REGISTERED NUMBER: 09449991 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31st March 2023 |
for |
J & J Group Engineering Limited |
REGISTERED NUMBER: 09449991 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31st March 2023 |
for |
J & J Group Engineering Limited |
J & J Group Engineering Limited (Registered number: 09449991) |
Contents of the Consolidated Financial Statements |
for the year ended 31st March 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
Consolidated Reconciliation of Equity | 25 |
Consolidated Reconciliation of Profit | 27 |
J & J Group Engineering Limited |
Company Information |
for the year ended 31st March 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Princes House |
Wright Street |
Hull |
East Yorkshire |
HU2 8HX |
J & J Group Engineering Limited (Registered number: 09449991) |
Group Strategic Report |
for the year ended 31st March 2023 |
The directors present their strategic report of the company and the group for the year ended 31st March 2023. |
REVIEW OF BUSINESS |
The key financial highlights are as follows: |
Year ended | Year ended |
31/3/23 | 31/3/22 |
£ | £ |
Turnover | 20,973,189 | 11,999,211 |
Turnover growth | 74.8% | - |
Gross profit | 3,475,852 | 1,938,018 |
Gross profit margin | 16.57% | 16.15% |
Net profit/(loss) before tax | 1,888,191 | 554,307 |
Net profit before tax margin | 9.00% | 4.42% |
This 12 month trading period saw us see progressive growth once again, hitting a record turnover of £21m and a growth of 75% on the previous year's turn over. |
This exceeded our initial forecast for the year and was not inline with our usual unforced, organic and steady growth. |
However, it came as a result of a mixture of the expected growth alongside an exceeded target growth campaign in the warehousing sector, a continued increase in buoyancy in the residential market and a huge and encouraging bounce back for the High Street of retail fit following the pandemic. An external and less expected contributor which has also been significant was the large rate of inflation that occurred in both materials and labour over this period which we believe constitutes to just under 30% growth on average in itself. |
The business has be able to grow with relative ease throughout this period and without compromise to quality and delivery, or team morale. |
Due to the larger size of projects we have taken on in various sectors, we found efficiencies in overhead and head count on the delivery teams required which has contributed to an increase in profitability. |
In terms of future works; we have a very positive, secured forecast ahead of us with visibility on contracts and pipeline heading into 2027 as well as an increasing service and maintenance portfolio. We have an expected forecast for growth again heading into the next 12 months and beyond. |
PRINCIPAL RISKS AND UNCERTAINTIES |
There is ongoing volatility on costs in both labour and materials in the market but we are hearing and hoping that this is set to plateaux, or even to descend. We are also seeing a shift where labour resource is starting to become more readily available. |
At last we are noticed a balance in the stockpiles of suppliers, something that put the industry at significant risk during the Pandemic and continued last year, which is all good news. |
We are finding that during this period of extreme inflation, which has been unprecedented in recent history, issues are arising with Long Term, Fixed price contracts. This is contributing not only to difficulties for ourselves but throughout the entire construction trade, some of which are becoming extreme and lead us to believe there will be a very difficult period to navigate through over the next 18 months for all levels of the supply chain. |
J & J Group Engineering Limited (Registered number: 09449991) |
Group Strategic Report |
for the year ended 31st March 2023 |
FUTURE DEVELOPMENTS |
Due to the above we are looking to be as prudent as ever moving forward with limiting turn overs with single sectors, clients and suppliers. |
Due diligence and an increased focus on commercial terms will be a priority more so than ever. |
This will help us in limiting exposures to any issues with cash flow restrictions, unexpected insolvencies and not being overly reliant on the success of any given market or client. |
We are also endeavouring to maintain, as we always have, good reserves and looking to ensure a set up with the best cash flow as we can achieve. |
A focus on employees and the environment we provide for them will also be a priority as we continue to look to maintain a high level of quality staff retention which is paramount to any business, but specifically in the life safety trade. |
ON BEHALF OF THE BOARD: |
J & J Group Engineering Limited (Registered number: 09449991) |
Report of the Directors |
for the year ended 31st March 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31st March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of |
DIVIDENDS |
Interim dividends per share were paid during the year as follows: |
A £1 | - | £430.43 | - 31st March 2023 |
B £1 | - | £442.16 | - 31st March 2023 |
The total distribution of dividends for the year ended 31st March 2023 will be £ 246,072 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st April 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
J & J Group Engineering Limited (Registered number: 09449991) |
Report of the Directors |
for the year ended 31st March 2023 |
AUDITORS |
The auditors, Sadofskys, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
J & J Group Engineering Limited |
Opinion |
We have audited the financial statements of J & J Group Engineering Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31st March 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
J & J Group Engineering Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
J & J Group Engineering Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the design and installation industry; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- agreeing financial statement disclosures to underlying supporting documentation; |
- reading the minutes of meetings of those charged with governance; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
J & J Group Engineering Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
Princes House |
Wright Street |
Hull |
East Yorkshire |
HU2 8HX |
J & J Group Engineering Limited (Registered number: 09449991) |
Consolidated |
Income Statement |
for the year ended 31st March 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 20,973,189 | 11,999,211 |
Cost of sales | 17,497,337 | 10,061,193 |
GROSS PROFIT | 3,475,852 | 1,938,018 |
Administrative expenses | 1,587,821 | 1,383,763 |
OPERATING PROFIT | 4 | 1,888,031 | 554,255 |
Interest receivable and similar income | 160 | 52 |
PROFIT BEFORE TAXATION | 1,888,191 | 554,307 |
Tax on profit | 5 | 374,369 | 160,613 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,513,822 | 393,694 |
J & J Group Engineering Limited (Registered number: 09449991) |
Consolidated |
Other Comprehensive Income |
for the year ended 31st March 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,513,822 | 393,694 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,513,822 |
393,694 |
Total comprehensive income attributable to: |
Owners of the parent | 1,513,822 | 393,694 |
J & J Group Engineering Limited (Registered number: 09449991) |
Consolidated Balance Sheet |
31st March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | 253,544 | 289,765 |
Tangible assets | 9 | 133,623 | 142,473 |
Investments | 10 | - | - |
387,167 | 432,238 |
CURRENT ASSETS |
Stocks | 11 | 125,060 | 581,455 |
Debtors | 12 | 3,554,096 | 2,577,896 |
Cash at bank and in hand | 1,773,462 | 831,098 |
5,452,618 | 3,990,449 |
CREDITORS |
Amounts falling due within one year | 13 | 3,097,871 | 2,947,850 |
NET CURRENT ASSETS | 2,354,747 | 1,042,599 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
