REGISTERED NUMBER: 12161688 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 January 2023 |
for |
JPR Group Holdings Limited |
REGISTERED NUMBER: 12161688 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 January 2023 |
for |
JPR Group Holdings Limited |
JPR Group Holdings Limited (Registered number: 12161688) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 January 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Profit and Loss Account | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
JPR Group Holdings Limited |
Company Information |
for the Year Ended 31 January 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
Ebenezer House |
Ryecroft |
Newcastle under Lyme |
Staffordshire |
ST5 2BE |
JPR Group Holdings Limited (Registered number: 12161688) |
Group Strategic Report |
for the Year Ended 31 January 2023 |
The directors present their strategic report of the company and the group for the year ended 31 January 2023. |
REVIEW OF BUSINESS |
The Directors are pleased to report that the company generated an increase in turnover from £16,526,852 to |
£17,752.295 with subsequent after tax profit levels for the 31st January 2023 year end of £261,642. |
The company enters a new financial year with a positive outlook and strong order book for the foreseeable future. |
The company has weathered the storm in a year that saw substantial increases in raw material costs which negatively affected operating profit margins, particularly on fixed price contracts. |
During the year the company implemented internal infrastructure and recruitment measures in order to put it in good shape for the year ahead. |
Prompt payments were maintained to suppliers and HMRC. |
The Company maintains its commitment and implementation to Apprentice training which is considered essential to future growth and prosperity. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Operating in the construction sector the company is exposed to protracted payment terms with customers and working capital management issues. The safety of the company's employees whilst on-site is a particular concern too. |
The management of the company offset these risks by having strict credit terms with new customers and by developing strong relationships with customers to ensure contract terms are adhered to and problems are headed-off before they become significant. The health and safety of the workforce at construction sites is paramount to the company and our operational risk manager assesses all risks which the workforce may be exposed to before and during our onsite work. |
KEY PERFORMANCE INDICATORS |
The directors assess the financial performance of the group by reviewing key financial benchmarks, namely, gross profit percentage, the level of net current assets and net cash. |
Gross profit percentage is the measure of gross profit compared with turnover as a percentage and measures the company's ability to maintain a healthy contract price of services provided against managing costs of providing these services. |
Group | 2023 | 2022 |
Gross profit percentage | 14.4% | 22.7% |
Net current assets is the measure of working capital in the business and demonstrates the groups and the company's ability to settle short-term debts and obligations as and when they fall due. |
2023 | 2022 |
Group |
Net current assets | £2,632,903 | £2,941,295 |
Net cash is the total amount of cash held in the business less the amount of any structured debt. This measure shows the cash in the business in excess of any debt finance. |
Group | 2023 | 2022 |
Net Cash | £728,904 | £1,478,653 |
JPR Group Holdings Limited (Registered number: 12161688) |
Group Strategic Report |
for the Year Ended 31 January 2023 |
FINANCIAL STATEMENT RISKS |
The financial instrument risks affecting the group relate to cashflow risk, credit risk and liquidity risk. |
Cashflow risk is the risk that sufficient levels of cash do not flow into the business to allow working capital requirements to be met in a timely manner. The management of the timing of cash inflows and cash outflows is achieved with the close involvement of management with customer and supplier relationships. Management also reviews financial information on a regular basis to determine whether further measures are needed to ensure sufficient cash inflows to the business. |
Credit risk is the risk that the group will not receive full settlement on amounts due from customers. This risk is managed through continually monitored credit procedures including having regular dialogue with customers during the conduct of the business. |
Liquidity risk is the risk that the group will not have sufficient funds to carry out its short and longer- term objectives. Historically, the group has managed its funding requirements through the retention of cash arising from its operating activities without the need to raise cash through debt finance. |
FUTURE DEVELOPMENTS |
The group has a strong order book for the current trading year. However the Directors are conscious of global economic certainties in particular fuel and energy prices and the effects that these will have on the UK economy. |
ON BEHALF OF THE BOARD: |
JPR Group Holdings Limited (Registered number: 12161688) |
Report of the Directors |
for the Year Ended 31 January 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 January 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group for the year under review was that of mechanical, electrical, data services,CCTV and security and maintenance engineers. |
The principal activity of JPR Group Holdings ("the company") was that of a holding company. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 January 2023 will be £ 306,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2022 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
Future developments and principal risks and uncertainties are disclosed in the strategic report. |
The group has chosen in accordance with section 414(c) of the Companies Act 2006 (Strategic and Directors Report) Regulations 2013 to set out in the group's Strategic Report information required by schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulatons 2008. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", 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 the financial statements, the directors are required to: |
- select suitable accounting policies and then apply them consistently; |
- state whether applicable United Kingdom Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; |
- make judgements and accounting estimates that are reasonable and prudent; and |
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. |
The directors 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
JPR Group Holdings Limited (Registered number: 12161688) |
Report of the Directors |
for the Year Ended 31 January 2023 |
AUDITORS |
The auditors, Thompson Wright Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
JPR Group Holdings Limited |
Opinion |
We have audited the financial statements of JPR Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2023 which comprise the Consolidated Profit and Loss Account, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 January 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
JPR Group Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement set out on page four, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
JPR Group Holdings Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the electronic mechanical sector. |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental (including Waste Electrical and Electronic Equipment recycling (WEEE) Regulations 2013) and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
Report of the Independent Auditors to the Members of |
JPR Group Holdings Limited |
- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
Ebenezer House |
Ryecroft |
Newcastle under Lyme |
Staffordshire |
ST5 2BE |
JPR Group Holdings Limited (Registered number: 12161688) |
Consolidated Profit and Loss Account |
for the Year Ended 31 January 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 17,752,295 | 16,526,852 |
Cost of sales | 15,191,147 | 12,773,122 |
GROSS PROFIT | 2,561,148 | 3,753,730 |
Administrative expenses | 2,220,677 | 2,425,516 |
340,471 | 1,328,214 |
Other operating income | - | 8,429 |
OPERATING PROFIT | 5 | 340,471 | 1,336,643 |
Interest receivable and similar income | 1,982 | 70 |
342,453 | 1,336,713 |
Interest payable and similar expenses | 6 | 17,520 | 17,618 |
PROFIT BEFORE TAXATION | 324,933 | 1,319,095 |
Tax on profit | 7 | 63,291 | 254,093 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 261,642 | 1,065,002 |
JPR Group Holdings Limited (Registered number: 12161688) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 January 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 261,642 | 1,065,002 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
261,642 |
1,065,002 |
Total comprehensive income attributable to: |
Owners of the parent | 261,642 | 1,065,002 |
JPR Group Holdings Limited (Registered number: 12161688) |
Consolidated Balance Sheet |
31 January 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 42,984 | - |
Tangible assets | 11 | 139,656 | 137,882 |
Investments | 12 | - | - |
182,640 | 137,882 |
CURRENT ASSETS |
Stocks | 13 | 6,000 | 6,000 |
Debtors | 14 | 3,806,358 | 3,863,229 |
Cash at bank and in hand | 1,069,484 | 1,945,320 |
4,881,842 | 5,814,549 |
CREDITORS |
Amounts falling due within one year | 15 | 2,248,939 | 2,873,254 |
NET CURRENT ASSETS | 2,632,903 | 2,941,295 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 2,815,543 | 3,079,177 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(136,232 |
) |
(366,667 |
) |
PROVISIONS FOR LIABILITIES | 20 | (33,977 | ) | (22,818 | ) |
NET ASSETS | 2,645,334 | 2,689,692 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 255 | 255 |
Merger Reserve | 22 | 510 | 510 |
Retained earnings | 22 | 2,644,569 | 2,688,927 |
SHAREHOLDERS' FUNDS | 2,645,334 | 2,689,692 |
The financial statements were approved by the Board of Directors and authorised for issue on 23 October 2023 and were signed on its behalf by: |
J Moran - Director |
JPR Group Holdings Limited (Registered number: 12161688) |
Company Balance Sheet |
31 January 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 307,442 | 800,005 |
The financial statements were approved by the Board of Directors and authorised for issue on |
