REGISTERED NUMBER: |
DAVID JENKINS LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
31 DECEMBER 2023 |
REGISTERED NUMBER: |
DAVID JENKINS LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED |
31 DECEMBER 2023 |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 11 |
Statement of Cash Flows | 12 |
Notes to the Statement of Cash Flows | 13 |
Notes to the Financial Statements | 14 |
DAVID JENKINS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
And Statutory Auditors |
Ground Floor Cardigan House |
Castle Court |
Swansea Enterprise Park |
Swansea |
SA7 9LA |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The director presents his strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The Company operates as a chain of 28 (2022: 27) retail outlets in South Wales and the principal activity is that of the production and retail distribution of bread, confectionery, savouries and associated products. |
A new shop was opened in October 2023. |
The trading activities of the company continued to generate a good levels of profits, with turnover increasing by 14% and a profit before taxation of £1,830,671 being generated (2022: £2,141,804). |
The profit before taxation is after the following exceptional, non-recurring items: |
-£288,000 (£2022: £60,000) of exceptional costs; and |
-£58,000 of covid recovery grants in 2022 (2023:nil) |
The profit before exceptional items and taxation is £2,118,671 (2022: £2,143,804). The director is satisfied with the result for the year and with the company's recovery over the last three years following the challenges of the Covid pandemic and its impact on profitability in 2020. |
The turnover and gross profit trends are as follows: |
2023 | 2022 | 2021 | 2020 |
Turnover (£ ) | 14,381 | 12,615 | 10,815 | 6,961 |
Gross Profit Margin | 69% | 71% | 73% | 72% |
Turnover increased by 14% in 2023 compared with 2022 as a result of an increase in customer numbers together with price increases which had to be implemented to offset increases in raw material, wages and energy costs. |
The increase in customer numbers reflects the continuing recovery of customer demand as the communities in which the company operates continued to recover and return to normal following the impact of the Covid pandemic in earlier years and, in particular, in 2020. The company did, however, experience a slow down in customer growth in the second half of the year as the cost of living crisis adversely affected the trading environment. |
The high inflation in the UK during 2022 and 2023 has had a significant effect on the company's cost base and, in addition to increasing its selling prices to offset some of the cost increases, the company has continued to focus on initiatives to reduce costs and improve operating efficiency. |
The company invested £444,956 in 2023 (2022: £291,884) in capital expenditure. The main areas of capital expenditure related to the refurbishment of the new shop, investments in bakery equipment to increase production capacity and improve efficiency and the ongoing renewal of the company's motor vehicles. |
The company continues to maintain its community focus and has undertaken a number of initiatives to raise funds for national charities including Cancer Research UK and The Children's Trust. The company also supports food banks and contributes to a number of other local charities in the communities in which we operate. |
FUTURE PLANS |
The strong sales performance in 2023 has been largely maintained in 2024. However, the economic environment in the UK continues to be volatile and challenging and, in addition, the company operates in a very competitive retail sector with other businesses introducing extended opening hours and offering delivery services to customers. The company continues to focus on ensuring that its products are of the highest quality in order to distinguish itself and its customer offering from that of its competitors. In addition, the company regularly reviews its operating structures to ensure that it continues to provide the high quality service appropriate for the communities it operates in. The company has a loyal customer base in South Wales and is grateful for the continuing support of its customers. |
The continuing cost inflation in the UK - in particular wages and energy costs - has continued to put significant inflationary pressure on the company's cost base. The company is continuing to focus on its operating efficiency in order to minimise the impact of cost increases and limit the extent to which customer price increases have to be increased. |
The director considers that, despite the challenging economic environment, the company is well placed to continue to operate profitably and to respond to growth opportunities to develop its shop portfolio further. |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Financial Risks |
The company uses various financial instruments which include cash and other items such as trade creditors that arise directly from its operations. The main risks arising from the company's financial instruments are liquidity risk and credit risk. The directors review and agree policies for managing the principal risks as summarised below. |
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. The company has built up its cash reserves to the point where borrowings such as overdraft facilities are not relied upon for short-term flexibility. |
The company does finance some of its investments in tangible fixed assets through hire purchase contracts. The maturity of these obligations is set out in the notes to the financial statements. |
Interest rate risk |
The company manages its exposure to interest rate fluctuation on its hire purchase agreements by entering into fixed rate agreements. The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments. |
Pricing risk |
See comments in Future Plans. We do have some fixed price contracts for some key ingredients and, where appropriate, agree fixed price agreements for energy. |
Trading Risks |
Covid 19 |
