Company registration number 11343705 (England and Wales)
JOMAR HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
JOMAR HOLDINGS LIMITED
COMPANY INFORMATION
Directors
J Clark
P Clark
Company number
11343705
Registered office
166 College Road
Harrow
Middlesex
HA1 1RA
Auditors
Charterhouse (Audit) Limited
166 College Road
Harrow
Middlesex
HA1 1RA
Business address
Reliant House
3 Angel Lane
Fore Street
Ipswich
Suffolk
IP4 1JX
JOMAR HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 28
JOMAR HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The results for the year and the financial position at the year end were considered satisfactory by the directors.

 

It is the directors’ intention to promote growth in the business by increasing its market share through extensive marketing and by developing innovative products which are not available from its competitors such as the group’s patented XL Vent system, at the same time as investing in increasing the container hire fleet.

Principal risks and uncertainties

The management of the business and the execution of the group's strategies are subject to risk, the key risks being supply chain conditions, foreign exchange fluctuations, wider economic conditions and competition in the marketplace. The board of directors closely monitors the performance of the business on a continuous basis and takes ongoing steps to mitigate these risks.

Financial risks and uncertanities

The primary financial risks to the business are foreign exchange risk and liquidity risk. The directors and finance team manage these risks on an ongoing basis.

Foreign exchange

The business makes significant stock purchases in US Dollars. Exchange rate risk is managed by entering into forward contracts to purchase foreign currency at future dates and values in line with stock purchase commitments.

Liquidity

At the year end the business held significant cash balances and had a relatively small amount of asset finance borrowing. Trade debtors are managed through controlling the credit offered to customers and continual monitoring of amounts outstanding. Stock orders are phased to meet expected customer demand. Cash flow is forecast to ensure funds are available for payment of creditors to terms.

In respect of balances due from group and associated companies, the directors are aware of the individual companies' finance requirements and had determined that these will only be repaid, in whole or in part, when sufficient funds are available.

Key performance indicators

The key financial highlights are as follows:

 

 

2023

2022

Turnover

£17,659,740

£18,130,067

Gross profit

£3,485,427

£5,891,644

Gross profit margin

20%

32%

Operating profit

£525,772

£3,731,875

Earnings before interest, tax, depreciation and amortisation (EBITDA)

£917,490

£4,389,917

JOMAR HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Other performance indicators

Turnover and gross margin in the year were affected by the loss of a significant hire customer. The number of hire customers continued to increase during 2023. Despite strong price competition in the container sales market the volume of containers sold increased significantly.

The year on year reduction in EBITDA includes significant Director’s bonuses which were not paid in previous years. The results are considered acceptable considering the challenging market conditions.

 

On behalf of the board

P Clark
Director
20 September 2024
JOMAR HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of being a holding company.

 

The principal activity of the subsidiary continued to be that of sale, hire and conversion of shipping containers.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. 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:

C Walker
(Resigned 31 March 2023)
J Clark
P Clark
Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditors

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 auditors of the company are 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 auditors of the company are aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

JOMAR HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
P Clark
Director
20 September 2024
JOMAR HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JOMAR HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Jomar Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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:

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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the 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 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:

JOMAR HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JOMAR HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

The extent to which the audit was considered capable of detecting irregularities including fraud

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:

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

JOMAR HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JOMAR HOLDINGS LIMITED
- 7 -

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

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

 

There are inherent limitations in our audit procedures described above. Auditing standards also limit the audit procedures required to identifying 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 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.

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 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.

..............................................................
24 September 2024
Nirav Sheth (Senior Statutory Auditor)
For and on behalf of Charterhouse (Audit) Limited
Statutory Auditor
Charterhouse (Audit) Limited
166 College Road
Harrow
HA1 1RA
JOMAR HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
17,659,740
18,130,067
Cost of sales
(14,174,313)
(12,238,423)
Gross profit
3,485,427
5,891,644
Administrative expenses
(3,191,688)
(2,303,018)
Other operating income
232,033
143,249
Operating profit
4
525,772
3,731,875
Interest receivable and similar income
7
31,039
489
Interest payable and similar expenses
8
(269,586)
(348,355)
Profit before taxation
287,225
3,384,009
Tax on profit
9
(130,506)
(1,362,390)
Profit for the financial year
156,719
2,021,619
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
JOMAR HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
3,571,199
4,694,682
Current assets
Stocks
13
6,363,729
7,302,425
Debtors
14
2,337,749
1,448,863
Cash at bank and in hand
1,969,004
2,272,647
10,670,482
11,023,935
Creditors: amounts falling due within one year
15
(3,879,975)
(3,888,258)
Net current assets
6,790,507
7,135,677
Total assets less current liabilities
10,361,706
11,830,359
Creditors: amounts falling due after more than one year
16
(1,727,510)
(3,376,033)
Provisions for liabilities
Retirement benefit obligations
19
280,250
273,200
Deferred tax liability
21
892,800
876,699
(1,173,050)
(1,149,899)
Net assets
7,461,146
7,304,427
Capital and reserves
Called up share capital
22
75
75
Capital redemption reserve
350,142
350,142
Profit and loss reserves
7,110,929
6,954,210
Total equity
7,461,146
7,304,427
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:
20 September 2024
P Clark
Director
Company registration number 11343705 (England and Wales)
JOMAR HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
11
1,800,000
1,800,000
Current assets
Debtors
14
75
75
Creditors: amounts falling due within one year
15
(1,409,895)
(1,493,732)
Net current liabilities
(1,409,820)
(1,493,657)
Net assets
390,180
306,343
Capital and reserves
Called up share capital
22
75
75
Capital redemption reserve
350,142
350,142
Profit and loss reserves
39,963
(43,874)
Total equity
390,180
306,343

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £83,837 (2022 - £43,874 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

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:
20 September 2024
P Clark
Director
Company registration number 11343705 (England and Wales)
JOMAR HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
450,075
-
0
5,832,733
6,282,808
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
2,021,619
2,021,619
Redemption of shares
-
350,142
(900,142)
(550,000)
Reduction of shares
(450,000)
-
-
(450,000)
Balance at 31 December 2022
75
350,142
6,954,210
7,304,427
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
156,719
156,719
Balance at 31 December 2023
75
350,142
7,110,929
7,461,146
JOMAR HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
450,075
-
0
900,142
1,350,217
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(43,874)
(43,874)
Redemption of shares
-
350,142
(900,142)
(550,000)
Reduction of shares
(450,000)
-
-
(450,000)
Balance at 31 December 2022
75
350,142
(43,874)
306,343
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
83,837
83,837
Balance at 31 December 2023
75
350,142
39,963
390,180
JOMAR HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(224,340)
5,435,255
Interest paid
(269,586)
(348,356)
Income taxes paid
(5,946)
-
Net cash (outflow)/inflow from operating activities
(499,872)
5,086,899
Investing activities
Purchase of tangible fixed assets
(806,852)
(2,186,076)
Proceeds from disposal of tangible fixed assets
2,856,327
1,048,124
Interest received
31,039
489
Net cash generated from/(used in) investing activities
2,080,514
(1,137,463)
Financing activities
Purchase of own shares
(1,000,000)
Increase in/(Repayment of) borrowings
(1,414,382)
(890,558)
Repayment of finance lease obligations
(469,902)
(657,410)
Net cash used in financing activities
(1,884,284)
(2,547,968)
Net (decrease)/increase in cash and cash equivalents
(303,642)
1,401,468
Cash and cash equivalents at beginning of year
2,272,647
871,179
Cash and cash equivalents at end of year
1,969,004
2,272,647
JOMAR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
Jomar Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is 166 College Road, Harrow, Middlesex, HA1 1RA. The principal place of business is Reliant House, 3 Angel Lane, Fore Street, Ipswich, Suffolk, IP4 1JX.
The group consists of Jomar Holdings Limited and all of its subsidiaries.
1.1
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 have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Jomar Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

JOMAR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Income is

recognised in the period to which it relates.Turnover consists of sale, hire, conversion of shipping containers and other sales.

1.4
Tangible fixed assets

Tangible fixed assets are measured at cost net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Plant and equipment
20% on cost
Fixtures and fittings
20% on cost
Computers
33% on cost
Motor vehicles
20% on cost
Maritime containers
3% to 10% on cost

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 recognised in the profit and loss account.

1.5
Fixed asset investments

Interests in subsidiaries are measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Stock consists of containers.

1.7
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

JOMAR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

Basic financial liabilities, including creditors, are 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.

 

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.

1.8
Equity instruments

Equity instruments issued by the group 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 group.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

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 group’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.

 

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.

1.10
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 leased asset are consumed.

1.11
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.

JOMAR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.12

Retirement benefits

The group provides pension benefits for senior employees. Under the terms of the pension contracts entered into with the senior employees, fixed sums are provided for now in order to provide pension benefits to the individuals upon their retirement. The pension contracts allow for an annual increase in respect of indexation over and above the initial contracted amount.

 

Although under section 28 of FRS 102 this pension arrangement is regarded as being a defined benefit scheme, the directors consider that it does not bear any of the hallmarks of a defined benefit scheme as the group’s contributions are fixed until the point of retirement at which point any further contributions of annual increases cease. Further information can be found in note 20 to the financial statements.

 

The group also provides pension benefits (defined contribution) in respect of its employees. Amounts payable are charged to the profit and loss account in the year the contracts are entered into between the group and the employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Establishing useful economic lives for depreciation of fixed assets

Fixed assets, consisting primarily of plant and machinery, fixtures and fittings, office and computer equipment, maritime containers and motor vehicles. The annual depreciation charge depends primarily on the estimated useful economic lives of each type of asset and estimated residual values. The directors regularly review these asset useful lives and change them as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset useful lives can have a significant impact on depreciation and amortisation charges for the period. Detail of the useful economic lives is included in the accounting policies.

Inventory provision

The group is involved in sales and hire of containers. To be able to service the customers promptly, it holds stock for a long time. As a result it is necessary to consider the recoverability of the cost of inventory and the associated provisioning required. When calculating the inventory provision, management consider the length of time a particular stock has been held for. If a stock is held for several years then a provision is made. Any significant reduction in the level of inventory provision would have a positive impact on the operating result. The level of provision required is reviewed on an on-going basis and has been disclosed in note 13.

JOMAR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 18 -
Provision for doubtful debts

The group makes an estimate of the recoverable value of trade debtors. The group uses estimates based on historical experience in determining the level of debt, which the group believes, will not be collected. These estimates include such factors as the current credit rating of the debtor, the ageing profile of debtors and historical experience. Any significant reduction in the level of customers that default on payments or other significant improvements that resulted in a reduction in the level of bad debt provision would have a positive impact on the operating results. The level of provision required is reviewed on an on-going basis and is disclosed in note 14.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Container sales
15,770,893
15,488,335
Container hire
1,705,968
2,641,732
Other sales
182,879
-
17,659,740
18,130,067
2023
2022
£
£
Other revenue
Interest income
31,039
489
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
391,670
244,887
Fees payable to the group's auditors for the audit of the group's financial statements
4,000
4,800
Depreciation of owned tangible fixed assets
375,549
409,487
Depreciation of tangible fixed assets held under finance leases
16,169
248,555
Profit on disposal of tangible fixed assets
(1,311,710)
(490,058)
Operating lease charges
17,599
15,916
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration
16
19
2
3
JOMAR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,382,645
1,011,193
-
0
-
0
Social security costs
305,130
104,245
-
-
Pension costs
58,708
80,928
-
0
-
0
2,746,483
1,196,366
-
0
-
0
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,757,565
272,363
Company pension obligations
14,237
39,556
1,771,802
311,919

Key management personnel of the group consists of its directors only.