JPR Group Holdings Limited (Registered number: 12161688) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 January 2023 |
Called up |
share | Retained | Merger | Total |
capital | earnings | Reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2021 | 255 | 1,887,925 | 510 | 1,888,690 |
Changes in equity |
Dividends | - | (264,000 | ) | - | (264,000 | ) |
Total comprehensive income | - | 1,065,002 | - | 1,065,002 |
Balance at 31 January 2022 | 255 | 2,688,927 | 510 | 2,689,692 |
Changes in equity |
Dividends | - | (306,000 | ) | - | (306,000 | ) |
Total comprehensive income | - | 261,642 | - | 261,642 |
Balance at 31 January 2023 | 255 | 2,644,569 | 510 | 2,645,334 |
JPR Group Holdings Limited (Registered number: 12161688) |
Company Statement of Changes in Equity |
for the Year Ended 31 January 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 February 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2023 |
JPR Group Holdings Limited (Registered number: 12161688) |
Consolidated Cash Flow Statement |
for the Year Ended 31 January 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (66,856 | ) | 598,710 |
Interest paid | (17,520 | ) | (17,618 | ) |
Tax paid | (257,064 | ) | (95,761 | ) |
Net cash from operating activities | (341,440 | ) | 485,331 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (53,730 | ) | - |
Purchase of tangible fixed assets | (72,720 | ) | (28,385 | ) |
Sale of tangible fixed assets | 24,050 | 4,168 |
Interest received | 1,982 | 70 |
Net cash from investing activities | (100,418 | ) | (24,147 | ) |
Cash flows from financing activities |
Loan repayments in year | (126,087 | ) | (33,334 | ) |
Amount introduced by directors | 306,000 | 264,000 |
Amount withdrawn by directors | (307,891 | ) | (229,656 | ) |
Equity dividends paid | (306,000 | ) | (264,000 | ) |
Net cash from financing activities | (433,978 | ) | (262,990 | ) |
(Decrease)/increase in cash and cash equivalents | (875,836 | ) | 198,194 |
Cash and cash equivalents at beginning of year |
2 |
1,945,320 |
1,747,126 |
Cash and cash equivalents at end of year | 2 | 1,069,484 | 1,945,320 |
JPR Group Holdings Limited (Registered number: 12161688) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 January 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 324,933 | 1,319,095 |
Depreciation charges | 63,820 | 53,092 |
Profit on disposal of fixed assets | (6,178 | ) | (806 | ) |
Finance costs | 17,520 | 17,618 |
Finance income | (1,982 | ) | (70 | ) |
398,113 | 1,388,929 |
Increase in stocks | - | (1,000 | ) |
Decrease/(increase) in trade and other debtors | 57,799 | (539,322 | ) |
Decrease in trade and other creditors | (522,768 | ) | (249,897 | ) |
Cash generated from operations | (66,856 | ) | 598,710 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 January 2023 |
31.1.23 | 1.2.22 |
£ | £ |
Cash and cash equivalents | 1,069,484 | 1,945,320 |
Year ended 31 January 2022 |
31.1.22 | 1.2.21 |
£ | £ |
Cash and cash equivalents | 1,945,320 | 1,747,126 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.2.22 | Cash flow | At 31.1.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,945,320 | (875,836 | ) | 1,069,484 |
1,945,320 | (875,836 | ) | 1,069,484 |
Debt |
Debts falling due within 1 year | (100,000 | ) | (104,348 | ) | (204,348 | ) |
Debts falling due after 1 year | (366,667 | ) | 230,435 | (136,232 | ) |
(466,667 | ) | 126,087 | (340,580 | ) |
Total | 1,478,653 | (749,749 | ) | 728,904 |
JPR Group Holdings Limited (Registered number: 12161688) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 January 2023 |
1. | STATUTORY INFORMATION |
JPR Group Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going Concern |
After making enquiries, the directors have a reasonable expectation that the company and group has adequate resources to continue in operational existence for the foreseeable future, being the 12 month period from the date of these accounts being approved, and therefore the financial statements have been prepared on a going concern basis. |
Basis of consolidation |
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the financial statements of the company and its subsidiary undertaking.The financial statements of all group companies are adjusted, where necessary, to ensure the use of consistent accounting policies. Acquisitions are accounted for under the merger accounting method. |
The acquisition satisfies the conditions for merger relief in Section 612 of the Companies Act 2006, so that the company is not required to record a share premium with regards to the transaction. |
JPR Group Holdings Limited (Registered number: 12161688) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2023 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of financial statements in conformity with generally accepted principles requires the directors to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Some of these estimates and judgements are inherently uncertain and subject to change. The impact of any change in accounting estimates is reflected in the period in which the estimate is revised, if the revision only affects the period, or in the period of the revision and future periods if the revision affects both current and future periods. In this respect the directors believe that the critical accounting policies where judgements or estimations are necessarily applied are as follows. |
