Company Registration No. SC047678 (Scotland)
JACOBS & TURNER LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023
JACOBS & TURNER LIMITED
COMPANY INFORMATION
Directors
Afzal Khushi
Akmal Khushi
Usman Khushi
Secretary
Akmal Khushi
Company number
SC047678
Registered office
Vermont House
149 Vermont Street
Kinning Park
GLASGOW
G41 1LU
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
Bankers
Lloyds Bank plc
110 St Vincent Street
GLASGOW
G2 5ER
Clydesdale Bank plc
30 St Vincent Place
GLASGOW
G1 2HL
JACOBS & TURNER LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 36
JACOBS & TURNER LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 2 JULY 2023
- 1 -

The directors present the strategic report for the period ended 2 July 2023.

Principal activities, review of business and future developments

The group and company's principal activities are the design, wholesaling and retailing of outdoor clothing and related goods.

 

The financial year ended 2 July 2023 saw high levels of inflation, interest rates increasing and a strong USD position in the 2nd quarter of the year. As we adapt to the evolving landscape, our resilience and strategic financial management remain central to overcoming challenges and driving sustained growth. To facilitate this there is a focus on international expansion with discussions taking place across several key strategic overseas regions to expand the reach of the brand. One of these opportunities is the expansion into the Canadian retail market which commenced towards the end of the year, securing a warehouse and 3 retail premises in the Ontario province.

 

The main key performance indicators assessed are in respect of sales, gross profit, and profit before tax. Group turnover has increased by 9% to £127.4m (2022: £117.1m), which the directors are pleased to report is another new record high for the group, comfortably exceeding the pre-covid levels. The increased turnover is driven primarily by strong retail sales as most of our stores were open to trade throughout the full period. Our web sales also continued to perform well, showing strong underlying growth in our E-commerce business.

 

The gross margin has remained relatively stable at 30.9% (2022: 33.3%). The directors are pleased to report a pre-tax profit of £9.7m (2022: £10.5m). After profits and dividends, net assets were £58.0m (2022: £58.8m). The directors consider these results to be a testament to the continued demand for the Trespass product, which is well positioned within the marketplace.

 

In addition to our financial performance, the directors remain steadfast in their commitment to enhancing the sustainability of our group's operations and driving the decarbonization agenda in the UK.

 

Whilst the emissions figures for the business have increased this year from a combination of the introduction of additional Scope 3 sources (associated with the business but not directly controllable) coupled with the increased emission conversion factors. More detail is contained in the energy and carbon reporting on page 5.

 

The group continues to focus on proactive measures to reduce emissions, such as optimizing heating and lighting controls, enhancing premises insulation, and feasibility works on renewable technologies.

 

Sustainability is deeply ingrained in our product offerings, exemplified by the DLX Eco range crafted from recycled materials. Furthermore, we are actively engaging with every facet of our supply chain to ensure responsible sourcing practices for our garments.

Principal risks and uncertainties

In the outdoor clothing industry, there are many factors which can affect performance including:

 

Manufacturing risks: these include upward pressure on material prices, inflation in foreign labour markets and the reliability of foreign factories and suppliers. The group manages these risks through careful selection of its suppliers and negotiation of order quantities and prices.

 

Foreign currency risks: the group is exposed in its trading operations to the risk of changes in foreign currency exchange rates. It uses forward contracts to help mitigate the impact of fluctuations on its foreign currency purchases. The main foreign currencies in which the group operates are the US Dollar and the Euro.

 

Credit risks: the group's main credit risk is attributable to its trade debtors. The group maintains a strong relationship with each of its key customers and has established credit control parameters. Appropriate credit terms are agreed with all customers, and these are closely managed. The group ‘s exposure to credit risk is spread over many customers.

JACOBS & TURNER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
- 2 -
Principal risks and uncertainties (continued)

Shipping risks: the group imports its goods from East Asia and is exposed to geopolitical threats to key shipping routes, an increase in shipping costs and potential delays in the shipment of goods. The group is managing this risk through regular collaboration with its suppliers, as well as looking at dual sourcing in other parts of the globe to help manage the risk of the increased transport costs.

 

Brexit risks: the group exports its goods to EU countries and is exposed in its trading operations to the effects of the UK leaving the EEC. An increased administration burden and an increase in duties having to be paid is impacting the profitability of Europe. The company continues to mitigate these but will be required to facilitate the increased documentation necessary to meet customs requirements to ensure the group's EU customers receive delivery of orders without undue delay. A key focus group has been put in place, to ensure that the risks are managed and that supplies get through to our customers and stores in Europe.