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
22,273
489
Other interest income
8,766
-
Total income
31,039
489
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
-
3,196
Interest on finance leases and hire purchase contracts
36,003
48,397
Other interest
233,583
296,762
Total finance costs
269,586
348,355
JOMAR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
116,233
385,117
Adjustments in respect of prior periods
(1,828)
100,574
Total current tax
114,405
485,691
Deferred tax
Origination and reversal of timing differences
16,101
876,699
Total tax charge
130,506
1,362,390

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
287,225
3,384,009
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
71,806
642,962
Tax effect of expenses that are not deductible in determining taxable profit
158,562
37,343
Gains not taxable
-
0
(93,111)
Adjustments in respect of prior years
-
0
100,574
Effect of change in corporation tax rate
(9,138)
-
Group relief
(1,541)
-
0
Permanent capital allowances in excess of depreciation
(105,284)
(202,077)
Deferred tax
16,101
876,699
Taxation charge
130,506
1,362,390
JOMAR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
10
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Maritime containers
Total
£
£
£
£
£
£
Cost
At 1 January 2023
434,500
36,851
35,224
141,613
5,286,065
5,934,253
Additions
51,110
-
0
998
-
0
760,744
812,852
Disposals
-
0
-
0
-
0
-
0
(1,979,870)
(1,979,870)
At 31 December 2023
485,610
36,851
36,222
141,613
4,066,939
4,767,235
Depreciation and impairment
At 1 January 2023
89,575
27,139
24,315
40,082
1,058,460
1,239,571
Depreciation charged in the year
91,095
6,642
6,937
28,323
258,721
391,718
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(435,253)
(435,253)
At 31 December 2023
180,670
33,781
31,252
68,405
881,928
1,196,036
Carrying amount
At 31 December 2023
304,940
3,070
4,970
73,208
3,185,011
3,571,199
At 31 December 2022
344,925
9,712
10,909
101,531
4,227,605
4,694,682
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Maritime containers
111,078
1,703,321
-
-

The depreciation charge in respect of such assets amounted to £16,169 (2022: £248,555) for the period.

11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
1,800,000
1,800,000
JOMAR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Fixed asset investments
(Continued)
- 22 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
1,800,000
Carrying amount
At 31 December 2023
1,800,000
At 31 December 2022
1,800,000
12
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Adaptainer Limited
1
Sales, hire and conversion of containers
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
166 College road, Harrow, Middlesex, HA1 1RA
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Adaptainer Limited
8,870,966
172,882
13
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Containers
6,363,729
7,302,425
-
0
-
0

Stock is stated after provisions for impairment of £579,580 (2022: £391,527).

JOMAR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,627,899
1,173,131
-
0
-
0
Corporation tax recoverable
60,838
169,296
-
0
-
0
Other debtors
359,518
28,788
75
75
Prepayments and accrued income
259,494
37,648
-
0
-
0
2,307,749
1,408,863
75
75
Amounts falling due after more than one year:
Other debtors
30,000
40,000
-
0
-
0
Total debtors
2,337,749
1,448,863
75
75

Trade debtors are stated after provisions for doubtful debts of £41,812 (2022: £26,846)

15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
17
221,733
451,494
-
0
-
0
Trade creditors
2,040,243
1,444,064
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
1,402,695
714,505
Other taxation and social security
612,006
448,196
-
-
Other creditors
219,205
786,055
-
0
750,000
Accruals and deferred income
786,788
758,449
7,200
29,227
3,879,975
3,888,258
1,409,895
1,493,732
16
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
17
238,254
472,395
-
0
-
0
Other borrowings
18
1,489,256
2,903,638
-
0
-
0
1,727,510
3,376,033
-
-
JOMAR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
17
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
221,733
451,494
-
0
-
0
In two to five years
238,254
472,395
-
0
-
0
459,987
923,889
-
-

These are secured on the group's assets to which it relates.

 

Finance lease payments represent rentals payable by the group 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.

