Company registration number 11176398 (England and Wales)
JOHNSONS HOLDINGS SOUTH EAST LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 AUGUST 2023
JOHNSONS HOLDINGS SOUTH EAST LIMITED
COMPANY INFORMATION
Directors
I T Johnson
Company number
11176398
Registered office
3 Lloyd Road
Broadstairs
Kent
United Kingdom
CT10 1HY
Auditor
Levicks Audit Services Limited
West Hill
61 London Road
Maidstone
Kent
ME16 8TX
JOHNSONS HOLDINGS SOUTH EAST LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Group statement of income and retained earnings
11
Group balance sheet
12
Company balance sheet
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 33
JOHNSONS HOLDINGS SOUTH EAST LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 AUGUST 2023

The directors present the strategic report for the year ended 30 August 2023.

 

The financial year presented both challenges and opportunities for the company. Amid economic uncertainty, driven by Brexit, post-pandemic shifts in consumer behaviour, and broader financial pressures, we have focused on maintaining our operational resilience, responding dynamically to market changes, and focused upon positioning the company for future growth.

Principal Activities

The company specialises in the supply, installation and aftercare of extra space solutions, wellness products, and premium leisure goods. We cater to a discerning consumer base that values quality and service, innovation, and enhanced living environments. Our diverse product offerings are designed to meet the evolving needs of our customers, particularly as they increasingly seek to improve their home and lifestyle spaces. The company conducts business from 18 retail outlets predominantly around the south-east which demonstrate the offered goods to the consumer, and 4 operational centres.

Garden Rooms

We offer high-quality garden rooms, home offices, living space solutions, outdoors, providing additional living space without the need for major renovations. These products are particularly popular among customers working from home or seeking to create multifunctional spaces that enhance both comfort and functionality.

Wellness Products

Our range of wellness products includes premium hot tubs, saunas, and home spa solutions. These offerings cater to the growing consumer interest in health and well-being, enabling customers to create relaxing and rejuvenating environments within their homes.

Premium Leisure Goods

In addition to our core offerings, we provide a curated range of premium leisure goods that enhance home life, aligning with our broader mission to deliver high-quality products that meet lifestyle needs.

After-sales Product Offerings

We have broadened our range of chargeable after-sales services, including extended warranties, maintenance services, and additional parts and accessories. These offerings are designed to protect and enhance our customers’ investments, reinforcing our commitment to long-term value and customer satisfaction. With a renewed focus on “repair” instead of “replace” this is a fast growth sector.

- 1 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023

Business Review

Financial Performance

The financial year was marked by challenges, including the cost of living crisis, Brexit-related disruptions, and shifts in consumer spending behaviour. Wage increases driven by government intervention, a tighter labour market, along with higher logistics costs, added pressure to our profit margins. However, through stringent cost management, operational restructuring, and strategic pricing adjustments, we successfully navigated these challenges and maintained steady revenue streams. The directors consider it a significant achievement to have turned a profit during such a turbulent period.

Operational Performance

Our operational focus was on maintaining efficiency and resilience amidst external disruptions. Retaining a skilled workforce through engagement initiatives and necessary wage adjustments was crucial in sustaining operations across our 18 branches and 4 operational centres. We invested in infrastructure improvements, including consolidating our administrative workforce into a purpose-designed premises, and began implementing a new Customer Relationship Management (CRM) system to enhance customer interactions and operational efficiency.

Immediate cost saving measures were balanced with strategic investments in future growth, including the retention and development of key personnel in the latter half of the year, ensuring our agility and preparedness for future market opportunities. Product development received significantly more attention, and continues to do so as a priority. Staff morale and teamwork has been given high priority.

Market and Industry Environment

The market and industry environment during the financial year was characterised by significant shifts. Brexit’s impact on labour availability and logistics costs presented challenges, while changes in consumer behaviour post-pandemic continued to reshape market dynamics. The ongoing trend of working from home remains a key influence, driving interest in home improvement, though economic pressures have led to more cautious spending.

