REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
CONTENTS OF THE FINANCIAL STATEMENTS |
For The Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Directors' Responsibilities Statement | 7 |
Report of the Independent Auditors | 8 |
Statement of Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Notes to the Financial Statements | 14 |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED |
COMPANY INFORMATION |
For The Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
31 High View Close |
Hamilton Office Park |
Leicester |
Leicestershire |
LE4 9LJ |
BANKERS: |
8-10 Moorgate |
London |
EC2R 6DA |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
STRATEGIC REPORT |
For The Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
Principal activity |
JLG is a manufacturer of aerial work platforms and telehandlers used in a wide variety of construction, agricultural, industrial, institutional and general maintenance applications to position workers and materials at elevated heights. JLG's customers include equipment rental companies, construction contract manufacturing companies and home improvement centers. JLG's competitors range from some of the worlds' largest multi-national construction equipment manufacturers to small single product niche manufacturers. |
JLG Industries (United Kingdom) Ltd is mainly engaged in the sale, distribution and service in the United Kingdom. The machines are purchased from the parent company JLG EMEA B.V. in the Netherlands. |
JLG Industries (United Kingdom) Limited belongs to the group of companies owned directly or indirectly by JLG Industries Inc., a corporation organised under the laws of the Commonwealth of Pennsylvania, United States of America (The JLG Group). The JLG Group is involved in the manufacturing, rental, selling and distribution of aerial work platforms and telehandlers. |
The ultimate parent of JLG Industries Inc. is Oshkosh Corporation (located in 1917 Four Wheel Drive, Oshkosh Wisconsin 54902, United States of America). |
Strategy |
Our focus is to expand our market share in all business areas and focus on process improvements. The sales and service teams are well positioned. The aim is an optimized area coverage, improved coordination of the dealer business and the development of new sales channels. These measures will have a positive effect in the medium term. |
REVIEW OF BUSINESS |
Management was originally anticipating an upturn in the economy and expecting an increase on revenues for 2023 by 5-10%. However, revenues in 2023 have experienced a downturn due to several factors. Firstly, supply chain issues that started in 2022, led to delays in shipments in 2023. Furthermore, highly competitive market, contributed severely to the downturn in sales, namely pressure/influx of Chinese products with cheaper price, higher specification, quicker delivery and extended payment terms. As a result, the turnover went down by 36% from £53,178,235 in 2022 to £33,828,226 in 2023. The decrease in revenues is mainly attributable to the drop in sales of Booms, Scissors and Verticals. |
Net Assets have increased from £9,983,686 in 2022 to £10,704,565 in 2023 due to the above mentioned reasons and as a result of pension movements. |
The key financial and other performance indicators during the year were as follows: |
12 months | 15 months |
2023 | 2022 | Movement |
Turnover | 33,828,226 | 53,178,232 | -36% |
Operating profit | 808,208 | 1,154,281 | -30% |
Profit for the financial year | 921,129 | 854,738 | 8% |
Current assets as % of current liabilities ('quick ratio') |
395% |
292% |
35% |
Average number of employees | 67 | 66 | 2% |
Turnover |
Turnover went down by 36%. This is the result of the change of market conditions (20%) and returning to a 12 month financial year (16%). |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
STRATEGIC REPORT |
For The Year Ended 31 December 2023 |
Operating profit |
The Operating profit decreased during 2023 due to two main factors. First the fiscal year 2022 was an extended financial year of 15 months and 2023 is a 12 month financial year. Secondly, the difficult market conditions reduced revenue and impacted margins. |
Profit for the financial year |
Profits declined financial year 2023 as a result of the decrease in revenues and difficult market conditions on a 12 month basis. |
Current assets as % of current liabilities ('quick ratio') |
The current assets as % of current liabilities ('quick ratio') increased by 35 percent mainly due to the negative cashpool with the parent company as per December 2023. This is classified as amount owed to group undertakings. |
Average number of employees |
The average number of employees remained relatively stable with a total of 67 during 2023. |
Because the company is a division of a larger Group, the directors believe that no further key performance indicators are required to assess the company’s performance. Discussion of KPIs of the division is made in the financial statements of Oshkosh Corporation which are publicly available and it may be obtained from www.oshkoshcorp.com |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Company’s financial position, results of operations and cash flows are subject to various risks, many of which are not exclusively within the Company’s control, which may cause actual performance to differ materially from historical or projected future performance. We aim to carefully balance our objectives and our risk appetite. To control the most significant risks we embedded various risk assessment and evaluations in our processes to identify and mitigate these risks. |
Our markets are highly cyclical |
