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Company Registration number: 05954745

Jays Logistics (South West) Limited

Annual Report and Financial Statements

for the Year Ended 31 October 2023

 

Jays Logistics (South West) Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Profit and Loss Account

11

Statement of Comprehensive Income

12

Balance Sheet

13

Statement of Changes in Equity

14

Statement of Cash Flows

15

Notes to the Financial Statements

16 to 29

 

Jays Logistics (South West) Limited

Company Information

Directors

J D White

S R Keedwell

M Beavan

Company secretary

J D White

Registered office

Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

Auditors

Bishop Fleming LLP
10 Temple Back
Bristol
BS1 6FL

 

Jays Logistics (South West) Limited

Strategic Report for the Year Ended 31 October 2023

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

Principal activity

The principal activity of the company is that of road haulage and storage.

Fair review of the business

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£

10,434,097

11,368,969

Gross profit

£

2,100,984

2,052,219

Gross margin

%

20

18

Net profit/(loss) before tax

£

1,054,421

877,541

Current net assets

£

4,712,010

4,496,067

Net assets

£

6,264,385

5,424,205

The general haulage industry, and the company, remains highly capital intensive with relatively low gross and net profit margins. Over recent years the industry has seen both operating costs and pricing pressures increase, thereby further impacting the margins.

During this period, the company diversified, with a focus on business with higher margins. This enabled the business to increase both turnover and margin, albeit with levels of project-based business. 2022 figures were exceptionally strong, and with a large project finishing mid-year, the 2023 figures show an expected decline in turnover of some 8.2% to £10,434,097. Profitability has however improved by some 20% to £1,054,421.

Whilst the results were as expected, the company has secured additional project-based business going forward with an expectation of a return to improved turnover and margins.

Future developments

The external commercial environment is expected to remain competitive, and the cost of fuel remains significant. However, the board continues to focus on improving margins through a mix of pricing and cost controls. The board are focusing on areas where the business is more efficient, moving into more profitable sectors and are engaging with a number of significant local and national developments and remain confident that these will provide growth both in revenue and margin.

Since the year end, the company’s 2024 trading has remained consistent. As a board we continue to monitor the technological changes within our industry, including fuel types and driverless vehicles and the changing employee environment, with particular focus on recruitment and retention of employees.

 

Jays Logistics (South West) Limited

Strategic Report for the Year Ended 31 October 2023

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to competition from both National and independent hauliers, fuel prices and the employment and retention of additional HGV drivers. Management monitor these closely ensuring their pricing remains appropriately competitive and that the company is attractive to employees in what is currently an employee market. Fuel price changes are passed on to customers where possible or absorbed.

A number of unforeseen risks have arisen in the past few years, including the Covid-19 pandemic, the effects of the Ukraine conflict and the high inflationary economic environment, and all have impacted the group’s trading. In order to address these challenges the directors continually assessed the risks in detail, concluding that the company remains well placed to navigate such issues. The costs and cash requirements are managed closely and the company seeks to ensure tight controls over the credit procedures and where applicable, government support has been obtained.

Approved by the Board on 25 July 2024 and signed on its behalf by:


J D White
Company secretary and director

   
 

Jays Logistics (South West) Limited

Directors' Report for the Year Ended 31 October 2023

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

Directors of the company

The directors who held office during the year were as follows:

J D White - Company secretary and director

P B Phillips (ceased 20 February 2024)

S R Keedwell

M Beavan

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Financial instruments

Objectives and policies

The company’s principal financial instruments are all relatively standard and comprise bank balances, bank overdrafts, trade creditors, trade debtors, loans to the company and finance lease agreements. The main purpose of these instruments is to raise funds for the company’s operations and to finance the company’s operations.

Price risk, credit risk, liquidity risk and cash flow risk

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company’s approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. The company makes use of money market facilities where funds are available.

