Company Registration No. 00723594 (England and Wales)
Alec Jarrett Limited
Annual report and financial statements
for the period ended 3 February 2023
Alec Jarrett Limited
Company information
Directors
Robert C Jarrett
Stuart H Jarrett
Secretary
Stuart H Jarrett
Company number
00723594
Registered office
High Street
Oldland Common
Bristol
BS30 9TN
Independent auditor
Saffery LLP
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Alec Jarrett Limited
Contents
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 27
Alec Jarrett Limited
Strategic report
For the period ended 3 February 2023
Page 1

The directors present the strategic report and financial statements for the period ended 3 February 2023.

 

The directors, in preparing this strategic report, have complied with s414C of the Companies Act 2006.

Fair review of business

The company and its directors continually review working practices and invest in appropriate technologies to ensure that there is a year on year increase in net assets (2023: £10,499,055; 2022: £10,256,177). This measure is considered by the directors to be the main financial KPI.

Review of developments and future prospects

The company intends to continue and develop its operations in accordance with its medium term plans.

Principal risks and uncertainties

Financial risk

The treasury function is managed centrally to support the company’s operating activities. Its primary role is to ensure that adequate resources are available to meet the funding requirements on a day to day basis and that financial risk arising from underlying operations is effectively identified and managed. This is achieved through budgetary and financial reporting procedures.

Credit risk

The directors assess the company’s exposure to credit risk by considering the credit rating of any new client and by monitoring the accumulated trading balances with existing clients.

Foreign exchange risk

The company’s exposure to foreign exchange risk is eliminated by the placement of fixed forward currency contracts immediately on despatch and invoice of exports.

On behalf of the board

Stuart H Jarrett
Director
16 October 2023
Alec Jarrett Limited
Directors' report
For the period ended 3 February 2023
Page 2

The directors present their annual report and financial statements for the period ended 3 February 2023.

Principal activities

The principal activity of the company continued to be the operation of an abattoir and subsequent meat processing.

Results and dividends

The results for the period are set out on page 9.

Final dividends in the period amounted to £800,000. Dividends declared in the period ended 28 January 2022 amounted to £480,000.

Directors

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

Robert C Jarrett
Stuart H Jarrett
Fixed assets

In the opinion of the directors, the market value of the company’s freehold land and buildings is in excess of the net book value.

Auditor

Saffery LLP have expressed their willingness to continue in office.

Matters covered in the 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. It has done so in respect of business review, principal risk and uncertainties and key performance indicators.

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.

Alec Jarrett Limited
Directors' report (continued)
For the period ended 3 February 2023
Page 3
On behalf of the board
Stuart H Jarrett
Director
16 October 2023
Alec Jarrett Limited
Directors' responsibilities statement
For the period ended 3 February 2023
Page 4

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) including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102).

 

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.

Alec Jarrett Limited
Independent auditor's report
To the members of Alec Jarrett Limited
Page 5
Opinion

We have audited the financial statements of Alec Jarrett Limited (the 'company') for the period ended 3 February 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows 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.

Alec Jarrett Limited
Independent auditor's report (continued)
To the members of Alec Jarrett Limited
Page 6

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.

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.

Alec Jarrett Limited
Independent auditor's report (continued)
To the members of Alec Jarrett Limited
Page 7
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

 

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.

 

Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.

 

Audit response to risks identified

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

Alec Jarrett Limited
Independent auditor's report (continued)
To the members of Alec Jarrett Limited
Page 8

During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

 

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. Also, 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.

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. Also, 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.

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.

