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TJ International (Holdings) Limited

Annual Report and Consolidated Financial Statements
Year Ended 30 November 2023

Registration number: 11113630

 

TJ International (Holdings) Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Consolidated Profit and Loss Account

10

Consolidated Balance Sheet

11

Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Financial Statements

16 to 35

 

TJ International (Holdings) Limited

Company Information

Directors

Mr A J Adams

Mr A P Watts

Registered office

c/o TJ Books Limited
Trecerus Industrial Estate
Padstow
Cornwall
PL28 8RW

Auditors

PKF Francis Clark
Statutory Auditor
Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

 

TJ International (Holdings) Limited

Strategic Report

Year Ended 30 November 2023

The directors present their strategic report for the year ended 30 November 2023.

Principal activity

The principal activity of the group is printing, binding and related services.

Fair review of the business

During 2023 the group traded slightly down on the previous year, sales fell by 2% to £15,398,384 (2022: £15,764,126). This decrease was due to a decrease in lithographic production. However, sales in digital production increased.

At year end the group was in a net asset position of £100,900 (£208,555) a decrease of £107,655 on the prior financial year and trading within its available financing facilities.

The shareholders are satisfied with the 2023 trading result, despite the continued difficulties faced throughout the year.

Principal risks and uncertainties

The group is exposed to a variety of financial risks including credit, liquidity, interest rate and market price risk. The policy towards these financial risks is determined by the board, and then adopted and enforced by the management team.

The group is also exposed to operating risks which are inherent in the business model. This could include the loss of a major client. This risk is mitigated by consistently delivering competitive quality products on time every time. Other operating risks, such as a major production facility failure, are mitigated by the range of systems, technologies and equipment available in the plant and the continuous investment into leading edge technologies.

Approved by the Board on 26 November 2024 and signed on its behalf by:

.........................................
Mr A P Watts
Director

   
     
 

TJ International (Holdings) Limited

Directors' Report

Year Ended 30 November 2023

The directors present their report and the for the year ended 30 November 2023.

Directors of the group

The directors who held office during the year were as follows:

Mr A J Adams

Mr A P Watts

Financial risk management objectives and policies

The group considers the major financial risks of the business to be linked to liquidity, cash flow and market price. The group mitigates these risks by: carefully controlling costs and monitoring production efficiency and manpower levels; monitoring debt levels through forecasting and budgeting; and being proactive re changes in the economy and amending strategy accordingly.

Going concern

The directors acknowledge the group's net current liability position of £1,834,862 at the year end date (2023 - £2,178,512). The group funds its working capital needs through an invoice discounting facility. The group has traded within this facility during the year and expects to in future periods.

During the year sales decreased by 2% over the previous year. The general economic downturn had an effect during the year, decreasing volumes and increasing costs. Cash, profits and net assets are expected to be sufficient for the group to continue to trade. Forecasts show income for the coming 12 months to be an increase on the 2024 figures, and profits are expected to be made. The Directors will continue to manage cash closely in order to be able to pay debts when they are due.

The trading company held cash of £82k at year end and invoice finance facility of £2.4m. Cash flow forecasts for the next 18 months show the company's bank balance to improve over the year end balance. The group is currently holding some additional cash in the parent company in the event that there is a sudden down turn in trade, or this will be used to pay off loans if it is not needed.

Post year end management accounts to September 2024 show the group with a positive EBITDA of £514k and the group is still projecting to make a profit for the 2024 financial year. Sales for the first six months of the year were around £1.5m per month and the Directors are forecasting an increase in activity in the final three months of the year, in line with the normal seasonality trend of the business. The group’s invoice discounting facility liability of £1.2m at September 2024 has also improved on the year end position.

Post year end the group purchased the trade and assets of a second printing business to create a more robust business model. Production will continue in Padstow with the merged company assets being purchased by TJ Books Limited. The merger will significantly increase headline sales without a corresponding significant change to the fixed cost base of the business. One off costs were incurred in the short term relocating operations to Padstow and additional asset finance was secured to purchase the printing presses necessary to meet the increased sales demand. The Directors believe this transaction will be very positive for the business in the medium term leading to improved profitability and cash-flow.

 

TJ International (Holdings) Limited

Directors' Report

Year Ended 30 November 2023

The main risk in the projections prepared is unexpected reductions in sales volume which would impact the ability of the group to finance its debts. The directors have completed sensitivity analysis and are satisfied that sales volume could reduce by 10% without any significant impact on the balance. If sales volume were to reduce further the Directors would look to once again re-align the businesses cost basis with the level of activity. The group also has access to additional asset finance if required to support short term cash-flow.

On the basis of these forecasts and analysis, the directors remain confident that the group will continue to be a going concern for a period of at least 12 months from the date of approving these financial statements. The accounts have accordingly been prepared on a going concern basis.

Research and development

The group has undertaken research and development in order to offer an improved service to the customer. The group plans to further develop these platforms and will continue to strive towards process efficiency.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved by the Board on 26 November 2024 and signed on its behalf by:

.........................................
Mr A P Watts
Director

   
     
 

TJ International (Holdings) Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

TJ International (Holdings) Limited

Independent Auditor's Report to the Members of TJ International (Holdings) Limited

Opinion

We have audited the financial statements of TJ International (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group's and the parent company's affairs as at 30 November 2023 and of the group's profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's 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 group and parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.

 

TJ International (Holdings) Limited

Independent Auditor's Report to the Members of TJ International (Holdings) Limited

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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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 group’s and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

 

TJ International (Holdings) Limited

Independent Auditor's Report to the Members of TJ International (Holdings) Limited

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to acts by the company which were contrary to applicable laws and regulations, including fraud.

We considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102 and Companies Act 2006) and the relevant tax compliance regulations in the UK.

As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity’s ability to continue operating and the risk of material misstatement to the accounts. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Reviewed legal and professional costs to identify legal costs in respect of non compliance;
• Enquiries with management whether there have been any known instances, allegations or suspicions of fraud or non compliance with laws and regulations.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent financial reporting. Our procedures involved the following;
• Review of nominal journal entries for reasonableness;
• Review of significant accounting estimates for bias;
• Review of post year end recoverability of WIP and debtor balances.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. 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, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

TJ International (Holdings) Limited

Independent Auditor's Report to the Members of TJ International (Holdings) Limited

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.

......................................
Duncan Leslie (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

28 November 2024

 

TJ International (Holdings) Limited

Consolidated Profit and Loss Account

Year Ended 30 November 2023

Note

2023
£

2022
£

Turnover

3

15,398,384

15,764,126

Cost of sales

 

(12,386,285)

(13,490,474)

Gross profit

 

3,012,099

2,273,652

Distribution costs

 

(838,958)

(782,560)

Administrative expenses

 

(1,264,578)

(1,238,460)

Other operating income

506

-

Operating profit

4

909,069

252,632

Income from shares in group undertakings

 

-

6,757

Interest payable and similar expenses

8

(577,310)

(273,016)

   

(577,310)

(266,259)

Profit/(loss) before tax

 

331,759

(13,627)

Tax on profit/(loss)

9

(126,767)

157,735

Profit for the financial year

 

204,992

144,108

Profit/(loss) attributable to:

 

Owners of the company

 

204,992

144,108

The group has no recognised gains or losses for the year other than the results above.

 

TJ International (Holdings) Limited

Consolidated Balance Sheet

30 November 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

10

619,831

796,380

Tangible assets

11

5,071,184

5,680,668

 

5,691,015

6,477,048

Current assets

 

Stocks

13

1,121,157

1,079,272

Debtors

14

3,831,239

4,236,999

Cash at bank and in hand

 

84,388

55,023

 

5,036,784

5,371,294

Creditors: Amounts falling due within one year

16

(6,871,646)

(7,549,806)

Net current liabilities

 

(1,834,862)

(2,178,512)

Total assets less current liabilities

 

3,856,153

4,298,536

Creditors: Amounts falling due after more than one year

16

(3,276,127)

(3,737,622)

Provisions for liabilities

19

(479,126)

(352,359)

Net assets

 

