Company registration number 01246794 (England and Wales)
J & K ROSS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
J & K ROSS LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 9
J & K ROSS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
5
132,393
163,228
Current assets
Inventories
1,818,299
1,761,976
Trade and other receivables
6
1,876,039
1,963,678
Cash and cash equivalents
383,031
158,829
4,077,369
3,884,483
Current liabilities
7
(1,093,232)
(1,090,958)
Net current assets
2,984,137
2,793,525
Total assets less current liabilities
3,116,530
2,956,753
Non-current liabilities
8
(12,347)
(17,456)
Provisions for liabilities
(26,094)
(21,790)
Net assets
3,078,089
2,917,507
Equity
Called up share capital
20,000
20,000
Retained earnings
3,058,089
2,897,507
Total equity
3,078,089
2,917,507

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 21 November 2023 and are signed on its behalf by:
Mr C M Ross
Director
Company Registration No. 01246794
J & K ROSS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information

J & K Ross Limited is a private company limited by shares incorporated in England and Wales. The registered office is Safety House, Kerfoot Street, Warrington, Cheshire, WA2 8NU.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The Directors have concluded that it is appropriate to prepare the accounts on a going concern basis as the company remains profitable and has adequate resources.  The Directors have considered the current and future impact of truethe COVID-19 pandemic and have determined that this will not have a material negative impact on the business.

 

1.3
Revenue

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

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

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.5
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Plant and equipment
25% reducing balance
Motor vehicles
25% reducing balance

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

J & K ROSS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.6
Impairment of non-current assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

 

Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the 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.

J & K ROSS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
Basic financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

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

 

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

 

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

1.10
Equity instruments

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

1.11
Derivatives

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

 

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

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

J & K ROSS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

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

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.16
Foreign exchange

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

J & K ROSS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Employees

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

2023
2022
Number
Number
Total
35
36
4
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
69,251
Amortisation and impairment
At 1 April 2022 and 31 March 2023
69,251
Carrying amount
At 31 March 2023
-
0
At 31 March 2022
-
0
J & K ROSS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
5
Property, plant and equipment
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 April 2022
648,799
83,286
732,085
Additions
17,638
-
0
17,638
Disposals
-
0
(27,193)
(27,193)
At 31 March 2023
666,437
56,093
722,530
Depreciation and impairment
At 1 April 2022
525,688
43,169
568,857
Depreciation charged in the year
33,335
8,610
41,945
Eliminated in respect of disposals
-
0
(20,665)
(20,665)
At 31 March 2023
559,023
31,114
590,137
Carrying amount
At 31 March 2023
107,414
24,979
132,393
At 31 March 2022
123,111
40,117
163,228
6
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
1,672,316
1,808,945
Other receivables
147,937
97,058
Prepayments and accrued income
55,786
57,675
1,876,039
1,963,678
7
Current liabilities
2023
2022
£
£
Trade payables
900,476
868,665
Corporation tax
39,973
34,990
Other taxation and social security
108,244
115,905
Other payables
44,539
71,398
1,093,232
1,090,958

Creditors due within one year include amounts owed under finance lease and hire purchase obligations amounting to £5,109 (2022: £5,109) which are secured on the assets to which they are related.

J & K ROSS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
8
Non-current liabilities
2023
2022
£
£
Other payables
12,347
17,456

Creditors due after one year include amounts owed under finance lease and hire purchase obligations amounting to £12,347 (2022: £17,456) which are secured on the assets to which they are related.

9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Simon Worswick BA FCA
Statutory Auditor:
Smith & Goulding Limited
10
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
998,983
1,020,612
11
Related party transactions
Transactions with related parties

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

Mr C M Ross, a director of the company, has a controlling interest in Dale Techniche Limited. Goods are purchased from that company in the normal course of business and subject to normal terms of trading. During the year ended 31 March 2023, J & K Ross Limited purchased £557,508 (2022: £620,449) of goods from Dale Techniche Limited. The balance owing from Dale Techniche Limited as at 31 March 2023, in respect of overpaid ledger account balances, was £331,471 (2022: £445,093).

 

During the year, the company received management charges from Dale Techniche Limited amounting to £12,000 (2022: £12,000).

 

As at 1 April 2022, there was an amount outstanding from Dale Techniche Limited amounting to £39,558 by way of an intercompany loan which has been repaid during the year. During the year ended 31 March 2023, J & K Ross Limited received interest on this outstanding loan amounting to £1,253 (2022: £10,800).

J & K ROSS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
12
Directors' transactions

Loans have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Interest charged
Amounts repaid
Closing balance
£
£
£
£
Director's loan
4.80
26,000
1,248
(1,248)
26,000
26,000
1,248
(1,248)
26,000
13
Control

The company was under the control of the Directors throughout the current and previous year, by virtue of their shareholding.

2023-03-312022-04-01false24 November 2023CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedMrs J M RossMr C M RossMrs N J RossMrs J M HehirMrs C A AndersonMr N J Wilcockfalse012467942022-04-012023-03-31012467942023-03-31012467942022-03-3101246794core:PlantMachinery2023-03-3101246794core:MotorVehicles2023-03-3101246794core:PlantMachinery2022-03-3101246794core:MotorVehicles2022-03-3101246794core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3101246794core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3101246794core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3101246794core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3101246794core:CurrentFinancialInstruments2023-03-3101246794core:CurrentFinancialInstruments2022-03-3101246794core:ShareCapital2023-03-3101246794core:ShareCapital2022-03-3101246794core:RetainedEarningsAccumulatedLosses2023-03-3101246794core:RetainedEarningsAccumulatedLosses2022-03-3101246794bus:Director22022-04-012023-03-3101246794core:Goodwill2022-04-012023-03-3101246794core:PlantMachinery2022-04-012023-03-3101246794core:MotorVehicles2022-04-012023-03-31012467942021-04-012022-03-3101246794core:NetGoodwill2022-03-3101246794core:NetGoodwill2023-03-3101246794core:NetGoodwill2022-03-3101246794core:PlantMachinery2022-03-3101246794core:MotorVehicles2022-03-31012467942022-03-3101246794core:Non-currentFinancialInstruments2023-03-3101246794core:Non-currentFinancialInstruments2022-03-3101246794bus:PrivateLimitedCompanyLtd2022-04-012023-03-3101246794bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-3101246794bus:FRS1022022-04-012023-03-3101246794bus:Audited2022-04-012023-03-3101246794bus:Director12022-04-012023-03-3101246794bus:Director32022-04-012023-03-3101246794bus:Director42022-04-012023-03-3101246794bus:Director52022-04-012023-03-3101246794bus:Director62022-04-012023-03-3101246794bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP