Ivor Braka Limited - Period Ending 2020-10-31
Ivor Braka Limited - Period Ending 2020-10-31
Registration number:
Ivor Braka Limited
for the Year Ended 31 October 2020
Ivor Braka Limited
Contents
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Company Information |
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Strategic Report |
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Director's Report |
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Statement of Director's Responsibilities |
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Independent Auditor's Report |
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Consolidated Income Statement |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
Ivor Braka Limited
Company Information
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Director |
Ivor Braka |
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Company secretary |
Ivor Braka |
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Registered office |
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Solicitors |
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Bankers |
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Auditors |
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Ivor Braka Limited
Strategic Report for the Year Ended 31 October 2020
The director presents his strategic report for the year ended 31 October 2020.
Principal activity
The principal activity of the group is fine art dealing in international markets and that of a public house providing food, drink and accomodation.
Fair review of the business
The group has had another satisfactory year. The market continues to shift away from small dealerships such as Ivor Braka Limited towards the global galleries such as Larry Gagosian and David Zwirner and market share is increasingly going to major auction houses. Because of its long history of trading and its reputation with long standing clients, the company continues to hold its head above water in spite of this changing landscape.
The group's key financial and other performance indicators during the year were as follows:
|
Unit |
2020 |
2019 |
|
|
Turnover |
£ |
7,577,891 |
9,765,043 |
|
Profit for the year after taxation |
£ |
838,994 |
(267,017) |
|
Retained earnings |
£ |
15,394,430 |
19,555,436 |
Principal risks and uncertainties
The main uncertainties lie with the principal art business activity and the public house as detailed in the going concern accounting policy.
Approved by the
.........................................
Company secretary and director
Ivor Braka Limited
Director's Report for the Year Ended 31 October 2020
The director presents his report and the for the year ended 31 October 2020.
Director of the group
The director who held office during the year was as follows:
Financial instruments
Objectives and policies
The group's principal financial instruments include financial assets and liabilities such as trade debtors and trade creditors which arise directly from operations.
Price risk, credit risk, liquidity risk and cash flow risk
Foreign currency risk: The group's principal foreign currency exposure arises from trading with entities in other countries. It maintains certain foreign currency denominated bank accounts/overdrafts to limit its exposure to the foreign currency risk.
Credit risk: Receivable balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Liquidity risk: The group manages its cash and borrowing requirements via an overdraft facility which ensures the group has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk: The group is exposed to cash flow interest risk on its bank overdraft.
Going concern
From early 2020 the COVID-19 pandemic swept around the world, with the World Health Organisation declaring a global pandemic on 11 March 2020, followed shortly by the UK government announcing various restrictive measures on 23 March 2020, which has had a previously unforeseen impact on the group’s ability to trade as normal. The impact of the COVID-19 pandemic (coronavirus) on the ability of the group to continue as a going concern has been assessed by the director, this is further discussed in the accounting policies on page 15.
Disclosure of information to the auditor
The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.
Approved by the
.........................................
Company secretary and director
Ivor Braka Limited
Statement of Director's Responsibilities
The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.
Ivor Braka Limited
Independent Auditor's Report to the Members of Ivor Braka Limited
Opinion
We have audited the financial statements of Ivor Braka Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2020, which comprise the Consolidated Profit and Loss Account and Statement of Retained Earnings, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 2020 and of the group's 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. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Ivor Braka Limited
Independent Auditor's Report to the Members of Ivor Braka Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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• |
the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors’ remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities set out on page 4, the director is 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 director determines 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 director is responsible for assessing the group’s and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Ivor Braka Limited
Independent Auditor's Report to the Members of Ivor Braka Limited
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 gained an understanding of the legal and regulatory framework applicable to the company by considering, amongst other things, the industry in which it operates, and considered the risk of acts by the company and the group that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the assessed level of risk, but recognised 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.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, UK Company Law and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of third parties. 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. 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 management that represented a risk of material misstatement due to fraud.
