Company registration number 02981046 (England and Wales)
J W EUROPEAN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
J W EUROPEAN LIMITED
COMPANY INFORMATION
Directors
Mr P Birch
Mrs J Phillips
Secretary
Mr D Langmead
Company number
02981046
Registered office
C/O Azets
Carnac Place
Cams Hall Estate
Fareham
Hampshire
United Kingdom
PO16 8UY
Auditor
Azets Audit Services
Carnac Place
Cams Hall Estate
Fareham
Hampshire
United Kingdom
PO16 8UY
Business address
The Old Dairy, Ham Farm
Main Road
Bosham
Chichester
West Sussex
United Kingdom
PO18 8EH
J W EUROPEAN LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
4
Directors' responsibilities statement
3
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
J W EUROPEAN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
The Company is principally involved in the procurement, packing and selling of babyleaf salad to retailers, processors and wholesalers.
During this period, revenue from the sales of salad increased by 24.43% due to securing a new retail contract.
EBITDA during this period decreased due to the inflationary impact of input costs, principally labour, utilities and raw material.
The company has been through a restructuring process which has proved effective, and is now confident in returning to profitability for the current financial year.
The company supports all suppliers with undertaking ESG goals and moving them forward. The company’s patented technology reduces water use and extends product life helping to address food waste in the bagged salad sector.
The key financial indicators used to determine the progress and performance of the company are as follow:
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Revenue from sales of salad | | |
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J W EUROPEAN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Principal risks and uncertainties
The directors select appropriate policies to manage a number of key risks. These are based on the market that the company is operating on and the wider economic situation.
Commercial Risk
The company operates to high standards of service and technical delivery to retain and grow with long standing customers, investing in its patented technology and carefully managing the supply base.
Supply Chain Risk
The principal supply chain risk is the availability of raw salad leaves from the company’s growing partners driven mainly by weather conditions. This is mitigated by well chosen supply partners whom the company has worked with for many years who all understand the company’s commercial and technical needs. The supply base is also reviewed regularly to ensure there is enough diversity to reduce crop availability risks.
Operational Risk
The use of third party packers rather than a site controlled entirely by the company is the principal risk. All third party packers have been packing for the company for many years as per the raw material supply base and are all audited annually to industry standards.
Foreign Exchange Risk
The company during this period was operating foreign exchange trading with a portfolio of foreign exchange options, including derivatives, to reduce reliance. The strategy remains to trade forward contracts to be in line with budgets and agreed currency rates in customer costings.
Liquidity Risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future contracts the company uses a mixture of long term and short term debt options.
..............................
Mrs J Phillips
Director
Date: .............................................
J W EUROPEAN LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
J W EUROPEAN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the Company in the period under review was that of trading fresh produce.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £150,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr D P Birch
(Resigned 17 July 2023)
Mr P Birch
Mr. D W Langmead
(Resigned 14 July 2023)
Mr. S L Phillips
(Resigned 14 August 2023)
Mrs J Phillips
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mrs J Phillips
Director
20 September 2024
J W EUROPEAN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J W EUROPEAN LIMITED
- 5 -
Opinion
We have audited the financial statements of J W European Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2024 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
J W EUROPEAN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J W EUROPEAN LIMITED
- 6 -
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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
J W EUROPEAN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J W EUROPEAN LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Other matters which we are required to address
Comparative information in the financial statements is derived from the company's prior period financial statements which were not audited.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mr Richard Hutchinson
Senior Statutory Auditor
For and on behalf of Azets Audit Services
23 September 2024
Chartered Accountants
Carnac Place
Statutory Auditor
Fareham
Cams Hall Estate
Hampshire
United Kingdom
PO16 8UY
J W EUROPEAN LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
21,156,723
17,161,461
Cost of sales
(18,479,009)
(15,158,537)
Gross profit
2,677,714
2,002,924
Administrative expenses
(3,106,538)
(2,115,649)
Operating loss
4
(428,824)
(112,725)
Interest receivable and similar income
7
1,754
Interest payable and similar expenses
8
(123,761)
(23,725)
Loss before taxation
(550,831)
(136,450)
Tax on loss
9
148,247
168,349
(Loss)/profit for the financial year
(402,584)
31,899
Retained earnings brought forward
1,559,237
1,677,338
Dividends
10
(150,000)
(150,000)
Retained earnings carried forward
1,006,653
1,559,237
J W EUROPEAN LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
19,237
20,982
Tangible assets
12
2,461,678
3,197,227
2,480,915
3,218,209
Current assets
Stocks
13
187,841
133,006
Debtors
14
2,900,853
3,086,102
Cash at bank and in hand
725,014
1,356,537
3,813,708
4,575,645
Creditors: amounts falling due within one year
15
(4,469,848)
(5,037,308)
Net current liabilities
(656,140)
(461,663)
Total assets less current liabilities
1,824,775
2,756,546
Creditors: amounts falling due after more than one year
17
(818,022)
(1,116,533)
Provisions for liabilities
Deferred tax liability
18
80,676
-
(80,676)
Net assets
1,006,753
1,559,337
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
1,006,653
1,559,237
Total equity
1,006,753
1,559,337
The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
Mrs J Phillips
Director
Company Registration No. 02981046
J W EUROPEAN LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
16,680
1,245,704
Interest paid
(123,761)
(23,725)
Income taxes refunded/(paid)
36,360
(36,360)
Net cash (outflow)/inflow from operating activities
(70,721)
1,185,619
Investing activities
Purchase of intangible assets
(9,195)
(11,912)
Purchase of tangible fixed assets
(44,313)
(2,551,991)
Proceeds from disposal of tangible fixed assets
3,000
Interest received
1,754
Net cash used in investing activities
(51,754)
(2,560,903)
Financing activities
Payment of finance leases obligations
(359,048)
1,228,311
Dividends paid
(150,000)
(150,000)
Net cash (used in)/generated from financing activities
(509,048)
1,078,311
Net decrease in cash and cash equivalents
(631,523)
(296,973)
Cash and cash equivalents at beginning of year
1,356,537
1,653,510
Cash and cash equivalents at end of year
725,014
1,356,537
J W EUROPEAN LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
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.
Depreciation of plant and machinery
In applying the company's accounting policies set out in the note below, the directors are required to make judgements and estimates on the useful lives of the assets used within the trade of the business.
As detail is not accessible for other sources, these judgements are based on experience and the development of a prototype. Therefore the depreciation policy is set for assets to be depreiciated over five years, however the acutal useful life of these assets may vary from the policy itself.
2
Accounting policies
Company information
J W European Limited is a private company, limited by shares, domiciled and incorporated in England and Wales (registered number: 02981046). The registered office address is C/O Azets, Carnac Place, Cams Hall Estate, Fareham, Hampshire, United Kingdom, PO16 8UY.
2.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements relate to J W European Limited as an individual entity.
2.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
2.3
Turnover
Turnover represents the value of goods and services supplied, excluding value added tax.
Turnover relates to the Company's principle activity and was carried out within the United Kingdom and Europe. Turnover is recognised when the goods are physically delivered to the customer or when goods are collected by the customer if applicable.
J W EUROPEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2
Accounting policies
(Continued)
- 12 -
2.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents & licences
20% straight-line & 100% straight-line
2.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
10% reducing balance
Plant and equipment
20-33% straight-line and 25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
2.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
2.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
J W EUROPEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Accounting policies
(Continued)
- 13 -
2.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
2.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
J W EUROPEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Accounting policies
(Continued)
- 14 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
2.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
2.11
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
2.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
J W EUROPEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Accounting policies
(Continued)
- 15 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
2.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
J W EUROPEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Accounting policies
(Continued)
- 16 -
2.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of salad
20,188,364
16,208,465
Sales of other food stuffs
14,391
14,708
Sales of herbs
198,105
207,671
Packaging
665,193
699,295
Other income
90,670
31,322
21,156,723
17,161,461
2024
2023
£
£
Other revenue
Interest income
1,754
-
4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(75,016)
27,658
Hedging instrument losses/(gains)
4,369
(15,065)
Fees payable to the company's auditor for the audit of the company's financial statements
25,000
22,500
Depreciation of owned tangible fixed assets
779,862
331,995
Amortisation of intangible assets
10,940
5,895
Operating lease charges
138,565
74,618
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
431,567
519,833
Company pension contributions to defined contribution schemes
26,422
15,963
457,989
535,796
J W EUROPEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
6
Employees
The average monthly number of persons (including directors) employed by the Company during the year was:
2024
2023
Number
Number
11
12
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
860,127
911,416
Social security costs
93,326
102,646
Pension costs
50,392
52,805
1,003,845
1,066,867
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,653
Other interest income
101
Total income
1,754
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,653
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
123,761
23,725
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(36,360)
J W EUROPEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Taxation
2024
2023
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
(148,247)
(131,989)
Total tax credit
(148,247)
(168,349)
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(550,831)
(136,450)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(137,708)
(25,926)
Tax effect of expenses that are not deductible in determining taxable profit
3,768
12,519
Effect of change in corporation tax rate
(38,984)
Permanent capital allowances in excess of depreciation
(146,403)
Deferred tax adjustments in respect of prior years
(14,307)
30,445
Taxation credit for the year
(148,247)
(168,349)
10
Dividends
2024
2023
£
£
Final paid
150,000
150,000
J W EUROPEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
11
Intangible fixed assets
Patents & licences
£
Cost
At 1 April 2023
36,365
Additions
9,195
At 31 March 2024
45,560
Amortisation and impairment
At 1 April 2023
15,383
Amortisation charged for the year
10,940
At 31 March 2024
26,323
Carrying amount
At 31 March 2024
19,237
At 31 March 2023
20,982
12
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 1 April 2023
13,012
4,590,863
4,603,875
Additions
44,313
44,313
At 31 March 2024
13,012
4,635,176
4,648,188
Depreciation and impairment
At 1 April 2023
7,746
1,398,902
1,406,648
Depreciation charged in the year
503
779,359
779,862
At 31 March 2024
8,249
2,178,261
2,186,510
Carrying amount
At 31 March 2024
4,763
2,456,915
2,461,678
At 31 March 2023
5,266
3,191,961
3,197,227
13
Stocks
2024
2023
£
£
Raw materials and consumables
187,841
133,006
J W EUROPEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,376,627
2,356,279
Corporation tax recoverable
36,360
Other debtors
350,433
408,965
Prepayments and accrued income
106,222
284,498
2,833,282
3,086,102
Deferred tax asset (note 18)
67,571
2,900,853
3,086,102
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
351,340
411,877
Trade creditors
3,837,548
4,419,293
Taxation and social security
22,032
70,058
Other creditors
21,922
12,588
Accruals and deferred income
237,006
123,492
4,469,848
5,037,308
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
351,340
411,877
In two to five years
818,022
1,116,533
1,169,362
1,528,410
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
818,022
1,116,533
The hire purchase and lease agreements are secured by selected assets listed within the agreements.
J W EUROPEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
-
812,489
(614,615)
-
Tax losses
-
(731,213)
682,034
-
Retirement benefit obligations
-
(600)
152
-
-
80,676
67,571
-
2024
Movements in the year:
£
Liability at 1 April 2023
80,676
Credit to profit or loss
(148,247)
Asset at 31 March 2024
(67,571)
The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
50,392
52,805
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Shares of £1 each
50
50
50
50
Ordinary B Shares of £1 each
50
50
50
50
100
100
100
100
Ordinary A and B shares rank equally in all repects other than of the declaration of dividends. Dividends may be declared one one class of share and not on the other. Furthermore, dividends can be declared at different rates on the different classes of shares.
J W EUROPEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
20,000
38,965
Between two and five years
5,000
25,000
25,000
63,965
22
Related party transactions
Remuneration of key management personnel
Key management personnel compensation during the year totalled £384,609 (2023: £605,820).
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Companies under common control
590,067
2,536,041
3,692,136
3,974,636
Amount due to related party
2024
2023
£
£
Companies under common control
791,650
1,112,208
23
Directors' transactions
At the year end, an outstanding balance of £191,000 (2023: £191,000) was owed to the Company from the directors. This amount is in the form of a loan, with interest charged at 2% above base rate from 1st March 2025. The loan is repayable at the earlier of 5th August 2033, or the completion date following the sale of a contingent asset named in the agreement.
24
Ultimate controlling party
The company is controlled jointly by David Langmead and Peter Birch.
J W EUROPEAN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
25
Cash generated from operations
2024
2023
£
£
(Loss)/profit for the year after tax
(402,584)
31,899
Adjustments for:
Taxation credited
(148,247)
(168,349)
Finance costs
123,761
23,725
Investment income
(1,754)
Amortisation and impairment of intangible assets
10,940
5,895
Depreciation and impairment of tangible fixed assets
779,862
331,995
Movements in working capital:
Increase in stocks
(54,835)
(59,869)
Decrease/(increase) in debtors
216,460
(239,417)
(Decrease)/increase in creditors
(506,923)
1,319,825
Cash generated from operations
16,680
1,245,704
26
Analysis of changes in net debt
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,356,537
(631,523)
725,014
Obligations under finance leases
(1,528,410)
359,048
(1,169,362)
(171,873)
(272,475)
(444,348)
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