2,741,914 |
1,474,837 |
PROVISIONS FOR LIABILITIES | 15 | - | 673 |
NET ASSETS | 2,741,914 | 1,474,164 |
CAPITAL AND RESERVES |
Called up share capital | 16 | 600 | 600 |
Retained earnings | 17 | 2,741,314 | 1,473,564 |
SHAREHOLDERS' FUNDS | 2,741,914 | 1,474,164 |
The financial statements were approved by the Board of Directors and authorised for issue on 20th November 2023 and were signed on its behalf by: |
A C West - Director |
D Bailey - Director |
J & J Group Engineering Limited (Registered number: 09449991) |
Company Balance Sheet |
31st March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 246,072 | 229,808 |
The financial statements were approved by the Board of Directors and authorised for issue on |
J & J Group Engineering Limited (Registered number: 09449991) |
Consolidated Statement of Changes in Equity |
for the year ended 31st March 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st April 2021 | 600 | 1,309,678 | 1,310,278 |
Changes in equity |
Dividends | - | (229,808 | ) | (229,808 | ) |
Total comprehensive income | - | 393,694 | 393,694 |
Balance at 31st March 2022 | 600 | 1,473,564 | 1,474,164 |
Changes in equity |
Dividends | - | (246,072 | ) | (246,072 | ) |
Total comprehensive income | - | 1,513,822 | 1,513,822 |
Balance at 31st March 2023 | 600 | 2,741,314 | 2,741,914 |
J & J Group Engineering Limited (Registered number: 09449991) |
Company Statement of Changes in Equity |
for the year ended 31st March 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st April 2021 | ( |
) |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st March 2022 | ( |
) |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st March 2023 | ( |
) |
J & J Group Engineering Limited (Registered number: 09449991) |
Consolidated Cash Flow Statement |
for the year ended 31st March 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,366,186 | 618,051 |
Tax paid | (160,424 | ) | (140,999 | ) |
Net cash from operating activities | 1,205,762 | 477,052 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (44,086 | ) | (43,878 | ) |
Sale of tangible fixed assets | 26,600 | 29,600 |
Interest received | 160 | 52 |
Net cash from investing activities | (17,326 | ) | (14,226 | ) |
Cash flows from financing activities |
Equity dividends paid | (246,072 | ) | (229,808 | ) |
Net cash from financing activities | (246,072 | ) | (229,808 | ) |
Increase in cash and cash equivalents | 942,364 | 233,018 |
Cash and cash equivalents at beginning of year |
2 |
831,098 |
598,080 |
Cash and cash equivalents at end of year | 2 | 1,773,462 | 831,098 |
J & J Group Engineering Limited (Registered number: 09449991) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 31st March 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 1,888,191 | 554,307 |
Depreciation charges | 74,330 | 277,399 |
Profit on disposal of fixed assets | (11,773 | ) | (3,811 | ) |
Finance income | (160 | ) | (52 | ) |
1,950,588 | 827,843 |
Decrease in stocks | 456,395 | 73,321 |
Increase in trade and other debtors | (976,200 | ) | (545,452 | ) |
(Decrease)/increase in trade and other creditors | (64,597 | ) | 262,339 |
Cash generated from operations | 1,366,186 | 618,051 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31st March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 1,773,462 | 831,098 |
Year ended 31st March 2022 |
31/3/22 | 1/4/21 |
£ | £ |
Cash and cash equivalents | 831,098 | 598,080 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/4/22 | Cash flow | At 31/3/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 831,098 | 942,364 | 1,773,462 |
831,098 | 942,364 | 1,773,462 |
Total | 831,098 | 942,364 | 1,773,462 |
J & J Group Engineering Limited (Registered number: 09449991) |
Notes to the Consolidated Financial Statements |
for the year ended 31st March 2023 |
1. | STATUTORY INFORMATION |
J & J Group Engineering Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Goodwill, being the price paid in the acquisition of a business in 2020, is being amortised over its useful life of 10 years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