Critical judgements in applying the company's accounting policies |
There were no critical judgements made in applying the company's accounting policies. |
Critical accounting estimates and assumptions |
Valuation of revenue under construction contracts |
Turnover is recognised on long term contracts as they progress. There is a level of estimation and judgement involved in determining the stage of completion of each contract. |
Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimates of useful economic lives and residual value of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, of economic utilisation of the assets. |
Impairment of debtors |
Management perform ongoing reviews of the recoverability of debtor balances, An allowance for doubtful debts is maintained for potential credit losses based on management's assessment of the expected collectability of amounts receivable. The allowance for bad debts is reviewed periodically to assess the adequacy of the allowance. |
JPR Group Holdings Limited (Registered number: 12161688) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. |
Construction Contracts |
Where the outcome of a construction contract can be estimated reliably, revenue costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable. |
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately. |
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period. |
The "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is determined by carrying out surveys of the work performed. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use. |
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
Plant and machinery | - | 33% on cost |
Fixtures and fittings and equipment | - | 20% on reducing balance |
Motor vehicles | - | 25% on reducing balance |
Computer equipment | - | Straight line over 3 years |
Repairs, maintenance and minor inspection costs are expensed as incurred. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
JPR Group Holdings Limited (Registered number: 12161688) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
JPR Group Holdings Limited (Registered number: 12161688) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other receivables, and cash and bank balances are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expires or are settled, or (b) substantially all risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other payables 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade payables 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 current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Rounding |
The financial statements are rounded to the nearest pound. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
All turnover arose within the United Kingdom in both the current and prior year. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 4,767,818 | 4,375,747 |
Social security costs | 450,472 | 382,489 |
Other pension costs | 140,367 | 182,102 |
5,358,657 | 4,940,338 |
JPR Group Holdings Limited (Registered number: 12161688) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Operatives | 86 | 86 |
Management | 30 | 32 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 22,793 | 17,901 |
Directors' pension contributions to money purchase schemes | 24,000 | 69,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 249,653 | 195,543 |
Other operating leases | 38,759 | 30,000 |
Depreciation - owned assets | 53,074 | 53,092 |
Profit on disposal of fixed assets | (6,178 | ) | (806 | ) |
Computer software amortisation | 10,746 | - |
Auditors' remuneration | 18,770 | 22,437 |
Bad debts | - | 102,271 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 17,520 | 13,288 |
Other interest | - | 4,330 |
17,520 | 17,618 |
JPR Group Holdings Limited (Registered number: 12161688) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2023 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 52,131 | 257,063 |
Under provision in respect of previous year | 1 | 9 |
Total current tax | 52,132 | 257,072 |
Deferred tax | 11,159 | (2,979 | ) |
Tax on profit | 63,291 | 254,093 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 324,933 | 1,319,095 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
61,737 |
250,628 |
Effects of: |
Expenses not deductible for tax purposes | 1,858 | 2,922 |
Capital allowances in excess of depreciation | (11,463 | ) | - |
Depreciation in excess of capital allowances | - | 3,514 |
Changes in provisions | 11,159 | (2,979 | ) |
Prior year amendments | - | 8 |
Total tax charge | 63,291 | 254,093 |
8. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
C Ordinary shares of £1 each |
Interim | 228,609 | 132,000 |
D Ordinary shares of £1 each |
Interim | 77,391 | 132,000 |
306,000 | 264,000 |
JPR Group Holdings Limited (Registered number: 12161688) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
software |
£ |
COST |
Additions | 53,730 |
At 31 January 2023 | 53,730 |
AMORTISATION |
Amortisation for year | 10,746 |
At 31 January 2023 | 10,746 |
NET BOOK VALUE |
At 31 January 2023 | 42,984 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 February 2022 | 213,887 | 46,775 | 464,620 | 53,712 | 778,994 |
