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COMPANY REGISTRATION NUMBER: 00931323
J & J Ormerod Plc
Financial Statements
For the Year Ended
29 February 2024
J & J Ormerod Plc
Financial Statements
Year Ended 29 February 2024
Contents
Pages
Officers and Professional Advisers
1
Strategic Report
2 to 5
Directors' Report
6 to 9
Independent Auditor's Report to the Members
10 to 13
Statement of Comprehensive Income
14
Statement of Financial Position
15
Statement of Changes in Equity
16
Notes to the Financial Statements
17 to 29
J & J Ormerod Plc
Officers and Professional Advisers
The Board of Directors
L. Greenhalgh
S.E. Greenhalgh
S.G. Ashton
G. Burke
R. Myers
J.R. Thelwell
Registered Office
Avalon House
Bacup
Lancashire
OL13 0EA
Auditor
Beever and Struthers
Chartered accountants & statutory auditor
The Beehive
Lions Drive
Shadsworth Business Park
Blackburn
BB1 2QS
Bankers
National Westminster Bank Plc
5th Floor
1 Spinningfield Square
Manchester
M3 3AP
Solicitors
Forbes Solicitors
Rutherford House
4 Wellington Street (St. Johns)
Blackburn
BB1 8DD
J & J Ormerod Plc
Strategic Report
Year Ended 29 February 2024
Given the Economic backdrop the company are satisfied with the results in these accounts. During the course of the year ending 29 February 24, JJO, the home improvement sector and the economy in general faced trading conditions arguably more severe than those experienced during the Global financial crisis of 2007-2008. A combination of the highest interest rates for a generation, galloping inflation and soaring energy prices squeezed household budgets creating what was dubbed by the media as the cost-of-living crisis. As disposable income was squeezed, elective purchases of big-ticket home improvement items were on very few household shopping lists and much demand had been dragged forward by the boom in projects caused by Covid. As with previous economic downturns the company has adapted our business model to cope with the downturn in the market, in 2008 the Bathroom furniture division was launched. This is now a key part of the overall business contributing significantly to turnover and profit. In late 2022 as the storm clouds gathered the company began to establish a contracts division to provide a supply and installation service to regional builders. An experienced management team was recruited which has enabled the project to quickly gain transaction with existing and new contacts, taking advantage of the economies of scale enjoyed by JJO in order to generate first year revenues of £5 million. Part of this development was the creation of a dedicated assembly area which is now building over 50 kitchens per week. With new housing starts very much at the top of the agenda for the new Government we are ready to take full advantage of all opportunities as they develop. The creation of this arm of the business has meant that the impact of the difficult market conditions on our numbers has been lessened especially when compared to various peers against whom we benchmark. Turnover is down by approximately 6%, whilst stock turnover has improved slightly to 5.2 from 5.1. Creditor days are improved at 45 where previously they were 46. This is partly due to the fact that we have negotiated settlement discount for early payment with a number of key suppliers whom we pay in 14 days. The current ratio remains very health at over 2, despite a high value loan notes related to the EOT transaction being redeemed during the year . Whist gross margin has dropped from 27.9% to 22.6% this is largely due to fixed costs being difficult to unravel. During the course of the year the company redeemed loan notes in respect of the EOT transaction totalling £1.47m, despite this the cash position remains healthy at just under £1m. There has been significant investment in a new trade showroom at our newly developed collection centre, Marshall House. This facility is over 8000 ft2 of dedicated display space, has proved to be a big attraction to customers old and new enabling us to showcase new products and trends. Whilst highlighting our other continued investments in plant, machinery and infrastructure, to keep us at the forefront of UK manufacturing. We are continuing with our green journey , working closely with the Carbon trust to develop a carbon calculator, ensuring that our long-established green ideals continue to flourish and grow. Our highly automated factories are heated by biomass fuel created from the wood waste we produce and largely powered by solar installations. The market conditions are still far from the boom of 2022, but the key economic indicators are improving, inflation is back within the Bank of England target levels , interest rates are at last heading in the right direction and employment levels remain high. As the economy turns we are poised to take advantage of any upturn in our traditional markets whilst the addition of contract will ensure further profitable growth for JJO. Indeed management accounts for the first quarter of the new year show a a return to profitability. During the year and post year end certain bank borrowing related targets were not met, the bank has been fully supportive of the company and revised bank covenants have now been agreed.
