Company registration number 02611014 (England and Wales)
J & S ACCESSORIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
J & S ACCESSORIES LIMITED
COMPANY INFORMATION
Directors
P J D Cook
P J D Lynch
Secretary
P J D Lynch
Company number
02611014
Registered office
Chester Road
Oakmere
Northwich
Cheshire
CW8 2HB
Auditor
Riverside Accountancy Lancaster Limited
Riverside Offices
2nd Floor
26 St. George's Quay
Lancaster, LA1 1RD
Accountants
Hall Livesey Brown
HLB House
68 High Street
Tarporley
Cheshire
CW6 0AT
Bankers
National Westminster Bank Plc
P O Box 138
22 Castle Street
Liverpool
L69 2BE
J & S ACCESSORIES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
J & S ACCESSORIES 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 happy with trading for 2023. Performance to date in 2024 is strong.

 

The trend towards internet shopping, in general, continues however there remains a significant preference to shop in store within the motorcycle industry.

 

Trading conditions are difficult as many internet retailers discount heavily and price matching with reduced margins is necessary to compete. This is combatted by a strong purchasing ethos to minimise purchase cost whilst maintaining quality in order to maximise profitability.

 

Principal risks and uncertainties

War in Ukraine

The war in Ukraine is continuing to disrupt world markets

As described in the report last year it is evident that the cost-of-living crisis as a result of energy supply restrictions and cost hikes is still with us.

There is, however, little or no evidence of customer anxiety and the company continues to experience healthy trading. There exists, however, a potential for a recession along with significant RPI increases, which may combine to create a less positive trading environment in the near future.

 

Brexit

Importers are continuing to handle the new legislation surrounding the importation of goods into the UK in many differing ways whilst trying to optimise their individual processes. Disruption and pricing issues experienced in 2022 and 2023 are still evident but to a much lesser degree. Trading has possibly benefitted from being outside the EU as a greater degree of uncertainty now exists for customers thinking of buying from abroad.

 

The company continues to monitor trading on a daily basis and will react appropriately as circumstances dictate.

 

COVID-19

Apart from reports of long covid and regular, ongoing occurrences of covid, the pandemic no longer appears to have any impact upon trading. Covid is now treated as flu would be for most of the population.

 

Supply chains

Labour shortages no longer pose a difficulty. The hugely increased shipping costs experienced in 2021 and 2022 are returning back towards normal. It is, however, anticipated that costs will not return to previous levels but will remain manageable, although 2024 is experiencing a moderate hike in shipping costs as container companies seek to restrict supply but maintain their margins.

Disruption at ports has largely disappeared.

 

 

 

Key performance indicators

In its day to day operations the company's management measures its performance using the following key performance indicators:

 

Sales of clothing and accessories via retail outlets and the internet

 

Gross margin % achieved on clothing and accessories sales.

 

Stock days

 

Overhead areas as % of turnover

J & S ACCESSORIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Future developments

No further outlets were acquired during the year however the company continues to review the proximity of competitors and review the potential opportunities in areas of the country where J&S Accessories are not represented

On behalf of the board

P J D Cook
Director
26 September 2024
J & S ACCESSORIES 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 during the year was the retail of motor cycle accessories.

Directors

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

P J D Cook
P J D Lynch
Results and dividends

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

Dividends were paid amounting to £876,915. The directors do not recommend payment of a final dividend.

No preference dividends were paid.

Financial instruments
Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

Interest rate risk

The company finances its operations through a mixture of cash and reinvestment of net income. The company has minimal exposure to interest rate risks.

Foreign currency risk

The company has limited exposure to translation ad transaction foreign exchange risk and do not consider this to have a significant impact on this operations.

Credit risk

The company does not offer credit to customers other than to city councils, police forces and the fire brigade. Credit risk exposure is minimal.

Auditor

Riverside Accountancy Lancaster Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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
P J D Cook
Director
26 September 2024
J & S ACCESSORIES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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.

J & S ACCESSORIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J & S ACCESSORIES LIMITED
- 5 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

J & S ACCESSORIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J & S ACCESSORIES LIMITED
- 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.

 

The extent to which our procedures are capable of detecting irregularities, including fraud, are detailed below.

 

 

J & S ACCESSORIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J & S ACCESSORIES LIMITED
- 7 -

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.

Lyndsay Nicholson ACA
Senior Statutory Auditor
For and on behalf of Riverside Accountancy Lancaster Limited
26 September 2024
Chartered Accountants
Statutory Auditor
Riverside Offices
2nd Floor
26 St. George's Quay
Lancaster, LA1 1RD
J & S ACCESSORIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
37,062,429
35,679,635
Cost of sales
(19,925,163)
(19,824,248)
Gross profit
17,137,266
15,855,387
Administrative expenses
(13,515,329)
(11,938,949)
Other operating income
24,244
37,589
Operating profit
4
3,646,181
3,954,027
Interest receivable and similar income
8
6,612
6,686
Interest payable and similar expenses
9
(60,815)
(16,578)
Profit before taxation
3,591,978
3,944,135
Tax on profit
10
(877,810)
(733,545)
Profit for the financial year
2,714,168
3,210,590

The profit and loss account has been prepared on the basis that all operations are continuing operations.

J & S ACCESSORIES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
1
1
Tangible assets
13
2,059,350
2,335,533
2,059,351
2,335,534
Current assets
Stocks
15
25,946,324
21,033,445
Debtors
16
1,937,498
1,788,552
Cash at bank and in hand
559,957
385,841
28,443,779
23,207,838
Creditors: amounts falling due within one year
17
(9,286,167)
(6,113,109)
Net current assets
19,157,612
17,094,729
Total assets less current liabilities
21,216,963
19,430,263
Provisions for liabilities
(355,043)
(405,599)
Net assets
20,861,920
19,024,664
Capital and reserves
Called up share capital
22
54,300
54,300
Equity reserve
23
126,700
126,700
Profit and loss reserves
24
20,680,920
18,843,664
Total equity
20,861,920
19,024,664
The financial statements were approved by the board of directors and authorised for issue on 26 September 2024 and are signed on its behalf by:
P J D Cook
P J D Lynch
Director
Director
Company Registration No. 02611014
J & S ACCESSORIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Equity reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
54,300
126,700
16,119,989
16,300,989
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
3,210,590
3,210,590
Dividends
11
-
-
(486,915)
(486,915)
Balance at 31 December 2022
54,300
126,700
18,843,664
19,024,664
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
2,714,168
2,714,168
Dividends
11
-
-
(876,915)
(876,915)
Balance at 31 December 2023
54,300
126,700
20,680,920
20,861,920
J & S ACCESSORIES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
1,575,914
(174,885)
Interest paid
(60,815)
(16,578)
Income taxes paid
(834,266)
(670,620)
Net cash inflow/(outflow) from operating activities
680,833
(862,083)
Investing activities
Purchase of tangible fixed assets
(399,144)
(1,440,078)
Proceeds from disposal of tangible fixed assets
148,000
261,109
Interest received
6,612
6,686
Net cash used in investing activities
(244,532)
(1,172,283)
Financing activities
Payment of finance leases obligations
(4,101)
(16,405)
Dividends paid
(876,915)
(486,915)
Net cash used in financing activities
(881,016)
(503,320)
Net decrease in cash and cash equivalents
(444,715)
(2,537,686)
Cash and cash equivalents at beginning of year
(1,649,078)
888,608
Cash and cash equivalents at end of year
(2,093,793)
(1,649,078)
Relating to:
Cash at bank and in hand
559,957
385,841
Bank overdrafts included in creditors payable within one year
(2,653,750)
(2,034,919)
J & S ACCESSORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

J & S Accessories Limited is a private company limited by shares incorporated in England and Wales. The registered office is Chester Road, Oakmere, Northwich, Cheshire, CW8 2HB.

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, . The principal accounting policies adopted are set out below.

1.2
Going concern

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

1.3
Turnover

Turnover is 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.

 

Gift voucher revenue is recognised at the time of the purchase rather than when redeemed for goods or services. Any VAT is also recognised and paid over at this point.

1.4
Intangible fixed assets

Amortisation 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:

Trademarks
7 years Straight Line
1.5
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:

Leasehold properties
Over the term of the lease
Fixtures, fittings & equipment
15% - 50% Straight line
Motor vehicles
25% - 50% Reducing balance

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

J & S ACCESSORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.6
Impairment of fixed assets

At each reporting period end date, the company 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).

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

1.8
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.

