereon. The directors are responsible for the other information, 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.
I
n 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the directors' r
eport 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.
BACCARAT UK LIMITED
Baccarat UK Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BACCARAT UK LIMITED
- 5 -
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 identifie
d
material misstatements in 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, 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; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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
- 6 -
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 ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. The laws and regulations applicable to the company were identified through discussions with directors and other management, and from our commercial knowledge and experience of crystalware and jewellery retailers. Of these laws and regulations, we focused on those that we considered may have a direct material effect on the financial statements or the operations of the company, including industrial regulations applicable to Baccarat industry and products, Companies Act 2006, taxation legislation, data protection, anti-bribery, anti-money-laundering, employment, environmental and health and safety legislation. The extent of compliance with these laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence. The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
-
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
-
understanding the design of the company’s remuneration policies.
To address the risk of fraud through management bias and override of controls, we:
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
tested journal entries to identify unusual transactions;
-
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
-
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
agreeing financial statement disclosures to underlying supporting documentation;
-
reading the minutes of meetings of those charged with governance;
-
enquiring of management as to actual and potential litigation and claims; and
-
reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
BACCARAT UK LIMITED
Baccarat UK Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BACCARAT UK LIMITED
- 7 -
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://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.
Robin Davis (Senior Statutory Auditor)
for and on behalf of CBW Audit Limited
28 September 2021
Chartered Accountants
Statutory Auditor
66 Prescot Street
London
E1 8NN
BACCARAT UK LIMITED
Baccarat UK Limited
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 8 -
2020
2019
Notes
£
£
Turnover
3
2,723,903
2,933,257
Cost of sales
(2,133,873)
(2,141,213)
Gross profit
590,030
792,044
Administrative expenses
(508,098)
(671,763)
Other operating income
33,277
Operating profit
4
115,209
120,281
Interest receivable and similar income
6
65
112
Interest payable and similar expenses
7
1,876
(2,768)
Profit before taxation
117,150
117,625
Taxation
8
(65,564)
(527)
Profit for the financial year
51,586
117,098
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 2020
31 December 2020
- 9 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
9
203,846
305,828
Current assets
Stocks
10
1,319,882
Debtors
11
754,042
841,588
Cash at bank and in hand
306,431
314,584
2,380,355
1,156,172
Creditors: amounts falling due within one year
12
(2,182,173)
(1,104,878)
Net current assets
198,182
51,294
Total assets less current liabilities
402,028
357,122
Provisions for liabilities
14
(57,759)
(64,439)
Net assets
344,269
292,683
Capital and reserves
Called up share capital
16
315,000
315,000
Profit and loss reserves
29,269
(22,317)
Total equity
344,269
292,683
The financial statements were approved by the board of directors and authorised for issue on 28 September 2021 and are signed on its behalf by:
N Houdoux
Director
Company Registration No. 03226955
BACCARAT UK LIMITED
Baccarat UK Limited
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2019
315,000
(139,415)
175,585
Year ended 31 December 2019:
Profit and total comprehensive income for the year
-
117,098
117,098
Balance at 31 December 2019
315,000
(22,317)
292,683
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
51,586
51,586
Balance at 31 December 2020
315,000
29,269
344,269
BACCARAT UK LIMITED
Baccarat UK Limited
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 11 -
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
19
(10,073)
462,293
Interest paid
1,876
(2,768)
Income taxes paid
(21)
(12)
Net cash (outflow)/inflow from operating activities
(8,218)
459,513
Investing activities
Purchase of tangible fixed assets
(311,062)
Interest received
65
112
Net cash generated from/(used in) investing activities
65
(310,950)
Net (decrease)/increase in cash and cash equivalents
(8,153)
148,563
Cash and cash equivalents at beginning of year
314,584
166,021
Cash and cash equivalents at end of year
306,431
314,584
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 12 -
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 a
mounts
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.
true
There are some concerns given the widespread transmission of COVID 19 around the world and the associated economic downturn, but the directors are confident that Baccarat UK will continue in operational existence for the foreseeable future.
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
.
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 13 -
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.
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 2020
1
Accounting policies
(Continued)
- 14 -
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
paymen
ts 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. A
m
ounts 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.
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 15 -
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 i
s
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.
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 receive
d
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 are included in the profit and loss account for the period.
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 16 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Depreciation
Depreciation is calculated to charge the cost of each asset, less its residual value, over its useful economic life. The condition of assets is reviewed regularly to ensure that the rate of depreciation is not excessive or inadequate.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2020
2019
£
£
Turnover analysed by class of business
Concession sales
2,677,951
2,645,876
Commissions receivable
45,952
287,381
2,723,903
2,933,257
2020
2019
£
£
Other significant revenue
Interest income
65
112
Grants received
33,277
2020
2019
£
£
Turnover analysed by geographical market
United Kingdom
2,723,903
2,933,257
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 17 -
4
Operating profit
2020
2019
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
10,500
10,500
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was 6 (2019 - 6).
2020
2019
Number
Number
6
6
Their aggregate remuneration comprised:
2020
2019
£
£
Wages and salaries
210,561
221,475
Social security costs
17,681
19,979
Pension costs
5,561
5,031
233,803
246,485
6
Interest receivable and similar income
2020
2019
£
£
Other interest receivable and similar income
65
112
7
Interest payable and similar expenses
2020
2019
£
£
Interest payable to group undertakings
24,760
38,948
8
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
28,396
21
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
8
Taxation
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
37,168
506
Total tax charge
65,564
527
The company has estimated losses of £Nil (2019: £230,779) available to carry forward against future trading profits.
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:
2020
2019
£
£
Profit before taxation
117,150
117,625
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
22,259
22,349
Tax effect of expenses that are not deductible in determining taxable profit
6,137
72
Unutilised tax losses carried forward
14,270
Permanent capital allowances in excess of depreciation
(36,670)
Deferred tax on timing differences
37,168
506
Taxation charge for the year
65,564
527
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 19 -
9
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2020 and 31 December 2020
335,798
Depreciation and impairment
At 1 January 2020
29,970
Depreciation charged in the year
101,982
At 31 December 2020
131,952
Carrying amount
At 31 December 2020
203,846
At 31 December 2019
305,828
10
Stocks
2020
2019
£
£
Stocks
1,319,882
-
11
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
519,411
475,039
Amounts owed by group undertakings
229,820
319,048
Other debtors
4,811
3,653
754,042
797,740
Amounts falling due after more than one year:
Deferred tax asset
43,848
Total debtors
754,042
841,588
Trade debtors disclosed above are classified as loans and receivables and are therefore measured at amortised cost.
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 20 -
12
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
1,667,529
278,837
Amounts due to group undertakings
385,742
Corporation tax
28,396
21
Other taxation and social security
286,199
183,657
Other creditors
200,049
256,621
2,182,173
1,104,878
Included within trade creditors is an amount of £
1,667,184 (2019: £260,111)
due to Baccarat SA.
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2020
2019
2020
2019
Balances:
£
£
£
£
Accelerated capital allowances
37,674
44,354
-
-
Tax losses
-
-
-
43,848
37,674
44,354
-
43,848
2020
Movements in the year:
£
Liability at 1 January 2020
506
Charge to profit or loss
37,168
Liability at 31 December 2020
37,674
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.
BACCARAT UK LIMITED
Baccarat UK Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 21 -
14
Provisions for liabilities
2020
2019
£
£
Asset rehabilitation obligation provision
20,085
20,085
Deferred tax liabilities
13
37,674
44,354
57,759
64,439
15
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
5,561
5,031
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
2020
2019
£
£
Ordinary share capital
Issued and fully paid
165,000 Ordinary shares of £1 each
165,000
165,000
150,000 Redeemable ordinary shares of £1 each
150,000
150,000
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 Fortun
e
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 2020
- 22 -
19
Cash generated from operations
2020
2019
£
£
Profit for the year after tax
51,586
117,098
Adjustments for:
Taxation charged
65,564
527
Finance costs
(1,876)
2,768
Investment income
(65)
(112)
(Gain)/loss on disposal of tangible fixed assets
102,351
Depreciation and impairment of tangible fixed assets
101,982
53,953
Movements in working capital:
(Increase) in stocks
(1,319,882)
-
Decrease/(increase) in debtors
43,698
(391,507)
Increase in creditors
1,094,517
524,907
(Decrease)/increase in deferred income
(45,597)
52,308
Cash (absorbed by)/generated from operations
(10,073)
462,293
2020-12-31
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