Registered number:
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
COMPANY INFORMATION
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JOLODA HYDRAROLL GROUP LIMITED
CONTENTS
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JOLODA HYDRAROLL GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
The directors present their group strategic report for the period ended 31st March 2023 (FY23).
The Directors are pleased with the performance of the business for the financial year ending 31st March 2023.
With a consolidated EBITDA of £6.9M (2022 £8.8m Group) on consolidated revenues of £45.4M (2022 £45.1m full year Group) the trading result represents another solid performance of the business. One constant feature of the last three financial years has been the requirement for management to adapt quickly to dramatically changing events. FY21 gave us the challenges of a global pandemic, FY22 gave us the resultant restrictions placed upon global supply chains and a dramatically changing cost base. FY23 gave us the challenges of rampant inflation and high energy costs, fuelled by the Russia/Ukraine conflict, and only recently have supply chain issues lessened as global demand for raw materials fell, and prices began to reduce at the latter stages of FY23. Our key challenge for FY23 was to consolidate recent growth and ensure our move to a new larger production facility was completed professionally and efficiently. This year was always about transition as we enhanced our manufacturing capabilities both in terms of quality, volume and efficiency. The investment in the new facility was crucial to our long term expansion plans. It has taken eighteen months to fully complete the move. Naturally the move to the larger facility has resulted in a correspondingly higher cost base. The manufacturing facility is now ready and nearly fully invested to take advantage of the opportunities in the expanding Automated Truck Loading Systems (ATLS) sector. Whilst margin was adversely impacted in FYs 22 and 23, all the primary goals were met, and modest growth has been achieved across the board. Energy costs also impacted heavily on the trading performance, and the company is seeking to invest in solar power to address both this and our CO2 reduction goals in FY24. The challenges of FY 23 continue into FY24; namely supply chain instability and the potential market slow down predicated by the Ukraine conflict and energy crisis. Given the global and sector reach of our business, we are hopeful that we can sustain the growth in the business. The business has enjoyed a strong start to FY24. The first quarter profit and revenues are on track and with record order-book and sales pipelines. The main barrier to achieving our ambitious budget are global market conditions and the resultant nervousness of some markets to commit to, and invest in capital projects.
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JOLODA HYDRAROLL GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
The group uses various financial instruments, these include loans, cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group's operations.
The existence of these financial instruments exposes the group to a number of financial risks. Interest rate risk The group finances its operations through a mixture of accumulated cash balances, earnings and borrowings. The group's exposure to interest rate fluctuations is limited as our long term loan notes and asset finance deals are on fixed rates, and overdrafts are only occasionally used. Credit risk The group's principal financial assets are cash and trade debtors. The credit risk associated with the cash is limited as the counterparties have high credit ratings assigned by international credit-rating agencies. The principal credit risk arises therefore from its trade debtors. In order to manage credit risk the directors set limits for customers based on a combination of payment history and third party credit references. Historically we have not suffered any major bad debt, but the management are still cautious whenever credit is extended to customers. Credit limits are reviewed by the group on a regular basis in conjunction with debt ageing and collection history. Foreign Currency Transaction Risk Exposure to foreign currencies are managed by entering into forward contract arrangements.
The key performance indicators of the group are consolidated turnover, gross margins, consolidated profit and consolidated stock balance. These indicators are used by group management to monitor and evaluate performance of the group.
To compliment the global market in Joloda products and services, the Directors plans are in advanced stages to increase revenues and profitability with further strategic initiatives in this financial year being advanced:
• In early FY23 we strengthened our presence in France with the acquisition of specialist automotive trailer unloading/loading division of Legras Industries. • The Directors continue to seek potential acquisitions that are closely allied to the core competencies of the group, and can be demonstrated to add shareholder value. We are currently at varying stages of negotiations with a limited pipeline of potential acquisitions. • The Directors continue to re-invest in the company to further advance organic growth and efficiencies. The Directors are excited about the many opportunities available for The Joloda Hydraroll Group.
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JOLODA HYDRAROLL GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
This is the third annual year after the SECR scheme came into force on 1st April 2019, but is the first since Joloda Group gained large company status. SECR requires large UK based undertakings to file energy and emissions data in their Directors’ Reports. For the first time Joloda Hydraroll Group come within the remit of the scheme due to company staff levels and turnover.
The SECR Assessment requires participants to: • Report the organisation’s energy consumption and carbon emissions in utilities use and personnel travel for the Financial Year. This is used to develop an ongoing Intensity Target, to show a measure of performance each year. • Provide a Company Statement showing recent progress with energy and environmental initiatives. Joloda Hydraroll Group is pleased to comply with this guidance and continue to prioritise energy and environmental issues throughout the company’s UK operation.
This section aims to address the responsibility of the Directors of the Company acting in good faith, to be promoting the success for the benefit of its members as its whole. The Directors and Senior management of Joloda Hydraroll Group Limited give careful consideration in discharging their duties.