J & J Group Engineering Limited (Registered number: 09449991) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st March 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,584,400 | 2,054,310 |
Social security costs | 24,257 | 15,055 |
2,608,657 | 2,069,365 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Site engineers | 48 | 42 |
Administration | 10 | 10 |
The average number of employees by undertakings that were proportionately consolidated during the year was 58 (2022 - 52 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | 194,600 | 137,432 |
J & J Group Engineering Limited (Registered number: 09449991) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st March 2023 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 584,221 | 308,983 |
Other operating leases | 37,048 | 33,868 |
Depreciation - owned assets | 38,109 | 19,987 |
Profit on disposal of fixed assets | (11,773 | ) | (3,811 | ) |
Goodwill amortisation | 36,221 | 36,221 |
Auditors' remuneration | 5,500 | - |
5. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 375,042 | 160,330 |
Deferred taxation | (673 | ) | 283 |
Tax on profit | 374,369 | 160,613 |
6. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
7. | DIVIDENDS |
2023 | 2022 |
£ | £ |
A shares of £1 each |
Interim | 121,382 | 112,160 |
B shares of £1 each |
Interim | 124,690 | 117,216 |
C shares of £1 each |
Interim | - | 432 |
246,072 | 229,808 |
J & J Group Engineering Limited (Registered number: 09449991) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st March 2023 |
8. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1st April 2022 |
and 31st March 2023 | (174,521 | ) |
AMORTISATION |
At 1st April 2022 | (464,286 | ) |
Amortisation for year | 36,221 |
At 31st March 2023 | (428,065 | ) |
NET BOOK VALUE |
At 31st March 2023 | 253,544 |
At 31st March 2022 | 289,765 |
9. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1st April 2022 | 110,437 | 18,752 | 51,234 |
Additions | 27,247 | - | 5,182 |
Disposals | - | - | - |
At 31st March 2023 | 137,684 | 18,752 | 56,416 |
DEPRECIATION |
At 1st April 2022 | 33,619 | 15,270 | 35,332 |
Charge for year | 22,087 | 348 | 3,479 |
Eliminated on disposal | - | - | - |
At 31st March 2023 | 55,706 | 15,618 | 38,811 |
NET BOOK VALUE |
At 31st March 2023 | 81,978 | 3,134 | 17,605 |
At 31st March 2022 | 76,818 | 3,482 | 15,902 |
J & J Group Engineering Limited (Registered number: 09449991) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st March 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1st April 2022 | 146,870 | 34,503 | 361,796 |
Additions | - | 11,657 | 44,086 |
Disposals | (53,111 | ) | - | (53,111 | ) |
At 31st March 2023 | 93,759 | 46,160 | 352,771 |
DEPRECIATION |
At 1st April 2022 | 110,229 | 24,873 | 219,323 |
Charge for year | 8,432 | 3,763 | 38,109 |
Eliminated on disposal | (38,284 | ) | - | (38,284 | ) |
At 31st March 2023 | 80,377 | 28,636 | 219,148 |
NET BOOK VALUE |
At 31st March 2023 | 13,382 | 17,524 | 133,623 |
At 31st March 2022 | 36,641 | 9,630 | 142,473 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st April 2022 |
and 31st March 2023 |
NET BOOK VALUE |
At 31st March 2023 |
At 31st March 2022 |
11. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 3,674 | 3,078 |
Work-in-progress | 121,386 | 578,377 |
125,060 | 581,455 |
J & J Group Engineering Limited (Registered number: 09449991) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st March 2023 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 3,286,712 | 2,355,697 |
Other debtors | 118,751 | 85,516 |
Prepayments | 148,633 | 136,683 |
3,554,096 | 2,577,896 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade creditors | 2,516,118 | 2,383,190 |
Amounts owed to group undertakings | - | - |
Taxation | 375,042 | 160,424 |
Social security and other taxes | 143,155 | 75,859 |
Other creditors | 16,164 | 285,849 |
Accrued expenses | 47,392 | 42,528 |
