Company registration number 02330996 (England and Wales)
JJ FOOD SERVICE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
JJ FOOD SERVICE LIMITED
COMPANY INFORMATION
Directors
Mr. M. H. Kiamil
Mr. M. Ahmed
Mrs. O. Kiamil
(Appointed 19 April 2023)
Secretary
Mr M. H. Kiamil
Company number
02330996
Registered office
7 Solar Way
Innova Park
Enfield
Middlesex
EN3 7XY
Auditor
TC Group
5th Floor
3 Dorset Rise
London
EC4Y 8EN
JJ FOOD SERVICE LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 22
JJ FOOD SERVICE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The directors present their strategic report for the year ended 31 March 2024.
Fair review of the business
The company's principal activity consists of the wholesale distribution of food, drinks and packaging to catering establishments, retail outlets, hospitals, educational establishments, and private consumers.
This year has been a difficult trading year for the company due to the restaurant and catering industry being hit hard by high inflation with the annual inflation rate of food and non-alcoholic beverages reaching 19.1% in the year ended 31 March 2023. Although the annual inflation rate of food and non-alcoholic beverages has reduced to 4% in the year to 31 March 2024, the high rate in the prior year has resulted in less demand due to a 2.5% reduction in the number of operating hospitality venues during the year.
Maintaining turnover at the level of the two previous trading years proved not possible and every effort was made to keep costs under control. The introduction of the profit-sharing scheme in the previous year led to the retention of valued members of the team and reduced the turnover of staff. This incentive has assisted the company in maintaining its focus on customer service in all aspects of the business and this was recognised at the Grocer Gold Awards 2024 when the company was awarded the accolade of National Wholesaler of the Year.
During the year the Group acquired a freehold warehouse unit in Wimbledon which has been adapted to suit the company’s trading and was opened for business in late February 2024. The area is home to charming boutique restaurants, authentic pubs, trendy cafes, and excellent schools with this being the 12th branch in the company’s operation.
Future developments
The company anticipates that the turnover will remain at £250m this year and will continue to trade profitably.
After the year end the Group acquired Gatelands Supplies Limited which will increase the range of products available for the Asian market.
Principal risks and uncertainties
Credit risk
Trade debtors are managed by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding.
Liquidity risk
In respect of bank balances, liquidity risk is managed by the movement of funds between accounts to obtain the maximum rate of interest while ensuring that funds are available as and when required.
Trade creditors liquidity risk is managed by ensuring payments for suppliers are made according to their credit terms and ensuring sufficient funds are available to meet those payments.
Foreign currency risk
Stock and trade creditors exchange rate risks are managed by contracting with forward foreign exchange contracts to minimise large fluctuations in exchange rates and also agreeing the cost in sterling wherever possible.
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JJ FOOD SERVICE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Key performance indicators
The key financial indicators of turnover, gross profit and net profit after taxation communicate the financial performance of the company as a whole. The key financial performance indicators for the last three years are as follows:-
Other performance indicators
On a regular basis, the directors also consider the impact on the company of the following key non-financial performance indicators namely staff, health and safety and environmental regulations.
1. Staff
The company is committed to a philosophy that content and well-trained employees are important assets of the business. Therefore, the company seeks to provide an environment which encourages the continuous development of employees through comprehensive training programmes where appropriate.
The company has an equal opportunities policy and is committed to ensuring that all employees are treated fairly, regardless of gender, marital status, ethnicity or disability. Training is provided to all levels of staff, and investment in employee development continues to be a priority. Within the equal opportunities policy, the company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a disabled person.
The directors monitor staff turnover and staffing levels on a continuous basis recognising the crucial importance to the business of retaining the best staff.
The company will, for the second consecutive year, pay a bonus of 5% of the net profit before tax to all employees who qualify. This is as a reward for being a loyal employee and contributing to the success of the company.
2. Health and safety
The health and safety of staff is also regarded as paramount and incident rates are monitored closely.
3. Environmental regulations
The company seeks to operate to the highest standards and comply with all environmental regulations relating to food. The company fulfils its duty to minimise adverse environmental impacts by ensuring efficient use of materials and energy, recycling where possible, minimising waste and ensuring compliance with relevant legislation.
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JJ FOOD SERVICE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Section 172(1) Statement
During the preparation of these financial statements the directors have had regard to the matters set out in section 172(1)(a) to (f) of the Companies Act 2006 when performing their duties under section 172.
Under the Act a director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its' members as a whole, and in doing so have regard (amongst other matters) to:
(a) the likely consequences of any decision in the long term,
(b) the interests of the company's employees,
(c) the need to foster the company's business relationships with suppliers, customers and others,
(d) the impact of the company's operations on the community and the environment,
(e) the desirability of the company maintaining a reputation for high standards of business conduct, and
(f) the need to act fairly, as between members of the company.
Company board objectives
The following paragraphs summarise how the directors fulfil their duties:
Risk management
The risk management framework is established at the JJ Food Holding Co Limited group level. The board of directors of JJ Food Holding Co Limited have the responsibility for setting the risk management policies. This framework identifies, monitors, measures and implements strategies to manage and mitigate risk across the group. Further details of financial risk management are set out above in the principal risks and uncertainties section of this report.
Staff and staff involvement
Our staff are at the forefront of our business and they represent the core value of the company, excellent customer service. The company is committed to being a responsible employer and managing the performance, needs and expectations of our employees in a fair and transparent manner. The company operates a number of initiatives promoting employee engagement, health and wellbeing and has been a strong supporter of “Women in Wholesale” to promote the presence of women in our industry, throughout all areas of operations.
The company has an equal opportunities policy and is committed to ensuring that all employees are treated fairly, regardless of gender, marital status, ethnicity or disability. Training is provided to all levels of staff and investment in employee development continues to be a priority.
The company's policy is to consult and discuss with employees matters likely to affect employees' interests. Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
The company will, for the second consecutive year, pay a bonus of 5% of the net profit before tax to all employees who qualify. This is as a reward for being a loyal employee and contributing to the success of the company.
Our Customers and Suppliers
Our relationship with our customers is paramount to the ongoing success of our business. The needs and expectations of our customers are integral to our business strategy and planning to ensure the company delivers products that meet the highest high quality standards and are compliant with all food regulations. We foster long term relationships with our suppliers through the collaboration and development of high quality and sustainable supply chains.
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JJ FOOD SERVICE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Community and environment
The company participates in a number of community initiatives to raise money for good causes and provide goods when the need arises. The company is continually looking to reduce its carbon footprint and is committed to sourcing sustainable, ethically sourced produce. During the year, the company continued to install solar panels on all branches and these installations should be completed this year.
Shareholders
The ultimate controlling party of the group is Mr. M. H. Kiamil who is also a director and involved in the day to day operations of the business, including the instigation and implementation of short and long term financial and business objectives.
Supplier payment policy
The company's current policy concerning the payment of trade creditors is to:
• settle the terms of payment with suppliers when initially entering into a trading relationship;
• ensure that suppliers are made aware of the company's terms of payment;
• pay in accordance with the company's contractual and other legal obligations.
..............................
Mr. M. H. Kiamil
Director
19 September 2024
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JJ FOOD SERVICE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The directors present their annual report and financial statements for the year ended 31 March 2024.
Results and dividends
The results for the year are set out on page 10.
Interim dividends were paid amounting to £10,000,000. The directors do not recommend payment of any further dividends for the year.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr. M. H. Kiamil
Mr. M. Ahmed
Mrs. O. Kiamil
(Appointed 19 April 2023)
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests. Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Auditor
TC Group were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006 and will be deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
The carbon and energy reporting has been included in the financial statements of the ultimate parent company, JJ Food Holding Co Limited.
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JJ FOOD SERVICE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
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). 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;
state whether the financial statements have been prepared in accordance with applicable accounting standards, identify those standards, and note the effect and the reasons for any material departure from those standards; and
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 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.
Other matters
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 financial risk management objectives and future developments.
On behalf of the board
Mr. M. H. Kiamil
Director
19 September 2024
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JJ FOOD SERVICE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JJ FOOD SERVICE LIMITED
Opinion
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We have audited the financial statements of JJ Food Service Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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 year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
JJ FOOD SERVICE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JJ FOOD SERVICE 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 and the directors' report.
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 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
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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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Our approach was as follows:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (FRS 102, the Companies Act 2006), and the relevant direct and indirect tax compliance regulation in the United Kingdom. In addition, the company is required to comply with data protection, anti-bribery, anti-money laundering, employments, environmental and health and safety legislation.
We understood how the company is complying with those frameworks by making enquiries of management and seeking representations from those charged with governance. We corroborated our understanding by reviewing supporting documentation including board meeting minutes.
JJ FOOD SERVICE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JJ FOOD SERVICE LIMITED
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved enquiries of management and those charged with governance, review of legal and professional expenses and review of board meeting minutes.
We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override of internal controls and by designating revenue recognition as a fraud risk. We performed journal entry testing by specific risk criteria, with a focus on journals indicating large or unusual transactions based on our understanding of the business. We tested completeness of income through substantive tests performed, analytical review procedures and cut off tests on the revenue recognised.
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
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.
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.
Stephen Simou FCA (Senior Statutory Auditor)
For and on behalf of TC Group
26 September 2024
Statutory Auditor
5th Floor
3 Dorset Rise
London
EC4Y 8EN
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JJ FOOD SERVICE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
2024
2023
Notes
£
£
Revenue
3
249,591,901
270,099,354
Cost of sales
(185,910,730)
(197,239,250)
Gross profit
63,681,171
72,860,104
Distribution costs
(5,180,597)
(4,593,506)
Administrative expenses
(46,149,773)
(45,319,380)
Other operating income
469,238
476,370
Operating profit
4
12,820,039
23,423,588
Investment income
7
2,167,043
612,457
Profit before taxation
14,987,082
24,036,045
Tax on profit
8
(3,756,262)
(4,551,538)
Profit for the financial year
11,230,820
19,484,507
The income statement has been prepared on the basis that all operations are continuing operations.
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JJ FOOD SERVICE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
31 March 2024
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
10
4,176,749
3,610,956
Investments
11
16,703
16,703
4,193,452
3,627,659
Current assets
Inventories
12
17,995,593
16,296,691
Trade and other receivables
13
15,969,660
11,041,026
Cash and cash equivalents
45,987,125
53,803,593
79,952,378
81,141,310
Current liabilities
14
(20,114,072)
(22,128,777)
Net current assets
59,838,306
59,012,533
Total assets less current liabilities
64,031,758
62,640,192
Provisions for liabilities
Deferred tax liability
15
366,257
205,511
(366,257)
(205,511)
Net assets
63,665,501
62,434,681
Equity
Called up share capital
17
1,000
1,000
Retained earnings
63,664,501
62,433,681
Total equity
63,665,501
62,434,681
The financial statements were approved by the board of directors and authorised for issue on 19 September 2024 and are signed on its behalf by:
Mr. M. H. Kiamil
Director
Company Registration No. 02330996
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JJ FOOD SERVICE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 April 2022
1,000
57,949,174
57,950,174
Year ended 31 March 2023:
Profit and total comprehensive income
-
19,484,507
19,484,507
Dividends
9
-
(15,000,000)
(15,000,000)
Balance at 31 March 2023
1,000
62,433,681
62,434,681
Year ended 31 March 2024:
Profit and total comprehensive income
-
11,230,820
11,230,820
Dividends
9
-
(10,000,000)
(10,000,000)
Balance at 31 March 2024
1,000
63,664,501
63,665,501
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JJ FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
Company information
JJ Food Service Limited is a private company limited by shares incorporated in England and Wales. The registered office and business address is at 7 Solar Way, Innova Park, Enfield, Middlesex, EN3 7XY.
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 in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
- Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of JJ Food Holding Co Limited. These consolidated financial statements are available from its registered office at 7 Solar Way, Innova Park, Enfield, Middlesex, EN3 7XY.
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
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, net of VAT. 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, usually on collection or dispatch of the goods.
Other operating income
Other operating income relates to management fees, marketing services and government grants. Marketing services are recognised in the accounting period in which the services are rendered when the outcome of the contract can be estimated reliably. Government grants and management fees are recognised under the accruals method of accounting.
Interest income
Interest income is recognised using the effective interest rate method when the right to receive interest has been established and it is probable that the economic benefits will flow to the company.
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JJ FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
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. The company only capitalises assets that cost over £1,000.
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:
Plant and machinery
15% reducing balance
Fixtures, fittings and equipment
15% reducing balance
Motor vehicles
25% straight line
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.
1.5
Non-current investments
Artwork owned by the company is initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
1.6
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) which is then recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit and loss. 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.
1.7
Inventories
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Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over their 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.
1.8
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.
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.
JJ FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
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, 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.
Basic financial liabilities
Basic financial liabilities, including trade and other payables 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded as the proceeds received, net of transaction costs.
- 15 -
JJ FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
1.11
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. 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.
1.12
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 non-current assets.
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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 leased assets are consumed.
1.15
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.
- 16 -
JJ FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
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.
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 carrying amounts of assets and liabilities within the next financial year are addressed below:
Depreciation
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
3
Revenue
An analysis of the company's revenue is as follows:
2024
2023
£
£
Revenue analysed by class of business
Wholesale distribution and cash and carry of food stuff and packaging
249,591,901
270,099,354
2024
2023
£
£
Revenue analysed by geographical market
UK
249,283,996
269,776,188
Europe
208,726
220,571
Other
99,179
102,595
249,591,901
270,099,354
2024
2023
£
£
Other revenue
Interest income
2,167,043
612,457
Marketing income
304,178
311,310
Management fees
165,060
165,060
- 17 -
JJ FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
1,385
(33,033)
Fees payable to the company's auditor for the audit of the company's financial statements
53,000
45,900
Fees payable to the company's auditor for other services
474
750
Depreciation of owned property, plant and equipment
1,673,575
1,898,549
Profit on disposal of property, plant and equipment
(3,813)
(11,218)
Cost of inventories recognised as an expense
185,910,730
197,239,250
Operating lease charges
6,590,894
6,641,672
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Operations
648
574
Sales, management and administration
105
122
Total
753
808
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
26,195,782
26,382,680
Social security costs
2,640,232
2,667,629
Pension costs
395,623
349,236
29,231,637
29,399,545
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
3,224,338
2,997,160
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
2,939,192
2,835,453
- 18 -
JJ FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Directors' remuneration
(Continued)
There were no key management personnel other than the directors.
7
Investment income
2024
2023
£
£
Interest on bank deposits
2,167,043
612,457
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
3,595,516
4,565,041
Deferred tax
Origination and reversal of timing differences
160,746
(13,503)
Total tax charge
3,756,262
4,551,538
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
14,987,082
24,036,045
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
3,746,771
4,566,849
Tax effect of expenses that are not deductible in determining taxable profit
9,491
31,527
Permanent capital allowances in excess of depreciation
-
(43,596)
Difference in deferred tax rate
(3,242)
Taxation charge for the year
3,756,262
4,551,538
9
Dividends
2024
2023
£
£
Interim dividends declared and paid
10,000,000
15,000,000
- 19 -
JJ FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Property, plant and equipment
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
1,994,875
4,478,615
9,620,056
16,093,546
Additions
1,890,510
350,345
2,240,855
Disposals
(4,750)
(238,092)
(121,024)
(363,866)
At 31 March 2024
3,880,635
4,590,868
9,499,032
17,970,535
Depreciation and impairment
At 1 April 2023
1,331,782
4,127,973
7,022,835
12,482,590
Depreciation charged in the year
120,774
85,688
1,467,113
1,673,575
Eliminated in respect of disposals
(3,263)
(238,092)
(121,024)
(362,379)
At 31 March 2024
1,449,293
3,975,569
8,368,924
13,793,786
Carrying amount
At 31 March 2024
2,431,342
615,299
1,130,108
4,176,749
At 31 March 2023
663,093
350,642
2,597,221
3,610,956
11
Fixed asset investments
2024
2023
£
£
Artworks
16,703
16,703
12
Inventories
2024
2023
£
£
Foodstuffs and other goods for resale
17,995,593
16,296,691
13
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
3,683,668
2,922,806
Corporation tax recoverable
387,166
505,542
Amounts owed by group undertakings
8,949,907
4,804,358
Other receivables
457,891
Prepayments and accrued income
2,491,028
2,808,320
15,969,660
11,041,026
- 20 -
JJ FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
14
Current liabilities
2024
2023
£
£
Trade payables
11,913,906
13,242,637
Taxation and social security
1,014,090
1,783,778
Accruals and deferred income
7,186,076
7,102,362
20,114,072
22,128,777
15
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 (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
366,257
205,511
2024
Movements in the year:
£
Liability at 1 April 2023
205,511
Charge to profit or loss
160,746
Liability at 31 March 2024
366,257
The expected net reversal of deferred tax liabilities in the next 12 months cannot be reliably estimated.
There is no expiry date on timing differences.
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
395,623
349,236
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.
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
- 21 -
JJ FOOD SERVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
18
Operating lease commitments
Lessee
The operating leases represent leases of land and buildings from another group company and equipment from third parties.
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
6,582,117
6,574,645
Between two and five years
25,901,600
25,779,413
In over five years
101,547,599
107,536,115
134,031,316
139,890,173
19
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of property, plant and equipment
217,434
179,376
20
Events after the reporting date
On 1 April 2024 the company's immediate parent company purchased Gatelands Supplies Limited and Premier East Limited and both transferred there trading operations into JJ Food Service Limited.
21
Related party transactions
The company has taken advantage of the exemption in FRS 102 paragraph 33.1A whereby it has not disclosed transactions with any wholly owned fellow group companies.
22
Parent and ultimate controlling party
The company's ultimate parent company is JJ Food Holding Co Limited ("JJ Holding Co"), a company incorporated in England and Wales. JJ Holding Co has the same registered office as the company.
The largest and smallest group of undertakings for which the group accounts have been drawn up is that headed by JJ Holding Co, and copies of those group accounts are available from its registered office.
The ultimate controlling party of the group is Mr. M. H. Kiamil by virtue of his shareholding.
- 22 -
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