J.C. Atkinson and Son Limited |
Strategic Report |
|
|
|
Review of business |
Key financial and other indicators between this financial period and last year are as follows: |
|
|
8 months ended 31 March |
|
2024 |
2023 |
£ |
£ |
|
Turnover |
16,384,688 |
13,072,532 |
Gross profit |
5,505,312 |
4,478,602 |
Operating profit |
806,921 |
717,413 |
Shareholders' funds |
9,006,321 |
8,514,224 |
|
The directors are pleased to report another solid year's trading given the continued level of mortality rates within the United Kingdom. The directors continue to drive growth by concentrating on increasing market share and this will be further helped by the attendance at the National Funeral Directors Exhibition at which new products will be exhibited. The balance sheet remains strong and the directors consider that this will enable the company to continue to invest in improving the company's production and infrastructure which will lead to greater efficiencies and continued profitability in the future. |
|
Principal risks and uncertainties |
As with any business, the company faces a variety of risks and uncertainties in the normal course of its activities, but it aims to minimise any possible adverse effects on operations through the effective implementation of risk management procedures. These procedures seek to identify any potential risk to the company's business activities and on an on-going basis monitor such risk and the possible impact on the company's well-being. The principal risks and uncertainties that the company faces and which management believes could have a material and adverse impact on operations include the following: |
Market risks |
The market in which the company operates continues to be highly competitive. Raw material and operational costs have in some instances increased in the year and it is not always possible to pass these increases on to customers. Furthermore, availability of product may also vary and inconsistent throughput can impact on profitability and efficiencies. However the company is well placed to mitigate against these risks with full access to quality products at reasonable cost at all times. The company also strives to build and maintain strong relationships with all customers and always to take a longer term view in dealings with them. |
J.C. Atkinson and Son Limited |
Strategic Report |
|
Environmental risks |
Management have continually sought to manage operations with full consideration to environmental concerns. They have been successful with a number of carbon initiatives including researching and implementing operating biomass technology in the factories. From a raw materials perspective, the risk remains low, as management continue to source wood and finished products from accredited suppliers where possible, as well as implementing and conducting their own controls and audits. In addition, contacts and relationships are continually maintained with possible alternate sources of supply. |
|
Financial risks |
The company extends credit to its customers in the normal course of business and accordingly is exposed to the risks associated with this practice. The company, however, maintains close working relationships with all customers in order to monitor their ongoing credit worthiness. The company has credit control procedures in place, including access to an external credit reference agency. The maintenance of sufficient levels of cash liquidity and working capital are essential to the success of any business; as required, the company has agreed banking facilities available to it which are deemed to be more than adequate to meet both its short and longer term requirements |
|
Interest rate risks |
The company has agreed facilities with the bank for working capital and invoice discounting which carry variable interest 'rates at a fixed margin above base rate. |
|
Liquidity risks |
The company reduces its liquidity risk by virtue of the availability of its banking facility. |
|
This report was approved by the board on 15 December 2024 and signed on its behalf. |
|
|
|
G Cranfield |
Director |
|
|
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
|
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
|
Other information |
The 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 the 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. |
|
Matters on which we are required to report by exception |
J.C. Atkinson and Son Limited |
Statement of Cash Flows |
for the year ended 31 March 2024 |
|
|
|
|
|
8 months ended 31 March |
Notes |
|
2024 |
|
2023 |
£ |
£ |
Operating activities |
Profit for the financial year |
492,097 |
|
427,350 |
|
Adjustments for: |
Profit on sale of fixed assets |
(1,300) |
|
(2,935) |
Interest payable |
190,571 |
|
91,860 |
Tax on profit on ordinary activities |
124,253 |
|
198,203 |
Depreciation |
443,071 |
|
276,359 |
Decrease in stocks |
430,704 |
|
109,163 |
Decrease/(increase) in debtors |
315,592 |
|
(2,523,542) |
(Decrease)/increase in creditors |
(663,545) |
|
301,875 |
|
|
|
1,331,443 |
|
(1,121,667) |
|
Interest paid |
|
|
(177,491) |
|
(85,911) |
Interest element of finance lease payments |
(13,080) |
|
(5,949) |
Corporation tax paid |
(24,100) |
|
(30,577) |
|
Cash generated by/(used in) operating activities |
1,116,772 |
|
(1,244,104) |
|
|
|
|
|
|
Investing activities |
Payments to acquire tangible fixed assets |
(238,006) |
|
(281,501) |
Proceeds from sale of tangible fixed assets |
5,564 |
|
12,272 |
|
Cash used in investing activities |
(232,442) |
|
(269,229) |
|
|
|
|
|
|
Financing activities |
Capital element of finance lease payments |
(88,788) |
|
(70,910) |
|
Cash used in financing activities |
(88,788) |
|
(70,910) |
|
|
|
|
|
|
Net cash generated/(used) |
Cash generated by/(used in) operating activities |
1,116,772 |
|
(1,244,104) |
Cash used in investing activities |
(232,442) |
|
(269,229) |
Cash used in financing activities |
(88,788) |
|
(70,910) |
|
Net cash generated/(used) |
795,542 |
|
(1,584,243) |
|
Cash and cash equivalents at 1 April |
(2,807,179) |
|
(1,222,936) |
Cash and cash equivalents at 31 March |
(2,011,637) |
|
(2,807,179) |
|
|
|
|
|
|
Cash and cash equivalents comprise: |
Cash at bank |
460,862 |
|
400,653 |
Bank overdrafts |
12 |
|
(2,472,499) |
|
(3,207,832) |
|
|
|
(2,011,637) |
|
(2,807,179) |
|
|
|
|
|
|
|
|
|
Stocks |
|
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
Foreign currency translation |
|
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
|
|
Reduced disclosure |
|
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements: Section 11 ‘Basic Financial Instruments’ - Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral; and Section 33 ‘Related Party Disclosures’ - Compensation for key management personnel. The financial statements of the company are consolidated in the financial statements of Newable Partnership Limited. These consolidated financial statements are available from its registered office |
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate. |
|
|
2 |
Critical accounting estimates and judgements |
|
|
The depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. Further disclosure is made in the appropriate note to the accounts. The calculation of tax liabilities involves uncertainties in the application of complex tax laws. Determining tax provisions therefore requires judgement on the treatment of certain transactions. Deferred tax is provided on the possibility of the reversal in the future of short term timing differences for accounting and taxation purposes. The company makes an estimate of the recoverability of trade debtors and other debtors and this takes into account, the credit rating of the debtor, the ageing profile of the debtor and historical experience. Where management consider a provision is necessary then a specific provision is made. |
|
|
|
|
|
|
|
|
|
