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Registered number: 01761275










JOHN ADAMS LEISURE LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023



 
JOHN ADAMS LEISURE LIMITED
 

COMPANY INFORMATION


Directors
M R Moody 
S R Pilkington 
A C Shepherd 




Secretary
A C Shepherd



Registered number
01761275



Registered office
Hercules House
Pierson Road

Alconbury Weald

Huntingdon

Cambridgeshire

PE28 4YA




Independent auditor
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

Reading Bridge House

George Street

Reading

Berkshire

RG1 8LS





 
JOHN ADAMS LEISURE LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditor's Report
 
5 - 7
Statement of Comprehensive Income
 
8
Balance Sheet
 
9
Statement of Changes in Equity
 
10
Notes to the Financial Statements
 
11 - 24


 
JOHN ADAMS LEISURE LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Business review
 
The business review for 2023 highlights the challenges faced in achieving the planned improvement in the trading position during the year.  The factors that impacted our planned growth being:
 
Interest rates increased and inflation remained high keeping the cost of living elevated and consumer confidence low
Considerable clearance stock from the pandemic still in the market creating a hangover effect
The ongoing Russia-Ukraine war posed a global challenge

Despite planning for an improved 2023, the results fell short of the original targets, primarily due to a slower than anticipated recovery in the UK market.  The lingering effects of the pandemic, coupled with the factors mentioned above hindered the planned growth and improvement in trading position.
Turnover for the year improved from £17.1m to £17.5m with an Operating Loss of £(0.2)m compared to £0.4m in 2022.
The retained profit after taxation of £0.2m has been transferred to reserves and the balance sheet value has increased to £20.9m.

Principal risks and uncertainties
 
The management of the business and the nature of the Company’s strategy are subject to a number of risks and uncertainties. The Directors have set out below the principal risks facing the business:
Competition
The business operates in a competitive market and one that is currently subject to volatility due to lacklustre consumer confidence and the continuing competitive market pressures resulting in reduced outlets to buy Toys & Games on the high street. Policies to mitigate these trends include the sales development of new & emerging retail partners now engaging in taking a share of toys & games, developing our on line presence and continuous improvement in product & customer serviceability.    
Customers
Credit risk to customers is managed through a credit control process and retention of title clauses.
Suppliers
The manufacture of our products is mainly carried out in China, with potential risks and uncertainties covering product safety, quality control issues and delivery schedules.  This risk is managed by selecting and monitoring appropriate manufacturing facilities which are contacted on a regular basis.
Foreign currency
The majority of the product purchases are made in US dollars; consequently the business is exposed to foreign currency fluctuations.  This foreign exchange risk is managed with forward foreign exchange contracts and currency options, to reduce the exposure.
Environmental
The business places emphasis upon environmental compliance especially in connection with product packaging and works towards constant improvement to ensure compliance with relevant legislation.
Liquidity risk
The business actively maintains asset backed finance to ensure that sufficient funds are in place for its operations and expansion.

Page 1

 
JOHN ADAMS LEISURE LIMITED
 

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

Financial key performance indicators
 
The key performance indicators of the business are revenues, gross margin and operating profit (as detailed in the statement of comprehensive income) and cash generation.


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





A C Shepherd
Director

Date: 27 August 2024

Page 2

 
JOHN ADAMS LEISURE LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors

The directors who served during the year were:

M R Moody 
S R Pilkington 
A C Shepherd 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.

Results and dividends

The profit for the year, after taxation, amounted to £180,490 (2022 - £210,886).

Dividends totalling £92,900 were paid during the year (2022: £nil).

Future developments

The Company has a strong business model with a balanced portfolio of domestic UK and International business. The Company will develop and launch exciting new products and invest in its product ranges & categories to achieve a profitable result. The Company will continue to address the rapidly changing marketplace by maintaining a strong focus on maximising distribution and consumer offtake in what is expected to be a more positive trading environment.

Page 3

 
JOHN ADAMS LEISURE LIMITED
 

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

Disclosure of information to auditor

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

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

Auditor

The auditor, James Cowper Kreston Auditwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





A C Shepherd
Director

Date: 27 August 2024

Page 4

 
JOHN ADAMS LEISURE LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOHN ADAMS LEISURE LIMITED
 

Opinion


We have audited the financial statements of John Adams Leisure Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Other information


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


We have nothing to report in this regard.


