Company registration number 04227019 (England and Wales)
THREE JAYS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
THREE JAYS LIMITED
COMPANY INFORMATION
Director
Mr J A Wheeler
Company number
04227019
Registered office
123a Old Nottingham Road
Derby
Derbyshire
DE1 3QQ
Auditor
Xeinadin Audit Ltd
i2 Mansfield, Office Suite 0.3
Hamilton Court
Oakham Business Park
Mansfield
Nottinghamshire
NG18 5FB
THREE JAYS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 27
THREE JAYS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The director presents the strategic report for the year ended 31 December 2023.
Review of the Business
The company's principal activities continue to be the supply of building, roofing, bathroom and plumbing materials to both the UK trade (mainly house builders, commercial construction and RMI customers) and retail sector.
Our sales are split into two distinct categories, 'direct' and 'depot'. Direct goods are delivered from a supplier to a site/customer. The split in sales over the period was approximately 70% to 30% respectively.
Principal Risks and Uncertainties
The company is continually striving to expand its products and services to ensure it spreads any risks to future sustainability of the business for all stakeholders. Continued demand across the industry helps support this despite any continual uncertainty regarding the strength of the UK economy.
Analysis of Development and performance
The company's overall sales reduced by £8m compared to the previous year's increase of £10m, due to a reduction in activity across the industry during the year, with an overall gross profit of 14.3% (2022: 14.3%). Net profit after tax for the year was £194,055.
The company remains committed to supporting customers with good products and quality of service.
Mr J A Wheeler
Director
20 September 2024
THREE JAYS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The director presents his annual report and financial statements for the year ended 31 December 2023.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr J A Wheeler
Auditor
In accordance with the company's articles, a resolution proposing that Xeinadin Audit Ltd be reappointed as auditor of the group will be put at a General Meeting.
Statement of director's responsibilities
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
THREE JAYS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
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 auditor of the company 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 auditor of the company is aware of that information.
On behalf of the board
Mr J A Wheeler
Director
20 September 2024
THREE JAYS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THREE JAYS LIMITED
- 4 -
Opinion
We have audited the financial statements of Three Jays Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
THREE JAYS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THREE JAYS LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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:
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 director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the aduit was considered capable of stecting irregularities, including fraud
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were The Companies Act 2006 and relevant taxation compliance regulations.
In addition, we also concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements, being those laws relating to environmental and occupational health and safety regulations, data protection and GDPR guidelines. The company also has to follow regulations from the Programme for the Endorsement of Forest Certification (PEFC) and the Forest Stewardship Council (FSC) in respect of any timber that is purchased.
THREE JAYS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THREE JAYS LIMITED
- 6 -
We understood how the company is complying with these frameworks and regulations by making enquiring of management and those responsible for compliance and corroborated these enquiries with reviews of board minutes and any available correspondence with legal advisors.
We assessed that there were risks of material impact on the financial statements from irregularities, including fraud from the overide of controls by management, timing and recognising of income and in the manipulation of the company's key performance indicators to meet targets.
Audit response to risks identified
We carried out procedures to respond to these risks, including enquiries of management about their systems and controls to identify these risks of irregularities, testwork to review a sample of journal entries made during the year, reviewing and testing assumptions made on accounting estimates for management biases and testing the timing and recognition of revenue.
Our audit procedures were designed to respond to risks of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve more sophisticated acts, including concealment, collusion or deliberately failing to record transactions through intentional misrepresentation.
There are inherent limitations within an audit, even though it has been properly planned and carried out in accordance with auditing standards and we cannot be responsible for preventing non-compliance and cannot be expected to detect non compliance with all laws and regulations.
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.
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.
Christopher Holder BA BFP FCA (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Ltd
24 September 2024
Chartered Accountants
Statutory Auditor
i2 Mansfield, Office Suite 0.3
Hamilton Court
Oakham Business Park
Mansfield
Nottinghamshire
NG18 5FB
THREE JAYS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
2
47,208,271
55,433,693
Cost of sales
(40,466,931)
(47,516,698)
Gross profit
6,741,340
7,916,995
Distribution costs
(475,803)
(485,598)
Administrative expenses
(5,557,530)
(6,472,488)
Operating profit
3
708,007
958,909
Interest receivable and similar income
6
2,356
Interest payable and similar expenses
7
(435,640)
(214,577)
Profit before taxation
274,723
744,332
Tax on profit
8
(78,071)
(171,870)
Profit for the financial year
23
196,652
572,462
Profit for the financial year is all attributable to the owners of the parent company.
THREE JAYS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
196,652
572,462
Other comprehensive income
Revaluation of tangible fixed assets
319,033
Total comprehensive income for the year
196,652
891,495
Total comprehensive income for the year is all attributable to the owners of the parent company.
THREE JAYS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
3,411,110
1,559,786
Current assets
Stocks
13
2,442,404
2,887,347
Debtors
14
7,953,775
13,402,327
Cash at bank and in hand
415,861
687,919
10,812,040
16,977,593
Creditors: amounts falling due within one year
15
(8,487,614)
(14,608,847)
Net current assets
2,324,426
2,368,746
Total assets less current liabilities
5,735,536
3,928,532
Creditors: amounts falling due after more than one year
16
(1,648,916)
(15,089)
Provisions for liabilities
Deferred tax liability
18
54,314
77,789
(54,314)
(77,789)
Net assets
4,032,306
3,835,654
Capital and reserves
Called up share capital
20
37,150
37,150
Revaluation reserve
21
427,060
429,075
Capital redemption reserve
22
112,850
112,850
Profit and loss reserves
23
3,455,246
3,256,579
Total equity
4,032,306
3,835,654
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved and signed by the director and authorised for issue on 20 September 2024
20 September 2024
Mr J A Wheeler
Director
Company registration number 04227019 (England and Wales)
THREE JAYS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
11
429,698
429,698
Current assets
Debtors
14
15,332
Creditors: amounts falling due within one year
15
(17,231)
(25,240)
Net current liabilities
(17,231)
(9,908)
Net assets
412,467
419,790
Capital and reserves
Called up share capital
20
37,150
37,150
Capital redemption reserve
22
112,850
112,850
Profit and loss reserves
23
262,467
269,790
Total equity
412,467
419,790
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £7,323 (2022 - £1,095,016 profit).
The financial statements were approved and signed by the director and authorised for issue on 20 September 2024
20 September 2024
Mr J A Wheeler
Director
Company registration number 04227019 (England and Wales)
THREE JAYS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
58,500
111,282
91,500
3,775,377
4,036,659
Year ended 31 December 2022:
Profit for the year
-
-
-
572,462
572,462
Other comprehensive income:
Revaluation of tangible fixed assets
-
319,033
-
-
319,033
Total comprehensive income
-
319,033
-
572,462
891,495
Own shares acquired
-
-
-
(1,092,500)
(1,092,500)
Redemption of shares
20
-
-
21,350
-
21,350
Transfers
-
(1,240)
-
1,240
-
Other movements
(21,350)
-
-
-
(21,350)
Balance at 31 December 2022
37,150
429,075
112,850
3,256,579
3,835,654
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
196,652
196,652
Transfers
-
(2,015)
-
2,015
-
Balance at 31 December 2023
37,150
427,060
112,850
3,455,246
4,032,306
THREE JAYS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
58,500
91,500
267,274
417,274
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
1,095,016
1,095,016
Own shares acquired
-
-
(1,092,500)
(1,092,500)
Redemption of shares
20
-
21,350
-
21,350
Other movements
(21,350)
-
-
(21,350)
Balance at 31 December 2022
37,150
112,850
269,790
419,790
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
(7,323)
(7,323)
Balance at 31 December 2023
37,150
112,850
262,467
412,467
THREE JAYS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
6,353,999
(2,791,984)
Interest paid
(435,640)
(214,577)
Income taxes paid
(158,751)
(98,319)
Net cash inflow/(outflow) from operating activities
5,759,608
(3,104,880)
Investing activities
Purchase of tangible fixed assets
(2,085,772)
(93,643)
Proceeds from disposal of tangible fixed assets
24,094
2,050
Interest received
2,356
Net cash used in investing activities
(2,059,322)
(91,593)
Financing activities
Movement on invoice discounting amount
(5,646,236)
4,582,006
Redemption of shares
(1,092,500)
Proceeds from new bank loans
1,750,000
-
Repayment of bank loans
(40,159)
-
Payment of finance leases obligations
(35,949)
(63,478)
Net cash (used in)/generated from financing activities
(3,972,344)
3,426,028
Net (decrease)/increase in cash and cash equivalents
(272,058)
229,555
Cash and cash equivalents at beginning of year
687,919
458,364
Cash and cash equivalents at end of year
415,861
687,919
THREE JAYS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
Three Jays Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 123a Old Nottingham Road, Derby, DE1 3QQ.
The group consists of Three Jays Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
1.2
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Three Jays Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.3
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable net of VAT and other sales related taxes.
THREE JAYS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years. The asset has been fully amortised as at 31 December 2020.
1.6
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:
Freehold land and buildings
2% on cost
Leasehold land and buildings
over the period of the lease
Plant and equipment
33% on cost, 20% on cost and 10% on cost
Motor vehicles
20% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.7
Fixed asset investments
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
1.9
Stocks
Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
1.10
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.
THREE JAYS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.11
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are 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.
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 group 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.
1.12
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
THREE JAYS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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 if, and only if, there is 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.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
2
Turnover and other revenue
The turnover and profit before taxation are attributable to the one principal activity of the group.
THREE JAYS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
3
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
181,887
104,178
Depreciation of tangible fixed assets held under finance leases
7,550
43,961
Loss on disposal of tangible fixed assets
20,916
3,799
Other operating lease charges
300,117
347,229
Hire of vehicles
161,676
173,914
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group including subsidiaries
17,530
16,800
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration
12
12
-
-
Sales
60
61
1
2
Direct
11
11
-
-
Total
83
84
1
2
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,324,252
3,980,714
Social security costs
432,996
555,207
-
-
Pension costs
240,687
253,360
3,997,935
4,789,281
THREE JAYS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
2,356
-
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank loans
430,829
209,815
Other interest on financial liabilities
1,000
1,000
Interest on finance leases and hire purchase contracts
3,811
3,762
Total finance costs
435,640
214,577
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
101,546
158,867
Deferred tax
Origination and reversal of timing differences
(23,475)
13,003
Total tax charge
78,071
171,870
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
274,723
744,332
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
64,615
141,423
Tax effect of expenses that are not deductible in determining taxable profit
5,210
11,035
Unutilised tax losses carried forward
190
Group relief
(2,598)
Depreciation on assets not qualifying for tax allowances
34,319
6,219
Deferred tax adjustments in respect of prior years
(23,475)
13,003
Taxation charge
78,071
171,870
THREE JAYS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
9
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
70,000
Amortisation and impairment
At 1 January 2023 and 31 December 2023
70,000
Carrying amount
At 31 December 2023
At 31 December 2022
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
10
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2023
1,175,000
51,937
753,346
83,551
2,063,834
Additions
1,873,610
158,393
53,768
2,085,771
Disposals
(159,715)
(23,420)
(183,135)
Transfers
51,937
(51,937)
At 31 December 2023
3,100,547
752,024
113,899
3,966,470
Depreciation and impairment
At 1 January 2023
21,677
427,370
55,001
504,048
Depreciation charged in the year
28,657
30,260
112,981
17,539
189,437
Eliminated in respect of disposals
(115,025)
(23,100)
(138,125)
Transfers
51,937
(51,937)
At 31 December 2023
80,594
425,326
49,440
555,360
Carrying amount
At 31 December 2023
3,019,953
326,698
64,459
3,411,110
At 31 December 2022
1,175,000
30,260
325,976
28,550
1,559,786
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
THREE JAYS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Tangible fixed assets
(Continued)
- 21 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
32,590
105,951
Motor vehicles
19,756
52,346
105,951
-
-
Included in cost or valuation of land and buildings is freehold land of £1,049,444 (2022: £300,000) which is not depreciated.
Land and buildings with a carrying amount of £1,157,584 (2022 £1,175,000 were revalued on 8th February 2023 by FHP, independent valuer's not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
Land and buildings are carried at valuation and cost. If revalued land and buildings were measured using the cost model, the carrying amounts would have been approximately £723,084 (2022 £746,018), being cost £964,569 (2022 £964,569 and depreciation £241,485 (2022 £218,551).
Land and buildings also include amounts valued at cost of £1,925,547 (2022 £Nil).
11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
12
429,698
429,698
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
429,698
Carrying amount
At 31 December 2023
429,698
At 31 December 2022
429,698
THREE JAYS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
12
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Browns Builders Merchants Limited
123 Old Nottingham Road, Derby, Derbyshire, DE1 3QQ
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Browns Builders Merchants Limited
4,049,537
203,975
13
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
2,442,404
2,887,347
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,706,889
13,074,737
Other debtors
-
15,332
15,332
Prepayments and accrued income
246,886
312,258
7,953,775
13,402,327
-
15,332
THREE JAYS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loan
67,874
Obligations under finance leases
17
21,588
49,397
Other borrowings
10,000
10,000
10,000
10,000
Trade creditors
4,145,466
4,656,914
Amounts owed to group undertakings
7,231
15,240
Corporation tax payable
101,662
158,867
Other taxation and social security
230,592
406,867
-
-
Other creditors
3,021,075
8,667,311
Accruals and deferred income
889,357
659,491
8,487,614
14,608,847
17,231
25,240
Included within other creditors is a secured debt, being the invoice discounting facility of £3,021,075 (2022 £8,667,311).
The invoice discounting facility is secured by a debenture, first legal charge over land and buildings, fixed and floating charges over all assets present and future, and a cross corporate guarantee with Three Jays Limited, the parent company.
The bank loan is secured against the property which it relates.
16
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loan
1,641,967
Obligations under finance leases
17
6,949
15,089
1,648,916
15,089
-
-
The bank loan is secured against the property to which it relates.
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,310,626
-
-
-
THREE JAYS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
17
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
21,588
49,397
In two to five years
6,949
15,089
28,537
64,486
-
-
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
54,314
77,789
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
77,789
-
Credit to profit or loss
(23,475)
-
Liability at 31 December 2023
54,314
-
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
253,260
224,542
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
THREE JAYS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
20
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
37,150
37,150
37,150
37,150
21
Revaluation reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
429,075
111,282
Revaluation surplus arising in the year
319,033
Transfer to retained earnings
(2,015)
(1,240)
-
-
At the end of the year
427,060
429,075
-
22
Capital redemption reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
112,850
91,500
112,850
91,500
Transfers
-
21,350
-
21,350
At the end of the year
112,850
112,850
112,850
112,850
23
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
3,256,579
3,775,377
269,790
267,274
Profit/(loss) for the year
196,652
572,462
(7,323)
1,095,016
Transfer from revaluation reserve
2,015
1,240
-
-
Own shares acquired
-
(1,092,500)
-
(1,092,500)
At the end of the year
3,455,246
3,256,579
262,467
269,790
24
Financial commitments, guarantees and contingent liabilities
As at 31 December the company's subsidiary had capital commitments of £178,252 (2022 £Nil) in respect of costs already contracted for capital equipment.
THREE JAYS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
25
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
319,267
334,302
-
-
Between two and five years
739,421
1,062,701
-
-
In over five years
50,000
151,728
-
-
1,108,688
1,548,731
-
-
26
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
196,652
572,462
Adjustments for:
Taxation charged
78,071
171,870
Finance costs
435,640
214,577
Investment income
(2,356)
Loss on disposal of tangible fixed assets
20,916
3,799
Depreciation and impairment of tangible fixed assets
189,437
148,139
Movements in working capital:
Decrease/(increase) in stocks
444,943
(417,225)
Decrease/(increase) in debtors
5,448,552
(1,656,337)
Decrease in creditors
(457,857)
(1,829,269)
Cash generated from/(absorbed by) operations
6,353,998
(2,791,984)
THREE JAYS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
27
Analysis of changes in net funds/(debt) - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
687,919
(272,058)
415,861
Borrowings excluding overdrafts
(10,000)
(1,709,841)
(1,719,841)
Obligations under finance leases
(64,486)
35,949
(28,537)
613,433
(1,945,950)
(1,332,517)
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