In respect of loans these comprise loans from the directors and loans from financial institutions. The interest rate on the loans from financial institutions is variable but the monthly repayments are fixed. The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments. The loans from the directors are interest free and payable on demand. The directors are aware of the company’s required finance and have determined that these will only be repaid in whole or in part when finance is available.

The company is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed in the same way as loans above.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to settle amounts as they fall due.

Future Developments

The future developments of the business are included within the strategic report.

 

Jays Logistics (South West) Limited

Directors' Report for the Year Ended 31 October 2023

Approved by the Board on 25 July 2024 and signed on its behalf by:


J D White
Company secretary and director

   
 

Jays Logistics (South West) Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Jays Logistics (South West) Limited

Independent Auditor's Report to the Members of Jays Logistics (South West) Limited

Opinion

We have audited the financial statements of Jays Logistics (South West) Limited (the 'Company') for the year ended 31 October 2023, which comprise the Profit and Loss Account, the Statement of Comprehensive Income, the Balance sheet, the Statement of Changes in Equity, the Statement of Cashflow and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the Company's affairs as at 31 October 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.

 

Jays Logistics (South West) Limited

Independent Auditor's Report to the Members of Jays Logistics (South West) Limited

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements

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 where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors’ remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 6, 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.

 

Jays Logistics (South West) Limited

Independent Auditor's Report to the Members of Jays Logistics (South West) Limited

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 Auditors' 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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, we have considered the following:

The nature of the industry and sector, control environment and business performance;

Results of our enquires of management and directors in relation to their own identification and assessment of the risks of irregularities within the Company; and

any matters we identified having obtained and reviewed the Company’s documentation of their policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non compliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the internal controls established to mitigate risks of fraud or noncompliance with laws and regulations.

As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition. In common with all audits under ISAs (UK) we are required to perform specific procedures to respond to the risk of management override.

We have also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures within the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Financial Reporting Standard 102 and UK tax legislation. In addition we considered provision of other laws and regulations that do not have a direct effect on the financial statements but compliance with may be fundamental for the Company’s ability to operate or avoid a material penalty. These included health and safety regulations; employment legislation; and data protection laws.

Our audit procedures performed to respond to the risks identified included, but were not limited to:
 

Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

Reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;

 

Jays Logistics (South West) Limited

Independent Auditor's Report to the Members of Jays Logistics (South West) Limited

Challenging assumptions and judgments made by management in their significant accounting estimates

Discussions with management, including consideration of known or suspected instances of non compliance with laws and regulation and fraud;

Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and

Identifying and testing journal entries, evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud;

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement 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 an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. 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.

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

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 Auditors' 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.





Simon Morrison FCA (Senior Statutory Auditor)
For and on behalf of Bishop Fleming LLP, Statutory Auditor

10 Temple Back
Bristol
BS1 6FL

30 July 2024

 

Jays Logistics (South West) Limited

Profit and Loss Account
for the Year Ended 31 October 2023

Note

2023
 £

2022
 £

Turnover

3

10,434,097

11,368,969

Cost of sales

 

(8,333,113)

(9,316,750)

Gross profit

 

2,100,984

2,052,219

Administrative expenses

 

(1,210,873)

(1,172,287)

Operating profit

4

890,111

879,932

Other interest receivable and similar income

5

190,701

17,279

Interest payable and similar charges

6

(26,391)

(19,670)

Profit before tax

 

1,054,421

877,541

Taxation

10

(214,241)

(145,464)

Profit for the financial year

 

840,180

732,077

The above results were derived from continuing operations.