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JOLODA HYDRAROLL GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
Decision making:
Decision making within the business is always taken with promoting the success of the business in mind from a Director and Senior Management level to all employees in the Company. Performance of the Company is reviewed internally by Directors, frequently through financial reporting and non financial metrics as well as corporate reviews taking place multiple times throughout the fiscal year. Budgeting from a 3 year level takes place to ensure the long term planning of the company is set and strategic direction taken, as well as short term annual forecasting in order to ensure targets are met. All of this is done in line with corporate management to ensure accordance with the group companies’ strategy and delivery of plans agreed by the Board. Employees: Employees are central to the long term success of any company and the same is true of Joloda Hydraroll Group Limited. We have a diverse skill base and range of experience across our sites and recognise that maintaining and growing this is key to the business’ future. The business has apprentice programs to ensure that a pipeline of development is always in existence, and also offers a variety of programs of training across all areas. In addition Joloda looks to recruit and retain high level graduates to augment and support the middle and senior management structure, and provide for succession. In addition, Joloda • Achieved lower-than-average employee turnover rates (compared to the national average) across all locations • Partnered with an occupational health consultancy to support our well-being practices • Every manager and supervisor have access to mental health awareness training • Offer a training matrix to track employees’ skills and training needs and have a ring-fenced budget for employee training and development • Supported a number of meaningful causes throughout the year in the UK, US and the Netherlands Suppliers and Customers: Creating and maintaining relationships with our supplier and customer base is key to the nature of our industry. The majority of our commercial arrangements with customers cover repeat long term business and this is reflected in how we manage our supply base – through long term relationships with experienced and skilled Sales and Procurement teams that foster and develop close relationships with our key businesses to ensure that we grow successfully together. Impact on community and environment: Impact on the environment is an important factor in all business decision making, especially in the manufacturing and service industries. Joloda Hydraroll Group and subsidiaries hold ISO 14001 2015 environmental management system accreditation, all aspects of environmental controls are managed through the EMS, including compliance obligations, legal requirements, objectives, operational planning and control. This is used in conjunction with internal, corporate and external BSI audits to ensure we adhere to environmental regulations. Community: Across the group we have a number of charities which we support, whose causes are close to our heart. We also support employees if they are involved in charitable activities and also sponsor local sports clubs to provide equipment and facilities. When required, we will engage and communicate effectively with the local community, as appropriate.
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JOLODA HYDRAROLL GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
Last year, Joloda pledged our alignment to four of the UN Sustainable Development Goals (SDGs), the international blueprint for a fairer, more sustainable world. The Sustainable Development Goals (SDGs) are a set of seventeen interlinked goals, guiding businesses, governments, civil society, and the general public to tackle the biggest issues facing modern society. This year, we added a fifth pledge, aligning to SDG3, to support the UN’s goal to ensure healthy lives and promote wellbeing.
We have selected the SDGs where we are positioned to have the most significant impact and will incorporate measurable targets into how our actions and initiatives contribute towards fulfilling the Goals. In 2018, The Intergovernmental Panel on Climate Change (IPCC) published a special report on the severe impact of a warming planet. The report stated that to prevent a climate catastrophe, global emissions must peak before 2030 and hit net-zero emissions by around 2050. Since then, political leaders, businesses and organisations around the world have set binding targets to attain netzero. In November 2022, world leaders, negotiators and ministers assembled for COP27 to address the growing impact of climate change, in a year were extreme weather events and natural disasters have already impacted thousands across the globe. Joloda recognises our responsibility to both protect our planet’s finite resources, whilst reducing our operational emissions. Joloda has already made significant progress to reduce our carbon footprint in 2022. We attained carbon-negative status for the second year in a row, by investing in global sustainability projects. We’re also pleased to see a significant 9% reduction in our gross emissions- largely due to a (174.1 tCO2e) decrease in our Scope 1 emissions. This is predominantly down to our transition from propane forklifts to diesel models, in addition to an increase in our hybrid company vehicles. We have committed to formalising our net-zero strategy by March 2024, delving into our broader operational emissions (Scope 3). This will set out a carbon reduction glide path for the business, with annual targets to achieve net-zero emissions. We’re also continuously looking at ways to reduce our carbon impact across the business- from switching to renewable energy, to further decarbonising our fleet.
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JOLODA HYDRAROLL GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
The table to the below outlines our total emissions for 2021 and 2022.
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JOLODA HYDRAROLL GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
This includes Scope 1 (our owned and leased company vehicles and onsite gas emissions), Scope 2 (purchased electricity and electric vehicles) and partial Scope 3 (employee business travel) emissions.
Joloda Europe has continued to procure 100% of its electricity from renewable sources, and we want to extend this to as many other sites as feasible. In the UK, we switched to a 100% renewable electricity provider at our new Liverpool Estuary Park site, our largest UK site. Our highest emitting energy source in the UK is at our Anglesey site, which uses gas oil. There are no mains on site, which makes it challenging to switch to renewable sources, however, we will explore the viability of switching over to renewable or low-carbon energy sources over the next year.
