Company registration number 00454323 (England and Wales)
SIR JACOB BEHRENS & SONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SIR JACOB BEHRENS & SONS LIMITED
COMPANY INFORMATION
Directors
C D M Hughes
G C J Hughes
H C D Hughes
(Appointed 1 March 2023)
Secretary
C D M Hughes
Company number
00454323
Registered office
Centrepoint
Marshall Stevens Way
Trafford Park
Manchester
M17 1PP
Auditor
JS. Audit Limited
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
Business address
Centrepoint
Marshall Stevens Way
Trafford Park
Manchester
M17 1PP
Bankers
National Westminster Bank plc
19 Market Street
Manchester
M1 1WR
Investec Bank Plc
30 Graham Street
London
EC2V 7QN
SIR JACOB BEHRENS & SONS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
SIR JACOB BEHRENS & SONS 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 principal activities of the company are the design, manufacture and distribution within the U.K. and overseas of a wide range of textiles. There have been no significant changes in the company's principal activities in the year under review. Our investment in automation and digitalisation continues to improve our efficiencies, allowing us to grow a number of areas. The directors are not aware, at the date of this report, of any likely changes to the company's activities in the forthcoming year.

 

Profit on ordinary activities before tax for the year was £2,478,713 (2022: £847,052).

 

The balance sheet on page 9 shows a sound financial position at the year end, in both net assets and cash terms, demonstrating the continued strong position of the company.

Principal risks and uncertainties

The company operates in a highly competitive market, which is a continuing risk to the company and could result in the loss of sales. The company manages this risk by providing a fast response to our customers' requirements.

 

Financial risk management objectives and policies

The company's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk.

 

The company's objective is to manage the working capital cycle in an effective manner to minimise support from financial institutions.

 

Cash flow risk

The company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

 

Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.

 

Credit risk

Credit risk amongst customers has been managed with tight credit control within the business. The company's principal financial assets are bank balances and cash, trade and other receivables

 

The company's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

 

The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

 

Liquidity risk

The company manages its day to day working capital requirements within its existing financial resources and has no overdraft facilities. The company has good long term relationships with a number of its key customers across different industries. The company also has a strong cash position and remains profitable. As a consequence the directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook.

Key performance indicators

The results of the year showed a profit before tax of £2,478,713 (2022: £847,052). Turnover has decreased by £1,439,610 from £24,281,352 to £22,841,742. Gross profit has increased by £1,161,689 from £5,861,778 (24.14%) to £7,023,467 (30.75%). Net assets have increased by £1,794,975 from £16,245,290 to £18,040,265. These are the Key Performance Indicators (KPIs) that the directors use to monitor the business.

SIR JACOB BEHRENS & SONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Future developments

The company is continuing to adapt and change as required and is always looking for new opportunities. We are dealing with the inevitable cost pressures at the moment, but remain confident that 2024 will be another positive year.

On behalf of the board

C D M Hughes
Director
23 August 2024
SIR JACOB BEHRENS & SONS 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.

Results and dividends

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

Ordinary dividends were paid amounting to £293,904. The directors do not recommend payment of a final 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 D M Hughes
G C J Hughes
H C D Hughes
(Appointed 1 March 2023)
Auditor

The auditor, JS. Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 company and of the profit or loss of the company 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 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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. The company's future developments and principal risks and uncertainties are presented within the Strategic Report.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

SIR JACOB BEHRENS & SONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
C D M Hughes
Director
23 August 2024
SIR JACOB BEHRENS & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SIR JACOB BEHRENS & SONS LIMITED
- 5 -
Opinion

We have audited the financial statements of Sir Jacob Behrens & Sons Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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:

SIR JACOB BEHRENS & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SIR JACOB BEHRENS & SONS LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, included within the directors' report, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities and 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.

 

Based on our understanding of the company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, the Companies Act 2006, UK tax, employment, pension and health and safety legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements and risk of fraudulent revenue recognition.

SIR JACOB BEHRENS & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SIR JACOB BEHRENS & SONS LIMITED (CONTINUED)
- 7 -

Our procedures to respond to risks identified included the following:

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

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 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.