 

Jays Logistics (South West) Limited

Statement of Comprehensive Income
for the Year Ended 31 October 2023

2023
£

2022
£

Profit for the year

840,180

732,077

Total comprehensive income for the year

840,180

732,077

 

Jays Logistics (South West) Limited

(Registration number: 05954745)
Balance Sheet as at 31 October 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

11

3,290,721

1,452,494

Investment property

12

238,334

238,334

Investments

13

25

25

 

3,529,080

1,690,853

Current assets

 

Debtors

14

4,252,279

3,782,807

Cash at bank and in hand

 

1,983,902

2,298,013

 

6,236,181

6,080,820

Creditors: Amounts falling due within one year

16

(1,524,171)

(1,584,753)

Net current assets

 

4,712,010

4,496,067

Total assets less current liabilities

 

8,241,090

6,186,920

Creditors: Amounts falling due after more than one year

16

(1,419,602)

(419,853)

Provisions for liabilities

17

(557,103)

(342,862)

Net assets

 

6,264,385

5,424,205

Capital and reserves

 

Called up share capital

100

100

Profit and loss account

6,264,285

5,424,105

Shareholders' funds

 

6,264,385

5,424,205

Approved and authorised by the Board on 25 July 2024 and signed on its behalf by:
 


J D White
Company secretary and director

   
 

Jays Logistics (South West) Limited

Statement of Changes in Equity
for the Year Ended 31 October 2023

Share capital
£

Retained earnings
£

Total
£

At 1 November 2022

100

5,424,105

5,424,205

Profit for the year

-

840,180

840,180

At 31 October 2023

100

6,264,285

6,264,385

Share capital
£

Retained earnings
£

Total
£

At 1 November 2021

100

4,692,028

4,692,128

Profit for the year

-

732,077

732,077

At 31 October 2022

100

5,424,105

5,424,205

 

Jays Logistics (South West) Limited

Statement of Cash Flows
for the Year Ended 31 October 2023

Note

2023
 £

2022
 £

Cash flows from operating activities

Profit for the year

 

840,180

732,077

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

480,734

479,060

Profit on disposal of tangible assets

(24,835)

(44,110)

Finance income

5

(190,701)

(17,279)

Finance costs

6

26,391

19,670

Income tax expense

10

214,241

145,464

 

1,346,010

1,314,882

Working capital adjustments

 

(Increase)/decrease in trade and other debtors

14

(328,786)

814,389

Decrease in trade and other creditors

16

(334,621)

(368,484)

Cash generated from operations

 

682,603

1,760,787

Income taxes paid

10

(140,685)

(152,000)

Net cash flow from operating activities

 

541,918

1,608,787

Cash flows from investing activities

 

Interest received

5

53,201

17,279

Acquisitions of tangible assets

(801,657)

(163,575)

Proceeds from sale of tangible assets

 

144,978

98,061

Dividend income

5

137,500

-

Net cash flows from investing activities

 

(465,978)

(48,235)

Cash flows from financing activities

 

Interest paid

6

(26,391)

(19,670)

Payments to finance lease creditors

 

(363,660)

(339,349)

Net cash flows from financing activities

 

(390,051)

(359,019)

Net (decrease)/increase in cash and cash equivalents

 

(314,111)

1,201,533

Cash and cash equivalents at 1 November 2022

 

2,298,013

1,096,480

Cash and cash equivalents at 31 October 2023

15

1,983,902

2,298,013

 

Jays Logistics (South West) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

The principal place of business is:
Commerce Way
Walrow Industrial Estate
Highbridge
Somerset
TA9 4AG

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Sterling (£).

Turnover recognition

Turnover represents the receipts or amounts receivable from haulage services provided net of value added tax. Turnover for hire of haulage vehicles is recognised in the period to which it relates. Turnover from haulage services provided is recognised at the point of delivery.

Government grants

Government grants are recognised under the accruals model resulting in income being recognised on a systematic basis over the period in which the related costs are incurred for which the grant is compensating. The income from the scheme is recognised as other operating income in the profit and loss and timing differences presented as other debtors within the balance sheet.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

Jays Logistics (South West) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.

Tangible assets

Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

15% on reducing balance

Fixtures and fittings

15% on reducing balance

Motor vehicles

25% on reducing balance

Computer equipment

15% on reducing balance

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors. The directors use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Jays Logistics (South West) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Other debtors and loans receivable are initially recognised at fair value net of transaction costs and are subsequently measured at amortised cost using the effective interest method less provision for impairment.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. Other financial liabilities, including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.

