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Registered number: 02432592










JAMES WALKER & CO. LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

 
JAMES WALKER & CO. LIMITED
 

CONTENTS



Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditors' report
7 - 10
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
13
Notes to the financial statements
14 - 27


 
JAMES WALKER & CO. LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Business review
 
Sales were £44,883,000, 6.2% up on the previous year, growth reflecting an increase in activity in Oil & Gas markets.  
For the financial year ended 31 March 2024 James Walker & Co Limited (“the Company”) recorded a profit after tax of £1,444,000 (2023: profit of £2,179,000).
The Company has maintained its investment in working capital associated with stock to mitigate against continuing supply chain challenges and was impacted by inflationary pressure on raw materials and utilities as a consequence of the geo-political impact of the Ukrainian crisis.
The company continues to invest in plant, equipment and facilities. The capital investment plan aims to broaden the businesses capabilities, improve efficiency and enhance health, safety and environmental performance.

Financial key performance indicators
 
The following key performance indicators are measured and reviewed on a regular basis and enable the business to set and communicate its performance targets and monitor its performance against these targets:
Revenue growth - annual growth rate of revenue: 6.2% (2023: 24.1%).
Operating margin - operating profit before special items as a percentage of revenue: 5.1% (2023: 5.2%).
Average working capital levels - inventory plus trade and other receivables less trade and other payables as a percentage of revenue: 26.4% (2023: 21.8%).
Shareholders' funds: £27,963,000 (2023: £26,488,000).
During the year the Company spent £3,982,000 on capital expenditure (2023: £2,179,000).

Other key performance indicators
 
The following additional key performance indicators are measured and reviewed on a regular basis by the Directors to provide visibility of the Company's performance from a non-financial information perspective.
Customer service
Progress continues to be made in the areas that were identified as priorities from previous Customer Satisfaction Survey, particularly in relating to problem handling, and making the Company easier to do business with by providing information and decision-making tools available at the point of enquiry and ordering to improve quotation response times. Customer service levels, measured by OTIF, exhibited an upward trend during the year, this was a clear priority for all areas of the business aligned to the JW Group strategy and driven by management through a set of SMART KPIs.
Employee matters
Absenteeism levels were on average 3.1% (2023: 3.5%).
Page 1

 
JAMES WALKER & CO. LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Principal risks and uncertainties
 
Product innovation 
The Company supplies products which include materials that are subject to regulations and in some cases customer certifications. Specifically, there is a risk around poly and perfluoroalkyl substances (PFAS) and if these materials are prohibited or withdrawn this could stop the supply of certain products into the market place. We are identifying materials that could be at risk as well as researching and developing alternative solutions.
Input costs
Some of the Company’s input costs, including labour and materials, have been increasing at high rates. We aim to mitigate this through operational efficiencies, cost saving initiatives and passing residual cost increases on to customers.
Keystone programme
The Company plans to go live on its new ERP system, with minimal business disruption. The project leadership aims to achieve this through rigorous project management controls and system testing.  Should the risk materialise, sales could be disrupted.     
                                                                                                           
Supply chain disruption 
Disruption of supply of raw and semi-finished materials continued to improve during the year, partly due to a number of measures which the Company has implemented. We continue to communicate closely with our suppliers, review critical raw material needs and monitor logistics partners.
Climate change
A warming, changing climate presents both medium and long-term risks and opportunities for the Company. The transition towards net zero, including policies to encourage decarbonisation, will, in future, require us to provide additional support and products to customers as they shift away from fossil fuel based operation. Customers’ environmental expectations of their supply chains are expected to become more demanding.  The Company is responding to the UN Sustainable Development Goals and is developing projects to reduce our energy intensity through better energy management, more efficient equipment and investment in sustainable energy sources.

Page 2

 
JAMES WALKER & CO. LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

COMPANIES ACT 2006 - SECTION 172

The Board places continued and serious emphasis upon its duties towards the full range of stakeholders in the Company. Such duties are conducted in accordance with Section 172, and in a manner to best promote the success of the Company for the benefit of these stakeholders. The Board seeks to conduct the Company’s business to best serve its customers, staff, shareholders and business partners.
We set out below how the Board and Directors have had regard to these matters when performing their duties under Section 172.
Employees
Employment - management of the Company’s activities to ensure it can continue to provide employment
opportunities to current staff and future employees. 
Health and Safety – detailed Health and Safety data is regularly reviewed, and appropriate actions are taken to prevent future occurrences and to promote a strong culture of safety.
Mental health – support and training is provided where appropriate. 
Engagement – the Company’s parent undertaking, James Walker Group Limited, conducts regular employee surveys with follow-on actions being implemented as appropriate. Additionally, other forms of interaction are maintained, including employee forums, newsletters and broadcasts.

Suppliers
Relationships - Managing the business to ensure suppliers are paid in line with agreed terms and to foster long term mutually productive relationships.

Customers
Customer Experience - Customer Experience data regularly reviewed with actions for improvement implemented as appropriate.
Relationships - Managing the business to ensure continuity and stability of supply of products to customers.

Communities and Environment
Employment – management of the business to ensure that it can continue to provide employment opportunities within the communities in which it operates.
As a participant in the British Plastics Federation’s Climate Change Agreement, the business is committed to ongoing reductions in its emissions within specified target periods, thereby reducing its overall environmental impact.

Shareholders
Managing the business to ensure it provides income through dividends to its shareholder, whilst operating in a responsible manner, having due regard for other stakeholder groups.
 
Page 3

 
JAMES WALKER & CO. LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024


ENVIRONMENTAL REPORTING
Large UK companies are required to report their UK levels of greenhouse gas (“GHG”) emissions in their annual report and accounts. This obligation is for Scope 1 (direct) and Scope 2 (indirect) emissions, only to the extent that emissions are the responsibility of the Company. Direct emissions originate from combustion of natural gas and transportation, whilst indirect emissions are based on purchased electricity.
Emissions are calculated following the UK Government GHG Conversion Factors for Company Reporting 2019 and the UK Government Environmental Reporting Guidelines. An intensity ratio of carbon dioxide equivalent (“CO2e”) per £1m revenue has been selected which will allow a comparison of performance over time and with other similar types of businesses.
James Walker & Co Ltd are committed to reducing the impact that manufacturing processes have on the environment and in FY24 it was pleasing to note that that gross emissions declined 4.3% (2023 8.5% decline) despite sales increasing 6.3% over prior year.
JW&Co Gross Emissions

2024
2023
   Tonnes CO2e
   Tonnes CO2e
Source of emissions

Direct emissions (Scope 1)


 
     Gas

701

858
 
     Transport

40

33
 
Indirect emissions (Scope 2)


 
Electricity

1271

1,211
 
Global emissions

2,012

2,102
 


 
Global sales (£m)

45

42
 
Tonnes CO2e per £1m revenue


44.8

49.8
 
Energy use

Gas (kWh)

3,877,621

4,700,981
 
Transport (litres)

19,077

15,120
 
Electricity purchased (kWh)

6,174,798

6,263,872
 


This report was approved by the Board of Directors on 11 July 2024 and signed on its behalf.





D Jackson
Director
Page 4

 
JAMES WALKER & CO. LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The Directors present their report and the financial statements for the year ended 31 March 2024.

Directors' responsibilities statement

The Directors are responsible for preparing the Strategic report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under Company law the Directors must not approve the financial statements unless satisfied that they a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the Directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £1,444,000 (2023: £2,179,000).
The Directors do not recommend the payment of a dividend (2023: £NIL).

Directors

The Directors who served during the year were:

I Bell 
M Brook 
D Neeb 
G Teasdale 
E D Surman 
D Jackson 

Future prospects

The Directors are confident that the Company can continue as a going concern. The Board feels that the Company is in a sound financial position to maximise any opportunities throughout the year as it actively seeks to expand through organic growth. 

Page 5

 
JAMES WALKER & CO. LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Research and development activities

To ensure the Company keeps pace with the demanding changes in industry, its engineers and technologists have placed emphasis upon the need for research and development into materials and products.

Engagement with employees

Effective communication with employees is of vital importance and the Company has established procedures to provide information to, and consult with, employees and union representatives on financial and other matters that affect them.

Disabled employees

It is the practice of the Company to facilitate the employment of disabled persons and to provide, whenever possible, opportunities for training, career development and promotion. Where employees become disabled whilst in service, every effort is made to rehabilitate them to their former jobs or some other suitable alternative and provide appropriate training and specialist advice.

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsHaysmacintyre LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the Board of Directors on 11 July 2024 and signed on its behalf.
 





D Jackson
Director

Page 6

 
JAMES WALKER & CO. LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JAMES WALKER & CO. LIMITED
 

Opinion


We have audited the financial statements of James Walker & Co. Limited (the 'Company') for the year ended 31 March 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 March 2024 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Other information


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


We have nothing to report in this regard.


Page 7

 
JAMES WALKER & CO. LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JAMES WALKER & CO. LIMITED (CONTINUED)

Opinion 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 set out on page 5, 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.


Page 8

 
JAMES WALKER & CO. LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JAMES WALKER & CO. LIMITED (CONTINUED)

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 an Auditors' 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:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud.
Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements for the manufacturing businesses such as health and safety and trade regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, income tax, payroll tax and sales tax.
 
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included: 
• Inspecting correspondence with regulators and tax authorities;
• Discussion with management including consideration of known or suspected instances of        non-compliance with laws and regulations and fraud;

• Evaluating managements’ controls designed to prevent and detect irregularities;
• Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
• Challenging assumptions and judgements made by management in their critical accounting estimates.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' report.


Page 9

 
JAMES WALKER & CO. LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JAMES WALKER & CO. LIMITED (CONTINUED)

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 2006Our 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 Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Christopher Cork (Senior statutory auditor)
for and on behalf of
Haysmacintyre LLP
Statutory Auditors
10 Queen Street Place
London
EC4R 1AG

11 July 2024
Page 10

 
JAMES WALKER & CO. LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£000
£000

  

Turnover
 3 
44,883
42,251

Change in stocks of finished goods and work in progress
  
434
407

Other operating income
 4 
707
382

Raw materials and consumables
  
(13,154)
(12,851)

Other external charges
  
(11,159)
(9,852)

Staff costs
  
(17,427)
(16,179)

Depreciation and amortisation
  
(1,996)
(1,968)

Operating profit
 5 
2,288
2,190

Interest receivable and similar income
 9 
186
98

Profit before tax
  
2,474
2,288

Tax on profit
 10 
(1,030)
(109)

Profit for the financial year
  
1,444
2,179

Other comprehensive income for the year
  

Total comprehensive income for the year
  
1,444
2,179

Page 11

 
JAMES WALKER & CO. LIMITED
REGISTERED NUMBER:02432592

STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024

2024
2023
Note
£000
£000

Fixed assets
  

Tangible assets
 11 
10,627
8,699

  
10,627
8,699

Current assets
  

Stocks
 12 
6,821
6,232

Debtors: amounts falling due after more than one year
 13 
-
356

Debtors: amounts falling due within one year
 13 
18,338
19,009

Cash at bank and in hand
 14 
57
145

  
25,216
25,742

Creditors: amounts falling due within one year
 15 
(5,076)
(6,051)

Net current assets
  
 
 
20,140
 
 
19,691

Total assets less current liabilities
  
30,767
28,390

Creditors: amounts falling due after more than one year
 16 
(2,130)
(1,902)

Provisions for liabilities
  

Deferred tax
 17 
(674)
-

  
 
 
(674)
 
 
-

Net assets
  
27,963
26,488


Capital and reserves
  

Called up share capital 
 19 
22,500
22,500

Profit and loss account
 18 
5,463
3,988

  
27,963
26,488


The financial statements were approved and authorised for issue by the Board of Directors and were signed on its behalf on 11 July 2024.




D Jackson
Director

Page 12

 
JAMES WALKER & CO. LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


  Share capital
Profit and loss account
Total equity

£000
£000
£000


At 1 April 2022
22,500
1,782
24,282


Comprehensive expense for the year

Profit for the year
-
2,179
2,179

Equity Participation Scheme credit
-
27
27



At 1 April 2023
22,500
3,988
26,488


Comprehensive income for the year

Profit for the year
-
1,444
1,444

Equity participation scheme credit
-
31
31


At 31 March 2024
22,500
5,463
27,963


Page 13

 
JAMES WALKER & CO. LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.Accounting policies

 
1.1

Basis of preparation of financial statements

James Walker & Co. Limited is a private company, limited by shares, registered in England and Wales.
The registered office is:
Lion House
Oriental Road
Woking
Surrey 
GU22 8AP
The principal place of business is:
Gote Brow
Cockermouth
Cumbria
CA13 0NH

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland, and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 2).

The following principal accounting policies have been applied:

 
1.2

Financial Reporting Standard 102 - Reduced Disclosure Exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of James Walker Group Limited as at 31 March 2024 and these financial statements may be obtained from Companies House.

 
1.3

Going Concern

After reviewing the Company’s forecasts and projections, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.

Page 14

 
JAMES WALKER & CO. LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.Accounting policies (continued)

 
1.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
1.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided as follows:

Plant and machinery
-
25%
reducing balance method
Motor vehicles
-
25%
reducing balance method
Fixtures and fittings
-
25%
reducing balance method
Moulds and tooling
-
20%
straight-line method
Computer equipment
-
20%
straight-line method

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
1.6

Operating leases: lessee

Rentals paid under operating leases are charged to the Income Statement on a straight line basis over the lease term.

Page 15

 
JAMES WALKER & CO. LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.Accounting policies (continued)

 
1.7

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Income Statement. 

 
1.8

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
1.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
1.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
1.11

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Statement of Comprehensive Income at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Deferred grant income relates to government grants in respect of the Company's installation of flood defences at the Cockermouth facility. The balance will be recognised in the Statement of Comprehensive Income at the same rate as depreciation of the assets to which the grant relates. 

Page 16

 
JAMES WALKER & CO. LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.Accounting policies (continued)

 
1.12

Foreign currency translations

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Income Statement except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Income Statement within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Income Statement within 'other operating income'.

 
1.13

Share based payments

The Group operates an Equity Participation Scheme in which employees of the Company are awarded share options based upon the profitability of the Group. The fair value of the employee services received in exchange for the grant of share options is recognised as an expense. The total amount to be expensed is determined by reference to the fair value of share options each year depending upon Group profits and therefore the company recognises the expense of these options in the corresponding year.

 
1.14

Pensions

Defined contribution pension scheme

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Defined benefit pension scheme

Where the risks of a defined benefit plan are shared between entities under common control, the net defined benefit cost is recognised in the financial statements of the Group entity which is legally responsible for the plan and all other Group entities recognise a cost equal to their contribution payable for the period.

Page 17

 
JAMES WALKER & CO. LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

1.Accounting policies (continued)

 
1.15

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Statement of Financial Position date and carried forward to future periods. 

 
1.16

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Income Statement except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 18

 
JAMES WALKER & CO. LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

2.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the process of applying its accounting policies, the Company is required to make certain estimates, judgements and assumptions that it believes are reasonable based on the information available. These judgements, estimates and assumptions affect the amounts of assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recognised during the reporting periods presented.
On an ongoing basis, the Company evaluates its estimates using historical experience, consultation with experts and other methods considered reasonable in the particular circumstances. Actual results may differ significantly from the estimates, the effect of which is recognised in the period in which the facts that give rise to the revision become known.
The following paragraphs detail the estimates and judgements the Company believes to have the most significant impact on the annual results under FRS 102.
Tangible Fixed Assets
The estimated useful economic lives of PPE are based on management's judgement and experience. When management identifies that actual useful economic lives differ materially from the estimates used to calculate depreciation, that charge is adjusted prospectively. Due to the significance of PPE investment to the Group, variations between actual and estimated useful economic lives could impact operating results both positively and negatively, although historically few changes to estimated useful economic lives have been required.
The Company is required to evaluate the carrying values of PPE for impairment whenever circumstances indicate, in management's judgement, that the carrying value of such assets may not be recoverable. An impairment review requires management to make subjective judgements concerning the cash flows, growth rates and discount rates of the cash generating units under review.
Stock Valuation
The Company includes within the value of WIP a percentage of overheads judged by management to be incurred in direct relation to its manufacturing activities. The overhead absorption rate is a fixed percentage of labour costs and general overheads that is applied consistently year-on-year, subject to annual review for reasonableness by management.
At each financial year-end, the Company recognises an impairment against stock. The provision recognised includes a fixed percentage of each stock-line based on its ageing.
Page 19

 
JAMES WALKER & CO. LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

3.


Turnover

All turnover is attributable to the principal activity of the Company, the manufacture and sale of sealing products.

Analysis of turnover by country of destination:

2024
2023
£000
£000

United Kingdom
16,195
16,806

Rest of Europe
16,368
15,964

Rest of the world
12,320
9,481

44,883
42,251



4.


Other operating income

2024
2023
£000
£000

Sundry income
634
304

Government grants receivable
132
125

Loss on disposal of tangible assets
(59)
(47)

707
382



5.


Operating loss

The operating loss is stated after charging:

2024
2023
£000
£000

Other operating lease rentals
183
135

Depreciation on tangible fixed assets
1,996
1,968


6.


Auditors' remuneration

2024
2023
£000
£000

Fees payable to the Company's auditors for the audit of the Company's annual accounts
56
51

Fees payable to the Company's auditors in respect of:

Other services relating to taxation
8
7

Page 20

 
JAMES WALKER & CO. LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

7.


Employees

Staff costs, including Directors' remuneration, were as follows:


2024
2023
£000
£000

Wages and salaries
15,171
14,072

Social security costs
1,523
1,445

Cost of defined contribution scheme
732
662

17,426
16,179


The average monthly number of employees, including the Directors, during the year was as follows:


        2024
        2023
            No.
            No.







Direct manufacturing
199
194



Indirect manufacturing
183
174



Sales, office, management and other
37
40

419
408


8.


Directors' remuneration

2024
2023
£000
£000

Directors' emoluments
298
270

Company contributions to defined contribution pension schemes
30
30

328
300


During the year retirement benefits were accruing to two Directors (2023 - two) in respect of defined contribution pension schemes. Pension arrangements with regards to the two Directors who were also Directors of the parent company are disclosed in the parent company accounts and the other two Directors are dealt with in the accounts of their employing company. 
The Company does not consider any individuals other than the Directors to be Key Management Personnel.

The highest paid Director received remuneration of £156,000 (2023 - £136,000).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £16,000 (2023 - £15,000).

Page 21

 
JAMES WALKER & CO. LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

9.


Interest receivable

2024
2023
£000
£000


Interest receivable from group companies
186
98

186
98


10.


Taxation


2024
2023
£000
£000



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
1,030
109

Total deferred tax
1,030
109


Taxation on profit on ordinary activities
1,030
109

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£000
£000


Profit on ordinary activities before tax
2,474
2,288


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
618
435

Effects of:


Expenses not deductible for tax purposes
(16)
(13)

Capital allowances for year in excess of depreciation
(9)
(119)

Utilisation of tax losses
113
(192)

R&D Expenditure credits
(29)
-

Other timing differences leading to an increase/(decrease) in taxation
-
(2)

Group relief
353
-

Total tax charge for the year
1,030
109
Page 22

 
JAMES WALKER & CO. LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
10.Taxation (continued)


Factors that may affect future tax charges

Based on current investment plans the Company expects to continue to be able to claim capital allowances in excess of depreciation as disclosed in note 17.
As of April 2023 the standard corporation tax rate in the UK rose to 25%.


11.


Tangible fixed assets





Plant and machinery

£000



Cost or valuation


At 1 April 2023
38,414


Additions
3,982


Disposals
(829)



At 31 March 2024

41,567



Depreciation


At 1 April 2023
29,715


Charge for the year
1,996


Disposals
(770)



At 31 March 2024

30,941



Net book value



At 31 March 2024
10,626



At 31 March 2023
8,699


12.


Stock

2024
2023
£000
£000

Raw materials and consumables
3,917
2,975

Finished goods and work in progress
2,904
3,257

6,821
6,232


Page 23

 
JAMES WALKER & CO. LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

13.


Debtors

2024
2023
£000
£000

Due after more than one year

Deferred tax asset - see note 17
-
356

-
356


2024
2023
£000
£000

Due within one year

Trade debtors
1,706
1,205

Amounts owed by group undertakings
14,512
15,986

Other debtors
1,578
1,034

Prepayments and accrued income
542
784

18,338
19,009



14.


Cash and cash equivalents

2024
2023
£000
£000

Cash at bank and in hand
57
145

57
145



15.


Creditors: Amounts falling due within one year

2024
2023
£000
£000

Trade creditors
2,223
2,920

Amounts owed to group undertakings
744
706

Other creditors
36
256

Accruals and deferred income
2,073
2,169

5,076
6,051


Page 24

 
JAMES WALKER & CO. LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

16.


Creditors: Amounts falling due after more than one year

2024
2023
£000
£000

Other creditors
2,130
1,902

2,130
1,902


Deferred grant income relates to government grants in respect of the Company's installation of flood defences at the Cockermouth facility. The balance will be recognised in the Statement of Comprehensive Income at the same rate as depreciation of the assets to which the grant relates, as laid out in accounting policy note 1.11.


17.


Deferred taxation




2024


£000






At 1 April 2023
356


Charged to profit or loss
(1,030)



At 31 March 2024
(674)

The deferred tax asset is made up as follows:

2024
2023
£000
£000


Accelerated capital allowances
(692)
(28)

Tax losses carried forward
2
376

Other timing differences
16
8

(674)
356


18.


Reserves

Profit and loss account
The profit and loss account includes all current and prior period retained profits and losses.


19.


Share capital

2024
2023
£000
£000
Allotted, called up and fully paid



22,500,000 (2023 - 22,500,000) ordinary shares of £1.00 each
22,500
22,500


Page 25

 
JAMES WALKER & CO. LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

20.


Capital commitments


At 31 March 2024 the Company had capital commitments as follows:

2024
2023
£000
£000


Contracted for but not provided in these financial statements
930
1,534

930
1,534


21.


Pension commitments

The Company participates in a group defined benefit plan, the James Walker Pension Scheme ("JWPS"). For the purposes of FRS102 s28 the Company cannot identify its share of the underlying assets & liabilities of the defined benefit schemes in which it participates and the Company's pension contributions are assessed in accordance with the advice of a qualified independent actuary whose calculations are based upon total scheme membership. There is no contractual agreement or stated policy for charging the cost of the plan to the individual companies. In overall terms at 31 March 2024 there was nil deficit in respect of the UK schemes. The JWPS was closed to future accrual with effect from 30 April 2016 and active members of the scheme at that date were auto-enrolled into the James Walker Group Personal Pension Plan, a defined contribution scheme. Further information is included in the financial statements of the parent undertaking.


22.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£000
£000


Not later than 1 year
285
95

Later than 1 year and not later than 5 years
444
189

729
284


23.


Contingent liabilities

At 31 March 2024 the Company was party to a multilateral guarantee in respect of the indebtedness of other group companies to the value of £2,000,000 (2023: £2,000,000).


24.


Related party transactions

The Company has taken advantage of exemptions from disclosing transactions with related companies under the provisions of Section 33 of Financial Reporting Standard 102.

Page 26

 
JAMES WALKER & CO. LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024

25.


Controlling party

The ultimate parent undertaking is James Walker Group Limited. Its registered office is Lion House, Oriental Road, Woking, Surrey, GU22 8AP.
Group financial statements for James Walker Group Limited are available to the public from Companies House, Crown Way, Cardiff, for which there may be a fee, if applicable.

Page 27