Company Registration No. 00723594 (England and Wales)
Alec Jarrett Limited
Annual report and financial statements
for the Period ended 2 February 2024
Alec Jarrett Limited
Company information
Directors
Robert C Jarrett
Stuart H Jarrett
Secretary
Stuart H Jarrett
Company number
00723594
Registered office
High Street
Oldland Common
Bristol
BS30 9TN
Independent auditor
Saffery LLP
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Alec Jarrett Limited
Contents
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
Alec Jarrett Limited
Strategic report
For the period ended 2 February 2024
1
The directors present the strategic report and financial statements for the Period ended 2 February 2024.
The directors, in preparing this strategic report, have complied with s414C of the Companies Act 2006.
Fair review of business
The company and its directors continually review working practices and invest in appropriate technologies to ensure that there is a year on year increase in net assets (2024: £10,913,887; 2023: £10,499,055). This measure is considered by the directors to be the main financial KPI.
Review of developments and future prospects
The company intends to continue and develop its operations in accordance with its medium term plans.
Principal risks and uncertainties
Financial risk
The treasury function is managed centrally to support the company’s operating activities. Its primary role is to ensure that adequate resources are available to meet the funding requirements on a day to day basis and that financial risk arising from underlying operations is effectively identified and managed. This is achieved through budgetary and financial reporting procedures.
Credit risk
The directors assess the company’s exposure to credit risk by considering the credit rating of any new client and by monitoring the accumulated trading balances with existing clients.
Foreign exchange risk
The company’s exposure to foreign exchange risk is eliminated by the placement of fixed forward currency contracts immediately on despatch and invoice of exports.
Stuart H Jarrett
Director
15 October 2024
Alec Jarrett Limited
Directors' report
For the period ended 2 February 2024
2
The directors present their annual report and financial statements for the Period ended 2 February 2024.
Principal activities
The principal activity of the company continued to be the operation of an abattoir and subsequent meat processing.
Results and dividends
The results for the Period are set out on page 8.
Final dividends in the period amounted to £200,000. Dividends declared in the period ended 3 February 2023 amounted to £800,000.
Directors
The directors who held office during the Period and up to the date of signature of the financial statements were as follows:
Robert C Jarrett
Stuart H Jarrett
Fixed assets
In the opinion of the directors, the market value of the company’s freehold land and buildings is in excess of the net book value.
Auditor
Saffery LLP have expressed their willingness to continue in office.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102).
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.
Alec Jarrett Limited
Directors' report (continued)
For the period ended 2 February 2024
3
Matters covered in the Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of business review, principal risk and uncertainties and key performance indicators.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Stuart H Jarrett
Director
15 October 2024
Alec Jarrett Limited
Independent auditor's report
To the members of Alec Jarrett Limited
4
Opinion
We have audited the financial statements of Alec Jarrett Limited (the 'company') for the Period ended 2 February 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 2 February 2024 and of its profit for the Period 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Alec Jarrett Limited
Independent auditor's report (continued)
To the members of Alec Jarrett Limited
5
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial Period 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 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.
Alec Jarrett Limited
Independent auditor's report (continued)
To the members of Alec Jarrett Limited
6
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Alec Jarrett Limited
Independent auditor's report (continued)
To the members of Alec Jarrett Limited
7
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.
Neil Davies (Senior Statutory Auditor)
For and on behalf of Saffery LLP
18 October 2024
Chartered Accountants
Statutory Auditors
St Catherine's Court
Berkeley Place
Clifton
Bristol
BS8 1BQ
Alec Jarrett Limited
Statement of comprehensive income
For the period ended 2 February 2024
8
Period
Period
ended
ended
2 February
3 February
2024
2023
Notes
£
£
Turnover
3
62,028,503
69,930,027
Cost of sales
(55,691,930)
(62,486,954)
Gross profit
6,336,573
7,443,073
Distribution costs
(2,022,631)
(2,321,825)
Administrative expenses
(3,739,693)
(4,249,578)
Other operating income
340,508
327,905
Operating profit
4
914,757
1,199,575
Interest receivable and similar income
7
22,443
854
Other gains and losses
8
37,155
-
Profit before taxation
974,355
1,200,429
Tax on profit
9
(255,733)
(157,551)
Profit for the financial Period
718,622
1,042,878
The income statement has been prepared on the basis that all operations are continuing operations.
Alec Jarrett Limited
Statement of financial position
As at 2 February 2024
02 February 2024
9
2 February 2024
3 February 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,203,629
3,373,991
Investment property
12
655,000
617,845
3,858,629
3,991,836
Current assets
Stocks
13
2,028,020
2,332,806
Debtors
14
7,173,848
7,605,969
Cash at bank and in hand
3,775,338
3,524,333
12,977,206
13,463,108
Creditors: amounts falling due within one year
15
(5,370,047)
(6,499,504)
Net current assets
7,607,159
6,963,604
Total assets less current liabilities
11,465,788
10,955,440
Provisions for liabilities
Deferred tax liability
16
448,111
456,385
(448,111)
(456,385)
Net assets
11,017,677
10,499,055
Capital and reserves
Called up share capital
18
20,000
20,000
Capital redemption reserve
32,891
32,891
Profit and loss reserves
10,964,786
10,446,164
Total equity
11,017,677
10,499,055
The financial statements were approved by the board of directors and authorised for issue on 15 October 2024 and are signed on its behalf by:
Robert C Jarrett
Director
Company Registration No. 00723594
Alec Jarrett Limited
Statement of changes in equity
For the period ended 2 February 2024
10
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 29 January 2022
20,000
32,891
10,203,286
10,256,177
Period ended 3 February 2023:
Profit and total comprehensive income
-
-
1,042,878
1,042,878
Dividends
10
-
-
(800,000)
(800,000)
Balance at 3 February 2023
20,000
32,891
10,446,164
10,499,055
Period ended 2 February 2024:
Profit and total comprehensive income
-
-
718,622
718,622
Dividends
10
-
-
(200,000)
(200,000)
Balance at 2 February 2024
20,000
32,891
10,964,786
11,017,677
Alec Jarrett Limited
Statement of cash flows
For the period ended 2 February 2024
11
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,436,493
1,364,501
Income taxes paid
(173,767)
(231,948)
Net cash inflow from operating activities
1,262,726
1,132,553
Investing activities
Purchase of tangible fixed assets
(247,627)
(982,274)
Proceeds from disposal of tangible fixed assets
13,463
40,922
Interest received
22,443
854
Net cash used in investing activities
(211,721)
(940,498)
Financing activities
Dividends paid
(800,000)
(480,000)
Net cash used in financing activities
(800,000)
(480,000)
Net increase/(decrease) in cash and cash equivalents
251,005
(287,945)
Cash and cash equivalents at beginning of Period
3,524,333
3,812,278
Cash and cash equivalents at end of Period
3,775,338
3,524,333
Alec Jarrett Limited
Notes to the financial statements
For the period ended 2 February 2024
12
1
Accounting policies
Company information
Alec Jarrett Limited is a private company limited by shares incorporated in England and Wales. The registered office is High Street, Oldland Common, Bristol, BS30 9TN.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared on a 52 week period basis and are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.
The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold buildings
4% straight line
Plant and equipment
10 - 20% reducing balance
Fixtures and fittings
20% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 2 February 2024
1
Accounting policies (continued)
13
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price in the normal course of business less all costs to be incurred in marketing, selling and distribution to completion of sale. Finished goods and goods for resale include all direct materials and, where applicable, direct labour costs and related production overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Biological assets are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs comprise of the purchase cost and any additional costs incurred through transportation.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 2 February 2024
1
Accounting policies (continued)
14
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 2 February 2024
1
Accounting policies (continued)
15
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as 'creditors: amounts falling due within one year' if payment is due within one year or less. If not, they are presented as 'creditors: amounts falling due after more than one year'. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Other financial liabilities, including debt instruments that do not meet the definition of a basic financial instrument, are measured at fair value through profit or loss.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 2 February 2024
1
Accounting policies (continued)
16
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 2 February 2024
2
Critical accounting judgements and key sources of estimation uncertainty (continued)
17
Fair value of investment properties
The fair value of investment properties has been considered by the directors using professional valuations of the properties and their knowledge of the local property market. The market value of the properties is reviewed at least annually at each year end.
Valuation of stock
The value of various categories of stock have been considered by the directors using their knowledge of the local market. The value of these stock categories are based on the selling price less the estimated gross profit margin. The selling prices are reviewed and updated weekly.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Turnover
62,014,565
69,916,759
Other income
13,938
13,268
62,028,503
69,930,027
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
57,809,225
58,323,265
Europe
4,219,278
11,606,762
62,028,503
69,930,027
4
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange gains
(2,214)
(4,895)
Research and development costs
16,695
-
Government grants
(20,428)
(12,269)
Fees payable to the company's auditor for the audit of the company's financial statements
29,350
28,000
Fees payable to the company's auditor for non audit fees
5,400
5,100
Depreciation of owned tangible fixed assets
408,907
381,226
Profit on disposal of tangible fixed assets
(4,381)
(1,942)
Operating lease charges
51,895
64,928
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 2 February 2024
18
5
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2024
2023
Number
Number
Office, management and sales
15
15
Production and maintenance
60
59
Total
75
74
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
7,014,263
7,879,405
Social security costs
175,326
288,891
Pension costs
27,492
28,373
7,217,081
8,196,669
The wages and salaries figures above include subcontracted labour, upon which no social security contributions are paid.
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
346,333
996,099
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
Remuneration for qualifying services
255,470
655,607
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
22,443
854
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 2 February 2024
7
Interest receivable and similar income (continued)
19
2024
2023
£
£
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
22,443
854
8
Other gains and losses
2024
2023
£
£
Changes in the fair value of investment properties
37,155
-
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
264,007
173,767
Deferred tax
Origination and reversal of timing differences
(8,274)
(16,216)
Total tax charge
255,733
157,551
The actual charge for the Period can be reconciled to the expected charge for the Period based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
974,355
1,200,429
Expected tax charge based on the standard rate of corporation tax in the UK of 24.03% (2023: 19.00%)
234,139
228,082
Tax effect of expenses that are not deductible in determining taxable profit
5,481
6,561
Tax effect of income not taxable in determining taxable profit
(8,928)
Depreciation on assets not qualifying for tax allowances
16,434
(31,387)
Effect of change in deferred tax rate
(321)
(3,893)
Adjustments to bought forwards values
(41,812)
Chargeable gains/(losses)
8,928
Taxation charge for the period
255,733
157,551
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 2 February 2024
20
10
Dividends
2024
2023
£
£
Final paid
200,000
800,000
11
Tangible fixed assets
Freehold buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 4 February 2023
2,201,458
6,350,454
562,174
417,370
9,531,456
Additions
21,389
157,874
11,131
57,233
247,627
Disposals
(10,765)
(24,750)
(35,515)
At 2 February 2024
2,222,847
6,497,563
573,305
449,853
9,743,568
Depreciation and impairment
At 4 February 2023
935,702
4,442,269
479,204
300,290
6,157,465
Depreciation charged in the Period
70,150
289,792
17,463
31,502
408,907
Eliminated in respect of disposals
(5,475)
(20,958)
(26,433)
At 2 February 2024
1,005,852
4,726,586
496,667
310,834
6,539,939
Carrying amount
At 2 February 2024
1,216,995
1,770,977
76,638
139,019
3,203,629
At 3 February 2023
1,265,756
1,908,185
82,970
117,080
3,373,991
Included in freehold buildings is land with a cost of £37,069 (2023: £37,069) that is not depreciated.
12
Investment property
2024
£
Fair value
At 4 February 2023
617,845
Net gains through fair value adjustment
37,155
At 2 February 2024
655,000
Investment property comprises a building which is held in accordance with FRS 102 at its fair value - the directors are of the opinion that its carrying value closely approximates to its fair value.
The investment property was revalued by David James in February 2024.
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 2 February 2024
12
Investment property (continued)
21
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2024
2023
£
£
Cost
427,730
427,730
Accumulated depreciation
-
-
Carrying amount
427,730
427,730
13
Stocks
2024
2023
£
£
Raw materials and consumables
399,458
535,513
Finished goods and goods for resale
1,628,562
1,797,293
2,028,020
2,332,806
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
6,105,359
6,507,915
Other debtors
526,507
542,772
Prepayments and accrued income
541,982
555,282
7,173,848
7,605,969
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,216,802
1,287,903
Corporation tax
264,007
173,767
Other taxation and social security
100,819
106,488
Dividends payable
200,000
800,000
Other creditors
1,981,491
1,428,037
Accruals and deferred income
1,606,928
2,703,309
5,370,047
6,499,504
There are 2 assets held at cost within freehold property as security over the bank account for Alec Jarrett Limited.
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 2 February 2024
22
16
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
391,293
408,856
Investment property
56,818
47,529
448,111
456,385
2024
Movements in the Period:
£
Liability at 4 February 2023
456,385
Credit to profit and loss
(8,274)
Liability at 2 February 2024
448,111
It is not possible to quantify the expected reversal of deferred tax liabilities in the period to 2 February 2024 due to the unknown timing of disposals in respect of assets.
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
27,492
28,373
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
20,000
20,000
20,000
20,000
Ordinary shares has full voting rights.
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 2 February 2024
23
19
Financial commitments, guarantees and contingent liabilities
The company had no contingent liabilities at 02 February 2024 or at 03 February 2023.
The company is committed to fixed forward currency contracts totalling £719,572 (2023: £746,279) at the year end. The fair value of these contracts is an asset of £329 (2023: £9,408).
20
Operating lease commitments
Lessee
The operating lease payments represent contract hire agreements for assets. At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
44,167
54,996
Between two and five years
36,010
80,026
80,177
135,022
21
Related party transactions
During the period the company recognised management fee income of £12,000 (2023: £12,000) and was charged £7,800 (2023: £7,800) in respect of sales from Alec Jarrett Land Limited. At 2 February 2024 a total of £104,524 (2023: £99,747) was owed by Alec Jarrett Land Limited to the company.
During the period £124,441 (2023: £83,779) of purchases, £2,299 (2023: £3,880) of other sales and £nil (2023: £17,922) assets were sold to an immediate family member of the directors. As at 2 February 2024 the company owed £170,700 (2023: £161,457) to immediate family members of the directors.
There were £nil (2023: £8,691) of purchases made from a director during the period and as at 2 February 2024 the company owed £2,265,480 (2023: £2,501,902) to the directors. Amounts owed to the directors are interest free and repayable on demand.
22
Ultimate controlling party
Alec Jarrett Limited is controlled jointly by Robert C Jarrett and Stuart H Jarrett who together hold 100% of the allotted share capital of the company.
23
Analysis of changes in net funds
4 February 2023
Cash flows
2 February 2024
£
£
£
Cash at bank and in hand
3,524,333
251,005
3,775,338
Alec Jarrett Limited
Notes to the financial statements (continued)
For the period ended 2 February 2024
24
24
Cash generated from operations
2024
2023
£
£
Profit for the Period after tax
718,622
1,042,878
Adjustments for:
Taxation charged
255,733
157,551
Investment income
(22,443)
(854)
Gain on disposal of tangible fixed assets
(4,381)
(1,942)
Depreciation and impairment of tangible fixed assets
408,907
381,226
Fair value gain on investment property
(37,155)
-
Movements in working capital:
Decrease/(increase) in stocks
304,786
(599,430)
Decrease/(increase) in debtors
432,121
(1,502,203)
(Decrease)/increase in creditors
(619,697)
1,887,275
Cash generated from operations
1,436,493
1,364,501
2024-02-022023-02-04falseCCH SoftwareCCH Accounts Production 2024.100Robert C JarrettStuart H JarrettStuart H Jarrettfalsefalse007235942023-02-042024-02-0200723594bus:Director12023-02-042024-02-0200723594bus:CompanySecretaryDirector12023-02-042024-02-0200723594bus:CompanySecretary12023-02-042024-02-0200723594bus:Director22023-02-042024-02-0200723594bus:RegisteredOffice2023-02-042024-02-02007235942024-02-02007235942022-01-292023-02-0300723594core:RetainedEarningsAccumulatedLosses2022-01-292023-02-0300723594core:RetainedEarningsAccumulatedLosses2023-02-042024-02-02007235942023-02-0300723594core:LandBuildingscore:OwnedOrFreeholdAssets2024-02-0200723594core:PlantMachinery2024-02-0200723594core:FurnitureFittings2024-02-0200723594core:MotorVehicles2024-02-0200723594core:LandBuildingscore:OwnedOrFreeholdAssets2023-02-0300723594core:PlantMachinery2023-02-0300723594core:FurnitureFittings2023-02-0300723594core:MotorVehicles2023-02-0300723594core:CurrentFinancialInstrumentscore:WithinOneYear2024-02-0200723594core:CurrentFinancialInstrumentscore:WithinOneYear2023-02-0300723594core:CurrentFinancialInstruments2024-02-0200723594core:CurrentFinancialInstruments2023-02-0300723594core:ShareCapital2024-02-0200723594core:ShareCapital2023-02-0300723594core:CapitalRedemptionReserve2024-02-0200723594core:CapitalRedemptionReserve2023-02-0300723594core:RetainedEarningsAccumulatedLosses2024-02-0200723594core:RetainedEarningsAccumulatedLosses2023-02-0300723594core:ShareCapital2022-01-2800723594core:CapitalRedemptionReserve2022-01-2800723594core:RetainedEarningsAccumulatedLosses2022-01-28007235942023-02-03007235942022-01-2800723594core:LandBuildingscore:OwnedOrFreeholdAssets2023-02-042024-02-0200723594core:PlantMachinery2023-02-042024-02-0200723594core:FurnitureFittings2023-02-042024-02-0200723594core:MotorVehicles2023-02-042024-02-0200723594core:UKTax2023-02-042024-02-0200723594core:UKTax2022-01-292023-02-030072359412023-02-042024-02-020072359412022-01-292023-02-030072359422023-02-042024-02-020072359422022-01-292023-02-030072359432023-02-042024-02-020072359432022-01-292023-02-030072359442023-02-042024-02-020072359442022-01-292023-02-0300723594core:LandBuildingscore:OwnedOrFreeholdAssets2023-02-0300723594core:PlantMachinery2023-02-0300723594core:FurnitureFittings2023-02-0300723594core:MotorVehicles2023-02-0300723594core:WithinOneYear2024-02-0200723594core:WithinOneYear2023-02-0300723594core:BetweenTwoFiveYears2024-02-0200723594core:BetweenTwoFiveYears2023-02-0300723594bus:PrivateLimitedCompanyLtd2023-02-042024-02-0200723594bus:FRS1022023-02-042024-02-0200723594bus:Audited2023-02-042024-02-0200723594bus:FullAccounts2023-02-042024-02-02xbrli:purexbrli:sharesiso4217:GBP