Company registration number 388999 (England and Wales)
JAMES ROBINSON FIBRES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
JAMES ROBINSON FIBRES LIMITED
COMPANY INFORMATION
Directors
J M Taylor
M A Longley
E M Taylor
A Tate
N J Batty
Company number
388999
Registered office
James Robinson Fibres Ltd
Millersdale Close
Euroway Industrial Estate
Bradford
West Yorkshire
BD4 6RX
Auditor
Firth Parish
1 Airport West
Lancaster Way
Yeadon
Leeds
West Yorkshire
LS19 7ZA
JAMES ROBINSON FIBRES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 35
JAMES ROBINSON FIBRES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The directors present the strategic report for the year ended 30 June 2023.

Review of the business

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

 

The Group continues as a manufacturer and trader of all types of textile raw material products.

 

The results for the year and the financial position are considered by the directors to be good considering the uncertainties and difficult market conditions that we have faced.

 

In November 2022, our Chairman, Chris Taylor, passed away after a period of declining health, and as a constant within the business for almost 60 years, he will be hugely missed. He is succeeded as Group Chairman by his son James, and the rest of the Senior Management Team, who will continue to drive the business forward as he would have wished.

 

Despite the challenging environment and personal loss this year, sales continued to grow, with turnover exceeding £25m, a record for the Group. Falling global raw material prices in the second half of the financial year had a detrimental effect on gross margin in the parent company as we worked through expensive stock, but margins recovered to their normal levels by the end of the year. Rising interest rates also had a negative impact on profitability as our program of commercial and residential building projects increased Group borrowings. We are currently undertaking a review of the yields on our residential rental portfolio with a view to releasing funds and reducing interest costs if this is deemed beneficial to our growth strategy.

 

Sales of our eco-friendly foam replacement products for the flooring, bedding, and home furnishing markets through our manufacturing business have continued to grow. Further investment in R&D has led to new product launches in both existing and new markets and we continue to forecast turnover growth on this side of the business. We have also invested in additional plant and equipment, enabling us to offer new added value manufacturing services and reduce the barriers to entry which were curtailing growth in some markets. The huge increases in energy costs during the year, due to the war in Ukraine, had a negative but temporary impact on profitability. In March we installed a second large solar array and in April we secured new energy contracts, the combination of which will ensure that our energy costs are back to a manageable level, for the forthcoming year and beyond. Despite the challenging retail environment, we are confident that the opportunities we are pursuing will deliver continued revenue growth and that with our spare manufacturing capacity and a firm grip on overheads, we will see a return to profit in the current financial year.

 

The property business has continued to develop commercial buildings during the year, and a further four units have been completed at our Cutler Heights site in Bradford. We have completed the sale of the first unit on our residential barn conversion on the outskirts of Doncaster, terms have also been agreed on a second property, and the remaining four are currently being marketed for sale. We continue to seek further opportunities for development in both the commercial and residential sectors.

 

The directors are confident that the Group is well placed to take advantage of the opportunities that will arise in the coming year, despite the general gloom around the state of the economy as a result of the cost-of-living crisis. The business has the resources necessary to meet any challenges and the board will continue to drive the business forward to maximise all opportunities.

On behalf of the board

J M Taylor
Director
19 October 2023
JAMES ROBINSON FIBRES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -

The directors present their annual report and financial statements for the year ended 30 June 2023.

Principal activities

The principal activity of the group continued to be that of textile fibre and waste merchants.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £2,000. The directors do not recommend payment of a further dividend.