3,097,871 | 2,947,850 |
14. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 260,727 | - |
Between one and five years | 147,390 | - |
In more than five years | 594,635 | - |
1,002,752 | - |
15. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred taxation | - | 673 |
J & J Group Engineering Limited (Registered number: 09449991) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 31st March 2023 |
15. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1st April 2022 | 673 |
Credit to Income Statement during year | (673 | ) |
Balance at 31st March 2023 | - |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
A | £1 |
B | £1 |
C | £1 |
600 | 600 |
17. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1st April 2022 | 1,473,564 |
Profit for the year | 1,513,822 |
Dividends | (246,072 | ) |
At 31st March 2023 | 2,741,314 |
J & J Group Engineering Limited (Registered number: 09449991) |
Consolidated Reconciliation of Equity |
1st April 2021 |
(Date of Transition to FRS 102) |
Effect of |
UK | transition |
GAAP | to FRS 102 | FRS 102 |
£ | £ | £ |
FIXED ASSETS |
Intangible assets | 325,985 | - | 325,985 |
Tangible assets | 144,371 | - | 144,371 |
470,356 | - | 470,356 |
CURRENT ASSETS |
Stocks | 654,776 | - | 654,776 |
Debtors | 849,475 | - | 849,475 |
Cash at bank and in hand | 598,080 | - | 598,080 |
2,102,331 | - | 2,102,331 |
CREDITORS |
Amounts falling due within one year | (1,483,211 | ) | - | (1,483,211 | ) |
NET CURRENT ASSETS | 619,120 | - | 619,120 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,089,476 |
- |
1,089,476 |
PROVISIONS FOR LIABILITIES | (390 | ) | - | (390 | ) |
NET ASSETS | 1,089,086 | - | 1,089,086 |
CAPITAL AND RESERVES |
Called up share capital | 600 | - | 600 |
Retained earnings | 1,088,486 | - | 1,088,486 |
SHAREHOLDERS' FUNDS | 1,089,086 | - | 1,089,086 |
1,089,086 | - | 1,089,086 |
J & J Group Engineering Limited (Registered number: 09449991) |
Consolidated Reconciliation of Equity - continued |
31st March 2022 |
Effect of |
UK | transition |
GAAP | to FRS 102 | FRS 102 |
£ | £ | £ |
FIXED ASSETS |
Intangible assets | 325,985 | (36,220 | ) | 289,765 |
Tangible assets | 144,371 | (1,898 | ) | 142,473 |
470,356 | (38,118 | ) | 432,238 |
CURRENT ASSETS |
Stocks | 654,776 | (73,321 | ) | 581,455 |
Debtors | 1,230,672 | 1,347,224 | 2,577,896 |
Cash at bank and in hand | 598,080 | 233,018 | 831,098 |
2,483,528 | 1,506,921 | 3,990,449 |
CREDITORS |
Amounts falling due within one year | (1,864,408 | ) | (1,083,442 | ) | (2,947,850 | ) |
NET CURRENT ASSETS | 619,120 | 423,479 | 1,042,599 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,089,476 |
385,361 |
1,474,837 |
PROVISIONS FOR LIABILITIES | (390 | ) | (283 | ) | (673 | ) |
NET ASSETS | 1,089,086 | 385,078 | 1,474,164 |
CAPITAL AND RESERVES |
Called up share capital | 600 | - | 600 |
Retained earnings | 1,088,486 | 385,078 | 1,473,564 |
SHAREHOLDERS' FUNDS | 1,089,086 | 385,078 | 1,474,164 |
1,089,086 | 385,078 | 1,474,164 |
J & J Group Engineering Limited (Registered number: 09449991) |
Consolidated Reconciliation of Profit |
for the year ended 31st March 2022 |
Effect of |
UK | transition |
GAAP | to FRS 102 | FRS 102 |
£ | £ | £ |
TURNOVER | 8,988,328 | 3,010,883 | 11,999,211 |
Cost of sales | (7,436,313 | ) | (2,624,880 | ) | (10,061,193 | ) |
GROSS PROFIT | 1,552,015 | 386,003 | 1,938,018 |
Administrative expenses | (1,031,529 | ) | (352,234 | ) | (1,383,763 | ) |
Other operating income | 194,809 | (194,809 | ) | - |
OPERATING PROFIT | 715,295 | (161,040 | ) | 554,255 |
Income from shares in group undertakings | 818,260 | (818,260 | ) | - |
Interest receivable and similar income | 860 | (808 | ) | 52 |
Interest payable and similar expenses | (171 | ) | 171 | - |
PROFIT BEFORE TAXATION | 1,534,244 | (979,937 | ) | 554,307 |
Tax on profit | (136,576 | ) | (24,037 | ) | (160,613 | ) |
PROFIT FOR THE FINANCIAL YEAR | 1,397,668 | (1,003,974 | ) | 393,694 |
Profit attributable to: |
Owners of the parent | 393,694 |