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 parent company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the parent company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
22 Chancery Lane
WC2A 1LS
Ivor Braka Limited
Consolidated Profit and Loss Account for the Year Ended 31 October 2020
|
Note |
2020 |
(As restated) |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Foreign currency (loss)/gain |
( |
|
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating profit |
|
|
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
(737,983) |
(893,384) |
||
|
Profit/(loss) before tax |
|
( |
|
|
Taxation |
( |
( |
|
|
Profit/(loss) for the financial year |
|
( |
|
|
Profit/(loss) attributable to: |
|||
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Owners of the company |
|
( |
The group has no recognised gains or losses for the year other than the results above.
Ivor Braka Limited
(Registration number: 01840837)
Consolidated Balance Sheet as at 31 October 2020
|
Note |
2020 |
(As restated) |
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Fixed assets |
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Tangible assets |
|
|
|
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Current assets |
|||
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Stocks |
|
|
|
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Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
2 |
2 |
|
|
Other reserves |
261,931 |
261,931 |
|
|
Profit and loss account |
15,394,430 |
19,555,436 |
|
|
Equity attributable to owners of the company |
15,656,363 |
19,817,369 |
|
|
Shareholders' funds |
15,656,363 |
19,817,369 |
Approved and authorised by the
.........................................
Company secretary and director
Ivor Braka Limited
(Registration number: 01840837)
Balance Sheet as at 31 October 2020
|
Note |
2020 |
(As restated) |
|
|
Fixed assets |
|||
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Tangible assets |
|
|
|
|
Investments |
|
|
|
|
|
|
||
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
- |
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
2 |
2 |
|
|
Other reserves |
261,931 |
261,931 |
|
|
Profit and loss account |
18,758,014 |
22,479,181 |
|
|
Shareholders' funds |
19,019,947 |
22,741,114 |
The company made a profit after tax for the financial year of £1,278,833 (2019 - profit of £162,498).
Approved and authorised by the
.........................................
Company secretary and director
Ivor Braka Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 October 2020
Equity attributable to the parent company
|
Share capital |
Capital contribution |
Profit and loss account |
Total |
Total equity |
|
|
At 1 November 2019 |
|
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
|
Total comprehensive income |
- |
- |
|
|
|
|
Dividends |
- |
- |
( |
( |
( |
|
At 31 October 2020 |
|
|
|
|
|
|
Share capital |
Other reserves |
Profit and loss account |
Total |
Total equity |
|
|
At 1 November 2018 |
|
|
|
|
|
|
Loss for the year |
- |
- |
( |
( |
( |
|
Total comprehensive income |
- |
- |
( |
( |
( |
|
At 31 October 2019 |
2 |
261,931 |
19,555,436 |
19,817,369 |
19,817,369 |
Ivor Braka Limited
Statement of Changes in Equity for the Year Ended 31 October 2020
|
Share capital |
Capital contribution |
Profit and loss account |
Total |
|
|
At 1 November 2019 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
Total comprehensive income |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
At 31 October 2020 |
|
|
|
|
|
Share capital |
Other reserves |
Profit and loss account |
Total |
|
|
At 1 November 2018 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
Total comprehensive income |
- |
- |
|
|
|
At 31 October 2019 |
2 |
261,931 |
22,479,181 |
22,741,114 |
Ivor Braka Limited
Consolidated Statement of Cash Flows for the Year Ended 31 October 2020
|
Note |
2020 |
(As restated) |
|
|
Cash flows from operating activities |
|||
|
Profit/(loss) for the year |
|
( |
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Finance income |
( |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
Foreign exchange (gains) / losses |
|
( |
|
|
|
|
||
|
Working capital adjustments |
|||
|
(Increase)/decrease in stocks |
( |
|
|
|
Decrease in trade debtors |
|
|
|
|
Increase/(decrease) in trade creditors |
|
( |
|
|
Cash generated from operations |
|
|
|
|
Income taxes received/(paid) |
|
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Proceeds from borrowings |
|
|
|
|
Dividends paid |
( |
- |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase in cash and cash equivalents |
|
|
|
|
Cash and cash equivalents at 1 November |
( |
(15,844,396) |
|
|
Effect of exchange rate fluctuations on cash held |
( |
|
|
|
Cash and cash equivalents at 31 October |
(11,522,771) |
(11,482,406) |
|
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
|
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal place of business is:
63 Cadogan Square
London
SW1X 0DY
|
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value. The financial statements are denominated in Sterling and rounded to the nearest £.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 October 2020.
No profit and loss account is presented for the company as permitted by section 408 of the Companies Act 2006. The profit after tax for the individual company was £1,429,686 (2019 - £158,854). No statement of cash flows is presented for the company as permitted by FRS 102.
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
The group remains a going concern at the date of approval of these financial statements as it is supported by Mr Braka, who owns 100% of the share capital, and the bank overdraft has been renewed after the year end. The group relies on its bank overdraft for trading which is guaranteed by Mr Braka.
The impact of the COVID-19 pandemic (coronavirus) on the ability of the group to continue as a going concern has been assessed by the director. Since the outbreak, the company has experienced a significant reduction in sales due to movement restrictions placed on the group and its customers, which had a negative impact on cashflows. Since the easing of restrictions, and taking into consideration the latest information published by the UK government concerning the pandemic, the director has prepared the financial statements on the going concern basis. The financial statements do not include any adjustments that would be necessary if the going concern basis was not appropriate.
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
Prior period errors
Following further work on the review of costs of sales, it became apparent that the cost of sales were understated by £19,182 as at 31 October 2019 and accruals were understated by £793,964. Consequently the loss for the year to 31 October 2019 has been increased from £251,479 to £270,661 and the net assets have been decreased from £20,460,480 to £19,817,369.
Relating to the current period disclosed in these financial statements | Relating to the prior period disclosed in these financial statements | Relating to periods before the prior period disclosed in these financial statements | |
Cost of sales | - | 19,182 | 774,782 |
Creditors due within one year | - | 19,182 | 627,573 |
Profit and loss reserves | - | (620,285) | (623,929) |
Corporation tax charge | - | (3,644) | (150,853) |
Key sources of estimation uncertainty
Stock is valued at the lower of cost and net realisable value. Where works by artists have fallen short of auction estimates or have failed to sell, it may indicate that a write down of stock value is due. A key estimation is to make a judgement of net realisable value based on current market conditions. The carrying amount is £27,383,895 (2019 - £25,490,332).
Revenue recognition
Turnover represents the invoiced amount of goods sold and services provided in respect of fine art transactions stated exclusive of value added tax.
Income from the sale of works of art is recognised at the date when the risks and rewards of ownership of the item transfer to the purchaser. Commission income is recognised when the company is entitled to receipt as a result of the completion of a deal.
Turnover at the Gunton Arms Limited is recognised on an accruals basis in the period to which it relates. Deposits received are recorded as deferred income unless the services to which they relate had been provided as at the balance sheet date, whereupon the deposit is included within turnover. Interest receivable is recognised on an accruals basis.
Government grants
Grants received are recognised and accounted for when the group has entitlement to the funds, the amount can be quantified and receipt is probable, in line with the policy for incoming resources. Any conditions attached to the grant must be satisfied or reasonably expected to be satisfied at the time of recognition of the grant.
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
Foreign currency transactions and balances
the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the
respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary
items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on
the initial transaction dates.
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of
certain items for taxation and accounting purposes, which have arisen but not reversed by the balance sheet date.