The impact of Covid 19 on the company's business is now minimal following the recovery of trading activity in 2021 and 2022. The plans adopted to manage the implications of Covid 19 on the business are reviewed regularly to ensure that the company is prepared to respond to any future pandemics and the associated restrictions. |
Brexit |
The impact on the company of the UK leaving the European Union has been relatively small so far. There have been some delays in sourcing some ingredients which, indirectly, come from the EU. This has been managed by using alternative ingredients and suppliers. We will continue to ensure that we have readily available alternatives for key ingredients. |
Health & Safety |
The company has in place a rigorous and far-reaching health & safety policy and is committed to adhering to all legislation requirements imposed on it through enforcing authorities. |
ENVIRONMENTAL, SOCIAL AND GOVERNANCE RESPONSIBILITIES |
The company is committed to its environmental, social and governance responsibilities. We are proactive in continuously working to reduce the impact of our activities on the environment by monitoring energy consumption in each of our locations and undertaking initiatives to reduce consumption wherever possible. This involves investing in energy efficient plant and equipment and managing our baking activities in an efficient way. The communities our shops service are important to us and they are supported by various fund raising and sponsorship events. We engage with our customers on various social media platforms and react to any comments received from customers or employees in order to ensure that we continue to provide an exceptional service in all of the communities we are based. The director is proud of being the third generation to own and manage the business and that the business has operated successfully in South West Wales for over 100 years. We remain focused on managing the business in a sustainable and efficient way in order to safeguard and secure the company and its stakeholders' future success and prosperity. |
ON BEHALF OF THE BOARD: |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The director presents his report with the financial statements of the company for the year ended 31 December 2023. |
DIVIDENDS |
An interim dividend of £1,000 per share (£850,000) and a final dividend of £500 per share (£425,000) were paid during the year |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTOR |
David Jenkins and Russell Jenkins served as directors for the whole of the year ended 31 December 2023. |
David Jenkins sadly died suddenly subsequent to the year end, on 5 February 2024. |
David and Russell are the third generation to operate and manage the family business and David made a significant contribution to the development and success of the family business over more than 30 years. |
Appropriate changes have been made to the company's management structures following David's passing to ensure that the business continues to operate to the high standards he and Russell have always set. |
FUTURE DEVELOPMENTS IN THE BUSINESS |
The Company will continue to seek out retail opportunities that fit with its current existing business model. |
EMPLOYMENT POLICY |
The company attaches paramount importance to the well being of its workforce and is committed to their support development and motivation. The company is an equal pay employer. We provide equal opportunities and are committed to the principle of equality regardless of race, national origin, religious belief, political opinion or affiliation, gender, marital status, sexual orientation, gender reassignment, age or disability. |
We apply employment policies that are fair, equitable and consistent with the skills and abilities of our employees and the needs of the business. We implement these policies to ensure all employees are accorded equal opportunity for recruitment, training and promotion and, in all jobs of like work, on equal terms of employment. All of our employment policies are monitored to ensure compliance with current legislation and best practice. |
Applications for employment of disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff being disabled every effort is made to ensure that their employment within the Company continues and that appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of disabled people should, as far as possible, be identical to that of other employees. |
Employees and Community |
The Directors pride themselves in the contribution that the Company provides to the local community. This includes its valued employees, customers and local supply chain. |
Many of the Company's outlets are in the heart of the local communities and being a locally based business means that we can get involved in local matters and support good causes. |
The Company has been Investors in People accredited since 2004 and recruits and retains employees who share its values and is proud to have a large number of employees with long service. The future for organisations lies in people and the challenge is to develop skilled, flexible and committed people who can adapt to new ways of working. |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 company and of the profit or loss of the company 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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DAVID JENKINS LIMITED |
Opinion |
We have audited the financial statements of David Jenkins Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
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 Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DAVID JENKINS LIMITED |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page five, 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 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 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 company or to cease operations, or has no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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: |
- | enquiring of management, including obtaining and reviewing support documentation, concerning the company's policies and procedures relating to: |
- | identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- | detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- | internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; |
- | discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud. |
- | obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the company, The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation. |
In addition to the above, our procedures to respond to risks identified included the following: |
- | reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations; |
- | enquiring of management concerning actual and potential litigation and claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; |
- | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; |
- | assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and |
- | evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DAVID JENKINS LIMITED |
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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
And Statutory Auditors |
Ground Floor Cardigan House |
Castle Court |
Swansea Enterprise Park |
Swansea |
SA7 9LA |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
REVENUE |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,705,863 | 2,013,909 |
Other operating income |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
1,836,476 | 2,150,074 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Property, plant and equipment | 9 |
Investments | 10 |
CURRENT ASSETS |
Inventories | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
ACCRUALS AND DEFERRED INCOME | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Capital redemption reserve | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the director and authorised for issue on |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | (40 | ) | - |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
3,676,056 |
Cash and cash equivalents at end of year | 2 | 4,427,320 | 4,712,209 |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Government grants | ( |
) | ( |
) |
Finance costs | 5,805 | 8,270 |
Finance income | (91,693 | ) | (4,568 | ) |
2,070,778 | 2,426,731 |
Decrease/(increase) in inventories | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 4,427,320 | 4,712,209 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 4,712,209 | 3,676,056 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,712,209 | (284,889 | ) | 4,427,320 |
4,712,209 | ( |
) | 4,427,320 |
Debt |
Finance leases | (108,731 | ) | 64,732 | (43,999 | ) |
(108,731 | ) | 64,732 | (43,999 | ) |
Total | 4,603,478 | (220,157 | ) | 4,383,321 |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
David Jenkins Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Presentational and functional currency |
The presentational and functional currency is £ sterling. |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results in the future may differ from these estimates. |
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 and in any future periods affected. |
Significant management judgements |
The following are management judgements in applying the accounting policies of the company that have the most significant effect on the amounts recognised in the financial statements. |
Useful life of assets |
Tangible fixed assets, other than investment properties, are depreciated over their useful economic lives based on various factors. The actual lives of the assets are re-assessed on a periodic basis and may vary depending on the standard of the asset. |
Provisions and accruals |
Management bases its judgements on the circumstances relating to each specific event and upon currently available information. However, given the inherent difficulties in the estimation of liabilities in these areas, it cannot be guaranteed that additional costs will not be incurred beyond the amounts accrued. |
Revenue |
Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue is recognised at the point of sale. |
Other income |
Rental income arising from leases is accounted for on a straight line basis over the lease term. |
Goodwill |
Goodwill is an amount paid in connection with the acquisition of shops. |
Goodwill has been fully amortised over three years with a full year charged in the period of acquisition. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Property, plant and equipment |
Freehold property | - |
Improvements to property | - |
Plant and Machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
If there is an indication that there has been a significant change in depreciation rate or residual value of an asset, the depreciation of that asset is revised prospectively to reflect the new expectations. |
Freehold land is not depreciated. |
Cost comprises the purchase price of the asset and expenditure directly attributable to the acquisition of the item. |
A fixed asset is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. 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 the income statement. |
Impairment of fixed assets |
The company performs impairment testing where there are any indicators of impairment. Impairment is calculated as the difference between the carrying value and the recoverable value of the asset. Recoverable value is the higher of net realisable value and estimated value in use at the date the impairment loss is recognised. Value in use represents the present value of expected future discounted cash flows. If incurred, impairment is recognised immediately in the income statement. |
Where an impairment loss subsequently reverses, the carrying value of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying value does not exceed the carrying value that would have been determined if no impairment loss had been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately as a credit to the income statement. |
Investments |
Investments are shown at fair value and are not re-valued where valuation is below trivial. |
Inventories |
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Employee benefits |
The company provides a range of benefits to employees, including paid holiday arrangements and defined contribution pension plans. |
Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received. |
Grant income |
Grant income is recognised when the grant is awarded and the amount can be measured reliably. For any grant income that does not run co-terminus with the accounting period, the income relating to future periods will be deferred |
Capital grants received are deferred and released over the life of the assets to which they relate. |
Hire purchase and lease commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. |
Those held under hire purchase contracts are depreciated over their estimated useful lives. |
The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. |
Debtors |
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. |
Cash at bank and in hand |
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. |
Creditors and provisions |
Creditors and provisions are recognised where the company has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due. |
Financial instruments |
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
3. | EMPLOYEES AND DIRECTORS |
The average monthly number of employees during the year was as follows: |
2023 | 2022 |
All categories | 294 | 251 |
The average monthly number of employees on a full time equivalent basis was as follows: |
2023 | 2022 |
All categories | 212 | 186 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
Government grants |
During the year the company received nil (2022: £58k) in government and Council support in relation to the ongoing pandemic.The £58k in 2022 is included within sundry receipts. |
There are no unfulfilled conditions attached to the above grants received. |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
HMRC interest |
Hire purchase |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Under provision in prior year | - | 28,274 |
Total current tax |
Deferred tax |
Tax on profit |
UK corporation tax has been charged at 23.50% . |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Deferred tax | 26,872 | 19,492 |
Adjustments to tax charge in respect of previous period | - | 28,274 |
Corporation tax adjustment for interest payable for late corporation tax. | - | 155 |
Total tax charge | 481,429 | 428,699 |
** | TAX CHARGE FOR CURRENT YEAR ON CLIENT SCREEN OF | 481,429 |
DOES NOT AGREE TO AMOUNT PER TB OF | 481,795 |
7. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Final |
Interim |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
9. | PROPERTY, PLANT AND EQUIPMENT |
Improvements |
Freehold | to | Plant and |
property | property | Machinery |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
9. | PROPERTY, PLANT AND EQUIPMENT - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Fixtures |
Plant and | and | Motor |
Machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Transfer to ownership | (83,886 | ) | (3,606 | ) | (32,398 | ) | (119,890 | ) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Transfer to ownership | (25,938 | ) | (14,141 | ) | (16,159 | ) | (56,238 | ) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
10. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
11. | INVENTORIES |
2023 | 2022 |
£ | £ |
Raw materials |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
VAT |
Prepayments |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 15) |
Trade creditors |
Corporation tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 15) |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Hire purchase contracts | 43,999 | 108,731 |
Hire purchase balances are secured on the assets to which they relate. |
The company's banker Lloyds holds the following security: - |
An unlimited debenture dated 28/04/2011 incorporating a fixed and floating charge. |
17. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 474,233 | 447,361 |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
17. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Charge to Statement of Comprehensive Income during year |
Balance at 31 December 2023 |
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following analysis is the analysis of the deferred tax balances (after offset) for financial reporting purposes: |
2023 | 2022 |
Balances: | £ | £ |
ACAs | 474,233 | 447,361 |
Other timing differences | - | - |
474,233 | 447,361 |
18. | ACCRUALS AND DEFERRED INCOME |
2023 | 2022 |
£ | £ |
Accruals and deferred income | - | 2,304 |
Deferred government grants | 27,164 | 44,307 |
The deferred grants relate to fixed assets. Grants are released over the useful economic lives of the fixed assets. At the start of the year the grant amount was £44,307. The total amount of grants released during the year was £17,143 (2022: £17,143). |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 850 | 850 |
Each share is entitled to: |
- One vote in any circumstances; |
- Pari Passu to dividend or any other distribution; and |
- Full participation in capital distributions. |
20. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 January 2023 | 5,605,884 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 December 2023 | 5,679,760 |
Called up share capital - represents the nominal value of shares that have been issued. |
Capital redemption reserves - represents payments to acquire own shares. |
Retained earnings - include all current and prior period retained profits and losses. |
DAVID JENKINS LIMITED (REGISTERED NUMBER: 00401414) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
21. | RELATED PARTY DISCLOSURES |
The company also made pension contributions of £100,000 (2022: £60,000) to the spouses of the directors. |
22. | POST BALANCE SHEET EVENTS |
As noted in the director's report, David Jenkins, a director, sadly passed away suddenly in February 2024 after 34 years of service to the company. Appropriate changes to the company's management structures have been made to ensure that the business continues to operate to the high standards previously set. |
23. | ULTIMATE CONTROLLING PARTY |
The directors have ultimate control of the company due to their 100% shareholding. |