 

Inflation risks: the group is aware of the impact and the effect from inflation on its cost base. A cost optimisation programme has been started that focuses on driving out non-value-added activities and looks at achieving potential cost savings, to help partially offset the impact of inflation. The directors feel that the Trespass product with its emphasis on "exceptional value and quality” will be well placed, when consumer's buying patterns and behaviours change, which will partially help offset the impact on the cost base from inflation.

 

Global Security: the impact of global security will present risks and opportunities, which the company will have to manage and attempt to mitigate.

 

The directors continually review and identify the key business risks endeavouring to manage them and minimise business exposure.

Section 172 statement

Section 172(1) of the Companies Act 2006 provides that a director of a group must act in a way that he considers, in good faith, would be most likely to promote the success of the group for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to various other stakeholder interests – below are the six key factors:

 

 

Shareholders

Jacobs & Turner Ltd is an owner-managed business.

 

Operational and finance meetings are held regularly with directors and senior managers where we engage and exchange views. These meetings provide a basis for well-informed decision making.

 

Customers

Our customers are our lifeblood whom we value highly. Service to our customers is of prime importance, and we always seek feedback on how we are performing. We have regular meetings with our customers.

 

Staff

Our people provide the external services to our customers and support each other in that common goal. We are passionate about nurturing a highly motivated, well-trained, team-orientated workforce.

 

Health & safety is of paramount importance in our business.

 

Suppliers

We fully support the collaboration with our suppliers as it reduces the risk in our supply chain and strengthens the platform from which we provide a service to our customers.

 

We also interact with our suppliers through letters of credit, agreements and purchase orders.

JACOBS & TURNER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
- 3 -

On behalf of the board

Afzal Khushi
Director
28 March 2024
JACOBS & TURNER LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 2 JULY 2023
- 4 -

The directors present their annual report and financial statements for the period ended 2 July 2023.

Results and dividends

The results for the period are set out on page 11.

Ordinary dividends were paid amounting to £8,400,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

Afzal Khushi
Akmal Khushi
Usman Khushi
Disabled persons

The group is committed to a policy of recruitment and promotion on the basis of aptitude and ability without discrimination of any kind. Management actively pursues both the employment of disabled persons whenever a suitable vacancy arises and the continued employment and retraining of employees who become disabled whilst employed by the group. Particular attention is given to the training, career development and promotion of disabled employees with a view to encouraging them to play an active role in the development of the group.

Employee involvement

Members of the management team regularly visit branches and discuss matters of current interest and concern to the business with members of staff.

Post reporting date events

Trespass International Sportswear Company Inc registered in Canada began trading through 3 retail outlets and an e-commerce platform in October 2023.

Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

JACOBS & TURNER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
- 5 -
Energy and carbon report

The Total Carbon Emission for Jacobs & Turner Limited, for financial period 2022/2023 is 2,226.4 tCO2e (tonnes carbon dioxide equivalent) (financial period 2021/2022 – 1,760.5 tCO2e). This footprint is based on the boundary conditions and emission types detailed in the main report.

SUMMARY OF ENERGY CONSUMPTION AND EMISSIONS

 

For the 53 (2022 - 52) weeks then ended

2 July 2023

26 June 2022

Total energy consumption used to calculate emissions

10,668,462 kWh

9,082,200 kWh

Emissions from combustion of gas

275.4 tCO2e

272.3 tCO2e

Emissions from business transport fuel including company owned fleet, hire cars and staff owned vehicles

161.3 tCO2e

94.2 tCO2e

Emissions from purchased electricity

1,789.7 tCO2e

1,394.0 tCO2e

Total gross emissions

2,226.4 tCO2e

1,760.5 tCO2e

Intensity ratio: emissions per total company turnover

0.01977 kgCO2e/£turnover

0.01503 kgCO2e/£turnover

METHODOLOGY

We report our emissions with reference to the latest Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (GHG Protocol). The latest 2023 UK Government GHG Conversion Factors for Company Reporting published by the UK Department for Environment Food & Rural Affairs (DEFRA) are used to convert energy use in our operations to emissions of CO2e. For SECR, the data used includes electrical half hourly data, manual data readings for non-half hourly electricity and gas and a variety of information on transport. The methodology used to calculate the emissions associated with energy consumption is in line with the Greenhouse Gas Protocol.