Reserves

Called up share capital represents the nominal value of shares that have been issued.

Profit and loss reserve includes all current and prior period profits and losses.

 

Jays Logistics (South West) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of services

10,434,097

11,368,969

 

Jays Logistics (South West) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

4

Operating profit

Arrived at after charging/(crediting):

2023
 £

2022
 £

Depreciation expense

480,734

479,060

Profit on disposal of property, plant and equipment

(24,835)

(44,110)

5

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

33,113

-

Dividend income

137,500

-

Other finance income

20,088

17,279

190,701

17,279

6

Interest payable and similar expenses

2023
£

2022
£

Interest on obligations under finance leases and hire purchase contracts

26,391

19,670

 

Jays Logistics (South West) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

2,672,528

2,878,294

Social security costs

240,693

266,766

Pension costs, defined contribution scheme

49,658

52,845

2,962,879

3,197,905

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

5

5

Distribution

70

70

75

75

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

118,752

123,098

Contributions paid to money purchase schemes

2,377

2,324

121,129

125,422

9

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

10,550

9,500


 

 

Jays Logistics (South West) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

10

Taxation

Tax charged/(credited) in the profit and loss account:

2023
 £

2022
 £

Current taxation

UK corporation tax

-

182,782

Deferred taxation

Arising from origination and reversal of timing differences

214,241

(37,318)

Tax expense in the profit and loss account

214,241

145,464

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 22.5% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

1,054,421

877,541

Corporation tax at standard rate

237,245

166,733

Effect of expense not deductible in determining taxable profit (tax loss)

-

355

Deferred tax expense (credit) relating to changes in tax rates or laws

-

(59,860)

Effect of tax losses

(48,473)

-

Tax increase (decrease) from other short-term timing differences

-

1,855

Tax increase (decrease) from effect of capital allowances and depreciation

25,469

36,381

Total tax charge

214,241

145,464

 

Jays Logistics (South West) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

11

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and machinery
 £

Computer Equipment
 £

Total
£

Cost or valuation

At 1 November 2022

39,285

3,338,895

248,473

63,475

3,690,128

Additions

4,800

2,434,304

-

-

2,439,104

Disposals

-

(491,410)

(3,000)

-

(494,410)

At 31 October 2023

44,085

5,281,789

245,473

63,475

5,634,822

Depreciation

At 1 November 2022

27,669

2,026,616

148,354

34,995

2,237,634

Charge for the year

3,688

454,658

19,336

3,052

480,734

Eliminated on disposal

-

(371,267)

(3,000)

-

(374,267)

At 31 October 2023

31,357

2,110,007

164,690

38,047

2,344,101

Carrying amount

At 31 October 2023

12,728

3,171,782

80,783

25,428

3,290,721

At 31 October 2022

11,616

1,312,279

100,119

28,480

1,452,494

 

Jays Logistics (South West) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Lorries and trailers

2,250,353

922,569

     

Restriction on title and pledged as security

Lorries and trailers with a carrying amount of £2,250,353 (2022 - £922,569) has been pledged as security for hire purchase contracts.

12

Investment properties

2023
 £

At 1 November 2022

238,334

There has been no valuation of investment property by an independent valuer. The properties are residential and the director is confident, having assessed the local market, that the carrying value is materially consistent with their fair value.

13

Investments

2023
£

2022
£

Investments in associates

25

25

Associates

£

Cost

At 1 November 2022

25

Provision

Carrying amount

At 31 October 2023

25

At 31 October 2022

25

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

 

Jays Logistics (South West) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Keedwell (Scotland) Holdings Limited

Goodwood House, Blackbrook Park Avenue, Taunton, Somerset, United Kingdom, TA1 2PX

Ordinary

50%

50%

 

England and Wales

     

Associate undertakings

Keedwell (Scotland) Holdings Limited

The principal activity of Keedwell (Scotland) Holdings Limited is a holding company.

