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Company registration number: 05082587
JP&S Servicess Limited
Financial statements
31 January 2023
JP&S Servicess Limited
Contents
Directors and other information
Strategic report
Director's report
Independent auditor's report to the members
Statement of income and retained earnings
Statement of financial position
Statement of cash flows
Notes to the financial statements
JP&S Servicess Limited
Directors and other information
Director Mr V Yoganathan
Secretary Mrs J Yoganathan
Company number 05082587
Registered office 797 Harrow Road
Sudbury Town
Wembley
HA0 2LP
Business address 875 Harrow Road
London
NW10 5NG
Auditor King & King
65-67 Wembley Hill Road
Wembley
Middlesex
HA9 8DP
Accountants Accountancy Solutions
797 Harrow Road
Sudbury Town
Wembley
HA0 2LP
Bankers Barclays Bank
1st Floor, Acorn House
36-38 Park Royal Road
London
NW10 7JA
JP&S Servicess Limited
Strategic report
Year ended 31 January 2023
Principal Activity and Business Review
The principal activity of the company continues to be that of operating petrol service stations with convenience stores.
The performance of the company, the state of affairs at the balance sheet date and the future prospects are considered to be satisfactory. The company's turnover for the year increased by 40% to £86,499,340 (2022: £61,568,814). Gross profit margin for the year increased by 1% to 12.00% (2022: 11%). Capital investment of £273,364 (2022: £1,193,726) was incurred on refurbishment and updating existing properties and equipment. The administrative expenses increased by 8%. This was due to inflation, all refurbished sites became fully operational and increased turnover during the year. At the Balance sheet date the net assets of the company increased to £8,653,355 (2022: £4,913,671).
The director reviews the business strategy on an ongoing basis to address the key business risks and to secure the company's business. This ensures steady growth over the financial years.
Future developments
The company continually reviews the strategy and business models to sustain and improve profitability and growth. The aim is to achieve this by refining the business model to deliver high level of customer care, profit margins and use of optimum resources and processes. The company strives to improve the offering in each
branch by maintaining good relationship with the key suppliers.
Principal Risk and Uncertainties
The principal risks and uncertainties facing the company are environmental risks, general economic conditions and increased competition. The environmental risk facing the company is general hydro carbon pollution associated with the petroleum forecourts. The director has taken steps to minimise this risk by employing external environmental specialist to continuously monitor and report such risks. The company also regularly maintains the fuel storage and dispensing equipment to very high standards to mitigate risks. The company operates in challenging conditions due to increased competition from supermarkets, weak economic condition, weaker pound and increased price of fuel and cost of the goods sold. The company addresses this risks by, negotiating better price with its fuel suppliers, sourcing the products competitively from wholesalers and obtaining bulk buying discounts and reviewing the selling price and margins on a regular basis.
Financial risk management objectives and policies
The company is exposed to financial risks arising from its normal business activities. Company's policies on financial risk management are implemented by its director. The main risks and the companies approach to dealing with these risks is as follows:
Price risk
The price risk is the potential exposure of the company to the volatility in wholesale oil prices. The company manages this risk by negotiating a group supply agreement with fixed margins and closely monitoring the wholesale oil prices before placing purchase orders.
Credit risk
Credit risk is the potential exposure of the company to loss in the event of non-performance by a counterpart. The company is not exposed to credit risk.
Liquidity risk
Liquidity risk is the risk that insufficient working capital will be generated by the company's business activities and in this event suitable sources of funding may not be available. The company mitigates this risk by exercising effective credit management and negotiating favourable terms with its suppliers.
Cash flow risk
The company finances its operations from its reserves. Short term cash flow need is monitored on a daily and weekly basis to ensure commitments are met on a timely basis. Longer term cash flow risk is mitigated by strategically negotiating competitive interest rate at fixed margins.
Brexit and Covid 19
The impact of Brexit did not have any direct material effect on the company or its operations. All suppliers and customers of the company are U.K., based. Therefore, Brexit had no material direct impact on the business.
Covid 19 continued to be a concern for retail sector, as indeed all sectors of the economy. Whilst the uncertainty of the pandemic remains, the company will continue to monitor and adapt its procedures to mitigate the impact on its business.
To adapt to the challenging environment, since lockdown in March 2020, the company has successfully adapted the premises for social distancing and health and safety of its customers and staff members.
Key performance indicators ("KPIs")
The director uses financial and non-financial performance indicators to monitor and control performance of the company and to manage the risks. These indicators are regularly reviewed to ensure that they remain appropriate and relevant to monitor the challenges, complexities and improvements in the business. An analysis using KPIs for an understanding of the development, performance and position of the business has been prepared. Due to commercial sensitivity these are not disclosed in the accounts. In any event the directors are of the opinion that underlying financial statements would enable key financial KPI's to be evaluated. An indication of key performance indicators used by the directors are as follows:
- Gross profit margins of fuel and shop sales for each branch compared to expectations set by the director
- Fuel volume and shop sales monitored against the budgets
- Regular qualitative assessment reports prepared by external specialist are used to monitor the quality of the
service offered at each branch
This report was approved by the board of directors on 25 October 2023 and signed on behalf of the board by:
Mr V Yoganathan
Director
JP&S Servicess Limited
Director's report
Year ended 31 January 2023
The director presents his report and the financial statements of the company for the year ended 31 January 2023.
Incorporation
JP and S Servicess Limited is a company limited by shares, incorporated in England and Wales. Its registered office is 797, Harrow Road, Sudbury Town, Wembley HA0 2LP.
Director
The director who served the company during the year was as follows:
Mr V Yoganathan
Dividends
Details of dividends are set out in the notes to the accounts.
Political donations and expenditure
During the year the company has made the following political contributions:
£
Labour Party 3,750
_______
3,750
_______
Disclosure of information in the strategic report.
Directors are required to prepare "Strategic report" under section 414a of Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013. Under this law directors have prepared the strategic report for the company. The directors have chosen to present the business review, future development and the principal risk and uncertainties in the strategic report.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.
In preparing these financial statements, the director is required to:
- select suitable accounting policies and then apply them consistently;
- make judgments 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 25 October 2023 and signed on behalf of the board by:
Mr V Yoganathan
Director
JP&S Servicess Limited
Independent auditor's report to the members of
JP&S Servicess Limited
Year ended 31 January 2023
Opinion
We have audited the financial statements of JP&S Servicess Limited (the 'company') for the year ended 31 January 2023 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the company's affairs as at 31 January 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director 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 director is responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report. 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, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and the returns; or - certain disclosures of director's 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 director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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: Fraud and breaches of laws and regulations and ability to detect Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to the petroleum licenses, environment protection, food safety and safety at workplace, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006, direct and indirect taxes. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to financial reporting fraud and misappropriation of assets facilitated through the posting of fraudulent journal entries. Audit procedures performed by the engagement team included: - made enquiries with the directors to determine if there were any discussions involving actual frauds or alleged frauds, or non-compliance with laws and regulations. - performing inquiries of management to determine if they were aware of any actual frauds, alleged frauds or non-compliance with laws or regulations. - performing testing of journal entries using a risk-based criteria to determine if any unusual journal entries had been posted that would have had the impact of overstating turnover or concealing the misappropriation of cash at bank and in hand; and - obtaining third party confirmation of bank balances. - documenting and verifying all significant related party transaction. - reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non­compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting a material misstatement resulting from error, as fraud may involve deliberate concealment by, for example, forgery or Intentional misrepresentations, or through collusion. A further description of our responsibilities 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 auditor’s report.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mr R Patel (Senior Statutory Auditor)
For and on behalf of
King & King
Chartered Accountants and Statutory Auditors
65-67 Wembley Hill Road
Wembley
Middlesex
HA9 8DP
25 October 2023
JP&S Servicess Limited
Statement of income and retained earnings
Year ended 31 January 2023
2023 2022
Note £ £
Turnover 4 86,499,340 61,568,814
Cost of sales ( 76,105,069) ( 54,799,759)
_______ _______
Gross profit 10,394,271 6,769,055
Administrative expenses ( 5,262,908) ( 4,889,001)
Other operating income 5 198,799 230,316
_______ _______
Operating profit 6 5,330,162 2,110,370
Other interest receivable and similar income 9 3,228 5,157
Interest payable and similar expenses 10 ( 213,380) ( 123,474)
Profit before taxation 5,120,010 1,992,053
Tax on profit 11 ( 1,130,326) ( 517,230)
_______ _______
Profit for the financial year and total comprehensive income 3,989,684 1,474,823
_______ _______
Dividends declared and paid or payable during the year 12 ( 250,000) ( 300,000)
Retained earnings at the start of the year 4,913,571 3,738,748
_______ _______
Retained earnings at the end of the year 8,653,255 4,913,571
_______ _______
All the activities of the company are from continuing operations.
JP&S Servicess Limited
Statement of financial position
31 January 2023
2023 2022
Note £ £ £ £
Fixed assets
Intangible assets 13 901,428 1,186,614
Tangible assets 14 9,548,267 10,006,021
_______ _______
10,449,695 11,192,635
Current assets
Stocks 15 1,530,927 1,569,047
Debtors 16 1,562,862 948,301
Cash at bank and in hand 8,193,789 3,057,974
_______ _______
11,287,578 5,575,322
Creditors: amounts falling due
within one year 17 ( 8,678,110) ( 5,734,578)
_______ _______
Net current assets/(liabilities) 2,609,468 ( 159,256)
_______ _______
Total assets less current liabilities 13,059,163 11,033,379
Creditors: amounts falling due
after more than one year 18 ( 4,003,826) ( 5,728,812)
Provisions for liabilities 20 ( 401,982) ( 390,896)
_______ _______
Net assets 8,653,355 4,913,671
_______ _______
Capital and reserves
Called up share capital 24 100 100
Profit and loss account 25 8,653,255 4,913,571
_______ _______
Shareholders funds 8,653,355 4,913,671
_______ _______
These financial statements were approved by the board of directors and authorised for issue on 25 October 2023 , and are signed on behalf of the board by:
Mr V Yoganathan
Director
Company registration number: 05082587
JP&S Servicess Limited
Statement of cash flows
Year ended 31 January 2023
2023 2022
£ £
Cash flows from operating activities
Profit for the financial year 3,989,684 1,474,823
Adjustments for:
Depreciation of tangible assets 707,072 825,576
Amortisation of intangible assets 285,186 285,186
Government grant income - ( 37,174)
Other interest receivable and similar income ( 3,228) ( 5,157)
Interest payable and similar expenses 213,380 123,474
Gain/(loss) on disposal of tangible assets 24,046 ( 24,808)
Tax on profit 1,130,326 517,230
Accrued expenses/(income) 62,552 16,572
Changes in:
Stocks 38,120 ( 471,589)
Trade and other debtors ( 614,561) ( 27,205)
Trade and other creditors 1,490,397 1,946,263
_______ _______
Cash generated from operations 7,322,974 4,623,191
Interest paid ( 213,380) ( 123,474)
Interest received 3,228 5,157
Tax paid ( 682,673) ( 244,017)
_______ _______
Net cash from operating activities 6,430,149 4,260,857
_______ _______
Cash flows from investing activities
Purchase of tangible assets ( 273,364) ( 1,193,726)
Proceeds from sale of tangible assets - 350,000
_______ _______
Net cash used in investing activities ( 273,364) ( 843,726)
_______ _______
Cash flows from financing activities
Proceeds from borrowings ( 764,550) ( 443,207)
Government grant income - 37,174
Payment of finance lease liabilities ( 6,420) ( 25,158)
Equity dividends paid ( 250,000) ( 300,000)
_______ _______
Net cash used in financing activities ( 1,020,970) ( 731,191)
_______ _______
Net increase/(decrease) in cash and cash equivalents 5,135,815 2,685,940
Cash and cash equivalents at beginning of year 3,057,974 372,034
_______ _______
Cash and cash equivalents at end of year 8,193,789 3,057,974
_______ _______
JP&S Servicess Limited
Notes to the financial statements
Year ended 31 January 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 797 Harrow Road, Sudbury Town, Wembley, HA0 2LP.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions aremade concerning the future and, by their nature, will rarely equal the related actual outcome.No significant judgements,estimation or assumptions have had to be made by management in preparing these financial statements.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill - Over useful economic life of 7 years
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property - Not depreciated
Long leasehold property - 2% straight line
Short leasehold property - over 10 years
Fittings fixtures and equipment - 20 % reducing balance
Motor vehicles - 20 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Freehold Property
Land and buildings are not depreciated. This is a departure from FRS 102. Due to extensive maintenance, the residual life of the building is expected to be infinitive. Therefore the value of depreciation would be immaterial.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to sell. Cost includes all costs of purchase on a first in first out basis and other costs incurred in bringing the stocks to their present location and condition.
Hire purchase and finance leases
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Grants
Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Turnover
The whole of the turnover is derived from the United Kingdom. An analysis of turnover by business operation is given below:
2023 2022
£ £
Fuel sales 75,381,745 51,916,553
Shop sales 10,961,299 9,512,330
Car wash and vacuum 156,296 139,931
_______ _______
86,499,340 61,568,814
_______ _______
5. Other operating income
2023 2022
£ £
Rental income 110,311 112,174
Commission receivable 70,158 62,704
Government grant income - 37,174
Other operating income 18,330 18,264
_______ _______
198,799 230,316
_______ _______
6. Operating profit
Operating profit is stated after charging/(crediting):
2023 2022
£ £
Amortisation of intangible assets 285,186 285,186
Depreciation of tangible assets 707,072 825,576
(Gain)/loss on disposal of tangible assets 24,046 ( 24,808)
Impairment of trade debtors 27,444 21,130
Operating lease rentals 500,610 456,275
Fees payable for the audit of the financial statements 16,300 14,800
_______ _______
7. Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
2023 2022
Administrative staff 4 4
Director 1 1
Managers 11 11
Retail Assistance 77 80
_______ _______
93 96
_______ _______
The aggregate payroll costs incurred during the year were:
2023 2022
£ £
Wages and salaries 2,066,628 1,904,549
Social security costs 163,128 145,066
Other pension costs 31,770 159,099
_______ _______
2,261,526 2,208,714
_______ _______
8. Directors remuneration
The director's aggregate remuneration in respect of qualifying services was:
2023 2022
£ £
Remuneration 9,925 6,000
Company contributions to pension schemes in respect of qualifying services - 10,000
_______ _______
9,925 16,000
_______ _______
The number of directors who accrued benefits under company pension plans was as follows:
2023 2022
Number Number
Defined contribution plans 1 1
_______ _______
9. Other interest receivable and similar income
2023 2022
£ £
Other interest receivable and similar income 3,228 5,157
_______ _______
10. Interest payable and similar expenses
2023 2022
£ £
Bank loans and overdrafts 211,886 123,294
Other loans made to the company:
Finance leases and hire purchase contracts - 180
Other interest payable and similar expenses 1,494 -
_______ _______
213,380 123,474
_______ _______
11. Tax on profit
Major components of tax expense
2023 2022
£ £
Current tax:
UK current tax expense 1,119,240 344,168
_______ _______
Deferred tax:
Origination and reversal of timing differences 11,086 173,062
_______ _______
Tax on profit 1,130,326 517,230
_______ _______
Reconciliation of tax expense
The tax assessed on the profit for the year is higher than (2022: higher than) the standard rate of corporation tax in the UK of 19.00 % (2022: 19.00%).
2023 2022
£ £
Profit before taxation 5,120,010 1,992,053
_______ _______
Profit multiplied by rate of tax 972,802 378,490
Effect of expenses not deductible for tax purposes 89 861
Effect of capital allowances and depreciation 146,349 ( 35,183)
Deferred taxation 11,086 173,062
_______ _______
Tax on profit 1,130,326 517,230
_______ _______
12. Dividends
Equity dividends
2023 2022
£ £
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year) 250,000 300,000
_______ _______
13. Intangible assets
Goodwill Total
£ £
Cost
At 1 February 2022 and 31 January 2023 3,028,053 3,028,053
_______ _______
Amortisation
At 1 February 2022 1,841,439 1,841,439
Charge for the year 285,186 285,186
_______ _______
At 31 January 2023 2,126,625 2,126,625
_______ _______
Carrying amount
At 31 January 2023 901,428 901,428
_______ _______
At 31 January 2022 1,186,614 1,186,614
_______ _______
14. Tangible assets
Freehold property Long leasehold property Short leasehold property Fixtures, fittings and equipment Motor vehicles Total
£ £ £ £ £ £
Cost
At 1 February 2022 4,921,343 2,149,249 876,146 5,961,866 25,065 13,933,669
Additions 107,319 - 74,645 91,400 - 273,364
Disposals - - - ( 682,235) - ( 682,235)
_______ _______ _______ _______ _______ _______
At 31 January 2023 5,028,662 2,149,249 950,791 5,371,031 25,065 13,524,798
_______ _______ _______ _______ _______ _______
Depreciation
At 1 February 2022 - 501,845 216,543 3,197,028 12,232 3,927,648
Charge for the year - 42,985 95,079 566,441 2,567 707,072
Disposals - - - ( 658,189) - ( 658,189)
_______ _______ _______ _______ _______ _______
At 31 January 2023 - 544,830 311,622 3,105,280 14,799 3,976,531
_______ _______ _______ _______ _______ _______
Carrying amount
At 31 January 2023 5,028,662 1,604,419 639,169 2,265,751 10,266 9,548,267
_______ _______ _______ _______ _______ _______
At 31 January 2022 4,921,343 1,647,404 659,603 2,764,838 12,833 10,006,021
_______ _______ _______ _______ _______ _______
Obligations under finance leases
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Fixtures, fittings and equipment
£
At 31 January 2023 10,267
_______
At 31 January 2022 12,833
_______
15. Stocks
2023 2022
£ £
Stocks 1,530,927 1,569,047
_______ _______
16. Debtors
2023 2022
£ £
Trade debtors 663,901 490,609
Prepayments and accrued income 83,285 78,994
Other debtors 815,676 378,698
_______ _______
1,562,862 948,301
_______ _______
The debtors above include the following amounts falling due after more than one year:
2023 2022
£ £
Other debtors 28,697 28,698
_______ _______
The other debtors includes related party loans of £778,228 (2022: £350,000), as described in the "Related party transactions" note to the accounts.
17. Creditors: amounts falling due within one year
2023 2022
£ £
Bank loans and overdrafts 1,731,108 474,942
Trade creditors 5,044,677 3,940,576
Accruals and deferred income 247,762 185,210
Corporation tax 720,735 284,168
Social security and other taxes 616,852 272,896
Obligations under finance leases 320 6,740
Director loan accounts 135,916 431,646
Other creditors 180,740 138,400
_______ _______
8,678,110 5,734,578
_______ _______
18. Creditors: amounts falling due after more than one year
2023 2022
£ £
Bank loans and overdrafts 4,003,826 5,728,812
_______ _______
The bank loan is secured by a legal mortgage over the properties owned by the company, Mortgage Debentures over JP& S Servicess Limited, legal charge over a land owned by the director and his wife and a personal guarantee by the director and his wife. The bank loans are for the term of 5 and 3 years from drawdown. The interest on above loans is charged at an interest margin of 1.7% and 2.05% over bank base rate.
In addition, the company have a credit card facility of £50,000, secured as above.
19. Obligations under finance leases
Company lessee
The total future minimum lease payments under finance lease agreements are as follows:
2023 2022
£ £
Not later than 1 year 320 6,740
_______ _______
Present value of minimum lease payments 320 6,740
_______ _______
20. Provisions
Deferred tax (note 21) Total
£ £
At 1 February 2022 390,896 390,896
Additions 11,086 11,086
_______ _______
At 31 January 2023 401,982 401,982
_______ _______
21. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2023 2022
£ £
Included in provisions (note 20) 401,982 390,896
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2023 2022
£ £
Accelerated capital allowances 401,982 390,896
_______ _______
22. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 31,770 (2022: £ 159,099 ).
23. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2023 2022
£ £
Recognised in other operating income:
Government grants recognised directly in income - 37,174
_______ _______
24. Called up share capital
Issued, called up and fully paid
2023 2022
No £ No £
Ordinary shares shares of £ 1.00 each 100 100 100 100
_______ _______ _______ _______
Each "Ordinary Share" is entitled to full voting, dividend and capital distribution rights including distributions arising on winding up of the company.
25. Reserves
Company only had Profit and loss account reserve at year end. This reserve records retained earnings and accumulated losses.
26. Analysis of changes in net debt
At 1 February 2022 Cash flows At 31 January 2023
£ £ £
Cash and cash equivalents 3,057,974 5,135,815 8,193,789
Debt due within one year (913,328) (954,016) (1,867,344)
Debt due after one year (5,728,812) 1,724,986 (4,003,826)
_______ _______ _______
( 3,584,166) 5,906,785 2,322,619
_______ _______ _______
27. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year 516,853 462,153
Later than 1 year and not later than 5 years 9,638,188 388,663
Later than 5 years 5,776,833 5,989,000
_______ _______
15,931,874 6,839,816
_______ _______
28. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value Balance owed by/(owed to)
2023 2022 2023 2022
£ £ £ £
JP& S Investment Ltd - 350,000 350,000 350,000
Goldline Fuel Ltd 250,000 - 250,000 -
JP& S Pension Scheme 178,228 ( 231,368) 178,228 -
Directors Loan 295,730 67,482 ( 135,916) ( 431,646)
Rent paid to director Shareholders 110,000 90,000 - -
Rent paid to Company Pension scheme 155,167 137,800 - -
_______ _______ _______ _______
During the year the company had above loans with connected companies, director of the company and with the company pension fund. The loans to JP& S Investments Ltd and Goldline Fuel Ltd are interest free and repayable on demand. The loan made to JP& S Pension fund is for a term of 5 years from drawdown and at an interest of 2% above Bank of England base rate. The unsecured directors loan is interest free and repayable on demand.
29. Controlling party
Mr V Yoganathan controls the majority of the issued share capital of the company.