 

INTENSITY RATIO

Our Intensity Ratio is measured as 0.01977 kgCO2e/£turnover (financial period 2021/2022 – 0.01503 kgCO2e/£turnover).

ENERGY EFFICIENCY ACTION

Despite the pressures and uncertainties caused by COVID, the group has continued to focus on energy efficiency and environmental performance. Reductions in consumption have occurred in two key areas identified from recent Energy Savings Opportunity Scheme (ESOS) survey work.

 

These benefits centre upon investment in the adoption of modern LED lighting improvements:

 

  1. Retail Premises: - The group continues with its rolling programme of lighting refits within the stores in order to improve customer and staff experience and to reduce operating costs. A programme of refurbishment continues for sales floor, back offices, in window displays and signage. Where new stores have opened, LED lighting has been specified throughout for the upgrades.

  2. Distribution & Warehousing - LED lighting has been introduced in the open plan warehousing areas at the group‘s two Glasgow distribution centres in Kinning Park and at Stepps. These represent major capital outlay, but with corresponding significant benefits in reduced energy use, carbon emissions and ongoing replacement costs of fittings. as well as improved light levels and controllability. A study has been conducted on renewable technology options for the Kinning Park distribution centre where installation of solar PV was identified as a feasible option. Consultants have been engaged to move this project forward.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments (as applicable), foreign currency risk and credit risk.

JACOBS & TURNER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
- 6 -
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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Afzal Khushi
Director
28 March 2024
JACOBS & TURNER LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 2 JULY 2023
- 7 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

JACOBS & TURNER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JACOBS & TURNER LIMITED
- 8 -
Opinion

We have audited the financial statements of Jacobs & Turner Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 2 July 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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:

 

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 Auditor 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 or 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 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.

JACOBS & TURNER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JACOBS & TURNER LIMITED
- 9 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent company and their 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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement set out on page 7, 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit is considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

 

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

 

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

JACOBS & TURNER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JACOBS & TURNER LIMITED
- 10 -

Extent to which the audit was considered capable of detecting irregularities, including fraud (continued)

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and the parent company and the sector in which they operate, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

We gained an understanding of how the group and the parent company are complying with these laws and regulations by making enquiries of management and those charged with governance. We supplemented these enquiries through our testing of a sample of legal fees.

 

We assessed the susceptibility of the group’s financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. We identified a heightened fraud risk in relation to:

 

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

 

 

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

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 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.

Jeffrey Marjoribanks (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
29 March 2024
Statutory Auditor
227 West George Street
Glasgow
G2 2ND
JACOBS & TURNER LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 2 JULY 2023
- 11 -
53 weeks
52 weeks
ended
ended
2 July
26 June
2023
2022
Notes
£
£
Turnover
3
127,417,028
117,148,637
Cost of sales
(88,000,186)
(78,179,347)
Gross profit
39,416,842
38,969,290
Distribution costs
(10,568,795)
(11,127,596)
Administrative expenses
(23,031,497)
(18,019,984)
Other operating income
4,221,301
678,206
Operating profit
4
10,037,851
10,499,916
Interest receivable and similar income
8
400,058
8,642
Interest payable and similar expenses
9
(750,526)
(157,117)
Profit before taxation
9,687,383
10,351,441
Tax on profit
10
(2,072,252)
(1,660,141)
Profit and total comprehensive income for the financial period
26
7,615,131
8,691,300
Profit for the financial period is all attributable to the owners of the parent company.
Total comprehensive income for the period is all attributable to the owners of the parent company.

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

JACOBS & TURNER LIMITED
GROUP BALANCE SHEET
AS AT 2 JULY 2023
02 July 2023
- 12 -
2 July
26 June
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
47,751
57,351
Tangible assets
13
11,998,730
12,731,602
12,046,481
12,788,953
Current assets
Stocks
17
51,533,575
40,748,928
Debtors
18
13,527,013
14,610,927
Cash at bank and in hand
14,944,533
34,360,965
80,005,121
89,720,820
Creditors: amounts falling due within one year
19
(30,986,426)
(40,781,293)
Net current assets
49,018,695
48,939,527
Total assets less current liabilities
61,065,176
61,728,480
Provisions for liabilities
Provisions
21
3,026,254
2,904,689
(3,026,254)
(2,904,689)
Net assets
58,038,922
58,823,791
Capital and reserves
Called up share capital
25
505,000
505,000
Profit and loss reserves
26
57,533,922
58,318,791
Total equity
58,038,922
58,823,791
The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
28 March 2024
Afzal Khushi
Akmal Khushi
Director
Director
JACOBS & TURNER LIMITED
COMPANY BALANCE SHEET
AS AT 2 JULY 2023
02 July 2023
- 13 -
2 July
26 June
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
11,884,370
12,511,214
Investments
14
2,520
2,520
11,886,890
12,513,734
Current assets
Stocks
17
45,454,468
36,881,126
Debtors
18
22,663,183
19,223,628
Cash at bank and in hand
12,043,904
31,596,090
80,161,555
87,700,844
Creditors: amounts falling due within one year
19
(37,036,542)
(40,341,421)
Net current assets
43,125,013
47,359,423
Total assets less current liabilities
55,011,903
59,873,157
Provisions for liabilities
Provisions
21
149,683
104,263
(149,683)
(104,263)
Net assets
54,862,220
59,768,894
Capital and reserves
Called up share capital
25
505,000
505,000
Profit and loss reserves
26
54,357,220
59,263,894
Total equity
54,862,220
59,768,894

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £3,493,326 (2022 - £7,805,766 profit).

The financial statements were approved by the board of directors and authorised for issue on 28 March 2024 and are signed on its behalf by:
28 March 2024
Afzal Khushi
Akmal Khushi
Director
Director
Company Registration No. SC047678
JACOBS & TURNER LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 2 JULY 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 28 June 2021
505,000
54,027,491
54,532,491
Period ended 26 June 2022:
Profit and total comprehensive income for the period
-
8,691,300
8,691,300
Dividends
11
-
(4,400,000)
(4,400,000)
Balance at 26 June 2022
505,000
58,318,791
58,823,791
Period ended 2 July 2023:
Profit and total comprehensive income for the period
-
7,615,131
7,615,131
Dividends
11
-
(8,400,000)
(8,400,000)
Balance at 2 July 2023
505,000
57,533,922
58,038,922
JACOBS & TURNER LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 2 JULY 2023
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 28 June 2021
505,000
55,858,128
56,363,128
Period ended 26 June 2022:
Profit and total comprehensive income for the period
-
7,805,766
7,805,766
Dividends
11
-
(4,400,000)
(4,400,000)
Balance at 26 June 2022
505,000
59,263,894
59,768,894
Period ended 2 July 2023:
Profit and total comprehensive income for the period
-
3,493,326
3,493,326
Dividends
11
-
(8,400,000)
(8,400,000)
Balance at 2 July 2023
505,000
54,357,220
54,862,220
JACOBS & TURNER LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 2 JULY 2023
- 16 -
53 weeks
52 weeks
ended
ended
2 July
26 June
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
33
(4,279,441)
10,746,051
Interest paid
(750,526)
(157,117)
Income taxes paid
(2,163,637)
(2,936,646)
Net cash (outflow)/inflow from operating activities
(7,193,604)
7,652,288
Investing activities
Purchase of tangible fixed assets
(2,478,466)
(3,638,158)
Proceeds on disposal of tangible fixed assets
116,444
176,965
Interest received
400,058
8,642
Net cash used in investing activities
(1,961,964)
(3,452,551)
Financing activities
(Repayment)/receipt of import loan bonds
(1,860,864)
4,599,604
Dividends paid to equity shareholders
(8,400,000)
(4,400,000)
Net cash (used in)/generated from financing activities
(10,260,864)
199,604
Net (decrease)/increase in cash and cash equivalents
(19,416,432)
4,399,341
Cash and cash equivalents at beginning of period
34,360,965
29,961,624
Cash and cash equivalents at end of period
14,944,533
34,360,965
JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023
- 17 -
1
Accounting policies
Company information

Jacobs & Turner Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Vermont House, 149 Vermont Street, Kinning Park, GLASGOW, G41 1LU.

 

The group consists of Jacobs & Turner Limited and all of its subsidiaries.

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.

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 derivative financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements (where applicable):

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Jacobs & Turner Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 2 July 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes.

JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
1
Accounting policies
(Continued)
- 18 -

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.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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 20 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

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

Freehold land and buildings
4% straight line
Leasehold improvements
earliest of the first break in the lease, term of the lease or 7 years straight line
Plant and equipment
earliest of the first break in the lease, term of the lease or 3 - 20 years straight line
Fixtures and fittings
earliest of the first break in the lease, term of the lease or 3 - 15 years straight line
Motor vehicles
25% reducing balance

Freehold land is not depreciated.

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 recognised in the statement of comprehensive income.

1.7
Fixed asset investments

Equity investments are measured at cost less impairment.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
1
Accounting policies
(Continued)
- 19 -
1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

Any impairment loss is recognised immediately in the statement of comprehensive income.

1.9
Stocks

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

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

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include certain debtors 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.

Other financial assets

Other financial assets, including derivatives, 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 the statement of comprehensive income.

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. Any impairment loss is recognised in the statement of comprehensive income.

JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
1
Accounting policies
(Continued)
- 20 -
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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including certain creditors, bank and other loans, are initially recognised at transaction price. 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
Derivatives

The group enters into foreign exchange forward contracts in order to manage its exposure to foreign exchange risk.

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 the statement of comprehensive income.

 

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.

1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
1
Accounting policies
(Continued)
- 21 -
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 if, and only if, there is 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.

1.15
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.16
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 fixed 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 group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

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

1.18
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to the statement of comprehensive income 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 leased 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.

JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
1
Accounting policies
(Continued)
- 22 -
1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.20
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.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful lives of tangible fixed assets

The estimated useful lives of assets are outlined in note 1.6. Useful lives have been assessed based on historical experience and the periods over which management believe future economic benefits to be derived.

 

Details of the carrying value of the group's and company's tangible fixed assets are outlined at note 13.

Stock valuation

Inventories are valued at the lower of cost and net realisable value, subject to provisions for slow moving and obsolete stocks, where necessary. Calculation of these provisions is an estimate and requires judgements to be made, which include seasonal demands and inventory loss trends.

 

Details of the carrying value of the group's and company's stocks are outlined at note 17.

Provision for dilapidations

The inclusion of dilapidation provisions within the financial statements requires the directors to exercise judgement over the cost of expected dilapidation and strip out works across the group’s leased retail store portfolio. In making this assessment, the directors have considered factors such as store size and average settlement costs per square foot on previous dilapidation settlements. The provision carried at the reporting date is outlined at note 21.

There are no other judgements or estimation uncertainties that have a significant effect on amounts recognised in the financial statements.

JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
- 23 -
3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sale of outdoor clothing and related goods
127,417,028
117,148,637
2023
2022
£
£
Other significant revenue
Interest income
400,058
8,642
Grants received
3,129,773
183,565
Rental income
525,224
345,065
Research and development tax credits
253,800
-
Royalties and other sundry income
312,504
149,576

The analysis of turnover by geographical market required by paragraph 68 of Schedule 1 to the Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008 has not been provided as in the opinion of the directors, such disclosure would be seriously prejudicial to the interests of the group.

Grants receivable above include amounts recognised in respect of various government business support schemes for Coronavirus.

4
Operating profit
2023
2022
£
£
Operating profit for the period is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(867,376)
(510,702)
Government grants
(3,129,773)
(183,565)
Depreciation of owned tangible fixed assets
2,981,500
2,868,832
Loss on disposal of tangible fixed assets
118,495
196,579
Amortisation of intangible assets
9,600
11,742
Stocks impairment losses recognised or reversed
373,328
6,474
Operating lease charges
17,054,864
16,476,535
JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
- 24 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
35,000
30,000
Audit of the financial statements of the company's subsidiaries
45,000
40,000
80,000
70,000
For other services
Taxation compliance services
20,000
20,000
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Office
172
172
171
164
Factory and warehouse
165
162
137
157
Retail
1,489
1,248
1,308
1,194
Total
1,826
1,582
1,616
1,515

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
27,807,614
25,793,303
26,603,121
23,730,803
Social security costs
1,954,581
1,977,278
1,871,153
1,677,523
Pension costs
426,713
369,305
408,217
353,828
30,188,908
28,139,886
28,882,491
25,762,154
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
90,840
87,090
Company pension contributions to defined contribution schemes
1,422
1,422
92,262
88,512
JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
7
Directors' remuneration
(Continued)
- 25 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
400,058
8,642
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
750,526
157,117
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,712,593
1,929,167
Adjustments in respect of prior periods
41,415
(318,479)
Total UK current tax
1,754,008
1,610,688
Foreign current tax on profits for the current period
32,590
38,127
Adjustments in foreign tax in respect of prior periods
37,113
62
Total current tax
1,823,711
1,648,877
Deferred tax
Origination and reversal of timing differences
248,541
91,530
Adjustment in respect of prior periods
-
0
(80,266)
Total deferred tax
248,541
11,264
Total tax charge
2,072,252
1,660,141
JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
10
Taxation
(Continued)
- 26 -