Directors

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

C J F Taylor
(Deceased 22 November 2022)
J M Taylor
M A Longley
E M Taylor
A Tate
N J Batty
Future developments

The directors will actively continue to take all opportunities to further expand and consolidate the business.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
J M Taylor
Director
19 October 2023
JAMES ROBINSON FIBRES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

JAMES ROBINSON FIBRES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JAMES ROBINSON FIBRES LIMITED
- 4 -
Opinion

We have audited the financial statements of James Robinson Fibres Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 group and parent 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 group's and 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 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:

JAMES ROBINSON FIBRES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JAMES ROBINSON FIBRES LIMITED
- 5 -
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 their 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

 

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

Ÿ

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud to be in the following areas: valuation of investment property, revenue recognition around the year end date and stock valuation. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

JAMES ROBINSON FIBRES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JAMES ROBINSON FIBRES LIMITED
- 6 -

We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, pensions legislation and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group’s ability to operate to avoid a material penalty. This included the companies health and safety requirements and heavy goods vehicle driver regulation.

Audit response to risks identified

As a result of performing the above, we identified the valuation of investment property, revenue recognition around the year end date and stock valuation as key audit matters related to the potential risk of fraud or non-compliance with laws and regulations.

Investment property valuation

The value of investment properties included in the balance sheet at the year end was £4,061,000 (2022: £2,426,000).

 

We have:Ÿ

Revenue recognition around the year end date

The risk has been focused to the sale of fibre in the period spanning the year end.

 

We have:

Stock valuation

The stock balance included in the balance sheet at the year end was £6,624,269 (2022: £9,287,388).

 

We have:Ÿ

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.

JAMES ROBINSON FIBRES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JAMES ROBINSON FIBRES LIMITED
- 7 -

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.

Geoffrey Beaumont (Senior Statutory Auditor)
For and on behalf of Firth Parish
19 October 2023
Chartered Accountants
Statutory Auditor
1 Airport West
Lancaster Way
Yeadon
Leeds
West Yorkshire
LS19 7ZA
JAMES ROBINSON FIBRES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
25,879,444
22,905,940
Cost of sales
(22,611,870)
(19,144,070)
Gross profit
3,267,574
3,761,870
Administrative expenses
(2,996,536)
(3,033,632)
Other operating income
432,137
369,228
Operating profit
4
703,175
1,097,466
Interest receivable and similar income
8
109,700
17,359
Interest payable and similar expenses
9
(138,810)
(63,003)
Other gains and losses
10
155,160
-
Profit before taxation
829,225
1,051,822
Tax on profit
11
26,310
(93,511)
Profit for the financial year
27
855,535
958,311
Other comprehensive income
Revaluation of tangible fixed assets
4,278,801
-
Tax relating to other comprehensive income
(668,526)
-
Total comprehensive income for the year
4,465,810
958,311
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

JAMES ROBINSON FIBRES LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
11,795,351
7,614,950
Investment property
14
4,176,000
2,476,000
15,971,351
10,090,950
Current assets
Stocks
18
6,624,269
9,287,388
Debtors
19
9,512,058
7,216,863
Cash at bank and in hand
437,686
613,898
16,574,013
17,118,149
Creditors: amounts falling due within one year
20
(4,182,492)
(5,744,996)
Net current assets
12,391,521
11,373,153
Total assets less current liabilities
28,362,872
21,464,103
Creditors: amounts falling due after more than one year
21
(2,593,988)
(815,373)
Provisions for liabilities
Deferred tax liability
23
1,800,990
1,144,646
(1,800,990)
(1,144,646)
Net assets
23,967,894
19,504,084
Capital and reserves
Called up share capital
26
5,000
5,000
Revaluation reserve
27
5,300,905
2,025,584
Other reserves
27
927,117
207,592
Profit and loss reserves
27
17,734,872
17,265,908
Total equity
23,967,894
19,504,084
The financial statements were approved by the board of directors and authorised for issue on
19 October 2023
19 October 2023
and are signed on its behalf by:
J M Taylor
Director
Company registration number 388999 (England and Wales)
JAMES ROBINSON FIBRES LIMITED
COMPANY BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
11,184,247
7,322,185
Investment property
14
4,061,000
2,426,000
Investments
15
202
202
15,245,449
9,748,387
Current assets
Stocks
18
3,680,326
6,665,496
Debtors
19
10,786,193
8,108,763
Cash at bank and in hand
366,253
544,866
14,832,772
15,319,125
Creditors: amounts falling due within one year
20
(3,591,152)
(5,313,949)
Net current assets
11,241,620
10,005,176
Total assets less current liabilities
26,487,069
19,753,563
Creditors: amounts falling due after more than one year
21
(2,593,988)
(815,373)
Provisions for liabilities
Deferred tax liability
23
1,728,151
1,089,992
(1,728,151)
(1,089,992)
Net assets
22,164,930
17,848,198
Capital and reserves
Called up share capital
26
5,000
5,000
Revaluation reserve
27
5,206,191
1,930,870
Other reserves
27
748,276
141,842
Profit and loss reserves
27
16,205,463
15,770,486
Total equity
22,164,930
17,848,198