Neil Davies (Senior Statutory Auditor)
For and on behalf of Saffery LLP
19 October 2023
Chartered Accountants
Statutory Auditors
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Alec Jarrett Limited
Statement of comprehensive income
For the period ended 3 February 2023
Page 9
Period
Period
ended
ended
03 February
28 January
2023
2022
Notes
£
£
Turnover
3
69,930,027
52,054,474
Cost of sales
(62,486,954)
(46,478,176)
Gross profit
7,443,073
5,576,298
Distribution costs
(2,321,825)
(1,693,234)
Administrative expenses
(4,249,578)
(2,481,583)
Other operating income
327,905
109,580
Operating profit
4
1,199,575
1,511,061
Interest receivable and similar income
7
854
993
Profit before taxation
1,200,429
1,512,054
Tax on profit
8
(157,551)
(404,944)
Profit for the financial period
1,042,878
1,107,110

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

Alec Jarrett Limited
Statement of financial position
As at 3 February 2023
Page 10
03 February 2023
28 January 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
3,373,991
2,811,923
Investment property
11
617,845
617,845
3,991,836
3,429,768
Current assets
Stocks
12
2,332,806
1,733,376
Debtors
13
7,605,969
6,103,766
Cash at bank and in hand
3,524,333
3,812,278
13,463,108
11,649,420
Creditors: amounts falling due within one year
14
(6,499,504)
(4,350,410)
Net current assets
6,963,604
7,299,010
Total assets less current liabilities
10,955,440
10,728,778
Provisions for liabilities
Deferred tax liability
15
456,385
472,601
(456,385)
(472,601)
Net assets
10,499,055
10,256,177
Capital and reserves
Called up share capital
17
20,000
20,000
Capital redemption reserve
32,891
32,891
Profit and loss reserves
10,446,164
10,203,286
Total equity
10,499,055
10,256,177
The financial statements were approved by the board of directors and authorised for issue on 16 October 2023 and are signed on its behalf by:
Robert C Jarrett
Director
Company Registration No. 00723594
Alec Jarrett Limited
Statement of changes in equity
For the period ended 3 February 2023
Page 11
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 30 January 2021
20,000
32,891
9,576,176
9,629,067
Period ended 28 January 2022:
Profit and total comprehensive income for the period
-
-
1,107,110
1,107,110
Dividends
9
-
-
(480,000)
(480,000)
Balance at 28 January 2022
20,000
32,891
10,203,286
10,256,177
Period ended 3 February 2023:
Profit and total comprehensive income for the period
-
-
1,042,878
1,042,878
Dividends
9
-
-
(800,000)
(800,000)
Balance at 3 February 2023
20,000
32,891
10,446,164
10,499,055
Alec Jarrett Limited
Statement of cash flows
For the period ended 3 February 2023
Page 12
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
1,364,501
453,604
Income taxes paid
(231,948)
(94,940)
Net cash inflow from operating activities
1,132,553
358,664
Investing activities
Purchase of tangible fixed assets
(982,274)
(659,409)
Proceeds from disposal of tangible fixed assets
40,922
48,250
Interest received
854
993
Net cash used in investing activities
(940,498)
(610,166)
Financing activities
Dividends paid
(480,000)
(250,000)
Net cash used in financing activities
(480,000)
(250,000)
Net decrease in cash and cash equivalents
(287,945)
(501,502)
Cash and cash equivalents at beginning of period
3,812,278
4,313,780
Cash and cash equivalents at end of period
3,524,333
3,812,278
Alec Jarrett Limited
Notes to the financial statements
For the period ended 3 February 2023
Page 13
1
Accounting policies
Company information

Alec Jarrett Limited is a private company limited by shares incorporated in England and Wales. The registered office is High Street, Oldland Common, Bristol, BS30 9TN.

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 on a 52 week period basis and are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods 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.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of turnover 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.

Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 3 February 2023
1
Accounting policies (continued)
Page 14
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
4% straight line
Plant and equipment
10 - 20% reducing balance
Fixtures and fittings
20% reducing balance
Motor vehicles
25% reducing balance
Assets under construction
Not depreciated

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 3 February 2023
1
Accounting policies (continued)
Page 15

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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price in the normal course of business less all costs to be incurred in marketing, selling and distribution to completion of sale. Finished goods and goods for resale include all direct materials and, where applicable, direct labour costs and related production 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.

Biological assets are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs comprise of the purchase cost and any additional costs incurred through transportation.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's 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, 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.

Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 3 February 2023
1
Accounting policies (continued)
Page 16
Other financial assets

Other financial assets are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss.

