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Registration number: 08281995

JR Pet Products Ltd

Annual Report and Financial Statements

for the Year Ended 31 January 2024

 

JR Pet Products Ltd

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Financial Statements

15 to 29

 

JR Pet Products Ltd

Company Information

Directors

Mr J P Davies

Mrs R J Davies

Mr M J Williams

Registered office

Unit 1
Church Bank Industrial Estate
Llandovery
SA20 0BA

Accountants

LHP Carmarthen
Chartered Certified Accountants
Llys Deri
Parc Pensarn
Carmarthen
SA31 2NF

Auditors

Bevan Buckland LLP
Chartered Accountants and Statutory Auditors
Ground Floor Cardigan House
Castle Court
Swansea Enterprise Park
Swansea
SA7 9LA

 

JR Pet Products Ltd

Strategic Report for the Year Ended 31 January 2024

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

Principal activity

The principal activity of the company is selling of pet products.

Fair review of the business

JR Pet Products Ltd continues to go from strength to strength, achieving sales of £15.96 million, an increase of 9.5% on the prior year. Our unwavering commitment to producing high-quality, unique natural dog treats, coupled with exceptional customer service, remains at the core of our business model. With over 11,000 Trustpilot reviews and an impressive rating of 4.9 out of 5, we are incredibly proud of the reputation we’ve built. Furthermore, we are dedicated to being an exemplary employer and a positive influence within our community. Our team is our most valuable asset, and their contributions are integral to our success.

Our strategic investments in warehousing and bespoke systems have positioned us well for sustainable growth, reducing the need for further capital expenditures. This will enable JR Pet Products to grow to at least £35m without increasing investment.

The demand for premium natural products in the dog food and treats sector continues to rise. JR is gaining market share at a pace exceeding the overall sector, supported by a loyal and growing customer base, which includes thousands of independent retailers and hundreds of thousands of direct-to-consumer (D2C) customers.

We see significant potential for new product development. Our small but highly effective procurement team has been delivering outstanding results, and we are pleased to announce the upcoming launch of several innovative products later this year (2024).

Input cost increases have levelled off over the year, and in some cases, we’ve seen reductions. This is partly due to natural market adjustments and partly because we have, amongst other factors, leveraged our scale to secure better terms with logistics partners. The business remains debt-free, with substantial retained profits reflected in our cash balance. Maintaining a strong cash position and zero debt has always been our strategy, providing us with the stability to weather any challenges and the agility to seize new opportunities.

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

Financial KPIs

Unit

2024

2023

3 year Compound Annual Growth Rate (CAGR)

%

24.00

44.75

Net profit margin

%

37.00

32.00

Gross profit margin

%

54.00

52.00

Cash and cash equivalents, including current financial assets

£m

10.50

5.60

754 new business to business (B2B) customers
28,495 new direct to consumer (D2C) customers

 

JR Pet Products Ltd

Strategic Report for the Year Ended 31 January 2024

Principal risks and uncertainties

We remain vigilant in managing key risks, such as currency fluctuations, stock shortages, and price volatility. We are implementing measures to hedge against foreign exchange risks during specific periods and are working closely with suppliers to ensure consistent procurement prices.

Approved by the Board on 28 August 2024 and signed on its behalf by:

.........................................
Mr J P Davies
Director

   
     
 

JR Pet Products Ltd

Directors' Report for the Year Ended 31 January 2024

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

Directors of the company

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

Mr J P Davies

Mrs R J Davies

Mr M J Williams (appointed 31 October 2023)

Research and development

The company is always looking to diversify its’ product range and with a new modern warehouse recently built in Llandovery, the company is able to ensure its stock profile meets the demand of its customers. The company expects turnover to be in the region of £18m whilst maintaining its margins for the forthcoming year. To support this growth and scalability, JR Pet Products invests heavily in Research & Development, mainly through their in-house team of IT developers.

Disclosure of information to the auditors

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

Approved by the Board on 28 August 2024 and signed on its behalf by:

Mr J P Davies
Director

   
     
 

JR Pet Products Ltd

Statement of Directors' Responsibilities

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

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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

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

 

JR Pet Products Ltd

Independent Auditor's Report to the Members of JR Pet Products Ltd

Opinion

We have audited the financial statements of JR Pet Products Ltd (the 'company') for the year ended 31 January 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 January 2024 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

JR Pet Products Ltd

Independent Auditor's Report to the Members of JR Pet Products Ltd

Opinion on other matter prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then, design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

We discussed our audit independence complying with the Revised Ethical Standard 2019 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

enquiring of management, including obtaining and reviewing supporting documentation, concerning the Company's policies and procedures relating to;

 

JR Pet Products Ltd

Independent Auditor's Report to the Members of JR Pet Products Ltd

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 related to fraud or non-compliance with laws and regulations;

discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas; Indication of impairment and valuation estimates; and Revenue recognition;

obtaining an understanding of the legal and regulatory frameworks that the Company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the Company. The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.

 

In addition to the above, our procedures to respond to risks identified included the following:

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations;

enquiring of management concerning actual and potential litigation and claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;

assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and

evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

 

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

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

 

JR Pet Products Ltd

Independent Auditor's Report to the Members of JR Pet Products Ltd

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.

......................................
Llinos Williams (Senior Statutory Auditor)
For and on behalf of Bevan Buckland LLP,
Chartered Accountants and Statutory Auditors
Ground Floor Cardigan House
Castle Court
Swansea Enterprise Park
Swansea
SA7 9LA

3 September 2024

 

JR Pet Products Ltd

Profit and Loss Account for the Year Ended 31 January 2024

Note

2024
£

2023
£

Turnover

3

15,958,459

14,577,429

Cost of sales

 

(7,300,017)

(8,068,772)

Gross profit

 

8,658,442

6,508,657

Administrative expenses

 

(3,608,315)

(3,422,984)

Other operating income

4

194,116

1,498,580

Operating profit

6

5,244,243

4,584,253

Gain on financial assets at fair value through profit and loss

 

582,807

-

Other interest receivable and similar income

7

63,407

47,105

Interest payable and similar expenses

8

(11,901)

(56,240)

   

634,313

(9,135)

Profit before tax

 

5,878,556

4,575,118

Tax on profit

12

(1,282,871)

(948,270)

Profit for the financial year

 

4,595,685

3,626,848

The above results were derived from continuing operations.

 

JR Pet Products Ltd

Statement of Comprehensive Income for the Year Ended 31 January 2024

2024
£

2023
£

Profit for the year

4,595,685

3,626,848

Surplus on revaluation of other assets

-

179,254

Total comprehensive income for the year

4,595,685

3,806,102

 

JR Pet Products Ltd

(Registration number: 08281995)
Balance Sheet as at 31 January 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

13

334,448

376,254

Tangible assets

14

1,992,122

1,880,223

Investment property

15

368,000

368,000

 

2,694,570

2,624,477

Current assets

 

Stocks

17

2,382,596

1,918,970

Debtors

18

624,244

1,010,995

Other financial assets

16

8,511,709

4,383,462

Cash at bank and in hand

 

1,944,858

1,228,759

 

13,463,407

8,542,186

Creditors: Amounts falling due within one year

19

(1,957,589)

(1,174,824)

Net current assets

 

11,505,818

7,367,362

Total assets less current liabilities

 

14,200,388

9,991,839

Creditors: Amounts falling due after more than one year

19

(9,750)

(18,750)

Provisions for liabilities

20

(166,126)

(194,973)

Net assets

 

14,024,512

9,778,116

Capital and reserves

 

Called up share capital

100

100

Share premium reserve

23

49,970

49,970

Revaluation reserve

23

-

102,754

Other reserves

23

76,500

76,500

Retained earnings

23

13,897,942

9,548,792

Shareholders' funds

 

14,024,512

9,778,116

Approved and authorised by the Board on 28 August 2024 and signed on its behalf by:
 

Mr J P Davies
Director

   
     
 

JR Pet Products Ltd

Statement of Changes in Equity for the Year Ended 31 January 2024

Share capital
£

Share premium
£

Revaluation reserve
£

Non-distributable reserve
£

Retained earnings
£

Total
£

At 1 February 2023

100

49,970

102,754

76,500

9,548,792

9,778,116

Profit for the year

-

-

-

-

4,595,685

4,595,685

Dividends

-

-

-

-

(349,289)

(349,289)

Transfers

-

-

(102,754)