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £708,457 (2022 - £1,004,222 profit).

The financial statements were approved by the board of directors and authorised for issue on 19 October 2023 and are signed on its behalf by:
J M Taylor
Director
Company registration number 388999 (England and Wales)
JAMES ROBINSON FIBRES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
Share capital
Revaluation reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2021
5,000
2,025,584
207,592
16,311,597
18,549,773
Year ended 30 June 2022:
Profit and total comprehensive income
-
-
-
958,311
958,311
Dividends
12
-
-
-
(4,000)
(4,000)
Balance at 30 June 2022
5,000
2,025,584
207,592
17,265,908
19,504,084
Year ended 30 June 2023:
Profit for the year
-
-
-
855,535
855,535
Other comprehensive income:
Revaluation of tangible fixed assets
-
4,278,801
-
-
4,278,801
Tax relating to other comprehensive income
-
(668,526)
-
-
(668,526)
Total comprehensive income
-
3,610,275
-
855,535
4,465,810
Dividends
12
-
-
-
(2,000)
(2,000)
Transfers
-
(334,954)
719,525
(384,571)
-
Balance at 30 June 2023
5,000
5,300,905
927,117
17,734,872
23,967,894
JAMES ROBINSON FIBRES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
Share capital
Revaluation reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2021
5,000
1,930,870
141,842
14,770,264
16,847,976
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
-
-
1,004,222
1,004,222
Dividends
12
-
-
-
(4,000)
(4,000)
Balance at 30 June 2022
5,000
1,930,870
141,842
15,770,486
17,848,198
Year ended 30 June 2023:
Profit for the year
-
-
-
708,457
708,457
Other comprehensive income:
Revaluation of tangible fixed assets
-
4,278,801
-
-
4,278,801
Tax relating to other comprehensive income
-
(668,526)
-
-
(668,526)
Total comprehensive income
-
3,610,275
-
708,457
4,318,732
Dividends
12
-
-
-
(2,000)
(2,000)
Transfers
-
(334,954)
606,434
(271,480)
-
Balance at 30 June 2023
5,000
5,206,191
748,276
16,205,463
22,164,930
JAMES ROBINSON FIBRES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
30
(766,867)
(392,287)
Interest paid
(138,810)
(63,003)
Income taxes refunded/(paid)
48,968
(159,475)
Net cash outflow from operating activities
(856,709)
(614,765)
Investing activities
Purchase of tangible fixed assets
(714,787)
(186,325)
Proceeds from disposal of tangible fixed assets
82,927
56,171
Repayment of loans
-
66,180
Interest received
109,700
17,359
Net cash used in investing activities
(522,160)
(46,615)
Financing activities
Increase in/(Repayment of) borrowings
(400,617)
792,320
Increase in bank loans
2,407,932
-
Movement in fair value of derivatives
248,752
(141,116)
Dividends paid to equity shareholders
(2,000)
(4,000)
Net cash generated from financing activities
2,254,067
647,204
Net increase/(decrease) in cash and cash equivalents
875,198
(14,176)
Cash and cash equivalents at beginning of year
(437,512)
(423,336)
Cash and cash equivalents at end of year
437,686
(437,512)
Relating to:
Cash at bank and in hand
437,686
613,898
Bank overdrafts included in creditors payable within one year
-
(1,051,410)
JAMES ROBINSON FIBRES LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
31
(1,101,099)
(343,287)
Interest paid
(138,810)
(63,003)
Income taxes paid
(16,406)
(319,095)
Net cash outflow from operating activities
(1,256,315)
(725,385)
Investing activities
Purchase of tangible fixed assets
(294,907)
(90,543)
Proceeds on disposal of tangible fixed assets
60,252
42,971
Increase in/(repayment of) short term loans
-
66,180
Interest received
109,700
17,359
Net cash (used in)/generated from investing activities
(124,955)
35,967
Financing activities
Increase in/(repayment of) borrowings
(400,617)
792,320
Increase in bank loans
2,407,932
-
Purchase of derivatives
248,752
(141,116)
Dividends paid to equity shareholders
(2,000)
(4,000)
Net cash generated from financing activities
2,254,067
647,204
Net increase/(decrease) in cash and cash equivalents
872,797
(42,214)
Cash and cash equivalents at beginning of year
(506,544)
(464,330)
Cash and cash equivalents at end of year
366,253
(506,544)
Relating to:
Cash at bank and in hand
366,253
544,866
Bank overdrafts included in creditors payable within one year
-
(1,051,410)
JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
1
Accounting policies
Company information