The access equipment market is highly cyclical and impacted (i) by the strength of economies in general, (ii) by residential and non-residential construction spending, (iii) by the ability of rental companies to obtain third-party financing to purchase revenue generating assets, (iv) by capital expenditures of rental companies in general, including the rate at which they replace aged rental equipment, which is impacted in part by historical purchase levels, (v) by the timing of engine emissions standards changes, and (vi) by other factors, including oil and gas related activity. |
The Company mitigates these risks by diversifying the customer base. Furthermore, the Company stays in close contact with its customers to enable a robust and flexible sales, inventory and operations planning. |
A disruption or termination of the supply of parts, materials, components and final assemblies from third-party suppliers could delay sales of our equipment. |
We have experienced, and may in the future experience, significant disruptions or termination of the supply of some of our parts, materials, components and final assemblies that we obtain from sole source suppliers or subcontractors. We may also incur a significant increase in the cost of these parts, materials, component or final assemblies. These risks are increased in a weak economic environment and when demand increases coming out of an economic downturn. |
We continuously monitor and mitigate the supply chain risk by continuously evaluating and developing our supplier base. By diversifying our supplier portfolio in several areas we aim to minimise heavy dependence and disruptions in our processes. |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
STRATEGIC REPORT |
For The Year Ended 31 December 2023 |
Changes in regulations could adversely affect our business |
Our products are subject to statutory and regulatory requirements. These include environmental requirements applicable to manufacturing and vehicle emission, government contracting regulations and domestic and international trade regulations. A significant change to these regulatory requirements could substantially increase manufacturing costs or impact the size or timing of demand for our products, all of which could make our business results more variable. |
The Company continuously monitors the regulatory landscape. Doing the right thing is critically important to us and is one of the core values of the Company. We follow strict processes and procedures. This enables us to meet or exceed our own internal standards, as well as the requirements set by laws, government regulations and industry standards. We are constantly looking for ways to innovate without sacrificing quality or safety. |
Ukraine war and Covid-19 - Please see the Going Concern section of the Director's Report for a detailed discussion on the effects of the Covid-19 and Ukraine war and the mitigating steps being taken by the Company and Oshkosh Corporation. |
ON BEHALF OF THE BOARD: |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
REPORT OF THE DIRECTORS |
For The Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
DIVIDENDS |
The profit for the year amounted to £720,879 (2022 profit £1,225,762). The impact of total comprehensive income related to the year is a profit of £200,250 which has been added from reserves (2022 profit of £2,080,500). The directors do not recommend the payment of a dividend (2022 - £nil). |
FUTURE DEVELOPMENTS |
The directors do not envisage a change in the operations of the business going forwards. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
POST BALANCE SHEET EVENTS |
Since the balance sheet date, no significant balance sheet events have taken place. |
GOING CONCERN |
As Part of Oshkosh, the company has considerable financial resources together with a number of customer contracts across different geographic areas and industries. The company has an organisational and cost structure that is suited to operating in a cyclical market. Service levels and service revenues have remained stable during this challenging period which has positioned JLG Industries (United Kingdom) Limited well from a competitive perspective. JLG Industries (United Kingdom) Limited has continued to grow relationships with traditional major purchasers of equipment whilst developing Industrial Equipment Distribution Channels. |
In considering the forecasted performance of the Company, the directors have considered the impact of the Russia invasion. The assessment made recognizes the inherent uncertainty associated with any forecasting at the present time, and, whilst the directors believe that the trading performance will remain robust, the scenarios prepared have included consideration of the impact of the following risks on results. |
1. Demand - JLG was originally anticipating an upturn in the economy and expecting an increase on revenues for 2023 by 5-10%. The market has become increasingly competitive due to pressure/influx of Chinese products with cheaper price, higher specification, quicker delivery and extended payment terms. This has had a negative effect on demand. |
2. Supply - Coordination is being undertaken every day with internal suppliers of equipment, as well as layers down in the organization to ensure that customer orders are met. |
3. Liquidity - Customer payment patterns have held steady to date. Oshkosh Corporation (ultimate parent) has available lines of credit and access to markets to assist JLG Industries (United Kingdom) Limited if liquidity support is needed. |
4. Asset impairment - We have updated our long range plan and while the supply chain issues resulting from the Russia invasion certainly have an effect on near term results the long term outlook for the market has not changed and no assets/identifiable cash flow streams were evaluated as requiring impairment. |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
REPORT OF THE DIRECTORS |
For The Year Ended 31 December 2023 |
The supply chain issues created by COVID19 and Russia/Ukraine war that started in 2022 also led to delays in shipments in 2023. In addition the company is facing a highy competitive market created by an influx of Chinese products. These competitors offere lower prices quick delivery and very favourable financing terms. On the other hand, we notice that freight costs have returned to pre-COVID levels since mid-2022 and we are continuously focused on increasing our production levels and securing our supply chain. Customer payment patterns have held steady to date. The company has considerable financial resources together with an organisational and cost structure that is suited to operating in a cyclical market. The demand for our products is very strong and the distribution agreements that are in place with JLG EMEA B.V. will ensure a steady operating margin. Service levels and revenues have increased more than anticipated and the long term market prospects have not changed which has positioned JLG Industries (United Kingdom) Ltd well from a competitive perspective. |
Management has noted the risks the company faces in relation to Russia invasion of the Ukraine and has appropriate contingency plans in place and does currently not see a direct significant impact to the long-term health of the Company and its activities or on the market. Management continues to monitor the situation closely. Considering this, management applies the going concern assumption in the financial statements. |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The directors have considered and reviewed the provisions included within Schedule 7 (5A) of the Companies Act 2006, relating to the financial risk management objectives and policies of the company, including any associated use of financial instruments. As part of the review, the directors have also considered the exposure of the company to the credit risk, liquidity risk and cash flow risk, in order that an overall assessment can be made of the company's assets, liabilities, its financial position and its result for the year. |
Credit risk |
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual counterpart is subject to a limit, which is reassessed continuously by the Executive Management team and Credit Control department. The credit risk for the company is borne by JLG EMEA BV in The Netherlands. |
Liquidity risk |
The company aims to mitigate liquidity risk by managing cash generation by its operations, applying cash collection targets and through treasury support by the parent company. |
Cash flow risk |
The company does not have long-term borrowings and the short-term debts do not bear any interest. The company maintains sufficient cash to cover any unexpected warranty claims. Any borrowings of the company are intercompany. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, TC Group, will be proposed for re-appointment as the company auditors, in the absence of an AGM. |
ON BEHALF OF THE BOARD: |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
DIRECTORS' RESPONSIBILITIES STATEMENT |
For The Year Ended 31 December 2023 |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED |
Opinion |
We have audited the financial statements of Jlg Industries (United Kingdom) Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report, the Report of the Directors and the Directors' Responsibilities Statement, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of 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 Directors' Responsibilities Statement set out on page seven, 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 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. |
Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK. |
We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance. |
We assess the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets. |
Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above. |
We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
JLG INDUSTRIES (UNITED KINGDOM) 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 a Report of the Auditors 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. |
for and on behalf of |
31 High View Close |
Hamilton Office Park |
Leicester |
Leicestershire |
LE4 9LJ |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
STATEMENT OF COMPREHENSIVE |
INCOME |
For The Year Ended 31 December 2023 |
Year ended | Period |
31.12.23 | 1.10.21 to 31.12.22 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
5,382,774 | 5,946,943 |
OPERATING PROFIT | 5 |
Interest receivable and similar income | 6 |
Other finance income | 16 |
385,031 | 64,541 |
1,193,239 | 1,218,822 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Actuarial loss on defined benefit |
pension plan | ( |
) | ( |
) |
Deferred tax relating to actuarial loss |
Income tax relating to components of other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
( |
) |
( |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
BALANCE SHEET |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Debtors | 10 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 14 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Retained earnings | 16 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
STATEMENT OF CHANGES IN EQUITY |
For The Year Ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 October 2021 |
Changes in equity |
Profit for the period | - | 854,738 | 854,738 |
Total comprehensive income | - | 854,738 | 854,738 |
Actuarial gain/(loss) on |
defined benefit pension scheme | - | (2,774,000 | ) | (2,774,000 | ) |
Deferred tax movement relating |
to actuarial loss | - | 693,500 | 693,500 |
Balance at 31 December 2022 |
Changes in equity |
Profit for the year | - | 921,129 | 921,129 |
Total comprehensive income | - | 921,129 | 921,129 |
Actuarial gain/(loss) on |
defined benefit pension scheme | - | (267,000 | ) | (267,000 | ) |
Deferred tax movement relating |
to actuarial loss | - | 66,750 | 66,750 |
Balance at 31 December 2023 |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
NOTES TO THE FINANCIAL STATEMENTS |
