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Registered number: 02021685












JOHN MILLS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 

JOHN MILLS LIMITED

CONTENTS



Page
Company information
 
1
Strategic report
 
2 - 5
Directors' report
 
6 - 8
Directors' responsibilities statement
 
9
Independent auditor's report
 
10 - 13
Profit and loss account
 
14
Balance sheet
 
15
Statement of changes in equity
 
16
Statement of cash flows
 
17 - 18
Notes to the financial statements
 
19 - 40


 

JOHN MILLS LIMITED
 
COMPANY INFORMATION


Directors
J A D Mills 
K J Daly 
S D Tebble 
B Keogh 
D H Grier 
L Angel 




Registered number
02021685



Registered office
Chiswick Green
610 Chiswick High Road

London

W4 5RU




Independent auditor
Blick Rothenberg Audit LLP
Chartered Accountants & Statutory Auditor

16 Great Queen Street

Covent Garden

London

WC2B 5AH




Page 1

 

JOHN MILLS LIMITED
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present the strategic report and financial statements for the year ended 31 December 2023.
The principal activities of the company during the year were that of distribution of consumer products via UK & Ireland Retail, through international partners and direct-to-consumer.

Business review
 
During 2023 JML experienced inflationary pressures and a 15% decline in revenues. To ensure the business remained strong, management implemented a programme to reduce product buying prices and cut employee costs. Despite this, the business produced a loss for the year.  
In December 2022 Industex SL, a Spanish company with a similar business model purchased 20% of JML’s equity.  The two companies have since been developing a strategic alliance to combine product sourcing resources and leverage synergies.  Benefits of this partnership during 2023 were primarily margin improvements and reduced staff overheads.  New products introduced by Industex SL have been market tested and refined for UK requirements and will enhance JML’s revenues during 2024 and beyond.
UK Retail distribution, JML’s biggest revenue stream also experienced a 15% decline in 2023.  The demise of Wilko, JML’s second biggest customer, due to administration, had a substantial impact.  Meanwhile, distributors around the world operated in a highly challenging economic environment thus affecting JML’s International revenues.  Reduced consumer disposable income, a consequence of the UK cost-of-living crisis was compounded by a dearth of successful new product launches.  These factors negatively impacted sales in all areas of the business including direct to consumer which had seen record online growth during the Covid era.
Double digit inflation in numerous parts of the business created a very challenging environment throughout 2023.  Management were able to reduce overheads in some areas, however overall the cost base did not fall commensurately with income.  The improvement in margins helped mitigate the company’s losses.
Despite trading losses, the company’s borrowing throughout the year was close to historically low levels with expenditure and working capital successfully managed.
The company has continued to invest in product development and the volume of new launches has increased.  Management is therefore optimistic that the organisation is well placed to increase revenues as a result of these investments. 
The core strategy of JML has remained central to future growth. That is, developing innovative consumer products, or licensing them from third parties, and then using video to market them online, in store and on TV under the JML brand and other subsidiary brands. Many of JML’s products are in categories that have proved to be very popular with consumers who spend more time at home due to flexible working.
UK direct to consumer revenues continue to be substantially higher than pre-pandemic levels. The business has however reduced staff numbers in ecommerce and social media departments in favour of commissioning outside agencies. The intention is to improve digital marketing and drive sales growth online. Expanded UK retail distribution is being sought and additional space in key retailers is also important for increased revenues. Internationally, a strategy remains which targets revenue through partners already in place in over 50 territories.
Organic growth is being targeted via the core JML brand online, in retail and via the international distribution partners. Incremental revenues are being planned through the launch of business units that promote new product ranges under separate distinct brands that appeal to different groups of consumers. The intention is to add revenue whilst leveraging existing infrastructure, customer base and expertise.

Page 2

 

JOHN MILLS LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
JML uses a number of strategies to mitigate the impact of currency fluctuations. These include some currency hedging, adjusting selling prices, re-sourcing suppliers and changing the mix of sales to favour higher margin products. Increased international distribution can also dilute any currency exchange effects.
The loss of a major customer should be considered a risk to the business.  This occurred in 2023 with the demise of Wilko.   Management is targeting a widening of the portfolio of distribution and growing the direct-to-consumer operation to ensure that no single customer is critical to the company’s health. Furthermore, JML’s largest customers are now supermarkets and those with pharmacies which have continued to trade successfully.
The departure of key employees is a risk and JML has ensured an excellent track record of retaining talent and maintaining a culture which engenders high morale and staff motivation. Succession planning is a core element of strategy to ensure that senior managers could always be replaced by high calibre internal candidates.
The financial instruments used by the company arise wholly and directly from the company’s operations. These comprise trade debtors, cash at bank, bank loans, invoice discounting facilities and trade creditors.
The company has put in place the following measures in order to manage the risks arising from these financial instruments:
1. The company undertakes credit checks on all customers in the United Kingdom and has a policy for the approval of a credit limit, which is notified to the customer. No overseas customers are allowed any credit, with the exception of those where a long trading relationship exists and where there is excellent knowledge of the business of the customer. The company regularly reviews customers' credit limits and will not, other than in exceptional circumstances, supply customers where an order results in a customer exceeding its credit limit.
2. JML’s customers are subject to a Retention of Title clause as part of the company’s trading terms.
3. The company manages its cash positions by regularly monitoring its cash flow, using cash flow forecasting and variance analysis.
4. The financial risk arising from the possible non-advance of credit by its trade creditors, either by exceeding agreed credit limits or by not paying with the specified terms, is managed by regularly monitoring the trade balance and credit limit terms from all suppliers. 

Development and performance
 
JML commits substantial resources to the ongoing development of new products and the production of video content with which to promote them.
Investment in IT and systems has been ongoing. Management believes that this will bring many benefits. However, infrastructure costs have reduced as the largest current projects have reached completion.
The directors consider the company to be adequately financed for the foreseeable future through a range of facilities, the largest of which funds stock and debtors from Shawbrook Bank.
JML is committed to employee engagement initiatives which include an ongoing programme of staff training, regular conferences, mental health and wellbeing projects, company intranet, charity and social events, company newsletters and a culture of open communication. A high-quality team is in place to take the company forward, a combination of long-standing staff and more recent recruits.
With a talented workforce and as a result of the investments made over the past few years, the directors believe that the company is poised for a period of improved profitability.

Page 3

 

JOHN MILLS LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Key performance indicators
 
The key performance indicators used by the company include gross profit margin, which increased from 50.27% to 55.85% Product sales income fell from £52.53m to £44.80m.
Management is confident that the company’s governance is exemplary with the ongoing analysis of performance indicators to ensure full awareness of business performance, including monthly reporting of key metrics to the board.
The non-financial key performance indicators include ensuring that products and service are highly rated by customers whilst constantly striving to improve quality control measures. The company also identifies customer care services as being highly significant and measures these by aiming to maintain a Net Promoter Score of over 75, a Customer Satisfaction Score of over 85% and to achieve over 95% on time delivery. JML’s Trustpilot score is currently 4.4 (out of 5.0).
In addition, other non-financial key performance indicators include raising brand awareness and the company profile measured by both customer and supplier loyalties and other attributes such as market share and size of database.
Key performance indicators are maintained across all parts of the business to ensure management are constantly monitoring and challenging results.

Directors' statement of compliance with duty to promote the success of the company
 
The board of directors of John Mills Limited consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole in decisions taken during the year ended 31 December 2023. In particular:

The strategy was designed to have a long-term beneficial impact on the company and to contribute to its success by delivering more sustainable earnings, continuous product and service improvements and an increasingly rewarding environment in which to work.

JML’s employees are fundamental to the delivery of the company’s strategy. The business aims to be a responsible employer in its approach to the pay and benefits employees receive. The health, safety and well-being of staff is one of the primary considerations in the way JML conducts business.
 
Page 4

 

JOHN MILLS LIMITED

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Directors' statement of compliance with duty to promote the success of the company (Continued)
 
The company takes its duty to customers extremely seriously, both business clients and consumers.  Management strive to always provide the highest quality products and services and ensure any concerns or complaints are addressed quickly, efficiently and with an aim of completely satisfying the customer where possible and reasonable.