Page 5

 
JOHN ADAMS LEISURE LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOHN ADAMS LEISURE LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


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


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.


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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

 
Page 6

 
JOHN ADAMS LEISURE LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOHN ADAMS LEISURE LIMITED (CONTINUED)


The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:

Enquiry of management and those charged with governance around actual and potential litigation and claims;
Enquiry of management and those charged with governance to identify any material instances of non compliance with laws and regulations;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work to address the risk of irregularities due to management 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 evidence of bias.



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


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Alexander Peal BSc (Hons) FCA DChA (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Chartered Accountants and Statutory Auditor
  
Reading Bridge House
George Street
Reading
Berkshire
RG1 8LS

 
Date: 
27 August 2024
Page 7

 
JOHN ADAMS LEISURE LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
17,451,554
17,123,098

Cost of sales
  
(11,045,452)
(11,069,524)

Gross profit
  
6,406,102
6,053,574

Administrative expenses
  
(7,811,429)
(6,802,380)

Other operating income
 5 
1,180,257
1,316,359

Fair value movements
  
-
(151,856)

Operating (loss)/profit
 6 
(225,070)
415,697

Income from fixed assets investments
 10 
433,238
-

Interest receivable and similar income
  
-
6

Interest payable and similar expenses
  
(66,471)
(86,553)

Profit before tax
  
141,697
329,150

Tax on profit
 11 
38,793
(118,264)

Profit for the financial year
  
180,490
210,886

There was no other comprehensive income for 2023 or 2022.

The notes on pages 11 to 24 form part of these financial statements.

Page 8

 
JOHN ADAMS LEISURE LIMITED
REGISTERED NUMBER: 01761275

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
425,221
672,864

Investments
 13 
903
903

  
426,124
673,767

Current assets
  

Stocks
 14 
6,249,861
8,955,803

Debtors: amounts falling due within one year
 15 
19,857,911
17,785,521

Cash at bank and in hand
 16 
333,402
747,548

  
26,441,174
27,488,872

Creditors: amounts falling due within one year
 17 
(5,974,406)
(7,318,544)

Net current assets
  
 
 
20,466,768
 
 
20,170,328

Total assets less current liabilities
  
20,892,892
20,844,095

Provisions for liabilities
  

Deferred tax
 18 
(8,197)
(46,990)

Net assets
  
20,884,695
20,797,105


Capital and reserves
  

Called up share capital 
 20 
929
929

Capital redemption reserve
 19 
71
71

Profit and loss account
 19 
20,883,695
20,796,105

  
20,884,695
20,797,105


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




A C Shepherd
Director

Date: 27 August 2024

The notes on pages 11 to 24 form part of these financial statements.

Page 9

 
JOHN ADAMS LEISURE LIMITED
 

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


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

£
£
£
£

At 1 January 2023
929
71
20,796,105
20,797,105



Profit for the year
-
-
180,490
180,490

Dividends: Equity capital
-
-
(92,900)
(92,900)


At 31 December 2023
929
71
20,883,695
20,884,695



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


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

£
£
£
£

At 1 January 2022
929
71
20,585,219
20,586,219



Profit for the year
-
-
210,886
210,886


At 31 December 2022
929
71
20,796,105
20,797,105


The notes on pages 11 to 24 form part of these financial statements.

Page 10

 
JOHN ADAMS LEISURE LIMITED
 

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

1.


General information

John Adams Leisure Limited is a private company limited by share capital and incorporated in England and Wales. The address of the registered office and principal place of business is Hercules House, Pierson Road, Alconbury Weald, Huntingdon, Cambridgeshire, PE28 4YA.
The principal activity of the Company is that of inventing, selling, distributing and marketing of toys, games and related products. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Toy Brokers Holdings Limited as at 31 December 2023 and these financial statements may be obtained from Companies House.

Page 11

 
JOHN ADAMS LEISURE LIMITED
 

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

2.Accounting policies (continued)

 
2.3

Revenue

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

Sale of goods

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

 
2.4

Tangible fixed assets

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

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

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

Depreciation is provided on the following basis:

Plant & machinery
-
10% to 20% straight line
Motor vehicles
-
25% straight line
Fixtures & fittings
-
12.5% straight line

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

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

 
2.5

Operating leases: the Company as lessee

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

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

Page 12

 
JOHN ADAMS LEISURE LIMITED
 

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

2.Accounting policies (continued)

 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.7

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.8

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.9

Financial instruments

The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. The company also enters into complex financial instruments in the form of derivative instruments.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
 
Page 13

 
JOHN ADAMS LEISURE LIMITED
 

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

2.Accounting policies (continued)


2.9
Financial instruments (continued)

Investments in non-puttable ordinary shares are measured:   
i)  At fair value with changes recognised in the profit and loss account if the shares are publicly traded or their fair value can otherwise be measured reliably;
ii)   At cost less impairment for all other investments.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Derivative financial instruments are initially measured at fair value on the date on which a derivative contract is entered into and are subsequently measured at fair value with any gains and losses being reported in the Statement of Comprehensive Income. Outstanding derivatives at the reporting date are included under the appropriate format heading depending on the nature of the derivative.
The fair value of the forward exchange currency contracts is calculated by reference to current exchange rates in force at the balance sheet date.  

 
2.10

Cash and cash equivalents

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

 
2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 14

 
JOHN ADAMS LEISURE LIMITED
 

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

2.Accounting policies (continued)

 
2.12

Foreign currency translation

Functional and presentation currency
The company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the profit and loss account within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'administrative expenses'.


2.13
Dividends

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


  
2.14
Pensions

Defined contribution pension plan
The company operates defined contribution plans for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

 
2.15

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.16

Interest income

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

Page 15

 
JOHN ADAMS LEISURE LIMITED
 

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

2.Accounting policies (continued)

 
2.17

Borrowing costs

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

 
2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.19

Current and deferred taxation

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

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

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

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

Page 16

 
JOHN ADAMS LEISURE LIMITED
 

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

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Taxation
The company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities. The amount of such provisions is based on various factors, such as experience with previous tax submissions. Management estimation is required to determine the amount of deferred tax assets and liabilities that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. 
Tangible fixed assets 
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as the remaining life of the asset and projected disposal values. 
Provisions 
Included within accruals and deferred income are provisions estimated by the company based upon past experiences from similar contracts and with knowledge of known issues that management are confident will result in an outflow of economic benefit from the company.
Operating lease commitments
The Company has entered into commercial lease contracts and as a lessee it obtains use of property, plant and equipment. The classification of such leases as operating or finance lease requires the Company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the Balance Sheet. 
Stock provision
The Company makes provision for slow moving and obsolete stock on a monthly basis based on management's best estimate of future sales levels. The accuracy of these judgments is inherently uncertain, however management regularly monitor stock provisions to ensure that they are as reliable as possible.
Bad debt provision
The Company makes provision for bad and doubtful debts based on management's best estimate of future recovery. 

Page 17

 
JOHN ADAMS LEISURE LIMITED
 

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

4.


Turnover

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
17,367,519
17,048,450

Europe
84,035
74,648

17,451,554
17,123,098



5.


Other operating income

2023
2022
£
£

Commission income
474,766
941,794

Administration fees
700,000
323,000

Other operating income
5,491
51,565

1,180,257
1,316,359



6.


Operating (loss)/profit

The operating profit is stated after charging:

2023
2022
£
£

Fair value movements of derivatives
-
151,856

Exchange differences
4,604
(601,405)

Depreciation of tangibles fixed assets
357,151
319,505

Other operating lease rentals
790,038
777,823

During the year, no director received any emoluments (2022: £nil).


7.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
12,250
11,500

Page 18

 
JOHN ADAMS LEISURE LIMITED
 

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

8.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
1,681,730
1,554,423

Social security costs
185,567
174,568

Cost of defined contribution scheme
97,953
100,033

1,965,250
1,829,024


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


        2023
        2022
            No.
            No.







Product development, marketing, sales, administration and directors
46
46


9.


Directors' remuneration

Director and key management personnel remuneration is borne by Toy Brokers Holdings Limited. Key management personnel remuneration totalled £304,592 (2022: £295,781).





10.


Income from investments

2023
2022
£
£





Dividends received
433,238
-


Page 19

 
JOHN ADAMS LEISURE LIMITED
 

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

11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
-
80,136

Adjustments in respect of previous periods
-
36,341


Total current tax
-
116,477

Deferred tax


Origination and reversal of timing differences
(38,793)
1,787

Total deferred tax
(38,793)
1,787


Taxation on (loss)/profit on ordinary activities
(38,793)
118,264

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
141,697
329,150


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
33,327
62,539

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,675
1,355

Capital allowances for year in excess of depreciation
(958)
18,415

Group relief surrendered / (claimed)
28,006
(14,355)

Non-taxable income
(101,900)
-

Adjustments to tax charge in respect of previous periods
-
36,341

Remeasurement of deferred tax for changes in tax rates
57
13,969

Total tax charge for the year
(38,793)
118,264


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 20

 
JOHN ADAMS LEISURE LIMITED
 

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

12.


Tangible fixed assets





Plant & machinery
Motor vehicles
Fixtures & fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2023
1,933,437
22,421
315,879
2,271,737


Additions
83,350
-
26,158
109,508



At 31 December 2023

2,016,787
22,421
342,037
2,381,245



Depreciation


At 1 January 2023
1,387,312
9,809
201,752
1,598,873


Charge for the year on owned assets
309,413
5,605
42,133
357,151



At 31 December 2023

1,696,725
15,414
243,885
1,956,024



Net book value



At 31 December 2023
320,062
7,007
98,152
425,221



At 31 December 2022
546,125
12,612
114,127
672,864


13.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
903



At 31 December 2023
903





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

John Adams Leisure EU Limited
See (i) below
Ordinary
100%

Registered office details:
(i) 1 Castlewood Avenue, Rathmines, Dublin 6, Ireland

Page 21

 
JOHN ADAMS LEISURE LIMITED
 

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

14.


Stocks

2023
2022
£
£

Finished goods and goods for resale
6,249,861
8,955,803


Stock recognised in cost of sales during the year as an expense was £8,629,440 (2022: £7,260,236).


15.


Debtors

2023
2022
£
£


Trade debtors
8,496,204
7,216,860

Amounts owed by group undertakings
10,761,385
9,895,926

Other debtors
135,095
144,723

Prepayments and accrued income
465,227
528,012

19,857,911
17,785,521



16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
333,402
747,548



17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank borrowings
2,163,414
3,933,311

Trade creditors
242,102
261,700

Amounts owed to group undertakings
439,152
443,104

Corporation tax
-
117,929

Other taxation and social security
991,160
823,735

Accruals and deferred income
2,138,578
1,738,765

5,974,406
7,318,544


Secured loans
Bank borrowings are secured by a fixed and floating charge over the assets of the company.  The company has provided a cross guarantee to a fellow subsidiary. At 31 December 2023 bank borrowings were £2,163,414 (2022: £3,933,311).

Page 22

 
JOHN ADAMS LEISURE LIMITED
 

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

18.


Deferred taxation




2023


£






At beginning of year
(46,990)


Charged to the profit or loss
38,793



At end of year
(8,197)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(8,197)
(49,490)

Short term timing differences
-
2,500

(8,197)
(46,990)


19.


Reserves

Capital redemption reserve

This reserve represents the nominal value of shares repurchased by the company.

Profit & loss account

This reserve represents the cumulative profit available for distribution to shareholders.


20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



929 (2022 - 929) Ordinary shares of £1.00 each
929
929



21.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £97,953 (2022: £100,033). At the year end there were outstanding contributions of £nil (2022: £nil).

Page 23

 
JOHN ADAMS LEISURE LIMITED
 

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

22.


Commitments under operating leases

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

2023
2022
£
£


Not later than 1 year
790,038
777,823

Later than 1 year and not later than 5 years
2,645,597
3,041,908

Later than 5 years
-
316,815

3,435,635
4,136,546


23.


Related party transactions

The company is exempt under Paragraph 33.1A of FRS 102 from disclosing related party transactions with entities that are part of the group headed by Toy Brokers Holdings Limited, where 100% of the voting rights are controlled within the group.
Details of amounts owed to/from other group entities can be seen in note 15 and 17.


24.


Controlling party

The ultimate parent company is Toy Brokers Holdings Limited, a company registered in England and Wales. 
The parent company of both the largest and smallest group for which group accounts including John Adams Leisure Limited are drawn up is Toy Brokers Holdings Limited. Copies of these accounts may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.


Page 24