REGISTERED NUMBER: NI648008 (Northern Ireland) |
J & J NI HOLDINGS LIMITED |
GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
REGISTERED NUMBER: NI648008 (Northern Ireland) |
J & J NI HOLDINGS LIMITED |
GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Directors' Report | 4 |
Independent Auditors' Report | 6 |
Consolidated Income Statement | 9 |
Consolidated Statement of Financial Position | 10 |
Company Statement of Financial Position | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Statement of Cash Flows | 14 |
Notes to the Consolidated Statement of Cash Flows |
15 |
Notes to the Consolidated Financial Statements | 16 |
J & J NI HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
BANKERS: | Danske Bank |
Donegall Square West |
Belfast |
BT1 6JS |
SOLICITORS: |
Longbridge House |
24 Waring Street |
Belfast |
BT1 2DX |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The principal activity is that of a holding company. |
The principal activities of the group are the supply and servicing of automated feed and barn equipment for use within the agricultural sector. |
J & J NI Holdings Limited ("the group") continues to deliver a strong trading performance in respect of the year ended 31 December 2023 and the business remains in a sound financial position at the year end. The group returned a profit for the financial year of £2,004,911 (2022: £2,109,855) on a turnover base of £13,643,522 (2022: £11,285,041). The group has net assets of £9,727,660 (2022: £7,862,749). The directors consider the results for the year to be satisfactory. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The directors consider the key performance indicators are those that communicate the financial performance and strengths as a whole, being revenue, gross profit margin and operating profit. |
The directors have provided an analysis of the key performance indicators of the business below. The directors continue to monitor revenue and costs to ensure the group remains profitable. The group continues to maintain a strong net asset position. |
2023 | 2022 |
Revenue | £13,643,522 | £11,285,041 |
Gross profit margin | 27.0% | 28.7% |
Operating profit | 2,535,320 | 2,556,062 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group operations expose it to a variety of risks that include economic risk, competition risk and financial risk. The group has in place a risk management programme that seeks to limit and adverse effects on the financial performance of the group. |
Economic Risk: |
The economic risks facing the group include wages inflation and fall in demand for products. The directors work closely with employees, customers, suppliers and the group's financial institutions to carefully manage such risks. |
Competition Risk: |
Competition risk is managed through close attention to product quality, customer service and sustainable markets. |
Financial Risk: |
The group has exposure to financial risks through interest rates applied to its bank borrowings. These risks are managed by budgetary control and maintaining a close working relationship with its bankers. |
STRATEGY & DEVELOPMENT |
The group's success is dependent on understanding and meeting the developing needs of customers and developing innovative solutions for their needs. The group will continue to improve upon its position and concentrate on achieving maximum growth in its market sector while at the same time continuing to improve efficiency in all areas of its operations. With its proven track record the company believes it will be well placed to retain existing customers and generate new business. |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FUTURE DEVELOPMENTS |
The group is committed to long term creation of shareholder value by increasing the group's market share. The group aims to increase revenue and operating profits. The group will continue to meet the needs of the customers and develop innovative solutions for their needs while remaining highly competitive. |
ON BEHALF OF THE BOARD: |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the audited financial statements for the year ended 31 December 2023. |
DIVIDENDS |
Interim dividend of £140,000 (2022: £235,000) were paid during the year. The directors do not recommend payment of a final dividend (2022: Nil). |
RESEARCH AND DEVELOPMENT |
The group continues to recognise the importance of its research and development programme, which it believes is essential to ensure that the business continues to develop new products and remain competitive in the market. |
POST BALANCE SHEET EVENTS |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
Under Schedule 7.1A of "Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008" the company has elected to disclose the following directors report information in the strategic report: |
- Financial performance indicators; |
- Principal risks and uncertainties; |
- Principal activity and business review; and |
