Company registration number 00114650 (England and Wales)
JOB EARNSHAW & BROS.LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
JOB EARNSHAW & BROS.LIMITED
COMPANY INFORMATION
Directors
A D Earnshaw
D S Earnshaw
P Earnshaw
Secretary
K E Earnshaw
Company number
00114650
Registered office
Main Offices
Stocksmoor Road
Midgley
Wakefield
WF4 4JG
Auditor
Parsons Accountants Ltd
Unit 2 Silkwood Park
Fryers Way
Ossett
WF5 9TJ
JOB EARNSHAW & BROS.LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 31
JOB EARNSHAW & BROS.LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Objectives and Activities
The primary objective and activities of the Company are as a timber merchant selling fencing, landscaping, and construction products to trade and retail. We also manufacture bespoke joinery products and panels, and continue to have income streams from forestry services, Little Acorn Café, and property rentals.
Our key entry points to market are the retail centres at Midgley and Brigg, internet sales, and the trade sales desk based in Midgley. Geographically the business trades within an approximate 50-mile radius of the two sites.
Principal risks and uncertainties
Management continually monitors the key risks facing the company together with assessing the controls used for managing these risks. The principal risks and uncertainties facing the company are as follows:
Liquidity risk – the company manages its cash and borrowings based on forward forecasting, and within facilities provided by our bankers to meet its needs and minimise costs.
Cashflow risks – These are managed by strict management controls and the preparation and review of accurate and timely management information. Funding requirements are reviewed on a regular basis with supplier and customer terms and stock levels agreed to minimise working capital needs.
Credit risk – As the company’s exposure to individual customers is low, the risk of customer losses having a major impact is relatively small. The company works hard to maintain strong relationships with existing key customers. In addition, the company has set guidelines to ensure that the sale of goods & services takes place to customers with suitable creditworthiness and that the necessary reserves are made for doubtful debts. If a credit limit for a customer is valued by an independent valuer, this assessment is used. In cases where there is no independent credit assessment, a risk assessment of the customer’s creditworthiness is made mainly based on the customer’s financial position.
Defined benefit pension scheme - This continues to be a large draw on our investment capital and senior management time. Regulatory pressures drive increased running costs in addition to both regular and profit linked deficit reduction payments. In addition, the annual re-measurement of the scheme liabilities and related notional interest can have a significant impact on the company's financial statements year on year. The company appointed an Independent trustee in 2023 to introduce additional expertise. A re-balancing of the scheme portfolio is currently being undertaken, in line with guidance from the Pensions Regulator, which has led to some of the pension woodland assets being sold and the proceeds moved to LDI funds. At the end of the year the liability on the pension scheme is £1,685k (2023: £1,955k).
Competitor pressure – management recognises the competition operating within this sector and manages the risk by prioritising a superior product, first class service throughout the business and competitive pricing coupled with quick turnaround and prompt delivery.
Key people – The ability to retain current staff and recruit new staff is crucial for the company’s future development. There is a risk that the loss of a board member, management or key person could mean that important knowledge is lost, or that the execution of the Company’s business strategy is negatively affected.
JOB EARNSHAW & BROS.LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Achievements and Performance
The 2023 – 2024 financial year has been a difficult one. Many of the adverse conditions outlined last year have continued. Whilst inflation has come down, we have seen little increase in customer confidence to spend or actual levels of disposable income.
Retail Sales - A disappointing year on the retail side. We fought hard to maintain customer numbers but were constantly hit by factors outside our control. The whole of the financial year was weather affected, grey wet winter days, a non-existent spring season and wet summer, led to lower customer numbers, very low sales of inner garden items such as furniture, and a general apathy towards gardening. When coupled with a tough economic environment the garden was not seen as the place for discretionary spending. We maintained reasonable sales within the area previously covered by the Wentworth Centre, running regular deliveries into that area, and still seeing loyalty card sales from that site's previous customers. One further positive note was that we sold more firewood than before, both in delivered loads and collected nets.
Internet Sales - We are still working with a regional based, self-managed option, where enquiries are placed online and we then finalise the product mix, price, and delivery dates via email. The online demand levels have mirrored the counter sales, again impacted by the weather and lower overall trading levels in the sector.
Trade Sales – A similar picture to retail. Poor weather hit the building and agricultural sectors with slow call offs on new build housing projects, and local council work has reduced as the local councils increasingly have no money. Our larger trade customers have remained loyal, and we have maintained regular site work through them. The general market is slow and oversupplied, with the big national sawmill groups offering direct supply into markets they would not normally entertain. We remain hopeful that there will be an uptick in the newbuild housing in the coming year, with a good forward order book awaiting call off. The smaller trade customers have been impacted like our retail centres with low levels of retail spending.
Rental Income – A strategic objective for 2024 has been to generate greater income at the Midgley site from sources outside our current trade. We have consolidated our own operational footprint to release an additional building for rental to three external tenants and further plans are underway to lease out more of the site.
Woodland Management – There have been no changes in our woodland portfolio this year. The triennial valuation has been completed and we have seen an increase in the woodland values (£993k), so we are confident that they remain good assets to hold. We continue to investigate ways to maximise their usage and produce greater returns from them.
JOB EARNSHAW & BROS.LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Financial Review including Key Performance Indicators
The Company focuses primarily on the following key performance indicators:
Turnover growth percentage
Gross margin after direct cost of sales percentage
Profit/(Loss) before tax and exceptional items
Turnover growth percentage – The Company turnover for the year of £5,029k is a decrease of 16.3% and £981k from last year. Some of this was driven by the closure of the Wentworth site in April 2023. A portion of their business has transferred to Midgley but realistically we have lost customers from areas south of that branch. The decrease was particularly sharp in Q1 and, whilst the remaining quarters were still below prior year sales, the position has been improving.
Gross margin after direct cost of sales percentage – The gross profit declined by 1% to 28% of sales driven by the direct labour costs which, although lower in total, increased as a percentage of overall sales. Other costs decreased in line with sales. The margin on direct cost of goods remained flat, despite a decline in the retail mix of business by 3%.
Profit/ (Loss) before tax and exceptional items –The Company returned a net trading loss of £291k (2023 - £58k profit) before taxation and after charging £104k (2023 - £26k) of interest on the pension scheme liability. The loss has been driven primarily by the reduction in turnover.
Cash flow –The Company has maintained a reasonable bank position throughout the year.
Despite the trading loss recorded the company balance sheet remains healthy with positive current and total net assets.
Non-Financial Key Performance Indicators
In the opinion of management there are no non-financial key performance indicators.
Future Prospects
The continued difficult trading conditions have meant increased focus on the structure of the current business, both from a cost and income perspective.
2024-25 will see a continued emphasis on looking at alternative and less seasonal income streams, largely within the rental sector. There will also be a continued focus on streamlining costs with several measures already taken which will only fully impact over the next twelve months.
Hopefully, the macro-economic climate will also be calmer with lower inflation, stable interest rates, and a return in customer confidence to make larger purchases.
A D Earnshaw
Director
20 November 2024
JOB EARNSHAW & BROS.LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company continued to be that of forestry and home grown timber merchants, with an emphasis on the retailing of timber fencing and garden related products.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A D Earnshaw
D S Earnshaw
P Earnshaw
Post reporting date events
There have been no significant events affecting the Company since the year end.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Going Concern
The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt a going concern basis of accounting in preparing the annual financial statements.
JOB EARNSHAW & BROS.LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
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
A D Earnshaw
Director
20 November 2024
JOB EARNSHAW & BROS.LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JOB EARNSHAW & BROS.LIMITED
- 6 -
Opinion
We have audited the financial statements of Job Earnshaw & Bros.Limited (the 'company') for the year ended 30 June 2024 which comprise statement of comprehensive income, balance sheet, statement of changes in equity, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
JOB EARNSHAW & BROS.LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JOB EARNSHAW & BROS.LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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.