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.

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. Accounts payable are classified as 'creditors: amounts falling due within one year' if payment is due within one year or less. If not, they are presented as 'creditors: amounts falling due after more than one year'. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 3 February 2023
1
Accounting policies (continued)
Page 17
Other financial liabilities

Other financial liabilities, including debt instruments that do not meet the definition of a basic financial instrument, are measured at fair value through profit or loss.

 

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate.

Derecognition of financial liabilities

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

1.10
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.

Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 3 February 2023
1
Accounting policies (continued)
Page 18
1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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

1.12
Retirement benefits

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

1.13
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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.

1.14
Foreign exchange

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

2
Critical accounting 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

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 3 February 2023
2
Critical accounting judgements and key sources of estimation uncertainty (continued)
Page 19
Fair value of investment properties

The fair value of investment properties has been considered by the directors using professional valuations of the properties and their knowledge of the local property market. The market value of the properties is reviewed at least annually at each year end.

Valuation of stock

The value of various categories of stock have been considered by the directors using their knowledge of the local market. The value of these stock categories are based on the selling price less the estimated gross profit margin. The selling prices are reviewed and updated weekly.

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Turnover
69,916,759
52,044,627
Other income
13,268
9,847
69,930,027
52,054,474
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
58,323,265
48,041,805
Europe
11,606,762
4,012,669
69,930,027
52,054,474
4
Operating profit
2023
2022
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange gains
(4,895)
(2,230)
Government grants
(12,269)
(45,180)
Fees payable to the company's auditor for the audit of the company's financial statements
28,000
25,000
Fees payable to the company's auditors for non audit fees
5,100
4,800
Depreciation of owned tangible fixed assets
381,226
322,415
Profit on disposal of tangible fixed assets
(1,942)
(25,247)
Operating lease charges
64,928
99,169
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 3 February 2023
Page 20
5
Employees

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

2023
2022
Number
Number
Office, management and sales
15
13
Production and maintenance
59
53
Total
74
66

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
7,879,405
5,804,760
Social security costs
288,891
151,463
Pension costs
28,373
24,796
8,196,669
5,981,019

The wages and salaries figures above include subcontracted labour, upon which no social security contributions are paid.

6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
996,099
342,400
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
Remuneration for qualifying services
655,607
255,240
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 3 February 2023
Page 21
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
854
993
2023
2022
£
£

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
854
993
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
173,767
231,948
Deferred tax
Origination and reversal of timing differences
(16,216)
172,996
Total tax charge
157,551
404,944
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 3 February 2023
8
Taxation (continued)
Page 22

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,200,429
1,512,054
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
228,082
287,290
Tax effect of expenses that are not deductible in determining taxable profit
6,561
1,407
Depreciation on assets not qualifying for tax allowances
(31,387)
2,823
Effect of change in deferred tax rate
(3,893)
113,424
Adjustments to bought forwards values
(41,812)
-
0
Tax expense for the period
157,551
404,944
9
Dividends
2023
2022
£
£
Final paid
800,000
480,000
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 3 February 2023
Page 23
10
Tangible fixed assets
Freehold buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 29 January 2022
1,920,481
346,098
5,435,688
519,431
389,370
8,611,068
Additions
90,957
387,244
431,926
44,147
28,000
982,274
Disposals
-
0
-
0
(60,482)
(1,404)
-
0
(61,886)
Transfers
190,020
(733,342)
543,322
-
0
-
0
-
0
At 3 February 2023
2,201,458
-
0
6,350,454
562,174
417,370
9,531,456
Depreciation and impairment
At 29 January 2022
875,367
-
0
4,197,364
462,974
263,440
5,799,145
Depreciation charged in the period
60,335
-
0
266,798
17,243
36,850
381,226
Eliminated in respect of disposals
-
0
-
0
(21,893)
(1,013)
-
0
(22,906)
At 3 February 2023
935,702
-
0
4,442,269
479,204
300,290
6,157,465
Carrying amount
At 3 February 2023
1,265,756
-
0
1,908,185
82,970
117,080
3,373,991
At 28 January 2022
1,045,114
346,098
1,238,324
56,457
125,930
2,811,923

Included in freehold buildings is land with a cost of £37,069 (2022: £37,069) that is not depreciated.