- Future developments. |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Group's auditors are aware of that information. |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
AUDITORS |
The auditors, CavanaghKelly, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
J & J NI HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of J & J NI Holdings Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the Group's and of the Parent Company affairs as at 31 December 2023 and of the Group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
J & J NI HOLDINGS LIMITED |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the Parent Company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the Group's and 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 Group or the Parent Company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
J & J NI HOLDINGS LIMITED |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud continued |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation; |
- | We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance; |
- | We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations; |
- | Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and |
- | Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override. |
The audit response to risks identified included: |
- | Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above; |
- | Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; |
- | In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 | 13,643,522 | 11,285,041 |
Cost of sales | (9,956,909 | ) | (8,044,817 | ) |
GROSS PROFIT | 3,686,613 | 3,240,224 |
Administrative expenses | (1,154,084 | ) | (687,103 | ) |
2,532,529 | 2,553,121 |
Other operating income | 2,791 | 2,941 |
OPERATING PROFIT | 6 | 2,535,320 | 2,556,062 |
Finance income | 103,107 | 18,966 |
2,638,427 | 2,575,028 |
Finance costs | 7 | (1,061 | ) | - |
PROFIT BEFORE TAXATION | 2,637,366 | 2,575,028 |
Tax on profit | 8 | (632,455 | ) | (465,173 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,004,911 |
2,109,855 |
Profit attributable to: |
Owners of the parent | 2,004,911 | 2,109,855 |
Total comprehensive income attributable to: |
Owners of the parent | 2,004,911 | 2,109,855 |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Tangible assets | 11 | 1,116,727 | 1,097,910 |
Investments | 12 | - | - |
1,116,727 | 1,097,910 |
CURRENT ASSETS |
Stocks | 13 | 4,284,411 | 2,397,681 |
Receivables: amounts falling due within one year |
14 |
4,014,040 |
1,372,786 |
Cash at bank | 3,166,025 | 5,379,423 |
11,464,476 | 9,149,890 |
PAYABLES |
Amounts falling due within one year | 15 | (2,655,835 | ) | (2,223,257 | ) |
NET CURRENT ASSETS | 8,808,641 | 6,926,633 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,925,368 |
8,024,543 |
PAYABLES |
Amounts falling due after more than one year |
16 |
(27,745 |
) |
- |
PROVISIONS FOR LIABILITIES | 19 | (169,963 | ) | (161,794 | ) |
NET ASSETS | 9,727,660 | 7,862,749 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 200 | 200 |
Retained earnings | 21 | 9,727,460 | 7,862,549 |
SHAREHOLDERS' FUNDS | 9,727,660 | 7,862,749 |
The financial statements were approved by the Board of Directors and authorised for issue on 23 May 2024 and were signed on its behalf by: |
James Irwin - Director |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Receivables: amounts falling due within one year |
14 |
Cash at bank |
PAYABLES |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 903,484 | 903,890 |
The financial statements were approved by the Board of Directors and authorised for issue on |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 | 200 | 5,987,694 | 5,987,894 |
Changes in equity |
Dividends | - | (235,000 | ) | (235,000 | ) |
Total comprehensive income | - | 2,109,855 | 2,109,855 |
Balance at 31 December 2022 | 200 | 7,862,549 | 7,862,749 |
Changes in equity |
Dividends | - | (140,000 | ) | (140,000 | ) |
Total comprehensive income | - | 2,004,911 | 2,004,911 |
Balance at 31 December 2023 | 200 | 9,727,460 | 9,727,660 |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (1,315,699 | ) | 2,509,603 |
Interest element of hire purchase payments paid |
(1,061 |
) |
- |
Finance costs paid | (10,277 | ) | (8,144 | ) |
Tax paid | (762,925 | ) | (334,805 | ) |
Net cash from operating activities | (2,089,962 | ) | 2,166,654 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (65,610 | ) | (471,521 | ) |
Sale of tangible fixed assets | 2,500 | 6,417 |
Interest received | 103,107 | 18,966 |
Net cash from investing activities | 39,997 | (446,138 | ) |
Cash flows from financing activities |
Capital repayments in year | (23,505 | ) | - |
Amount withdrawn by directors | 72 | - |
Equity dividends paid | (140,000 | ) | (235,000 | ) |
Net cash from financing activities | (163,433 | ) | (235,000 | ) |
(Decrease)/increase in cash and cash equivalents | (2,213,398 | ) | 1,485,516 |
Cash and cash equivalents at beginning of year |
2 |
5,379,423 |
3,893,907 |
Cash and cash equivalents at end of year |
2 |
3,166,025 |
5,379,423 |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 2,637,366 | 2,575,028 |
Depreciation charges | 114,408 | 106,135 |
Profit on disposal of fixed assets | (1,048 | ) | (4,587 | ) |
Finance costs | 10,277 | 8,144 |
Finance costs | 1,061 | - |
Finance income | (103,107 | ) | (18,966 | ) |
2,658,957 | 2,665,754 |
Increase in stocks | (1,886,730 | ) | (550,838 | ) |
(Increase)/decrease in trade and other debtors | (2,641,326 | ) | 691,615 |
Increase/(decrease) in trade and other creditors | 553,400 | (296,928 | ) |
Cash generated from operations | (1,315,699 | ) | 2,509,603 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31/12/23 | 1/1/23 |
£ | £ |
Cash and cash equivalents | 3,166,025 | 5,379,423 |
Year ended 31 December 2022 |
31/12/22 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 5,379,423 | 3,893,907 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/23 | Cash flow | At 31/12/23 |
£ | £ | £ |
Net cash |
Cash at bank | 5,379,423 | (2,213,398 | ) | 3,166,025 |
5,379,423 | (2,213,398 | ) | 3,166,025 |
Debt |
Finance leases | - | (45,561 | ) | (45,561 | ) |
- | (45,561 | ) | (45,561 | ) |
Total | 5,379,423 | (2,258,959 | ) | 3,120,464 |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
J & J NI Holdings Limited is a private company limited by shares, registered in Northern Ireland. The company's registered number is NI648008 and the registered office address is 52 Maydown Road, Benburb, County Tyrone. |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis and in accordance with the historical cost convention. The financial reporting framework that has been applied in their preparation is the Companies Act 2006 (the "Act") and FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" issued by the Financial Reporting Council. |
The financial statements are prepared in sterling, which is the functional currency of the entity. |
Basis of consolidation |
The group financial statements consolidate the financial statements of its subsidiary undertakings drawn up to 31 December each year. Consistent accounting policies are applied across companies within the group. The results of subsidiary undertakings sold or acquired are included in the consolidated income statement up to or from the date control passes. Intra-group sales, profits and balances are eliminated fully on consolidation. No income statement is presented for J & J NI Holdings Limited as permitted by section 408 of the Companies Act 2006. |
Significant judgements and estimates |
The preparation of the financial statements in accordance with generally accepted accounting principles requires management to make estimates, judgements and assumptions that affect the reported amounts of assets and liabilities, income and expenditure in the reporting period. Actual results could differ from those estimates. Therefore, management believe the critical accounting policies where estimates, judgements and assumptions are necessarily applied are summarised below: |
Warranty Provision |
The Group offers a warranty for any breakdowns within warranty terms. Provision is made for potential claims under warranty for goods which have malfunctioned. Management review the level of sales and the number of warranty claims made on a regular basis in order to calculate the provision for future claims for goods sold. |
Revenue |
Turnover represents sales to external customers at invoiced amounts exclusive of value added tax. Turnover is recognised when the risks and rewards of owning the goods has passed to the customer. |
Property, plant and equipment |
Property, plant and equipment are stated at cost less accumulated depreciation. Cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows: |
Leasehold improvements | - 5% Straight Line |
Plant and machinery | - 25% Reducing Balance |
Fixtures, fittings and equipment | - 25% Reducing Balance |
Motor vehicles | - 25% Reducing Balance |
The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable. |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Inventories |
Stocks are valued at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling. |
Financial instruments |
The group has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by group and related parties and are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 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. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to group and related parties 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
(iii) Offsetting |
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. |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand and deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within current liabilities. |
Provision for liabilities |
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to in the income statement in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position. |
Impairment of non-financial assets |
The group assesses at each reporting date whether an asset may be impaired. If any such indication exists the company estimates recoverable amount of the asset. If it is not possible to estimate the recoverable amount of the individual asset, the company estimates, the recoverable amount of the cash-generating unit to which the asset belongs. The recoverable amount of an asset or cash-generating unit is the higher of its fair value less costs to sell and its value in use. If the recoverable amount is less than its carrying amount, the carrying amount of the asset is impaired and it is reduced to its recoverable amount through an impairment in profit and loss unless the asset is carried at a revalued amount where the impairment loss of a revalued asset is a revaluation decrease. |
An impairment loss recognised for all assets, including goodwill, is reversed in a subsequent period if and only if the reasons for the impairment loss have ceased to apply. |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Share capital |
Ordinary Shares are classified as equity. Incremental costs directly attributable to the issue of the new ordinary shares are shown in equity as a deduction, net of tax, from the proceeds. |
Distributions to equity holders |
Dividends and other distributions to the Group's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the Company's shareholders. These amounts are recognised in the statement of changes in equity. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the Group. |
All turnover is derived from the company's principal activities. No analysis of turnover is presented as the directors consider disclosure to be seriously prejudical to the interests of the company. |
5. | EMPLOYEES AND DIRECTORS |
Staff costs, including directors' remuneration, were as follows: |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,225,065 | 1,065,528 |
Social security costs | 122,934 | 115,109 |
Other pension costs | 178,389 | 164,411 |
1,526,388 | 1,345,048 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 2 | 2 |
Production | 24 | 21 |
Administration | 16 | 13 |
42 | 36 |
The company had no employees (2022: None). |
The directors are considered to be the key management of the company. Retirement benefits are accruing to the directors at the year end. |
2023 | 2022 |
£ | £ |
Directors' remuneration | 20,500 | 19,470 |
Directors' pensions paid | 84,280 | 74,280 |
104,780 | 93,750 |
Directors are considered the key management of the company. |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/ (crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 1,635 | 665 |
Operating Lease payments | 9,600 | 9,600 |
Depreciation - owned assets | 108,131 | 106,135 |
Depreciation - assets under HP | 6,276 |
Profit on disposal of fixed assets | (1,048 | ) | (4,587 | ) |
Foreign exchange differences | 15,249 | 20,362 |
Fees payable to auditor |
- audit fees | 10,500 | 10,500 |
7. | FINANCE COSTS |
2023 | 2022 |
£ | £ |
Hire purchase interest | 1,061 | - |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 624,286 | 502,925 |
Adjustments in respect of |
previous period | - | (48,014 | ) |
Total current tax | 624,286 | 454,911 |
Deferred tax: |
Adjustments in respect of |
previous period | - | 22,700 |
Origination and reversal of timing differences | 7,686 | (12,438 | ) |
Impact of rate change | 483 | - |
Total deferred tax | 8,169 | 10,262 |
Tax on profit | 632,455 | 465,173 |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 2,637,366 | 2,575,028 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.520 % (2022 - 19 %) |
620,308 |
489,255 |
Effects of: |
Expenses not deductible for tax purposes | 5,289 | - |
Income not taxable for tax purposes | - | 48 |
Depreciation in excess of capital allowances | 6,375 | 4,170 |
Adjustments to tax charge in respect of previous periods | - | (25,314 | ) |
Impact of rate change | 483 | (2,986 | ) |
Total tax charge | 632,455 | 465,173 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
J & J NI Holdings Limited ("the company") made a profit of £903,484 (2022: £903,890). |
10. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim paid | 140,000 | 235,000 |
11. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Land & | Leasehold | Plant and |
property | improvements | machinery |
£ | £ | £ |
COST |
At 1 January 2023 | 425,559 | 438,935 | 22,681 |
Additions | - | - | - |
Disposals | - | - | - |
At 31 December 2023 | 425,559 | 438,935 | 22,681 |
DEPRECIATION |
At 1 January 2023 | - | 21,946 | 18,808 |
Charge for year | - | 30,910 | 968 |
Eliminated on disposal | - | - | - |
At 31 December 2023 | - | 52,856 | 19,776 |
NET BOOK VALUE |
At 31 December 2023 | 425,559 | 386,079 | 2,905 |
At 31 December 2022 | 425,559 | 416,989 | 3,873 |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | PROPERTY, PLANT AND EQUIPMENT - continued |
Group |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 121,179 | 564,486 | 1,572,840 |
Additions | 8,193 | 126,483 | 134,676 |
Disposals | - | (14,500 | ) | (14,500 | ) |
At 31 December 2023 | 129,372 | 676,469 | 1,693,016 |
DEPRECIATION |
At 1 January 2023 | 105,221 | 328,955 | 474,930 |
Charge for year | 4,992 | 77,537 | 114,407 |
Eliminated on disposal | - | (13,048 | ) | (13,048 | ) |
At 31 December 2023 | 110,213 | 393,444 | 576,289 |
NET BOOK VALUE |
At 31 December 2023 | 19,159 | 283,025 | 1,116,727 |
At 31 December 2022 | 15,958 | 235,531 | 1,097,910 |
The net book value of assets held under hire purchase at the balance sheet date was £50,967 (2022: £Nil). |
Company |
Land & | Leasehold |
property | improvements | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
and 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
2023 | 2022 |
£ | £ |
Cost | 2 | 2 |
The Group or the Company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiary |
Agritech Solutions N.I. Ltd |
Registered office: 52 Maydown Road, Benburb, Co. Tyrone, BT71 7LN |
Nature of business: Supply and servicing of automated feed and barn equipment |
Class of shares: | Holding |
Ordinary | 100% |
13. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Inventories | 4,284,411 | 2,397,681 |
The company held no stock at 31 December 2023 (2022: £Nil). |
14. | RECEIVABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade receivables | 3,403,660 | 1,061,942 |
Other receivables | 134,435 | 390 | 2,945 | 390 |
Amounts owed by group undertakings | - | - |
Amounts owed by related parties | 402,911 | 308,066 |
Prepayments and accrued income | 73,034 | 2,388 |
4,014,040 | 1,372,786 |
Amounts owed by group and related undertakings are unsecured, interest free and repayable on demand. |
15. | PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Hire purchase contracts (see note 17) | 17,816 | - |
Trade payables | 628,104 | 1,122,158 |
Tax | 364,290 | 502,929 |
Social security and other taxes | 904,001 | 424,806 |
Directors' current accounts | - | 2,084 | - | 2,084 |
Accruals and deferred income | 741,624 | 171,280 |
2,655,835 | 2,223,257 |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
16. | PAYABLES: AMOUNTS FALLING DUE AFTER ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 17) | 27,745 | - |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 17,816 | - |
Between one and five years | 27,745 | - |
45,561 | - |
18. | FINANCIAL INSTRUMENTS |
2023 | 2022 |
£ | £ |
Carrying amount of financial assets in the Group |
Measured at fair value through the income statement | 7,107,031 | 6,749,821 |
Carrying amount of financial liabilities in the Group |
Measured at amortised cost | 1,415,289 | 1,295,522 |
19. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 67,345 | 59,176 |
Other provisions |
Warranty provisions | 102,618 | 102,618 |
Aggregate amounts | 169,963 | 161,794 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 January 2023 | 59,176 | 102,618 |
Provided during year | 8,169 | - |
Balance at 31 December 2023 | 67,345 | 102,618 |
Deferred taxation relates to accelerated capital allowances. |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 200 | 200 |
21. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2023 | 7,862,549 |
Profit for the year | 2,004,911 |
Dividends | (140,000 | ) |
At 31 December 2023 | 9,727,460 |
Company |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2023 |
22. | PENSION COMMITMENTS |
The amount recognised in the consolidated income statement as an expense in relation to defined contribution plans was £178,389 (2022: £164,411). |
23. | RELATED PARTY DISCLOSURES |
The company has taken advantage of the exemption not to disclose any transactions with its subsidiary undertaking on the grounds that it is a 100% owned subsidiary and included in the consolidated accounts of J & J NI Holdings Limited. |
At the year end 31 December 2023 there were amounts owed by related parties of £402,911 (2022: £308,066) |
. |
During the year there was rent payable of £9,600 (2022: £9,600) to related parties. This was conducted under normal commercial terms. |
Related parties are deemed to be related by virtue of common directors and shareholders. |
No other transactions with related parties were undertaken such as are required to be disclosed under FRS 102 paragraph 33. |
The directors received dividend payments of £140,000 (2022: £235,000) due to their shareholding in the company. |
24. | POST BALANCE SHEET EVENTS |
There were no significant events affecting the company since the year end. |
J & J NI HOLDINGS LIMITED (REGISTERED NUMBER: NI648008) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
25. | ULTIMATE CONTROLLING PARTY |
The smallest and largest group for which consolidated accounts are prepared including the results of this company is J&J NI Holdings Limited. These financial statements are available to the public from Companies House at 32-38 Linenhall Street, Belfast. |
At the year end the ultimate controlling parties are James Irwin and Jennifer Irwin. |