8 months ended 31 March |
3 |
Analysis of turnover |
2024 |
|
2023 |
£ |
£ |
|
|
Sale of goods |
16,384,688 |
|
13,072,532 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
16,384,688 |
|
13,072,532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 months ended 31 March |
4 |
Operating profit |
2024 |
|
2023 |
£ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
345,657 |
|
146,815 |
|
Depreciation of assets held under finance leases and hire purchase contracts |
|
97,414 |
|
39,283 |
|
Auditors' remuneration for audit services |
14,500 |
|
17,500 |
|
Carrying amount of stock sold |
8,148,219 |
|
6,405,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 months ended 31 March |
5 |
Directors' emoluments |
2024 |
|
2023 |
£ |
£ |
|
|
Highest paid director: |
|
Emoluments |
111,205 |
|
74,137 |
|
Company contributions to defined contribution pension plans |
1,320 |
|
880 |
|
|
|
|
|
|
112,525 |
|
75,017 |
|
|
|
|
|
|
|
|
|
|
|
Number of directors to whom retirement benefits accrued: |
2024 |
|
2023 |
Number |
Number |
|
|
Defined contribution plans |
2 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 months ended 31 March |
6 |
Staff costs |
2024 |
|
2023 |
£ |
£ |
|
|
Wages and salaries |
4,023,271 |
|
3,056,402 |
|
Social security costs |
364,494 |
|
286,909 |
|
Other pension costs |
73,254 |
|
51,521 |
|
|
|
|
|
|
4,461,019 |
|
3,394,832 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Administration |
13 |
|
12 |
|
Manufacturing |
128 |
|
138 |
|
Marketing |
5 |
|
5 |
|
|
|
|
|
|
146 |
|
155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 months ended 31 March |
7 |
Interest payable |
2024 |
|
2023 |
£ |
£ |
|
|
Bank loans and overdrafts |
177,491 |
|
85,911 |
|
Finance charges payable under finance leases and hire purchase contracts |
|
13,080 |
|
5,949 |
|
|
|
|
|
|
190,571 |
|
91,860 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 months ended 31 March |
8 |
Taxation |
2024 |
|
2023 |
£ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
177,819 |
|
35,326 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
(53,566) |
|
162,877 |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
124,253 |
|
198,203 |
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
2024 |
|
2023 |
£ |
£ |
|
Profit on ordinary activities before tax |
616,350 |
|
625,553 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
|
19% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
154,088 |
|
118,855 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
12,039 |
|
13,425 |
|
Capital allowances for period in excess of depreciation |
56,692 |
|
(62,526) |
|
Group rellief |
(45,000) |
|
(34,428) |
|
Deferred tax adjustments to tax charge in respect of previous periods |
(53,566) |
|
162,877 |
|
|
Tax charge for period |
124,253 |
|
198,203 |
|
|
|
|
|
|
|
|
|
|
Factors that may affect future tax charges |
|
None |
|
|
9 |
Tangible fixed assets |
|
|
Land and buildings |
|
Plant and machinery |
|
Motor Vehicles |
|
Total |
|
|
At cost |
|
At cost or valuation |
|
At cost |
£ |
£ |
£ |
£ |
|
Cost or valuation |
|
At 1 April 2023 |
459,098 |
|
4,493,605 |
|
1,195,182 |
|
6,147,885 |
|
Additions |
45,258 |
|
110,725 |
|
82,023 |
|
238,006 |
|
Disposals |
- |
|
- |
|
(91,531) |
|
(91,531) |
|
At 31 March 2024 |
504,356 |
|
4,604,330 |
|
1,185,674 |
|
6,294,360 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 April 2023 |
299,645 |
|
2,884,903 |
|
573,991 |
|
3,758,539 |
|
Charge for the year |
26,551 |
|
262,177 |
|
154,343 |
|
443,071 |
|
On disposals |
- |
|
- |
|
(87,267) |
|
(87,267) |
|
At 31 March 2024 |
326,196 |
|
3,147,080 |
|
641,067 |
|
4,114,343 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 March 2024 |
178,160 |
|
1,457,250 |
|
544,607 |
|
2,180,017 |
|
At 31 March 2023 |
159,453 |
|
1,608,702 |
|
621,191 |
|
2,389,346 |
|
|
|
|
|
|
|
|
|
|
|
Certain classes of plant and machinery were revalued in July 2015 by the directors of the company on the basis of replacement cost |
