Company registration number 12372646 (England and Wales)
J2 SOURCING LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
J2 SOURCING LIMITED
COMPANY INFORMATION
Directors
Mr J G Andersson
Mr M Horscroft
Company number
12372646
Registered office
Unit 12 Horsted Square, Bellbrook Industrial Estat
Uckfield, East Sussex
TN22 1QG
Auditor
Begbies Chartered Accountants
9 Bonhill Street
London
EC2A 4DJ
J2 SOURCING LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
J2 SOURCING LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
234,464
5,651
Current assets
Stocks
1,803,125
879,460
Debtors
5
647,537
365,116
Cash at bank and in hand
349,543
414,282
2,800,205
1,658,858
Creditors: amounts falling due within one year
6
(3,094,782)
(1,292,377)
Net current (liabilities)/assets
(294,577)
366,481
Net (liabilities)/assets
(60,113)
372,132
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
(60,114)
372,131
Total equity
(60,113)
372,132

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 4 June 2024 and are signed on its behalf by:
Mr M Horscroft
Director
Company registration number 12372646 (England and Wales)
J2 SOURCING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

J2 Sourcing Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 12 Horsted Square, Bellbrook Industrial Estat, Uckfield, East Sussex, TN22 1QG.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

This 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:

 

 

The financial statements of the company are consolidated in the financial statements of J2 Sourcing AB. These consolidated financial statements are available from its registered office, Kantyxegatan 29, SE - 21376 Malmö, SWEDEN.

1.2
Going concern

These financial statements are prepared on the going concern basis. The company has received assurances from its parent company, J2 Sourcing AB, that it can continue to rely on group support in pursuing its objectives, and that the amount disclosed within note 6 under Amounts Owed To Group Undertakings, will not be called in for repayment. As such the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. The going concern assumption is also supported by profitable trading in the first six months of 2024.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods),

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

J2 SOURCING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -

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

Leasehold land and buildings
10 year straight line
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Computers
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any), and the loss is booked to the profit and loss account.

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.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include all company bank accounts.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised. In the current and prior financial year, all financial assets are classified as receivable within one year.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

J2 SOURCING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. In the current and prior financial year, all financial liabilities are classified as payable within one year.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases

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

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

In the directors' assessment the key accounting estimate impacting the financial statements is as regards stock obsolescence.

J2 SOURCING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
3
Employees

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

2023
2022
Number
Number
Total
10
7
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
-
0
7,887
7,887
Additions
30,852
269,947
300,799
At 31 December 2023
30,852
277,834
308,686
Depreciation and impairment
At 1 January 2023
-
0
2,237
2,237
Depreciation charged in the year
3,085
68,900
71,985
At 31 December 2023
3,085
71,137
74,222
Carrying amount
At 31 December 2023
27,767
206,697
234,464
At 31 December 2022
-
0
5,651
5,651
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
338,240
245,667
Other debtors
309,297
119,449
647,537
365,116
J2 SOURCING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
69,674
65,620
Amounts owed to group undertakings
2,755,248
870,382
Corporation tax
-
0
70,706
Other taxation and social security
26,351
18,661
Other creditors
243,509
267,008
3,094,782
1,292,377
7
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Statutory Auditor:
Begbies Chartered Accountants
Date of audit report:
4 June 2024
8
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
735,000
948
9
Related party transactions

The company has taken advantage of the provision within FRS 102 to not disclose details of transactions with other group members in these accounts.

10
Parent company

J2 Sourcing ltd is a subsidiary undertaking of J2 Sourcing AB, a company incorporated in Sweden. Consolidated financial statements can be obtained from Kantyxegatan 29, SE - 21376 Malmö, SWEDEN. J2 Sourcing AB is the ultimate parent undertaking.

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