Peter Atkinson F.C.A.
Senior Statutory Auditor
For and on behalf of JS. Audit Limited
11 September 2024
Chartered Accountants
Statutory Auditor
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
SIR JACOB BEHRENS & SONS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
22,841,742
24,281,352
Cost of sales
(15,818,275)
(18,419,574)
Gross profit
7,023,467
5,861,778
Administrative expenses
(4,908,615)
(4,757,458)
Operating profit
4
2,114,852
1,104,320
Interest receivable and similar income
8
209,630
26,904
Interest payable and similar expenses
9
-
0
(3,303)
Gains and losses on investments
10
154,231
(280,869)
Profit before taxation
2,478,713
847,052
Tax on profit
11
(331,884)
39,849
Profit for the financial year
2,146,829
886,901
Retained earnings brought forward
16,165,290
15,572,293
Dividends
12
(293,904)
(293,904)
Retained earnings carried forward
18,018,215
16,165,290

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

SIR JACOB BEHRENS & SONS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,895,265
1,984,775
Investments
14
1,365,029
1,202,571
3,260,294
3,187,346
Current assets
Stocks
16
8,300,304
10,166,575
Debtors
17
3,004,632
3,489,819
Cash at bank and in hand
7,788,703
3,180,915
19,093,639
16,837,309
Creditors: amounts falling due within one year
18
(4,172,995)
(3,696,188)
Net current assets
14,920,644
13,141,121
Total assets less current liabilities
18,180,938
16,328,467
Provisions for liabilities
19
(82,723)
(83,177)
Net assets
18,098,215
16,245,290
Capital and reserves
Called up share capital
21
12,246
12,246
Capital redemption reserve
22
67,754
67,754
Profit and loss reserves
23
18,018,215
16,165,290
Total equity
18,098,215
16,245,290
The financial statements were approved by the board of directors and authorised for issue on 23 August 2024 and are signed on its behalf by:
C D M Hughes
Director
Company Registration No. 00454323
SIR JACOB BEHRENS & SONS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
4,421,592
608,536
Interest paid
-
0
(3,303)
Income taxes refunded/(paid)
401,788
(161,596)
Net cash inflow from operating activities
4,823,380
443,637
Investing activities
Purchase of tangible fixed assets
(128,216)
(234,372)
Proceeds on disposal of tangible fixed assets
5,125
7,000
Proceeds on disposal of investments
-
22,186
Reclassification of cash balance from investments
-
0
11,814
Interest received
201,403
26,398
Net cash generated from/(used in) investing activities
78,312
(166,974)
Financing activities
Dividends paid
(293,904)
(293,904)
Net cash used in financing activities
(293,904)
(293,904)
Net increase/(decrease) in cash and cash equivalents
4,607,788
(17,241)
Cash and cash equivalents at beginning of year
3,180,915
3,198,156
Cash and cash equivalents at end of year
7,788,703
3,180,915
SIR JACOB BEHRENS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Sir Jacob Behrens & Sons Limited is a private company limited by shares incorporated in England and Wales. The registered office and principal place of business is Centrepoint, Marshall Stevens Way, Trafford Park, Manchester, M17 1PP.

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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Subsidiary undertakings have not been consolidated by Sir Jacob Behrens & Sons Limited as permitted by s.405 of the Companies Act 2006 as their inclusion is not material to the financial statements of the company. As at the balance sheet date, I-Tex (UK) Limited held net assets of £2. Following acquisition, the trade and assets of the subsidiary were hived up.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
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.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently 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:

Freehold land and buildings
2% per annum on a straight line basis
Plant and equipment
25% per annum on a straight line basis
Computer equipment
25% per annum on a straight line basis
Motor vehicles
25% per annum on a straight line basis

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
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently 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.

SIR JACOB BEHRENS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.6
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.7
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, 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.

1.8
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

1.9
Financial instruments

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

 

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

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

SIR JACOB BEHRENS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

SIR JACOB BEHRENS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.10
Equity instruments

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

1.11
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
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.

1.13
Retirement benefits

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

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.

1.15
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.

SIR JACOB BEHRENS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
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.

 

Critical judgements in applying the Company's accounting policies

There are no critical accounting judgements, apart from those involving estimations (which are dealt with separately below), made in these financial statements.

 

Key source of estimation uncertainty - Valuation of stock

The company reviews its stock valuation continually to ensure that items are not valued at above net realisable values. Current selling prices and historic rates of sale are reviewed to ensure that a suitable provision is made to the carrying value of the stock where there is the likelihood that an item might be sold below its historic cost.

 

Key source of estimation uncertainty - Depreciation

Depreciation charge is calculated based on estimates and assumptions on asset useful economic lives and expected residual value.

 

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of textiles
22,841,742
24,281,352
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
21,741,826
22,573,174
Exports
1,099,916
1,708,178
22,841,742
24,281,352
2023
2022
£
£
Other significant revenue
Interest income
201,403
26,398
Dividends received
8,227
506
SIR JACOB BEHRENS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
209,747
185,385
Loss/(profit) on disposal of tangible fixed assets
2,854
(5,257)
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,230
12,000
For other services
All other non-audit services
22,029
14,475
6
Employees

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

2023
2022
Number
Number
Sales
45
43
Non-Sales
20
20
Total
65
63

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,008,594
2,620,083
Social security costs
319,193
317,601
Pension costs
264,369
408,290
3,592,156
3,345,974
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
266,348
186,464
SIR JACOB BEHRENS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
116,868
N/A

As total directors' remuneration was less than £200,000 in the prior year, no disclosure is provided for that year.

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
186,569
26,073
Other interest income
14,834
325
Total interest revenue
201,403
26,398
Other income from investments
Dividends received
8,227
506
Total income
209,630
26,904
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
-
0
3,303
10
Gains and losses on investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Gain/(loss) on investment portfolio
154,231
(276,341)
Other gains/(losses)
Gain/(loss) on disposal of fixed asset investments
-
0
(4,528)
154,231
(280,869)
SIR JACOB BEHRENS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
536,856
202,709
Adjustments in respect of prior periods
(204,518)
(125,120)
Total current tax
332,338
77,589
Deferred tax
Origination and reversal of timing differences
(454)
26,122
Adjustment in respect of prior periods
-
0
(143,560)
Total deferred tax
(454)
(117,438)
Total tax charge/(credit)
331,884
(39,849)

The actual charge/(credit) 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
2,478,713
847,052
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
582,993
160,940
Tax effect of expenses that are not deductible in determining taxable profit
(32,755)
55,408
Tax effect of income not taxable in determining taxable profit
(1,935)
(96)
Adjustments in respect of prior years
(204,518)
(223,567)
Permanent capital allowances in excess of depreciation
(96)
(1,176)
Depreciation on assets not qualifying for tax allowances
9,267
7,486
Deferred tax adjustments in respect of prior years
-
0
(45,113)
Difference in corporation and deferred tax rates
(14)
6,269
Patent box additional deduction
(21,058)
-
0
Taxation charge/(credit) for the year
331,884
(39,849)

A UK corporation tax rate of 25% was announced in the Chancellor’s Budget of 3 March 2021. The 25% rate applied from 1 April 2023 and deferred tax has been calculated at this rate.

12
Dividends
2023
2022
£
£
Interim paid
293,904
293,904
SIR JACOB BEHRENS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
13
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
2,166,407
360,959
528,185
444,677
3,500,228
Additions
570
18,410
11,916
97,320
128,216
Disposals
-
0
(5,750)
-
0
(31,887)
(37,637)
At 31 December 2023
2,166,977
373,619
540,101
510,110
3,590,807
Depreciation and impairment
At 1 January 2023
519,897
307,229
525,499
162,828
1,515,453
Depreciation charged in the year
43,330
43,387
3,995
119,035
209,747
Eliminated in respect of disposals
-
0
(5,750)
-
0
(23,908)
(29,658)
At 31 December 2023
563,227
344,866
529,494
257,955
1,695,542
Carrying amount
At 31 December 2023
1,603,750
28,753
10,607
252,155
1,895,265
At 31 December 2022
1,646,510
53,730
2,686
281,849
1,984,775
14
Fixed asset investments
2023
2022
£
£
Investments in subsidiaries
15
-
0
-
0
Listed investments
1,365,029
1,202,571

Listed investments included above:

Listed investments carrying amount
1,365,029
1,202,571
SIR JACOB BEHRENS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
- 20 -
Movements in fixed asset investments
Shares in group undertakings
Other investments other than loans
Total
£
£
£
Cost or valuation
At 1 January 2023
464,310
1,202,571
1,666,881
Additions
-
8,227
8,227
Valuation changes
-
154,231
154,231
At 31 December 2023
464,310
1,365,029
1,829,339
Impairment
At 1 January 2023 & 31 December 2023
464,310
-
464,310
Carrying amount
At 31 December 2023
-
1,365,029
1,365,029
At 31 December 2022
-
1,202,571
1,202,571
15
Subsidiaries

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

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
I-Tex (UK) Limited
Centrepoint, Marshall Stevens Way, Trafford Park, Manchester, M17 1PP
Dormant
Ordinary Shares
100.00
16
Stocks
2023
2022
£
£
Raw materials and consumables
156,682
89,716
Work in progress
57,709
58,208
Finished goods and goods for resale
8,085,913
10,018,651
8,300,304
10,166,575
SIR JACOB BEHRENS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
17
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,919,446
3,365,552
Prepayments and accrued income
85,186
124,267
3,004,632
3,489,819
18
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,326,664
2,100,638
Corporation tax
884,971
150,845
Other taxation and social security
705,730
223,375
Other creditors
124,028
192,888
Accruals and deferred income
1,131,602
1,028,442
4,172,995
3,696,188
19
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
122,985
127,822
Short term timing differences
(40,262)
(44,645)
82,723
83,177
2023
Movements in the year:
£
Liability at 1 January 2023
83,177
Credit to profit or loss
(454)
Liability at 31 December 2023
82,723

The deferred tax liability set out above is expected to reverse within 4 years and relates to accelerated capital allowances and short term timing differences that are expected to mature within the same period.

SIR JACOB BEHRENS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
264,369
408,290

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

At the balance sheet date outstanding contributions to the scheme amounted to £3,175 (2022: £19,170).

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
12,246
12,246
12,246
12,246
22
Capital redemption reserve

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

23
Profit and loss reserves

This reserve includes all current and prior period retained profits and losses, net of distribution to shareholders.

24
Operating lease commitments

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

2023
2022
£
£
Within one year
46,882
44,334
Between two and five years
17,696
20,554
64,578
64,888
25
Directors' transactions

As at the balance sheet date, a total of £117,843 was owed to one of the directors (2022: £170,173).

26
Ultimate controlling party

The ultimate controlling party is considered to be C D M Hughes by virtue of his majority shareholding in the company.

SIR JACOB BEHRENS & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
27
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,146,829
886,901
Adjustments for:
Taxation charged/(credited)
331,884
(39,849)
Finance costs
-
0
3,303
Investment income
(209,630)
(26,904)
Loss/(gain) on disposal of tangible fixed assets
2,854
(5,257)
Depreciation and impairment of tangible fixed assets
209,747
185,385
(Gain)/loss on sale of investments
-
4,528
Other gains and losses
(154,231)
276,341
Movements in working capital:
Decrease/(increase) in stocks
1,866,271
(2,475,974)
Decrease in debtors
485,187
487,216
(Decrease)/increase in creditors
(257,319)
1,312,846
Cash generated from operations
4,421,592
608,536
28
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
3,180,915
4,607,788
7,788,703
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200No description of principal activityG C J HughesH C D HughesH C D HughesC D M Hughesfalsefalse004543232023-01-012023-12-3100454323bus:CompanySecretaryDirector12023-01-012023-12-3100454323bus:Director12023-01-012023-12-3100454323bus:Director22023-01-012023-12-3100454323bus:CompanySecretary12023-01-012023-12-3100454323bus:Director32023-01-012023-12-3100454323bus:RegisteredOffice2023-01-012023-12-3100454323bus:Agent12023-01-012023-12-3100454323bus:Agent22023-01-012023-12-31004543232023-12-31004543232022-01-012022-12-3100454323core:RetainedEarningsAccumulatedLosses2022-12-3100454323core:RetainedEarningsAccumulatedLosses2021-12-3100454323core:RetainedEarningsAccumulatedLosses2023-12-3100454323core:RetainedEarningsAccumulatedLosses2022-12-3100454323core:ShareCapital2023-12-3100454323core:ShareCapital2022-12-3100454323core:CapitalRedemptionReserve2023-12-3100454323core:CapitalRedemptionReserve2022-12-31004543232022-12-3100454323core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3100454323core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-3100454323core:PlantMachinery2023-12-3100454323core:ComputerEquipment2023-12-3100454323core:MotorVehicles2023-12-3100454323core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3100454323core:PlantMachinery2022-12-3100454323core:ComputerEquipment2022-12-3100454323core:MotorVehicles2022-12-3100454323core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3100454323core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3100454323core:CurrentFinancialInstruments2023-12-3100454323core:CurrentFinancialInstruments2022-12-31004543232022-12-31004543232021-12-3100454323core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-012023-12-3100454323core:PlantMachinery2023-01-012023-12-3100454323core:ComputerEquipment2023-01-012023-12-3100454323core:MotorVehicles2023-01-012023-12-310045432312023-01-012023-12-310045432312022-01-012022-12-3100454323core:UKTax2023-01-012023-12-3100454323core:UKTax2022-01-012022-12-310045432322023-01-012023-12-310045432322022-01-012022-12-310045432332023-01-012023-12-310045432332022-01-012022-12-3100454323core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3100454323core:PlantMachinery2022-12-3100454323core:ComputerEquipment2022-12-3100454323core:MotorVehicles2022-12-3100454323core:Non-currentFinancialInstruments2023-12-3100454323core:Non-currentFinancialInstruments2022-12-3100454323core:Non-currentFinancialInstrumentscore:ListedExchangeTraded2023-12-3100454323core:Non-currentFinancialInstrumentscore:ListedExchangeTraded2022-12-3100454323core:WithinOneYear2023-12-3100454323core:WithinOneYear2022-12-3100454323core:BetweenTwoFiveYears2023-12-3100454323core:BetweenTwoFiveYears2022-12-3100454323bus:PrivateLimitedCompanyLtd2023-01-012023-12-3100454323bus:FRS1022023-01-012023-12-3100454323bus:Audited2023-01-012023-12-3100454323bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP