Company registration number 02884681 (England and Wales)
WJ North Limited
Annual report and financial statements
For the year ended 31 January 2023
WJ North Limited
Company information
Directors
Mr G M Andrews
Mr W D Johnston
Mr M Webb
Company number
02884681
Registered office
Unit 7 Brock Way
Knutton
Newcastle Under Lyme
Staffordshire
ST5 6AZ
Auditor
DJH Mitten Clarke Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
WJ North Limited
Contents
Page
Strategic report
1 - 5
Directors' report
6 - 9
Independent auditor's report
10 - 12
Statement of comprehensive income
13
Statement of financial position
14
Statement of changes in equity
15
Notes to the financial statements
16 - 31
WJ North Limited
Strategic report
For the year ended 31 January 2023
- 1 -

The directors present the strategic report for the year ended 31 January 2023.

 

INTRODUCTION

WJ North Limited ("the company") was incorporated in 1994 and is a trading subsidiary of WJ (Group) Limited.

 

The company is able to provide temporary and permanent road markings (screed, extruded and raised rib line), road stud installation both temporary and permanent, reflective studs, road marking removal (which includes one of the largest fleets of specialist hydro-blasting removal and retexturing machines in the UK), road surface retexturing, road truck fabrication and refurbishment, applied media products, temporary safety cameras and road marking testing services.

In December 2020 THI Investments took a majority share in the WJ Group. THI’s involvement has enabled the company to continue to grow within the existing markets both organically and through acquisition. Additionally, it will support the company's transformation into a data driven business though IT and technology which will improve our operational efficiency. We continue to explore adjacent markets and our commitment to innovation has provided some growth opportunities, particularly in the Intelligent Transportation Systems sector.

The company is committed to creating safe and sustainable journeys for everyone and we have an ambitious target of becoming net zero by 2032.

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

 

Turnover in 2023 of £45,819,654 was an increase of 4% on the previous year which was due to an increase in activity of National Highways (formerly Highways England), a number of local authorities and in our off highways sector.

 

The gross profit margin has decreased from 29.0% in 2022 to 26.8% in 2023 which reflects a change in sales mix but also the impact of inflation on our raw material costs which, due to annual pricing negotiations with key customers, are passed on with a lag.

 

The company maintains it focus on working capital management with particular focus on inventory management and debt control which resulted in the £430,539 increase in working capital.

 

During the year the company has invested £9,819,112 in capital expenditure reflecting an ongoing strategy of maintaining the most modern and technologically advanced plant and machinery in our sector in order to ensure maximum self-delivery and unparalleled customer service. Investment decisions are subject to capital appraisal reviews in line with this vision and taking into account the company's resources and innovation strategy.

 

Total net assets at the end of the year increased from £16,836,722 to £19,680,662 reflecting the retained profit in the period.

WJ North Limited
Strategic report (continued)
For the year ended 31 January 2023
- 2 -
PRINCIPAL RISKS AND UNCERTAINTIES

Government Spending Decisions - the Company recognises that the majority of its income derives from government sources and therefore plays an active role, through a number of trade bodies and associations, in promoting and developing the safety, effectiveness and sustainability of its products and services in live with evolving DoT priorities.

 

Competition - the Company differentiates itself from the competition by continued efforts in R&D and Innovation and a strategy of delivering safer and more sustainable products and services. The Company and wider Group has made strategic investments to develop the UK largest nationwide network and has diversified into adjacent markets to enable it to stay ahead of the evolving competitor base.

 

Materials Supply – the Company has developed an internal supply chain for the bulk of the product it uses and has developed strong partnerships in areas where internal production is not possible. The Company works closely with its raw materials supply chains and utilises group buying power to ensure that availability of product is robust and that pricing is sustainable.

Fuel Prices – the Company is not immune to the impact of rising fuel prices but the effect is mitigated through the development and upgrading of a modern fleet of fuel efficient vehicle and an industry leading driver awareness training program and incentivisation scheme which leads to not only improved fuel consumption but also, as a consequence, a reduction in the Company’s carbon footprint.

