REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements For The Year Ended 31 December 2023 |
for |
Thomas Johnstone Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements For The Year Ended 31 December 2023 |
for |
Thomas Johnstone Limited |
Thomas Johnstone Limited (Registered number: SC136445) |
Contents of the Financial Statements |
For The Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 6 |
Income Statement | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
Thomas Johnstone Limited |
Company Information |
For The Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants & Statutory Auditors |
Regent Court |
70 West Regent Street |
Glasgow |
G2 2QZ |
BANKERS: |
12-13 St Andrew Square |
Edinburgh |
EH2 2AF |
SOLICITORS: |
Capella |
60 York Street |
Glasgow |
G2 8JX |
Thomas Johnstone Limited (Registered number: SC136445) |
Strategic Report |
For The Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
Strong sales in 2022 carried on into 2023 and were further strengthened by securing "anchor" projects of varying sizes within our existing market sectors. By continuing to focus on the needs of our customers we have maximised the sales opportunities available to us. Annual sales of £86.4 million reflect a 46% growth from 2022. This has been delivered by careful recruitment of additional staff and labour, always keeping the guiding principles of TJL to the forefront. Our customer care and operational performance continues to be our strongest selling point. |
As a result of strong sales, we were able to generate a gross margin percentage return which allowed the business to deliver an operating profit in line with budget expectations. This was achieved against a backdrop of high inflation throughout the construction sector, affecting Subcontractor, Labour, Plant and Material costs. By careful negotiations and risk management we managed to secure projects with favourable terms regarding cost increases. We anticipate a strong first quarter in 2024 which we will build upon. |
A lack of skilled trades persons and skilled management teams still restricts growth in our industry. We must be proactive in training and retraining new and not so new recruits. Therefore, we continue to invest in apprenticeships for trades persons of all ages and sponsor undergraduates training to be professionals in the construction sector. |
We continue to strive for improvements in our environmental performance as part of our wider corporate social responsibility. We will continue to seek to improve our impact on the environment by taking steps to reduce our energy use. Our programme of investment has led us to install 925 m2 of Solar Panels on our factory roof, supplying most of our energy needs throughout the day. We are also investigating the use of batteries for storage which would further reduce our dependence on "grid" electricity. |
We continue to put our people first and this is reflected in our excellent staff retention levels. We aim to make their place of work an enjoyable experience and encourage a good work-life balance. |
The Directors continue to believe that our healthy order book and increasing customer base, combined with our stated intent of constant improvement in our practises and procedures provides solid grounds for confidence and that we will continue to grow the business and reduce our effective cost base through innovation and efficiencies. |
We have seen two years of sustained growth and continue to be optimistic about the future of the construction market sectors we are in. We believe we are in good shape to seek out and take advantage of opportunities as they arise in 2024. |
ON BEHALF OF THE BOARD: |
Thomas Johnstone Limited (Registered number: SC136445) |
Report of the Directors |
For The Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of fit-out contractor with associated support divisions. |
DIVIDENDS |
Interim dividends per share on the Ordinary £1 shares were paid as follows: |
£0.37 | - 24 January 2023 |
£0.08 | - 6 April 2023 |
£ |
The directors recommend that no final dividend be paid on these shares. |
The total distribution of dividends for the year ended 31 December 2023 will be £ |
Thomas Johnstone Limited (Registered number: SC136445) |
Report of the Directors |
For The Year Ended 31 December 2023 |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STREAMLINED ENERGY AND CARBON REPORTING |
Energy and Carbon Report |
In accordance with the Companies (Directors Report) and the Energy and Carbon Report Regulations 2018, the company, having met the thresholds of large unquoted company status in the UK, is now required to report their UK energy use and associated GHG emissions relating to electricity, gas and transport fuel. |
The requirement also calls for an intensity ratio. |
For company reporting purposes the methods adopted in the calculations of the total greenhouse gas emissions incorporate the GHG Protocol Corporate Standard, the 2019 HM Government Environmental Reporting Guidelines and the 2023 UK Government Conversion Factors. |
Information surrounding Business travel and power consumption have been sourced internally from invoices and receipts and converted accordingly to CO2e utilising UK Government GHG Conversion Factors. |
Our adopted intensity metric has been defined as tonnes of CO2e per £1million of Sales Revenue. |
The company in the latter part of 2023 invested in Solar Panels installation to our Manufacturing Facility Roof at our Inchinnan premises. The extent of the benefit and improvement impact should become more evident in 2024's Energy reduction measures. New Energy Efficient Boilers were also installed during 2023. |
The company has in previous years implemented a raft of initiatives to reduce our carbon footprint some of which include, the changing of all lights to LED, introducing PIR sensors for controlled lighting in various areas, introducing EV charging points and insulation to our Factory roof. |
2023 |