For The Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
JLG Industries (United Kingdom) Limited is a limited liability company incorporated in England and Wales. The registered office is Units 4 and 5 Bentley Avenue, Middleton, Manchester, M24 2GP. The principal activity of the company is disclosed within the strategic report. |
The ultimate parent of the company is Oshkosh Corporation (located in 1917 Four Wheel Drive Oshkosh Wisconsin USA). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirements of Section 4 Statement of Financial Position paragraph 4.; |
• | the requirement of paragraph 33.7. |
This information is included in the consolidated financial statements of Oshkosh Corporation as at 31 2021 December 2023 and these financial statements may be obtained from www.oshkoshcorp.com |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Critical accounting 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 amounts 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 directors believe the main critical accounting judgements are around the actuarial assumptions as noted below. A critical judgement is one that may have a material impact on the results of the company. Recovery of the deferred tax asset is a key uncertainty as significant funding has been needed to support a pension scheme shortfall. The company expects expenses running through the income statement would settle down and overall there should be future income. |
Turnover |
The company recognises revenue on equipment and part sales when contract terms are met, collectability is reasonably assured and a product is shipped or risk of ownership has been transferred to and accepted by the customer. Revenue from service agreements is recognized as earned when services have been rendered. Appropriate provisions are made for discounts, returns and sales allowances. Sales are recorded net of amounts invoiced for taxes imposed on the customer such as value-added taxes. |
Tangible fixed assets |
Plant and machinery | - |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. |
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. |
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Financial assets and liabilities are only offset in the balance sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. |
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the Company transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the Company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. |
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Transactions in foreign currencies are recorded at the rate ruling at the date of transaction. |
Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the statement of comprehensive income. |
Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction. |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
For defined benefit schemes the amounts charged to operating profit are the current service costs and the gains and losses on settlements and curtailments. They are included as part of staff costs. Past service costs are recognised immediately in the profit and loss account if the benefits have vested. If the benefits have not vested immediately, the costs are recognised over the period the vesting occurs. The interest cost and expected return on assets are shown as the net amount of other financial costs or credits adjacent to interest. Actuarial gains and losses are recognised immediately in the statement of total recognised gains and losses. |
Defined benefit schemes are funded, with the assets of the scheme held separately from those of the company, in separate trustee administered funds. Pension scheme assets are measured at fair value and liabilities measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme liabilities. The actuarial valuations are received at least tri-annually and are updated at each balance sheet date. The resulting defined benefit asset or liability, net of related deferred tax, is presented separately on the face of the balance sheet. |
Provisions for the expected cost of warranty obligations under local sale of goods legislation are recognised at the date of sales of the relevant products, at the directors' best estimate of the expenditure required to settle the company's obligation. |
Going concern |
The strategic report includes the company's business activities, together with the factors likely to affect its future development, performance and position. Furthermore, the report includes the financial position of the company, and a description of its cash flows, liquidity and credit risk as described in the Strategic Report. |
The company has considerable financial resources together with a number of customer contracts across different geographic areas and industries. The company has an organisational and cost structure that is suited to operating in a cyclical market. Service levels and service revenues have remained stable during this challenging period which has positioned JLG Industries (United Kingdom) Limited well from a competitive perspective. JLG Industries (United Kingdom) Limited has continued to grow relationships with traditional major purchasers of equipment whilst developing Industrial Equipment Distribution Channels. |
In February 2020, the global ongoing outbreak of the coronavirus disease 2019 (COVID-19), a novel infectious pandemic disease, has led to worldwide economic turmoil with wide-ranging and severe impacts upon financial markets, including stock, bond and commodity markets. Management does currently not see direct significant impact to the long term health of the Company and its activities and currently estimates that the impact will be limited going forward. Management is monitoring the situation closely and risk mitigation actions are being taken. |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
