Company registration number 01878959 (England and Wales)
JOINTLINE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
JOINTLINE LIMITED
COMPANY INFORMATION
Directors
B J Meddings
C L Phipps
S L Phipps
G Massey
W A J Meddings
Secretary
W A J Meddings
Company number
01878959
Registered office
Airfield View
Camp Road
Witham St Hughs
Lincoln
LN6 9TW
Auditor
UHY Hacker Young Manchester LLP
St James Building
79 Oxford Street
Manchester
M1 6HT
Business address
Airfield View
Camp Road
Witham St Hughs
Lincoln
LN6 9TW
Bankers
Barclays Bank plc
15 Colmore Row
Birmingham
B3 2BH
JOINTLINE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 22
JOINTLINE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

Jointline Limited delivered a strong performance for the year ended 31 March 2024, generating revenues of £16.2m and a gross profit of £3.9m representing an increase of £3.1m and £1.5m on the prior year respectively. The increases in turnover and gross margin can be attributed to a particularly strong performance across the Civils & Maintenance Division, the restructure and CAPEX investment in the Airfield Division and the continued development of the Highways Division.

 

Overheads were controlled well in the year at £3.1m, representing a £0.6m increase on the prior year, with the increase predominantly comprising additional employees due to the levels of growth currently being experienced. A profit before tax of £0.8m was generated (prior year loss before tax of £0.2m).  EBITDA of £1.3m was delivered (prior year EBITDA of £0.4m).

Looking Ahead

The business continues to trade healthily and is experiencing a sustained period of growth. Existing customer relationships are being enhanced and new customers are being secured. Product range is being expanded and the ongoing investment program into plant and equipment has allowed for additional revenue streams too. High margin, niche works are being focused on as a priority. Strong levels of turnover and profitability are being delivered year to date for the year ending 31 March 2025.

Divisional Level Review

The Airfield Division performed steadily following its restructure during the start of the financial year. The initial CAPEX programme is also largely completed. The division is now in a position whereby it is set to deliver high levels of growth and profitability. Several key schemes have commenced as planned and a sales drive is currently occurring allowing for several new customers to be secured.

The Highways Division performed in line with expectations following the prior year reduction in the level of National Highways spend with the Division. The Division has since sought to develop several strategic relationships across the private sector to replace the prior National Highways spend and is trading promisingly for the year ending 31 March 2025. A key local authority framework has been secured, however pressure on the local authority budgets remains as ever.

The Civils & Maintenance Division performed beyond expectation delivering several key projects throughout the year (now successfully completed). The pipeline remains strong with further growth in the division anticipated in 2024 and beyond. Several key projects are in the pipelines, with a large proportion of then reoccurring income.

Inflationary Pressures

The Consumers Price Index has again risen throughout 2024. The business has been working with its clients and suppliers to alleviate the impact of these increases and in many cases has had no choice but to pass such price increases on rather than absorb them. 

Credit Risk

The company manages its debt and cash positions tightly, utilising financial reports, credit scores and payment profiles of existing customers. New customers are approved by directors and credit limits are set and agreed with the Credit Controller. Aged debt and short term cash flow is reviewed weekly.

On behalf of the board

W A J Meddings
Director
16 August 2024
- 1 -
JOINTLINE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity during the year continued to be that of airfield and highway marking, grooving and maintenance. A review of the business is provided in the Strategic Report on page 1.

Results and dividends

The results for the year are set out on page 7.

The directors do not recommend the payment of an ordinary dividend.
Directors

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

B J Meddings
C L Phipps
S L Phipps
G Massey
W A J Meddings
Financial instruments

The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from its trading activities which are conducted primarily in sterling. The company does not enter into any complex financial instruments or forwards as hedging transactions.

Future developments

A summary of the future developments of the company is provided within the strategic report on page 1.

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.

- 2 -
JOINTLINE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
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.

Going Concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis in preparing the annual financial statements.

 

On behalf of the board
W A J Meddings
Director
16 August 2024
- 3 -
JOINTLINE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF JOINTLINE LIMITED
Opinion
- 4 -

We have audited the financial statements of Jointline Limited (the 'company') for the year ended 31 March 2024 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:

JOINTLINE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF JOINTLINE LIMITED (CONTINUED)
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.

Extent to which the audit was 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.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, we considered the following:

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing and recognition of work in progress and, in common with all audits under ISAs (UK), the risk of management override.

 

We also obtained an understanding of the legal and regulatory frameworks the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

- 5 -
JOINTLINE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF JOINTLINE LIMITED (CONTINUED)

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

Our procedures to respond to risks identified included the following:

 

 

There are inherent limitations in the audit procedures described above 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. Also, 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 deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Kevin Blakemore FCCA
Senior Statutory Auditor
For and on behalf of UHY Hacker Young Manchester LLP
16 August 2024
Chartered Accountants
Statutory Auditor
St James Building
79 Oxford Street
Manchester
M1 6HT
- 6 -
JOINTLINE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
2024
2023
Notes
£
£
Turnover
3
16,226,508
13,137,270
Cost of sales
(12,241,973)
(10,602,818)
Gross profit
3,984,535
2,534,452
Administrative expenses
(3,121,726)
(2,523,021)
Operating profit before restructuring costs
862,809
11,431
Restructuring costs
4
-
0
(186,074)
Operating profit/(loss)
5
862,809
(174,643)
Interest receivable and similar income
8
1,129
1,261
Interest payable and similar expenses
9
(68,996)
(40,636)
Profit/(loss) before taxation
794,942
(214,018)
Tax on profit/(loss)
10
(35,410)
199,286
Profit/(loss) for the financial year
759,532
(14,732)

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

- 7 -
JOINTLINE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
80,609
85,856
Tangible assets
12
2,167,997
1,554,808
2,248,606
1,640,664
Current assets
Stocks
13
377,256
418,637
Debtors
14
8,459,554
7,499,688
Cash at bank and in hand
2,306
156
8,839,116
7,918,481
Creditors: amounts falling due within one year
15
(2,804,259)
(2,323,207)
Net current assets
6,034,857
5,595,274
Total assets less current liabilities
8,283,463
7,235,938
Creditors: amounts falling due after more than one year
16
(760,462)
(507,879)
Provisions for liabilities
Deferred tax liability
19
35,410
-
0
(35,410)
-
Net assets
7,487,591
6,728,059
Capital and reserves
Called up share capital
20
250,000
250,000
Profit and loss reserves
21
7,237,591
6,478,059
Total equity
7,487,591
6,728,059
The financial statements were approved by the board of directors and authorised for issue on 16 August 2024 and are signed on its behalf by:
W A J Meddings
Director
Company registration number 01878959 (England and Wales)
- 8 -
JOINTLINE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
250,000
6,492,791
6,742,791
Year ended 31 March 2023:
Loss and total comprehensive income
-
(14,732)
(14,732)
Balance at 31 March 2023
250,000
6,478,059
6,728,059
Year ended 31 March 2024:
Profit and total comprehensive income
-
759,532
759,532
Balance at 31 March 2024
250,000
7,237,591
7,487,591
- 9 -
JOINTLINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
Company information

Jointline Limited is a private company limited by shares incorporated in England and Wales. The registered office is Airfield View, Camp Road, Witham St Hughs, Lincoln, LN6 9TW. The principal activity during the year continued to be that of airfield and highway marking, grooving and maintenance.

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. 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:

 

 

The financial statements of the company are consolidated in the financial statements of Phipps & Company Limited. These consolidated financial statements are available from its registered office, Mathon Court. Mathon, Malvern, Worcestershire WR13 5NZ.

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
- 10 -

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

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

JOINTLINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)

Amortisation 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:

Software
10% straight line
1.5
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:

Leasehold improvements
4 to 10 years straight line
Plant & machinery
3 - 10 years straight line or 25% reducing balance basis
Fixtures, fittings & equipment
5 years straight line or 25% reducing balance basis
Motor vehicles
5 - 10 years straight line or 25% reducing balance basis
IT Equipment
2 - 5 years straight line

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.

