ACCOUNTS - Final Accounts preparation

Operating profit

The operating profit is stated after charging:

GP & J BAKER LIMITED - Company Information

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Registered number: 3761709

GP & J BAKER LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

GP & J BAKER LIMITED

COMPANY INFORMATION

Directors	C Kravet
	L Kravet
	E K Burke
	A Grafton


Company secretary	L Kravet


Registered number	3761709


Registered office	6 Stinsford Road
	Poole
	Dorset
	BH17 0SW


Independent auditors	Shaw Gibbs (Audit) Limited
	Wey Court West
	Union Road
	Farnham
	Surrey
	GU9 7PT

GP & J BAKER LIMITED

CONTENTS

	Page
Strategic report	1 - 2
Directors' report	3 - 4
Independent auditors' report	5 - 8
Statement of income and retained earnings	9
Statement of financial position	10
Statement of cash flows	11
Analysis of net debt	12
Notes to the financial statements	13 - 23

GP & J BAKER LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction

GP & J Baker is a designer and distributor of luxury furnishing fabric and wallpaper to the interior design trade.

Turnover in the financial year increased by 0.6% and in 2023 the overall gross margin increased by 1.9% as a result of focused cost management in both direct and indirect costs resulting in a profit before tax of £1,251k (2022 £1,233k)

Business review

The political and economic climate continued to have an impact on our global business which remained challenging through 2023 and it was a mixed year for business in the international markets with continued strength in the US whilst seeing a slowdown in several of our European markets. We also saw the continuation of increased energy costs, pay inflation and higher interest rates impacting suppliers and other general costs. We have however managed the economic risk in a very focused manner concentrating on our core business activities and successful markets for improvements.
2023 did also have several highlights including new collection launches from both our Threads and Mulberry brands as well as celebrating the 200th anniversary of our Lee Jofa brand and several new exciting introductions from Kravet our parent company and following one of our key strategies for product investment we also saw good growth from our wallcovering collections. The expansion and development of the luxury Donghia brand has continued and we look forward to this adding additional sales moving forwards.
We launched our first GP & J Baker rug collection in 2023 which has received a positive response from our customers and we will continue to invest in this area of growth in 2024. We entered into a new and exciting licence partnership with Pooky Lighting which launched in October to raise the profile of our Baker brands to a broader audience and bring revenue into the business.

We feel confident that all of these new additions will contribute to strengthening our brands and growing sales with our existing customer base, whilst expanding our outreach to new customers and opportunities moving forwards.

Principal risks and uncertainties

The continuing economic pressures globally and market issues with the geopolitical uncertainties require flexible and focussed management to maintain sales and cost controls. Also a key external business risk can be the downturn in the high-end housing market affecting demand. This is managed through a more project focussed approach within each market region.
Rising freight and raw material costs continue to be a factor which we are managing closely and applying flexibility wherever possible to our supply sources.

The business will continue to maintain a tight control on its cost base through the year to ensure that any of the risks highlighted are managed as effectively as possible.
The company manages its exposure to credit risks by regularly reviewing customers’ accounts and credit limits and only granting terms to those who are creditworthy.

Page 1

GP & J BAKER LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

Financial key performance indicators

The main key performance indicators of the business are:


	2023	2022

Sales growth/(reduction)	0.6%	(2.4%)
Current ratio	3.48	3.51
Quick ratio	2.47	2.66
Stock turnover	2.99	2.82
Debtor days	20	30
Staff numbers	67	70

This report was approved by the board and signed on its behalf.

A Grafton

Director

Date: 11 April 2024

Page 2

GP & J BAKER LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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 to 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.

Principal activity

The principal activity of the company during the year was the design, distribution, marketing and selling of furnishing fabrics and wall coverings to the UK and international export markets.

Results and dividends

The profit for the year, after taxation, amounted to £860,858 (2022 - £962,220).

The directors have not recommended a dividend.

Directors

The directors who served during the year were:

C Kravet

L Kravet

E K Burke

A Grafton

Page 3

GP & J BAKER LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

Future developments

The company has continued to maintain a solid position while managing the changing inflationary environment. We look forward to developing new opportunities in both the domestic and export markets in the coming months including growing our finished product offering, including wallcovering, furniture and accessories and continuing to offer excellent core products and high customer service standards.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditors, Shaw Gibbs (Audit) Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 11 April 2024 and signed on its behalf.