18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Other borrowings
1,489,256
2,903,638
-
0
-
0
Payable after one year
1,489,256
2,903,638
-
0
-
0

 

19
Provisions for liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Retirement benefit obligation
21
280,250
273,200
-
-
Deferred tax liabilities
22
892,800
876,699
-
0
-
0
1,173,050
1,149,899
-
0
-
0
Movements on provisions apart from deferred tax liabilities:
Group
£
At 1 January 2023
273,200
Additional provisions in the year
7,050
At 31 December 2023
280,250
JOMAR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Provisions for liabilities
(Continued)
- 25 -

The group has entered into agreements and is contractually obliged to expend fixed sums in the future to provide retirement benefits to senior employees under the terms of their pension agreements.

21
Retirement benefit schemes
2023
2022
Defined benfit and contribution schemes
£
£
Charge to profit or loss in respect of defined benefit schemes
7,050
32,369
Charge to profit or loss in respect of defined contribution schemes
51,658
48,559

The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. The above pension charge includes an amount of £51,658 (2022: £48,559) in respect of defined contribution scheme paid by the group to the funds.

 

The group also provided pension benefits in respect of senior employees. Amounts payable are charged to the profit and loss account in the year the contracts are entered into between the group and the employees. The number of directors to whom pension benefits are accruing under these pension agreements is 1 (2022: 2).

 

The contributions and potential liabilities of the group in respect of the pension agreements are fixed at least until the date of retirement of the employees which is over 9 years from the year end date. Therefore these liabilities are not payable until the date of retirement.

 

Although under section 28 of FRS 102 this pension arrangement is regarded as being a defined benefit scheme, the directors are of the opinion that it does not bear any of the hallmarks of what is usually considered to be a defined benefit scheme and therefore no further disclosures are considered necessary in order to understand the nature and measurement of the liability.

 

The directors are also of the opinion that the liability as disclosed in the financial statements represents the full and final amount which could be expected, at this stage, to be paid in the future to settle the pension agreement liabilities.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
892,800
876,699
The company has no deferred tax assets or liabilities.
JOMAR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Deferred taxation
(Continued)
- 26 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
876,699
-
Charge to profit or loss
16,101
-
Liability at 31 December 2023
892,800
-
22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
75
75
75
75
23
Financial commitments, guarantees and contingent liabilities

The directors of the group have provided guarantees in respect of certain loans entered into by the group.

 

There are fixed and floating charges over the assets of the group.

JOMAR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
25
Related party transactions

Group

 

During the year the group undertook following transactions with Qube Containers Limited, a company in which P Clark is the director.

 

Sales and recharges made to related party £2,585,964 (2022: £1,070,145).

 

Services received from related party costing £391,159 (2022: £84,351).

 

Included in other borrowings is an amount of £1,489,256 (2022: £2,903,638) owed to Qube Containers Limited. During the year interest of £31,477 (2022: £53,158) was charged at a commercial rate on this loan balance.

 

Included in other debtors is an amount of £262,000 (2022: Nil) owed to the company by one of the directors. The maximum amount outstanding during the year was £262,000. During the year interest of £1,114 was charged on this loan balance and the balance was repaid within 9 months of the year end.

 

26
Controlling party
P Clark is the ultimate controlling party of the company and group.
27
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Profit for the year after tax
156,719
2,021,619
Adjustments for:
Taxation charged
130,506
1,362,390
Finance costs
269,586
348,355
Investment income
(31,039)
(489)
Gain on disposal of tangible fixed assets
(1,311,710)
(490,058)
Depreciation and impairment of tangible fixed assets
391,718
658,042
Increase in provisions
7,050
32,369
Movements in working capital:
Decrease in stocks
938,696
4,983,523
Increase in debtors
(997,344)
(960,105)
Increase/(decrease) in creditors
221,478
(2,520,391)
Cash (absorbed by)/generated from operations
(224,340)
5,435,255
JOMAR HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
28
Analysis of changes in net funds/(debt) - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,272,647
(303,643)
1,969,004
Borrowings excluding overdrafts
(2,903,638)
1,414,382
(1,489,256)
Obligations under finance leases
(923,889)
463,902
(459,987)
(1,554,880)
1,574,641
19,761
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