|
|
|
|
|
|
|
2024 |
|
2023 |
£ |
£ |
|
Carrying value of plant and machinery included above held under finance leases and hire purchase contracts |
|
305,645 |
|
461,792 |
|
|
|
|
|
|
|
|
|
|
10 |
Stocks |
2024 |
|
2023 |
£ |
£ |
|
|
Raw materials and consumables |
610,528 |
|
559,673 |
|
Finished goods and goods for resale |
996,587 |
|
1,478,146 |
|
|
|
|
|
|
1,607,115 |
|
2,037,819 |
|
|
|
|
|
|
|
|
|
|
11 |
Debtors |
2024 |
|
2023 |
£ |
£ |
|
|
Trade debtors |
3,537,154 |
|
5,491,178 |
|
Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
5,731,099 |
|
4,201,099 |
|
Other debtors |
249,404 |
|
209,129 |
|
Prepayments and accrued income |
567,882 |
|
499,725 |
|
|
|
|
|
|
10,085,539 |
|
10,401,131 |
|
|
|
|
|
|
|
|
|
|
12 |
Creditors: amounts falling due within one year |
2024 |
|
2023 |
£ |
£ |
|
|
Bank overdrafts |
2,472,499 |
|
3,207,832 |
|
Obligations under finance lease and hire purchase contracts |
93,164 |
|
136,743 |
|
Trade creditors |
1,698,014 |
|
2,223,929 |
|
Corporation tax |
219,585 |
|
65,866 |
|
Other taxes and social security costs |
74,378 |
|
89,138 |
|
Other creditors |
97,638 |
|
234,079 |
|
Accruals and deferred income |
70,957 |
|
57,386 |
|
|
|
|
|
|
4,726,235 |
|
6,014,973 |
|
|
|
|
|
|
|
|
|
|
13 |
Creditors: amounts falling due after one year |
2024 |
|
2023 |
£ |
£ |
|
|
Obligations under finance lease and hire purchase contracts |
143,583 |
|
188,792 |
|
|
|
|
|
|
|
|
|
|
14 |
Obligations under finance leases and hire purchase |
2024 |
|
2023 |
|
contracts |
£ |
£ |
|
|
Amounts payable: |
|
Within one year |
93,164 |
|
136,743 |
|
Within two to five years |
143,583 |
|
188,792 |
|
|
|
|
|
|
236,747 |
|
325,535 |
|
|
|
|
|
|
|
|
|
|
The hire purchase agreements are secured on the assets to which they relate |
|
|
15 |
Deferred taxation |
2024 |
|
2023 |
£ |
£ |
|
|
Accelerated capital allowances |
457,394 |
|
510,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
£ |
£ |
|
|
At 1 April |
510,960 |
|
348,083 |
|
(Credited)/charged to the profit and loss account |
(53,566) |
|
162,877 |
|
|
At 31 March |
457,394 |
|
510,960 |
|
|
|
|
|
|
|
|
|
|
|
16 |
Share capital |
Nominal |
|
2024 |
|
2024 |
|
2023 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
29,232 |
|
29,232 |
|
29,232 |
|
|
|
|
|
|
|
|
|
|
17 |
Share premium |
2024 |
|
2023 |
£ |
£ |
|
|
At 1 April |
298 |
|
298 |
|
|
At 31 March |
298 |
|
298 |
|
|
|
|
|
|
|
|
|
|
18 |
Other reserves |
2024 |
|
2023 |
|
Revaluation reserve |
£ |
£ |
|
|
At 1 April |
51,000 |
|
51,000 |
|
|
At 31 March |
51,000 |
|
51,000 |
|
|
|
|
|
|
|
|
|
|
19 |
Profit and loss account |
2024 |
|
2023 |
£ |
£ |
|
|
At 1 April |
8,424,150 |
|
7,996,800 |
|
Profit for the financial year |
492,097 |
|
427,350 |
|
|
At 31 March |
8,916,247 |
|
8,424,150 |
|
|
|
|
|
|
|
|
|
|
20 |
Other financial commitments |
|
|
Total future minimum lease payments under non-cancellable operating leases: |
|
|
|
Land and buildings |
|
Land and buildings |
Other |
Other |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
£ |
£ |
£ |
£ |
|
Falling due: |
|
within two to five years |
280,000 |
|
345,000 |
|
- |
|
- |
|
in over five years |
984,444 |
|
1,312,592 |
|
- |
|
- |
|
|
1,264,444 |
|
1,657,592 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
21 |
Controlling party |
|
|
The immediate controlling party is Newable Atkinson Limited, a company incorporated in England & Wales. The ultimate controlling party is Newable Partnership Limited, a company incorporated in England & Wales. |
|
|
22 |
Presentation currency |
|
|
The financial statements are presented in Sterling. |
|
|
23 |
Legal form of entity and country of incorporation |
|
|
J.C. Atkinson and Son Limited is a private company limited by shares and incorporated in England. |
|
|
24 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
Unit 1, Sedling Road |
|
Wear Industrial Estate (East) |
|
Washington |
|
Tyne & Wear |
|
NE38 9BZ |