11
Investment property
2023
£
Fair value
At 29 January 2022 and 3 February 2023
617,845

Investment property comprises a building which is held in accordance with FRS 102 at its fair value - the directors are of the opinion that its carrying value closely approximates to its fair value.

Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 3 February 2023
11
Investment property (continued)
Page 24
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2023
2022
£
£
Cost
427,730
427,730
Accumulated depreciation
-
-
Carrying amount
427,730
427,730
12
Stocks
2023
2022
£
£
Raw materials and consumables
535,513
430,701
Finished goods and goods for resale
1,797,293
1,302,675
2,332,806
1,733,376
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
6,507,915
5,066,292
Other debtors
542,772
529,728
Prepayments and accrued income
555,282
507,746
7,605,969
6,103,766
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 3 February 2023
Page 25
14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,287,903
847,439
Corporation tax
173,767
231,948
Other taxation and social security
106,488
164,755
Dividends payable
800,000
480,000
Other creditors
1,428,037
1,488,068
Accruals and deferred income
2,703,309
1,138,200
6,499,504
4,350,410

There are 2 assets held at cost within freehold property as security over the bank account for Alec Jarrett Limited.

15
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
408,856
425,072
Investment property
47,529
47,529
456,385
472,601
There were no deferred tax movements in the period.

It is not possible to quantify the expected reversal of deferred tax liabilities in the period to 3 February 2023 due to the unknown timing of disposals in respect of assets.

 

Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 3 February 2023
Page 26
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
28,373
24,796

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.

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
20,000
20,000
20,000
20,000

Ordinary shares has full voting rights.

18
Financial commitments, guarantees and contingent liabilities

The company had no contingent liabilities at 03 February 2023 or at 28 January 2022.

The company is committed to fixed forward currency contracts totalling £746,279 (2022: £439,944) at the year end. The fair value of these contracts is an asset of £9,408 (2022: £975).

19
Operating lease commitments
Lessee

The operating lease payments represent contract hire agreements for assets. 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
54,996
54,996
Between two and five years
80,026
135,927
135,022
190,923
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 3 February 2023
Page 27
20
Related party transactions

During the period the company recognised management fee income of £12,000 (2022: £12,000) and was charged £7,800 (2022: £7,800) in respect of sales from Alec Jarrett Land Limited. At 3 February 2023 a total of £99,747 (2022: £94,696) was owed by Alec Jarrett Land Limited to the company.

 

During the period £83,779 (2022: £45,769) of cattle purchases, £3,880 of other animal purchases and £17,922 assets were sold to an immediate family member of the directors. As at 3 February 2023 the company owed £161,457 (2022: £Nil) to immediate family members of the directors.

 

There were £8,691 (2022: £5,940) of purchases made from a director during the period and as at 3 February 2023 the company owed £2,501,902 (2022: £1,755,843) to the directors. Amounts owed to the directors are interest free and repayable on demand.

21
Ultimate controlling party

Alec Jarrett Limited is controlled jointly by Robert C Jarrett and Stuart H Jarrett who together hold 100% of the allotted share capital of the company.

22
Analysis of changes in net funds
29 January 2022
Cash flows
3 February 2023
£
£
£
Cash at bank and in hand
3,812,278
(287,945)
3,524,333
23
Cash generated from operations
2023
2022
£
£
Profit for the period after tax
1,042,878
1,107,110
Adjustments for:
Taxation charged
157,551
404,944
Investment income
(854)
(993)
Gain on disposal of tangible fixed assets
(1,942)
(25,247)
Depreciation and impairment of tangible fixed assets
381,226
322,415
Movements in working capital:
(Increase) in stocks
(599,430)
(149,925)
(Increase) in debtors
(1,502,203)
(1,798,254)
Increase in creditors
1,887,275
593,554
Cash generated from operations
1,364,501
453,604
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