In considering the forecasted performance of the Company, the directors have considered the impact of the coronavirus pandemic. The assessment made recognizes the inherent uncertainty associated with any forecasting at the present time, and, whilst the directors believe that the trading performance will remain robust, the scenarios prepared have included consideration of the impact of the following risks on results. |
1. Demand - Has declined with a reduction in the near term market outlook, however sales in 2021 have increased more than anticipated and the long term market prospects have not changed. Near term actions include reduced ordering from suppliers and continual updates with customers on order backlog and timing. |
2. Supply - Coordination is being undertaken every day with internal suppliers of equipment, as well as layers down in the organization to ensure that customer orders are met. |
3. Liquidity - Customer payment patterns have held steady to date. Oshkosh Corporation (ultimate parent) has available lines of credit and access to markets to assist JLG Industries (United Kingdom) Limited if liquidity support is needed. |
4. Asset impairment - We have updated our long range plan and while the Covid-19 virus is certainly having an effect on near term demand the long term outlook for the market has not changed and no assets/identifiable cash flow streams were evaluated as requiring impairment. |
5. Government Assistance and Staffing - The Company has applied for and received government support for personnel cost. The Company has also taken actions to reduce costs through furloughs and reduced hiring. |
After making enquiries and taking into account the guarantee of support provided by the ultimate parent company, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements. |
Provisions |
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. |
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the value of money is material). |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
Period |
1.10.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS |
Period |
1.10.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
Period |
1.10.21 |
Year ended | to |
31.12.23 | 31.12.22 |
Sales | 15 | 10 |
Administration | 42 | 45 |
Development | 10 | 11 |
Period |
1.10.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration |
There were no directors on the UK payroll for the period ended 31 December 2022. The directors' remuneration was paid by Oshkosh Corporation and JLG EMEA B.V. |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
1.10.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
(Profit)/loss on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Foreign exchange differences |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
Period |
1.10.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Deposit account interest |
Interest received from group |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.10.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Leasing |
Interest paid to group |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
1.10.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax |
Prior year tax | 61,121 | (1,057 | ) |
Total current tax | ( |
) |
Deferred tax: |
Origination and reversal of |
timing differences |
Adjustments in respect of |
previous period | 623 | 5,465 |
Total deferred tax |
Tax on profit |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1.10.21 |
Year ended | to |
31.12.23 | 31.12.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Income not taxable for tax purposes |
Utilisation of tax losses | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods |
Pension adjustments | (62,798 | ) | (226,670 | ) |
Other timing differences | 49,974 | 329,890 |
Total tax charge | 214,972 | 334,298 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial loss on defined benefit |
pension plan | ( |
) | - | (267,000 | ) |
Deferred tax relating to actuarial loss | - | 66,750 |
(200,250 | ) | - | (200,250 | ) |
1.10.21 to 31.12.22 |
Gross | Tax | Net |
£ | £ | £ |
Actuarial loss on defined benefit |
pension plan | ( |
) | - | (2,774,000 | ) |
Deferred tax relating to actuarial loss | - | 693,500 |
(2,080,500 | ) | - | (2,080,500 | ) |
The March 2021 Budget announced a further increase to the main rate of corporation tax to 25% from April 2023. This rate has been substantively enacted at the balance sheet date, as result deferred tax balances as at 31 December 2023 is measured at 25%. |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
9. | TANGIBLE FIXED ASSETS |
Plant and |
machinery |
£ |
COST |
At 1 January 2023 |
Disposals | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Prepayments | 91,179 | 62,124 |
VAT |
Deferred tax asset |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 12) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
VAT | 576,122 | - |
Other creditors |
Accruals and deferred income |
12. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
13. | LEASING AGREEMENTS |
2023 | 2022 |
Property | Motor | Other | Property | Motor | Other |
Within one year | 207,501 | - | - | 243,425 | 17,925 | - |
Between one and five years | 162,999 | - | - | 294,658 | 589 | - |
After five years | - | - | - | 0 | - | - |
370,500 | - | - | 538,083 | 18,514 | - |
14. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Other provisions |
Holiday pay provision | 110,364 | 98,750 |
Warranty provision | 195,387 | 410,864 |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 January 2023 | ( |
) |
Bought forward correction | 623 | - |
Fixed asset timing differences | (561 | ) | - |
Other timing differences | 3,448 | - |
Balance at 31 December 2023 | ( |
) |
Holiday pay | Warranties | Total |
At 1 October 2022 | 98,750 | 410,865 | 509,615 |
(Released) / Charged to statement of comprehensive income | 11,614 | (215,478 | ) | (203,864 | ) |
At 31 December 2023 | 110,364 | 195,387 | 305,751 |
The other provision relates to the liability due to accrued vacation pay. Vacation benefits are accrued as liability as the benefits are earned if the employees' rights to receive compensation are attributable to services already rendered and it's probable that the employer will compensate the employees for the benefits through paid time off. The provision for warranties relates to expected warranty claims on products sold. The warranty reserve covers the standard warranty period of JLG Equipment which runs for a maximum of three years. Warranty costs are bared by JLG EMEA BV, the principal company. |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 1 | 2 | 2 |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
16. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2023 |
Profit for the year |
Actuarial gain/(loss) on |
defined benefit pension scheme | (267,000 | ) |
Deferred tax movement relating |
to actuarial loss | 66,750 |
At 31 December 2023 |
17. | EMPLOYEE BENEFIT OBLIGATIONS |
The company operates a defined benefit pension scheme with assets held in separate trustee administered funds. On 5th April 2019 the Defined Benefit Pension plan closed to future accrual. |
Defined benefit scheme |
A full actuarial valuation was carried out on 13 January 2023 by a qualified independent actuary. |
The amounts in the financial statements for the period ending 31 December 2023, relating to pensions, are based on an actuarial valuation. The actuarial valuation calculated the fair value of plan assets to be in excess of the defined benefit obligation giving a plan surplus as at 31 December 2023 of £3,921,000. FRS102 28.22 states that a plan surplus shall be recognised only to the extent that the entity is able to recover the surplus through either reduced contributions in the future or through refunds from the plan. The directors believe there to be insufficient certainty over the ability to meet these conditions and therefore the plan surplus has not been recognised. |
The amounts recognised in the balance sheet are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Present value of funded obligations | ( |
) | ( |
) |
Fair value of plan assets |
- | - |
Present value of unfunded obligations |
Deficit |
Net liability |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
17. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts recognised in profit or loss are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Current service cost | - | - |
Net interest from net defined benefit asset/liability |
(267,000 |
) |
(53,000 |
) |
Past service cost | - | - |
(267,000 | ) | (53,000 | ) |
Actual return on plan assets | ( |
) | ( |
) |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Opening defined benefit obligation |
Interest cost |
Actuarial losses/(gains) | ( |
) |
Benefits paid | ( |
) | ( |
) |
Changes in the fair value of scheme assets are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Opening fair value of scheme assets |
Contributions by employer |
Expected return | 967,000 | 751,000 |
Actuarial gains/(losses) | ( |
) | ( |
) |
Benefits paid | (351,000 | ) | (1,314,000 | ) |
Restriction of actuarial gain | (3,921,000 | ) | (5,121,000 | ) |
14,697,000 | 14,176,000 |
The amounts recognised in other comprehensive income are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Actuarial gains/(losses) | ( |
) |
Restriction of plan surplus (net position) | 1,200,000 | (5,121,000 | ) |
(267,000 | ) | (2,774,000 | ) |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
17. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The major categories of scheme assets as a percentage of total scheme assets are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
Debt instruments | 97.16% | 86.43% |
Other | 2.48% | 13.14% |
100.00% | 100.00% |
To develop the expected long-term rate of return on assets assumption, the company consider the current level of expected returns on risk free investments (primarily government bonds), the historical level of the risk premium associated with the other asset classes in which the portfolio is invested and the expectations for future returns of each asset classes. The expected return for each asset class was then weighted based on the target asset allocation to develop the expected long-term rate of return on asset assumption for the portfolio. This resulted in the selection of the 4.3% assumption. |
Contributions |
The company expects to contribute £194,000 to its pension plan in the financial year ending 31 December 2024. |
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
2023 | 2022 |
Discount rate |
Future pension increases |
Rate of price inflation | 3.00% | 3.20% |
Weighted average life expectancy for mortality tables used to determine benefit obligation at: |
31 December 2023 |
Male | Female |
Member age 65 (current life expectancy) | 20.9 | 23.3 |
Member aged 45 (life expectancy at age 65) | 22.6 | 25.1 |
18. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements |
19. | RELATED PARTY DISCLOSURES |
The Company has taken advantage of the exemption conferred by FRS 102 from disclosing details of those transactions with other wholly-owned subsidiaries of the group. |
JLG INDUSTRIES (UNITED KINGDOM) LIMITED (REGISTERED NUMBER: 03620292) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2023 |
20. | ULTIMATE CONTROLLING PARTY |
The company's immediate parent undertaking is JLG EMEA BV. The company's ultimate parent undertaking and controlling party at 31 December 2023 is Oshkosh Corporation, which is incorporated in the United States of America. Copies of its group financial statements, which include the company, are available from 1917 Four Wheel Drive, Oshkosh, Wisconsin 54902, United States of America or the Oshkosh website (www.oshkoshcorporation.com). |
The smallest and largest consolidation that the company is included in is Oshkosh Corporation consolidated annual report. |