The company uses various financial instruments. These include loans, cash, equity instruments, preference shares and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The existence of these finance instruments exposes the company to a number of financial risks which are described in more detail below. Market risk Market risk encompasses three types of risk, being currency risk, fair value interest rate risk and liquidity risk. The company's policies for managing fair value interest rate risk are considered along with those for managing cash flow interest rate risk and are set out in the subsection entitled 'interest rate risk' below. Currency risk The company is exposed to transaction foreign exchange risk. Transaction exposures, including those associated with forecast transactions, are hedged when known, principally using forward currency contracts. Whilst the aim is to achieve an economic hedge, the company does not adopt an accounting policy of hedge accounting for these financial statements. A number of the company's purchases are from suppliers in Europe. These purchases are invoiced in Euros. The company uses forward currency contracts to minimise the risk associated with that exposure. 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. Management actively manage cash to ensure that there is sufficient funds to meet business requirements. Interest rate risk The company finances its operations through a mixture of retained profits, bank borrowings and preference shares. The company's exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating facilities. The interest rate exposure to the financial assets and liabilities of the company at 29 February 2024 is shown below. Fixed rate - bank loans, finance leases and preference shares Floating rate - Cash and directors' loans Zero rate - Trade debtors and trade creditors Credit risk The company's principal financial assets are cash and trade debtors. The credit risk associated with cash is limited as the counter parties have high credit ratings assigned by international credit-rating agencies. The principal credit risk arises therefore from its trade debtors. In order to manage credit risk, the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed by the credit controller on a regular basis in conduction with debt ageing and collection history. The company also has credit insurance to further minimise the risk.
STATEMENT BY THE DIRECTORS IN PERFORMANCE OF THEIR STATUTORY DUTIES IN ACCORDANCE WITH S172(1) COMPANIES ACT 2006 The revised UK Corporate Governance Code ('2018 Code') was published in July 2018 and applies to accounting periods beginning on or after January 1, 2019. The Companies (Miscellaneous Reporting) Regulations 2018 ('2018 MRR') require Directors to explain how they considered the interests of key stakeholders and the broader matters set out in section 172(1) (A) to (F) of the Companies Act 2006 ('S172') when performing their duty to promote the success of the Company under S172. This includes considering the interest of other stakeholders which will have an impact on the long-term success of the company. The Board welcomes the direction of the UK Financial Reporting Council (the 'FRC'). This S172 statement explains how J & J Ormerod Plc ("JJO") Directors: - have engaged with employees, suppliers, customers and others; and - have had regard to employee interests, the need to foster the company's business relationships with suppliers, customers and other, and the effect of that regards, including on the principal decisions taken by the company during the financial year. The S172 statement focuses on matters of strategic importance to JJO, and the level of information disclosed is consistent with the size and the complexity of the business. General confirmation of Directors' duties When making decisions, each Director ensures that he/she acts in the way he/she considers, in good faith, would most likely promote the Company's success for the benefit of its members as a whole, and in doing so have regard (among other matters) to: S172(1) (A) "The likely consequences of any decision in the long term" The board of JJO always considers the short, medium and long-term impact of strategic decisions taken by the company. Where possible these decisions are taken in light of structural changes to national and international markets, shifts in the economy and wider social trends. For example JJO have long followed a policy of waste minimalization and energy efficiency, winning nationally recognised awards in these areas, such as in 2011 we were National Runner up in the EEF future manufacturing awards in the energy efficiency category whilst in 2017 we were the winner of the North West green heroes award in the same category, which has in turn developed a culture of sustainability in the business. S172(1) (B) "The interests of the company's employees" JJO established a formal framework for employee communication over 10 years ago. The Works committee is made up of representatives of each department of the business and they meet on a bi-monthly basis where they are able to bring concerns and questions to Directors of the company. On at least two occasions per year this will be the Managing Director. The Works committee addresses all areas of concern for staff members such as training, working conditions and career development. During the negotiations around the 2019 salary review the committee highlighted concerns of staff around the length of the working week. As a result of this the working work was reduced by 3 hours per week, with no loss of earnings and productivity was maintained at previous levels. We also operate a 'Manager's Forum' where management and supervisory staff share best practice and explore ways to enhance operations. In 2010 JJO introduced an 'Employee charter' which clearly laid out the principals and standards expected by the company for interactions between employees. The key message was one of mutual respect. The Directors are all long-term employees of the business who operate an open door policy to any staff issues. The company understands that its key asset is the workforce who individually and collective drive the business forward. To ensure that this is perpetuated, the company provides structured training and rewards to all engaged staff. On 2nd March 2021, the shareholders