 

Jays Logistics (South West) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

14

Debtors

Note

2023
 £

2022
 £

Trade debtors

 

2,013,960

1,759,921

Amounts owed by associated undertakings

 

1,771,421

1,693,912

Other debtors

 

111,877

160,600

Prepayments

 

136,153

90,191

Corporation tax

10

218,868

78,183

   

4,252,279

3,782,807

Less non-current portion

 

(73,500)

(160,000)

Total current trade and other debtors

 

4,178,779

3,622,807

 

Jays Logistics (South West) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

Details of non-current trade and other debtors

£73,500 (2022 -£160,000) of other debtors is classified as non current. This relates to a loan which is due for repayment by 30 June 2025. The loan is interest free.

15

Cash and cash equivalents

2023
£

2022
£

Cash on hand

9

9

Cash at bank

1,983,893

2,298,004

1,983,902

2,298,013

16

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

18

571,187

297,148

Trade creditors

 

670,195

593,110

Social security and other taxes

 

66,366

262,334

Other creditors

 

91,258

325,788

Accrued expenses

 

125,165

106,373

 

1,524,171

1,584,753

Due after one year

 

Loans and borrowings

18

1,419,602

419,853

17

Provisions for liabilities

Deferred tax
£

Total
£

At 1 November 2022

342,862

342,862

Additional provisions

214,241

214,241

At 31 October 2023

557,103

557,103

 

Jays Logistics (South West) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

18

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Hire purchase contracts

571,187

297,148

2023
£

2022
£

Non-current loans and borrowings

Hire purchase contracts

1,419,602

419,853

Hire purchase contracts are denominated in sterling with a nominal interest rate of between 1.5% and 4%. The carrying amount at year end is £1,990,789 (2022 - £717,001).

Hire purchase contracts are secured on the lorries and trailers they are financing and are repayable in monthly instalments over 3 to 6 years from the date they are advanced. The group uses hire purchase contracts in order to acquire lorries and trailers. There are purchase options within the contracts, which are at the option of the lessee.

19

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The company has entered into a cross guarantee with Keedwell (Scotland) Holdings Limited and Keedwell (Scotland) Limited against its associate's bank borrowings. At the year-end the amount is £nil (2022: £nil).

20

Analysis of changes in net debt

At 1 November 2022
£

Financing cash flows
£

New finance leases
£

At 31 October 2023
£

Cash and cash equivalents

Cash

2,298,013

(314,111)

-

1,983,902

Borrowings

Lease liabilities

(717,001)

363,659

(1,637,447)

(1,990,789)

 

1,581,012

49,548

(1,637,447)

(6,887)

 

Jays Logistics (South West) Limited

Notes to the Financial Statements
for the Year Ended 31 October 2023

21

Related party transactions

Summary of transactions with entities with joint control or significant interest

During the year the company generated £9,957 (2022 - £10,372) in turnover and made purchases of £nil (2022 - £160,920) from entities with joint control or significant interest.

The company maintains interest free loan accounts with entities with joint control or significant interest which are repayable on demand. At the balance sheet date the company was owed £10,000 (2022 - £74,821) from entities with joint control or significant interest and the amounts are included within debtors as amounts owed by group undertakings.

The company maintains interest bearing loan accounts with entities with joint control or significant interest which are repayable on demand. During the year the company received interest of £20,088 (2022 - £23,506) and at the balance sheet date the balance due from these entities was £1,761,421 (2022 - £1,619,091) and these amounts are included within debtors as amounts owed by group undertakings.

 

Summary of transactions with other related parties

During the year the company generated £26,728 (2022 - £nil) in turnover and made purchases of £2,467,694 (2022 - £3,020,943) from entities controlled by one of the shareholders. At the year end the company owed £241,683 (2022 - £502,586) to these entities.
 

22

Parent and ultimate parent undertaking

There is no ultimate controlling party.

23

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £49,658 (2022 - £52,845).