-

102,754

-

At 31 January 2024

100

49,970

-

76,500

13,897,942

14,024,512

Share capital
£

Share premium
£

Revaluation reserve
£

Non-distributable reserve
£

Retained earnings
£

Total
£

At 1 February 2022

100

49,970

-

-

6,090,583

6,140,653

Profit for the year

-

-

-

-

3,626,848

3,626,848

Other comprehensive income

-

-

102,754

76,500

-

179,254

Total comprehensive income

-

-

102,754

76,500

3,626,848

3,806,102

Dividends

-

-

-

-

(168,639)

(168,639)

At 31 January 2023

100

49,970

102,754

76,500

9,548,792

9,778,116

 

JR Pet Products Ltd

Statement of Cash Flows for the Year Ended 31 January 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

4,595,685

3,626,848

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

262,455

243,334

Financial instrument net gains (losses) through profit and loss

 

(582,807)

-

Changes in fair value of investment property

15

-

(76,500)

Loss/(profit) on disposal of tangible assets

5

40,306

(135,682)

Finance income

7

(63,407)

(47,105)

Finance costs

8

1,879

15,081

Investment management fees

 

17,968

7,497

Income tax expense

12

1,282,871

948,270

 

5,554,950

4,581,743

Working capital adjustments

 

Increase in stocks

17

(463,626)

(280,021)

Decrease/(increase) in trade debtors

18

386,751

(362,598)

Increase/(decrease) in trade creditors

19

190,635

(193,676)

Cash generated from operations

 

5,668,710

3,745,448

Income taxes paid

12

(707,000)

(1,310,322)

Net cash flow from operating activities

 

4,961,710

2,435,126

Cash flows from investing activities

 

Acquisitions of tangible assets

(335,002)

(645,083)

Proceeds from sale of tangible assets

 

(37,853)

390,857

Acquisition of intangible assets

13

-

(418,060)

Acquisition of investment assets

(3,500,000)

(2,990,000)

Gain/loss on investment assets

7

-

76,500

Net cash flows from investing activities

 

(3,872,855)

(3,585,786)

Cash flows from financing activities

 

Interest paid

8

(1,879)

(15,081)

Payments to finance lease creditors

 

(21,588)

(27,132)

Dividends paid

26

(349,289)

(168,639)

Net cash flows from financing activities

 

(372,756)

(210,852)

Net increase/(decrease) in cash and cash equivalents

 

716,099

(1,361,512)

Cash and cash equivalents at 1 February

 

1,228,759

2,590,271

Cash and cash equivalents at 31 January

 

1,944,858

1,228,759

 

JR Pet Products Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

1

General information

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

The address of its registered office is:
Unit 1
Church Bank Industrial Estate
Llandovery
SA20 0BA

These financial statements were authorised for issue by the Board on 28 August 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

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

The accounts are presented in UK pounds sterling, and rounded to the nearest pound.

Going concern

The financial statements have been prepared on a going concern basis, which the directors consider to be the most appropriate basis of preparation. At the Balance Sheet date, the directors do not consider there to be any circumstances that affect the business's ability to trade for the foreseeable future.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

The company earns rental income from their investment properties. Rental income is recognised on an accrual basis in accordance with the substance of the relevant agreement.

 

JR Pet Products Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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

Depreciation

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

Asset class

Depreciation method and rate

Land and buildings

2% straight line (buildings only)

Fixture and Fittings

20% reducing balance

Plant and Machinery

20% reducing balance

Motor Vehicles

20% reducing balance

Investment property

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

 

JR Pet Products Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

Intangible assets

Intangible assets are written off over their useful economic life, which is determined to be the period of the license agreement (10 years).

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Licences

10% Straight line method

Investments

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

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

Cash and cash equivalents

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

Trade debtors

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

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

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

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

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

JR Pet Products Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

Borrowings

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

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

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

Leases

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

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

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

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

Share capital

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

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

JR Pet Products Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

Employee benefits

The cost 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 employee or to provide termination benefits.

3

Turnover

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

2024
£

2023
£

Sale of goods

15,942,259

14,561,229

Rental income from investment property

16,200

16,200

15,958,459

14,577,429

The analysis of the company's Turnover for the year by market is as follows:

2024
£

2023
£

United Kingdom

15,516,135

14,075,279

Europe

262,023

333,488

International

180,301

168,662

15,958,459

14,577,429

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Miscellaneous other operating income

194,116

1,498,580

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2024
£

2023
£

(Loss)/gain on disposal of Tangible assets

(40,306)

135,682

 

JR Pet Products Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

6

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

220,650

201,528

Amortisation expense

41,805

41,806

Research and development cost

18,606

9,298

Operating lease expense - plant and machinery

1,540

536

Loss/(profit) on disposal of property, plant and equipment

40,306

(135,682)

7

Other interest receivable and similar income

2024
£

2023
£

Interest income on investments

24,727

1,363

Dividend income from financial assets

38,680

45,742

63,407

47,105

8

Interest payable and similar expenses

2024
£

2023
£

Interest on obligations under finance leases and hire purchase contracts

1,879

2,192

Interest expense on other finance liabilities

-

12,889

Foreign exchange losses

10,022

41,159

11,901

56,240

9

Staff costs

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

2024
£

2023
£

Wages and salaries

1,508,665

1,484,480

Social security costs

134,829

141,732

Pension costs, defined contribution scheme

20,279

29,431

Other employee expense

10,529

4,931

1,674,302

1,660,574

 

JR Pet Products Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

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

2024
No.

2023
No.

Administration and support

6

6

Marketing and sales

5

5

Distribution

33

39

44

50

10

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

376,155

392,488

Contributions paid to money purchase schemes

1,321

2,827

377,476

395,315

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

1

1

In respect of the highest paid director:

2024
£

2023
£

Remuneration

236,538

258,042

11

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

16,000

10,000


 

 

JR Pet Products Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

12

Taxation

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

2024
£

2023
£

Current taxation

UK corporation tax

1,311,718

753,297

Deferred taxation

Arising from origination and reversal of timing differences

(25,274)

148,179

Arising from changes in tax rates and laws

(1,020)

46,794

Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods

(2,553)

-

Total deferred taxation

(28,847)

194,973

Tax expense in the income statement

1,282,871

948,270

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 24.03% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

5,878,556

4,575,118

Corporation tax at standard rate

1,285,346

869,272

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

10,438

(3,605)

Effect of revenues exempt from taxation

(9,340)

(112,371)

Increase in UK and foreign current tax from adjustment for prior periods

-

148,180

Deferred tax credit from unrecognised temporary difference from a prior period

(2,553)

-

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

(1,020)

46,794

Total tax charge

1,282,871

948,270

 

JR Pet Products Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

13

Intangible assets

Other intangible assets
 £

Total
£

Cost or valuation

At 1 February 2023

418,060

418,060

At 31 January 2024

418,060

418,060

Amortisation

At 1 February 2023

41,806

41,806

Amortisation charge

41,806

41,806

At 31 January 2024

83,612

83,612

Carrying amount

At 31 January 2024

334,448

334,448

At 31 January 2023

376,254

376,254

The aggregate amount of research and development expenditure recognised as an expense during the period is £18,606 (2023 - £9,298).
 

Individually material intangible assets

Licence
The carrying amount of this asset is £334,448 (2023 -£376,254) and the remaining amortisation period is 8 years (2023 - 9 years).

 

JR Pet Products Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

14

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 February 2023

1,116,725

648,726

522,267

2,287,718

Additions

260,960

35,052

38,990

335,002

Disposals

-

(10,079)

-

(10,079)

At 31 January 2024

1,377,685

673,699

561,257

2,612,641

Depreciation

At 1 February 2023

-

213,510

193,985

407,495

Charge for the year

53,142

94,054

73,454

220,650

Eliminated on disposal

-

(7,626)

-

(7,626)

At 31 January 2024

53,142

299,938

267,439

620,519

Carrying amount

At 31 January 2024

1,324,543

373,761

293,818

1,992,122

At 31 January 2023

1,116,725

435,216

328,282

1,880,223

Included within the net book value of land and buildings above is £1,324,543 (2023 - £1,116,725) in respect of freehold land and buildings.
 

Assets held under finance leases and hire purchase contracts

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

2024
£

2023
£

Motor vehicles

38,236

105,799

   

15

Investment properties

2024
£

2023
£

At 1 February

368,000

291,500

Fair value adjustments

-

76,500

At 31 January

368,000

368,000

There has been no valuation of investment property by an independent valuer.

 

JR Pet Products Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

16

Other financial assets (current and non-current)

Financial assets at fair value through profit and loss
£

Total
£

Current financial assets

Cost or valuation

At 1 February 2023

4,383,462

4,383,462

Fair value adjustments

582,807

582,807

Additions

3,500,000

3,500,000

Income reinvested

63,407

63,407

Management fees

(17,967)

(17,967)

At 31 January 2024

8,511,709

8,511,709

Impairment

Carrying amount

At 31 January 2024

8,511,709

8,511,709

The investment has been included in the accounts at the value reported by Voyager Asset Management as at the year end date.

17

Stocks

2024
£

2023
£

Finished goods and goods for resale

2,382,596

1,918,970

18

Debtors

Current

2024
£

2023
£

Trade debtors

430,553

312,525

Other debtors

139,183

497,438

Prepayments

54,508

201,032

 

624,244

1,010,995

 

JR Pet Products Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

19

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

24

9,000

21,588

Trade creditors

 

457,265

252,297

Social security and other taxes

 

480,645

416,155

Outstanding defined contribution pension costs

 

2,485

2,259

Other payables

 

27,291

36,753

Accruals

 

23,901

19,816

Corporation tax liability

12

840,992

236,274

Other creditors

 

116,010

189,682

 

1,957,589

1,174,824

Due after one year

 

Loans and borrowings

24

9,750

18,750

20

Provisions for liabilities

Deferred tax
£

Total
£

At 1 February 2023

194,973

194,973

Additional provision

(28,847)

(28,847)

At 31 January 2024

166,126

166,126

21

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £20,279 (2023 - £29,431).

Contributions totalling £2,485 (2023 - £2,259) were payable to the scheme at the end of the year and are included in creditors.

 

JR Pet Products Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

22

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

80

80

80

80

Ordinary A shares of £1 each

20

20

20

20

100

100

100

100

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
Full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption.

Ordinary A shares have the following rights, preferences and restrictions:
Full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption.

23

Reserves

The changes to each component of equity resulting from items of other comprehensive income for the prior year were as follows:

Revaluation reserve
£

Non-distributable reserve
£

Total
£

Surplus/deficit on revaluation of other assets

102,754

76,500

179,254

The non-distributable reserve is made up of the revaluation gain to the fair value of the investment properties which are not taxable.

24

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Hire purchase contracts

9,750

18,750

Current loans and borrowings

2024
£

2023
£

Hire purchase contracts

9,000

21,588

 

JR Pet Products Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024



Bank charges
Lloyds Bank PLC has a outstanding charge of the following:
• Contains fixed charge
• Contains floating charge (floating charge covers all the property or undertaking of the company)
• Contains a negative pledge.

25

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

9,000

21,588

Later than one year and not later than five years

9,750

18,750

18,750

40,338

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

30,000

33,000

Later than one year and not later than five years

30,000

30,000

60,000

63,000

The amount of non-cancellable operating lease payments recognised as an expense during the year was £33,000 (2023 - £39,000).

26

Dividends

Interim dividends paid

2024
£

2023
£

Interim dividend of £3,493 (2023 - £1,686) per each Ordinary shares

279,431

134,911

Interim dividend of £3,493 (2023 - £1,686) per each Ordinary A shares

69,858

33,728

349,289

168,639

 

JR Pet Products Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

27

Commitments

Capital commitments

The total amount contracted for but not provided in the financial statements was £Nil (2023 - £26,955).

28

Analysis of changes in net debt

At 1 February 2023
£

Financing cash flows
£

At 31 January 2024
£

Cash and cash equivalents

Cash

1,228,759

716,099

1,944,858

Borrowings

Lease liabilities

(40,338)

21,588

(18,750)

 

1,188,421

737,687

1,926,108

29

Related party transactions

Key management compensation

2024
£

2023
£

Salaries and other short term employee benefits

663,807

611,824

Transactions with directors

2024

At 1 February 2023
£

Advances to director
£

At 31 January 2024
£

Mr J P Davies

Director's loan account

-

83,000

83,000

30

Parent and ultimate parent undertaking

The ultimate controlling party is Mr J P Davies.