REGISTERED NUMBER: 08778541 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
FOR |
JBF GROUP HOLDINGS LIMITED |
REGISTERED NUMBER: 08778541 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
FOR |
JBF GROUP HOLDINGS LIMITED |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
JBF GROUP HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
25 Grosvenor Road |
Wrexham |
LL11 1BT |
BANKERS: | HSBC Bank plc. |
17-19 Regent Street |
Wrexham |
LL11 1RY |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
The director presents his strategic report of the company and the group for the year ended 30th September 2023. |
REVIEW OF BUSINESS |
Turnover during the year decreased by 8% to £12.6m from £13.7m. While this was a decrease in overall revenues, the company remains in a strong position and given the current orderbook, we expect turnover to increase in 2024. |
Despite the decrease in turnover, gross margin improved from 23% to 25%, indicating improved efficiencies across the core of our operations. |
Operating margin has been maintained at 4%, further indicating successful cost controls within the business and better than the industry average. |
Net reserves remain at £5.2m which represents a strong balance sheet. |
JBF Group remain relatively low geared compared to competitors within our industry. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Economic risk |
There has been economic uncertainty arising from the continual conflict in Ukraine. This conflict has had a major impact on raw material pricing. The business has procedures in place to ensure risk assessments are considered as part of our tendering and project management phases. The business continues to monitor and review costs to mitigate the risk of price increases. |
Health & safety |
JBF Group operates in often complex and high risk environments, working with plant and machinery which present risks to our people and supply chain. We have clear, well communicated policies and governance in place in order to ensure our staff and wider supply chain can work safely. |
Credit & liquidity risk |
The cash and working capital requirements of the business are managed on a regular basis by cashflow forecasting and monthly board meetings monitoring financial performance. |
The company has a credit control policy in place which regularly reviews the credit performance of our debtors. |
Future work |
We recognise that non-renewal of existing contracts along with a reduction in our orderbook poses a risk to the business. We mitigate this risk with maintaining strong relationships with clients and a diversified portfolio. |
Climate change |
We recognise that climate change is having a detrimental impact on the environment and JBF Group are playing its part to address this by monitoring and reducing carbon emissions where possible. |
ON BEHALF OF THE BOARD: |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
The director presents his report with the financial statements of the company and the group for the year ended 30th September 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of civil, structural and mechanical engineering. |
DIVIDENDS |
Interim dividends per share were paid during the year as follows: |
A Ordinary £1 | - 48.244p |
B Ordinary £1 | - 49.414p |
RESEARCH AND DEVELOPMENT |
JBF Group continues to undertake research and development to gain new technical knowledge which creates an advance within the industry which subsequently leads to improved designs, products, systems and processes. |
FUTURE DEVELOPMENTS |
We anticipate another positive year for JBF Group with a strong orderbook moving into 2024. |
DIRECTOR |
His beneficial interests in the shares of the company, according to the register of directors' interests, were as follows: |
30.9.23 | 1.10.22 |
A ordinary shares of £1 each | 589,050 | 589,050 |
B ordinary shares of £1 each | 282,975 | 282,975 |
He did not hold any non-beneficial interests in any of the shares of the company. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
AUDITORS |
The auditors, M. D. Coxey and Co. Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
JBF GROUP HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of JBF Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30th September 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30th September 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
JBF GROUP HOLDINGS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
JBF GROUP HOLDINGS LIMITED |
Auditors' 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 a Report of the Auditors 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: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- 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 |
- 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 journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions; |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
JBF GROUP HOLDINGS LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
25 Grosvenor Road |
Wrexham |
LL11 1BT |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ |
TURNOVER | 3 | 12,574,402 | 13,725,157 |
Cost of sales | 9,400,300 | 10,522,897 |
GROSS PROFIT | 3,174,102 | 3,202,260 |
Administrative expenses | 2,701,271 | 2,634,935 |
472,831 | 567,325 |
Other operating income | 4 | 3,106 | 5,000 |
OPERATING PROFIT | 6 | 475,937 | 572,325 |
Interest receivable and similar income | 7 | 41 | 9 |
475,978 | 572,334 |
Gain/loss on revaluation of investments | 217,125 | - |
693,103 | 572,334 |
Interest payable and similar expenses | 8 | 3,882 | 3,700 |
PROFIT BEFORE TAXATION | 689,221 | 568,634 |
Tax on profit | 9 | 143,211 | (23,776 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
546,010 |
592,410 |
Profit attributable to: |
Owners of the parent | 546,010 | 592,410 |
Total comprehensive income attributable to: |
Owners of the parent | 546,010 | 592,410 |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
CONSOLIDATED BALANCE SHEET |
30TH SEPTEMBER 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 1,259,820 | 1,399,800 |
Tangible assets | 13 | 1,471,342 | 1,436,746 |
Investments | 14 | - | - |
Investment property | 15 | 600,000 | 382,875 |
3,331,162 | 3,219,421 |
CURRENT ASSETS |
Stocks | 16 | 115,855 | 442,694 |
Debtors | 17 | 2,937,138 | 2,668,056 |
Cash at bank and in hand | 1,149,064 | 794,217 |
4,202,057 | 3,904,967 |
CREDITORS |
Amounts falling due within one year | 18 | 2,053,101 | 1,759,239 |
NET CURRENT ASSETS | 2,148,956 | 2,145,728 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,480,118 |
5,365,149 |
CREDITORS |
Amounts falling due after more than one year |
19 |
(103,337 |
) |
(100,702 |
) |
PROVISIONS FOR LIABILITIES | 23 | (175,441 | ) | (45,277 | ) |
NET ASSETS | 5,201,340 | 5,219,170 |
CAPITAL AND RESERVES |
Called up share capital | 24 | 1,155,000 | 1,155,000 |
Retained earnings | 25 | 4,046,340 | 4,064,170 |
SHAREHOLDERS' FUNDS | 5,201,340 | 5,219,170 |
The financial statements were approved by the director and authorised for issue on 11th July 2024 and were signed by: |
A J Broderick - Director |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
COMPANY BALANCE SHEET |
30TH SEPTEMBER 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
Investment property | 15 |
CURRENT ASSETS |
Debtors | 17 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 18 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 23 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 128,906 | 73,672 |
The financial statements were approved by the director and authorised for issue on |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st October 2021 | 1,155,000 | 3,740,513 | 4,895,513 |
Changes in equity |
Dividends | - | (268,753 | ) | (268,753 | ) |
Total comprehensive income | - | 592,410 | 592,410 |
Balance at 30th September 2022 | 1,155,000 | 4,064,170 | 5,219,170 |
Changes in equity |
Dividends | - | (563,840 | ) | (563,840 | ) |
Total comprehensive income | - | 546,010 | 546,010 |
Balance at 30th September 2023 | 1,155,000 | 4,046,340 | 5,201,340 |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st October 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30th September 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30th September 2023 |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
30.9.23 | 30.9.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,136,336 | 481,982 |
Interest paid | (3,217 | ) | (3,700 | ) |
Interest element of hire purchase payments paid |
(665 |
) |
- |
Tax paid | (1,155 | ) | - |
Net cash from operating activities | 1,131,299 | 478,282 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (218,846 | ) | (313,315 | ) |
Sale of tangible fixed assets | 1,600 | 117,500 |
Interest received | 41 | 9 |
Net cash from investing activities | (217,205 | ) | (195,806 | ) |
Cash flows from financing activities |
New HP contracts in year | 48,401 | - |
Loan repayments in year | (42,050 | ) | (43,743 | ) |
Capital repayments in year | (1,758 | ) | (12,360 | ) |
Amount withdrawn by directors | - | (434 | ) |
Equity dividends paid | (563,840 | ) | (268,753 | ) |
Net cash from financing activities | (559,247 | ) | (325,290 | ) |
Increase/(decrease) in cash and cash equivalents | 354,847 | (42,814 | ) |
Cash and cash equivalents at beginning of year |
2 |
794,217 |
837,031 |
Cash and cash equivalents at end of year | 2 | 1,149,064 | 794,217 |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.9.23 | 30.9.22 |
£ | £ |
Profit before taxation | 689,221 | 568,634 |
Depreciation charges | 322,566 | 163,931 |
Loss/(profit) on disposal of fixed assets | 64 | (14,250 | ) |
Gain on revaluation of fixed assets | (217,125 | ) | - |
Finance costs | 3,882 | 3,700 |
Finance income | (41 | ) | (9 | ) |
798,567 | 722,006 |
Decrease in stocks | 326,839 | 1,070,383 |
Increase in trade and other debtors | (269,082 | ) | (1,626,179 | ) |
Increase in trade and other creditors | 280,012 | 315,772 |
Cash generated from operations | 1,136,336 | 481,982 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30th September 2023 |
30.9.23 | 1.10.22 |
£ | £ |
Cash and cash equivalents | 1,149,064 | 794,217 |
Year ended 30th September 2022 |
30.9.22 | 1.10.21 |
£ | £ |
Cash and cash equivalents | 794,217 | 837,031 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.10.22 | Cash flow | At 30.9.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 794,217 | 354,847 | 1,149,064 |
794,217 | 354,847 | 1,149,064 |
Debt |
Finance leases | (1,364 | ) | (46,643 | ) | (48,007 | ) |
Debts falling due within 1 year | (43,466 | ) | (960 | ) | (44,426 | ) |
Debts falling due after 1 year | (100,702 | ) | 43,010 | (57,692 | ) |
(145,532 | ) | (4,593 | ) | (150,125 | ) |
Total | 648,685 | 350,254 | 998,939 |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
1. | STATUTORY INFORMATION |
JBF Group Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
In the application of the Company’s accounting policies, management are required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily available from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below: |
- Estimated useful lives and residual values of fixed assets: |
Depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives used by other companies operating in the sector and actual asset lives and residual values, as evidenced by disposals during current and prior accounting periods. |
- Estimated write down of stock and WIP to net realisable value: |
Stock valuation and amounts recoverable on contracts have been based on net realisable value deemed appropriate by the directors. The estimated write down of stock and amounts recoverable on contracts to net realisable value is reviewed annually and revised as appropriate by the directors. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Where the outcome of individual contracts can be measured reliably, contract revenue is recognised by reference to the measure of progress at the reporting date. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
30.9.23 | 30.9.22 |
£ | £ |
United Kingdom | 10,516,279 | 12,073,687 |
Channel Islands | 2,058,123 | 1,651,470 |
12,574,402 | 13,725,157 |
An analysis of turnover by class of business is given below: |
30.9.23 | 30.9.22 |
£ | £ |
Civil, structural and mechanical engineering | 12,574,402 | 13,725,157 |
12,574,402 | 13,725,157 |
4. | OTHER OPERATING INCOME |
30.9.23 | 30.9.22 |
£ | £ |
Sundry receipts | 2,606 | - |
Government grants | 500 | 5,000 |
3,106 | 5,000 |
5. | EMPLOYEES AND DIRECTORS |
30.9.23 | 30.9.22 |
£ | £ |
Wages and salaries | 2,834,373 | 2,877,974 |
Social security costs | 303,150 | 316,578 |
Other pension costs | 98,210 | 99,986 |
3,235,733 | 3,294,538 |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
30.9.23 | 30.9.22 |
Production | 41 | 43 |
Office | 28 | 26 |
The average number of employees by undertakings that were proportionately consolidated during the year was NIL (2022 - NIL). |
30.9.23 | 30.9.22 |
£ | £ |
Director's remuneration | 12,500 | 12,500 |
Director's pension contributions to money purchase schemes | 40,377 | 45,688 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.9.23 | 30.9.22 |
£ | £ |
Hire of plant and machinery | 661,271 | 834,621 |
Other operating leases | 600 | - |
Depreciation - owned assets | 176,190 | 154,381 |
Depreciation - assets on hire purchase contracts | 6,396 | 9,550 |
Loss/(profit) on disposal of fixed assets | 64 | (14,250 | ) |
Goodwill amortisation | 139,980 | - |
Auditors' remuneration | 11,500 | - |
Auditors' remuneration for non audit work | 11,440 | 11,686 |
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
30.9.23 | 30.9.22 |
£ | £ |
Deposit account interest | 41 | 9 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.9.23 | 30.9.22 |
£ | £ |
Bank loan interest | 3,217 | 3,700 |
Hire purchase | 665 | - |
3,882 | 3,700 |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
9. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
30.9.23 | 30.9.22 |
£ | £ |
Current tax: |
UK corporation tax | 13,047 | 1,155 |
Deferred tax | 130,164 | (24,931 | ) |
Tax on profit | 143,211 | (23,776 | ) |
UK corporation tax has been charged at 25 % (2022 - 19 %). |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
30.9.23 | 30.9.22 |
£ | £ |
Profit before tax | 689,221 | 568,634 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
172,305 |
108,040 |
Effects of: |
Enhanced deductions | (126,816 | ) | (94,731 | ) |
Super deductions | (1,685 | ) | (1,994 | ) |
Marginal rate adjustment | (2,180 | ) | - |
Non-qualifying depreciation | 39,838 | - |
Deferred tax rate adjustment | 61,749 | (35,091 | ) |
Total tax charge/(credit) | 143,211 | (23,776 | ) |
Tax rate changes |
In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase from 19% to 25%. This new law was substantively enacted on 24 May 2021. |
Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements. |
10. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
Interim dividends per share were paid during the year as follows: |
A Ordinary £1 | - 48.244p |
B Ordinary £1 | - 49.414p |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1st October 2022 |
and 30th September 2023 | 1,399,800 |
AMORTISATION |
Amortisation for year | 139,980 |
At 30th September 2023 | 139,980 |
NET BOOK VALUE |
At 30th September 2023 | 1,259,820 |
At 30th September 2022 | 1,399,800 |
13. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1st October 2022 | 968,512 | 678,639 | 111,518 | 415,540 | 2,174,209 |
Additions | - | 132,082 | 9,186 | 77,578 | 218,846 |
Disposals | - | - | (22,259 | ) | (35,395 | ) | (57,654 | ) |
At 30th September 2023 | 968,512 | 810,721 | 98,445 | 457,723 | 2,335,401 |
DEPRECIATION |
At 1st October 2022 | - | 399,646 | 69,484 | 268,333 | 737,463 |
Charge for year | 19,372 | 91,324 | 12,832 | 59,058 | 182,586 |
Eliminated on disposal | - | - | (22,259 | ) | (33,731 | ) | (55,990 | ) |
At 30th September 2023 | 19,372 | 490,970 | 60,057 | 293,660 | 864,059 |
NET BOOK VALUE |
At 30th September 2023 | 949,140 | 319,751 | 38,388 | 164,063 | 1,471,342 |
At 30th September 2022 | 968,512 | 278,993 | 42,034 | 147,207 | 1,436,746 |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1st October 2022 | 38,200 |
Additions | 64,128 |
Transfer to ownership | (38,200 | ) |
At 30th September 2023 | 64,128 |
DEPRECIATION |
At 1st October 2022 | 35,812 |
Charge for year | 6,396 |
Transfer to ownership | (38,200 | ) |
At 30th September 2023 | 4,008 |
NET BOOK VALUE |
At 30th September 2023 | 60,120 |
At 30th September 2022 | 2,388 |
Company |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1st October 2022 |
Additions |
At 30th September 2023 |
DEPRECIATION |
At 1st October 2022 |
Charge for year |
At 30th September 2023 |
NET BOOK VALUE |
At 30th September 2023 |
At 30th September 2022 |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1st October 2022 |
and 30th September 2023 |
NET BOOK VALUE |
At 30th September 2023 |
At 30th September 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Bryn Lane, Wrexham Industrial Estate, Wrexham, Clwyd LL13 9UT |
Nature of business: |
% |
Class of shares: | holding |
30.9.23 | 30.9.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Bryn Lane, Wrexham Industrial Estate, Wrexham, Clwyd LL13 9UT |
Nature of business: |
% |
Class of shares: | holding |
30.9.23 | 30.9.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Bryn Lane, Wrexham Industrial Estate, Wrexham, Clwyd LL13 9UT |
Nature of business: |
% |
Class of shares: | holding |
30.9.23 | 30.9.22 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
15. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1st October 2022 | 382,875 |
Revaluations | 217,125 |
At 30th September 2023 | 600,000 |
NET BOOK VALUE |
At 30th September 2023 | 600,000 |
At 30th September 2022 | 382,875 |
Fair value at 30th September 2023 is represented by: |
£ |
Valuation in 2024 | 217,125 |
Cost | 382,875 |
600,000 |
If investment property had not been revalued it would have been included at the following historical cost: |
30.9.23 | 30.9.22 |
£ | £ |
Cost | 382,875 | 382,875 |
Investment property was valued on an open market basis on 20th June 2024 by L R Hayward MRICS of Wingetts Limited . |
Company |
Total |
£ |
FAIR VALUE |
At 1st October 2022 |
Revaluations | 217,125 |
At 30th September 2023 |
NET BOOK VALUE |
At 30th September 2023 |
At 30th September 2022 |
Fair value at 30th September 2023 is represented by: |
£ |
Valuation in 2024 | 217,125 |
Cost | 382,875 |
600,000 |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
15. | INVESTMENT PROPERTY - continued |
Company |
If investment property had not been revalued it would have been included at the following historical cost: |
30.9.23 | 30.9.22 |
£ | £ |
Cost | 382,875 | - |
Investment property was valued on an open market basis on 20th June 2024 by L R Hayward MRICS of Wingetts Limited . |
16. | STOCKS |
Group |
30.9.23 | 30.9.22 |
£ | £ |
Stocks | 87,720 | 20,000 |
Work-in-progress | 28,135 | 422,694 |
115,855 | 442,694 |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Trade debtors | 2,043,351 | 2,101,464 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contract | 262,733 | - |
Other debtors | 480,763 | 566,592 |
VAT | 150,291 | - |
2,937,138 | 2,668,056 |
18. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 20) | 44,426 | 43,466 |
Hire purchase contracts (see note 21) | 2,362 | 1,364 |
Trade creditors | 1,342,777 | 1,028,855 |
Amounts owed to group undertakings | - | - |
Tax | 13,047 | 1,155 |
Social security and other taxes | 106,640 | 84,551 |
VAT | - | 97,975 | 1,480 | - |
Other creditors | 33,776 | 51,240 |
Accrued expenses | 510,073 | 450,633 |
2,053,101 | 1,759,239 |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
19. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
30.9.23 | 30.9.22 |
£ | £ |
Bank loans (see note 20) | 57,692 | 100,702 |
Hire purchase contracts (see note 21) | 45,645 | - |
103,337 | 100,702 |
20. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
30.9.23 | 30.9.22 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 44,426 | 43,466 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 42,511 | 43,467 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 15,181 | 57,235 |
21. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
30.9.23 | 30.9.22 |
£ | £ |
Net obligations repayable: |
Within one year | 2,362 | 1,364 |
Between one and five years | 45,645 | - |
48,007 | 1,364 |
Group |
Non-cancellable operating | leases |
30.9.23 | 30.9.22 |
£ | £ |
Within one year | 9,956 | 9,956 |
Between one and five years | 11,601 | 21,557 |
21,557 | 31,513 |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
22. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
30.9.23 | 30.9.22 |
£ | £ |
Bank loans | 102,118 | 144,168 |
Hire purchase contracts | 48,007 | 1,364 |
150,125 | 145,532 |
Debts are secured over the underlying assets. |
23. | PROVISIONS FOR LIABILITIES |
Group | Company |
30.9.23 | 30.9.22 | 30.9.23 | 30.9.22 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 121,160 | 45,277 |
Other timing differences | 54,281 | - | 54,281 | - |
175,441 | 45,277 | 98,405 | - |
Group |
Deferred |
tax |
£ |
Balance at 1st October 2022 | 45,277 |
Movement in the year due to: |
changes in tax rates | 61,749 |
changes in tax allowances | 68,415 |
Balance at 30th September 2023 | 175,441 |
Company |
Deferred |
tax |
£ |
Movement in the year due to: |
changes in tax rates | 47,451 |
changes in tax allowances | (3,327 | ) |
investment revaluations | 54,281 |
Balance at 30th September 2023 |
The net deferred tax liability expected to reverse on capital allowances in the year to 30th September 2024 is £45,146. |
JBF GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 08778541) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30TH SEPTEMBER 2023 |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.9.23 | 30.9.22 |
value: | £ | £ |
A ordinary | £1 | 589,050 | 589,050 |
B ordinary | £1 | 565,950 | 565,950 |
1,155,000 | 1,155,000 |
There are two classes of ordinary share. There are no restrictions on the distribution of dividends or the repayment of capital. |
25. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1st October 2022 | 4,064,170 |
Profit for the year | 546,010 |
Dividends | (563,840 | ) |
At 30th September 2023 | 4,046,340 |
Company |
Retained |
earnings |
£ |
At 1st October 2022 |
Profit for the year |
Dividends | ( |
) |
At 30th September 2023 |
26. | PENSION COMMITMENTS |
Contributions totalling £1,939 (2022: £2,115) were payable to the defined contribution scheme at the year end and are included in Creditors: amounts falling due within one year. |
27. | CAPITAL COMMITMENTS |
30.9.23 | 30.9.22 |
£ | £ |
Contracted but not provided for in the |
financial statements | - | - |
28. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is A J Broderick. |