 

COVID 19 – the Company adopted a very proactive approach to the management operations and the safety of employees which continues to be the number one priority of the Company. The Company have introduced a number of initiatives during and coming through the pandemic to ensure that their teams are in the best possible position to succeed in the future. Community is a core value for WJ and we fully support the Government our clients, communities and other stakeholders as we deliver our vision of ‘Safer sustainable journeys for all’.

 

FINANCIAL INSTRUMENT RISK

Credit Risk – the Company has a broad range of customers including both private companies and public sector bodies. The risk that the Company will suffer from significant levels of bad debt is managed by the diversified customer portfolio and the well established credit control procedures operated across the Company.

 

Cash Flow Risk – the Company is funded through a combination of Hire Purchase funding, a Group Term Loan and a Group Revolving Credit Facility. The Company also has access to committed investment funding to support significant capex or acquisitions.

 

Liquidity Risk – the Company is able to meet short and medium term obligations from operational cash generation and in addition have access to in excess of £20m of undrawn committed facilities.

 

KEY PERFORMANCE INDICATORS

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross profit margin and operating profit margin. The success of the company will be reflected in the balance sheet net assets and company liquidity.

 

                 2023     2022    

Turnover             £45,819,654     £44,066,766    

Gross profit margin         26.8%     29.0%    

Operating profit margin         6.9%     11.7%    

 

Explanation of the key performance indicators detailed above can be found in the review of business section of this report.

WJ North Limited
Strategic report (continued)
For the year ended 31 January 2023
- 3 -
NON-FINANCIAL KEY PERFORMANCE INDICATORS

The Company places health and safety as a paramount non-financial key performance indicator. Health and safety statistics are reported to the board on a monthly basis. Whilst all reported accidents are fully investigated the overriding indicator is the number of RIDDOR (“Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013”) reports. In the calendar year 2022, on a Group basis, there was 1 RIDDOR reports and in the calendar year 2023, on a Group basis, there was 1 RIDDOR report.

Section 172(1) Statement

The WJ Group Board strive to maintain and enhance WJ’s reputation for responsible business. To do so we actively engage with employees, suppliers, clients and communities. Endeavouring through our actions to make a positive economic and environmental contribution whilst delivering Social Value as we play our part in the future sustainable development of the nation. Set out briefly here under this S172 Statement, taking into account factors (a) to (f):

(a) the likely consequences of any decision in the long term;

The WJ Board understand the changing business environment and operate to a vision. ‘To Deliver Safe Sustainable Journeys for All’. Embedding four core values: Safety, Delivery, Innovation and Community. With this vision and these values we aim to maintain our position as the leading UK providers of road markings; safety surfacing and retexturing; road marking products and equipment; Intelligent Traffic Solutions, Off Highway and Maritime Surface Preparation, Safety Surfacing and Markings, for the long term. WJ continually deliver economic, environmental and social value to our clients, our staff, the communities we serve and all stakeholders.

At all Board Meetings the Board consider the present position of the WJ Group Companies and how that impacts our stakeholders. We record and maintain in our management systems a documented Group Stakeholders Needs and Expectations Analysis. Board Meetings further review current strategy and seek opportunities for safety, innovation, delivery and community improvement to continue our success for the benefit of The Group, its stakeholders and wider societal gains.

(b) the interests of the company’s employees;

WJ Board recognise that our people are fundamental to the success of our business; to successful service meeting the needs our clients; to furnishing good relationships with and within our communities and to the protection and improvement of our environment. To do this we must be a responsible employer; provide industry leading pay and conditions; where our people are safe, empowered and treated with Fairness, Inclusion and Respect; where everyone employed by The Group has an equal opportunity to progress their career.