UK Energy Use | kWh | 858,919.46 |
Associated Greenhouse Gas Emissions |
TCO2e |
390.21 |
Intensity Ratio | TCO2e per £M Sales Revenue | 4.5 |
As 2023 is the first year of disclosure requirements, there is no comparative figure for 2022. |
Energy Reduction Measures Planned for 2024 surround the following: |
- Monitoring of solar generation export back to the Grid, for battery storage feasibility study. |
- Full year benefits from Solar Panel Investment. |
- Additional Awareness, briefings and training for all employees. |
Thomas Johnstone Limited (Registered number: SC136445) |
Report of the Directors |
For The Year Ended 31 December 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), 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 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Thomas Johnstone Limited |
Opinion |
We have audited the financial statements of Thomas Johnstone Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 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 Auditors' 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Thomas Johnstone Limited |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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. |
Report of the Independent Auditors to the Members of |
Thomas Johnstone Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- We identified the laws and regulations applicable to the company through discussions with directors and other |
management, and from our wider knowledge and experience; |
- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and FRS 102; |
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of |
management and inspecting legal correspondence; and |
- Identified laws and regulations were communicated within the audit team regularly and the team remained alert to |
instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of |
actual, suspected and alleged fraud; and |
- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations |
Audit response to risks identified |
To address the risk of fraud through management bias and override of controls, we: |
- Performed analytical procedures to identify any unusual or unexpected relationships; |
- Tested journal entries to identify unusual transactions; |
- Assessed whether judgements and assumptions made in determining the accounting estimates set out were indicative of potential bias; |
and |
- Investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were |
not limited to: |
- Agreeing financial statement disclosures to underlying supporting documentation; |
- Reading the minutes of meetings of those charged with governance; |
- Enquiring of management as to actual and potential litigation and claims; and |
- Requesting correspondence with HMRC, Companies House and the company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Thomas Johnstone Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants & Statutory Auditors |
Regent Court |
70 West Regent Street |
Glasgow |
G2 2QZ |
Thomas Johnstone Limited (Registered number: SC136445) |
Income Statement |
For The Year Ended 31 December 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
3,737,240 | 733,698 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
4,009,416 | 872,165 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Thomas Johnstone Limited (Registered number: SC136445) |
Statement of Financial Position |
31 December 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Revaluation reserve | 18 |
Capital redemption reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Thomas Johnstone Limited (Registered number: SC136445) |
Statement of Changes in Equity |
For The Year Ended 31 December 2023 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 31 December 2023 |
Thomas Johnstone Limited (Registered number: SC136445) |
Notes to the Financial Statements |
For The Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Thomas Johnstone Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by revaluation of certain assets. |
The significant accounting policies applied in the preparation of the financial statements are set out below. The policies have been consistently applied to all years presented unless otherwise stated. |
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 FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 33.7. |
Thomas Johnstone Limited is a qualifying subsidiary and has taken advantage of the reduced disclosure exemptions listed above. The parent company of the group is TJH1868 Limited and the group financial statements are available from TJH1868 Limited, Cartside Avenue, Inchinnan Business Park, Renfrewshire, PA4 9RU. |
Significant judgements and estimates |
In the application of the group's accounting policies the directors and management are required to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the period end date, and the amounts reported for revenues and expenses during the period. |
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, and in future periods should it affect future periods. |
Management consider that the following have the most significant effect on the amounts recognised in the financial statements: |
- Financial outcome of individual construction contracts - all long-term contracts are reviewed on a monthly basis, with particular attention to contract stage of completion, costs to date and costs still to be incurred. Movement in margin is recognised when prudent to do so but immediately in the event there is a foreseeable loss. |
Thomas Johnstone Limited (Registered number: SC136445) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer. |
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. This is normally measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable. |
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. |
Where it is probable that contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately. |
Tangible fixed assets |
Property and improvements | - |
Fixed plant and equipment | - |