In 2022, we also recalculated our energy emissions for each of our sites in line with the UK’s mandatory Streamlined Energy and Carbon Reporting guidelines. Disappointingly, we have seen a slight increase in our emissions this year, as we returned to business as usual following the pandemic. Additionally, we have moved to a larger new site in Liverpool, which has increased our energy usage. We are also in the process of retiring our Garston site, which is still consuming electricity, however, this will be closing in 2023. In addition we have committed to Solar Energy at our new production facility.
This report was approved by the board on 28 September 2023 and signed on its behalf.
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JOLODA HYDRAROLL GROUP LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
The directors present their report and the financial statements for the period ended 31 March 2023.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the period, after taxation and minority interests, amounted to £3,448,929 (2022 - £5,607,036).
The directors recommend a dividend of £3m to be paid.
The directors who served during the period were:
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JOLODA HYDRAROLL GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
The R&D undertaken by Joloda makes it possible to find technical solutions to Mechanical and Electrical engineering of loading solutions. It reduces technological uncertainties and creates a unique solution for our customers.
A business review, principal risks and uncertainties, financial key performance indicators, future developments and engagement with suppliers, customers and others are disclosed in the Strategic Report.
Under section 487(2) of the Companies Act 2006, Langtons Professional Services Limited will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board on
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JOLODA HYDRAROLL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOLODA HYDRAROLL GROUP LIMITED
We have audited the financial statements of Joloda Hydraroll Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 31 March 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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.
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JOLODA HYDRAROLL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOLODA HYDRAROLL GROUP LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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JOLODA HYDRAROLL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOLODA HYDRAROLL GROUP LIMITED (CONTINUED)
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 Group 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:
The objectives of our audit, in respect to fraud, are: • to identify and assess the risks of material misstatement of the financial statements due to fraud; • to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and • to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. Our approach was as follows: • We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006), the relevant tax compliance regulations in the UK and the EU General Data Protection Regulation (GDPR). • We understood how the Company is complying with those frameworks by making enquiries of management. Through consideration of the results of our audit procedures we were able to either corroborate or provide contrary evidence which was then followed up. • Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved: enquiries of management; and journal entry testing, with a focus on manual consolidation journals and journals indicating large or unusual transactions based on our understanding of the business. • We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was susceptibility to fraud. We also considered performance targets and their propensity to influence efforts made by management to manage revenue and earnings. Where the risk was considered to be higher, including areas impacting key performance indicators or management remuneration, we performed audit procedures to address each identified fraud risk or other risk of material misstatement. These procedures included those on revenue recognition detailed above, the assessment of items identified by management as non-recurring and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.
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JOLODA HYDRAROLL GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOLODA HYDRAROLL GROUP LIMITED (CONTINUED)
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.
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.
for and on behalf of
Chartered Accountants
Statutory Auditor
11th Floor, The Plaza
100 Old Hall Street
L3 9QJ
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JOLODA HYDRAROLL GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
REGISTERED NUMBER: 12021217
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
REGISTERED NUMBER: 12021217
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 September 2023.
The notes on pages 25 to 48 form part of these financial statements.
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JOLODA HYDRAROLL GROUP LIMITED
REGISTERED NUMBER: 12021217
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 25 to 48 form part of these financial statements.
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JOLODA HYDRAROLL GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
Joloda International Group Limited is a private limited liability company, limited by shares registered in England and Wales within the United Kingdom. The registered office is 1 De Havilland Drive, Speke, Liverpool, L24 8RN and the company number is 12021217.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2015.
The group depends on its existing bank facilities to meet its day to day working capital requirements. Current forecasts indicate that the group expects to be able to operate within these facilities for whole of the foreseeable future. The Directors are not aware of any circumstances that may adversely affect the renewal of these facilities.
Accordingly, the directors believe it is appropriate to prepare the financial statements on the going concern basis.
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
2.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
2.Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Group's Statement of financial position when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
2.Accounting policies (continued)
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
2.Accounting policies (continued)
the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
The whole of the turnover is attributable to the principal activity of the business.
Analysis of turnover by country of destination:
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
12.Taxation (continued)
There were no factors that may affect future tax charges.
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
15.Tangible fixed assets (continued)
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
Unsecured fixed rate loan notes are repayable by four equal half yearly instalments commencing on 1 June 2026. Interest is charged at a fixed rate of 8% per annum.
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
Capital redemption reserve
Profit and loss account
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
The group pays into personal pension plans. The assets of the plans are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the company to the plans.
Contributions totalling £40,527 (2022 - £103,639) were payable to the fund at the reporting date and are included in creditors.
31.Other financial commitments
A subsidiary entity has given guarantees totalling £204,729 on behalf of clients.
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JOLODA HYDRAROLL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
The directors are the controlling party of the company by virtue of their combined shareholding in the company.
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