A Grafton

Director

Page 4

GP & J BAKER LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GP & J BAKER LIMITED

Opinion

We have audited the financial statements of GP & J Baker Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of income and retained earnings, the Statement of financial position, the Statement of cash flows and the related notes, 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 Company's affairs as at 31 December 2023 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.

Page 5

GP & J BAKER LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GP & J BAKER LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the 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.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement set out on page 3, 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.

Page 6

GP & J BAKER LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GP & J BAKER LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation.
Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and reviewing legal invoices. 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 the directors 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 Auditors' 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 Auditors' 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.

Page 7

GP & J BAKER LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GP & J BAKER LIMITED (CONTINUED)

Mark Dickinson FCA (Senior statutory auditor)

for and on behalf of

Shaw Gibbs (Audit) Limited

Wey Court West

Union Road

Farnham

Surrey

GU9 7PT

17 April 2024

Page 8

GP & J BAKER LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 DECEMBER 2023

	2023	2022
	£	£


Turnover	18,150,850	18,047,108
Cost of sales	(9,470,870)	(9,791,551)
Gross profit	8,679,980	8,255,557
Personnel costs	(3,778,468)	(3,852,810)
Administrative expenses	(3,650,116)	(3,169,428)
Operating profit	1,251,396	1,233,319
Interest receivable and similar income	343	3
Profit before tax	1,251,739	1,233,322
Tax on profit	(390,881)	(271,102)
Profit after tax	860,858	962,220



Retained earnings at the beginning of the year	6,539,802	5,577,582
Profit for the year	860,858	962,220
Retained earnings at the end of the year	7,400,660	6,539,802

The notes on pages 13 to 23 form part of these financial statements.

Page 9

GP & J BAKER LIMITED

REGISTERED NUMBER: 3761709

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023

		2023		2022
Note		£		£

Fixed assets
Tangible assets	10		109,740		126,037
Current assets
Stocks		3,168,919		2,960,912
Debtors	11	9,185,456		8,242,211
Cash at bank and in hand		856,159		857,129
		13,210,534		12,060,252
Creditors: amounts falling due within one year	12	(3,919,614)		(3,646,487)
Net current assets			9,290,920		8,413,765
Total assets less current liabilities			9,400,660		8,539,802

Net assets			9,400,660		8,539,802

Capital and reserves
Called up share capital	14	2,000,000	2,000,000
Profit and loss account		7,400,660	6,539,802
		9,400,660	8,539,802

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 April 2024.

A Grafton

Director

The notes on pages 13 to 23 form part of these financial statements.

Page 10

GP & J BAKER LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2023

			2023	2022
			£	£

Cash flows from operating activities
Profit for the financial year	860,858	962,220
Adjustments for:
Depreciation of tangible assets	34,335	38,348
Interest received	(343)	(3)
Taxation charge	390,881	271,102
(Increase)/decrease in stocks	(208,007)	67,415
Decrease in debtors	198,543	155,350
(Increase) in amounts owed by groups	(1,140,702)	(1,157,300)
Increase/(decrease) in creditors	295,112	(407,292)
(Decrease)/increase in amounts owed to groups	(28,832)	58,585
Corporation tax (paid)	(385,120)	(188,530)
Net cash generated from operating activities	16,725	(200,105)

Cash flows from investing activities
Purchase of tangible fixed assets	(18,038)	(53,687)
Interest received	343	3
Net cash from investing activities	(17,695)	(53,684)

Net (decrease) in cash and cash equivalents	(970)	(253,789)
Cash and cash equivalents at beginning of year	857,129	1,110,918
Cash and cash equivalents at the end of year	856,159	857,129

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	856,159	857,129
	856,159	857,129

The notes on pages 13 to 23 form part of these financial statements.

Page 11

GP & J BAKER LIMITED

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2023


At 1 January 2023	Cash flows	At 31 December 2023
£	£	£

Cash at bank and in hand	857,129	(970)	856,159
	857,129	(970)	856,159

The notes on pages 13 to 23 form part of these financial statements.

Page 12

GP & J BAKER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

1.	General information

GP & J Baker is a limited liability company incorporated in England and Wales. The registered office is disclosed in the Company information page, which is the same as its main place of business.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 13

GP & J BAKER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

2.6

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 14

GP & J BAKER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

2.7

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance method.

Depreciation is provided on the following basis:

Leasehold property	-	20%	straight line
Plant and machinery	-	20%	straight line
Motor vehicles	-	33%	straight line
Fixtures and fittings	-	25%	reducing balance
Computer equipment	-	33%	straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.8

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase using a standard costing method, which is revalued to approximate the value under the first in first out basis.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.9

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

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GP & J BAKER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

2.12

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values.
The company values its stock using a standard cost model. This value of stock under this basis is considered not materially different from a valuation under the first in first out basis. All fabric and wallpaper stocks are reviewed on an annual basis and if required an appropriate provision is applied.

Turnover

Analysis of turnover by country of destination:

					2023	2022
					£	£

United Kingdom	8,016,140	7,698,784
Rest of Europe	3,524,934	3,963,531
Rest of the world	6,609,776	6,384,793
	18,150,850	18,047,108

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GP & J BAKER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

	Exchange differences	336,334	(119,456)
	Depreciation of tangible fixed assets	38,263	38,349

Fees payable to the Company's auditors for the audit of the Company's financial statements

37,800

36,000

Wages and salaries	3,196,695	3,265,356
Social security costs	364,111	369,027
Cost of defined contribution scheme	201,369	202,133
	3,762,175	3,836,516

The average monthly number of employees, including the directors, during the year was as follows:

	2023	2022
	No.	No.

Sales and Marketing	24	23
Purchasing and distribution	25	27
Administration	4	5
Management	8	8
Design	5	6
Director	1	1

	67	70

Page 17

GP & J BAKER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

8.	Directors' remuneration
		2023	2022
		£	£

Directors' emoluments	574,306	512,191
	574,306	512,191

	The highest paid director received remuneration of £561,000 (2022 - £498,885).
	The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2022 - £NIL).

Corporation tax
Current tax on profits for the year	391,967	268,065
Adjustments in respect of previous periods	-	(1,451)

Total current tax	391,967	266,614

Deferred tax
Origination and reversal of timing differences	(1,086)	4,488
Total deferred tax	(1,086)	4,488


	Taxation on profit on ordinary activities	390,881	271,102

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GP & J BAKER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

9.Taxation (continued)

Profit on ordinary activities before tax

1,251,739

1,233,322

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)	302,264	234,331
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	4,894	2,402
Capital allowances for year in excess of depreciation	1,382	(3,741)
Other timing differences leading to an increase (decrease) in taxation	(1,086)	4,488
Changes in provisions leading to an increase (decrease) in the tax charge	171	(144)
Other differences leading to an increase (decrease) in the tax charge	(80)	1,007
Non trade loan relationships	83,131	33,952
Prior year tax	-	(1,451)
Leasing deductions	205	258
Total tax charge for the year	390,881	271,102

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 19

GP & J BAKER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

10.	Tangible fixed assets

	Short-term leasehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2023	148,106	773,107	14,495	683,945	1,619,653
Additions	-	4,500	-	13,538	18,038
Disposals	-	-	-	(3,928)	(3,928)
At 31 December 2023	148,106	777,607	14,495	693,555	1,633,763
Depreciation
At 1 January 2023	106,463	764,907	14,495	607,751	1,493,616
Charge for the year on owned assets	10,950	1,990	-	21,395	34,335
Disposals	-	-	-	(3,928)	(3,928)
At 31 December 2023	117,413	766,897	14,495	625,218	1,524,023
Net book value
At 31 December 2023	30,693	10,710	-	68,337	109,740
At 31 December 2022	41,644	8,199	-	76,194	126,037

11.

Debtors

					2023	2022
					£	£


Trade debtors	992,661	1,135,441
Amounts owed by group undertakings	7,675,686	6,534,984
Other debtors	146,298	32,747
Prepayments and accrued income	369,407	538,721
Deferred taxation	1,404	318
	9,185,456	8,242,211

Page 20

GP & J BAKER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

12.	Creditors: Amounts falling due within one year
		2023	2022
		£	£

Trade creditors	2,392,958	2,160,089
Amounts owed to group undertakings	547,053	575,885
Corporation tax	189,713	182,866
Other taxation and social security	135,732	129,794
Other creditors	18,913	18,603
Accruals and deferred income	635,245	579,250
	3,919,614	3,646,487

13.	Deferred taxation

		2023
		£

	At beginning of year	318
	Charged to profit or loss	1,086
	At end of year	1,404

The deferred tax asset is made up as follows:
	2023	2022
	£	£

Accelerated capital allowances	(3,030)	(3,935)
Short term timing differences	4,434	4,253
	1,404	318

14.	Share capital
		2023	2022
		£	£

Allotted, called up and fully paid

2,000,000 (2022 - 2,000,000) Ordinary shares of £1.00 each	2,000,000	2,000,000

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GP & J BAKER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

15.	Contingent liabilities

The company has given a £3m guarantee to the National Westminster Bank for the mortgage of Teatime
LLC, a fellow Kravet Inc. subsidiary. The current mortgage balance is £2,310,223 (2022 £2,433,682).

16.	Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held
separately from those of the company in an independently administered fund. The pension charge
represents contributions payable by the company to the fund and amounted to £201,100 (2022:
£202,133). At the balance sheet date there were unpaid contributions of £18,397 (2022: £18,087).


Not later than 1 year	687,420	687,420
Later than 1 year and not later than 5 years	448,840	276,000
	1,136,260	963,420

During the year lease payments of £793,302 (2022: £793,302) for rent were recognised as an expense.

					2023	2022
					£	£


Not later than 1 year	35,632	35,632
Later than 1 year and not later than 5 years	41,526	56,726
	77,158	92,358

During the year lease payments of £52,227 (2022: £52,227) for vehicles and office equipment were recognised as an expense.

Page 22

GP & J BAKER LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

18.

Related party transactions

The company's immediate parent undertaking is Kravet Inc. In the directors' opinion the company is
controlled by the Kravet family, the shareholders of the parent undertaking.
At the balance sheet date the amount owed by Kravet USA was £6,073,527 (2022: £4,728,240).
During the year the company had the following dealings with Kravet USA in its normal course of
business:
- Made sales of £4,364,759 (2022: £4,164,778)
- Made purchases of £1,287,017 (2022: £1,657,796)
- Recharged overhead costs of £1,542,902 (2022: £1,335,815)
During the year the company also had commissions payable, in the normal course of business, to
Brunschwig & Fils Centrale SARL, a company owned by Kravet USA, of £187,688 (2022: £163,395).
At the balance sheet date the company owed Lee Jofa Limited £6,443 (2022 - £6,443). Lee Jofa Limited is related due to its relationship with Kravet Inc.
At the balance sheet date the company owed Teatime Realty LLC £540,610 (2022 - £569,442). During the year the company paid rent of £325,000 (2022 - £325,000) to Teatime Realty LLC in the normal course of business. Teatime Realty LLC is related due to its relationship with Kravet Inc.
At the balance sheet date the amount owed by Kravet Fabrics Canada Company was £1,578,370 (2022 - £1,754,488). During the year the company made sales to Kravet Fabrics Canada Company, in the normal course of business, of £124,619 (2022 - £139,021). Kravet Fabrics Canada Company is related due to its relationship with Kravet Inc.
At the balance sheet date the amount owed by Kravet Mexico Inc. was £1,416 (2022 - £28,690). During the year the company made sales to Kravet Mexico Inc, in the normal course of business, of £6,549 (2022 - £10,700). Kravet Mexico Inc is related due to its relationship with Kravet Inc.
At the balance sheet date the amount owed by Cascelta Company LLC was £22,375 (2022 – £23,568). During the year the company recharged costs to Cascelta Company LLC, that were paid on their behalf,of £Nil (2022 - £2,424). Cascelta Company LLC is related due to its relationship with Kravet Inc.

19.	Controlling party

The company's immediate parent undertaking is Kravet Inc. GP & J Baker Limited accounts are consolidated within the Kravet Inc. group accounts.
In the directors' opinion, the company is controlled by the Kravet family, the shareholders of the parent undertaking.

Page 23