The company takes its duty to suppliers extremely seriously.  The business aims to maintain the highest reputation for being a good customer, treating suppliers in a friendly, respectful and collaborative way, paying fair prices and settling debts within agreed timeframes.

JML’s strategy has taken into account the impact of the company's operations on the community, environment and wider societal responsibilities. Several of the performance measures in the company’s strategy will deliver sustainability improvements.
 
The Board of Directors’ intention is to behave responsibly and ensure that management operate the business in a responsible manner, maintaining the high standards of business conduct and good governance expected for a business such as JML and in doing so, will contribute to the delivery of the company’s strategic plan. The intention is to nurture JML’s reputation, through providing an excellent experience for customers, suppliers and other stakeholders when interacting with the business.

The Board of Directors’ intention is to always treat shareholders fairly and respect their views, so they too may benefit from the successful delivery of the company’s strategic plan.


This report was approved by the board and signed on its behalf.



K J Daly
Director

Date: 20 September 2024

Page 5

 

JOHN MILLS LIMITED

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Results and dividends

The loss for the year, after taxation, amounted to £2,768,945 (2022 loss £1,388,635).

An interim ordinary dividend of £Nil (2022: £301,210) was paid in the year. The directors do not recommend payment of a final dividend.

Directors

The directors who served during the year were:

J A D Mills 
K J Daly 
S D Tebble 
B Keogh 
D H Grier 
L Angel 
S M Aubrey-Cound (resigned 6 August 2023)

Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors which were made during the year and remain in force at the date of this report.

Page 6

 

JOHN MILLS LIMITED

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Greenhouse gas emissions, energy consumption and energy efficiency action

As required by the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 the company's energy use and greenhouse gas (GHG) emissions are set out below.
The data relates to the 12 month period from 1 January 2023 to 31 December 2023.
Total energy consumption                                                                                     1,973,414 kWh
Emissions from combustion of gas (scope 1)                                                       19 tCO2e
Emissions from combustion of fuel for the purposes of transport (scope 1)         384 tCO2e
Emissions from business travel in rental cars or employee-owned vehicles         0 tCO2e
the company is responsible for purchasing the fuel (scope 3)                            
Emissions from purchased electricity (scope 2)                                                    40 tCO2e
Total gross emissions                                                                                            443 tCO2e
Intensity ratio                                                                                                          9.59 tCO2e/£1m Turnover
Comparison to previous financial year
The data relates to the 12 month period from 1 January 2022 to 31 December 2022.
Total energy consumption                                                                                     2,045,697 kWh
Emissions from combustion of gas (scope 1)                                                       21 tCO2e
Emissions from combustion of fuel for the purposes of transport (scope 1)         402 tCO2e
Emissions from business travel in rental cars or employee-owned vehicles         0 tCO2e
the company is responsible for purchasing the fuel (scope 3)                            
Emissions from purchased electricity (scope 2)                                                    43 tCO2e
Total gross emissions                                                                                            466 tCO2e
Intensity ratio                                                                                                          8.27 tCO2e/£1m Turnover
 

Primary energy efficiency measures implemented
No specific energy efficiency actions were undertaken in 2023.

Methodology
This report has been compiled in line with the March 2019 BEIS 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance', and the EMA methodology for SECR Reporting. All measured emissions from activities which the organisation has financial control over are included as required under The Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, unless otherwise stated in the exclusions statement.
The carbon figures have been calculated using the DESNZ 2023 carbon conversion factors for all fuels. 

Matters covered in the Strategic report

As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information, required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies (Accounts and Reports) Regulations 2008', in the strategic report.

Page 7

 

JOHN MILLS LIMITED

DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Disclosure of information to auditor

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board and signed on its behalf.
 





K J Daly
Director

Date: 20 September 2024

Page 8

 

JOHN MILLS LIMITED
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the strategic report, the directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 9

 

JOHN MILLS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOHN MILLS LIMITED
 FOR THE YEAR ENDED 31 DECEMBER 2023

Opinion


We have audited the financial statements of John Mills Limited  for the year ended 31 December 2023, which comprise the profit and loss account, the balance sheet, the statement of cash flows, the statement of changes in equity and the notes to the financial statements, including a summary of significant accounting policiesThe 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 December 2023 and of its loss 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


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 ReportOur 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.


Page 10

 

JOHN MILLS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOHN MILLS LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

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


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


adequate accounting records have not been kept by the company, or returns adequate for our audit have not been received from branches not visited by us; or
the company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 9, 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.


Page 11

 

JOHN MILLS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOHN MILLS LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

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:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the retail sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
tested a sample of journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance; and
enquiring of management as to actual and potential litigation and claims.
Page 12

 

JOHN MILLS LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOHN MILLS LIMITED (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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 2006Our 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.





Krishan Sivathondan BSc (Hons) FCA (Senior Statutory Auditor)
  
for and on behalf of
Blick Rothenberg Audit LLP
 
Chartered Accountants
Statutory Auditor
  
16 Great Queen Street
Covent Garden
London
WC2B 5AH

 
Date: 
20 September 2024
Page 13

 

JOHN MILLS LIMITED
 
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022
Note
£
£

  

Turnover
  
44,800,194
52,526,789

Cost of sales
  
(19,778,770)
(26,119,408)

Gross profit
  
25,021,424
26,407,381

Distribution costs
  
(14,675,082)
(14,952,322)

Administrative expenses
  
(12,914,831)
(12,806,326)

Other operating income
 5 
150,116
168,788

Operating loss
 6 
(2,418,373)
(1,182,479)

Impairment of investments
 16 
(14,900)
-

Interest receivable and similar income
 10 
24,394
-

Interest payable and similar expenses
 11 
(455,358)
(321,240)

Loss before taxation
  
(2,864,237)
(1,503,719)

Tax on loss
 12 
95,292
115,084

Loss for the financial year
  
(2,768,945)
(1,388,635)

There are no items of other comprehensive income for 2023 or 2022 other than the loss for the yearAs a result, no separate Statement of comprehensive income has been presented.

Page 14


 
REGISTERED NUMBER:02021685
JOHN MILLS LIMITED

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 15 
524,645
708,760

Investments
 16 
107,482
122,382

  
632,127
831,142

Current assets
  

Stocks
 17 
7,181,100
6,168,127

Debtors: amounts falling due after more than one year
 18 
470,985
379,045

Debtors: amounts falling due within one year
 18 
11,300,845
16,375,113

Cash at bank and in hand
 19 
48,466
884,939

  
19,001,396
23,807,224

Creditors: amounts falling due within one year
 20 
(10,613,624)
(12,795,141)

Net current assets
  
 
 
8,387,772
 
 
11,012,083

Total assets less current liabilities
  
9,019,899
11,843,225

Creditors: amounts falling due after more than one year
 21 
(63,225)
(117,606)

  

Net assets
  
8,956,674
11,725,619


Capital and reserves
  

Called up share capital 
 26 
435,463
435,463

Capital redemption reserve
 27 
67,837
67,837

Profit and loss account
 27 
8,453,374
11,222,319

Total equity
  
8,956,674
11,725,619


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 20 September 2024.




K J Daly
Director

The notes on pages 19 to 40 form part of these financial statements.

Page 15

 

JOHN MILLS LIMITED

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
435,463
67,837
12,912,164
13,415,464


Comprehensive income for the year

Loss for the year
-
-
(1,388,635)
(1,388,635)

Dividends: Equity capital
-
-
(301,210)
(301,210)



At 1 January 2023
435,463
67,837
11,222,319
11,725,619


Comprehensive income for the year

Loss for the year
-
-
(2,768,945)
(2,768,945)


At 31 December 2023
435,463
67,837
8,453,374
8,956,674


The notes on pages 19 to 40 form part of these financial statements.

Page 16

 

JOHN MILLS LIMITED

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(2,768,945)
(1,388,635)

Adjustments for:

Amortisation of intangible assets
-
187,176

Depreciation of tangible assets
371,615
470,936

Impairment of investments
14,900
-

Profit on disposal of tangible assets
(71,987)
(70,886)

Interest paid
455,358
321,240

Interest received
(24,394)
-

Taxation charge
(59,774)
(115,084)

(Increase)/decrease in stocks
(1,012,973)
3,284,945

Decrease/(increase) in debtors
5,099,579
(1,997,362)

Decrease in amounts owed by groups
-
203,990

Decrease/(increase) in amounts owed by joint ventures
-
(93,656)

(Decrease) in creditors
(482,571)
(1,476,235)

Increase in amounts owed to groups
-
80,250

Corporation tax received/(paid)
-
(115,657)

Net cash generated from operating activities

1,520,808
(708,978)


Cash flows from investing activities

Purchase of tangible fixed assets
(197,279)
(192,653)

Sale of tangible fixed assets
81,767
87,035

Sale of unlisted and other investments
-
510

Sale of fixed asset investments
-
1,210

Interest received
24,394
-

Hire purchase loan interest paid
-
(20,458)

Net cash from investing activities

(91,118)
(124,356)

Cash flows from financing activities

Repayment of other loans
-
(13,902)

Repayment of finance leases
(57,478)
(78,249)

Dividends paid
-
(301,210)

Interest paid
(455,358)
(300,782)

Net cash used in financing activities
(512,836)
(694,143)

Net increase/(decrease) in cash and cash equivalents
916,854
(1,527,477)

Cash and cash equivalents at beginning of year
(6,687,432)
(5,159,955)

Cash and cash equivalents at the end of year
(5,770,578)
(6,687,432)

Page 17

 

JOHN MILLS LIMITED

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
48,466
884,939

Bank overdrafts
(5,819,044)
(7,572,371)

(5,770,578)
(6,687,432)


The notes on pages 19 to 40 form part of these financial statements.

Page 18

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

John Mills Limited distributes consumer products via international partners, direct-to-consumer, online and through television home shopping.
The company is a private company limited by shares and incorporated in England and Wales. The address of its registered office and principal place of business is Chiswick Green, 610 Chiswick High Road, London, W4 5RU.
The financial statements are presented in Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Exemption from preparing consolidated financial statements

The company was, at the end of the year, a wholly-owned subsidiary of JML Holdco Limited, whose registered address is 610 Chiswick High Road, London, England, W4 5RU. JML Holdco Limited prepares consolidated financial statements, in which the company is included. In accordance with the exemption given in Section 400 of the Companies Act 2006, the company is not required to produce, and has not published, consolidated accounts.

The company is therefore a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006
Therefore these financial statements are for this company only and not the wider group.

 
2.3

Going concern

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Page 19

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer upon despatch;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.5

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the profit and loss account within administrative expenses. All other foreign exchange gains and losses are presented in profit or loss within operating activities.

 
2.6

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 20

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.11

Pensions

Defined contribution pension plan

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

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

Page 21

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.13

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 Amortisation is provided on the following bases:

Computer software
-
33%
straight line

 
2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 22

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.14
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
25%
Motor vehicles
-
25%
Fixtures and fittings
-
33%
Computer equipment
-
33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

  
2.16

Associates and joint ventures

An entity is treated as a joint venture where the company is a party to a contractual agreement with one or more parties from outside the company to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the company exercises significant influence in that it has the power to participate in the operating and financial policy decisions. 
Associates and Joint Ventures are held at cost less impairment.

  
2.17

Stocks

Stocks represent homeware and household goods for resale and are stated at the lower of cost and net realisable value, being the estimated selling price less costs to sell. Cost is based on the cost of purchase on a first in, first out basis. Finished goods includes labour and attributable overheads including freight costs and landing costs. 
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to sell. The impairment loss is recognised immediately in profit or loss.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Page 23

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.19

Financial instruments

The company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the company becomes party to the contractual provisions of the instrument. 
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. 
Financial assets
Basic financial assets, including trade and other debtors, cash and bank balances, intercompany working capital balances, and intercompany financing are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
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, which excludes transaction costs for those financial assets that are subsequently measured at fair value through profit and loss. 
Such financial assets are subsequently measured at fair value through profit or loss, where they are publicly traded, or fair value can be measured reliably, for example by using a valuation technique. Where fair value cannot be measured reliably, the financial asset is measured at cost less impairment. 
Financial liabilities
Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
 
Page 24

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

Financial instruments (continued)
Derivative contracts 
Derivatives contracts such as foreign exchange forward contracts, are not basic financial instruments. 
Derivatives contracts 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 interest payable and similar expenses or interest receivable and similar income as appropriate. 
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account. 
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. 
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. 
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 and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. 
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. 
Offsetting of financial assets and financial liabilities
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

  
2.20

Share capital

Ordinary shares are classified as equity.

Page 25

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Impairment of trade debtors
The company reviews trade debtor balances for impairment and this is performed on a regular basis. Those balances which are considered to be recoverable remain in debtors and those which are not, are impaired and the impairment loss is recorded in the profit and loss. In making this judgement, the company evaluates, among other factors, the duration and the financial health of and short-term business outlook for the trade debtors, including factors such as industry and sector performance. The accounting policy of trade debtors is described in note 2.19. At the year end the carrying amount of trade debtors is stated in note 18.
Stock
Stock is valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends. The accounting policy of stocks is described in note 2.17. At the year end the carrying amount of stocks is stated in note 17.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Volume and price markdown rebates given to customers
Rebates are given to customers, in accordance with customer contracts, when cumulative turnover exceeds a predefined level or if the customer sells on goods at a marked down price. Provision is made for these "retro-rebates" at the year-end. The provision is based on past rebates given and is necessarily an estimate.

Page 26

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

ole4732.png


5.


Other operating income

2023
2022
£
£

Other operating income
120,594
96,843

Royalty receivable
29,522
71,945

150,116
168,788


Page 27

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Research and development charged as an expense
54,645
50,598

Exchange differences
212,968
(380,224)

Other operating lease rentals
554,554
490,385

Depreciation of owned tangible fixed assets
207,889
273,167

Depreciation of assets held under finance leases
163,726
197,769

Profit on disposal of fixed assets
(71,987)
(70,886)

Amortisation of intangible fixed assets
-
187,176

Costs of stocks recognised as an expense
19,488,983
25,829,597


7.


Auditor's remuneration

During the year, the company obtained the following services from the company's auditor and its associates:


2023
2022
£
£

Fees payable to the company's auditor and its associates for the audit of the company's financial statements
58,500
70,000

Fees payable to the company's auditor and its associates in respect of:

All non-audit services not included above
10,000
54,122

Page 28

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
6,925,031
7,221,055

Social security costs
693,895
750,388

Cost of defined contribution scheme
884,770
803,745

8,503,696
8,775,188


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Management
5
5



Sales
103
102



Warehouse
23
23



Administration
82
78

213
208


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
672,239
742,212

Company contributions to defined contribution pension schemes
118,389
77,639

790,628
819,851


During the year retirement benefits were accruing to 3 directors (2022 -3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £234,811 (2022 -£271,500).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £44,458 (2022 -£27,617).


10.


Interest receivable

2023
2022
£
£


Other interest receivable
24,394
-

Page 29

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
428,929
299,490

Other loan interest payable
69
1,264

Finance leases and hire purchase contracts
26,358
20,458

Other interest payable
2
28

455,358
321,240


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
(115,084)


-
(115,084)


Total current tax
-
(115,084)

Deferred tax


Origination and reversal of timing differences
(95,292)
-

Total deferred tax
(95,292)
-


Taxation on loss on ordinary activities
(95,292)
(115,084)
Page 30

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 -lower than) the standard rate of corporation tax in the UK of 23.5% (2022 -19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(2,864,237)
(1,503,719)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 -19%)
(673,096)
(285,707)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,641
45,635

Capital allowances for year in excess of depreciation
33,568
(1,971)

Other timing differences leading to an increase (decrease) in taxation
(95,292)
-

Book profit on chargeable assets
(16,917)
(13,468)

Unrelieved tax losses carried forward
653,804
140,427

Total tax charge for the year
(95,292)
(115,084)


Factors that may affect future tax charges

In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% for companies with profits of over £250,000. A small profits rate will also be introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. From this date companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate. 
This law has been substantively enacted. For the financial year ended 31 December 2023, the current weighted average tax rate was 23.5%. Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.


13.


Dividends

2023
2022
£
£


Dividends payable
-
301,210

Page 31

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Intangible assets




Computer software

£



Cost


At 1 January 2023
585,613



At 31 December 2023

585,613



Amortisation


At 1 January 2023
585,613



At 31 December 2023

585,613



Net book value



At 31 December 2023
-



At 31 December 2022
-



Page 32

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Tangible fixed assets





Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost


At 1 January 2023
679,648
1,717,628
444,778
2,191,929
5,033,983


Additions
-
152,758
343
44,178
197,279


Disposals
-
(251,037)
(176,572)
(3,139)
(430,748)



At 31 December 2023

679,648
1,619,349
268,549
2,232,968
4,800,514



Depreciation


At 1 January 2023
521,398
1,357,305
312,864
2,133,656
4,325,223


Charge for the year on owned assets
87,686
-
74,428
45,775
207,889


Charge for the year on financed assets
-
163,726
-
-
163,726


Disposals
-
(243,435)
(176,572)
(962)
(420,969)



At 31 December 2023

609,084
1,277,596
210,720
2,178,469
4,275,869



Net book value



At 31 December 2023
70,564
341,753
57,829
54,499
524,645



At 31 December 2022
158,250
360,323
131,914
58,273
708,760

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Motor vehicles
302,390
360,323

The depreciation charge in respect of such assets amounted to £139,799 (2022: £197,769).

Page 33

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Fixed asset investments





Investments in subsidiary companies
Unlisted investments
Investment in joint ventures
Total

£
£
£
£



Cost or valuation


At 1 January 2023
25,350
82,032
15,000
122,382


Additions
15,000
-
-
15,000


On acquisition of subsidiaries
-
-
(15,000)
(15,000)



At 31 December 2023

40,350
82,032
-
122,382



Impairment


Charge for the period
14,900
-
-
14,900



At 31 December 2023

14,900
-
-
14,900



Net book value



At 31 December 2023
25,450
82,032
-
107,482



At 31 December 2022
25,350
82,032
15,000
122,382


Subsidiary undertakings


The following were subsidiary undertakings of the company:

Name

Registered office

Principal activity

Class of shares

Holding

JML Central Europe GmbH
Congruentia Knapp GbR Steuerberater Rheinstraße 3 63225 Langen Germany
Dormant
Ordinary
100%
JML GmbH
Congruentia Knapp GbR Steuerberater Rheinstraße 3 63225 Langen Germany
Sale of consumer products through TV and catalogue
Ordinary
100%
JML Media Limited
610 Chiswick High Road Chiswick Green LondonW4 5RU
Rental of TV Licences
Ordinary
100%
DeVancer Limited
610 Chiswick High Road Chiswick Green LondonW4 5RU
Sale of consumer products through the internet and retailers
Ordinary
100%

Page 34

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Stocks

2023
2022
£
£

Goods for resale
7,181,100
6,168,127


The difference between purchase price of stocks and their replacement cost is not material.
Stock values are after impairment provisions of £336,428 (2022: £390,546). 


18.


Debtors

2023
2022
£
£

Due after more than one year

Prepayments and accrued income
340,305
343,657

Deferred tax asset - note 25
130,680
35,388

470,985
379,045


2023
2022
£
£

Due within one year

Trade debtors
7,990,305
11,312,029

Amounts owed by group undertakings
1,159,143
1,486,315

Amounts owed by joint ventures and associated undertakings
-
303,449

Other debtors
1,448,396
1,983,886

Prepayments and accrued income
585,750
1,174,350

Tax recoverable
117,251
115,084

11,300,845
16,375,113


Amounts owed by group undertakings are interest free, have no fixed repayment date and are repayable on demand.


19.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
48,466
884,939

Less: bank overdrafts
(5,819,044)
(7,572,371)

(5,770,578)
(6,687,432)


Page 35

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
5,819,044
7,572,371

Trade creditors
2,289,803
2,252,318

Amounts owed to group undertakings
324,065
259,982

Other taxation and social security
1,060,843
1,609,963

Obligations under finance lease and hire purchase contracts
143,206
146,303

Other creditors
137,949
292,956

Accruals and deferred income
838,714
661,248

10,613,624
12,795,141


The bank overdrafts represent an asset-based lending six month rolling facility provided by the company's bankers and are secured by way of a fixed and floating charge over all group assets and by way of a cross guarantee to which JML Media Limited and JML Direct Limited are party. 


21.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Other loans
2,300
2,300

Net obligations under finance leases and hire purchase contracts
60,925
115,306

63,225
117,606



22.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£


Amounts falling due 1-2 years

Other loans
2,300
2,300




Other loans represent amounts advanced by a director shareholder and are secured by way of a legal charge over the assets of the company. Interest is payable at 5% per annum.

Page 36

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
143,206
146,303

Between 1-5 years
60,925
115,306

204,131
261,609

The finance leases relate to motor vehicles. The remaining lease terms are up to 36 months.


24.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at amortised cost
8,038,771
12,196,968


Financial liabilities


Financial liabilities measured at amortised cost
8,108,847
9,824,689

Other financial liabilities measured at fair value through profit or loss
204,131
261,609

8,312,978
10,086,298


Financial assets measured at amortised cost through profit or loss comprise of cash at bank and trade debtors.


Financial liabilities measured at amortised cost through profit or loss comprise of bank overdrafts and trade creditors.


Other financial liabilities measured at amortised cost through profit or loss comprise hire purchase creditors.

Page 37

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Deferred taxation




2023


£






At beginning of year
35,388


Charged to profit or loss
95,292



At end of year
130,680

The deferred tax asset is made up as follows:

2023
2022
£
£


Decelerated capital allowances
130,680
35,388


26.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



4,321,630 (2022 -4,321,630) Ordinary shares of £0.100000 each
432,163
432,163
1,169,600 (2022 -1,169,600) Ordinary 'A' shares of £0.001000 each
1,170
1,170
170,000 (2022 -170,000) Ordinary 'B' shares of £0.010000 each
1,700
1,700
430,000 (2022 -430,000) Ordinary 'C' shares of £0.001000 each
430
430

435,463

435,463

The holders of all shares have the right to receive notice of and to attend, speak and vote at all general meetings of the company and to receive and vote on proposed written resolutions of the company.
One or more classes of shares, to the exclusion of the other classes or in respect of all classes of shares are entitled to dividends, by ordinary resolution.



27.


Reserves

Capital redemption reserve

The capital redemption reserve is a non-distributable reserve arising from the redemption or purchase of the company's own shares.

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.

Page 38

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
28.


Analysis of net debt




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

884,939

(836,473)

48,466

Bank overdrafts

(7,572,371)

1,753,327

(5,819,044)

Debt due after 1 year

(2,300)

-

(2,300)

Finance leases

(261,609)

57,478

(204,131)


(6,951,341)
974,332
(5,977,009)


29.


Commitments under operating leases

At 31 December 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
553,375
559,916

Later than 1 year and not later than 5 years
1,416,819
2,035,441

1,970,194
2,595,357


30.


Related party transactions

The company has taken advantage of the exemption available in FRS102 Section 33.1A "Related party disclosures" whereby it has not disclosed transactions with any wholly owned subsidiary undertaking.
The amount due to a director and shareholder of the company, at the year end was £2,300 (2022: £2,300). The loan is secured and interest of £69 (2022: £1,264), charged at a market rate, was payable on this loan for the year. The loan is not due for repayment within 1 year.
At the year end, the company was owed £Nil (2022: £303,449) by companies in which John Mills Limited has a joint venture. The loans are provided interest free, unsecured and are repayable on demand.

Page 39

 

JOHN MILLS LIMITED

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

31.


Ultimate parent undertaking and controlling party

The immediate parent undertaking is JML Hold Co Limited
The parent undertaking of the smallest group of undertakings for which group financial statements are drawn up and of which the company is a member is JML Hold Co Limited, whose registered office is at Chiswick Green, 610 Chiswick High Street, London, W4 5RU. Copies of these group financial statements are available to the public from its registered office.
The ultimate controlling party is  J A D Mills, a director of the company, by virtue of his shareholding in JML Hold Co Limited

 
Page 40