Additions | 6,900 | - | 65,820 | - | 72,720 |
Disposals | - | - | (55,001 | ) | - | (55,001 | ) |
At 31 January 2023 | 220,787 | 46,775 | 475,439 | 53,712 | 796,713 |
DEPRECIATION |
At 1 February 2022 | 205,562 | 23,387 | 358,453 | 53,710 | 641,112 |
Charge for year | 7,914 | 4,582 | 40,578 | - | 53,074 |
Eliminated on disposal | - | - | (37,129 | ) | - | (37,129 | ) |
At 31 January 2023 | 213,476 | 27,969 | 361,902 | 53,710 | 657,057 |
NET BOOK VALUE |
At 31 January 2023 | 7,311 | 18,806 | 113,537 | 2 | 139,656 |
At 31 January 2022 | 8,325 | 23,388 | 106,167 | 2 | 137,882 |
JPR Group Holdings Limited (Registered number: 12161688) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 February 2022 |
and 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: North Street, Stoke On Trent, Staffordshire ST4 7SA. |
Nature of business: |
% |
Class of shares: | holding |
13. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Finished Goods | 6,000 | 6,000 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 3,360,879 | 3,429,682 |
Amounts owed by group undertakings | - | - |
Other debtors | 81,987 | 33,873 |
Directors' current accounts | 928 | - | 928 | - |
Prepayments and accrued income | 362,564 | 399,674 |
3,806,358 | 3,863,229 |
Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. |
JPR Group Holdings Limited (Registered number: 12161688) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 204,348 | 100,000 |
Trade creditors | 1,071,157 | 1,061,738 |
Tax | 52,131 | 257,063 |
Social security and other taxes | 230,763 | 224,341 |
Other creditors | 57,260 | 60,634 |
Directors' current accounts | - | 963 | - | 963 |
Accruals and deferred income | 633,280 | 1,168,515 |
2,248,939 | 2,873,254 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 17) | 136,232 | 366,667 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 204,348 | 100,000 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 136,232 | 100,000 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | - | 266,667 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
JPR Group Holdings Limited (Registered number: 12161688) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2023 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 71,423 | 87,825 |
Between one and five years | - | 10,923 |
71,423 | 98,748 |
19. | SECURED DEBTS |
The bank loan is secured by a fixed and floating charge over the assets of the subsidiary company, JPR Mechanical and Electrical Services Limited and those of this company. |
Interest is charged at Base Rate Plus 2.79% and is repayable over a 60 month period. |
In addition 80% of the outstanding balance is backed by a government guarantee to the group's bankers. |
20. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 34,701 | 23,630 |
Other timing differences | (724 | ) | (812 | ) |
33,977 | 22,818 |
Group |
Deferred |
tax |
£ |
Balance at 1 February 2022 | 22,818 |
Charge to Profit and Loss Account during year | 11,159 |
Balance at 31 January 2023 | 33,977 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
C Ordinary | £1 | 153 | 153 |
D Ordinary | £1 | 102 | 102 |
255 | 255 |
The Ordinary C & D shares have full rights in the company with regards to voting, dividend and capital distribution. |
A dividend may be paid to each class of share to the exclusion of any other class. |
JPR Group Holdings Limited (Registered number: 12161688) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2023 |
22. | RESERVES |
Group |
Retained | Merger |
earnings | Reserve | Totals |
£ | £ | £ |
At 1 February 2022 | 2,688,927 | 510 | 2,689,437 |
Profit for the year | 261,642 | 261,642 |
Dividends | (306,000 | ) | (306,000 | ) |
At 31 January 2023 | 2,644,569 | 510 | 2,645,079 |
Company |
Retained |
earnings |
£ |
At 1 February 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 January 2023 |
Merger reserve includes the capital redemption reserve of the subsidiary company existing at the date of the group reorganisation and is treated as a movement on these reserves. |
23. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge in respect of contributions to the fund and amounts to £138,913 (2022 £177,323). Included within these totals are amounts that are unpaid at the year end date of £3,809 (2022- £9,037). |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 January 2023 and 31 January 2022: |
2023 | 2022 |
£ | £ |
J Moran |
Balance outstanding at start of year | (963 | ) | 33,381 |
Amounts advanced | 307,891 | 114,566 |
Amounts repaid | (306,000 | ) | (148,910 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 928 | (963 | ) |
JPR Group Holdings Limited (Registered number: 12161688) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 January 2023 |
25. | RELATED PARTY DISCLOSURES |
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 wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
The group operates from a building owned by the pension scheme of the directors. The rent payable for the year ended 31 January 2023 was £38,759 (2022: £30,000). |
During the year, a total of key management personnel compensation of £ 341,193 (2022 - £ 496,498 ) was paid. |
26. | ULTIMATE CONTROLLING PARTY |
The company is ultimately controlled by J Moran by virtue of his majority shareholding. |