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
9,687,383
10,351,441
Expected tax charge based on the standard rate of corporation tax in the UK of 20.50% (2022: 19.00%)
1,985,914
1,966,774
Tax effect of expenses that are not deductible in determining taxable profit
13,342
190,574
Tax effect of income not taxable in determining taxable profit
-
0
(74,398)
Change in unrecognised deferred tax assets
3,809
(177,483)
Adjustments in respect of prior years
78,529
(318,417)
Effect of change in corporation tax rate
44,838
67,608
Deferred tax adjustments in respect of prior years
-
0
(80,266)
Fixed asset differences
112,186
112,957
Other differences
(166,366)
(27,208)
Taxation charge
2,072,252
1,660,141

A change in the UK Corporation tax rate to 25% took effect from 1 April 2023. This change has had a consequential effect on the group's tax charge with the standard rate of tax in the current year reflective of a marginal tax rate arising from the company's period straddling the 19% and 25% tax rates. Deferred tax has been calculated at 25%.

11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
8,400,000
4,400,000
JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
- 27 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 27 June 2022 and 2 July 2023
325,817
Amortisation and impairment
At 27 June 2022
268,466
Amortisation charged for the period
9,600
At 2 July 2023
278,066
Carrying amount
At 2 July 2023
47,751
At 26 June 2022
57,351
The company had no intangible fixed assets at 2 July 2023 or 26 June 2022.
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 27 June 2022
20,559,109
16,338,260
11,493,929
8,469,299
436,175
57,296,772
Additions
-
0
1,368,659
522,096
506,740
80,971
2,478,466
Disposals
-
0
(1,523,302)
(132,058)
(601,245)
(124,844)
(2,381,449)
Exchange adjustments
-
0
4,020
4,787
(530)
(3,176)
5,101
At 2 July 2023
20,559,109
16,187,637
11,888,754
8,374,264
389,126
57,398,890
Depreciation and impairment
At 27 June 2022
11,732,359
14,222,136
10,702,019
7,614,155
294,501
44,565,170
Depreciation charged in the period
582,780
1,359,986
498,039
489,945
50,750
2,981,500
Eliminated in respect of disposals
-
0
(1,319,425)
(127,708)
(578,806)
(120,571)
(2,146,510)
At 2 July 2023
12,315,139
14,262,697
11,072,350
7,525,294
224,680
45,400,160
Carrying amount
At 2 July 2023
8,243,970
1,924,940
816,404
848,970
164,446
11,998,730
At 26 June 2022
8,826,750
2,116,124
791,910
855,144
141,674
12,731,602
JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
13
Tangible fixed assets
(Continued)
- 28 -
Company
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 27 June 2022
20,559,109
14,372,927
10,974,843
7,554,246
423,199
53,884,324
Additions
-
0
1,330,201
497,263
498,057
80,971
2,406,492
Disposals
-
0
(1,407,426)
(122,822)
(601,148)
(124,844)
(2,256,240)
At 2 July 2023
20,559,109
14,295,702
11,349,284
7,451,155
379,326
54,034,576
Depreciation and impairment
At 27 June 2022
11,732,359
12,422,847
10,222,730
6,704,842
290,332
41,373,110
Depreciation charged in the period
582,780
1,266,768
464,973
476,104
48,544
2,839,169
Eliminated in respect of disposals
-
0
(1,241,854)
(120,915)
(578,733)
(120,571)
(2,062,073)
At 2 July 2023
12,315,139
12,447,761
10,566,788
6,602,213
218,305
42,150,206
Carrying amount
At 2 July 2023
8,243,970
1,847,941
782,496
848,942
161,021
11,884,370
At 26 June 2022
8,826,750
1,950,080
752,113
849,404
132,867
12,511,214
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
2,520
2,520
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 27 June 2022 and 2 July 2023
1,640,605
Impairment
At 27 June 2022 and 2 July 2023
1,638,085
Carrying amount
At 2 July 2023
2,520
At 26 June 2022
2,520
JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
- 29 -
15
Subsidiaries