James Robinson Fibres Limited (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Millersdale Close, Euroway Industrial Estate, Bradford, West Yorkshire. BD4 6SG.

 

The group consists of James Robinson Fibres Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

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

1.2
Basis of consolidation

The consolidated financial statements incorporate those of James Robinson Fibres Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 30 June 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.4
Turnover

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

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

1.5
Research and development expenditure

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

1.6
Tangible fixed assets

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

JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 16 -

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

Freehold land and buildings
2% reducing balance on buildings
Leasehold land and buildings
2% reducing balance on buildings
Plant, machinery, fixtures, fittings & equipment
10%, 25%, 33% and 50% reducing balance and 'units of production' method
Motor vehicles
25%, 33% and 50% reducing balance

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

1.7
Investment property

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.

 

Property rented to a group entity is accounted for as tangible fixed assets.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 17 -
1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

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.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 18 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, 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, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

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

 

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

 

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

JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 19 -
Other financial liabilities

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, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

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

1.14
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.15
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 profit and loss account 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 group’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 is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as an expense in the period in which they are incurred.

1.17
Retirement benefits

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

1.18
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.

JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 20 -
1.19
Government grants

Government grants that do not impose specified future performance-related conditions are recognised in income when the grant proceeds are received or receivable. Grants that impose specified future performance-related conditions are recognised in income only when the performance-related conditions are met.

1.20
Foreign exchange

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

1.21

Rents receivable

Rentals are credited to the profit and loss account on a receivable basis.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Investment property valuation

Investment properties are valued by reference to their fair value. Consideration of the value of these properties requires judgements to be made as to whether the valuation has changed, based on previously undertaken professional valuations, by considering the condition of the property and related market trends.

Stock valuation

Stock and work in progress is valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving, obsolete stocks and unrealisable work in progress. Calculation of these provisions requires judgements to be made, which include forecasting customer demand for the product and the competitive and economic environment in the industry.

Residual values and useful economic lives of fixed assets

The Group depreciates tangible assets over their estimated useful lives down to residual values. Judgement is required to determine both the estimated useful life and the residual value of all fixed assets by assessing the expected period over which the asset will be used and amount the Group would expect to recover upon disposal.

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Goods and services
25,879,444
22,905,940
JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
3
Turnover and other revenue
(Continued)
- 21 -
2023
2022
£
£
Turnover analysed by geographical market
UK
21,401,325
19,050,103
Exports
4,478,119
3,855,837
25,879,444
22,905,940
2023
2022
£
£
Other revenue
Interest income
109,700
17,359
Grants received
92,421
129,293
Rental income arising from investment properties
190,071
167,640
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
106,770
(304)
Research and development costs
4,312
7,797
Government grants
(92,421)
(129,293)
Depreciation of owned tangible fixed assets
463,181
464,636
Profit on disposal of tangible fixed assets
(32,921)
(30,565)
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
21,465
15,665
Audit of the financial statements of the company's subsidiaries
8,000
7,240
29,465
22,905
JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 22 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production
33
33
7
7
Selling and distribution
10
10
9
9
Administration
17
18
11
11
Total
60
61
27
27

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,450,889
2,492,811
1,417,553
1,562,020
Social security costs
269,371
282,732
168,076
195,808
Pension costs
39,469
48,703
22,459
32,359
2,759,729
2,824,246
1,608,088
1,790,187
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
636,528
858,971
Company pension contributions to defined contribution schemes
6,200
17,657
642,728
876,628

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022 - 6).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
281,587
290,649
JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 23 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
63
83
Other interest income
109,637
17,276
Total income
109,700
17,359
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
63
83
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
80,662
17,432
Other interest
58,148
45,571
Total finance costs
138,810
63,003
10
Other gains and losses
2023
2022
£
£
Changes in the fair value of investment properties
155,160
-
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
2,744
17,662
Adjustments in respect of prior periods
(16,872)
(24,829)
Total current tax
(14,128)
(7,167)
Deferred tax
Origination and reversal of timing differences
(12,182)
100,678
Total tax (credit)/charge
(26,310)
93,511
JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
11
Taxation
(Continued)
- 24 -

The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
829,225
1,051,822
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
157,553
199,846
Tax effect of expenses that are not deductible in determining taxable profit
3,627
2,365
Tax effect of income not taxable in determining taxable profit
(17,560)
(27,810)
Adjustments in respect of prior years
(51,685)
(24,829)
Depreciation on assets not qualifying for tax allowances
5,451
11,281
Research and development tax credit
(101,745)
(92,625)
Effect of revaluations of investments
31,350
-
Transition adjustments
(502)
(502)
Deferred tax recognised at different tax rate
22,438
24,794
Consolidation adjustments
(43,606)
990
Book value in excess of chargeable gain
(31,631)
1
Taxation (credit)/charge
(26,310)
93,511

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
668,526
-
12
Dividends
2023
2022
£
£
Interim paid
2,000
4,000
JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 25 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant, machinery, fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 July 2022
1,315,386
4,450,000
3,315,521
743,564
9,824,471
Additions
-
-
488,686
226,101
714,787
Disposals
-
-
-
(87,265)
(87,265)
Revaluation
3,984,614
(450,000)
-
-
3,534,614
Transfer to investment property
(300,000)
-
-
-
(300,000)
At 30 June 2023
5,000,000
4,000,000
3,804,207
882,400
13,686,607
Depreciation and impairment
At 1 July 2022
597,662
88,556
1,084,200
439,103
2,209,521
Depreciation charged in the year
14,355
43,614
317,168
88,044
463,181
Eliminated in respect of disposals
-
-
-
(37,259)
(37,259)
Revaluation
(612,017)
(132,170)
-
-
(744,187)
At 30 June 2023
-
-
1,401,368
489,888
1,891,256
Carrying amount
At 30 June 2023
5,000,000
4,000,000
2,402,839
392,512
11,795,351
At 30 June 2022
717,724
4,361,444
2,231,321
304,461
7,614,950
JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
13
Tangible fixed assets
(Continued)
- 26 -
Company
Freehold land and buildings
Leasehold land and buildings
Plant, machinery, fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 July 2022
1,315,386
4,450,000
2,868,232
654,431
9,288,049
Additions
-
-
115,301
179,606
294,907
Disposals
-
-
-
(60,270)
(60,270)
Revaluation
3,984,614
(450,000)
-
-
3,534,614
Transfer to investment property
(300,000)
-
-
-
(300,000)
At 30 June 2023
5,000,000
4,000,000
2,983,533
773,767
12,757,300
Depreciation and impairment
At 1 July 2022
597,662
88,556
859,812
419,834
1,965,864
Depreciation charged in the year
14,355
43,614
258,557
67,750
384,276
Eliminated in respect of disposals
-
-
-
(32,900)
(32,900)
Revaluation
(612,017)
(132,170)
-
-
(744,187)
At 30 June 2023
-
-
1,118,369
454,684
1,573,053
Carrying amount
At 30 June 2023
5,000,000
4,000,000
1,865,164
319,083
11,184,247
At 30 June 2022
717,724
4,361,444
2,008,420
234,597
7,322,185

All categories of land and buildings were revalued at 22 November 2022 by Dove Haigh Phillips LLP, independent valuers not connected with the group, on the basis of market value. Market value was defined as the price which the property might reasonably be expected to fetch if sold in the open market at that time.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Leasehold land and buildings
Freehold land and
buildings
2023
2022
2023
2022
£
£
£
£
Group
Cost
1,894,302
1,894,302
1,216,465
1,315,386
Accumulated depreciation
(100,634)
(81,559)
(574,337)
(597,662)
Carrying value
1,793,668
1,812,743
642,128
717,724
Company
Cost
1,989,016
1,989,016
1,216,465
1,315,386
Accumulated depreciation
(100,634)
(81,559)
(574,337)
(597,662)
Carrying value
1,888,382
1,907,457
642,128
717,724
JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 27 -
14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 July 2022
2,476,000
2,426,000
Transfers from inventories
1,244,840
1,305,000
Transfers from owner-occupied property
300,000
300,000
Net gains or losses through fair value adjustments
155,160
30,000
At 30 June 2023
4,176,000
4,061,000

The fair value of the investment property held at Sowerby Bridge, Halifax and Moor Park Harrogate has been arrived at on the basis of a valuation carried out at 22 November 2022 by Dove Haigh Phillips LLP, independent valuers who are not connected with the group.

 

The valuations were made on an open market value basis by reference to market evidence of transaction prices for similar properties. After consideration of current market conditions, it is the directors' opinion that the fair value of all investments properties has not changed since these valuations.

15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
-
202
202
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022 and 30 June 2023
202
Carrying amount
At 30 June 2023
202
At 30 June 2022
202
16
Subsidiaries

Details of the company's subsidiaries at 30 June 2023 are as follows:

Name of undertaking
Nature of business
Class of
% Held
shares held
Direct
J R Property & Restorations Limited - UK
Property development
Ordinary
100.00
JRGroupUK Limited - UK
Dormant
Ordinary
100.00
Mill West Freehold Reversion Limited - UK
Property management
Ordinary
100.00
Texfelt Limited - UK
Carpet underlay, wadding and insulation manufacturers
Ordinary
100.00
JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 28 -
17
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
-
181,637
-
181,637
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
67,115
-
67,115
-
Hedging arrangements

The group has used hedge accounting to account for fair value hedges. The financial instruments designated as hedging instruments are foreign exchange forward contracts. The fair value at the year end of the forward contracts held as hedging instruments was £3,612,407. The hedged items consist of purchase contracts. The principle risk being hedged is exchange rate risk.

 

The amount of the change in fair value of the hedging instrument recognised in the profit and loss for the year is £44,315. The amount of the change in fair value of the hedged items recognised in the profit and loss for the year is £44,315.

18
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
3,930,316
5,644,705
3,640,326
5,320,496
Work in progress
2,453,169
3,485,864
40,000
1,345,000
Finished goods and goods for resale
240,784
156,819
-
-
6,624,269
9,287,388
3,680,326
6,665,496
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,209,858
2,757,884
2,712,235
2,302,549
Corporation tax recoverable
-
32,096
-
32,886
Amounts owed by group undertakings
-
-
4,298,051
2,007,673
Derivative financial instruments
-
181,637
-
181,637
Other debtors
6,021,816
4,012,499
3,645,569
3,460,908
Prepayments and accrued income
280,384
232,747
130,338
123,110
9,512,058
7,216,863
10,786,193
8,108,763
JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 29 -
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
22
437,306
1,051,410
437,306
1,051,410
Other borrowings
22
192,011
400,617
192,011
400,617
Trade creditors
1,987,307
3,010,303
1,553,471
2,568,943
Amounts owed to group undertakings
-
-
-
117,442
Corporation tax payable
2,744
-
-
-
Other taxation and social security
872,413
540,244
801,685
485,344
Derivative financial instruments
67,115
-
67,115
-
Government grants
24
92,421
184,842
92,421
184,842
Other creditors
34,791
19,588
12,568
15,179
Accruals and deferred income
496,384
537,992
434,575
490,172
4,182,492
5,744,996
3,591,152
5,313,949
21
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
22
1,970,626
-
1,970,626
-
Other borrowings
22
623,362
815,373
623,362
815,373
2,593,988
815,373
2,593,988
815,373
22
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
2,407,932
-
2,407,932
-
Bank overdrafts
-
1,051,410
-
1,051,410
Other loans
815,373
1,215,990
815,373
1,215,990
3,223,305
2,267,400
3,223,305
2,267,400
Payable within one year
629,317
1,452,027
629,317
1,452,027
Payable after one year
2,593,988
815,373
2,593,988
815,373

The pension scheme loan is secured by a fixed and floating charge over the company's stock.

 

The bank loan is secured against the company's leasehold land and buildings. The bank also has an unlimited multilateral guarantee given by the group companies.

JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 30 -
23
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
578,018
476,267
Tax losses
(72,028)
-
Fair value gains
11,228
56,008
Revaluation gains
1,283,772
615,247
Provisions
-
(2,876)
1,800,990
1,144,646
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
445,220
421,613
Fair value gains
(841)
56,008
Revaluation gains
1,283,772
615,247
Provisions
-
(2,876)
1,728,151
1,089,992
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 July 2022
1,144,646
1,089,992
Credit to profit or loss
(12,182)
(30,367)
Charge to other comprehensive income
668,526
668,526
Liability at 30 June 2023
1,800,990
1,728,151

The amount of the net reversal of deferred tax expected to occur in the next accounting period is a credit of £35,000 (2022 - credit of £10,000), relating to the reversal of existing timing differences on tangible fixed assets.

24
Government grants
Group
Company
2023
2022
2023
2022
£
£
£
£
Arising from government grants
92,421
184,842
92,421
184,842

Grant income amounting to £92,421 (2022 - £129,293) has been recognised in the profit and loss account during the year.

JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 31 -
25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
39,469
48,703

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

26
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5,000
5,000
5,000
5,000

The company has one class of ordinary shares which carry no right to fixed income.

27
Reserves
Revaluation reserve

The revaluation reserve represents the difference between the cost value of the leasehold land and buildings and its valuation at 30 June 2023 less a provision for deferred tax on the revaluation gain.

Other reserves

Other reserves contains the fair value reserve, which represents the surplus arising on the revaluation of investment properties to fair value less the provision for deferred tax.

Profit and loss reserves

The profit and loss account reserve includes all current and prior period retained profits and losses.

28
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
642,727
876,628
JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
28
Related party transactions
(Continued)
- 32 -
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Entities under common control
1,642,453
176,029
3,227
-
Other related parties
1,422
1,903
3,442
-
Company
Entities under common control
-
2,926
216
-
Other related parties
377
-
-
-
Rent and recharges
Interest charged
2023
2022
2023
2022
£
£
£
£
Group
Entities under common control
193,670
75,624
104,590
17,222
Other related parties
22,759
32,812
-
-
Company
Entities under common control
37,736
14,067
109,590
25,803
Other related parties
22,759
32,812
-
-

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Entities under common control
2,616
3,322
Company
Entities under common control
2,616
2,226

The following amounts were outstanding at the reporting end date:

JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
28
Related party transactions
(Continued)
- 33 -
Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities under common control
5,957,238
4,066,331
Other related parties
-
6,471
Company
Entities under common control
3,598,640
3,757,433
Other related parties
-
5,995
Other information

James Robinson Fibres Limited Directors' Pension Scheme

(Members and Trustees of which include directors)

 

On 1 July 2017 the group received a loan from the James Robinson Fibres Limited Directors' Pension Scheme. The loan is repayable over five years and carries a fixed interest rate of 4% per annum. During the year the group repaid £224,627 (2022: £224,627) and was charged interest of £8,637 (2022: £16,947). At the year end date £Nil (2022: £215,990) was due to the pension scheme in respect of this loan.

 

On 29 July 2021 the group received a loan from the James Robinson Fibres Limited Directors' Pension Scheme. The loan is repayable over five years and carries a fixed interest rate of 4% per annum. During the year the group repaid £224,627 (2022: £Nil) and was charged interest of £40,000 (2022: £Nil). At the year end date £815,373 (2022: £1,000,000) was due to the pension scheme in respect of this loan.

 

On 8 July 2022 the group received a loan of £1,000,000 from the James Robinson Fibres Limited Directors' Pension Scheme. The loan carried a fixed interest rate of 3.25% per annum and was repaid in full prior to the year end. During the year the group was charged interest of £26,267 in respect of this loan.

29
Directors' transactions

Dividends totalling £2,000 (2022 - £4,000) were paid in the year in respect of shares held by the company's directors.

Loan's have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Loan
-
-
10,024
(10,024)
-
-
10,024
(10,024)
-
JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 34 -
30
Cash absorbed by group operations
2023
2022
£
£
Profit for the year after tax
855,535
958,311
Adjustments for:
Taxation (credited)/charged
(26,310)
93,511
Finance costs
138,810
63,003
Investment income
(109,700)
(17,359)
Gain on disposal of tangible fixed assets
(32,921)
(30,565)
Fair value gain on investment properties
(155,160)
-
Depreciation and impairment of tangible fixed assets
463,181
464,636
Movements in working capital:
Decrease/(increase) in stocks
1,418,279
(3,847,789)
(Increase)/decrease in debtors
(2,508,928)
456,985
(Decrease)/increase in creditors
(717,232)
1,596,273
Decrease in deferred income
(92,421)
(129,293)
Cash absorbed by operations
(766,867)
(392,287)
31
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
708,457
1,004,222
Adjustments for:
Taxation charged
18,925
131,119
Finance costs
138,810
63,003
Investment income
(109,700)
(17,359)
Gain on disposal of tangible fixed assets
(32,882)
(29,130)
Fair value gain on investment properties
(30,000)
-
Depreciation and impairment of tangible fixed assets
384,276
408,610
Movements in working capital:
Decrease/(increase) in stocks
1,680,170
(2,442,441)
Increase in debtors
(2,891,953)
(878,731)
(Decrease)/increase in creditors
(874,781)
1,546,713
Decrease in deferred income
(92,421)
(129,293)
Cash absorbed by operations
(1,101,099)
(343,287)
JAMES ROBINSON FIBRES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 35 -
32
Analysis of changes in net debt - group
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
613,898
(176,212)
437,686
Bank overdrafts
(1,051,410)
1,051,410
-
(437,512)
875,198
437,686
Borrowings excluding overdrafts
(1,215,990)
(2,007,315)
(3,223,305)
(1,653,502)
(1,132,117)
(2,785,619)
33
Analysis of changes in net debt - company
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
544,866
(178,613)
366,253
Bank overdrafts
(1,051,410)
1,051,410
-
(506,544)
872,797
366,253
Borrowings excluding overdrafts
(1,215,990)
(2,007,315)
(3,223,305)
(1,722,534)
(1,134,518)
(2,857,052)
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