1.6
Impairment of fixed assets

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

1.7
Stocks
- 11 -

Stocks are stated at the lower of cost (on a first in, first out basis) 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.

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.

1.8
Cash and cash equivalents

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

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.

JOINTLINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
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.

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.

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 finance lease liabilities, 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.

1.10
Equity instruments

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

1.11
Taxation

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

- 12 -
JOINTLINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
Current tax

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

Deferred tax

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

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
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.

1.13
Retirement benefits

The company operates defined contribution schemes for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.14
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, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
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.

- 13 -
JOINTLINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
1.16

Amounts recoverable on contracts

Amounts recoverable on contracts are included in debtors and are stated at the net sales value of the work done after provision for contingencies, recoverability and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.

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.

 

Estimating the useful lives of property, plant and equipment

The company estimates the useful lives of property, plant and equipment based over the period which the assets are expected to be available for use. In addition, the company estimates the residual values of each asset on an asset by asset basis. The estimated useful lives and residual values are reviewed periodically and are updated if expectations differ from previous estimates. Based on the management's assessments as at 31 March 2024, there is no significant change in the estimated useful lives of those assets during the year which had not already been fully depreciated.

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Rendering of services
16,226,508
13,137,270
2024
2023
£
£
Turnover analysed by geographical market
UK
16,179,523
13,137,270
Rest of Europe
46,985
-
16,226,508
13,137,270
- 14 -
JOINTLINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
4
Restructuring costs
2024
2023
£
£
Expenditure
-
186,074

During the prior year the company incurred exceptional one-off costs relating to a number of legacy matters that have been addressed by the new senior management team.

5
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(424)
2,130
Fees payable to the company's auditor for the audit of the company's financial statements
22,500
19,500
Depreciation of owned tangible fixed assets
205,620
182,422
Depreciation of tangible fixed assets held under finance leases
222,454
232,849
Profit on disposal of tangible fixed assets
(2,062)
(1,105)
Amortisation of intangible assets
16,372
16,094
Operating lease charges
387,541
316,106
6
Employees

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

2024
2023
Number
Number
Directors
5
6
Direct labour
94
85
Administration
16
22
Total
115
113

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,219,799
4,649,625
Social security costs
570,310
367,200
Pension costs
134,428
118,203
5,924,537
5,135,028
- 15 -
JOINTLINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
379,095
248,774
Company pension contributions to defined contribution schemes
28,250
14,978
407,345
263,752

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
199,811
88,291
Company pension contributions to defined contribution schemes
10,334
5,250

In addition to the above, the company paid £15,000 (2023 - £30,000) in respect of the directors of the parent company, Jointline Holdings Limited.

8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,129
1,261
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
7,985
-
Interest on finance leases and hire purchase contracts
61,011
40,636
68,996
40,636
10
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
-
0
403
- 16 -
JOINTLINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
35,410
-
0
Adjustment in respect of prior periods
-
0
(199,689)
Total deferred tax
35,410
(199,689)
Total tax charge/(credit)
35,410
(199,286)

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit/(loss) before taxation
794,942
(214,018)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
198,736
(40,663)
Tax effect of expenses that are not deductible in determining taxable profit
6,538
8,052
Change in unrecognised deferred tax assets
(169,864)
32,611
Under/(over) provided in prior years
-
0
403
Deferred tax adjustments in respect of prior years
-
0
(199,689)
Taxation charge/(credit) for the year
35,410
(199,286)
- 17 -
JOINTLINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Intangible fixed assets
Software
£
Cost
At 1 April 2023
160,966
Additions
11,125
At 31 March 2024
172,091
Amortisation and impairment
At 1 April 2023
75,110
Amortisation charged for the year
16,372
At 31 March 2024
91,482
Carrying amount
At 31 March 2024
80,609
At 31 March 2023
85,856
12
Tangible fixed assets
Leasehold improvements
Plant & machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
126,135
1,119,860
126,252
3,549,657
4,921,904
Additions
14,350
680,266
28,480
340,544
1,063,640
Disposals
-
0
-
0
(15,936)
(251,696)
(267,632)
At 31 March 2024
140,485
1,800,126
138,796
3,638,505
5,717,912
Depreciation and impairment
At 1 April 2023
35,336
656,848
71,714
2,603,198
3,367,096
Depreciation charged in the year
21,317
143,944
14,376
248,437
428,074
Eliminated in respect of disposals
-
0
-
0
(9,503)
(235,752)
(245,255)
At 31 March 2024
56,653
800,792
76,587
2,615,883
3,549,915
Carrying amount
At 31 March 2024
83,832
999,334
62,209
1,022,622
2,167,997
At 31 March 2023
90,799
463,012
54,538
946,459
1,554,808
- 18 -
JOINTLINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Tangible fixed assets
(Continued)

