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Registered number: 11453831










JOLODA CONVEYOR SERVICES LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
COMPANY INFORMATION


Directors
M. Dematteis 
R. W. Birks 




Registered number
11453831



Registered office
1 De Havilland Drive
Speke

Liverpool

Merseyside

L24 8RN




Independent auditors
Langtons Professional Services Limited
Chartered Accountants & Statutory Auditors

The Plaza

100 Old Hall Street

Liverpool

L3 9QJ





 
JOLODA CONVEYOR SERVICES LIMITED
 

CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24


 
JOLODA CONVEYOR SERVICES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Introduction
 
The directors present their strategic report for the year ended 31st March 2023.

Business review
 
The Directors are pleased with the performance of the business for the financial year ending 31st March 2023.
With an EBITDA of £2.9m (2022 £3.8m) on revenues of £19.5M (2022 £19.4m) the trading result represents another good year for the business. 
One constant feature of the last three financial years has been the requirement for management to adapt quickly to dramatically changing events. 
Post-COVID, FY23 gave us the continuing challenges arising from the conflict in Ukraine, including sharply rising energy costs, and as a consequence rising interest rates designed by central governments to dampen household expenditure and to tackle high inflation arising from the conflict. All of which combined to put extreme pressures on domestic discretionary spending thereby impacting directly on volumes in our customer base all of whom serve the e-commerce industry. 
Despite this revenues remained strong as the company continues to be a key supplier of services to the parcels industry, helping to ensure our customers can serve their key objectives of professional and timely delivery targets.
The challenges of FY23 continue into FY24; namely the potential market slow down predicated by the Ukraine and energy crisis and high inflation, and the resultant pressures on household income
Going into FY24, whilst there are some signs of domestic pressures easing slightly, we foresee the next twelve months in the parcels industry as difficult, as evidenced by the failure of Tufnells early in FY24. 
We are fortunate to be operating efficiently and profitably; and that, coupled with a strong balance sheet that gives us the ability to react to critical constraints in a timely fashion. 
 
The Directors view the results of the Company for the twelve months ending March 2023 positively, especially given all the challenges brought about by the volatile economic and political situation.
These figures demonstrate the ongoing strength of the Company, and give confidence to its stakeholders. The company’s liquidity remained strong and no borrowings exist.

Page 1

 
JOLODA CONVEYOR SERVICES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Principal risks and uncertainties
 
The company's operations are exposed to a number of financial risks.  These are managed as follows:
Investment Risk:
In order to minimise exposure to a fall in the value of its investments, the company has a policy of keeping a
significant part of its reserves in cash or cash equivalents.  Any non cash investments are part of a diversified
portfolio designed to minimise risk exposure.
Credit Risk: 
The  company  has  implemented  policies  that  require  appropriate  credit  checks  on potential customers to be completed before sales are made.  The exposure to any individual counterparty is subject to a limit, which is reassessed regularly and managed pro actively to minimise exposure. The company experienced its first material bad debt that spanned FYs 23 and 24, but this was largely covered by a general provision and has not impacted the company operationally or otherwise.
Foreign Currency Transaction Risk:
Dealing almost exclusively in the United Kingdom, there are no direct Foreign Currency risks to the company.

Financial key performance indicators
 
The key performance indicators of the company are turnover, margin and profit. These three indicators are used by management to monitor and evaluate performance of the company.


This report was approved by the board on 28 September 2023 and signed on its behalf.






R. W. Birks
Director

Page 2

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 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 of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company'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 Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The principal activity of the company is the provision of reactive and maintenances services and sale of spare parts  to the distribution industry.

Results and dividends

The profit for the year, after taxation, amounted to £2,309,298 (2022 - £2,596,328).

Dividends amounting to £Nil (2022 - £2,500,000) were paid in the year. The directors do not recommend any further dividends for the year.

Directors

The directors who served during the year were:

M. Dematteis 
A. McAndrew (resigned 7 October 2022)
R. W. Birks 

Page 3

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Future developments

To compliment the 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:
• The directors are looking at complementary products to serve the industry and are contemplating the introduction of capital projects on behalf of customers.
• The Directors continue to re-invest in the company to further advance organic growth.
The Directors are excited about the many opportunities available for Joloda Conveyor Services.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsLangtons Professional Services Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 28 September 2023 and signed on its behalf.
 





R. W. Birks
Director

Page 4

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JOLODA CONVEYOR SERVICES LIMITED
 

Opinion


We have audited the financial statements of Joloda Conveyor Services Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 March 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 Auditors' 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 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.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JOLODA CONVEYOR SERVICES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have 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 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:


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 returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JOLODA CONVEYOR SERVICES LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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:

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 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.


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 Auditors' report.


Page 7

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JOLODA CONVEYOR SERVICES LIMITED (CONTINUED)


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 2006Our 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.





Stephen Talbot (Senior statutory auditor)
  
for and on behalf of
Langtons Professional Services Limited
 
Chartered Accountants
Statutory Auditors
  
The Plaza
100 Old Hall Street
Liverpool
L3 9QJ

28 September 2023
Page 8

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
£
£

  

Turnover
 4 
19,493,694
19,381,961

Cost of sales
  
(10,595,039)
(11,725,243)

Gross profit
  
8,898,655
7,656,718

Administrative expenses
  
(6,044,772)
(4,410,515)

Operating profit
 5 
2,853,883
3,246,203

Interest payable and similar expenses
 8 
(14,067)
(6,163)

Profit before tax
  
2,839,816
3,240,040

Tax on profit
 9 
(530,518)
(643,712)

Profit for the financial year
  
2,309,298
2,596,328

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 12 to 24 form part of these financial statements.

Page 9

 
JOLODA CONVEYOR SERVICES LIMITED
REGISTERED NUMBER: 11453831

STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
48,002
32,725

  
48,002
32,725

Current assets
  

Stocks
 12 
430,784
306,184

Debtors: amounts falling due within one year
 13 
2,545,661
1,327,501

Cash at bank and in hand
 14 
4,341,724
6,467,671

  
7,318,169
8,101,356

Creditors: amounts falling due within one year
 15 
(2,111,105)
(5,200,314)

Net current assets
  
 
 
5,207,064
 
 
2,901,042

Total assets less current liabilities
  
5,255,066
2,933,767

Provisions for liabilities
  

Deferred tax
 17 
(12,001)
-

  
 
 
(12,001)
 
 
-

Net assets
  
5,243,065
2,933,767


Capital and reserves
  

Called up share capital 
 18 
1
1

Profit and loss account
 19 
5,243,064
2,933,766

  
5,243,065
2,933,767


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 September 2023.




R. W. Birks
Director

The notes on pages 12 to 24 form part of these financial statements.

Page 10

 
JOLODA CONVEYOR SERVICES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2021
1
2,837,438
2,837,439


Comprehensive income for the year

Profit for the year
-
2,596,328
2,596,328


Contributions by and distributions to owners

Dividends: Equity capital
-
(2,500,000)
(2,500,000)


Total transactions with owners
-
(2,500,000)
(2,500,000)



At 1 April 2022
1
2,933,766
2,933,767


Comprehensive income for the year

Profit for the year
-
2,309,298
2,309,298


At 31 March 2023
1
5,243,064
5,243,065


The notes on pages 12 to 24 form part of these financial statements.

Page 11

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

The entity 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, Merseyside, L24  8RN  and the company number is 11453831.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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 management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The company has cash resources and has no requirement for external funding. The directors have a reasonable  expectation  that  the  company  has  adequate  resources  to  continue  in  operational existence for the foreseeable future. They continue to believe the going concern basis of accounting appropriate in preparing the annual financial statements.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 12

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 13

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.8
Tangible fixed assets (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:

Short-term leasehold property
-
33% straight line
Plant and machinery
-
15% to 33% straight line
Computer equipment
-
20% to 50% straight line

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.

 
2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.13

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company 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
Page 14

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.13
Financial instruments (continued)

Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Statement of financial position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include 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 Company'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 Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing
Page 15

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.13
Financial instruments (continued)

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 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 Company 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 Company 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 Company's contractual obligations expire or are discharged or cancelled.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The directors apply judgments in the valuation of stock and the useful economic lives of fixed assets.

Page 16

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

4.


Turnover

The whole of the turnover is attributable to the principal activity of the company.

All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
575,634
438,512


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
8,150
7,570

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 17

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

7.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
2,121,699
2,709,936

Social security costs
258,132
315,598

Cost of defined contribution scheme
108,422
137,124

2,488,253
3,162,658


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Engineers
38
43



Administration
6
6

44
49


8.


Interest payable and similar expenses

2023
2022
£
£


Other interest payable
14,067
6,163

14,067
6,163

Page 18

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
422,808
548,538

Adjustments in respect of previous periods
(20)
(254)


422,788
548,284


Group taxation relief
95,729
95,429


518,517
643,713


Total current tax
518,517
643,713

Deferred tax


Origination and reversal of timing differences
12,001
(1)

Total deferred tax
12,001
(1)


Taxation on profit on ordinary activities
530,518
643,712
Page 19

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,839,816
3,240,040


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
539,565
615,608

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
28,500

Fixed asset differences
(2,180)
(1,414)

Adjustments to tax charge in respect of prior periods
(20)
(254)

Non-taxable income
(10,010)
-

Deferred tax not recognised
372
1,272

Remeasurement of deferred tax for changes in tax rates
2,791
-

Total tax charge for the year
530,518
643,712


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


10.


Dividends

2023
2022
£
£

Ordinary


Dividends paid in the year
-
2,500,000

-
2,500,000

Page 20

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

11.


Tangible fixed assets





Plant and machinery

£



Cost or valuation


At 1 April 2022
93,218


Additions
38,265


Disposals
(47,438)



At 31 March 2023

84,045



Depreciation


At 1 April 2022
60,492


Charge for the year on owned assets
22,989


Disposals
(47,438)



At 31 March 2023

36,043



Net book value



At 31 March 2023
48,002



At 31 March 2022
32,725


12.


Stocks

2023
2022
£
£

Raw materials and consumables
430,784
306,184

430,784
306,184


Page 21

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

13.


Debtors

2023
2022
£
£

Due after more than one year



2023
2022
£
£

Due within one year

Trade debtors
2,282,767
1,237,694

Amounts owed by group undertakings
485
-

Other debtors
3,614
21,884

Prepayments and accrued income
258,795
67,923

2,545,661
1,327,501



14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
4,341,724
6,467,671

4,341,724
6,467,671



15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
493,448
620,862

Amounts owed to group undertakings
451,034
3,204,321

Corporation tax
436,874
554,700

Other taxation and social security
437,642
459,333

Other creditors
1,049
16,303

Accruals and deferred income
291,058
344,795

2,111,105
5,200,314


Page 22

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

16.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
4,341,724
6,467,671




Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.


17.


Deferred taxation




2023


£






Charged to profit or loss
(12,001)



At end of year
(12,001)

The deferred tax liability is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(12,001)
-

(12,001)
-


18.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1 (2022 - 1) Ordinary share of £1.00
1
1

The share carries standard voting rights, rights to distribution and return of capital as laid out the Articles of Association available from Companies House website.



19.


Reserves

Profit and loss account

The profit and loss account represents total accumulated profits to date, less dividends declared.

Page 23

 
JOLODA CONVEYOR SERVICES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

20.


Pension commitments

The Company pays into personal pension plans. The assets of the plans are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund.


21.


Related party transactions

The company has taken advantage of the exemption under paragraph 33.1A of FRS 102 and has not disclosed transactions with other wholly owned group companies.


22.


Controlling party

The immediate parent undertaking is Joloda Hydraroll Limited, a company registered in England and Wales. Joloda Hydraroll Limited prepares consolidated financial statements which include the results of this company.
The ultimate parent undertaking is Joloda Hydraroll Group Limited, a company registered in England and Wales. Joloda Hydraroll Group Limited also prepares consolidated financial statements which include the results of this company.
The consolidated financial statements can be obtained from Companies House, Cardiff.

 
Page 24