Company registration number 03076415 (England and Wales)
JOHN PALMER CARPETS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
PAGES FOR FILING WITH REGISTRAR
JOHN PALMER CARPETS LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 9
JOHN PALMER CARPETS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 JANUARY 2024
31 January 2024
- 1 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
5
28,988
38,651
Current assets
Inventories
1,670,536
1,954,373
Trade and other receivables
6
1,969,838
1,921,952
Cash and cash equivalents
120,729
163,592
3,761,103
4,039,917
Current liabilities
7
(1,168,158)
(1,232,629)
Net current assets
2,592,945
2,807,288
Net assets
2,621,933
2,845,939
Equity
Called up share capital
102,100
102,100
Share premium account
9
3,000
3,000
Retained earnings
10
2,516,833
2,740,839
Total equity
2,621,933
2,845,939

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 29 October 2024 and are signed on its behalf by:
D Evans
Director
Company registration number 03076415 (England and Wales)
JOHN PALMER CARPETS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
1
Accounting policies
Company information

John Palmer Carpets Limited is a private company limited by shares incorporated in England and Wales. The registered office is Units 1-5, Fareham Industrial Park, Standard Way, Fareham, Hampshire, PO16 8XB.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

The financial statements have been prepared under the historical cost convention. 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. The company relies on support from the group companies and there is a support letter in place. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for goods and services 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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (upon delivery of the goods to customer or collection date by customer), the amount of revenue 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
Property, plant and equipment

Property, plant and equipment 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:

Land and buildings Leasehold
Over 10 years or the duration of the lease
Plant and machinery
25% reducing balance
Fixtures, fittings & equipment
25% 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.

JOHN PALMER CARPETS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 3 -
1.5
Impairment of non-current 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.

 

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) prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

1.6
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.

 

Inventories held for distribution at no or nominal consideration are measured at cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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.

1.7
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.

1.8
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.

JOHN PALMER CARPETS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 4 -
Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, 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.

Impairment of financial assets

Financial assets, 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 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.

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.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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 for the year as at reporting end date.

JOHN PALMER CARPETS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 5 -
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. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense. The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The regular cost of providing retirement pensions and related benefits is charged to the profit and loss account over the employees' service lives on the basis of a constant percentage of earnings. Any difference between the charge to the profit and loss account and the contributions paid to the scheme is shown as an asset or liability in the balance sheet.

1.13
Leases

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.

2
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,500
8,888
JOHN PALMER CARPETS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 6 -
3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
37
31
4
Directors' remuneration
2024
2023
£
£
Remuneration paid to directors
144,619
158,717

The number of directors for whom retirement benefits are accruing under defined benefit schemes amounted to 1 (2023 - 1).

5
Property, plant and equipment
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 February 2023 and 31 January 2024
130,377
313,156
443,533
Depreciation and impairment
At 1 February 2023
130,237
274,645
404,882
Depreciation charged in the year
35
9,628
9,663
At 31 January 2024
130,272
284,273
414,545
Carrying amount
At 31 January 2024
105
28,883
28,988
At 31 January 2023
140
38,511
38,651
6
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
1,090,026
1,153,886
Corporation tax recoverable
27,610
9,483
Amounts owed by group undertakings
561,201
543,250
Other receivables
291,001
215,333
1,969,838
1,921,952
JOHN PALMER CARPETS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
6
Trade and other receivables
(Continued)
- 7 -

Trade receivables disclosed above are measured at amortised cost.

An impairment loss of £56,743 (2023: £18,483) has been recognised against trade receivables.

7
Current liabilities
2024
2023
£
£
Trade payables
496,383
664,518
Amounts owed to group undertakings
356,242
263,452
Taxation and social security
130,462
36,109
Other payables
185,071
268,550
1,168,158
1,232,629

Other payables of £nil (2023: £nil) are secured against trade receivables of the company. This invoice discounting facility is secured by a debenture dated 17 June 2016 which contains a fixed and floating charge over the assets of the company and a negative pledge.

8
Retirement benefit schemes
Defined contribution schemes
The charge in the accounts represents the total contributions payable to the scheme and amounted to £8,322 (2023: £17,237)
Defined benefit schemes

The company participates as a contributing member of a group pension scheme, The Brookvale Limited Staff Retirements Benefits Scheme.

 

Contributions to the scheme are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. The scheme is a defined benefits, final salary scheme. It is not possible to identify the share of underlying assets and liabilities belonging to individual participating employers.

 

A full actuarial valuation was carried out at 1 February 2023 and updated to 31 January 2024 by a qualified independent actuary. At 31 January 2024, the scheme had surplus of £5,054,000 (2023: £3,444,000 surplus) as calculated by the actuary for the purpose of FRS102 section 28. The full defined benefit scheme disclosures are shown in the consolidated accounts of Brookvale Limited.

 

The charge in the accounts represents the total contributions payable to the scheme and amounted to £52,211(2023: £42,423).

9
Share premium account

Share premium represents the premium arising on the issue of shares net of issue costs.

10
Retained earnings

The retained earnings account represents cumulative profits and losses net of dividends and other adjustments.

JOHN PALMER CARPETS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Emphasis of matter

In forming our opinion on the financial statements, which is not qualified, we have considered the adequacy of the disclosures made in note 1.2 to the financial statements, concerning the company’s ability to continue as a going concern.

 

The company is reliant on the support by the group companies. In consequence of this group support the company remains a going concern and therefore the accounts have been prepared on this basis.

Senior Statutory Auditor:
Colin Hamilton
Statutory Auditor:
Ward Williams Limited
Date of audit report:
29 October 2024
12
Financial commitments, guarantees and contingent liabilities

Brookvale Limited, Volante Limited, John Palmer Carpets Limited, and Planners Services and Sundries Limited have an inter-company guarantee with unlimited security. The facility is secured by a debenture dated 13 August 2012 with a fixed and floating charge over all assets of the company.

13
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
£
£
Within one year
393,430
393,430
Between two and five years
1,177,977
1,282,258
In over five years
217,853
507,003
1,789,260
2,182,691
14
Parent company

The ultimate parent company is Brookvale Limited, a company registered in England and Wales.

The following are the parents of the largest and smallest groups in which this company's results are consolidated:

Largest group
Brookvale Limited
Smallest group
Brookvale Limited
JOHN PALMER CARPETS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
15
Related party transactions
Remuneration of key management personnel
2024
2023
£
£
Aggregate compensation
144,619
143,717
Transactions with related parties

 

The company has taken advantage of the exemption in FRS102 section 33 from the requirements to disclose transactions with group companies on the grounds that consolidated financial statements are prepared by the ultimate parent company. The consolidated financial statements of Brookvale Limited are available from The Lodge, Leek Road, Endon, Stoke on Trent, Staffordshire, ST9 9HQ.

 

During the year the company purchased goods of £1,154,712 (2023: £1,047,353) from F. Ball and Co. Limited, a company under the control of a director of Brookvale Limited. The balance owed to F. Ball and Co. Limited at the period end was £36,016 (2023: £32,392).

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