Company registration number 01349584 (England and Wales)
J. R. WEBSTER AND COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
J. R. WEBSTER AND COMPANY LIMITED
COMPANY INFORMATION
Directors
J Webster
P Lee
Secretary
J Webster
Company number
01349584
Registered office
Prince William Avenue
Sandycroft
Deeside
Clwyd
Nth Wales
CH5 2QZ
Auditor
Mitchell Charlesworth (Audit) Limited
Glebe Business Park
Lunts Heath Road
Widnes
Cheshire
WA8 5SQ
Bankers
National Westminster Bank plc
Stevenson Way
Wavertree
Liverpool
Merseyside
L13 1NW
J. R. WEBSTER AND COMPANY LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
J. R. WEBSTER AND COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

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

Review of the business

During the year the company had continued to achieve the key performance objectives set out by management, by increasing the level of turnover and gross margin. Turnover has increased in comparison to the previous year and business is growing.

 

The directors consider the balance sheet at the year end shows a satisfactory position.

Principal risks and uncertainties

As the company is secure in its financial position, the directors do not foresee any immediate financial risks.

 

Whilst the company has exposure to price and credit risk, the directors ensure that competitor prices are regularly monitored. The company regulates credit risk by ensuring credit checks are performed prior to acceptance of new trade customers.

 

Development and performance

The company is committed to continuing to develop its presence within the Northwest area.

Key performance indicators

The company's key performance indicators are turnover and gross margin. The figures for the year are as follows;

Turnover has increased from £7,111,900 to £7,555,661.

Gross margin has increased slightly from 49.92% to 53.33%.

On behalf of the board

P Lee
Director
18 November 2024
J. R. WEBSTER AND COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 May 2024.

Principal activities

The principal activity of the company during the year was the supply of industrial fasteners.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £97,928. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

J Webster
C Webster
(Deceased 23 March 2024)
P Lee
Auditor

Mitchell Charlesworth (Audit) Limited are deemed to be re-appointed under section 487(2) of the Companies Act 2006.

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:

 

 

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.

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.

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.

J. R. WEBSTER AND COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
Financial risk management objectives and policies

For details on the financial risk management objectives and policies, refer to the strategic report.

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
P Lee
Director
18 November 2024
J. R. WEBSTER AND COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J. R. WEBSTER AND COMPANY LIMITED
- 4 -
Opinion

We have audited the financial statements of J. R. Webster and Company Limited (the 'company') for the year ended 31 May 2024 which comprise the statement of comprehensive income, the balance sheet, 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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:

J. R. WEBSTER AND COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J. R. WEBSTER AND COMPANY LIMITED
- 5 -
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:

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.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

 

J. R. WEBSTER AND COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J. R. WEBSTER AND COMPANY LIMITED
- 6 -

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

 

(i) The presentation of the Profit and Loss Account, (ii) the accounting policy for revenue recognition valuation, (iii) the processes and controls used to establish the year end stock figure, including the identification of any slow moving or obsolete stock. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty, this specifically included Health & Safety Regulations.

Audit response to risks identified

As a result of performing the above, we identified revenue recognition and adherence to laws and regulations as the key audit matters related to the potential risk of fraud.

 

Our procedures to respond to risks identified included the following:

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

J. R. WEBSTER AND COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J. R. WEBSTER AND COMPANY LIMITED
- 7 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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.

Robert Davies
Senior Statutory Auditor
For and on behalf of Mitchell Charlesworth (Audit) Limited
18 November 2024
Accountants
Statutory Auditor
Glebe Business Park
Lunts Heath Road
Widnes
Cheshire
WA8 5SQ
J. R. WEBSTER AND COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
7,555,661
7,111,900
Cost of sales
(3,526,327)
(3,561,672)
Gross profit
4,029,334
3,550,228
Administrative expenses
(3,076,503)
(2,668,419)
Other operating income
11,850
9,834
Operating profit
4
964,681
891,643
Interest receivable and similar income
7
154,542
8,600
Profit before taxation
1,119,223
900,243
Tax on profit
8
(310,488)
(198,755)
Profit for the financial year
808,735
701,488

The profit and loss account has been prepared on the basis that all operations are continuing operations.

 

 

J. R. WEBSTER AND COMPANY LIMITED
BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
4,812,852
4,684,772
Current assets
Stocks
13
2,635,891
2,464,621
Debtors
14
1,721,118
1,516,587
Cash at bank and in hand
5,355,632
5,006,413
9,712,641
8,987,621
Creditors: amounts falling due within one year
15
(1,111,229)
(968,200)
Net current assets
8,601,412
8,019,421
Total assets less current liabilities
13,414,264
12,704,193
Provisions for liabilities
Deferred tax liability
16
133,963
134,699
(133,963)
(134,699)
Net assets
13,280,301
12,569,494
Capital and reserves
Called up share capital
18
12,904
12,904
Profit and loss reserves
13,267,397
12,556,590
Total equity
13,280,301
12,569,494

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 18 November 2024 and are signed on its behalf by:
J Webster
P Lee
Director
Director
Company registration number 01349584 (England and Wales)
J. R. WEBSTER AND COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2022
12,904
11,956,529
11,969,433
Year ended 31 May 2023:
Profit and total comprehensive income
-
701,488
701,488
Dividends
9
-
(101,427)
(101,427)
Balance at 31 May 2023
12,904
12,556,590
12,569,494
Year ended 31 May 2024:
Profit and total comprehensive income
-
808,735
808,735
Dividends
9
-
(97,928)
(97,928)
Balance at 31 May 2024
12,904
13,267,397
13,280,301
J. R. WEBSTER AND COMPANY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
948,488
1,025,473
Income taxes paid
(209,535)
(251,987)
Net cash inflow from operating activities
738,953
773,486
Investing activities
Purchase of tangible fixed assets
(457,077)
(94,655)
Proceeds from disposal of tangible fixed assets
10,729
1,200
Interest received
154,542
8,600
Net cash used in investing activities
(291,806)
(84,855)
Financing activities
Dividends paid
(97,928)
(101,427)
Net cash used in financing activities
(97,928)
(101,427)
Net increase in cash and cash equivalents
349,219
587,204
Cash and cash equivalents at beginning of year
5,006,413
4,419,209
Cash and cash equivalents at end of year
5,355,632
5,006,413
J. R. WEBSTER AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
1
Accounting policies
Company information

J. R. Webster and Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Prince William Avenue, Sandycroft, Deeside, Clwyd, Nth Wales, CH5 2QZ.

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 on the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

At 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.true

1.3
Turnover

Turnover 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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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 dispatch of the goods), 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
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:

Land and buildings Freehold
2% Straight line / Over 125 Years
Land and buildings Leasehold
10% Straight line / Over 125 years
Plant,    machinery        and office    equipment
10% Reducing balance
Fixture and fittings
10% 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.

J. R. WEBSTER AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 13 -
1.5
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.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement 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 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.

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.

J. R. WEBSTER AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 14 -
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 balance sheet 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 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, 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, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

J. R. WEBSTER AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

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 profit and loss account 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.

J. R. WEBSTER AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -
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 profit and loss account, 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 fixed 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

The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

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 leases asset are consumed.

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.

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.

J. R. WEBSTER AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 17 -
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.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Trade and counter sales in the UK
7,555,661
7,111,900
2024
2023
£
£
Other revenue
Interest income
154,542
8,600
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
21,095
20,000
Depreciation of owned tangible fixed assets
277,805
248,102
Loss/(profit) on disposal of tangible fixed assets
40,463
(1,200)
Impairment of stocks recognised or reversed
85,610
239,373
Operating lease charges
27,397
47,481
J. R. WEBSTER AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 18 -
5
Employees

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

2024
2023
Number
Number
Directors
3
4
Management
12
10
Sales & productions
32
32
Total
47
46

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,658,420
1,613,467
Social security costs
180,215
182,176
Pension costs
380,001
47,951
2,218,636
1,843,594
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
226,747
225,063
Company pension contributions to defined contribution schemes
333,600
8,900
560,347
233,963

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

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
81,961
79,061
Company pension contributions to defined contribution schemes
10,600
-
J. R. WEBSTER AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 19 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
154,542
8,600
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
154,542
8,600
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
311,225
209,536
Adjustments in respect of prior periods
-
0
(408)
Total current tax
311,225
209,128
Deferred tax
Origination and reversal of timing differences
(737)
(10,373)
Total tax charge
310,488
198,755

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
1,119,223
900,243
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
279,806
180,073
Tax effect of expenses that are not deductible in determining taxable profit
5,847
6,673
Adjustments in respect of prior years
-
0
(408)
Remeasurement of deferred tax for changes in tax rates
-
0
(2,073)
Fixed asset differences
24,835
14,490
Taxation charge for the year
310,488
198,755
J. R. WEBSTER AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 20 -
9
Dividends
2024
2023
£
£
Final paid
97,928
101,427
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Stocks
13
85,610
239,373
Recognised in:
Cost of sales
85,610
239,373
11
Tangible fixed assets
Land and buildings Freehold
Land and buildings Leasehold
Plant,    machinery        and office    equipment
Fixture and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 June 2023
4,796,592
549,285
718,608
681,415
526,289
7,272,189
Additions
195,915
-
0
7,172
50,926
203,064
457,077
Disposals
-
0
-
0
(388,294)
-
0
(91,927)
(480,221)
At 31 May 2024
4,992,507
549,285
337,486
732,341
637,426
7,249,045
Depreciation and impairment
At 1 June 2023
1,030,526
283,366
534,916
415,863
322,746
2,587,417
Depreciation charged in the year
97,512
4,213
19,006
31,177
125,897
277,805
Eliminated in respect of disposals
-
0
-
0
(345,074)
-
0
(83,955)
(429,029)
At 31 May 2024
1,128,038
287,579
208,848
447,040
364,688
2,436,193
Carrying amount
At 31 May 2024
3,864,469
261,706
128,638
285,301
272,738
4,812,852
At 31 May 2023
3,766,066
265,919
183,692
265,552
203,543
4,684,772
J. R. WEBSTER AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
12
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,606,669
1,431,092
Carrying amount of financial liabilities
Measured at amortised cost
569,151
550,895
13
Stocks
2024
2023
£
£
Raw materials and consumables
2,635,891
2,464,621
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,593,953
1,422,485
Other debtors
12,716
8,607
Prepayments and accrued income
114,449
85,495
1,721,118
1,516,587
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
483,958
475,803
Corporation tax
311,225
209,536
Other taxation and social security
230,853
207,769
Accruals and deferred income
85,193
75,092
1,111,229
968,200
J. R. WEBSTER AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 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 (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
133,963
134,699
2024
Movements in the year:
£
Liability at 1 June 2023
134,699
Other
(736)
Liability at 31 May 2024
133,963
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
380,001
47,951

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
12,900
12,900
12,900
12,900
Ordinary A shares of £1 each
4
4
4
4
12,904
12,904
12,904
12,904
J. R. WEBSTER AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
19
Operating lease commitments
Lessee

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
18,545
21,902
Between two and five years
24,591
33,793
43,136
55,695
20
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
808,735
701,488
Adjustments for:
Taxation charged
310,488
198,755
Investment income
(154,542)
(8,600)
Loss/(gain) on disposal of tangible fixed assets
40,463
(1,200)
Depreciation and impairment of tangible fixed assets
277,805
248,102
Movements in working capital:
Increase in stocks
(171,270)
(2,319)
Increase in debtors
(204,531)
(89,255)
Increase/(decrease) in creditors
41,340
(21,498)
Cash generated from operations
948,488
1,025,473
21
Analysis of changes in net funds
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
5,006,413
349,219
5,355,632
2024-05-312023-06-01falseCCH SoftwareCCH Accounts Production 2024.210C WebsterP LeeP LeeJ Websterfalsefalse013495842023-06-012024-05-3101349584bus:CompanySecretaryDirector12023-06-012024-05-3101349584bus:Director22023-06-012024-05-3101349584bus:CompanySecretary12023-06-012024-05-3101349584bus:Director12023-06-012024-05-3101349584bus:Director32023-06-012024-05-3101349584bus:RegisteredOffice2023-06-012024-05-3101349584bus:Agent12023-06-012024-05-31013495842024-05-31013495842022-06-012023-05-3101349584core:RetainedEarningsAccumulatedLosses2022-06-012023-05-3101349584core:RetainedEarningsAccumulatedLosses2023-06-012024-05-31013495842023-05-3101349584core:LandBuildingscore:OwnedOrFreeholdAssets2024-05-3101349584core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-05-3101349584core:PlantMachinery2024-05-3101349584core:FurnitureFittings2024-05-3101349584core:MotorVehicles2024-05-3101349584core:LandBuildingscore:OwnedOrFreeholdAssets2023-05-3101349584core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-05-3101349584core:PlantMachinery2023-05-3101349584core:FurnitureFittings2023-05-3101349584core:MotorVehicles2023-05-3101349584core:CurrentFinancialInstrumentscore:WithinOneYear2024-05-3101349584core:CurrentFinancialInstrumentscore:WithinOneYear2023-05-3101349584core:CurrentFinancialInstruments2024-05-3101349584core:CurrentFinancialInstruments2023-05-3101349584core:ShareCapital2024-05-3101349584core:ShareCapital2023-05-3101349584core:RetainedEarningsAccumulatedLosses2024-05-3101349584core:RetainedEarningsAccumulatedLosses2023-05-3101349584core:ShareCapital2022-05-3101349584core:RetainedEarningsAccumulatedLosses2022-05-3101349584core:ShareCapitalOrdinaryShares2024-05-3101349584core:ShareCapitalOrdinaryShares2023-05-31013495842023-05-31013495842022-05-3101349584core:LandBuildingscore:OwnedOrFreeholdAssets2023-06-012024-05-3101349584core:LandBuildingscore:LongLeaseholdAssets2023-06-012024-05-3101349584core:PlantMachinery2023-06-012024-05-3101349584core:FurnitureFittings2023-06-012024-05-3101349584core:MotorVehicles2023-06-012024-05-3101349584core:UKTax2023-06-012024-05-3101349584core:UKTax2022-06-012023-05-310134958412023-06-012024-05-310134958412022-06-012023-05-310134958422023-06-012024-05-310134958422022-06-012023-05-3101349584core:LandBuildingscore:OwnedOrFreeholdAssets2023-05-3101349584core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-05-3101349584core:PlantMachinery2023-05-3101349584core:FurnitureFittings2023-05-3101349584core:MotorVehicles2023-05-3101349584core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-06-012024-05-3101349584core:WithinOneYear2024-05-3101349584core:WithinOneYear2023-05-3101349584core:BetweenTwoFiveYears2024-05-3101349584core:BetweenTwoFiveYears2023-05-3101349584bus:PrivateLimitedCompanyLtd2023-06-012024-05-3101349584bus:FRS1022023-06-012024-05-3101349584bus:Audited2023-06-012024-05-3101349584bus:FullAccounts2023-06-012024-05-31xbrli:purexbrli:sharesiso4217:GBP