The industry has also seen a surge in small operators, introducing fresh competition and accelerating the shift towards a more modern aesthetic. Subsequent downturns in trade is seeing the gradual return to normal levels. This market volatility has started to create opportunities for established and reliable companies like ours to strengthen our market position. As less stable competitors exit the market, we are well-placed to capture their market share and expand our customer base.

Our reputation for reliability and good honest business has increasingly made us a preferred partner for customers and suppliers alike. This preference provides us with a competitive edge, as we benefit from stronger relationships, further enhancing our operational resilience.

Opportunities for expansion have also emerged within leading garden centre chains. The decrease in demand for non-essential goods has made retail space more available, and we are exploring the potential to leverage concession spaces as a source of unearned income, adapting to market changes and extending our reach.

Principal Risks and Uncertainties

The principal risks facing the company are linked to broader economic factors, particularly the ongoing cost of living crisis and rising interest rates, which could influence consumer spending on discretionary items.

Despite these challenges, our sectors have demonstrated resilience. Continued interest in home improvement, driven by the work-from-home trend, ensures strong demand for our products. Our focus on high-quality and innovative solutions positions us well to meet consumer needs, even amid economic uncertainty.

Global conflicts and geopolitical tensions contribute to market uncertainty, which can erode consumer confidence. However, our diverse product offerings and strong market positioning have helped us to weather these uncertainties. We have implemented strategies emphasising flexibility and responsiveness, enabling us to maintain customer engagement and steady demand across our product lines.

- 2 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
Future Developments

Looking ahead, our company is focused on several key areas to drive growth and maintain competitiveness:

Team Development

In the face of the changing habits and trends within the workforce, the company has escalated the importance of motivation, engagement, teamwork and the personal development of principals and key members of staff especially, throughout the company.

Company Efficiencies

Operational efficiencies and further refinement, reducing administrative burden and waste and improving productivity through technology and processes.

Product Innovation

As one of the original innovators of the garden room concept, we remain committed to leading the industry with new, contemporary designs and technologies. We will continue to diversify our product range, particularly in the wellness and premium leisure sectors, and broaden our after-sales offerings to provide greater value and support to our customers.

Supplier Relationships and improved purchasing

We continue to strengthen relationships with key suppliers, securing favourable terms and ensuring the timely availability of materials and products. This focus will enhance our operational resilience and enable us to pass on benefits to our customers through competitive pricing and superior service. New products and materials will be sourced more aggressively in the market place, facilitated by using invested staff in departments across the company.

Digital Marketing and Web Development

We recognise the importance of strengthening our digital presence. We will enhance our digital marketing strategies and develop our web platforms to provide a superior user experience. This includes optimising website design, improving navigation, and integrating features like personalised recommendations and virtual consultations to increase online engagement and drive conversions.

Sustainability Initiatives

We are committed to sustainability and will explore initiatives to reduce our environmental impact, including the use of sustainable materials, optimising our supply chain, and implementing energy-saving measures, in both our product offerings and operational activities.

Resilience and Adaptability

We will maintain a dynamic and flexible approach to our business strategy, closely monitoring market trends and consumer sentiment to respond swiftly to any changes. This agility will allow us to thrive in a competitive environment and safeguard the long-term success of the company.

Market Expansion

We plan to capitalise on emerging opportunities within leading garden centre chains by expanding through strategic concession spaces. We will also explore other high-potential markets where our offerings align with consumer demand trends.

Summary

The directors, upon reflection, believe that the company has shown dynamic resilience and performed well despite the challenges faced in the period. The disruption of the pandemic period and its influences to subsequent years not withstanding, there are signs of a gradual improvement in the economy that will ultimately lead to consumer confidence levels required to enhance profits. A strong management team is united in the vision that strategic initiatives developed towards the end of the financial year will position the company for continued growth and success. By re-focusing on the strengths of the company including customer service, product innovation, market development and operational excellence, we are well-prepared to navigate the challenges ahead and use our prominent position within this niche marketplace to capitalise on opportunities as the market evolves.

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JOHNSONS HOLDINGS SOUTH EAST LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023

On behalf of the board

I T Johnson
Director
30 August 2024
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JOHNSONS HOLDINGS SOUTH EAST LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 AUGUST 2023

The directors present their annual report and financial statements for the year ended 30 August 2023.

Principal activities

The principal activity of the company and group continued to be that of a holding company.

Results and dividends

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

Ordinary dividends were paid amounting to £200,000. 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:

I T Johnson
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

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
I T Johnson
30 August 2024
- 5 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 AUGUST 2023

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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

- 6 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JOHNSONS HOLDINGS SOUTH EAST LIMITED
Opinion

We have audited the financial statements of Johnsons Holdings South East Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 August 2023 which comprise the group statement of income and retained earnings, the group balance sheet, the company balance sheet, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- 7 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JOHNSONS HOLDINGS SOUTH EAST LIMITED
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

- 8 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JOHNSONS HOLDINGS SOUTH EAST LIMITED

• the nature of the industry and sector, control environment and business performance including the design of remuneration policies, key drivers for directors’ remuneration and bonus levels

 

• results of our enquiries of management and assessment of the risks of irregularities;

 

• any matters we identified having obtained and reviewed the 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 non-compliance with laws and;

 

• the matters discussed among the audit engagement team including significant component audit teams and relevant internal specialists, including tax, valuations, IT and financial instruments specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

 

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 revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls.

 

We also obtained an understanding of the legal and regulatory frameworks that 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, Listing Rules, patent law, tax legislation and pensions legislation.

 

 

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. These included employment and minimum wage legislation, health, safety and the environment (“HSE”) and environmental regulations. The audit partner will assess the auditor to ensure they are competent in identifying irregularities and fraud by ensuring continous professional development is up to date, along with reviewing audit planning to ensure significant areas are being audited at the appropriate level of risk.

- 9 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JOHNSONS HOLDINGS SOUTH EAST LIMITED

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

 

We communicate with those charged with governance regarding, among other matters, the planned scope and

timing of the audit and significant audit findings, including any significant deficiencies in internal control that we

identify during our audit.

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 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.

Mr Jon Williamson FCA
30 August 2024
For and on behalf of Levicks Audit Services Limited
Chartered Accountants
Statutory Auditor
West Hill
61 London Road
Maidstone
Kent
ME16 8TX
- 10 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
GROUP STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 AUGUST 2023
2023
2022
Notes
£
£
Turnover
3
17,177,615
19,730,215
Cost of sales
(11,897,124)
(13,738,041)
Gross profit
5,280,491
5,992,174
Administrative expenses
(5,057,597)
(5,187,540)
Other operating income
-
7,925
Operating profit
4
222,894
812,559
Interest receivable and similar income
6
-
0
7
Interest payable and similar expenses
7
(170,954)
(51,741)
Profit before taxation
51,940
760,825
Tax on profit
8
(35,952)
(143,215)
Profit for the financial year
15,988
617,610
Retained earnings brought forward
2,208,898
2,291,288
Dividends
(200,000)
(700,000)
Retained earnings carried forward
2,024,886
2,208,898
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
- 11 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
GROUP BALANCE SHEET
AS AT
30 AUGUST 2023
30 August 2023
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
260,000
260,000
Tangible assets
11
3,925,775
3,941,827
4,185,775
4,201,827
Current assets
Stocks
13
4,075,150
3,957,068
Debtors
14
933,284
816,850
Cash at bank and in hand
643,399
524,065
5,651,833
5,297,983
Creditors: amounts falling due within one year
15
(6,139,732)
(6,237,006)
Net current liabilities
(487,899)
(939,023)
Total assets less current liabilities
3,697,876
3,262,804
Creditors: amounts falling due after more than one year
16
(1,091,325)
(364,815)
Provisions for liabilities
Provisions
19
66,057
201,333
Deferred tax liability
20
513,608
485,758
(579,665)
(687,091)
Net assets
2,026,886
2,210,898
Capital and reserves
Called up share capital
22
2,000
2,000
Profit and loss reserves
2,024,886
2,208,898
Total equity
2,026,886
2,210,898

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 30 August 2024 and are signed on its behalf by:
30 August 2024
I T Johnson
Director
Company registration number 11176398 (England and Wales)
- 12 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
COMPANY BALANCE SHEET
AS AT
30 AUGUST 2023
30 August 2023
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
3,100
3,100
Current assets
Debtors
14
1,110,425
349,900
Cash at bank and in hand
868
-
0
1,111,293
349,900
Creditors: amounts falling due within one year
15
(71,662)
(8,886)
Net current assets
1,039,631
341,014
Net assets
1,042,731
344,114
Capital and reserves
Called up share capital
22
2,000
2,000
Profit and loss reserves
1,040,731
342,114
Total equity
1,042,731
344,114

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £898,617 (2022 - £1,042,114 profit).

For the financial year ended 30 August 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 30 August 2024 and are signed on its behalf by:
30 August 2024
I T Johnson
Director
Company registration number 11176398 (England and Wales)
- 13 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 AUGUST 2023
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,063,537
1,384,901
Interest paid
(170,954)
(51,741)
Income taxes paid
(505,227)
(91,612)
Net cash inflow from operating activities
387,356
1,241,548
Investing activities
Purchase of tangible fixed assets
(700,607)
(1,716,667)
Proceeds from disposal of tangible fixed assets
42,872
63,867
Purchase of subsidiaries, net of cash acquired
-
(150,638)
Interest received
-
0
7
Net cash used in investing activities
(657,735)
(1,803,431)
Financing activities
Proceeds from new bank loans
929,000
-
Repayment of bank loans
(203,645)
(141,565)
Payment of finance leases obligations
(135,642)
(283,549)
Dividends paid to equity shareholders
(200,000)
(700,000)
Net cash generated from/(used in) financing activities
389,713
(1,125,114)
Net increase/(decrease) in cash and cash equivalents
119,334
(1,686,997)
Cash and cash equivalents at beginning of year
524,065
2,211,062
Cash and cash equivalents at end of year
643,399
524,065
- 14 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 AUGUST 2023
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
25
(699,132)
(349,900)
Investing activities
Proceeds from disposal of joint ventures
-
0
(1,100)
Dividends received
900,000
1,050,000
Net cash generated from investing activities
900,000
1,048,900
Financing activities
Dividends paid to equity shareholders
(200,000)
(700,000)
Net cash used in financing activities
(200,000)
(700,000)
Net increase/(decrease) in cash and cash equivalents
868
(1,000)
Cash and cash equivalents at beginning of year
-
0
1,000
Cash and cash equivalents at end of year
868
-
0
- 15 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 AUGUST 2023
1
Accounting policies
Company information

Johnsons Holdings South East Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 3 Lloyd Road, Broadstairs, Kent, United Kingdom, CT10 1HY.

 

The group consists of Johnsons Holdings South East Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Johnsons Holdings South East Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 August 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

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

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JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
1
Accounting policies
(Continued)

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

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

1.5
Turnover

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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

1.6
Intangible fixed assets - goodwill

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

 

Goodwill - No longer amortised

 

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

1.7
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.

- 17 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
1
Accounting policies
(Continued)

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

Freehold land and buildings
No longer depreciated
Leasehold land and buildings
10% straight line
Plant and equipment
15% reducing balance
Display cabins
20% straight line
Fixtures and equipment
15% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

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

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

- 18 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
1
Accounting policies
(Continued)
1.9
Impairment of fixed assets

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

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks
- 19 -

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.

1.11
Cash and cash equivalents

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

JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
1
Accounting policies
(Continued)
1.12
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include 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.

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 group 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 group after deducting all of its liabilities.

- 20 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
1
Accounting policies
(Continued)
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

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

1.14
Taxation

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

Current tax

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

- 21 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
1
Accounting policies
(Continued)
Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Provisions

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

 

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

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

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

1.18
Leases

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 leased asset are consumed.