1.9
Financial instruments

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

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

 

Basic financial assets

Short term debtors are measured at transaction price, less any impairment.

Basic financial liabilities

Short term creditors are measured at the transaction price.

Other financial liabilities
Long term creditors due more than 1 year, where applicable these are discounted to present value.

 

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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

Deferred tax

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

 

J & S ACCESSORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.11
Retirement benefits

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

1.12
Leases

Rentals payable under operating leases, 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.

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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.

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Retail of motor cycle accessories and new and used motor cycles
37,062,429
35,679,635
2023
2022
£
£
Turnover analysed by geographical market
UK Sales
37,062,429
35,679,635
2023
2022
£
£
Other revenue
Interest income
6,612
6,686
J & S ACCESSORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(3,966)
(6,590)
Fees payable to the company's auditor for the audit of the company's financial statements
13,416
13,515
Depreciation of owned tangible fixed assets
535,472
438,829
Depreciation of tangible fixed assets held under finance leases
-
17,376
Profit on disposal of tangible fixed assets
(8,145)
(1,067)
Operating lease charges
2,085,006
1,992,559
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,416
13,515
6
Employees

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

2023
2022
Number
Number
Management
7
7
Administration
18
14
Warehousing
16
15
Shop floor
205
194
Total
246
230

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
6,380,831
5,671,609
Social security costs
562,063
502,872
Pension costs
128,056
116,731
7,070,950
6,291,212
J & S ACCESSORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
108,335
104,378
Company pension contributions to defined contribution schemes
16,013
21,013
124,348
125,391

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
2,347
1,342
Other interest income
4,265
5,344
Total income
6,612
6,686
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,347
1,342
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
60,580
12,004
Other finance costs:
Interest on finance leases and hire purchase contracts
235
1,000
Other interest
-
0
3,574
60,815
16,578
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
886,032
696,720
Adjustments in respect of prior periods
42,334
-
0
Total current tax
928,366
696,720
J & S ACCESSORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
2023
2022
£
£
(Continued)
- 17 -
Deferred tax
Origination and reversal of timing differences
(50,556)
36,825
Total tax charge
877,810
733,545

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
3,591,978
3,944,135
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
897,995
749,386
Tax effect of expenses that are not deductible in determining taxable profit
1,932
(49)
Under/(over) provided in prior years
42,334
-
0
Deferred tax adjustments in respect of prior years
(50,556)
36,825
Depreciation add back
133,868
86,679
Capital allowances
(88,323)
(139,296)
Other tax adjustments
(59,440)
-
0
Taxation charge for the year
877,810
733,545
11
Dividends
2023
2022
£
£
A Ordinary interim paid
750,000
300,000
C Ordinary interim paid
30,000
60,000
D Ordinary interim paid
96,915
126,915
876,915
486,915
The company does not propose to pay a dividend after the year end in respect of this period
J & S ACCESSORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
12
Intangible fixed assets
Trademarks
£
Cost
At 1 January 2023 and 31 December 2023
1,600
Amortisation and impairment
At 1 January 2023 and 31 December 2023
1,599
Carrying amount
At 31 December 2023
1
At 31 December 2022
1
13
Tangible fixed assets
Leasehold properties
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 January 2023
1,099,981
3,681,171
1,028,935
5,810,088
Additions
-
0
218,845
180,299
399,144
Disposals
-
0
-
0
(269,285)
(269,285)
At 31 December 2023
1,099,981
3,900,016
939,950
5,939,947
Depreciation and impairment
At 1 January 2023
769,372
2,300,860
404,323
3,474,555
Depreciation charged in the year
68,679
298,292
168,501
535,472
Eliminated in respect of disposals
-
0
-
0
(129,430)
(129,430)
At 31 December 2023
838,051
2,599,152
443,394
3,880,597
Carrying amount
At 31 December 2023
261,930
1,300,864
496,556
2,059,350
At 31 December 2022
330,609
1,380,311
624,613
2,335,533

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
£
£
Motor vehicles
-
0
52,144
J & S ACCESSORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
14
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,360,322
1,400,347
Carrying amount of financial liabilities
Measured at amortised cost
8,217,119
5,351,446
15
Stocks
2023
2022
£
£
Finished goods and goods for resale
25,946,324
21,033,445
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,057,557
1,040,194
Amounts owed by related parties
286,750
350,905
Other debtors
16,015
9,248
Prepayments and accrued income
577,176
388,205
1,937,498
1,788,552
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
2,653,750
2,034,919
Obligations under finance leases
19
-
0
4,101
Trade creditors
4,304,153
2,879,205
Amounts owed to related parties
337,527
202,497
Corporation tax
390,820
296,720
Other taxation and social security
678,228
464,943
Other creditors
371,210
75,358
Accruals and deferred income
550,479
155,366
9,286,167
6,113,109

The loans and overdrafts are secured by fixed charges over the assets of the company. The newest charge is dated 6 February 2024 and is still outstanding at the audit signing date, all older charges have been satisfied in full.

J & S ACCESSORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
18
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
2,653,750
2,034,919
Payable within one year
2,653,750
2,034,919
19
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
-
0
4,101

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. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
ACAs
355,043
405,599
2023
Movements in the year:
£
Liability at 1 January 2023
405,599
Credit to profit or loss
(50,556)
Liability at 31 December 2023
355,043
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
128,056
116,731

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.

J & S ACCESSORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
22
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
115,375 'A' Ordinary shares of 10p each
11,537
11,537
2,500 'B' Ordinary shares of 10p each
250
250
1,000 'C'Ordinary shares of 10p each
100
100
62,125 'D'Ordinary shares of 10p each
6,212
6,213
115,375 'A1' Ordinary shares of 10p each
11,538
11,538
2,500 'B1' Ordinary shares of 10p each
250
250
1,000 'C1' Ordinary shares of 10p each
100
100
62,125 'D1' Ordinary shares of 10p each
6,213
6,213
115,375 'A2' Ordinary shares of 10p each
11,538
11,538
2,500 'B2' Ordinary shares of 10p each
250
250
1,000 'C2' Ordinary shares of 10p each
100
100
62,125 'D2' Ordinary shares of 10p each
6,212
6,212
54,300
54,300

 

23
Equity reserve
2023
2022
£
£
At the beginning and end of the year
126,700
126,700

Equity reserve - being a revaluation reserve

24
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
18,843,664
16,119,988
Profit for the year
2,714,168
3,210,592
Dividends declared and paid in the year
(876,915)
(486,915)
At the end of the year
20,680,917
18,843,664

Profit and loss account - the reserve records retained earnings and accumulated losses

J & S ACCESSORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
25
Operating lease commitments
Lessee

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

 

2023
2022
£
£
Within one year
1,807,456
1,893,851
Between two and five years
5,588,073
5,367,897
In over five years
7,481,513
6,820,544
14,877,042
14,082,292
26
Related party transactions

As a 31 December 2023 £286,750 (2022 - £350,905) was due to the company by J&S Retail Properties Limited and £337,527 (2022 - £202,497) was owed to J&S Doncaster Properties Limited following the company restructure.

 

As at 31 December 2023 £191,846 was also owed to Outdoor Sports Hub Limited, a new connected company.

27
Ultimate controlling party

The parent company is J&S Group Holdings Limited a company registered in England and Wales. The registered office is Chester Road, Oakmere, Northwich, Cheshire, CW8 2HB. Consolidated accounts can be found at Companies House.

 

The ultimate controlling party is Peter Cook through his shareholding in J&S Group Holdings Limited.

 

28
Directors' transactions

As at 31 December 2023 £191,845 was owed to the directors in the form of interest free loans (2022 - £27,994)

J & S ACCESSORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
29
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,714,168
3,210,590
Adjustments for:
Taxation charged
877,810
733,545
Finance costs
60,815
16,578
Investment income
(6,612)
(6,686)
Gain on disposal of tangible fixed assets
(8,145)
(1,067)
Depreciation and impairment of tangible fixed assets
535,472
456,205
Movements in working capital:
(Increase) in stocks
(4,912,876)
(3,847,826)
(Increase) in debtors
(148,946)
(575,708)
Increase/(decrease) in creditors
2,464,228
(160,516)
Cash generated from/(absorbed by) operations
1,575,914
(174,885)
30
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
385,841
174,116
559,957
Bank overdrafts
(2,034,919)
(618,831)
(2,653,750)
(1,649,078)
(444,715)
(2,093,793)
Obligations under finance leases
(4,101)
4,101
-
(1,653,179)
(440,614)
(2,093,793)
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