Computer equipment | - |
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the profit and loss. |
Stocks |
Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items. |
Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads. |
Financial instruments |
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss. |
Thomas Johnstone Limited (Registered number: SC136445) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Loans and borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Loans and borrowings that are classified as payable or receivable within one year on initial recognition are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
as restated |
£ | £ |
Thomas Johnstone Limited (Registered number: SC136445) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
as restated |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
as restated |
Office and administration | 89 | 84 |
Production | 120 | 115 |
2023 | 2022 |
as restated |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
as restated |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
as restated |
£ | £ |
Hire of plant and machinery |
Operating lease income | ( |
) | ( |
) |
Depreciation - owned assets |
Auditors' remuneration |
Operating lease costs - property |
Operating lease costs - other |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
as restated |
£ | £ |
Bank overdraft & loan interest |
Thomas Johnstone Limited (Registered number: SC136445) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
as restated |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 23.50% (2022 - 19%). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
as restated |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Income & expenses not deductible for tax purposes | 27,981 | (37,551 | ) |
Timing differences | (41,827 | ) | 23,459 |
Deferred tax movement | 57,731 | (18,815 | ) |
Total tax charge | 963,254 | 113,159 |
8. | DIVIDENDS |
2023 | 2022 |
as restated |
£ | £ |
Ordinary shares of £1 each |
Interim |
9. | PRIOR YEAR ADJUSTMENT |
During the year the company made a prior year adjustment to restate the bank loans included on the 2022 Statement of Financial Position. These loans are held in the name of the ultimate parent company (TJH1868 Limited) and as such recognised on their Statement of Financial Position.The value of the prior year adjustment was £2,203,125 with no impact on reserves. |
Thomas Johnstone Limited (Registered number: SC136445) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
10. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. Contributions payable by the company for the year were £637,159 (2022 - £488,296). Amounts outstanding at the year end 31 December 2023 were £64,386 (2022 - £55,623). |
11. | TANGIBLE FIXED ASSETS |
Property | Fixed |
and | plant and | Computer |
improvements | equipment | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Cost or valuation at 31 December 2023 is represented by: |
Property | Fixed |
and | plant and | Computer |
improvements | equipment | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2014 | 1,500,000 | - | - | 1,500,000 |
Valuation in 2021 | 39,803 | - | - | 39,803 |
Cost | 290,197 | 1,404,955 | 611,736 | 2,306,888 |
1,830,000 | 1,404,955 | 611,736 | 3,846,691 |
If the property had not been revalued it would have been included at the following historical cost: |
2023 | 2022 |
as restated |
£ | £ |
Cost | 1,622,830 | 1,622,830 |
Aggregate depreciation | 689,312 | 648,741 |
The property was valued on an open market basis in February 2021 by way of a 3rd party valuation. The Directors have reviewed the carrying value at December 2023 and consider it to be a reasonable estimate of valuation at that date. |
Thomas Johnstone Limited (Registered number: SC136445) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
12. | STOCKS |
2023 | 2022 |
as restated |
£ | £ |
Raw materials & consumables | 39,269 | 33,047 |
13. | DEBTORS |
2023 | 2022 |
as restated |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Amounts recoverable on contracts | 4,631,460 | 5,096,771 |
Other debtors & prepayments |
Amounts falling due after more than one year: |
Trade debtors |
Amounts recoverable on contracts |
Aggregate amounts |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
as restated |
£ | £ |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 3,162,842 | 994,168 |
Other creditors |
15. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
as restated |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
Thomas Johnstone Limited (Registered number: SC136445) |
Notes to the Financial Statements - continued |
For The Year Ended 31 December 2023 |
16. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
as restated |
£ | £ |
Deferred tax | 105,757 | 48,026 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Provided during year |
Accelerated capital allowances |
Balance at 31 December 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | as restated |
£ | £ |
Ordinary | £1 | 406,289 | 406,289 |
18. | RESERVES |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 4,949,387 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Revaluation reserve release | 22,737 | (22,737 | ) | - | - |
At 31 December 2023 | 7,717,022 |
19. | ULTIMATE PARENT COMPANY |
The ultimate parent company is TJH1868 Limited, a company registered in Scotland. Copies of the financial statements of the group are available from TJH1868 Limited, Cartside Avenue, Inchinnan Business Park, Renfrewshire, PA4 9RU. |
20. | SECURED DEBTS |
A cross guarantee exists between the company and its ultimate parent company. The nature of the guarantee is a floating charge over the whole of the assets of the company and a first ranking standard security over the property at Cartside Avenue, Inchinnan is held by the company's bank.The loan balance at the year end is £728,042 (2022 - £2,203,125). |
21. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party of the company are the directors of TJH1868 Limited. |