sold 67% of the shares in the holding company, JJO Holdings Limited, to an Employee Ownership Trust (EOT). Whilst the first duty of the EOT is to operate in the commericial interests of JJO, the second imperative is to act in the interests of the employees. To this end we have appointed an EOT steering committee which shadows the decisions made by the board of directors. The trustees are also consulted about decisions of major significance. S172(1) (C) "The need to foster the company's business relationships with suppliers, customers and others" JJO prides itself on the longevity of relationships with suppliers and customers. We have been dealing with our main supplier of painted and timber doors in Italy for over 40 years, other main suppliers have been trading with the business for decades. With these principal suppliers we settle accounts within 14 days of receiving goods, in exchange for a payment discount. This generates a spirit of trust and cooperation. We enjoy similar long term and mutually productive relationships with customers, a a number of whom are second generation contacts. Relationships with customers are helped by regular visits from established and emphatic Area sales managers. A further advantage enjoyed by the business is that we make deliveries on our own fleet of trucks operated by our own drivers, who are proud to act as ambassadors for the business. JJO also enjoys long term relationships with its Bankers, having been with Nat West since they were the District Bank. We have traded with the same Insurance Broker for over 40 years. S172(1) (D) "The impact of the company's operations on the community and the environment" JJO has operated from its premises in Rossendale for over 150 years, that level of longevity generates a heritage and tradition that knits into the very fabric of the local community. As one of the larger employers in the area we feel a duty to lead by example in terms of best practice. In addition to employing multiple generations and members of the same families, we activity display our commitment to localism by placing orders with businesses in the area, be they builders or printers. We are also active in support of local good causes supporting Stacksteads Brass band, sponsoring Bacup Borough Football Club and donating to Rossendale Hospice. Our Managing Director has been a director of the East Lancashire Chamber of Commerce, Growth Lancashire Ltd and an active member of the Rossendale business leaders' forum. S172(1) (E) "The desirability of the company maintaining a reputation for high standards of business conduct" JJO uses the strength of its balance sheet to ensure that it exceeds government guidance on the prompt payment of invoices, ensuring that suppliers are treated fairly. In terms of product quality, the company has achieved the FIRA gold award for excellence in furniture quality and customer service. The business was also proud to reach the exacting standards required to attain ISO standards 9001 (Quality management), 14001 (Environmental management), ISO45001 (Health and Safety management) and 50001 (Energy management). S172(1) (F) "The need to act fairly as between members of the company" JJO is an employee-owned business; after weighing up all relevant factors, the directors consider which course of action best enables delivery of our strategy through the long-term, taking into consideration the impact on stakeholders. The intention of the directors is to operate the business in a responsible manner, operating within the high standards of business conduct required in line with all regulatory requirements, and good governance expected for a business such as ours, and in doing so, will contribute to the delivery of our strategic plan. Culture The culture of our company has evolved over many years of successfully building a business. Whilst it does embody traditional beliefs, such as delivering value for money and mutual respect, it is modern, inclusive and fit for 21st Century. We recognise that history is appreciated but the present and future are of greater significance. Stakeholder engagement (including employee engagement) The company operates a two-way system of information exchange for views, questions and best practice. Shopfloor workers are represented by the Works council, supervisory and management is represented by the Manager forum, whilst high level Management sit on the Executive committee. These bodies meet bi-monthly and the chair of each group also sits on another body to ensure continuity. We also operate a bi-monthly in house magazine 'JJO journal' which details developments small and large within the business, and this is circulated to employees, suppliers, customers and other stakeholders as appropriate. Principal decisions A.Adapting our business plan to suit a hard market With a heritage stretching back over 150 years JJO has adapted to massive changes across the economy and society. For example during the Global financial crisis of 2007-2008 we launched our bathroom division. Our reaction to the current economic situation is to create a contracts division which targets mid-size builders and developers. B.Maintain service levels, stock availability and Order fulfilment levels Clearly the temptation in a difficult market is to reduce stock and service levels, we take a completely different approach. Using our balance sheet strength and strong cash position JJO has ensured delivery frequency together with complete and right first time deliveries are constantly improving, thus removing the issue of various 'soft costs' such as dealing with incomplete and late orders.
This report was approved by the board of directors on 2 October 2024 and signed on behalf of the board by:
S.E. Greenhalgh Director
Registered office:
Avalon House
Bacup
Lancashire
OL13 0EA
J & J Ormerod Plc
Directors' Report
Year Ended 29 February 2024
The directors present their report and the financial statements of the company for the year ended 29 February 2024 .
Directors
The directors who served the company during the year were as follows:
L. Greenhalgh
S.E. Greenhalgh
S.G. Ashton
G. Burke
R. Myers
J.R. Thelwell
(Appointed 31 July 2023)
J. Pollitt
(Resigned 30 June 2023)
Dividends
Dividends of £ 51,960 (2023: £ 51,960 ) have been paid on the fixed 10% non redeemable preference shares. Under FRS102 this is classed as interest.
Greenhouse Gas Emissions and Energy Consumption
Methodologies for Energy and Emissions Calculations
The company uses a wireless monitoring system to analyse energy consumption. The energy used by the company in ( Kwh) in the year ended 29.02.24 compared to 28.02.23 is as follows :-
2024 % of turnover 2023 % of turnover
£ £ £
Electricity 294,331 1 324,967 1
CO2 59,788 70,498
Gas 716,182 2 633,165 2
CO2 131,432 125,565
Diesel (litres) 400,213 1 408,150 1
Total energy consumption 1,010,513 3 1,052,049 3
Total CO2 191,220 1 270,439 1
Principal Measures Taken to Increase Energy Efficiency
Energy efficiency measures taken include certification to ISO50001, installed 1200 energy saving regulator, installation of a wireless energy monitoring system, replacement dust extraction system with eco gates and variable speed motors and LED energy efficient lighting replacement programme implemented.
Employment of Disabled Persons
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person although due to the high level of manufacturing operations the number of opportunities are limited. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.
Employee Involvement
The directors recognise the benefits of developing excellent working relationships at all levels throughout the business. Employees are encouraged to develop their career with J & J Ormerod Plc and regular consultation takes place between the directors and employees via the medium of a company wide works council. Slavery and Human Trafficking Policy J & J Ormerod Plc is a designer, manufacturer and distributor of kitchen, bedroom and bathroom furniture that is committed to driving out acts of modern day slavery and human trafficking within its business and from within its supply chains, including sub-contractors. The company acknowledges responsibility to the Modern Slavery Act 2015 and will ensure transparency within the company and with suppliers of goods and services. As part of the company's due diligence processes into slavery and human trafficking the supplier approval process will incorporate a review of the controls undertaken by our suppliers. J & J Ormerod Plc will not support or deal with any business knowingly involved in slavery or human trafficking. The company's directors shall take responsibility for implementing this policy statement and its objectives and shall provide adequate resources and investment to ensure that slavery and human trafficking is not taking place within the company and, or within its supply chains. We expect the same high standards from all of our contractors, suppliers, as part of our due diligence processes, in the coming years we will include prohibitions against the use of forced, compulsory or trafficked labour, or anyone held in slavery or servitude, whether adults or children, and we expect that our suppliers will hold their own suppliers to the same high standards. A copy of this policy will be accessible electronically to all employees and any other interested parties. This policy takes into account, and supports the procedures and requirements documented within our Integrated Management System, which are compliant with the requirements of ISO 9001:2015, ISO 14001:2015, ISO 50001:2011 and Forest Stewardship Council (FSC). The implementation and operation of these management systems underlines our commitment to this policy. This policy is communicated to all levels of the company, and that it is annually reviewed by the directors to ensure its continuing suitability and relevance to the company's activities.
Disclosure of Information in the Strategic Report
The company has chosen to disclose certain information, including how the company fosters its business relationships with suppliers, customers and others, the future development opportunities for the company and financial instrument risk management policies in the strategic report rather than the directors report.
Directors' Responsibilities Statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments 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 financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 2 October 2024 and signed on behalf of the board by:
S.E. Greenhalgh Director
Registered office:
Avalon House
Bacup
Lancashire
OL13 0EA
J & J Ormerod Plc
Independent Auditor's Report to the Members of J & J Ormerod Plc
Year Ended 29 February 2024
Opinion
We have audited the financial statements of J & J Ormerod Plc (the 'company') for the year ended 29 February 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 29 February 2024 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 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
We have nothing to report to you in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
In our evaluation of the directors’ conclusions, we considered the inherent risks to the company’s business model, including the impact of Brexit, and analysed how these risks might impact the company’s financial resources and ability to continue to adopt the going concern basis of accounting for a period of twelve months from the date when the financial statements are authorised for use. Our evaluation concluded that these risks were not significant enough for us to perform additional audit procedures.
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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report 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 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: - 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 directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: To assist with identifying and assessing risks associated with material misstatements, including fraud and non compliance of laws and regulations, we carried out the following procedures; - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management; - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud. To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships; - tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and - investigated the rationale behind significant or unusual transactions. 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 auditor’s report. Use of Our Report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Suzanne Lomax BA FCA
(Senior Statutory Auditor)
For and on behalf of
Beever and Struthers
Chartered accountants & statutory auditor
The Beehive
Lions Drive
Shadsworth Business Park
Blackburn
BB1 2QS
2 October 2024
J & J Ormerod Plc
Statement of Comprehensive Income
Year Ended 29 February 2024
2024
2023
Note
£
£
Turnover
4
35,992,519
38,296,988
Cost of sales
( 27,846,983)
( 27,600,570)
-------------
-------------
Gross profit
8,145,536
10,696,418
Distribution costs
( 1,901,682)
( 1,879,489)
Administrative expenses
( 6,563,617)
( 6,428,362)
Other operating income
5
205,739
48,620
------------
-------------
Operating (loss)/profit
6
( 114,024)
2,437,187
Other interest receivable and similar income
10
42,316
11,039
Interest payable and similar expenses
11
( 354,269)
( 352,577)
------------
-------------
(Loss)/profit before taxation
( 425,977)
2,095,649
Tax on (loss)/profit
12
81,535
( 414,842)
---------
------------
(Loss)/profit for the financial year and total comprehensive income
( 344,442)
1,680,807
---------
------------
All the activities of the company are from continuing operations.
J & J Ormerod Plc
Statement of Financial Position
29 February 2024
2024
2023
Note
£
£
Fixed assets
Tangible assets
13
17,627,770
17,666,430
Investments
14
860,626
638,235
-------------
-------------
18,488,396
18,304,665
Current assets
Stocks
15
6,877,992
7,570,722
Debtors
16
6,359,443
6,047,477
Cash at bank and in hand
972,278
2,395,529
-------------
-------------
14,209,713
16,013,728
Creditors: amounts falling due within one year
17
( 6,678,679)
( 6,292,794)
-------------
-------------
Net current assets
7,531,034
9,720,934
-------------
-------------
Total assets less current liabilities
26,019,430
28,025,599
Creditors: amounts falling due after more than one year
18
( 6,421,299)
( 6,765,073)
Provisions
Taxation including deferred tax
20
( 1,423,041)
( 1,263,508)
-------------
-------------
Net assets
18,175,090
19,997,018
-------------
-------------
Capital and reserves
Called up share capital
23
254,694
254,694
Share premium account
24
12,600
12,600
Revaluation reserve
24
5,036,381
5,036,381
Capital redemption reserve
24
986
986
Profit and loss account
24
12,870,429
14,692,357
-------------
-------------
Shareholders funds
18,175,090
19,997,018
-------------
-------------
These financial statements were approved by the board of directors and authorised for issue on 2 October 2024 , and are signed on behalf of the board by:
S.E. Greenhalgh
Director
Company registration number: 00931323
J & J Ormerod Plc
Statement of Changes in Equity
Year Ended 29 February 2024
Called up share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss account
Total
£
£
£
£
£
£
At 1 March 2022
254,694
12,600
5,036,381
986
19,011,550
24,316,211
Profit for the year
1,680,807
1,680,807
---------
--------
------------
----
-------------
-------------
Total comprehensive income for the year
1,680,807
1,680,807
EOT contribution
( 6,000,000)
( 6,000,000)
---------
--------
------------
----
-------------
-------------
Total investments by and distributions to owners
( 6,000,000)
( 6,000,000)
At 28 February 2023
254,694
12,600
5,036,381
986
14,692,357
19,997,018
Loss for the year
( 344,442)
( 344,442)
---------
--------
------------
----
-------------
-------------
Total comprehensive income for the year
( 344,442)
( 344,442)
EOT contribution
( 1,477,486)
( 1,477,486)
----
----
----
----
------------
------------
Total investments by and distributions to owners
( 1,477,486)
( 1,477,486)
---------
--------
------------
----
-------------
-------------
At 29 February 2024
254,694
12,600
5,036,381
986
12,870,429
18,175,090
---------
--------
------------
----
-------------
-------------
J & J Ormerod Plc
Notes to the Financial Statements
Year Ended 29 February 2024
(continued)
1. General Information
J & J Ormerod Plc is a company limited by share capital incorporated in England. The address of its registered office is Avalon House, Bacup, Lancashire, OL13 0EA. The principal activity of the company during the year was the manufacture and wholesale of kitchens, bedrooms, bathrooms and associated products.
2. Statement of Compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting Policies
Basis of Preparation
The financial statements have been prepared on the historical cost basis, as modified by investment properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity. True and Fair Override At 29 February 2024 the company had missed targets in relation to its bank loan covenants. The bank waived this contravention post year end, they were unable to waive the noncompliance pre year end as they could not have been aware of the position. The Bank have confirmed that they would have supported the company in respect of the breach if they had been aware of the position at the year end, based on this the company has adopted a true and fair override and the loan has been disclosed in the financial statements reflecting the loan maturity profile as if no such breach had taken place.
Going Concern
During the year and post year end the bank covenants were contravened , the bank has been fully supportive of the company and revised bank covenants have now been agreed. Our forecasts show that the revised covenants will be met for a period of at least twelve months from the date of signing if these financial statements.
Disclosure Exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of JJO Holdings Limited which can be obtained from Companies House. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. (c) No disclosure has been given for the aggregate remuneration of key management personnel.
Judgements and Key Sources of Estimation Uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: - Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. - Investment properties are measured at fair value, with changes in fair value being recognised in the profit or loss. In determining this, the valuation is on an open market basis for existing use based on the overriding concept that fair value is the amount for which an asset can be exchanged between knowledgeable willing parties in an arm's length transaction. The Directors have estimated the market value at the year end by reviewing movements in local property indices. - Determination of whether leases entered into by the company as lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: - Determination of whether there are indicators of impairment of the company's tangible fixed assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. - Determination of recoverability of trade debtors. A specific provision is made against certain debts where in the opinion of the directors the debt is not fully recoverable. A provision of £75,471 (2023: £41,030) has been recognised against trade debtors. - Determination of whether a provision against stock is considered necessary. A provision of £423,744 (2023: £458,833) has been recognised against stock. - Determination of whether a provision against discounts allowed but not yet taken is considered necessary. A provision of £210,180 (2023: £215,336) has been recognised against trade debtors.
Revenue Recognition
Revenue from the sale of goods of wholesale kitchens, bedrooms, bathrooms and associated products is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income Tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating Leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible Assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property
-
2% reducing balance
Leasehold property
-
Over remaining lease term
Plant & machinery
-
10% - 33% reducing balance
Motor vehicles
-
25% reducing balance
Freehold land totalling £1,795,000 is not depreciated .
Investment Property
Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure.
Investment property is subsequently measured at fair value at each reporting date and any changes in fair value are recognised in profit or loss.
If a reliable measure of fair value is no longer available without undue cost or effort for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis.
Impairment of Fixed Assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance Leases and Hire Purchase Contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial Instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. The preference shares are classified as a financial liability and the dividend is treated as interest as both the dividend and redemption are compulsory.
Defined Contribution Plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
35,992,519
38,296,988
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company, over 99% of which is undertaken in the United Kingdom.
5. Other Operating Income
2024
2023
£
£
Rental income
72,491
41,323
Other operating income
133,248
7,297
---------
--------
205,739
48,620
---------
--------
6. Operating (Loss)/Profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
1,197,132
1,254,824
Gains on disposal of tangible assets
( 70,637)
( 155,328)
Fair value adjustments to investment property
( 222,391)
( 92,735)
Impairment of trade debtors
117,451
48,091
Operating lease rent
367,482
357,161
------------
------------
7. Auditor's Remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
45,000
46,700
--------
--------
Fees payable to the company's auditor and its associates for other services:
Taxation advisory services
9,000
21,000
--------
--------
8. Staff Costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
198
205
Distribution staff
71
68
Administrative staff
22
22
----
----
291
295
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
10,041,806
9,580,496
Social security costs
1,031,604
969,104
Other pension costs
337,021
300,155
-------------
-------------
11,410,431
10,849,755
-------------
-------------
9. Directors' Remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
909,213
1,029,012
Company contributions to defined contribution pension plans
9,874
15,664
---------
------------
919,087
1,044,676
---------
------------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
2
2
----
----
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
423,582
410,415
---------
---------
10. Other Interest Receivable and Similar Income
2024
2023
£
£
Interest on cash and cash equivalents
42,316
11,039
--------
--------
11. Interest Payable and Similar Expenses
2024
2023
£
£
Interest on banks loans and overdrafts
207,517
207,650
Interest on obligations under finance leases and hire purchase contracts
43,907
41,353
Dividends paid on shares classed as debt
51,960
51,960
Other interest payable and similar charges
50,885
51,614
---------
---------
354,269
352,577
---------
---------
12. Tax on (Loss)/Profit
Major components of tax (income)/expense
2024
2023
£
£
Current tax:
UK current tax (income)/expense
( 204,782)
323,985
Adjustments in respect of prior periods
( 36,286)
36,005
---------
---------
Total current tax
( 241,068)
359,990
---------
---------
Deferred tax:
Origination and reversal of timing differences
159,533
54,852
---------
---------
Tax on (loss)/profit
( 81,535)
414,842
---------
---------
Deferred tax comprises a current year charge of £159,533 (2023: £83,143), a prior year credit of £Nil (2023: £28,291).
Reconciliation of tax (income)/expense
The tax assessed on the (loss)/profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 24.49 % (2023: 19 %).
2024
2023
£
£
(Loss)/profit on ordinary activities before taxation
( 425,977)
2,095,649
---------
------------
(Loss)/profit on ordinary activities by rate of tax
( 104,322)
398,173
Adjustment to tax charge in respect of prior periods
( 36,286)
36,005
Effect of expenses not deductible for tax purposes
16,041
31,712
Effect of capital allowances and depreciation
38,325
( 51,048)
Effect of revenue exempt from tax
( 54,464)
Effect of different UK tax rates on some earnings
59,171
---------
------------
Tax on (loss)/profit
( 81,535)
414,842
---------
------------
Losses incurred during the year have been carried back to prior periods. Due to the change in UK corporation tax rate these losses have been carried back at 19% rather than 24.49% which is the current year corporation tax rate. The effect of this is included in the £59,171 reconciling item above. .
13. Tangible Assets
Freehold property
Long leasehold property
Plant and machinery
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 March 2023
12,267,754
190,000
17,290,015
3,829,444
33,577,213
Additions
507,718
809,582
1,317,300
Disposals
( 286,746)
( 688,437)
( 975,183)
-------------
---------
-------------
------------
-------------
At 29 February 2024
12,267,754
190,000
17,510,987
3,950,589
33,919,330
-------------
---------
-------------
------------
-------------
Depreciation
At 1 March 2023
1,756,606
38,564
11,757,819
2,357,794
15,910,783
Charge for the year
174,323
3,029
625,401
394,379
1,197,132
Disposals
( 241,721)
( 574,634)
( 816,355)
-------------
---------
-------------
------------
-------------
At 29 February 2024
1,930,929
41,593
12,141,499
2,177,539
16,291,560
-------------
---------
-------------
------------
-------------
Carrying amount
At 29 February 2024
10,336,825
148,407
5,369,488
1,773,050
17,627,770
-------------
---------
-------------
------------
-------------
At 28 February 2023
10,511,148
151,436
5,532,196
1,471,650
17,666,430
-------------
---------
-------------
------------
-------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
Motor vehicles
Total
£
£
£
At 29 February 2024
1,188,925
1,125,600
2,314,525
------------
------------
------------
At 28 February 2023
1,328,245
957,609
2,285,854
------------
------------
------------
14. Investments
Investment properties
£
Cost
At 1 March 2023
638,235
Revaluations
222,391
---------
At 29 February 2024
860,626
---------
Impairment
At 1 March 2023 and 29 February 2024
---------
Carrying amount
At 29 February 2024
860,626
---------
At 28 February 2023
638,235
---------
Investment properties are measured at fair value, with changes in fair value being recognised in the profit or loss. The value as at 29 February 2024 has been determined by the directors, which has resulted in a surplus arising in the year. Details on the assumptions made and the key sources of estimation uncertainty are given in note 3.
The comparable historical cost of investment properties at 29 February 2024 was £361,088 (2023: £361,088) and aggregate impairment of £Nil (2023: £Nil).
15. Stocks
2024
2023
£
£
Work in progress
316,849
357,071
Finished goods and goods for resale
6,561,143
7,213,651
------------
------------
6,877,992
7,570,722
------------
------------
16. Debtors
2024
2023
£
£
Trade debtors
4,639,047
4,472,898
Prepayments and accrued income
1,302,100
1,506,480
Corporation tax repayable
241,068
Other debtors
177,228
68,099
------------
------------
6,359,443
6,047,477
------------
------------
17. Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
540,000
517,786
Trade creditors
3,519,764
3,592,937
Amounts owed to group undertakings
36,385
36,385
Accruals and deferred income
875,419
529,305
Corporation tax
139,205
Social security and other taxes
275,366
419,499
Obligations under finance leases and hire purchase contracts
813,286
643,835
Other creditors
618,459
413,842
------------
------------
6,678,679
6,292,794
------------
------------
Net obligations under finance lease and hire purchase contracts are secured on the assets to which they relate.
The bank loan is secured by way of fixed charges and negative pledges against the company's Freehold property alongside a cross guarantee from other group entities, JJO Group Limited and JJO Holdings Limited.
18. Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
4,485,018
5,025,010
Shares classed as financial liabilities
519,600
519,600
Obligations under finance leases and hire purchase contracts
802,311
606,093
Director loan accounts
614,370
614,370
------------
------------
6,421,299
6,765,073
------------
------------
Net obligations under finance lease and hire purchase contracts are secured on the assets to which they relate.
The bank loan is secured by way of fixed charges and negative pledges against the company's Freehold property alongside a cross guarantee from other group entities, JJO Group Limited and JJO Holdings Limited. The bank loan incurs a fixed interest rate of 3.91%.
Included within creditors: amounts falling due after more than one year is an amount of £2,109,988 (2023: £2,732,122) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
19. Finance Leases and Hire Purchase Contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
813,286
643,835
Later than 1 year and not later than 5 years
802,311
606,093
------------
------------
1,615,597
1,249,928
------------
------------
20. Provisions
Deferred tax (note 21)
£
At 1 March 2023
1,263,508
Additions
159,533
------------
At 29 February 2024
1,423,041
------------
21. Deferred Tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 20)
1,423,041
1,263,508
------------
------------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
1,427,637
1,208,656
Other timing differences
( 4,596)
54,852
------------
------------
1,423,041
1,263,508
------------
------------
22. Employee Benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 337,021 (2023: £ 300,155 ).
At the balance sheet date £ 45,068 (2023: £ 52,707 ) is outstanding which is included within other creditors.
23. Called Up Share Capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Amounts presented in equity:
Ordinary shares of £ 1 each
254,694
254,694
254,694
254,694
---------
---------
---------
---------
Amounts presented in liabilities:
Fixed 10% non-redeemable cumulative preference shares of £ 1 each
519,600
519,600
519,600
519,600
---------
---------
---------
---------
The Fixed 10% Non Redeemable Cumulative Preference Shares entitle the holders to a Preference dividend to be paid monthly in arrears. On liquidation or otherwise, the holders are entitled to be paid, out of the surplus assets of the company remaining after payment of its liabilities, the capital paid up on the shares together with a sum equal to any accruals or arrears of dividend. The holders are entitled to receive notice of general meetings but are not entitled to attend such meetings and to vote upon any resolution unless the dividend is more than twelve months in arrears on the date of the notice convening the meeting or the resolution is for winding up of the company or the resolution is one which in any way varies the rights or restrictions attaching to the shares. In such circumstances, each share carries one vote. These shares are classed as liabilities in accordance with FRS102.
24. Reserves
Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses. Included within the profit and loss account is £461,626 of non-distributable reserves.
25. Capital Commitments
Capital expenditure contracted for but not provided for in the financial statements is as follows:
2024
2023
£
£
Tangible assets
127,375
---------
----
26. Operating Leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
50,801
275,982
Later than 1 year and not later than 5 years
67,500
241,853
---------
---------
118,301
517,835
---------
---------
27. Directors' Advances, Credits and Guarantees
The credit balances on the directors' current accounts at the balance sheet date were £363,145 (2023: £363,145) to Mr L. Greenhalgh , £153,901 (2023: £153,901) to Mr S.E. Greenhalgh , and £97,324 (2023: £97,324) to Mrs G. Burke . Loan repayments were made during the year. Gross loan interest of £29,055 (2023: £29,355), £12,314 (2023: £12,614) and £7,787 (2023: £8,087) was charged respectively during the year.
28. Related Party Transactions
The company is a wholly owned subsidiary of JJO Holdings Limited, the consolidated accounts of which are publicly available. Accordingly, the company has taken advantage of the exemption in FRS 102 Section 33.1A from disclosing transactions with members of the group. Mr S.G. Ashton is a director of SA Kitchens & Bedrooms Limited, a customer of the company. During the year the company sold goods totalling £39,163 (2023: £80,065) to and purchased goods totalling £3,135 (2023: £3,136) from SA Kitchens & Bedrooms Limited. At 29 February 2024 the company was owed £8,562 (2023: £9,264) by SA Kitchens & Bedrooms Limited and owed £443 (2023: £407) to SA Kitchens & Bedrooms Limited which are included within debtors and creditors respectively. The J & J Ormerod Plc Retirement Benefit Scheme, established for the benefit of certain company directors, owns certain properties occupied by the company. During the year, the company was charged £241,300 (2023: £241,300) in respect of independently assessed rent. The company also occupies a property owned by a Self Invested Personal Pension Scheme established for the benefit of Mrs E. Greenhalgh, mother of three of the directors. During the year, the company was charged £55,000 (2023: £55,000) for rent. Miss E. Greenhalgh made a loan to the company of which £284,123 (2023: £284,123) was still outstanding at 29 February 2024. Gross interest of £nil (2023: £nil) was charged to the company during the year.
29. Controlling Party
The company is a wholly owned subsidiary of JJO Group Limited which in turn is a wholly owned subsidiary of JJO Holdings Limited. The ultimate controlling party was the Allan Greenhalgh Children's Settlement 2012, which was the majority shareholder of JJO Holdings Limited. On 2 March 2021 the J & J Ormerod Employee Ownership Trust acquired 67% of the shares in the ultimate parent company, JJO Holdings Limited. The Employee Ownership Trust is controlled by its trustee, J & J Ormerod (EOT) Limited.