WJ North Limited
Strategic report (continued)
For the year ended 31 January 2023
- 4 -

Safety is imperative for us and WJ are recognised as being industry leaders in the field. WJ have developed equipment that removes and reduces risks, strives to remove vulnerable road workers from the carriageway and introduce further innovative machinery with advanced safety features to protect our people and the travelling public alike. We recognise our interdependence and that safe behaviour is the key to preventing harm, encouraging this through our safety team, employing regular and interactive training; using psychologists and external experts; establishing the WJ Training Academy and participating in national and international work on improving safety and the working environment. The interests of our employees are measured through surveys, encouraged at regular meetings and Sharing Knowledge events. Our Safety Observation System is designed to capture HSEQ near misses; opportunities for improvement in equipment, systems and behaviours whilst also providing the opportunity to highlight good practice. Regular feedback is given to our people through our ‘You Said, We Did,’ system. We are presently engaged in a human factors training program with an external training provider on improving the empowerment of and engagement with our people in developing their management and communication skills from charge hands to directors. Information is shared with our people through Company Days, internal and external social media, tool box talks and training.

(c) the need to foster the company’s business relationships with suppliers, customers and others;

To deliver our Vision good relationships with our customers are essential. We work very closely with customers to understand their needs so that we can tailor our products and services to meet or exceed our delivery requirements. Facilitating this through regular customer performance updates and surveys to aid decision making and enhance customer focus. This will include formal collaborative agreements (assessed to ISO 44001) and client, customer and community performance groups. We participate in collaborative events where we listen, understand, share knowledge and contribute creatively to mutual strategic goals. Collaboration with our suppliers enables us to understand their needs and collectively deliver an exceptional service to our customers. As an organisation our operations are critical to delivering a safe sustainable highways network, we align with our supply chain to deliver the holistic service the end user, one that delivers safer sustainable journeys for all. Investment and financial security are fundamental to meeting the needs of our clientele. Working openly and closely with our financial stakeholders strengthens WJ and gives confidence to clients and suppliers alike that we are financially secure, pay promptly and enhance supply chain sustainability, innovation and capacity.

    (d) the impact of the company’s operations on the community and the environment;

The WJ Board understand our services have a significant positive impact on the community and our environment. Delivering Social and Environmental value are crucial to us, Community is a core value for WJ. We as an organisation play our part in delivering sustainable economic growth; tackling economic inequality; fighting climate change; aiding equal opportunity and supporting wellbeing. WJ plan to reach Net Zero by 2032, based on lowering embodied carbon in our materials to zero, switching out of internal combustion engines and into zero emission vehicles as technology allows and insetting carbon through the planting of a forest. Highways are key to our national economic and communication systems, the markings and safety systems WJ deliver make them safer, more efficient, sustainable and resilient. In carrying out our work, road users, communities and the environment are considered at all times to reduce the impact of our operations upon them whist creating new jobs, business opportunities and skills. WJ through creative thinking and innovative design of materials, plant and machinery strive to increase the lifecycle of our materials. With less interventions we serve our communities and environment through reduced carbon emissions and improved air quality. WJ have greatly reduced embodied carbon in materials by circa 80% independently verified to ISO 14067 and PAS 2050 through collaborative work with our supply chain and developing the use of biogenic componentry. This aligns WJ with our customers, communities and environments needs.

WJ North Limited
Strategic report (continued)
For the year ended 31 January 2023
- 5 -

WJ have an active community engagement program ‘Thinking Community’, understand, measure and monetise social value through our independently accredited Social Value Calculator. The Board understand that creating additional Social Value is critical to our clientele and the nation as a whole. This synergises with the ‘Community’ value’ of WJ, our people and our stakeholder communities to make a positive contribution to society.

(e) the desirability of the company maintaining a reputation for high standards of business conduct;

The Board know, understand and believe that there is an ever growing need for companies to provide solutions that are economically, environmentally and socially responsible. To this end the Board regularly reviews its policies and procedures and promotes ethical behaviour, actively encouraging equal opportunity, tackling inequality in opportunity and promoting support for disadvantaged groups. WJ is further engaged in promoting better understanding of the abhorrent practice of Modern Slavery. WJ are independently audited by Planet Mark on our carbon reduction targets, local social and economic value and BITC through the ‘Responsible Business Tracker’ on our response to the United Nations Sustainable Development Goals.

(f) the need to act fairly between members of the company.

As a company in a service industry working primarily for the public sector we understand that beyond increasing shareholder value we have a duty to all our stakeholders. It would be short sighted in the extreme for us as a Board not to consider the impacts of all the decisions that we make without considering our stakeholders and the wider environment. To that end we work with our employees, our investors, our customers, our clients, our industry through working groups, trade associations, professional institutes, NGOs, charities, Local Authorities, Government departments and sometimes competitors through the above to enable WJ to make good decisions that deliver added economic, environmental and social value.

On behalf of the board

Mr G M Andrews
Director
28 July 2023
WJ North Limited
Directors' report
For the year ended 31 January 2023
- 6 -

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

Principal activities

The principal activity of the company continued to be that of road markings contractors.

Results and dividends

The results for the year are set out on page 13.

No ordinary dividends were paid (2022 - £nil). The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr G M Andrews
Mr W D Johnston
Mr M Webb
Research and development

The company invests heavily in research and development to ensure that they have the most modern fleet available to promote efficiency whilst maintaining a strong health and safety record.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

WJ North Limited
Directors' report (continued)
For the year ended 31 January 2023
- 7 -
Energy and carbon report

At WJ our vision is to ‘Creating safe, sustainable journeys for everyone’, we achieve this by integrating sustainability into the operations of our company.

Organisational info/structure

 

WJ North Ltd is a trading entity made up of 3 smaller divisions: WJ North Ltd (Scotland), WJ North Ltd (Knutton), and WJ North Ltd (Elland).

 

Environmental indicators

 

We use our Environmental Management Systems (EMS) to manage and improve significant environmental impacts. This commitment requires us to maintain and continually improve our environmental management system in accordance with ISO 14001 for the operation of our services and legislation relevant to the SECR environmental impacts. Our carbon emissions monitoring system is audited as part of our EMS and is externally verified by Planet Mark according to the Greenhouse Gas (GHG) Protocol.

Reporting period

 

From 1 February 2022 to 31 January 2023, with a baseline year of 2017. Comparisons over following years can be seen below.

 

Reporting boundary

 

The reporting boundary includes all companies of WJ North Ltd. This includes 3 operational depots and 2 manufacturing plants.

2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
23,447,458
21,850,096
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
44.04
49.58
- Fuel consumed for owned transport
5,452.71
5,291.48
5,496.75
5,341.06
Scope 2 - indirect emissions
- Electricity purchased
64.64
76.60
Total gross emissions
5,561.39
5,417.66
Intensity ratio
Tonnes CO2e per £1m turnover
121.37
126.90
WJ North Limited
Directors' report (continued)
For the year ended 31 January 2023
- 8 -
Quantification and reporting methodology

WJ North Ltd operational carbon footprint includes Scope 1 and 2 emissions. It is measured according to methods set out by the GHG Protocol with the latest conversion factors from the Department for Business, Energy & Industrial Strategy (BEIS). Our monitoring system has also been externally verified by Planet Mark.

 

We have also begun work on measuring our Scope 3 using the environmentally-extended input-output (EEIO) method. We have successfully carried out the Lifecycle Assessment (LCA) of our thermoplastic road marking products, our largest source of Scope 3 emissions. This is externally verified by Lucideon to ISO14067 and PAS2050.

Our intensity ratio will be based on our Scope 1 and 2 emissions Tonnes CO2e/£million turnover. This is due to our on-going works to measure our significant Scope 3 emissions.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £1m turnover, the recommended ratio for the sector.

Measures taken to improve energy efficiency

Our largest environmental impact and source of emissions is our vehicle and plant fleet. We have invested in a new vehicle telematics system and launched a driver behaviour award scheme. These have combined to show a 12% increase in MPG and 7.75% reduction in emissions.

Our Scope 3 savings from product reformulation with a switch to biogenic binder systems has seen around 22,550 tCO2e saved emissions across the WJ Group as a whole.

Trends and improvements

Despite the increase in absolute emissions in 2023, there is a clear and significant reduction in emission intensity per turnover of 41.28%, from our baseline of 191.19 tCO2e/£m to 121.37 tCO2e/£m.

Future plans and goals

We have signed up to the Science-based Targets Initiative (SBTi) in 2022. We are designing our Net Zero Plan with an aim to be Net Zero for our Scopes 1 and 2 by 2032.

Trialling alternative fuels for our truck fleet.

As part of the Responsible Business Tracker by Business in the Community, we are also aligning our operations to the UN SDGs.

 

WJ North Limited
Directors' report (continued)
For the year ended 31 January 2023
- 9 -
Statement of directors' responsibilities

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:

 

 

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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr G M Andrews
Director
28 July 2023
WJ North Limited
Independent auditor's report
To the members of WJ North Limited
- 10 -
Opinion

We have audited the financial statements of WJ North Limited (the 'company') for the year ended 31 January 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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:

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

WJ North Limited
Independent auditor's report (continued)
To the members of WJ North Limited
- 11 -

Opinions on other matters prescribed by the Companies Act 2006

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

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

WJ North Limited
Independent auditor's report (continued)
To the members of WJ North Limited
- 12 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.

Gary Neil Chadwick FCCA
Senior Statutory Auditor
For and on behalf of DJH Mitten Clarke Audit Limited
31 July 2023
2023-07-31
Chartered Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
WJ North Limited
Statement of comprehensive income
For the year ended 31 January 2023
- 13 -
2023
2022
Notes
£
£
Turnover
3
45,819,654
44,066,766
Cost of sales
(33,538,473)
(31,291,531)
Gross profit
12,281,181
12,775,235
Administrative expenses
(9,133,380)
(7,890,649)
Other operating income
-
0
265,014
Operating profit
4
3,147,801
5,149,600
Interest receivable and similar income
8
242,758
155,796
Interest payable and similar expenses
9
(301,940)
(191,744)
Profit before taxation
3,088,619
5,113,652
Tax on profit
10
(244,679)
(888,018)
Profit for the financial year
2,843,940
4,225,634

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

WJ North Limited
Statement of financial position
As at 31 January 2023
31 January 2023
- 14 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
1,470
490
Tangible assets
12
16,833,760
10,101,126
16,835,230
10,101,616
Current assets
Stocks
13
2,462,192
2,309,082
Debtors falling due after more than one year
14
9,437,763
8,145,264
Debtors falling due within one year
14
7,257,718
5,681,308
Cash at bank and in hand
1,254,653
3,681,160
20,412,326
19,816,814
Creditors: amounts falling due within one year
15
(6,659,229)
(6,494,256)
Net current assets
13,753,097
13,322,558
Total assets less current liabilities
30,588,327
23,424,174
Creditors: amounts falling due after more than one year
16
(9,730,474)
(5,773,315)
Provisions for liabilities
Deferred tax liability
19
1,177,191
814,137
(1,177,191)
(814,137)
Net assets
19,680,662
16,836,722
Capital and reserves
Called up share capital
22
95
95
Capital redemption reserve
23
5
5
Profit and loss reserves
24
19,680,562
16,836,622
Total equity
19,680,662
16,836,722
The financial statements were approved by the board of directors and authorised for issue on 28 July 2023 and are signed on its behalf by:
Mr G M Andrews
Director
Company Registration No. 02884681
WJ North Limited
Statement of changes in equity
For the year ended 31 January 2023
- 15 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 February 2021
95
5
12,610,988
12,611,088
Year ended 31 January 2022:
Profit and total comprehensive income for the year
-
-
4,225,634
4,225,634
Balance at 31 January 2022
95
5
16,836,622
16,836,722
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
-
2,843,940
2,843,940
Balance at 31 January 2023
95
5
19,680,562
19,680,662
WJ North Limited
Notes to the financial statements
For the year ended 31 January 2023
- 16 -
1
Accounting policies
Company information

WJ North Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 7 Brock Way, Knutton, Newcastle Under Lyme, Staffordshire, ST5 6AZ.

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.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of WJ Group Holdings Limited. These consolidated financial statements are available from its registered office, Unit 7 Brock Way, Newcastle Under Lyme, Staffordshire, United Kingdom, ST5 6AZ.

Preparation of consolidated financial statements

 

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

WJ North Limited is a wholly owned subsidiary of WJ (Group) Limited and the results of WJ North Limited are included in the consolidated financial statements of WJ Group Holdings Limited which are available from Unit 7 Brock Way, Newcastle Under Lyme, Staffordshire, United Kingdom, ST5 6AZ.

 

WJ Group Holdings Limited is the smallest group for which consolidated accounts are prepared.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with other group entities where the relationship is one of being wholly owned.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

WJ North Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Software
20% per annum on cost
1.6
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:

Freehold land and buildings
2% on a straight line basis
Leasehold improvements
In accordance with the lease
Plant and equipment
25% on reducing balance and 20% on reducing balance
Fixtures and fittings
25% on reducing balance, 20% on reducing balance and 50% on reducing balance
Motor vehicles
25% on reducing balance and 35% on 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.

WJ North Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
1
Accounting policies
(Continued)
- 18 -
1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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).

Recoverable amount is the higher of fair value less costs to sell and value in use.

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
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.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

1.10
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.

 

Financial instruments are recognised in the company's statement of financial position 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

WJ North Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
1
Accounting policies
(Continued)
- 19 -
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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

WJ North Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
1
Accounting policies
(Continued)
- 20 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

WJ North Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
1
Accounting policies
(Continued)
- 21 -
1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.17

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

Critical judgements

 

In the directors' opinion there are no critical judgements that they have made in applying the company's accounting policies and that have had a significant effect on the amounts recognised in the financial statements.

 

Key sources of estimation uncertainty

 

The directors do not consider there to be any key estimates or assumptions used in preparing the financial statements.

 

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Rendering of services
45,819,654
44,066,766
2023
2022
£
£
Other revenue
Interest income
242,758
155,796
WJ North Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
- 22 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Research and development costs
44,108
44,566
Depreciation of tangible fixed assets
2,632,167
2,177,329
Profit on disposal of tangible fixed assets
(5,149)
(20,009)
Operating lease charges
159,626
222,438
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
26,430
25,000
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Production
188
179
Administration
69
63
Directors
-
3
Total
257
245

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
12,348,038
11,013,105
Social security costs
1,459,475
1,228,643
Pension costs
469,655
368,962
14,277,168
12,610,710
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
-
0
32,283
WJ North Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
- 23 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest receivable from group companies
235,944
155,796
Other interest income
6,814
-
0
Total income
242,758
155,796
9
Interest payable and similar expenses
2023
2022
£
£
Interest payable to group undertakings
235,963
100,090
Interest on finance leases and hire purchase contracts
65,977
91,654
301,940
191,744
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
119,246
Adjustments in respect of prior periods
(118,375)
-
0
Total current tax
(118,375)
119,246
Deferred tax
Origination and reversal of timing differences
363,054
768,772
Total tax charge
244,679
888,018
WJ North Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
10
Taxation
(Continued)
- 24 -

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:

2023
2022
£
£
Profit before taxation
3,088,619
5,113,652
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
586,838
971,594
Tax effect of expenses that are not deductible in determining taxable profit
45,998
21,073
Adjustments in respect of prior years
(118,375)
-
0
Effect of change in corporation tax rate
87,133
195,393
Group relief
-
0
(74,278)
Depreciation on assets not qualifying for tax allowances
18,508
9,238
Research and development tax credit
-
0
(54,756)
Super deduction claim
(381,406)
(180,246)
Deferred tax not recognised
5,983
-
0
Taxation charge for the year
244,679
888,018

Factors affecting future tax charges

The main corporation tax rate has been legislated to increase from 19% to 25% with effect from 1 April 2023, significantly increasing the tax payable on profits earned.

 

Given the imminent change to the main corporation tax rate, deferred tax has been provided for at 25% where appropriate.

11
Intangible fixed assets
Software
£
Cost
At 1 February 2022
490
Additions
980
At 31 January 2023
1,470
Amortisation and impairment
At 1 February 2022 and 31 January 2023
-
0
Carrying amount
At 31 January 2023
1,470
At 31 January 2022
490
WJ North Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
- 25 -
12
Tangible fixed assets
Freehold land and buildings
Leasehold improvements
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 February 2022
784,558
1,598,894
285,910
6,421,309
221,683
14,777,018
24,089,372
Additions
1,439,770
237,942
951,573
3,903,495
211,886
3,074,446
9,819,112
Disposals
-
0
-
0
-
0
(43,350)
(12,566)
(884,234)
(940,150)
Transfers
-
0
-
0
(285,910)
-
0
-
0
183,405
(102,505)
At 31 January 2023
2,224,328
1,836,836
951,573
10,281,454
421,003
17,150,635
32,865,829
Depreciation and impairment
At 1 February 2022
-
0
1,304,629
-
0
3,389,333
150,690
9,143,594
13,988,246
Depreciation charged in the year
-
0
97,410
-
0
648,443
28,967
1,857,347
2,632,167
Eliminated in respect of disposals
-
0
-
0
-
0
(42,933)
(10,937)
(534,474)
(588,344)
At 31 January 2023
-
0
1,402,039
-
0
3,994,843
168,720
10,466,467
16,032,069
Carrying amount
At 31 January 2023
2,224,328
434,797
951,573
6,286,611
252,283
6,684,168
16,833,760
At 31 January 2022
784,558
294,265
285,910
3,031,976
70,993
5,633,424
10,101,126
WJ North Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
12
Tangible fixed assets
(Continued)
- 26 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. These are secured on the assets in which they relate to.

2023
2022
£
£
Plant and equipment
341,320
302,828
Motor vehicles
1,554,053
2,641,761
1,895,373
2,944,589
13
Stocks
2023
2022
£
£
Raw materials and consumables
2,462,192
2,309,082

Stock comprises of £1,414,932 (2022: £1,184,522) in raw materials and £1,047,260 (2022:£1,124,560) in work in progress.

14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
4,001,800
3,753,703
Corporation tax recoverable
232,934
586,105
Amounts owed by group undertakings
802,368
338,299
Other debtors
1,237,399
79,604
Prepayments and accrued income
983,217
923,597
7,257,718
5,681,308
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
9,437,763
8,145,264
Total debtors
16,695,481
13,826,572

Amounts owed by group undertakings due after more than one year are due between 1 and 2 years. Interest is receivable at a rate of 2.5%. The amounts are unsecured.

WJ North Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
- 27 -
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
18
755,339
1,198,409
Trade creditors
2,099,793
1,793,115
Amounts owed to group undertakings
921,493
1,407,667
Taxation and social security
343,081
364,381
Deferred income
20
268,162
375,153
Other creditors
214,127
181,264
Accruals
2,057,234
1,174,267
6,659,229
6,494,256
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
18
291,974
1,047,315
Other borrowings
17
9,438,500
4,726,000
9,730,474
5,773,315

Amounts owed to group undertakings due after more than one year are due between 1 and 2 years. Interest is payable at a rate of 2.5%. The amounts are unsecured.

17
Loans and overdrafts
2023
2022
£
£
Loans from group undertakings
9,438,500
4,726,000
Payable after one year
9,438,500
4,726,000

Amounts owed to group undertakings due after more than one year are due between 1 and 2 years. Interest is payable at a rate of 2.5%. The amounts are unsecured.

WJ North Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
- 28 -
18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
755,339
1,198,409
In two to five years
291,974
1,047,315
1,047,313
2,245,724

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Obligations under finance lease and hire purchase contracts are secured on the assets acquired.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
1,948,418
814,137
Tax losses
(771,227)
-
1,177,191
814,137
2023
Movements in the year:
£
Liability at 1 February 2022
814,137
Charge to profit or loss
363,054
Liability at 31 January 2023
1,177,191
20
Deferred income
2023
2022
£
£
Other deferred income
268,162
375,153
WJ North Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
- 29 -
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
469,655
368,962

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.

Contributions totalling £66,147 (2022 : £56,934) were payable to the fund at the balance sheet date and are included in creditors.

22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
9,500
9,500
95
95

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

23
Capital redemption reserve

Capital redemption reserves represents the nominal value of shares following a company buyback of its own shares.

24
Profit and loss reserves

Profit and loss reserves represents the accumulated profits less accumulated losses and distributions up to the reporting date. This is a distributable reserve.

25
Financial commitments, guarantees and contingent liabilities

At the balance sheet date, the company had guaranteed borrowings of a parent company, all charges being managed by a security agent. At 31 January 2023 these borrowings amounted to £55,409,948 (2022 : £50,079,960). As at the date of approval of these financial statements, the directors do not anticipate that the guarantees will be called upon.

WJ North Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
- 30 -
26
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
151,501
179,500
Between two and five years
488,730
526,167
In over five years
59,000
149,000
699,231
854,667
27
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
956,548
-
28
Related party transactions
Transactions with related parties

During the prior year, the company made sales and purchase to/from entities with common directors/partners.

 

Purchases made from these entities totalled £nil (2022: £15,000). At the current and prior year end, no balances were owed to these entities.

 

During the year rent and fees were paid to a pension scheme in which some of the directors are beneficiaries, amounting to £118,000 (2022: £112,918). At the current and prior year end, no balances were owed to this entity.

 

Transactions with entities under common control

 

During the year, the company paid rent to entities under the control of some of the directors of the company of £70,800 (2022: £70,800). At the year end, the balance owing to this entity was £nil (2022: £1,800).

WJ North Limited
Notes to the financial statements (continued)
For the year ended 31 January 2023
- 31 -
29
Directors' transactions

Advances or credits have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mr W D Johnston - Chief Executive Officer
-
751
264,883
(263,964)
1,670
Mr M Webb - Group Operations Director
-
4,763
55,704
(44,093)
16,374
5,514
320,587
(308,057)
18,044
30
Ultimate controlling party

The immediate parent company is WJ (Group) Limited which owns 100% of the ordinary share capital. WJ (Group) Limited is incorporated in England and the registered office is Unit 7 Brock Way, Newcastle, Staffordshire, ST5 6AZ.

The ultimate controlling party is THI Holdings GmbH, a company registered in Germany. THI Holdings GmbH is controlled by the Hagenmeyer family.

The smallest group into which the entity is consolidated is WJ Group Holdings Limited. WJ Group Holdings Limited is incorporated in England. Copies of the group financial statements of WJ Group Holdings Limited are available from Unit 7 Brock Way, Newcastle, Staffordshire, United Kingdom, ST5 6AZ.

 

The largest group into which the entity is consolidated is THI Holdings GmbH, a company registered in Germany. Copies of the group financial statements of THI Holdings GmbH are available from THI Investments, Eberhardstraße 65, 70173 Stuttgart, Germany.

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