- 22 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
1
Accounting policies
(Continued)
1.19
Government grants

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

 

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

1.20

Provision for warranty claims

Provision for warranty claims are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provision for warranty claims are recognised as a liability on the balance sheet and the amount of the provision as an expense. Provision for warranty claims are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. The entity recognises a contract liability in respect of a free servicing arrangement whereby the first service on a specified delivery package is paid for by the entity.

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
17,177,615
19,730,215
2023
2022
£
£
Other revenue
Interest income
-
7
Grants received
-
4,160
- 23 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
25,499
41,980
Government grants
-
(4,160)
Fees payable to the group's auditor for the audit of the group's financial statements
-
-
Depreciation of owned tangible fixed assets
659,793
668,609
Loss on disposal of tangible fixed assets
13,994
17,634
Impairment of intangible assets
-
0
139,899
Operating lease charges
14,508
57,550
5
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Direct
144
160
-
-
Admin
14
23
-
-
Director
3
2
-
-
Total
161
185
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,120,374
5,165,988
-
0
-
0
Social security costs
522,311
541,563
-
-
Pension costs
103,230
100,186
-
0
-
0
5,745,915
5,807,737
-
0
-
0
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
-
0
7
- 24 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
6
Interest receivable and similar income
(Continued)
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
7
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
63,033
16,324
Other interest on financial liabilities
63,499
7,793
126,532
24,117
Other finance costs:
Interest on finance leases and hire purchase contracts
44,422
27,624
Total finance costs
170,954
51,741
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
46,539
Adjustments in respect of prior periods
(4,385)
-
0
Total current tax
(4,385)
46,539
Deferred tax
Origination and reversal of timing differences
40,337
96,676
Total tax charge
35,952
143,215
- 25 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
8
Taxation
(Continued)

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
51,940
760,825
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
9,868
144,557
Tax effect of expenses that are not deductible in determining taxable profit
(57,654)
32,693
Permanent capital allowances in excess of depreciation
47,786
(130,711)
Deferred tax charge/(credit)
40,337
96,676
Adjustment for prior year corporation tax
(4,385)
-
0
Taxation charge
35,952
143,215
9
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
200,000
700,000
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 31 August 2022 and 30 August 2023
524,899
Amortisation and impairment
At 31 August 2022 and 30 August 2023
264,899
Carrying amount
At 30 August 2023
260,000
At 30 August 2022
260,000
The company had no intangible fixed assets at 30 August 2023 or 30 August 2022.

More information on impairment movements in the year is given in note .

- 26 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Display cabins
Fixtures and equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 31 August 2022
1,210,409
954,995
89,890
747,604
2,221,777
1,539,237
6,763,912
Additions
-
0
-
0
-
0
196,283
254,704
249,620
700,607
Disposals
-
0
-
0
-
0
(41,283)
(17,570)
(175,509)
(234,362)
At 30 August 2023
1,210,409
954,995
89,890
902,604
2,458,911
1,613,348
7,230,157
Depreciation and impairment
At 31 August 2022
27,500
468,689
51,514
491,349
888,119
894,914
2,822,085
Depreciation charged in the year
-
0
93,115
5,757
110,834
236,636
213,451
659,793
Eliminated in respect of disposals
-
0
-
0
-
0
(35,346)
(6,780)
(135,370)
(177,496)
At 30 August 2023
27,500
561,804
57,271
566,837
1,117,975
972,995
3,304,382
Carrying amount
At 30 August 2023
1,182,909
393,191
32,619
335,767
1,340,936
640,353
3,925,775
At 30 August 2022
1,182,909
486,306
38,376
256,255
1,333,658
644,323
3,941,827
The company had no tangible fixed assets at 30 August 2023 or 30 August 2022.
- 27 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in joint ventures
-
0
-
0
3,100
3,100
Movements in fixed asset investments
Company
Shares in joint ventures
£
Cost or valuation
At 31 August 2022 and 30 August 2023
3,100
Carrying amount
At 30 August 2023
3,100
At 30 August 2022
3,100
13
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
4,075,150
3,957,068
-
-
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
456,502
387,995
-
0
-
0
Amounts owed by group undertakings
-
-
1,110,425
349,900
Other debtors
232,772
216,955
-
0
-
0
Prepayments and accrued income
223,777
179,180
-
0
-
0
913,051
784,130
1,110,425
349,900
Amounts falling due after more than one year:
Deferred tax asset (note 20)
20,233
32,720
-
0
-
0
Total debtors
933,284
816,850
1,110,425
349,900
- 28 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
17
77,113
158,410
-
0
-
0
Obligations under finance leases
18
227,676
283,176
-
0
-
0
Trade creditors
3,425,817
3,149,961
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
-
0
5,966
Corporation tax payable
-
0
509,612
-
0
-
0
Other taxation and social security
1,979,985
1,359,918
-
-
Other creditors
359,805
719,776
71,662
2,920
Accruals and deferred income
69,336
56,153
-
0
-
0
6,139,732
6,237,006
71,662
8,886
16
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
17
835,749
29,097
-
0
-
0
Obligations under finance leases
18
255,576
335,718
-
0
-
0
1,091,325
364,815
-
-
17
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
912,862
187,507
-
0
-
0
Payable within one year
77,113
158,410
-
0
-
0
Payable after one year
835,749
29,097
-
0
-
0

 

 

- 29 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
18
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
227,676
283,176
-
0
-
0
In two to five years
255,576
335,718
-
0
-
0
483,252
618,894
-
-

Finance lease payments represent rentals payable by the company or group 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 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
66,057
201,333
-
-
Movements on provisions:
Group
£
At 31 August 2022
201,333
Additional provisions in the year
(135,276)
At 30 August 2023
66,057
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
513,608
485,758
-
-
Tax losses
-
-
20,233
32,720
513,608
485,758
20,233
32,720
The company has no deferred tax assets or liabilities.
- 30 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
20
Deferred taxation
(Continued)
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 31 August 2022
453,038
-
Charge to profit or loss
40,337
-
Liability at 30 August 2023
493,375
-

 

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
103,230
100,186

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

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,000
2,000
2,000
2,000
23
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
731,974
711,066
-
-
Between two and five years
812,386
731,966
-
-
In over five years
941,667
-
-
-
2,486,027
1,443,032
-
-
- 31 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
24
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
15,988
617,610
Adjustments for:
Taxation charged
35,952
143,215
Finance costs
170,954
51,741
Investment income
-
0
(7)
Loss on disposal of tangible fixed assets
13,994
2,781
Amortisation and impairment of intangible assets
-
139,899
Depreciation and impairment of tangible fixed assets
659,793
660,869
Decrease in provisions
(135,276)
(135,156)
Movements in working capital:
(Increase)/decrease in stocks
(118,082)
466,483
(Increase)/decrease in debtors
(128,921)
1,039,123
Increase/(decrease) in creditors
549,135
(1,601,657)
Cash generated from operations
1,063,537
1,384,901
25
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
898,617
1,042,114
Adjustments for:
Investment income
(900,000)
(1,050,000)
Movements in working capital:
Increase in debtors
(760,525)
(349,900)
Increase in creditors
62,776
7,886
Cash absorbed by operations
(699,132)
(349,900)
- 32 -
JOHNSONS HOLDINGS SOUTH EAST LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 AUGUST 2023
26
Analysis of changes in net debt - group
2023
£
Opening net funds/(debt)
Cash and cash equivalents
524,065
Loans
(187,507)
Obligations under finance leases
(618,894)
(282,336)
Changes in net debt arising from:
Cash flows of the entity
(470,379)
Closing net funds/(debt) as analysed below
(752,715)
Closing net funds/(debt)
Cash and cash equivalents
643,399
Loans
(912,862)
Obligations under finance leases
(483,252)
(752,715)
27
Analysis of changes in net debt - company
2023
£
Opening net debt
Changes in net debt arising from:
Cash flows of the entity
868
Closing net funds as analysed below
868
Closing net funds
Cash and cash equivalents
868
- 33 -
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