Details of the company's subsidiaries at 2 July 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Czech Republic Trespass Retail Limited
1
Retailer of clothing
Ordinary
100.00
-
Nevisport Limited
1
Retailer of clothing
Ordinary
100.00
-
Outdoor Kendal Limited
1
Non-trading
Ordinary
-
100.00
Trespass Austria Retail Limited
1
Retailer of clothing
Ordinary
100.00
-
Trespass Belgium Retail Limited
1
Retailer of clothing
Ordinary
100.00
-
Trespass Germany Retail Limited
1
Retailer of clothing
Ordinary
100.00
-
Trespass Holland Retail Limited
1
Non-trading
Ordinary
100.00
-
Trespass Poland Retail Limited
1
Retailer of clothing
Ordinary
100.00
-
Trespass Slovakia Retail Limited
1
Retailer of clothing
Ordinary
100.00
-
Trespass International Sportswear Company Inc
2
Retailer of clothing
Ordinary
100.00
-
Trespass Europe Trading B.V.
3
Retailer of clothing
Ordinary
100.00
-
Trespass Investments Limited
1
Leasing and property  rental
Ordinary
100.00
-
Trespass Enterprise Limited
1
Leasing and property  rental
Ordinary
100.00
-
Trespass Retail Properties Limited
1
Leasing and property  rental
Ordinary
100.00
-
Trespass Operations Limited
1
Leasing and property  rental
Ordinary
100.00
-
Trespass Leases Limited
1
Leasing and property  rental
Ordinary
100.00
-
Trespass Shops Limited
1
Leasing and property  rental
Ordinary
100.00
-
Trespass Polska No.1 Limited
1
Retailer of clothing
Ordinary
100.00
-
Trespass Polska No.2 Limited
1
Retailer of clothing
Ordinary
100.00
-
Trespass Distribution Sp. Zo.o
4
Warehouse operations
Ordinary
100.00
-
Trespass Europe Sportswear Ltd
5
Retailer of clothing
Ordinary
100.00
-
Trespass USA Inc
6
Retailer of clothing
Ordinary
100.00
-

1) The registered office is Vermont House, 149 Vermont Street, Kinning Park, Glasgow, G41 1LU.

2) The registered office is located in Vancouver, British Columbia, Canada.

3) The registered office is Utrechtseweg 341, 3818EL, Amersfoort, Netherlands.

4) The registered office is UL. Hrubieszowska 2, 01-209 Warszawa, Poland.

5) The registered office is Suite 2, The Portlaoise Plaza J17, Portlaoise, Laois, Ireland.

6) The registered office is P.O. Box 774448, Steamboat Springs, CO80477-44, U S A.

JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
- 30 -
16
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
115,094
655,643
115,094
655,643
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
51,533,575
40,748,928
45,454,468
36,881,126
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,286,210
3,209,621
3,502,103
1,986,970
Amounts owed by group undertakings
-
-
10,988,908
7,051,159
Derivative financial instruments
115,094
655,643
115,094
655,643
Other debtors
442,440
2,307,884
657,939
1,375,007
Prepayments and accrued income
6,982,125
7,488,094
6,850,491
7,357,341
12,825,869
13,661,242
22,114,535
18,426,120
Deferred tax asset (note 22)
701,144
949,685
548,648
797,508
13,527,013
14,610,927
22,663,183
19,223,628

The company has provided loans to its subsidiaries and these loans are repayable on demand. After the end of the accounting period, the company's directors have confirmed that they have no plans to recall these loans in full within the next twelve months. From a group perspective, there is a provision of £230,042 (2022 - £150,214) in place against trade debtors. In respect of the company only, there is a provision against group balances totalling £6,105,903 (2022 - £3,194,768).

 

 

JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
- 31 -
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Import loan bonds
20
8,638,488
10,499,352
8,638,488
10,499,352
Trade creditors
12,839,685
14,217,138
14,009,585
12,753,480
Amounts owed to group undertakings
-
0
-
0
1,889,825
2,760,007
Corporation tax payable
849,892
1,443,618
705,188
1,365,255
Other taxation and social security
2,014,223
1,093,157
2,212,798
887,681
Government grants
23
-
0
2,842,838
-
0
2,842,838
Other creditors
517,178
2,335,318
521,569
1,658,833
Accruals and deferred income
6,126,960
8,349,872
9,059,089
7,573,975
30,986,426
40,781,293
37,036,542
40,341,421
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Import loan bonds
8,638,488
10,499,352
8,638,488
10,499,352
Payable within one year
8,638,488
10,499,352
8,638,488
10,499,352
21
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Dilapidation provision
3,026,254
2,904,689
149,683
104,263
Movements on provisions:
Dilapidation provision
Group
£
At 27 June 2022
2,904,689
Additional provisions in the year
121,565
At 2 July 2023
3,026,254
JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
21
Provisions for liabilities
(Continued)
- 32 -
Company
£
At 27 June 2022
104,263
Additional provisions in the year
45,420
At 2 July 2023
149,683

The directors have made a provision within the financial statements for the cost of expected dilapidation and strip out works across the group’s leased retail store portfolio. The timing and final settlement of dilapidations will be dependent on the expiration of leases or any lease amendments, extensions or negotiations.

22
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Assets
Assets
2023
2022
Group
£
£
Decelerated capital allowances
608,191
855,252
Tax losses
-
3,809
Other timing differences
92,953
90,624
701,144
949,685
Assets
Assets
2023
2022
Company
£
£
Decelerated capital allowances
456,134
703,410
Tax losses
-
3,809
Other timing differences
92,514
90,289
548,648
797,508
JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
22
Deferred taxation
(Continued)
- 33 -
Group
Company
2023
2023
Movements in the period:
£
£
Asset at 27 June 2022
(949,685)
(797,508)
Charge to profit or loss
248,541
248,860
Asset at 2 July 2023
(701,144)
(548,648)
23
Government grants
Group
Company
2023
2022
2023
2022
£
£
£
£
Arising from government grants
-
2,842,838
-
2,842,838
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
426,713
369,305

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

The group had pension contributions of £99,116 (2022 - £84,263) outstanding at the reporting date and included in other creditors falling due within one year.

25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
505,000
505,000
505,000
505,000
26
Reserves
Profit and loss reserves

The profit and loss account represents total comprehensive income for the year and prior periods, less dividends paid.

JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
- 34 -
27
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
6,929,138
8,908,149
205,688
247,487
Between two and five years
10,319,646
20,821,517
659,458
237,500
In over five years
1,116,900
5,831,592
200,000
-
18,365,684
35,561,258
1,065,146
484,987
28
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
-
908,010
-
908,010
29
Events after the reporting date

Trespass International Sportswear Company Inc registered in Canada began trading through 3 retail outlets and an e-commerce platform in October 2023.

30
Related party transactions
Transactions with related parties

During the period the group entered into the following transactions with related parties:

Sales
Purchases
2023
2022
2023
2022
£
£
£
£
Company
Entities under common control
-
468
539,870
418,639

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Company
Entities under common control
216,504
398,757
JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
30
Related party transactions
(Continued)
- 35 -

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Company
Entities under common control
221,696
291,822
Other information

The company has taken advantage of disclosure exemptions available under Section 33 of FRS 102 whereby it has not disclosed transactions entered into with any wholly-owned subsidiary of the group.

31
Directors' transactions

Dividends totalling £8,400,000 (2022 - £4,400,000) were paid in the period in respect of shares held by the company's directors.

32
Controlling party

The company is controlled by Afzal Khushi and Akmal Khushi.

33
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Profit for the period after tax
7,615,131
8,691,300
Adjustments for:
Taxation charged
2,072,252
1,660,141
Finance costs
750,526
157,117
Investment income
(400,058)
(8,642)
Research and development tax credits
(253,800)
-
Loss on disposal of tangible fixed assets
118,495
196,579
Amortisation and impairment of intangible assets
9,600
11,742
Depreciation and impairment of tangible fixed assets
2,981,500
2,868,832
Movement in derivatives valuation
540,549
(865,324)
Increase in provisions
121,565
2,904,689
Movements in working capital:
Increase in stocks
(10,784,647)
(3,330,438)
Decrease/(increase) in debtors
294,824
(5,011,445)
(Decrease)/increase in creditors
(4,502,540)
3,125,472
(Decrease)/increase in deferred income
(2,842,838)
346,028
Cash (absorbed by)/generated from operations
(4,279,441)
10,746,051
JACOBS & TURNER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 2 JULY 2023
- 36 -
34
Analysis of changes in net funds - group
27 June 2022
Cash flows
2 July 2023
£
£
£
Cash at bank and in hand
34,360,965
(19,416,432)
14,944,533
Import loan bonds
(10,499,352)
1,860,864
(8,638,488)
23,861,613
(17,555,568)
6,306,045
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