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

2024
2023
£
£
Plant & machinery
1,173,905
785,556
13
Stocks
2024
2023
£
£
Raw materials and consumables
377,256
418,637

Stocks are stated net of provisions of £3,889 (2023: £3,890).

14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,689,131
2,350,991
Gross amounts owed by contract customers
569,699
256,864
Amounts owed by group undertakings
4,705,547
4,621,762
Other debtors
70,690
62,328
Prepayments and accrued income
424,487
207,743
8,459,554
7,499,688

Included within trade debtors is a bad debt provision of £10,149 (2023 - £10,149), bad debts written off to profit and loss amounted to £492 (2023 - £86,708) for the year.

 

The amount owed by group undertakings is interest free, unsecured and repayable on demand.

15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
31,538
15,073
Obligations under finance leases
18
342,488
231,572
Trade creditors
1,764,317
1,483,662
Amounts owed to group undertakings
220,331
220,331
Corporation tax
2
2
Other taxation and social security
150,871
155,968
Other creditors
76,579
62,936
Accruals and deferred income
218,133
153,663
2,804,259
2,323,207
- 19 -
JOINTLINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Creditors: amounts falling due within one year
(Continued)

The hire purchase creditors are secured on the assets to which they relate.

16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
18
760,462
507,879
17
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
31,538
15,073
Payable within one year
31,538
15,073

The bank borrowings are secured on the assets of the company and by a composite guarantee involving other group companies.

18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
411,291
275,858
In two to five years
833,279
547,784
1,244,570
823,642
Less: future finance charges
(141,620)
(84,191)
1,102,950
739,451

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and are secured on the assets to which they relate. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

- 20 -
JOINTLINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
19
Deferred taxation

Deferred tax assets and liabilities are offset where the 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:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Fixed asset timing differences
144,755
6,456
Short term timing difference
(2,783)
(6,456)
Losses carried forward
(106,562)
-
35,410
-
2024
Movements in the year:
£
Liability at 1 April 2023
-
Charge to profit or loss
35,410
Liability at 31 March 2024
35,410

 

20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
250,000
250,000
250,000
250,000

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

21
Profit and loss reserves

Profit and loss account - includes all current and prior period retained profits and losses, net of dividends paid.

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
126,190
109,633

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.

- 21 -
JOINTLINE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
23
Financial commitments, guarantees and contingent liabilities

During the year, the company engaged in a long term contract for IT support services, cloud storage and software to December 2027. The total commitment at the reporting date in respect of this contract is £38,547 (2023: £49,019).

24
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
247,030
201,974
Between two and five years
562,064
380,491
In over five years
221,100
301,500
1,030,194
883,965
25
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
61,000
-
26
Related party transactions

The company has acted in accordance with FRS 102 paragraph 33.1A whereby wholly owned subsidiaries need not disclose related party transactions with other wholly owned subsidiaries of the same group.

27
Controlling party

The immediate parent company is Jointline Holdings Limited, a company registered in England and Wales.

The ultimate parent company is Phipps & Company Limited, a company registered in England and Wales. Phipps & Company Limited prepares group financial statements and copies can be obtained from the Mathon Court, Mathon, Malvern, Worcestershire, WR13 5NZ.

- 22 -
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