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
Tangible assets
Tangible assets are stated at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Reference books |
10% per annum on cost |
|
Fixtures and fittings |
10% - 20% per annum on cost |
|
Office equipment |
10% - 25% per annum on cost |
|
Freehold buildings |
2% per annum on cost |
|
Freehold land |
Freehold land is not depreciated |
|
Plant and machinery |
10% - 20% per annum on cost |
Investments
Investments in shares which are not publicly traded are measured at cost less impairment. The company's investments consist only of its investments in its subsidiaries.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.
Inventories
Stock is valued at the lower of cost and the director's opinion of net realisable value.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Loans with interest charged below that of a market rate of interest are measured at the present value of future
payments discounted at the market rate of interest available to the group on other commercial loans and
borrowings. The difference between the cash value of the loans and the present value is recognised as a capital
contribution by the shareholders within equity.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as
operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity.
Dividends
Interim dividends are recognised in the period in which paid and final dividends are recognised in the period in
which they are approved by the members.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Classification
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
|
Revenue |
The analysis of the group's revenue for the year from continuing operations is as follows:
|
2020 |
2019 |
|
|
Sale of goods |
|
|
|
Rendering of services |
|
|
|
Commissions received |
|
|
|
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2020 |
2019 |
|
|
Government grants |
|
- |
|
Miscellaneous other operating income |
|
|
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2020 |
2019 |
|
|
Depreciation expense |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
Other interest receivable and similar income |
|
2020 |
2019 |
|
|
Other finance income |
|
|
|
Interest payable and similar expenses |
|
2020 |
2019 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest expense on other finance liabilities |
|
|
|
|
|
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
|
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
|
Note |
2020 |
2019 |
|
|
Wages and salaries |
|
|
|
|
Social security costs |
|
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
Other employee expense |
|
|
|
|
|
|
The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:
|
2020 |
2019 |
|
|
Administration and support |
|
|
|
|
|
|
Auditors' remuneration |
|
2020 |
2019 |
|
|
Audit of these financial statements |
14,571 |
12,000 |
|
Other fees to auditors |
||
|
All other non-audit services |
|
|
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
|
Taxation |
Tax charged/(credited) in the income statement
|
2020 |
(As restated) |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2019 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2020 |
(As restated) |
|
|
Profit/(loss) before tax |
|
( |
|
Corporation tax at standard rate |
|
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Effect of tax losses |
|
|
|
Decrease in UK and foreign current tax from adjustment for prior periods |
- |
( |
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Total tax charge |
|
|
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
Deferred tax
Group
Deferred tax assets and liabilities
|
2020 |
Liability |
|
Excess of capital allowances over depreciation |
|
|
2019 |
Liability |
|
Excess of capital allowances over depreciation |
|
Company
Deferred tax assets and liabilities
|
2020 |
Liability |
|
Excess of capital allowances over depreciation |
|
|
2019 |
Liability |
|
Excess of capital allowances over depreciation |
|
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
|
Tangible assets |
Group
|
Land and buildings |
Plant and machinery |
Fixtures and fittings |
Office equipment |
Other tangibles |
Total |
|
|
Cost or valuation |
||||||
|
At 1 November 2019 |
|
|
|
|
|
|
|
Additions |
|
|
|
|
- |
|
|
At 31 October 2020 |
|
|
|
|
|
|
|
Depreciation |
||||||
|
At 1 November 2019 |
|
|
|
|
|
|
|
Charge for the year |
|
|
|
|
- |
|
|
At 31 October 2020 |
|
|
|
|
|
|
|
Carrying amount |
||||||
|
At 31 October 2020 |
|
|
|
|
- |
|
|
At 31 October 2019 |
|
|
|
|
- |
|
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
Company
|
Fixtures and fittings |
Office equipment |
Other tangible assets |
Total |
|
|
Cost or valuation |
||||
|
At 1 November 2019 |
|
|
|
|
|
Additions |
- |
|
- |
|
|
At 31 October 2020 |
|
|
|
|
|
Depreciation |
||||
|
At 1 November 2019 |
|
|
|
|
|
Charge for the year |
|
|
- |
|
|
At 31 October 2020 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 October 2020 |
|
|
- |
|
|
At 31 October 2019 |
|
|
- |
|
|
Investments |
Company
|
2020 |
2019 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 November 2019 |
|
|
At 31 October 2020 |
|
|
Carrying amount |
|
|
At 31 October 2020 |
|
|
At 31 October 2019 |
|
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2020 |
2019 |
|||
|
Subsidiary undertakings |
||||
|
|
22 Chancery Lane, London, WC2A 1LS |
Ordinary |
|
|
|
England |
||||
|
|
22 Chancery Lane, London, WC2A 1LS |
Ordinary |
|
|
|
England |
||||
|
Subsidiary undertakings |
|
The Gunton Arms Limited The principal activity of The Gunton Arms Limited is |
|
The Suffield Arms Limited The principal activity of The Suffield Arms Limited is |
For the year ending 31 October 2020 the following subsidiaries were entitled to exemption from audit under section 479A of the Companies Act 2006 relating to subsidiary companies:
|
The Gunton Arms Limited - Company No. 06997263 |
|
The Suffield Arms Limited - Company No. 09957797 |
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
|
Stocks |
|
Group |
Company |
|||
|
2020 |
2019 |
2020 |
2019 |
|
|
Works of art, food and wine |
|
|
|
|
Group
The cost of stocks recognised as an expense in the year amounted to £
Company
The cost of stocks recognised as an expense in the year amounted to £3,196,774 (2019 - £8,325,280).
|
Debtors |
|
Group |
Company |
||||
|
Note |
2020 |
(As restated) |
2020 |
(As restated) |
|
|
Trade debtors |
|
|
|
|
|
|
Amounts owed by related parties |
- |
- |
|
|
|
|
Other receivables |
|
|
|
|
|
|
Directors' current accounts |
- |
|
- |
|
|
|
Prepayments |
|
|
|
|
|
|
Income tax asset |
- |
|
- |
|
|
|
Total current trade and other debtors |
|
|
|
|
|
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2020 |
2019 |
2020 |
2019 |
|
|
Cash on hand |
|
|
- |
- |
|
Cash at bank |
|
|
- |
|
|
|
|
- |
|
|
|
Bank overdrafts |
( |
( |
( |
( |
|
Cash and cash equivalents in statement of cash flows |
(11,522,771) |
(11,482,406) |
(11,556,534) |
(11,620,855) |
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
|
Creditors |
|
Group |
Company |
||||
|
Note |
2020 |
(As restated) |
2020 |
(As restated) |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Trade creditors |
|
|
|
|
|
|
Social security and other taxes |
|
|
|
- |
|
|
Other creditors |
|
|
|
|
|
|
Accrued expenses |
|
|
|
|
|
|
Income tax liability |
141,472 |
- |
141,472 |
- |
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Other non-current financial liabilities |
|
|
|
|
|
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
|
Deferred tax and other provisions |
Group
|
Deferred tax |
Total |
|
|
At 1 November 2019 |
|
|
|
Increase (decrease) in existing provisions |
|
|
|
At 31 October 2020 |
|
|
Company
|
Deferred tax |
Total |
|
|
At 1 November 2019 |
|
|
|
At 31 October 2020 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2020 |
2019 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
2 |
|
2 |
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
|
Loans and borrowings |
|
Group |
Company |
|||
|
2020 |
2019 |
2020 |
2019 |
|
|
Current loans and borrowings |
||||
|
Bank borrowings |
|
|
|
|
|
Bank overdrafts |
|
|
|
|
|
|
|
|
|
|
Group
Other borrowings
Bank overdraft with a carrying amount of £9,006,533 (2019 - £7,769,702) is denominated in with a nominal interest rate of of between 3.5% and 5% .
A bank overdraft facility is provided by C Hoare & Co. This overdraft facility is secured by a personal guarantee from the Director, Mr Braka. A market rate of interest is charged daily.
Included in the loans and borrowings are the following amounts due after more than five years:
|
2020 |
2019 |
|
|
After more than five years by instalments |
|
|
Borrowings due after five years
Non-current liabilities includes a loan from the Jack Braka Trust as discussed in note 22. As the loan is at a rate of interest below market rate, its constitutes a financing transaction under FRS 102. The loan has been measured at present value of future payments discounted at 5% being the market rate available to the group on other commercial loans and borrowings.
Company
Other borrowings
Bank overdraft is denominated in £ with a nominal interest rate of of between 3.5% and 5%%. The carrying amount at year end is £9,006,533 (2019 - £7,769,702).
A bank overdraft facility is provided by C Hoare & Co. This overdraft facility is secured by a personal guarantee from the Director, Mr Braka. A market rate of interest is charged daily.
Included in the loans and borrowings are the following amounts due after more than five years:
|
2020 |
2019 |
|
|
After more than five years by instalments |
|
|
|
- |
- |
Borrowings due after five years
Non-current liabilities includes a loan from the Jack Braka Trust as discussed in note 22. As the loan is at a rate of interest below market rate, its constitutes a financing transaction under FRS 102. The loan has been measured at present value of future payments discounted at 5% being the market rate available to the group on other commercial loans and borrowings.
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
|
Dividends |
Final dividends paid
|
2020 |
2019 |
|||
|
Final dividend of £ |
|
- |
||
|
Related party transactions |
Group
|
Transactions with directors |
|
2020 |
At 1 November 2019 |
Advances to directors |
Repayments by director |
At 31 October 2020 |
|
Ivor Braka |
||||
|
Ivor Braka |
|
|
( |
( |
|
2019 |
At 1 November 2018 |
Advances to directors |
Repayments by director |
At 31 October 2019 |
|
Ivor Braka |
||||
|
Ivor Braka |
|
|
( |
|
Company
|
Transactions with directors |
|
2020 |
At 1 November 2019 |
Advances to directors |
Repayments by director |
At 31 October 2020 |
|
Ivor Braka |
||||
|
Interest bearing loan |
|
|
( |
( |
|
Joint venture purchase of stock |
|
- |
- |
|
|
1,447,610 |
3,352,492 |
(6,764,821) |
(1,964,719) |
|
|
2019 |
At 1 November 2018 |
Advances to directors |
Repayments by director |
At 31 October 2019 |
|
Ivor Braka |
||||
|
Interest bearing loan |
|
|
( |
|
|
Joint venture purchase of stock |
|
- |
- |
|
|
7,189,590 |
4,228,049 |
(9,970,029) |
1,447,610 |
|
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
Summary of transactions with other related parties
Included in trade debtors is an amount of £323,105 (2019 - £323,105) due from Kristen Mcmenamy, the wife of the director.
Loans from related parties
Terms of loans from related parties
|
2020 |
Other related parties |
|
At start of period |
|
|
Interest transactions |
|
|
At end of period |
|
|
2019 |
Other related parties |
|
At start of period |
|
|
Interest transactions |
|
|
At end of period |
|
|
Parent and ultimate parent undertaking |
The ultimate controlling party is
Ivor Braka Limited
Notes to the Financial Statements for the Year Ended 31 October 2020
|
Financial instruments |
Group
Categorisation of financial instruments
|
2020 |
2019 |
|
|
Financial assets that are debt instruments measured at amortised cost |
|
|
|
Financial liabilities measured at amortised cost |
|
|
Company
Categorisation of financial instruments
|
2020 |
2019 |
|
|
Financial assets that are debt instruments measured at amortised cost |
|
|
|
Financial assets that are equity instruments measured at cost loss impairment |
|
|
|
Financial liabilities measured at amortised cost |
24,799,973 |
22,374,313 |