Company registration number 03477187 (England and Wales)
JAMESTOWN INDUSTRIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Faulkner House
Victoria Street
Rayner Essex LLP
St Albans
Chartered Accountants
Hertfordshire
AL1 3SE
JAMESTOWN INDUSTRIES LIMITED
COMPANY INFORMATION
Directors
Mr M E Sherling
Mr G C Hudson
Mr D A J Rintoul
Mr B Smith
Mr I Crabbe
Company number
03477187
Registered office
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
Auditor
Rayner Essex LLP
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
JAMESTOWN INDUSTRIES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
JAMESTOWN INDUSTRIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Fair review of the business

The directors are pleased with the performance of the company during the year, reporting operating profit of £0.2m (2022: £0.1m) and net profit of £0.08m (2022: £0.04m). Revenues benefitted from an increase in sales volumes compared to the previous year.

Principal risks and uncertainties

The principal risks and uncertainties faced by the company in the view of the directors are as follows:

 

Liquidity risk

There is a significant level of investment in fixed assets held by the company which is required to provide the plant and machinery that the group in which the company is a member needs to be able to deliver its products. The level of funds held in stock is kept to an acceptable minimum whilst the remaining funds are held either within short term debtors or the bank, offset by short term creditors. The board manages liquidity risk by a combination of controls such as the monitoring of gearing levels and ensuring that the group has sufficient available funds for its operations.

 

Price risk

The industry in which the company operates is greatly affected by the price of lead which is outside the control of the company as it is dictated by market forces. The directors therefore undertake daily reviews of the price of lead as shown on the London Metal Exchange (LME). The directors believe that the company has the appropriate controls in place to ensure that the company can react in a timely fashion to any significant changes in the price of lead.

 

Cashflow risk

The board continually monitors the cash requirements of the company to ensure that there is the appropriate level of cover. There are adequate facilities readily available to support the company's cash flow requirements at the balance sheet date.

 

Interest rate risk

The company finances its operations in the main through bank loans and asset based financing and the resulting interest costs are reviewed by the directors. The board accepts that a certain amount of third party funding is required and therefore accepts the risk attached to interest rate fluctuations.

 

Credit risk

The company undertakes credit checks for new accounts and sets credit limits for its customers. The level of debtor days is reviewed for significant accounts and procedures are in place if an account falls outside the set parameters. Due to the market conditions prevailing within the industry sector the group makes an adequate and realistic provision against trade debts.

 

JAMESTOWN INDUSTRIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Foreign currency risk

Whilst the greater part of the company’s revenues and expenses are denominated in sterling, the company is exposed to some foreign exchange risk. The company constantly reviews its exposure to limit the adverse effects of such risks on its financial performance. The use of forward foreign exchange contracts and other derivatives assist the directors in managing the risk.

 

Energy cost risk

Wholesale energy costs have seen increased volatility over recent years. The directors are taking a number of actions to manage the impact of price increases, including engaging market experts to offer advice, regular monitoring of the market and fixing some forward energy costs to reduce uncertainty.

 

Supply chain network uncertainty

Any delays in securing materials due to issues with global supply chains can cause problems. In particular, the group supplies the construction sector which is susceptible to delays and dependent on materials from different geographical locations. The directors seek to ensure that adequate levels on stock are held to meet the requirements of its customers.

Development and performance

The directors consider the level of business and the year end position to be satisfactory.

Key performance indicators

The directors review various key performance indicators during the year to measure the performance of the company both compared to budget and against the industry as a whole. A summary of these indicators are as follows:

 

Turnover

The directors review the pricing of its products in line with the prices on the LME. This means that the prices offered by the company to its customers are continually updated and remain competitive. The increase in turnover is as a result of both the rising lead prices and tonnage. Turnover for the year was £74.0m (2022: £64.7m)

 

Gross profit

As a result of the continued review of the sales prices the directors continually take steps to ensure that the company maintains its gross margin. This is reviewed throughout the year. Gross profit for the year was £3.7m (2022: £3.5m)

 

Stock turnover

The directors strive to hold stock levels to ensure that any short term fluctuation in the lead price can be covered whilst not tying up a large amount of funds in stock holding. The stock levels of the company have remained consistent with the prior year. Turnover days for the year was 14 days (2022: 9 days)

On behalf of the board

Mr M E Sherling
Director
25 September 2024
JAMESTOWN INDUSTRIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities
The principal activity of the company continued to be that of the manufacture of milled lead sheeting.
Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr G O'Riordan
(Resigned 20 January 2023)
Mr M E Sherling
Mr G C Hudson
Mr D A J Rintoul
Mr B Smith
Mr I Crabbe
Results and dividends

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

The directors do not recommend the payment of a dividend for the current financial year.
Financial instruments

The company uses financial instruments comprising bank loans and overdrafts, together with various items such as trade debtors and trade creditors that arise directly from its operations. It is the objective of the board to ensure that the company has ready access to the funds that the board deem necessary at any time during the year. The board reviews future projections to highlight any times when requirements may exceed current funding levels to ensure that facilities are in place and available.

