Company registration number 00554789 (England and Wales)
J R ADAMS (NEWCASTLE) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
J R ADAMS (NEWCASTLE) LIMITED
COMPANY INFORMATION
Directors
Mr JR Adams
Mrs BM Adams
Mr CM Adams
Ms JC Adams
Mrs LS Adams
Company number
00554789
Registered office
Hannington Works
Longrigg
Swalwell
Newcastle upon Tyne
Tyne and Wear
NE16 3AS
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
J R ADAMS (NEWCASTLE) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 20
J R ADAMS (NEWCASTLE) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -
The directors present the strategic report for the year ended 31 October 2023.
Review of the business
2023 has been another good year although there has been a decrease in demand for transport services towards the end of the year. This is expected to continue until economic conditions start to improve. Reduction in construction activities including the cancellation of HS2 is likely to be the biggest contributor to this drop in demand. Diesel prices are still volatile although the situation has improved slightly since last year and this has been a large factor in the improvement of gross profit. Demand for storage services is rising steadily and we expect this to reduce the impact that the decrease in transport services will have. It is expected that 2024 will be a challenging year due to an uncertain economic environment.
Principal risks and uncertainties
Our principal risks and uncertainties are:
The volatility of the oil price market and our ability to pass on any cost pressures to customers
The risk of increases in borrowing costs due to interest rate rises.
The impact of the wars in Ukraine and the Middle East to our customers.
Key performance indicators
Revenues decreased to £8.94m from £8.96m in the previous year.
Profit for the financial year remained at £1m this year.
New vehicles costing £375k have been added to the fleet.
Mr JR Adams
Director
14 February 2024
J R ADAMS (NEWCASTLE) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 October 2023.
Principal activities
The principal activity of the company continued to be that of haulage and managed storage.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr JR Adams
Mrs BM Adams
Mr CM Adams
Ms JC Adams
Mrs LS Adams
Auditor
The auditor, Robson Laidler Accountants Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual 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 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 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 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
J R ADAMS (NEWCASTLE) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
On behalf of the board
Mr JR Adams
Director
14 February 2024
J R ADAMS (NEWCASTLE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J R ADAMS (NEWCASTLE) LIMITED
- 4 -
Opinion
We have audited the financial statements of J R Adams (Newcastle) Limited (the 'company') for the year ended 31 October 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 company's affairs as at 31 October 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
J R ADAMS (NEWCASTLE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J R ADAMS (NEWCASTLE) LIMITED
- 5 -
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 and 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements .
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant. Manual journal entries are scrutinised by data analytics software used as part of the audit.
The laws and regulations which are considered to be significant to the entity relate to health and safety. Discussions are held with management to determine whether any breaches have occurred as well as legal expenditure being scrutinised for any evidence on non-compliance.
The audit was considered capable of identifying irregularities only to the extent of the substantive testing performed and from discussions with management.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
J R ADAMS (NEWCASTLE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J R ADAMS (NEWCASTLE) LIMITED
- 6 -
Michael T Moran BA FCA
Senior Statutory Auditor
For and on behalf of Robson Laidler Accountants Limited
26 February 2024
Accountants
Statutory Auditor
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
J R ADAMS (NEWCASTLE) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
8,935,675
8,957,796
Cost of sales
(6,282,047)
(6,442,221)
Gross profit
2,653,628
2,515,575
Administrative expenses
(1,860,375)
(1,700,947)
Other operating income
279,932
267,735
Operating profit
1,073,185
1,082,363
Interest receivable and similar income
5,635
Interest payable and similar expenses
(51,207)
(42,055)
Profit before taxation
1,027,613
1,040,308
Tax on profit
6
(272,888)
(267,019)
Profit for the financial year
754,725
773,289
The profit and loss account has been prepared on the basis that all operations are continuing operations.
J R ADAMS (NEWCASTLE) LIMITED
BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
3,437,317
3,358,462
Current assets
Stocks
9
28,653
30,131
Debtors
10
1,912,447
1,960,865
Cash at bank and in hand
1,377,122
1,123,895
3,318,222
3,114,891
Creditors: amounts falling due within one year
11
(1,703,374)
(1,421,882)
Net current assets
1,614,848
1,693,009
Total assets less current liabilities
5,052,165
5,051,471
Creditors: amounts falling due after more than one year
12
(163,496)
(943,940)
Provisions for liabilities
15
(378,567)
(348,154)
Net assets
4,510,102
3,759,377
Capital and reserves
Called up share capital
17
650
650
Capital redemption reserve
150
150
Profit and loss reserves
18
4,509,302
3,758,577
Total equity
4,510,102
3,759,377
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 14 February 2024 and are signed on its behalf by:
Mr JR Adams
Mr CM Adams
Director
Director
Company registration number 00554789 (England and Wales)
J R ADAMS (NEWCASTLE) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2021
800
6,140,788
6,141,588
Year ended 31 October 2022:
Profit and total comprehensive income
-
-
773,289
773,289
Dividends
7
-
-
(2,365,500)
(2,365,500)
Own shares acquired
-
-
(790,000)
(790,000)
Redemption of shares
17
150
150
Other movements
(150)
-
-
(150)
Balance at 31 October 2022
650
150
3,758,577
3,759,377
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
754,725
754,725
Dividends
7
-
-
(4,000)
(4,000)
Balance at 31 October 2023
650
150
4,509,302
4,510,102
J R ADAMS (NEWCASTLE) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
1,860,166
3,825,698
Interest paid
(51,207)
(42,055)
Income taxes paid
(164,980)
(199,423)
Net cash inflow from operating activities
1,643,979
3,584,220
Investing activities
Purchase of tangible fixed assets
(621,373)
(449,066)
Proceeds from disposal of tangible fixed assets
17,000
14,500
Repayment of loans
768
13,157
Interest received
5,635
Net cash used in investing activities
(597,970)
(421,409)
Financing activities
Purchase of treasury shares
(790,000)
Repayment of bank loans
(929,583)
(56,333)
Payment of finance leases obligations
140,801
(229,031)
Dividends paid
(4,000)
(2,365,500)
Net cash used in financing activities
(792,782)
(3,440,864)
Net increase/(decrease) in cash and cash equivalents
253,227
(278,053)
Cash and cash equivalents at beginning of year
1,123,895
1,401,948
Cash and cash equivalents at end of year
1,377,122
1,123,895
J R ADAMS (NEWCASTLE) LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
1
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 main areas where such judgements and estimates are made are in respect of depreciation policy and the estimated useful lives of the company's assets over which these assets are depreciated.
2
Accounting policies
Company information
J R Adams (Newcastle) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hannington Works, Longrigg, Swalwell, Newcastle upon Tyne, Tyne and Wear, NE16 3AS.
2.1
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
2.2
Turnover
Turnover on haulage income is recognised when the haulage service is provided.
Revenue and profits on building work which qualify as long term contracts are recognised as the right to consideration is obtained through performance of work under the contract. Any unbilled work at a period end is recognised as turnover and in debtors.
Revenue and profits from building work on engagement of short term duration are recognised on the completion of the relevant work. The cost on any unfinished work is included within work in progress, less a provision for any loss anticipated on the contract.
Rents and other income is recognised on an accruals basis.
2.3
Tangible fixed assets
Tangible fixed assets 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:
Freehold land and buildings
2% straight line
Plant and equipment
15% reducing balance basis
Fixtures and fittings
15%-33% various bases
Motor vehicles
25% reducing balance basis
J R ADAMS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
2
Accounting policies
(Continued)
- 12 -
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.
2.4
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
2.5
Stocks
Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Cost comprises the purchase price of goods and other directly attributable costs.
Net realisable value is the estimated selling price reduced by all costs of completion, marketing, selling and distribution.
2.6
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.
2.7
Financial instruments
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
J R ADAMS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
2
Accounting policies
(Continued)
- 13 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
2.8
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 profit and loss account 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.
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 profit and loss account, 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.
2.9
Retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.
J R ADAMS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
2
Accounting policies
(Continued)
- 14 -
2.10
Leases
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimates useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is shorter.
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Haulage and ancillary services
8,661,532
8,718,641
Testing and ATF income
274,143
239,155
8,935,675
8,957,796
2023
2022
£
£
Other revenue
Interest income
5,635
-
All sales were within the United Kingdom.
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administration
10
13
Drivers
50
44
Total
60
57
J R ADAMS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
4
Employees
(Continued)
- 15 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,202,137
3,098,109
Social security costs
332,760
329,899
Pension costs
113,980
95,972
3,648,877
3,523,980
5
Directors' remuneration and dividends
2023
2022
£
£
Remuneration paid to directors
686,042
614,024
Dividends paid to directors
4,000
65,500
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2022 - 5).
Emoluments paid to the highest paid director in the year amounted to £223,821 (2022: £195,297)
6
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
242,475
164,950
Deferred tax
Origination and reversal of timing differences
30,413
102,069
Total tax charge
272,888
267,019
J R ADAMS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
6
Taxation
(Continued)
- 16 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
1,027,613
1,040,308
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
256,903
197,659
Tax effect of expenses that are not deductible in determining taxable profit
5,961
3,553
Permanent capital allowances in excess of depreciation
5,117
(36,261)
Tax at marginal rate
(25,506)
Deferred tax
30,413
102,068
Taxation charge for the year
272,888
267,019
7
Dividends
2023
2022
£
£
Interim paid
4,000
2,365,500
8
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2022
2,107,583
471,212
298,583
5,550,629
8,428,007
Additions
204,956
36,556
3,961
375,900
621,373
Disposals
(265,437)
(265,437)
At 31 October 2023
2,312,539
507,768
302,544
5,661,092
8,783,943
Depreciation and impairment
At 1 November 2022
635,934
304,794
232,152
3,896,665
5,069,545
Depreciation charged in the year
45,677
23,905
11,910
442,231
523,723
Eliminated in respect of disposals
(246,642)
(246,642)
At 31 October 2023
681,611
328,699
244,062
4,092,254
5,346,626
Carrying amount
At 31 October 2023
1,630,928
179,069
58,482
1,568,838
3,437,317
At 31 October 2022
1,471,649
166,418
66,431
1,653,964
3,358,462
J R ADAMS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
8
Tangible fixed assets
(Continued)
- 17 -
9
Stocks
2023
2022
£
£
Stocks
28,653
30,131
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,762,442
1,826,192
Other debtors
12,413
11,667
Prepayments and accrued income
137,592
123,006
1,912,447
1,960,865
11
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
13
56,333
Obligations under finance leases
14
163,328
115,333
Trade creditors
535,712
389,303
Corporation tax
242,475
164,980
Other taxation and social security
308,562
282,198
Other creditors
133,763
Accruals and deferred income
319,534
413,735
1,703,374
1,421,882
12
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
13
873,250
Obligations under finance leases
14
163,496
70,690
163,496
943,940
J R ADAMS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 18 -
13
Loans and overdrafts
2023
2022
£
£
Bank loans
929,583
Payable within one year
56,333
Payable after one year
873,250
The long-term loans are secured by fixed charges over land and buildings as well as floating charges over all the property or undertaking of the company.
14
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
163,328
115,333
In two to five years
163,496
70,690
326,824
186,023
Hire purchase liabilities are secured on the assets concerned.
15
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
16
378,567
348,154
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
378,567
348,154
J R ADAMS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
16
Deferred taxation
(Continued)
- 19 -
2023
Movements in the year:
£
Liability at 1 November 2022
348,154
Charge to profit or loss
30,413
Liability at 31 October 2023
378,567
17
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
675
675
525
525
Ordinary A shares of £1 each
125
125
125
125
800
800
650
650
18
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
3,758,577
6,140,788
Profit for the year
754,725
773,289
Dividends declared and paid in the year
(4,000)
(2,365,500)
Own shares acquired
(790,000)
At the end of the year
4,509,302
3,758,577
19
Directors' transactions
Dividends totalling £4,000 (2022 - £65,500) were paid in the year in respect of shares held by the company's directors.
J R ADAMS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 20 -
20
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
754,725
773,289
Adjustments for:
Taxation charged
272,888
267,019
Finance costs
51,207
42,055
Investment income
(5,635)
Loss/(gain) on disposal of tangible fixed assets
1,795
(2,006)
Depreciation and impairment of tangible fixed assets
523,723
503,710
Movements in working capital:
Decrease/(increase) in stocks
1,478
(1,774)
Decrease in debtors
47,650
2,513,162
Increase/(decrease) in creditors
212,335
(269,757)
Cash generated from operations
1,860,166
3,825,698
21
Analysis of changes in net funds
1 November 2022
Cash flows
31 October 2023
£
£
£
Cash at bank and in hand
1,123,895
253,227
1,377,122
Borrowings excluding overdrafts
(929,583)
929,583
-
Obligations under finance leases
(186,023)
(140,801)
(326,824)
8,289
1,042,009
1,050,298
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