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
JOB EARNSHAW & BROS.LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JOB EARNSHAW & BROS.LIMITED (CONTINUED)
- 8 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors, where applicable.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Richard Walker (Senior Statutory Auditor)
For and on behalf of Parsons Accountants Ltd, Statutory Auditor
Chartered Accountants
Unit 2 Silkwood Park
Fryers Way
Ossett
WF5 9TJ
25 November 2024
JOB EARNSHAW & BROS.LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
as restated
Notes
£
£
Turnover
3
5,028,828
6,010,225
Cost of sales
(3,603,287)
(4,249,178)
Gross profit
1,425,541
1,761,047
Distribution costs
(258,085)
(280,244)
Administrative expenses
(1,517,027)
(1,531,783)
Other operating income
171,789
161,519
Operating (loss)/profit
4
(177,782)
110,539
Interest receivable and similar income
8
256
775
Interest payable and similar expenses
9
(113,304)
(53,761)
(Loss)/profit before taxation
(290,830)
57,553
Tax on (loss)/profit
10
105,581
(98,672)
Loss for the financial year
(185,249)
(41,119)
Other comprehensive income
Revaluation of tangible fixed assets
13
993,193
Actuarial gain/(loss) on defined benefit pension schemes
21
261,000
(1,054,923)
Tax relating to other comprehensive income
(272,061)
488,750
Total comprehensive income/(loss) for the year
796,883
(607,292)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
JOB EARNSHAW & BROS.LIMITED
BALANCE SHEET
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
12
19,275
31,778
Tangible assets
13
7,973,434
6,893,353
7,992,709
6,925,131
Current assets
Stocks
14
1,016,065
1,319,649
Debtors
15
733,638
649,007
Cash at bank and in hand
207,688
305,030
1,957,391
2,273,686
Creditors: amounts falling due within one year
16
(1,235,921)
(1,188,049)
Net current assets
721,470
1,085,637
Total assets less current liabilities
8,714,179
8,010,768
Creditors: amounts falling due after more than one year
17
(15,090)
(5,042)
Provisions for liabilities
Deferred tax liability
20
218,959
52,479
Defined benefit pension liability
21
1,685,000
1,955,000
(1,903,959)
(2,007,479)
Net assets
6,795,130
5,998,247
Capital and reserves
Called up share capital
22
20,000
20,000
Revaluation reserve
5,456,214
4,775,707
Capital redemption reserve
36,001
36,001
Profit and loss reserves
1,282,915
1,166,539
Total equity
6,795,130
5,998,247
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 20 November 2024 and are signed on its behalf by:
A D Earnshaw
Director
Company registration number 00114650 (England and Wales)
JOB EARNSHAW & BROS.LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
As restated for the period ended 30 June 2023:
Balance at 1 July 2022
20,000
4,775,707
36,001
1,793,831
6,625,539
Year ended 30 June 2023:
Loss
-
-
-
(41,119)
(41,119)
Other comprehensive income:
Actuarial losses on defined benefit plans
-
-
-
(1,054,923)
(1,054,923)
Tax relating to other comprehensive income
-
-
488,750
488,750
Total comprehensive income
-
-
-
(607,292)
(607,292)
Dividends
11
-
-
-
(20,000)
(20,000)
Balance at 30 June 2023
20,000
4,775,707
36,001
1,166,539
5,998,247
Year ended 30 June 2024:
Loss
-
-
-
(185,249)
(185,249)
Other comprehensive income:
Revaluation of tangible fixed assets
-
993,193
-
-
993,193
Actuarial gains on defined benefit plans
-
-
-
261,000
261,000
Tax relating to other comprehensive income
-
(204,561)
-
(67,500)
(272,061)
Total comprehensive income
-
788,632
-
8,251
796,883
Transfers
-
(108,125)
-
108,125
-
Balance at 30 June 2024
20,000
5,456,214
36,001
1,282,915
6,795,130
JOB EARNSHAW & BROS.LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
26
(48,707)
(237,879)
Interest paid
(9,304)
(5,410)
Income taxes paid
(38,091)
Net cash outflow from operating activities
(58,011)
(281,380)
Investing activities
Purchase of intangible assets
(26,745)
Purchase of tangible fixed assets
(83,918)
(55,336)
Proceeds from disposal of tangible fixed assets
23,995
5,071
Purchase of tangible fixed assets on hire purchase
(48,990)
-
Government grants
25,340
19,855
Interest received
256
775
Rental income
146,499
141,664
Net cash generated from investing activities
63,182
85,284
Financing activities
Repayment of bank loans
(65,042)
(61,405)
Payment of finance leases obligations
(37,471)
(8,333)
Repayment of pension liability
-
(87,564)
Dividends paid
(20,000)
Net cash used in financing activities
(102,513)
(177,302)
Net decrease in cash and cash equivalents
(97,342)
(373,398)
Cash and cash equivalents at beginning of year
305,030
678,428
Cash and cash equivalents at end of year
207,688
305,030
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
1
Accounting policies
Company information
Job Earnshaw & Bros.Limited is a private company limited by shares incorporated in England and Wales. The registered office is Main Offices, Stocksmoor Road, Midgley, Wakefield, WF4 4JG.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention modified to include items at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Although the company has made trading losses for the last two years the balance sheet remains healthy with positive net current assets of £0.7m (2023 - £1.1m) and total net assets of £6.8m (2023 - £6.0m). This is further underpinned by an overdraft facility with Barclays Bank of £0.3m (2023 - £0.3m). Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (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.
Rental income is recognised on a straight line basis over the duration of the rental agreement.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Website and licences
over estimated useful life of between 3 and 5 years
Amortisation charges are included within administrative expenses in the statement of comprehensive income.
1.5
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.
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
held at fair value
Leasehold improvements
5% on cost
Plant and equipment
25% on cost and 25% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Depreciation charges are included within administrative expenses in the statement of comprehensive income.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price 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. Cost is calculated using the first in first out method.
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.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's 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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including 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.
1.10
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.
1.11
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.
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 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
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.
The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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.
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 18 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Retirement benefit obligations
The company operates a defined benefit scheme which is valued annually by third party valuers. Asset valuations are based on fair value of assets. The valuation of liabilities of the scheme are based on statistical and actuarial calculations, using various assumptions including discount rates, future salary and pension increases, life expectancy of scheme members and cash commutations. The actuarial assumptions may differ materially from actual experience due to changes in economic and market conditions, variations in actual mortality, higher or lower cash withdrawal rates and other changes in factors assessed. Any of these differences could impact the assets and liabilities recognised in the balance sheet in future periods.
Assessing indicators of impairment
In assessing whether there have been any indicators of impairment of assets the directors have considered both external and internal sources of information including market conditions, counterparty credit rating, previous experience of recoverability and where applicable the ability of the asset to be operated as planned.
Determining the future demand of stock items to calculate a stock provision
The stock of the Company, by its nature, has a long life and although there are conditions which give rise to a degradation of the product (such as extremely high temperatures) the controls in place in the stock cycle are sufficient to ensure that stock write-offs are minimal. The Company uses the seconds area of its sales facility to sell product which has reduced quality but is still saleable at a positive margin. The Company is in a subsector of the market which is largely immune from fashionable trends.
The Company has access to historic sales data per stock line which is useful in determining whether a stock provision is required and makes adjustments for new products where there is no historic sales data.
Valuation of freehold property
The Company has a significant asset holding of freehold property which is held under a fair value model and not historic cost convention. The Company engages an independent third party valuer to value the assets on a triennial basis and the last valuation was at 30 June 2024.
In the years that an external valuation is not adopted the directors review the continuing appropriateness of the previous valuation using source data including movement in similar asset classes.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Relating to the principal activity
4,913,663
5,898,613
Third party storage and distribution services
88,807
84,662
Cafe sales
26,358
26,950
5,028,828
6,010,225
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
3
Turnover and other revenue
(Continued)
- 19 -
2024
2023
£
£
Other revenue
Interest income
256
775
Grants received
25,340
19,855
Rental income
146,449
141,664
All turnover arose within the United Kingdom
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Government grants
(25,340)
(19,855)
Depreciation of owned tangible fixed assets
87,251
105,470
Depreciation of tangible fixed assets held under finance leases
11,998
10,625
Profit on disposal of tangible fixed assets
(18,436)
(2,051)
Amortisation of intangible assets
12,503
7,140
Operating lease charges
45,225
38,542
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor:
£
£
For audit services
Audit of the financial statements of the company
14,650
10,017
The company is of medium size and has thus claimed the exemption from disclosing in these financial statements the non-audit fees payable to the auditor.
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
(restated)
2024
2023
Number
Number
Distribution and selling
43
47
Production
11
10
Administration
10
10
Total
64
67
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
6
Employees
(Continued)
- 20 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,390,606
1,454,438
Social security costs
126,517
129,672
Pension costs
66,843
55,149
1,583,966
1,639,259
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
119,945
123,969
Company pension contributions to defined contribution schemes
12,217
10,396
132,162
134,365
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
The number of directors for whom retirement benefits are accruing under defined benefit schemes amounted to 3 (2023 - 3).
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
256
775
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
256
775
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
7,657
5,410
Other finance costs:
Interest on finance leases and hire purchase contracts
1,647
-
Net interest on the defined benefit pension scheme
104,000
26,000
Profit related pension payments
22,351
113,304
53,761
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(19,368)
Deferred tax
Origination and reversal of timing differences
(105,581)
118,040
Total tax (credit)/charge
(105,581)
98,672
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(290,830)
57,553
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(72,708)
10,935
Tax effect of expenses that are not deductible in determining taxable profit
29,504
(46,626)
Unutilised tax losses carried forward
31,023
Adjustments in respect of prior years
(19,368)
Fixed asset timing differences
7,036
Deferred tax adjustments in respect of prior years
(33,974)
130% super deduction
(2,368)
Deferred tax movement
118,040
Defined benefit pension scheme contributions
(28,403)
Taxation (credit)/charge for the year
(105,581)
98,672
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
(Continued)
- 22 -
In addition to the amount (credited)/charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Current tax arising on:
Actuarial differences recognised as other comprehensive income
67,500
(488,750)
Deferred tax arising on:
Revaluation of property
204,561
-
272,061
(488,750)
The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the United Kingdom of 25% (2023 - 19%).
The UK Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom increased from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19% which is the new small profits rate. Where taxable profits are between £50,000 and £250,000 the higher 25% rate applies but with a marginal relief applying as profits increase.
11
Dividends
2024
2023
£
£
Interim paid
20,000
12
Intangible fixed assets
Website and licences
£
Cost
At 1 July 2023 and 30 June 2024
55,120
Amortisation and impairment
At 1 July 2023
23,342
Amortisation charged for the year
12,503
At 30 June 2024
35,845
Carrying amount
At 30 June 2024
19,275
At 30 June 2023
31,778
More information on impairment movements in the year is given in note .
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
13
Tangible fixed assets
Freehold land and buildings
Leasehold improvements
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 July 2023
6,532,820
2,600
799,592
620,160
7,955,172
Additions
52,486
55,350
83,860
191,696
Disposals
(2,600)
(13,289)
(45,615)
(61,504)
Revaluation
993,193
993,193
At 30 June 2024
7,578,499
841,653
658,405
9,078,557
Depreciation and impairment
At 1 July 2023
2,600
617,795
441,424
1,061,819
Depreciation charged in the year
32,648
66,601
99,249
Eliminated in respect of disposals
(2,600)
(10,751)
(42,594)
(55,945)
At 30 June 2024
639,692
465,431
1,105,123
Carrying amount
At 30 June 2024
7,578,499
201,961
192,974
7,973,434
At 30 June 2023
6,532,820
181,797
178,736
6,893,353
The net carrying value of tangible fixed assets includes £49,743 (2023: £18,467) in respect of assets held under finance leases or hire purchase contracts.
Cost or valuation at 30 June 2024 is represented by:
Freehold land and buildings
Leasehold improvements
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Valuation in 2016
3,681,918
-
-
-
3,681,918
Valuation in 2018
59,010
-
-
-
59,010
Valuation in 2021
1,377,750
-
-
-
1,377,750
Valuation in 2024
993,193
-
-
-
993,193
Cost
1,466,628
-
841,653
658,405
2,966,686
7,578,499
-
841,653
658,405
9,078,557
If freehold land and buildings had not been revalued they would have been included at the following historical cost:
2024
2023
£
£
Cost
1,466,628
1,414,142
Aggregate depreciation
392,885
364,165
Freehold land and buildings were valued on an open market value basis on 30 June 2024 by Wilbys.
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
14
Stocks
2024
2023
£
£
Raw materials and consumables
136,535
182,723
Work in progress
9,557
6,566
Finished goods and goods for resale
869,973
1,130,360
1,016,065
1,319,649
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
549,727
528,298
Corporation tax recoverable
19,368
19,368
Other debtors
612
Prepayments and accrued income
163,931
101,341
733,638
649,007
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
60,000
Obligations under finance leases
19
12,926
6,699
Trade creditors
786,365
707,034
Taxation and social security
158,125
165,815
Other creditors
13,314
8,000
Accruals and deferred income
265,191
240,501
1,235,921
1,188,049
The finance lease creditor is secured against the assets in question.
The Company is subject to a legal charge dated 3 April 2014 whereby Barclays Bank PLC are the counterparty. The legal charge is one of a mortgage over the freehold property of 16.1 acres of land at the registered office of the Company.
The Company is subject to a debenture dated 19 September 2012 where Barclays Bank PLC is the counterparty. The legal charge is a fixed and floating charge over the undertaking and all property assets, present and future, including goodwill, book debts, uncalled share capital, buildings, fixtures and fittings and plant and machinery, is secured against all monies owed to the bank in any manner (including interest, commissions, fees and charges), either by the Company directly or where jointly held with another entity.
The Company is subject to a mortgage dated 29 June 2012 where Barclays Bank PLC is the counterparty. The legal charge against the land lying to the west of the registered office of the Company is secured against all monies due to the bank in any manner whatsoever.
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
5,042
Obligations under finance leases
19
15,090
15,090
5,042
The finance lease creditor is secured against the assets in question.
18
Loans and overdrafts
2024
2023
£
£
Bank loans
65,042
Payable within one year
60,000
Payable after one year
5,042
The long-term loans were repaid within the year.
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
12,926
6,699
In two to five years
15,090
28,016
6,699
Finance lease obligations represent rentals payable by the company for certain items of motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The obligation under finance lease and hire purchase contracts are secured by a charge on the assets purchased under those agreements.
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
91,685
90,133
Other timing differences
(107,133)
-
Freehold property
655,657
451,096
Retirement benefit obligations
(421,250)
(488,750)
218,959
52,479
2024
Movements in the year:
£
Liability at 1 July 2023
52,479
Credit to profit or loss
(105,581)
Charge to other comprehensive income
272,061
Liability at 30 June 2024
218,959
The deferred tax liability in relation to accelerated capital allowances set out above is expected to reverse over the useful lives of the assets to which the accelerated capital allowances relate.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
66,843
55,149
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.
Contributions totalling £10,327 (2023- £8,000) were payable to the fund at the balance sheet date and are included within creditors falling due within one year.
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
21
Retirement benefit schemes
(Continued)
- 27 -
Defined benefit schemes
The company operates a defined benefit scheme for qualifying employees in the United Kingdom.
The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 24 September 2024 by Broadstone, Fellow of the Institute of Actuaries. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.
Under FRS 102 the company is required to disclose the amount and timing of any future deficit contributions that it is committed to paying to the Job Earnshaw & Bros Limited Staff Pension Scheme. These contributions are in the current recovery plan agreed between the company and the pension scheme trustees.
The scheme was closed to new members in November 2003, and therefore, under the projected unit method, the current service costs will increase as the members of the scheme approach retirement. The scheme ceased all future service benefit accrual with effect from 8 November 2010.
The contributions paid for the year were £113,000 (2023: £279,000) and the expected payments in the year ending 30 June 2025 is £123,000.
2024
2023
Key assumptions
%
%
Discount rate
5.20
5.50
Rate of future inflation - (RPI)
3.20
3.15
Rate of increase to deferred pensions
2.60
2.55
Mortality assumptions
2024
2023
Assumed life expectations on retirement at age 65:
Years
Years
Current pensioners
- Males
20.0
20.6
- Females
22.6
23.1
Members not yet retired
- Males
21.3
21.9
- Females
24.0
24.5
Amounts recognised in the profit and loss account
2024
2023
Costs/(income):
£
£
Net interest on net defined benefit liability
104,000
26,000
Total costs
104,000
26,000
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
21
Retirement benefit schemes
(Continued)
- 28 -
Amounts recognised in other comprehensive income
2024
2023
Costs/(income):
£
£
Return on scheme assets excluding interest income
287,000
(2,509,000)
Actuarial changes related to obligations
(26,000)
1,112,000
Total costs/(income)
261,000
(1,397,000)
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:
2024
2023
Liabilities/(assets):
£
£
Present value of defined benefit obligations
6,628,000
6,642,000
Fair value of plan assets
(4,943,000)
(4,687,000)
Deficit in scheme
1,685,000
1,955,000
2024
Movements in the present value of defined benefit obligations
£
Liabilities at 1 July 2023
6,642,000
Benefits paid
(394,000)
Actuarial losses
26,000
Interest cost
354,000
At 30 June 2024
6,628,000
2024
Movements in the fair value of plan assets
£
Fair value of assets at 1 July 2023
(4,687,000)
Interest income
(250,000)
Return on plan assets (excluding amounts included in net interest)
(287,000)
Benefits paid
394,000
Contributions by the employer
(113,000)
At 30 June 2024
(4,943,000)
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
21
Retirement benefit schemes
(Continued)
- 29 -
2024
2023
Fair value of plan assets
£
£
Equity instruments
-
46,000
DGFs
-
220,000
LDI
810,000
342,000
Insured Pensioners
667,000
768,000
Woodland
1,830,000
2,200,000
Corporate Bonds
514,000
941,000
Cash (Cash & Deposits)
1,122,000
170,000
4,943,000
4,687,000
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £10 each
2,000
2,000
20,000
20,000
All shares rank pari passu and have full voting rights. Each share has the right to a discretionary dividend.
23
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
22,698
56,573
Between two and five years
50
12,651
22,748
69,224
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2024
2023
£
£
Within one year
141,618
110,036
Between two and five years
152,195
243,512
293,813
353,548
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
24
Related party transactions
During the year the Company rented units to shareholders totaling £5,085 (2023 - £4,737) and to directors totaling £949 (2023 - £884). In relation to shareholders there was £4,349 (2023 - £4,182) and in relation to directors there was £707 (2023 - £937) outstanding in respect of the transactions at the year-end.
During the year the Company paid consultancy fees to a shareholder totaling £18,683 (2023 - £23,151). There was £nil (2023 - £nil) outstanding in respect of this at the year-end.
During the year the Company declared dividends totaling £nil (2023 - £6,230) on shares held by the directors.
During the year the Company incurred gross wages totaling £102,800 (2023 - £99,586), employers national insurance totaling £9,151 (2023 - £10,627) and employers pension costs of £20,781 (2023 - 10,830) in respect of key management personnel.
25
Ultimate controlling party
The directors consider there to be no single ultimate controlling party.
26
Cash absorbed by operations
2024
2023
£
£
Loss for the year after tax
(185,249)
(41,119)
Adjustments for:
Taxation (credited)/charged
(105,581)
98,672
Finance costs
113,304
31,410
Investment income
(256)
(775)
Government grants
(25,340)
(19,855)
Gain on disposal of tangible fixed assets
(18,436)
(2,051)
Amortisation and impairment of intangible assets
12,503
7,140
Depreciation and impairment of tangible fixed assets
99,249
116,095
Defined benefit pension contributions
(113,000)
-
Rental income
(146,499)
(141,664)
Movements in working capital:
Decrease in stocks
303,584
107,417
(Increase)/decrease in debtors
(84,631)
268,288
Increase/(decrease) in creditors
101,645
(661,437)
Cash absorbed by operations
(48,707)
(237,879)
JOB EARNSHAW & BROS.LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
27
Analysis of changes in net funds
1 July 2023
Cash flows
New finance leases
30 June 2024
£
£
£
£
Cash at bank and in hand
305,030
(97,342)
-
207,688
Borrowings excluding overdrafts
(65,042)
65,042
-
-
Obligations under finance leases
(6,699)
37,471
(58,788)
(28,016)
233,289
5,171
(58,788)
179,672
28
Prior period adjustment
An amount of £216,308 has been reclassified from distribution costs to administrative expenses in the prior year to reflect the appropriate classification of such expenses and ensure consistency and comparability with amounts reported in the current year.
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