Company Registration No. 00574793 (England and Wales)
JS WRIGHT AND SONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
31 December 2023
JS WRIGHT AND SONS LIMITED
COMPANY INFORMATION
Directors
JB Ruggles
NJ Wright
OC Wright
Secretary
JB Ruggles
Company number
00574793
Registered office
Coles Farm Works
Boreham Road
Great Leighs
Chelmsford
Essex
CM3 1PR
Auditor
Rickard Luckin Limited
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
Business address
Coles Farm Works
Boreham Road
Great Leighs
Chelmsford
Essex
CM3 1PR
Solicitors
Holmes & Hills LLP
Dale Chambers
Bocking End
Braintree
Essex
CM7 9AJ
JS WRIGHT AND SONS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 21
JS WRIGHT AND SONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Fair review of the business

The Directors are very pleased with the financial performance over the last 12 months, despite having to increase prices due to increased costs from sub-contractors, wages and salaries and the prices of raw materials. We did not produce the numbers anticipated due to the appalling weather in February 2023 which would not allow us to start cutting trees, so the yard ran out of timber for 6 weeks and we directed the labour to yard maintenance without anyone losing the hours they wanted. This pushed costs up per blade as production targets were not met.

India / Pakistan demand for timber is ever increasing and with problems in the Red Sea shipping is challenging but we managed to hold shipping prices for the full 12 months, which is a remarkable feat considering how much they increased towards the end of the year.

We have increased our range of products to meet the demand for timber from India / Pakistan especially which has aided our sales and cash flow.

We continue to invest in plant and machinery, with new replacement forklifts as well as new office buildings and the beginnings of two new drying kilns.

We have also invested in new employees at management and tree buying level; taking on a new willow tree buyer has proved a great asset to the company. We also promoted an outside worker to willow set manager; this has meant our tree buyers have been able to spend 3 extra months sourcing trees which means we have a huge list of trees that we have agreed to purchase. We have also taken on extra sub-contractors to increase the amount of trees we can purchase and fell as well as how many trees we can plant.

Cash flow has also improved with some customers paying earlier than expected due to foreign exchange rate fluctuations without the need for us to give any extra discounts to achieve this.

Our social media / PR standings have improved since we started investing more in this side of the business and that is keeping us in people’s minds with circulars by email and postal brochures going out much more regularly than before.

Principal risks and uncertainties

There is always the risk of the laws of cricket being changed to allow other materials to be used, currently the cricket bat has to be made of a single piece of wood, with laminated products allowed in the junior market. We are always concerned that either due to the price of the bat or the lack of raw material the powers that be ( ICC – International Cricket Council and the MCC - Marylebone Cricket Club ) will change the rules, but that has not happened thus far and we have annual meetings with the MCC which seems to put any fears from their side to bed. There is more European Willow being processed for cricket bats these days which helps us, despite it being a competitor and although the wood is not as good quality it does help to satisfy the demand. Although some manufacturers selling it as English Willow is not acceptable there is nothing we can currently do about that.

Climate change is affecting us with wet weather becoming more and more of a problem, this means we cannot get on the land to either fell trees or plant new ones. Felling is carried out all year round when weather permits and landowners allow access , but with warmer and wetter winters for two years now we have had to try and get enough trees in the yard by the end of November to keep the factory busy and we have failed. However we have now invested in two extra gangs of subcontractors and other sub-contractors have taken on extra men to hopefully get more felling done when weather permits. Planting of new trees is carried out from December to March 1st and we have even had to put some jobs off as the areas remain flooded and we cannot get access to plant, but again extra men has assisted in this as well.

The disposal of waste branches and leaves on tree felling sites continues to cause challenges. We have looked at chipping the waste on site but not only does this risk spreading disease but again this will lead to huge increased costs in machinery and labour. With all the others costs increasing at an alarming rate this is something that the industry (not just us) can afford in the short term, but in the longer term it will certainly need to be considered.

Finding people who want to work in the factory which is physical and hard work has been challenging, there are ideas below in development and performance that we hope will address this.

JS WRIGHT AND SONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Development and performance

The Directors pay close attention to the number of clefts produced and this almost completely depends on number of trees into the factory. As prices are based on numbers and qualities of the trees these figures are constantly monitored on a monthly basis, with 6 weekly management and board meetings and monthly trees buying / planting meetings.

We are looking at increasing drying capacity over the next couple of years if we can get more timber through the factory, planning permission was granted in 2022 and we have the steel structure and roof on already so the sheds can be used. The extra drying is not needed until we can get more trees through.

We want to modernise the manufacturing process to make it easier to get employees to stay and make the jobs easier for the current employees once they cannot do so much on a physical scale. In this respect we are looking at two new machines and have spent a good amount on research and development.

The business is very strong with a full order book for the next year and a waiting list of new customers all of who have approached us due to reputation as the foremost supplier of cricket bat willow in the world.