100,900

208,555

Capital and reserves

 

Called up share capital

21

300,400

400,000

Capital redemption reserve

99,600

-

Profit and loss account

(299,100)

(191,445)

Equity attributable to owners of the company

 

100,900

208,555

Shareholders' funds

 

100,900

208,555

Approved and authorised by the Board on 26 November 2024 and signed on its behalf by:
 

.........................................
Mr A P Watts
Director

Company Registration Number: 11113630

 

TJ International (Holdings) Limited

Balance Sheet

30 November 2023

Note

2023
£

2022
£

Fixed assets

 

Investments

12

1,801,474

1,801,474

Current assets

 

Debtors

14

69,700

163,973

Cash at bank and in hand

 

2,742

32,420

 

72,442

196,393

Creditors: Amounts falling due within one year

16

(1,201,428)

(1,087,320)

Net current liabilities

 

(1,128,986)

(890,927)

Total assets less current liabilities

 

672,488

910,547

Creditors: Amounts falling due after more than one year

16

-

(90,762)

Net assets

 

672,488

819,785

Capital and reserves

 

Called up share capital

21

300,400

400,000

Capital redemption reserve

99,600

-

Profit and loss account

272,488

419,785

Shareholders' funds

 

672,488

819,785

The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a profit after tax for the financial year of £165,350 (2022: profit of £109,979).

Approved and authorised by the Board on 26 November 2024 and signed on its behalf by:
 

.........................................
Mr A P Watts
Director

Company Registration Number: 11113630

 

TJ International (Holdings) Limited

Consolidated Statement of Changes in Equity

Year Ended 30 November 2023

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 December 2022

400,000

-

(191,445)

208,555

Profit for the year

-

-

204,992

204,992

Total comprehensive income

-

-

204,992

204,992

Dividends

-

-

(165,000)

(165,000)

Purchase of own share capital

(99,600)

99,600

(147,647)

(147,647)

At 30 November 2023

300,400

99,600

(299,100)

100,900

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 December 2021

400,000

-

(225,553)

174,447

Profit for the year

-

-

144,108

144,108

Total comprehensive income

-

-

144,108

144,108

Dividends

-

-

(110,000)

(110,000)

At 30 November 2022

400,000

-

(191,445)

208,555

 

TJ International (Holdings) Limited

Statement of Changes in Equity

Year Ended 30 November 2023

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 December 2022

400,000

-

419,785

819,785

Profit for the year

-

-

165,350

165,350

Total comprehensive income

-

-

165,350

165,350

Dividends

-

-

(165,000)

(165,000)

Purchase of own share capital

(99,600)

99,600

(147,647)

(147,647)

At 30 November 2023

300,400

99,600

272,488

672,488

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 December 2021

400,000

-

419,806

819,806

Profit for the year

-

-

109,979

109,979

Total comprehensive income

-

-

109,979

109,979

Dividends

-

-

(110,000)

(110,000)

At 30 November 2022

400,000

-

419,785

819,785

 

TJ International (Holdings) Limited

Consolidated Statement of Cash Flows

Year Ended 30 November 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

204,992

144,108

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

1,050,619

913,688

Loss on disposal of tangible assets

7,456

-

Finance income

-

(6,757)

Finance costs

8

577,310

273,016

Income tax expense

9

126,767

(157,735)

 

1,967,144

1,166,320

Working capital adjustments

 

Increase in stocks

13

(41,885)

(309,242)

Decrease/(increase) in trade debtors

14

407,205

(985,420)

Increase in trade creditors

16

62,480

434,505

Increase in deferred income, including government grants

 

-

150,000

Cash generated from operations

 

2,394,944

456,163

Income taxes (paid)/received

9

(1,445)

43,960

Net cash flow from operating activities

 

2,393,499

500,123

Cash flows from investing activities

 

Interest received

-

6,757

Acquisitions of tangible assets

(272,042)

(326,598)

Net cash flows from investing activities

 

(272,042)

(319,841)

Cash flows from financing activities

 

Interest paid

8

(577,310)

(273,016)

Payments for purchase of own shares

 

(147,647)

-

Repayment of bank borrowing

 

(150,000)

(184,691)

Repayment of other borrowing

 

(18,507)

(71,139)

Payments to finance lease creditors

 

(721,264)

(82,750)

Dividends paid

(165,000)

(110,000)

Net cash flows from financing activities

 

(1,779,728)

(721,596)

Net increase/(decrease) in cash and cash equivalents

 

341,729

(541,314)

Cash and cash equivalents at 1 December

 

(2,677,790)

(2,136,476)

Cash and cash equivalents at 30 November

 

(2,336,061)

(2,677,790)

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
c/o TJ Books Limited
Trecerus Industrial Estate
Padstow
Cornwall
PL28 8RW
United Kingdom

These financial statements were authorised for issue by the Board on 26 November 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of disclosure exemptions

FRS 102 grants a qualifying entity exemptions from the full requirements of FRS102. The following exemptions have been taken in these financial statements as the company is deemed to be a qualifying entity.

The company has taken advantage of the exemption, under FRS102 paragraph 1.12(b), from preparing a Statement of Cash Flows on the basis that it is a qualifying entity and the company's cash flows in its own consolidated financial statements. The company is also taking exemption from disclosure of key management personnel compensation and exemption from disclosure of related party transactions entered into between the company and other members of the TJ International (Holdings) Limited group.

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

Going concern

The directors acknowledge the group's net current liability position of £2,178,512 at the year-end date (2021 - £1,773,358). The group funds its working capital needs through an invoice discounting facility. The group has traded within this facility during the year and expects to in future periods.

During the year sales increased by 14% over the previous year. The general economic downturn had an effect during the year, decreasing volumes and increasing costs.

During 2021, the directors arranged additional external finance through the Coronavirus Business Interruption Loan scheme to support cash-flow. This is continuing to be repaid on a monthly basis.

The directors acknowledge the group's net current liability position of £1,834,862 at the year end date (2023 - £2,178,512). The group funds its working capital needs through an invoice discounting facility. The group has traded within this facility during the year and expects to in future periods.

During the year sales decreased by 2% over the previous year. The general economic downturn had an effect during the year, decreasing volumes and increasing costs. Cash, profits and net assets are expected to be sufficient for the group to continue to trade. Forecasts show income for the coming 12 months to be an increase on the 2024 figures, and profits are expected to be made. The Directors will continue to manage cash closely in order to be able to pay debts when they are due.

The trading company held cash of £82k at year end and invoice finance facility of £2.4m. Cash flow forecasts for the next 18 months show the company's bank balance to improve over the year end balance. The group is currently holding some additional cash in the parent company in the event that there is a sudden down turn in trade, or this will be used to pay off loans if it is not needed.

Post year end management accounts to September 2024 show the group with a positive EBITDA of £514k and the group is still projecting to make a profit for the 2024 financial year. Sales for the first six months of the year were around £1.5m per month and the Directors are forecasting an increase in activity in the final three months of the year, in line with the normal seasonality trend of the business. The group’s invoice discounting facility liability of £1.2m as at September 2024 has also improved on the year end position.

Post year end the group purchased the trade and assets of a second printing business to create a more robust business model. Production will continue in Padstow with the merged company assets being purchased by TJ Books Limited. The merger will significantly increase headline sales without a corresponding significant change to the fixed cost base of the business. One off costs were incurred in the short term relocating operations to Padstow and additional asset finance was secured to purchase the printing presses necessary to meet the increased sales demand. The Directors believe this transaction will be very positive for the business in the medium term leading to improved profitability and cash-flow.

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

The main risk in the projections prepared is unexpected reductions in sales volume which would impact the ability of the group to finance its debts. The directors have completed sensitivity analysis and are satisfied that sales volume could reduce by 10% without any significant impact on the balance. If sales volume were to reduce further the Directors would look to once again re-align the businesses cost basis with the level of activity. The group also has access to additional asset finance if required to support short term cash-flow.

On the basis of these forecasts and analysis, the directors remain confident that the group will continue to be a going concern for a period of at least 12 months from the date of approving these financial statements. The accounts have accordingly been prepared on a going concern basis.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 November 2023.

As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full. Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

Judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, which are described in this note, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historically known factors and experience.

Any estimates and underlying assumptions used by management such as depreciation rates are reviewed on an ongoing basis. Any revision deemed to be required to any accounting estimates would be recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. A key judgement is considered to be the estimated useful economic life of Goodwill. Management believe a life of 20 years is appropriate based on the long term relationships in place with key customers.

Revenue recognition

Turnover represents amounts invoiced in respect of printing and binding books during the year, net of value added tax.

Revenue in respect of finished goods is recognised when goods are despatched.

Government grants

Government grants are recognised as income when they are receivable and all of the performance conditions imposed by the grant have been met, in accordance with the performance model.

Until such time as the performance conditions are met, government grants are recorded as deferred income on the balance sheet.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold improvements

5 years straight line

Furniture, fittings and equipment

5 years straight line

Other property, plant and equipment

3 - 10 years straight line

Motor vehicles

20% reducing balance

Goodwill

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full
financial year following the acquisition and in other periods if events or changes in circumstances
indicate that the carrying value may not be recoverable.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10 - 20 years straight line

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. Dividends on equity securities are recognised in income when receivable.

Stocks

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow
moving stocks. Net realisable value is based on selling price less anticipated costs to completion and
selling costs.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

 

3

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

15,398,384

15,764,126

The analysis of the group's Turnover for the year by market is as follows:

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

2023
£

2022
£

UK

14,803,123

14,443,201

Europe

21,075

14,745

Rest of world

574,186

1,306,180

15,398,384

15,764,126

4

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

874,070

737,139

Amortisation expense

176,549

176,549

Foreign exchange losses

182

243

Operating lease expense - property

267,177

243,121

Operating lease expense - other

377,611

625,385

Loss on disposal of property, plant and equipment

7,456

-

5

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

4,082,853

4,214,033

Social security costs

372,025

407,343

Pension costs, defined contribution scheme

41,637

118,068

4,496,515

4,739,444

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Sales

3

3

Production

103

105

Administration and support

39

41

145

149

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

6

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

78,590

111,982

Contributions paid to money purchase schemes

(71,788)

4,000

6,802

115,982

During the year the group released a previous accrual for Directors' pension payments resulting in a credit to the profit and loss account.

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

2

2

7

Auditor's remuneration

2023
£

2022
£

Audit of these financial statements

3,050

2,500


 

8

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts, invoice financing and borrowings

187,768

118,142

Interest on obligations under finance leases and hire purchase contracts

377,682

132,124

Other interest payable

11,860

22,750

577,310

273,016

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

9

Taxation

Tax charged/(credited) in the profit and loss account

2023
 £

2022
 £

Deferred taxation

Arising from origination and reversal of timing differences

126,767

(157,735)

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 23% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit/(loss) before tax

331,759

(13,627)

Corporation tax at standard rate

76,305

(2,589)

Effect of expense not deductible in determining taxable profit (tax loss)

42,918

36,557

Deferred tax expense/(credit) relating to changes in tax rates or laws

10,141

(37,857)

Decrease from effect of tax incentives

(2,597)

(150,103)

Deferred tax credit from unrecognised tax loss or credit

-

(3,743)

Total tax charge/(credit)

126,767

(157,735)

Deferred tax

Group

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Accelerated tax depreciation

-

969,317

Short term timing differences

-

(4,983)

Tax losses carried forward

-

(485,208)

-

479,126

2022

Asset
£

Liability
£

Accelerated tax depreciation

-

1,106,221

Short term timing differences

-

(23,304)

Tax losses carried forward

-

(730,558)

-

352,359

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

10

Intangible assets

Group

Goodwill
 £

Total
£

Cost or valuation

At 1 December

2,170,742

2,170,742

At 30 November 2023

2,170,742

2,170,742

Amortisation

At 1 December

1,374,362

1,374,362

Amortisation charge

176,549

176,549

At 30 November 2023

1,550,911

1,550,911

Carrying amount

At 30 November 2023

619,831

619,831

At 30 November 2022

796,380

796,380

Amortisation of goodwill is presented in administrative expenses.

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

11

Tangible assets

Group

Leasehold improvements
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other property, plant and equipment
 £

Total
£

Cost or valuation

At 1 December

75,672

1,054,388

153,717

11,664,959

12,948,736

Additions

-

10,289

-

261,753

272,042

Disposals

-

-

-

(8,825)

(8,825)

At 30 November 2023

75,672

1,064,677

153,717

11,917,887

13,211,953

Depreciation

At 1 December

40,422

786,302

14,193

6,427,151

7,268,068

Charge for the year

-

93,339

27,905

752,826

874,070

Eliminated on disposal

-

-

-

(1,369)

(1,369)

At 30 November 2023

40,422

879,641

42,098

7,178,608

8,140,769

Carrying amount

At 30 November 2023

35,250

185,036

111,619

4,739,279

5,071,184

At 30 November 2022

35,250

268,086

139,524

5,237,808

5,680,668

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Other property, plant and equipment

3,466,588

3,454,985

Motor vehicles

139,524

64,218

 

3,606,112

3,519,203

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

12

Investments

Group

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

TJ Books Limited*

Trecerus Industrial Estate
Padstow
Cornwall
PL28 8RW

Ordinary

100%

100%

 

England and Wales

     

TJI Limited

Trecerus Industrial Estate
Padstow
Cornwall
PL28 8RW

Ordinary

100%

100%

 

England and Wales

     

* indicates direct investment of the company

Subsidiary undertakings

TJ Books Limited

The principal activity of TJ Books Limited is printing, binding and related services.

TJI Limited

The principal activity of TJI Limited is that of a dormant company.

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

Company

2023
£

2022
£

Investments in subsidiaries

1,801,474

1,801,474

Subsidiaries

£

Cost or valuation

At 1 December 2022

1,801,474

At 30 November 2023

1,801,474

Carrying amount

At 30 November 2023

1,801,474

At 30 November 2022

1,801,474

13

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Work in progress

526,012

309,353

-

-

Stocks

595,145

769,919

-

-

1,121,157

1,079,272

-

-

14

Debtors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Trade debtors

 

3,023,111

3,308,467

69,700

-

Other debtors

 

463,742

728,811

-

163,973

Prepayments

 

287,221

144,001

-

-

Income tax asset

9

57,165

55,720

-

-

 

3,831,239

4,236,999

69,700

163,973

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

15

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash on hand

131

190

-

-

Cash at bank

84,257

54,833

2,742

32,420

84,388

55,023

2,742

32,420

Invoice financing

(2,420,449)

(2,732,813)

-

-

Cash and cash equivalents in statement of cash flows

(2,336,061)

(2,677,790)

2,742

32,420

16

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Loans and borrowings

17

3,268,712

4,155,722

72,255

-

Trade creditors

 

2,812,909

2,749,830

-

-

Amounts due to group undertakings

23

-

-

1,084,219

1,073,212

Social security and other taxes

 

95,126

86,916

-

-

Outstanding defined contribution pension costs

 

19,484

19,099

-

-

Other creditors

 

172,006

114,003

44,954

14,108

Accrued expenses

 

353,409

424,236

-

-

Deferred income

 

150,000

-

-

-

 

6,871,646

7,549,806

1,201,428

1,087,320

Due after one year

 

Loans and borrowings

17

3,009,533

3,324,658

-

90,762

Deferred income

 

-

150,000

-

-

Other creditors

 

266,594

262,964

-

-

 

3,276,127

3,737,622

-

90,762

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

17

Loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

212,500

362,500

-

-

Finance lease and HP liabilities

2,797,033

2,871,396

-

-

Other borrowings

-

90,762

-

90,762

3,009,533

3,324,658

-

90,762

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Current loans and borrowings

Bank borrowings

150,000

150,000

-

-

Invoice discounting

2,420,449

2,732,813

-

-

Finance lease and HP liabilities

626,008

1,272,909

-

-

Other borrowings

72,255

-

72,255

-

3,268,712

4,155,722

72,255

-

The finance lease and HP liabilities of £3,423,041 (2022 - £4,144,305) are secured against the assets to which they relate. Invoice financing liabilities provided by Close Brothers Limited are secured by a fixed and floating charge over the assets of the company created on 24 October 2022. The invoice financing facility is denominated in GBP and the discount rate on the facility is base rate + 2%. A fixed and floating charge is also held by Lloyds Tsb Bank PLC dated 3 April 2023 and Andrew Vosper dated 22 December 2017.

Group

Bank borrowings

The bank borrowing is denominated in GBP with a nominal interest rate of 1.45% plus base rate, and the final instalment is due on 16 April 2026. The carrying amount at year end is £362,500 (2022 - £512,500).

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

18

Obligations under leases and hire purchase contracts

Group

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

988,605

1,234,884

Later than one year and not later than five years

3,318,462

2,981,857

Later than five years

80,586

591,750

4,387,653

4,808,491

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

-

58,750

The amount of non-cancellable operating lease payments recognised as an expense during the year was £644,788 (2022 - £785,375).

19

Deferred tax and other provisions

Group

Deferred tax
£

At 1 December 2022

(352,359)

Increase (decrease) in existing provisions

(126,767)

At 30 November 2023

(479,126)

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

20

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £41,637 (2022 - £118,068).

Contributions totalling £19,484 (2022 - £19,099) were payable to the scheme at the end of the year and are included in creditors.

21

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

300,400

300,400

400,000

400,000

         

On 20/01/2023 the company repurchased 99,600 £1 shares for £147,647. The shares were subsequently cancelled.

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

22

Analysis of changes in net debt

Group

At 1 December 2022
£

Financing cash flows
£

At 30 November 2023
£

Cash and cash equivalents

Cash

55,023

29,365

84,388

Invoice financing

(2,732,813)

312,364

(2,420,449)

(2,677,790)

341,729

(2,336,061)

Borrowings

Long term borrowings

(362,500)

150,000

(212,500)

Short term borrowings

(150,000)

-

(150,000)

Lease and HP liabilities

(4,144,305)

721,264

(3,423,041)

Other borrowings

(90,762)

18,507

(72,255)

(4,747,567)

889,771

(3,857,796)

 

(7,425,357)

1,231,500

(6,193,857)

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

23

Related party transactions

Group

2023

At 1 December 2022
£

Payments
to director
£

Repayments by director
£

At 30 November 2023
£

Director 3

DLA

9,338

56,004

(92,500)

(27,158)

-

-

-

-

 

9,338

56,004

(92,500)

(27,158)

       

Director 4

DLA

(7,119)

71,820

(82,500)

(17,799)

-

-

-

-

 

(7,119)

71,820

(82,500)

(17,799)

       

 

2022

At 1 December 2021
£

Payments to director
£

Repayments by director
£

Interest charged
£

Ceased to be a director
£

At 30 November 2022
£

Director 1

DLA

(190,350)

9,518

-

(9,518)

190,350

-

Loan

(323)

323

-

-

-

-

 

(190,673)

9,841

-

(9,518)

190,350

-

         

Director 2

DLA

(72,619)

3,636

-

(3,631)

72,614

-

Loan

(161,580)

77,576

-

(6,757)

90,761

-

 

(234,199)

81,212

-

(10,388)

163,375

-

         

Director 3

DLA

-

64,558

(55,220)

-

-

9,338

 

-

64,558

(55,220)

-

-

9,338

         

Director 4

DLA

-

48,101

(55,220)

-

-

(7,119)

 

-

48,101

(55,220)

-

-

(7,119)

         

 

 

TJ International (Holdings) Limited

Notes to the Financial Statements

Year Ended 30 November 2023

Key management personnel

The group do not consider any employees other than statutory directors, whose remuneration is disclosed in note 7, to be key management personnel within the definition contained in FRS102.

Transactions with directors

The Directors' loan accounts are interest free and payable to directors on demand.

24

Parent and ultimate parent undertaking

The ultimate controlling party is the Directors.