 

The main risks arising from the financial instruments are credit risk, interest rate risk, liquidity risk and cash flow risk. The company reviews and agrees policies for managing these risks, as detailed in the strategic report, to minimise its exposure.

Future developments

General economic conditions remain difficult,with factors including Russia's ongoing invasion of Ukraine and the global recovery from the Covid-19 pandemic contributing to increased energy cost volitivity, general high cost inflation and comparatively high interest rates. The directors have taken action to mitigate these impacts and expect financial performance to remain satisfactory.

Auditor

The auditor, Rayner Essex LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

JAMESTOWN INDUSTRIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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.

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.

On behalf of the board
Mr M E Sherling
Director
25 September 2024
JAMESTOWN INDUSTRIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JAMESTOWN INDUSTRIES LIMITED
- 5 -
Opinion

We have audited the financial statements of Jamestown Industries Limited for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

JAMESTOWN INDUSTRIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JAMESTOWN INDUSTRIES 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, 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, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

JAMESTOWN INDUSTRIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JAMESTOWN INDUSTRIES LIMITED (CONTINUED)
- 7 -

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

 

 

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

 

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

 

 

There are inherent limitations in our audit procedures described above. 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.

Antony Federer FCA FCCA CF
Senior Statutory Auditor
For and on behalf of Rayner Essex LLP
25 September 2024
Chartered Accountants
Statutory Auditor
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
JAMESTOWN INDUSTRIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
73,993,318
64,734,948
Cost of sales
(70,298,179)
(61,212,739)
Gross profit
3,695,139
3,522,209
Distribution costs
(1,538,859)
(1,303,123)
Administrative expenses
(1,958,980)
(2,149,932)
Other operating income
-
0
48,530
Operating profit
6
197,300
117,684
Interest payable and similar expenses
5
(117,381)
(79,187)
Profit before taxation
79,919
38,497
Tax on profit
7
-
0
-
0
Profit for the financial year
79,919
38,497
JAMESTOWN INDUSTRIES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
1,368,533
898,420
Current assets
Stocks
9
2,602,051
1,519,098
Debtors
10
16,247,468
15,062,300
Cash at bank and in hand
13,409
38,913
18,862,928
16,620,311
Creditors: amounts falling due within one year
12
(14,112,602)
(11,543,970)
Net current assets
4,750,326
5,076,341
Total assets less current liabilities
6,118,859
5,974,761
Creditors: amounts falling due after more than one year
13
(172,895)
(108,716)
Provisions for liabilities
Deferred tax liability
16
49,817
49,817
(49,817)
(49,817)
Net assets
5,896,147
5,816,228
Capital and reserves
Called up share capital
18
10,000
10,000
Profit and loss reserves
19
5,886,147
5,806,228
Total equity
5,896,147
5,816,228

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

The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
Mr M E Sherling
Director
Company registration number 03477187 (England and Wales)
JAMESTOWN INDUSTRIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
10,000
5,767,731
5,777,731
Year ended 31 December 2022:
Profit and total comprehensive income
-
38,497
38,497
Balance at 31 December 2022
10,000
5,806,228
5,816,228
Year ended 31 December 2023:
Profit and total comprehensive income
-
79,919
79,919
Balance at 31 December 2023
10,000
5,886,147
5,896,147
JAMESTOWN INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Jamestown Industries Limited is a private company limited by shares incorporated in England and Wales. The registered office is Faulkner House, Victoria Street, St Albans, Hertfordshire, AL1 3SE.

 

The principal trading address of the company is Rassau Industrial Estate, Ebbw Vale, Gwent, Wales, NP23 5SD.

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.

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

 

 

The financial statements of the company are consolidated in the financial statements of International Metal Industries Limited. These consolidated financial statements are available from its registered office: Faulkner House, Victoria Street, St Albans, Herts, AL1 3SE.

1.2
Going concern

At 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. true

In adopting the going concern basis for preparing the financial statements, the directors have considered the business activities and the group's principal risks and uncertainties. The group in which the company is a member meets its day-to-day working capital requirements through use of its cash and banking facilities.

In assessing the appropriateness of the going concern assumption, the directors have prepared detailed cash flow forecasts using the latest information available which show that the group can continue to meet its obligations as they fall due. The directors are therefore satisfied that the group will continue to operate within facilities agreed with the group’s bankers.

JAMESTOWN INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

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

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

Plant and machinery
10% to 25% straight line
Motor vehicles
33.3% straight line

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

1.5
Impairment of fixed assets

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

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

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

JAMESTOWN INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

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

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include 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. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

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

 

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

 

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.

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.

JAMESTOWN INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.9
Equity instruments

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

1.10
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.

JAMESTOWN INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.

1.11
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.

1.12
Retirement benefits

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

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

 

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

JAMESTOWN INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.15
Foreign exchange

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Where exchange differences result from the translation of foreign currency borrowings raised to acquire foreign assets they are taken to reserves and offset against the differences arising from the translation of those assets. All other differences are taken to profit and loss account.

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.

 

There are not considered to be any estimates or assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets or liabilities of the company.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover
Trading Income
73,993,318
64,734,948
Other significant revenue
Grants received
-
48,530
Turnover analysed by geographical market
2023
2022
£
£
United Kingdom
62,496,827
54,205,829
Europe
11,496,491
10,529,119
73,993,318
64,734,948
JAMESTOWN INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
4
Employees

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

2023
2022
Number
Number
Administration
3
3

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,600,438
1,252,820
Social security costs
159,842
127,949
Pension costs
8,729
8,326
1,769,009
1,389,095

Included in total wages costs is £1,576,952 (2022: £1,170,942) recharged from a group company and therefore the staff numbers are not included in the average number of employees.

5
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
64,212
36,421
Interest on invoice finance arrangements
35,348
18,554
99,560
54,975
Other finance costs:
Interest on finance leases and hire purchase contracts
17,821
24,212
117,381
79,187
6
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
1,348
(1,688)
Government grants
-
(48,530)
Fees payable to the company's auditor for the audit of the company's financial statements
12,750
12,000
Depreciation of owned tangible fixed assets
98,383
210,585
Depreciation of tangible fixed assets held under finance leases
66,191
140,541
Cost of stocks recognised as an expense
68,576,665
59,911,258
Operating lease charges
1,231
5,280
JAMESTOWN INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
7
Taxation

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

2023
2022
£
£
Profit before taxation
79,919
38,497
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
19,980
7,314
Tax effect of expenses that are not deductible in determining taxable profit
(25,973)
-
0
Tax effect of utilisation of tax losses not previously recognised
-
0
(46,740)
Unutilised tax losses carried forward
153,061
-
0
Permanent capital allowances in excess of depreciation
(147,068)
39,426
Taxation charge for the year
-
-

The company has estimated tax losses of £600,000 (2022: Nil) available to carry forward against future trading profits.

8
Tangible fixed assets
Plant and machinery
Motor vehicles
Total
£
£
£
Cost
At 1 January 2023
8,327,067
67,116
8,394,183
Additions
634,687
-
0
634,687
At 31 December 2023
8,961,754
67,116
9,028,870
Depreciation and impairment
At 1 January 2023
7,428,647
67,116
7,495,763
Depreciation charged in the year
164,574
-
0
164,574
At 31 December 2023
7,593,221
67,116
7,660,337
Carrying amount
At 31 December 2023
1,368,533
-
0
1,368,533
At 31 December 2022
898,420
-
0
898,420
JAMESTOWN INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Tangible fixed assets
(Continued)
- 19 -

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

2023
2022
£
£
Plant and machinery
297,859
389,967
Depreciation charge for the year in respect of leased assets
66,191
140,541
9
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,602,051
1,519,098
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
355,756
335,493
Amounts owed by group undertakings
14,681,681
13,822,363
Other debtors
828,552
483,502
Prepayments and accrued income
381,479
420,942
16,247,468
15,062,300

Amounts owed by group undertakings are due within one year, interest free and unsecured.

11
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
15,116,637
14,237,056
Carrying amount of financial liabilities
Measured at amortised cost
14,281,053
11,647,982
JAMESTOWN INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
12
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
14
8,091
142,320
Obligations under finance leases
15
91,250
128,751
Trade creditors
479,659
462,975
Amounts owed to group undertakings
12,513,695
9,985,631
Taxation and social security
4,444
4,704
Other creditors
865,526
768,447
Accruals and deferred income
149,937
51,142
14,112,602
11,543,970

Included in other creditors is £843,285 (2022: £751,257) in respect of HSBC asset based financing facilities. These are secured on the assets of the company and the group.

 

Amounts owed to group undertakings are due within one year, interest free and unsecured.

13
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
14
-
0
8,716
Obligations under finance leases
15
172,895
100,000
172,895
108,716
14
Loans and overdrafts
2023
2022
£
£
Bank loans
8,091
151,036
Payable within one year
8,091
142,320
Payable after one year
-
0
8,716

The banking facilities provided to the group by HSBC PLC and HSBC Invoice Financing (UK) Limited are secured by way of a fixed and floating charge over the assets of the company and its fellow group companies.

The loan facilities provided by HSBC are wholly repayable within 24 months. The loans bear interest at 3.5% above the HSBC Bank Base Rate.

JAMESTOWN INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
15
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
91,250
128,751
In two to five years
172,895
100,000
264,145
228,751
16
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
ACAs
49,817
49,817
There were no deferred tax movements in the year.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so.

17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
8,729
8,326

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.

JAMESTOWN INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of of £1 each
10,000
10,000
10,000
10,000
19
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
5,806,228
5,767,731
Profit for the year
79,919
38,497
At the end of the year
5,886,147
5,806,228
20
Financial commitments, guarantees and contingent liabilities

The banking facilities provided to the company and group by HSBC PLC and HSBC Invoice Financing (UK) Limited are secured by way of a fixed and floating charge over the assets of the company and of its fellow group companies which include certain form group companies.

Further fixed charges have been created in favour of the Welsh Ministers securing the assets of group companies providing cross guarantees for all group companies in respect of the group's debt facilities.

 

21
Ultimate controlling party

The company's immediate parent undertaking is Envirolead Distribution Limited, a subsidiary of Envirolead Midco Limited. The company's ultimate parent company is Industrial Metals Holdings Limited, a company registered in the Isle of Man.

International Metal Industries Limited is the parent company of Envirolead Midco Limited. International Metal Industries Limited has included the financial statements of Jamestown Industries Limited in their consolidated group accounts, copies of which are available upon request: Faulkner House, Victoria Street, St Albans, Herts, AL1 3SE.

The ultimate controlling party is Mr M E Sherling by virtue of his voting rights on his shareholding in the ultimate parent company.

22
Related party transactions

The company has taken advantage of FRS 102 Section 33.1A to not disclose transactions entered into between two or more members of a group, provided that the subsidiary which is party to the transaction is wholly owned by such a member.

 

During the year the following expenditure was incurred from the following related entities which share a common director. All transactions were entered into at arm’s length:

 

 

 

2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.210Mr G O'RiordanMr M E SherlingMr G C HudsonMr D A J RintoulMr B SmithMr I Crabbefalsefalse034771872023-01-012023-12-3103477187bus:Director22023-01-012023-12-3103477187bus:Director32023-01-012023-12-3103477187bus:Director42023-01-012023-12-3103477187bus:Director52023-01-012023-12-3103477187bus:Director62023-01-012023-12-3103477187bus:Director12023-01-012023-12-3103477187bus:RegisteredOffice2023-01-012023-12-31034771872023-12-31034771872022-01-012022-12-3103477187core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3103477187core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31034771872022-12-3103477187core:PlantMachinery2023-12-3103477187core:MotorVehicles2023-12-3103477187core:PlantMachinery2022-12-3103477187core:MotorVehicles2022-12-3103477187core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3103477187core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3103477187core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3103477187core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3103477187core:CurrentFinancialInstruments2023-12-3103477187core:CurrentFinancialInstruments2022-12-3103477187core:Non-currentFinancialInstruments2023-12-3103477187core:Non-currentFinancialInstruments2022-12-3103477187core:ShareCapital2023-12-3103477187core:ShareCapital2022-12-3103477187core:RetainedEarningsAccumulatedLosses2023-12-3103477187core:RetainedEarningsAccumulatedLosses2022-12-3103477187core:ShareCapital2021-12-3103477187core:RetainedEarningsAccumulatedLosses2021-12-3103477187core:RetainedEarningsAccumulatedLosses2022-12-3103477187core:PlantMachinery2023-01-012023-12-3103477187core:MotorVehicles2023-01-012023-12-3103477187core:UKTax2023-01-012023-12-3103477187core:UKTax2022-01-012022-12-3103477187core:PlantMachinery2022-12-3103477187core:MotorVehicles2022-12-31034771872022-12-3103477187core:WithinOneYear2022-12-3103477187core:BetweenTwoFiveYears2022-12-3103477187bus:PrivateLimitedCompanyLtd2023-01-012023-12-3103477187bus:FRS1022023-01-012023-12-3103477187bus:Audited2023-01-012023-12-3103477187bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP