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REGISTERED NUMBER: 00618802 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 January 2024

for

J. Richardson & Sons Limited

J. Richardson & Sons Limited (Registered number: 00618802)






Contents of the Financial Statements
for the Year Ended 31 January 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


J. Richardson & Sons Limited

Company Information
for the Year Ended 31 January 2024







DIRECTORS: G S Richardson
A G Richardson





REGISTERED OFFICE: Wycliffe Peugeot
Leicester Road
Rugby
Warwickshire
CV21 1NZ





REGISTERED NUMBER: 00618802 (England and Wales)





AUDITORS: Torr Waterfield Limited
Statutory Auditor
Park House
37 Clarence Street
Leicester
Leicestershire
LE1 3RW

J. Richardson & Sons Limited (Registered number: 00618802)

Strategic Report
for the Year Ended 31 January 2024

The directors present their strategic report for the year ended 31 January 2024.

REVIEW OF BUSINESS
The principal activity of the company in the year under review was that of the sale of new and used vehicles, repairs and servicing.

The directors note that profit after tax for the year has increase from £73,151 to £100,160, due to the increase in sales this year from £15,627,339 to £17,219,749. The company's overall net asset position, remains good and with its strong product range the directors expect the company to benefit from any upturn in demand and in the economy generally.

PRINCIPAL RISKS AND UNCERTAINTIES
The company uses various financial instruments; these include cash, bank loans 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 financial instruments exposes the company to a number of financial risks, which are described in more detail below:

The main risks arising from the company's financial instruments are categorised as liquidity risk, market risk, credit risk and cash-flow risk. The directors review and agree policies for managing each of these risks.

The use of financial derivatives is governed by the company's policies approved by the board of directors. The company does not actively use derivative financial instruments for speculative purposes.

Liquidity risk

Funds available to the company are commensurate to operating requirements. The board of directors assess the need for liquidity within the business with reference to the funding cycle most appropriate to the trading performance and the short term cash flow need of the business.

Market risk

The directors currently see no major detrimental impact from market risk issues.

Credit risk

The company's principal financial assets are cash and trade debtors. The credit risk associated with the cash is minimal. The principal credit risk therefore arises from its trade debtors.

In order to manage credit risk, the directors have implemented processes to ensure receipt of cleared funds for vehicle sales before the vehicle is released. The bonuses due from the manufacturer are paid by direct debit.

Other trade debtors require approved credit in advance which is supported by references and payment is required within the company's credit terms and hence credit risk is minimised.

Cash flow risk

The company's activities primarily expose it to the financial risks of changes in its working capital, brought about by the seasonality of the industry and the stock holding requirements.

The directors monitor the working capital requirements and are able to assess the commercial rationale against the costs of raising capital through the company's bankers and primary funders.

KEY PERFORMANCE INDICATORS
The key performance indicators used by the directors to monitor the business are the levels of turnover achieved, margins achieved and the net assets. Performance is considered satisfactory by the directors against these measures. Detailed information appears on pages 9 and 10.


J. Richardson & Sons Limited (Registered number: 00618802)

Strategic Report
for the Year Ended 31 January 2024

FUTURE DEVELOPMENTS
The directors consider that the company's market place will remain very competitive in the near future and opportunities for future expansion will therefore be limited. However the directors believe that, with its quality product range, high level of service and strong management team the company is well placed to take advantage of every opportunity in the coming year.

ON BEHALF OF THE BOARD:





A G Richardson - Director


10 October 2024

J. Richardson & Sons Limited (Registered number: 00618802)

Report of the Directors
for the Year Ended 31 January 2024

The directors present their report with the financial statements of the company for the year ended 31 January 2024.

DIVIDENDS
Dividends paid on the ordinary share capital during the year to 31 January 2024 amounted to £75,000 (2023: £75,000).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 February 2023 to the date of this report.

G S Richardson
A G Richardson

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





A G Richardson - Director


10 October 2024

Report of the Independent Auditors to the Members of
J. Richardson & Sons Limited

Opinion
We have audited the financial statements of J. Richardson & Sons Limited (the 'company') for the year ended 31 January 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
_
In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 January 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
J. Richardson & Sons Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of 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 Statement of Directors' Responsibilities set out on page four, 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 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.

Report of the Independent Auditors to the Members of
J. Richardson & Sons Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud
The capability to detect irregularities is based on the auditor identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, and then designing and performing audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

a) Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, the following approach was taken:
- Understanding the nature of the industry and sector, control environment and business performance;
- Consideration of the results of our enquiries of management and those charged with governance
about their own identification and assessment of the risks of irregularities;
- Understanding the company's policies and procedures on compliance with laws and regulations and
management of fraud risk, including documentation of instances of non-compliance of laws and
regulations and instances of actual, suspected or alleged fraud;
- Consideration of matters discussed among the audit engagement team regarding how and where
fraud might occur in the financial statements and any potential indicators of fraud;
- Understanding the legal and regulatory frameworks that the company operates in through enquiry of
management and those charged with governance and understanding the company's industry and
sector. The key laws and regulations that were considered to have an effect on material amounts and
disclosures in the financial statements included the Companies Act and tax legislation.

b) Audit response to risks identified

Based on this understanding, the following audit procedures were designed and performed to respond to the risks identified:
- Reviewing the financial statement disclosures and testing to supporting documentation to assess
compliance with applicable laws and regulations described as having a direct effect on the financial
statement;
- Enquiring of management, those charged with governance and, where applicable, the company's
solicitors concerning actual and potential litigation and claims;
- Performing analytical procedures to identify any unusual or unexpected relationships that may
indicate risks of material misstatement due to fraud;
- Reviewing minutes of meetings of those charged with governance and, where applicable,
correspondence with regulators;
- Performing audit work over the risk of management override of controls, including testing of journal
entries and other adjustments for appropriateness and evaluating the business rationale of significant
transactions outside the normal course of business;
- Communication of potential fraud risks to all engagement team members and remaining alert to any
indications of fraud or non-compliance with laws and regulations throughout the audit.

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.


Report of the Independent Auditors to the Members of
J. Richardson & Sons Limited

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Mark Torr FCCA (Senior Statutory Auditor)
for and on behalf of Torr Waterfield Limited
Statutory Auditor
Park House
37 Clarence Street
Leicester
Leicestershire
LE1 3RW

10 October 2024

J. Richardson & Sons Limited (Registered number: 00618802)

Statement of Comprehensive
Income
for the Year Ended 31 January 2024

31.1.24 31.1.23
Notes £    £   

TURNOVER 3 17,219,749 15,627,339

Cost of sales (15,527,788 ) (14,087,987 )
GROSS PROFIT 1,691,961 1,539,352

Administrative expenses (1,470,123 ) (1,409,932 )
221,838 129,420

Other operating income 61,046 61,046
OPERATING PROFIT 5 282,884 190,466


Interest payable and similar expenses 6 (139,454 ) (91,827 )
PROFIT BEFORE TAXATION 143,430 98,639

Tax on profit 7 (43,270 ) (25,488 )
PROFIT FOR THE FINANCIAL YEAR 100,160 73,151

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

100,160

73,151

J. Richardson & Sons Limited (Registered number: 00618802)

Balance Sheet
31 January 2024

31.1.24 31.1.23
Notes £    £   
FIXED ASSETS
Tangible assets 9 2,867,320 2,914,806
Investment property 10 900,000 900,000
3,767,320 3,814,806

CURRENT ASSETS
Stocks 11 1,125,035 1,141,340
Debtors 12 485,897 275,885
Cash at bank and in hand 31,857 451
1,642,789 1,417,676
CREDITORS
Amounts falling due within one year 13 (1,729,433 ) (2,242,493 )
NET CURRENT LIABILITIES (86,644 ) (824,817 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,680,676

2,989,989

CREDITORS
Amounts falling due after more than one
year

14

(810,011

)

(142,682

)

PROVISIONS FOR LIABILITIES 17 (75,049 ) (76,851 )
NET ASSETS 2,795,616 2,770,456

CAPITAL AND RESERVES
Called up share capital 18 3,000 3,000
Fair value reserve 19 195,212 195,212
Retained earnings 19 2,597,404 2,572,244
SHAREHOLDERS' FUNDS 2,795,616 2,770,456

The financial statements were approved by the Board of Directors and authorised for issue on 10 October 2024 and were signed on its behalf by:





A G Richardson - Director


J. Richardson & Sons Limited (Registered number: 00618802)

Statement of Changes in Equity
for the Year Ended 31 January 2024

Called up Fair
share Retained value Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 February 2022 3,000 2,574,093 195,212 2,772,305

Changes in equity
Dividends - (75,000 ) - (75,000 )
Total comprehensive income - 73,151 - 73,151
Balance at 31 January 2023 3,000 2,572,244 195,212 2,770,456

Changes in equity
Dividends - (75,000 ) - (75,000 )
Total comprehensive income - 100,160 - 100,160
Balance at 31 January 2024 3,000 2,597,404 195,212 2,795,616

J. Richardson & Sons Limited (Registered number: 00618802)

Cash Flow Statement
for the Year Ended 31 January 2024

31.1.24 31.1.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 429,606 558,107
Interest paid (139,454 ) (91,827 )
Tax paid (28,976 ) (62,205 )
Net cash from operating activities 261,176 404,075

Cash flows from investing activities
Purchase of tangible fixed assets (5,536 ) (1,075 )
Net cash from investing activities (5,536 ) (1,075 )

Cash flows from financing activities
Loan repayments in year (122,418 ) (108,084 )
Amount withdrawn by directors 6,473 (5,623 )
Movement in stocking loan 116,761 (236,097 )
Equity dividends paid (75,000 ) (75,000 )
Net cash from financing activities (74,184 ) (424,804 )

Increase/(decrease) in cash and cash equivalents 181,456 (21,804 )
Cash and cash equivalents at
beginning of year

2

(149,599

)

(127,795

)

Cash and cash equivalents at end of
year

2

31,857

(149,599

)

J. Richardson & Sons Limited (Registered number: 00618802)

Notes to the Cash Flow Statement
for the Year Ended 31 January 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

31.1.24 31.1.23
£    £   
Profit before taxation 143,430 98,639
Depreciation charges 53,022 55,364
Finance costs 139,454 91,827
335,906 245,830
Decrease/(increase) in stocks 16,305 (20,803 )
(Increase)/decrease in trade and other debtors (210,012 ) 834
Increase in trade and other creditors 287,407 332,246
Cash generated from operations 429,606 558,107

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 January 2024
31.1.24 1.2.23
£    £   
Cash and cash equivalents 31,857 451
Bank overdrafts - (150,050 )
31,857 (149,599 )
Year ended 31 January 2023
31.1.23 1.2.22
£    £   
Cash and cash equivalents 451 716
Bank overdrafts (150,050 ) (128,511 )
(149,599 ) (127,795 )


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.2.23 Cash flow At 31.1.24
£    £    £   
Net cash
Cash at bank and in hand 451 31,406 31,857
Bank overdrafts (150,050 ) 150,050 -
(149,599 ) 181,456 31,857
Debt
Debts falling due within 1 year (1,041,483 ) 672,986 (368,497 )
Debts falling due after 1 year (142,682 ) (667,329 ) (810,011 )
(1,184,165 ) 5,657 (1,178,508 )
Total (1,333,764 ) 187,113 (1,146,651 )

J. Richardson & Sons Limited (Registered number: 00618802)

Notes to the Financial Statements
for the Year Ended 31 January 2024

1. STATUTORY INFORMATION

J. Richardson & Sons Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

The company has net current liabilities of £86,644 (2023: £824,817). On 24 February 2023 the company entered into a new Loan facility agreement for £822,000. The new Loan facility is provided for a period of 2 years and is repayable on its maturity on 24 February 2025.

The directors have considered current trade and forecasts and are satisfied that, with the ongoing support of creditors of the company including its bankers, the company can manage its working capital and generate sufficient operating cash flows to enable it to meet its liabilities as they fall due. On this basis, the directors consider it appropriate to prepare the financial statements on the going concern basis.

J. Richardson & Sons Limited (Registered number: 00618802)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

2. ACCOUNTING POLICIES - continued

Critical accounting judgements and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

i) Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of assets. The useful economic lives and residual values are reviewed annually. They are amended when necessary to reflect current accounting estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

ii) Investment property

Investment property is valued periodically using a yield methodology. This uses market rental values capitalised at a market capitalisation rate but there is an inevitable degree of judgement involved in that each property is unique and value can only be reliably tested in the market itself. Other inputs into the valuation were the annual rent per square metre and the capitalisation rate. The location, use and age of the property are also significant factors, which are taken into consideration when determining the value of the property.

iii) Stocks

In determining stock provisions, future demand and selling price is evaluated and appropriate provisions are made to reflect the risk of obsolescence and impairment in carrying value. The provisioning policy is in place to ensure that the carrying value of stock recognised in the financial statements is the lower of cost and net realisable value, in accordance with the stated accounting policy.

J. Richardson & Sons Limited (Registered number: 00618802)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the company and Valued Added Tax.

The company recognises turnover when the following criteria have been met:

i) Sale of goods

Revenue from the sale of goods is recognised when :
(a) the significant risks and rewards of ownership have been transferred to the buyer;
(b) the company retains no ongoing involvement or control over the goods;
(c) the revenue can be reliably measured;
(d) it is probable that the Company will receive the consideration due under the transaction; and
(e) the costs incurred in respect of the transaction can be reliably measured.

ii) Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
(a) the amount of revenue can be reliably measured;
(b) it is probable that the Company will receive the consideration due under the contract;
(c) the stage of completion of the contract at the end of the reporting period can be measured reliably; and
(d) the costs incurred and the costs to complete the contract can be reliably measured.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Plant and machinery - 25% on reducing balance
Computer equipment - 25% on cost

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price and costs directly attributable to bringing the asset to the location and condition necessary for its intended use.

Freehold land is not depreciated.

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks
Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the purchase using a first-in, first-out basis.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to sell and an impairment charge is recognised in the Statement of Comprehensive Income.

J. Richardson & Sons Limited (Registered number: 00618802)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

4. EMPLOYEES AND DIRECTORS
31.1.24 31.1.23
£    £   
Wages and salaries 885,521 828,909
Social security costs 67,960 83,722
Other pension costs 36,339 36,543
989,820 949,174

The average number of employees during the year was as follows:
31.1.24 31.1.23

Administration 18 16
Sales 8 8
Technical 7 7
33 31

J. Richardson & Sons Limited (Registered number: 00618802)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

4. EMPLOYEES AND DIRECTORS - continued

31.1.24 31.1.23
£    £   
Directors' remuneration 18,359 13,067
Directors' pension contributions to money purchase schemes 16,191 12,156

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

5. OPERATING PROFIT

The operating profit is stated after charging:

31.1.24 31.1.23
£    £   
Depreciation - owned assets 53,022 55,364
Auditor's remuneration 16,480 16,195

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.1.24 31.1.23
£    £   
Bank interest 38,160 32,773
Bank loan interest 67,701 44,428
Stocking loan interest 33,593 14,626
139,454 91,827

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.1.24 31.1.23
£    £   
Current tax:
UK corporation tax 45,072 28,976

Deferred tax (1,802 ) (3,488 )
Tax on profit 43,270 25,488

UK corporation tax has been charged at 24% (2023 - 19%).

J. Richardson & Sons Limited (Registered number: 00618802)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.1.24 31.1.23
£    £   
Profit before tax 143,430 98,639
Profit multiplied by the standard rate of corporation tax in the UK of
23.643% (2023 - 19%)

33,911

18,741

Effects of:
Expenses not deductible for tax purposes 9,457 7,646
Differing tax rates applicable (98 ) (838 )
Enhanced capital allowances - (61 )
Total tax charge 43,270 25,488

Finance Bill 2021 included provisions to increase the main rate of corporation tax to 25% from 1 April 2023. Deferred tax has been calculated using the 25% tax rate substantively enacted at the balance sheet date.

8. DIVIDENDS
31.1.24 31.1.23
£    £   
Ordinary shares of £1 each
Final 75,000 75,000

9. TANGIBLE FIXED ASSETS
Freehold Plant and Computer
property machinery equipment Totals
£    £    £    £   
COST
At 1 February 2023 3,086,969 507,141 135,311 3,729,421
Additions - 5,536 - 5,536
At 31 January 2024 3,086,969 512,677 135,311 3,734,957
DEPRECIATION
At 1 February 2023 238,209 451,541 124,865 814,615
Charge for year 40,000 10,412 2,610 53,022
At 31 January 2024 278,209 461,953 127,475 867,637
NET BOOK VALUE
At 31 January 2024 2,808,760 50,724 7,836 2,867,320
At 31 January 2023 2,848,760 55,600 10,446 2,914,806

Included in cost of land and buildings is freehold land of £1,130,399 (2023: £1,130,399) which is not depreciated.

J. Richardson & Sons Limited (Registered number: 00618802)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

10. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 February 2023
and 31 January 2024 900,000
NET BOOK VALUE
At 31 January 2024 900,000
At 31 January 2023 900,000

The 2024 valuation was made by the directors, on an open market value for existing use basis.

11. STOCKS
31.1.24 31.1.23
£    £   
Parts stock 79,654 72,391
Vehicle stock 1,045,381 1,068,949
1,125,035 1,141,340

Stock recognised in cost of sales during the year as an expense was £15,376,729 (2023: £13,939,619).
An impairment loss of £17,802 (2023: £12,285) was recognised in cost of sales against stock during the year due to slow-moving and obsolete stock.

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.1.24 31.1.23
£    £   
Trade debtors 351,394 171,704
Other debtors 45,761 39,877
Prepayments and accrued income 88,742 64,304
485,897 275,885

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.1.24 31.1.23
£    £   
Debentures (see note 15) 252,357 135,596
Bank loans and overdrafts (see note 15) 116,140 1,055,937
Trade creditors 1,109,426 865,231
Corporation tax 45,072 28,976
Social security and other taxes 38,291 35,511
Other creditors 98,564 73,534
Directors' current accounts 10,493 4,020
Accruals and deferred income 59,090 43,688
1,729,433 2,242,493

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.1.24 31.1.23
£    £   
Bank loans (see note 15) 810,011 142,682

J. Richardson & Sons Limited (Registered number: 00618802)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

15. LOANS

An analysis of the maturity of loans is given below:

31.1.24 31.1.23
£    £   
Amounts falling due within one year or on demand:
Debentures 252,357 135,596
Bank overdrafts - 150,050
Bank loans 116,140 905,887
368,497 1,191,533

Amounts falling due between one and two years:
Bank loans - 1-2 years 803,713 64,765

Amounts falling due between two and five years:
Bank loans - 2-5 years 6,298 77,917

The bank loan is repayable quarterly until its maturity on 24 February 2025 at an interest rate of 8.4%.

The CBILS loan is repayable over 60 months until maturity in 2026 at an interest rate of 10.10%.

16. SECURED DEBTS

The following secured debts are included within creditors:

31.1.24 31.1.23
£    £   
Debentures 252,357 135,596
Bank loans 926,151 1,048,569
1,178,508 1,184,165

The vehicle stocking loan (debenture) is secured against the vehicles to which it relates.

Bank loans are secured over the land and buildings and other assets of the company.

17. PROVISIONS FOR LIABILITIES
31.1.24 31.1.23
£    £   
Deferred tax
Accelerated capital allowances 14,323 16,125
Other timing differences 60,726 60,726
75,049 76,851

Deferred
tax
£   
Balance at 1 February 2023 76,851
Provided during year (1,802 )
Balance at 31 January 2024 75,049

J. Richardson & Sons Limited (Registered number: 00618802)

Notes to the Financial Statements - continued
for the Year Ended 31 January 2024

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.1.24 31.1.23
value: £    £   
3,000 Ordinary £1 3,000 3,000

19. RESERVES

Fair value reserve

The fair value reserve arose on a past revaluation of the investment property that was accounted for under UK GAAP as applied at the time.

Profit and loss account

Profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.

20. RELATED PARTY DISCLOSURES

Mr G S Richardson and Mr A G Richardson, directors, have given a personal guarantee to the company's bankers.

During the year, total dividends of £75,000 (2023 - £75,000) were paid to the directors and relatives.

The company has a loan from Mr G S Richardson, director, during the year. The amount outstanding at the year end was £10,493 (2023 - £4,020)

Key management personnel are considered to be the directors of the company. Their remuneration is stated in Note 4.