Key performance indicators

The key performance indicators used to review and monitor the company are shown below:-

 

2023 2022

Sales £12,395,732 £11,957,032

Gross profit £4,249,929 £3,925,604

Gross profit margin 34.3% 32.8%

Net profit margin 14.5% 14.7%

 

The directors are pleased with the sales and margin performance indicators in light of the challenges around getting trees into production in the year as described above and the continuing cost challenges faced by the business.

On behalf of the board

JB Ruggles
Director
27 March 2024
JS WRIGHT AND SONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of specialist timber merchants.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £678,478. The directors do not recommend payment of a further dividend.

Directors

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

JB Ruggles
NJ Wright
OC Wright
Directors' insurance

The company maintains insurance policies on behalf of all the directors against liability arising from negligence, breach of duty and breach of trust in relation to the company.

Auditor

In accordance with the company's articles, a resolution proposing that Rickard Luckin Limited be reappointed as auditor of the company will be put at a General Meeting.

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:

 

 

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.

JS WRIGHT AND SONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
JB Ruggles
Director
27 March 2024
JS WRIGHT AND SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JS WRIGHT AND SONS LIMITED
- 5 -
Opinion

We have audited the financial statements of JS Wright and Sons Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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'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.

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.

Opinions on other matters prescribed by the Companies Act 2006

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

JS WRIGHT AND SONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JS WRIGHT AND SONS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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.

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.

Capability of the audit in detecting irregularity, including fraud

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management; and via inspection of the company’s regulatory and legal correspondence.

We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

JS WRIGHT AND SONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JS WRIGHT AND SONS LIMITED
- 7 -

Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; data protection legislation; and anti-bribery and anti-corruption legislation.

ISAs (UK) limit the required procedures to identify non-compliance with these laws and regulations and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance with laws and regulations that could have a material impact on the financial statements.

In relation to fraud, we performed the following specific procedures in addition to those already noted:

These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with ISAs (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.

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.

Other matters which we are required to address

The financial statements for the year ended 31 December 2022 were unaudited.

JS WRIGHT AND SONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JS WRIGHT AND SONS LIMITED
- 8 -

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.

Michael Breame
Senior Statutory Auditor
For and on behalf of Rickard Luckin Limited
27 March 2024
Chartered Accountants
Statutory Auditor
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
JS WRIGHT AND SONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
12,395,732
11,957,032
Cost of sales
(8,145,803)
(8,031,428)
Gross profit
4,249,929
3,925,604
Administrative expenses
(2,078,408)
(1,833,457)
Other operating income
73,667
73,379
Operating profit
6
2,245,188
2,165,526
Interest receivable and similar income
7
65,158
4,245
Interest payable and similar expenses
8
(30,928)
(27,700)
Profit before taxation
2,279,418
2,142,071
Tax on profit
9
(487,805)
(381,758)
Profit for the financial year
1,791,613
1,760,313

The profit and loss account has been prepared on the basis that all operations are continuing operations.

JS WRIGHT AND SONS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
514,661
330,954
Current assets
Stocks
12
3,785,684
3,039,428
Debtors
13
1,956,326
1,573,929
Cash at bank and in hand
1,903,817
1,815,488
7,645,827
6,428,845
Creditors: amounts falling due within one year
14
(2,160,310)
(1,797,342)
Net current assets
5,485,517
4,631,503
Total assets less current liabilities
6,000,178
4,962,457
Creditors: amounts falling due after more than one year
15
(320,180)
(395,594)
Net assets
5,679,998
4,566,863
Capital and reserves
Called up share capital
19
60,000
60,000
Capital redemption reserve
30,000
30,000
Profit and loss reserves
20
5,589,998
4,476,863
Total equity
5,679,998
4,566,863

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 27 March 2024 and are signed on its behalf by:
JB Ruggles
NJ Wright
Director
Director
Company registration number 00574793 (England and Wales)
JS WRIGHT AND SONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
60,000
30,000
2,965,350
3,055,350
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
1,760,313
1,760,313
Dividends
10
-
-
(248,800)
(248,800)
Balance at 31 December 2022
60,000
30,000
4,476,863
4,566,863
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,791,613
1,791,613
Dividends
10
-
-
(678,478)
(678,478)
Balance at 31 December 2023
60,000
30,000
5,589,998
5,679,998
JS WRIGHT AND SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

JS Wright and Sons Limited is a private company limited by shares incorporated in England and Wales. The registered office is Coles Farm Works, Boreham Road, Great Leighs, Chelmsford, Essex, CM3 1PR.

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

This 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:

 

JS Wright and Sons Limited is a wholly owned subsidiary of JSW Holding Limited and the results of JS Wright and Sons Limited are included in the consolidated financial statements of JSW Holding Limited which are available from Companies House.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

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

1.4
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:

Plant and machinery
25% straight line basis
Solar Panels
5% straight line basis
JS WRIGHT AND SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

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.

1.5
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.

1.6
Stocks

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

 

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

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

1.7
Cash at bank and in hand

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

1.8
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include 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 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.

JS WRIGHT AND SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

Trade 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

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

1.10
Taxation

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

JS WRIGHT AND SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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 is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes.
1.11
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 company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Leases

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

 

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

Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
2
Judgements and key sources of estimation uncertainty

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

 

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

 

In the current period there were no significant judgements that require additional disclosure and no revisions to accounting estimates.

JS WRIGHT AND SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by geographical market
UK
899,465
691,113
India & Pakistan
11,031,603
10,821,320
Austraila & New Zealand
377,817
341,867
South Africa
86,847
102,732
12,395,732
11,957,032
2023
2022
£
£
Other revenue
Interest income
65,158
4,245
Rental income
31,490
32,095
Sundry income
42,177
41,284
4
Employees

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

2023
2022
Number
Number
35
39

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,948,353
1,758,734
Social security costs
225,145
229,422
Pension costs
114,119
84,189
2,287,617
2,072,345
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
732,445
635,568
Company pension contributions to defined contribution schemes
32,000
32,000
764,445
667,568
JS WRIGHT AND SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Directors' remuneration
(Continued)
- 17 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
497,835
414,864
6
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
-
0
Depreciation of owned tangible fixed assets
59,764
48,498
Depreciation of tangible fixed assets held under finance leases
125,483
81,875
Profit on disposal of tangible fixed assets
(100,562)
(16,351)
Operating lease charges
3,758
2,211
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
65,158
4,245
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
16,279
19,341
Interest on finance leases and hire purchase contracts
14,649
8,359
30,928
27,700
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
487,805
381,758

From April 2023 UK corporation tax has been increased by 6% to 25% (2022: 19%). Deferred tax at the comparative balance sheet date was calculated at the substantively enacted rate of 25%.

JS WRIGHT AND SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 18 -

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
2,279,418
2,142,071
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
569,855
406,993
Tax effect of expenses that are not deductible in determining taxable profit
(3,609)
(12,214)
Change in unrecognised deferred tax assets
(47,092)
(18,153)
Effect of change in corporation tax rate
(30,685)
5,132
Group relief
(664)
-
0
Taxation charge for the year
487,805
381,758
10
Dividends
2023
2022
£
£
Final paid
678,478
248,800
11
Tangible fixed assets
Plant and machinery
£
Cost
At 1 January 2023
1,121,963
Additions
383,793
Disposals
(255,191)
At 31 December 2023
1,250,565
Depreciation and impairment
At 1 January 2023
791,009
Depreciation charged in the year
185,247
Eliminated in respect of disposals
(240,352)
At 31 December 2023
735,904
Carrying amount
At 31 December 2023
514,661
At 31 December 2022
330,954
JS WRIGHT AND SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Tangible fixed assets
(Continued)
- 19 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Plant and machinery
310,183
152,002
12
Stocks
2023
2022
£
£
Raw materials and consumables
764,228
734,277
Work in progress
386,056
358,987
Finished goods and goods for resale
2,635,400
1,946,164
3,785,684
3,039,428
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,632,098
1,383,725
Amounts owed by group undertakings
118,132
4,342
Other debtors
78,712
73,656
Prepayments and accrued income
127,384
112,206
1,956,326
1,573,929
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
16
123,745
136,794
Obligations under finance leases
17
107,369
58,859
Trade creditors
846,196
489,255
Corporation tax
151,383
381,758
Other taxation and social security
64,018
92,607
Other creditors
833,207
592,362
Accruals and deferred income
34,392
45,707
2,160,310
1,797,342
JS WRIGHT AND SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
221,028
341,400
Obligations under finance leases
17
99,152
54,194
320,180
395,594
Amounts included above which fall due after five years are as follows:
Payable by instalments
32,447
64,876
16
Loans and overdrafts
2023
2022
£
£
Bank loans
344,773
478,194
Payable within one year
123,745
136,794
Payable after one year
221,028
341,400

The company currently has four loans (2022: five loans) two (2022: two) of which are mortgages. The interest rates on the loans vary between 2.79% - 4.27%. All loans are on a fixed repayment basis. The remaining terms of the loans ranges between two - seven years.

The mortgage and loans are secured over the investment properties held by the parent company JSW Holdings Limited.

17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
128,163
63,206
In two to five years
102,594
57,832
230,757
121,038
Less: future finance charges
(24,236)
(7,985)
206,521
113,053

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is between two - four years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Finance leases are secured on the assets to which they relate.

JS WRIGHT AND SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
114,119
84,189

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
60,000
60,000
60,000
60,000
20
Profit and loss reserves

Retained earnings are considered to be fully distributable.

21
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
77,788
-
22
Related party transactions
Transactions with related parties

The company has taken advantage of the exemption allowed under FRS102 from disclosing transactions with other wholly owned members of the group headed by JSW Holding Limited.

 

The directors are the only employees who qualify as key management personnel, their remuneration has been disclosed in note 5.

 

In addition employees who are closely related to the directors received remuneration of £29,484 (2022: £29,484).

23
Ultimate controlling party

The parent company of JS Wright and Sons Limited is JSW Holding Limited, a company incorporated in England and Wales. Consolidated financial statements for JSW Holding Limited can be obtained from Companies House. The ultimate controlling parties are NJ Wright and JB Ruggles by virtue of their shareholding in the group.

 

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