Caseware UK (AP4) 2023.0.135 2023.0.135 2024-07-312024-07-31false114121false2023-08-01falsefalse 02666622 2023-08-01 2024-07-31 02666622 2022-08-01 2023-07-31 02666622 2024-07-31 02666622 2023-07-31 02666622 2022-08-01 02666622 c:Exceptional 2023-08-01 2024-07-31 02666622 c:Exceptional 2022-08-01 2023-07-31 02666622 d:CompanySecretary1 2023-08-01 2024-07-31 02666622 d:Director1 2023-08-01 2024-07-31 02666622 d:Director2 2023-08-01 2024-07-31 02666622 d:Director3 2023-08-01 2024-07-31 02666622 d:Director4 2023-08-01 2024-07-31 02666622 d:RegisteredOffice 2023-08-01 2024-07-31 02666622 c:Buildings 2023-08-01 2024-07-31 02666622 c:Buildings 2024-07-31 02666622 c:Buildings 2023-07-31 02666622 c:Buildings c:OwnedOrFreeholdAssets 2023-08-01 2024-07-31 02666622 c:PlantMachinery 2023-08-01 2024-07-31 02666622 c:PlantMachinery 2024-07-31 02666622 c:PlantMachinery 2023-07-31 02666622 c:PlantMachinery c:OwnedOrFreeholdAssets 2023-08-01 2024-07-31 02666622 c:MotorVehicles 2023-08-01 2024-07-31 02666622 c:MotorVehicles 2024-07-31 02666622 c:MotorVehicles 2023-07-31 02666622 c:MotorVehicles c:OwnedOrFreeholdAssets 2023-08-01 2024-07-31 02666622 c:FurnitureFittings 2023-08-01 2024-07-31 02666622 c:FurnitureFittings 2024-07-31 02666622 c:FurnitureFittings 2023-07-31 02666622 c:FurnitureFittings c:OwnedOrFreeholdAssets 2023-08-01 2024-07-31 02666622 c:OwnedOrFreeholdAssets 2023-08-01 2024-07-31 02666622 c:CurrentFinancialInstruments 2024-07-31 02666622 c:CurrentFinancialInstruments 2023-07-31 02666622 c:Non-currentFinancialInstruments 2024-07-31 02666622 c:Non-currentFinancialInstruments 2023-07-31 02666622 c:CurrentFinancialInstruments c:WithinOneYear 2024-07-31 02666622 c:CurrentFinancialInstruments c:WithinOneYear 2023-07-31 02666622 c:Non-currentFinancialInstruments c:AfterOneYear 2024-07-31 02666622 c:Non-currentFinancialInstruments c:AfterOneYear 2023-07-31 02666622 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2024-07-31 02666622 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2023-07-31 02666622 c:ShareCapital 2024-07-31 02666622 c:ShareCapital 2023-07-31 02666622 c:ShareCapital 2022-08-01 02666622 c:RetainedEarningsAccumulatedLosses 2023-08-01 2024-07-31 02666622 c:RetainedEarningsAccumulatedLosses 2024-07-31 02666622 c:RetainedEarningsAccumulatedLosses 2022-08-01 2023-07-31 02666622 c:RetainedEarningsAccumulatedLosses 2023-07-31 02666622 c:RetainedEarningsAccumulatedLosses 2022-08-01 02666622 c:AcceleratedTaxDepreciationDeferredTax 2024-07-31 02666622 c:AcceleratedTaxDepreciationDeferredTax 2023-07-31 02666622 c:OtherDeferredTax 2024-07-31 02666622 c:OtherDeferredTax 2023-07-31 02666622 d:OrdinaryShareClass1 2023-08-01 2024-07-31 02666622 d:OrdinaryShareClass1 2024-07-31 02666622 d:OrdinaryShareClass1 2023-07-31 02666622 d:OrdinaryShareClass2 2023-08-01 2024-07-31 02666622 d:OrdinaryShareClass2 2024-07-31 02666622 d:OrdinaryShareClass2 2023-07-31 02666622 d:FRS102 2023-08-01 2024-07-31 02666622 d:Audited 2023-08-01 2024-07-31 02666622 d:FullAccounts 2023-08-01 2024-07-31 02666622 d:PrivateLimitedCompanyLtd 2023-08-01 2024-07-31 02666622 c:HirePurchaseContracts c:WithinOneYear 2024-07-31 02666622 c:HirePurchaseContracts c:WithinOneYear 2023-07-31 02666622 c:HirePurchaseContracts c:BetweenOneFiveYears 2024-07-31 02666622 c:HirePurchaseContracts c:BetweenOneFiveYears 2023-07-31 02666622 c:MotorVehicles c:LeasedAssetsHeldAsLessee 2024-07-31 02666622 c:MotorVehicles c:LeasedAssetsHeldAsLessee 2023-07-31 02666622 c:LeasedAssetsHeldAsLessee 2024-07-31 02666622 c:LeasedAssetsHeldAsLessee 2023-07-31 02666622 e:PoundSterling 2023-08-01 2024-07-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 02666622










JOHN PEARCE (GLYNNEATH) LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
COMPANY INFORMATION


Directors
H K Davies 
J Y Pearce 
J Pearce 
R C Davies 




Company secretary
J Pearce



Registered number
02666622



Registered office
Willowfield
Chain Walk

Glynneath

West Glamorgan

SA11 5ER




Independent auditors
MHA

Swansea, United Kingdom





 
JOHN PEARCE (GLYNNEATH) LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10
Statement of Changes in Equity
11
Notes to the Financial Statements
12 - 25


 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024

Introduction
 
The directors present their strategic report for the year ended 31 July 2024.

Business review
 
The results for the company are set out in the Statement of Comprehensive Income on page 9. The turnover has decreased slightly from £13.4m for the year ended 31 July 2023 to £13.2m for the year ended 31 July 2024.
The key measurement of the effectiveness of the company's operations is gross profit margin which is 13.5% for the year ended 31 July 2024 compared to 14.5% for the year ended 31 July 2023.
The company balance sheet on page 10 shows that the company's net assets have increased from £2,801,404 at 31 July 2023 to £2,845,005 at 31 July 2024.
The company's net current assets have decreased from £972,203 at 31 July 2023 to £651,916, at 31 July 2024.

Principal risks and uncertainties
 
The company operates in a competitive market which is a continuing risk to the company and could result in losing sales to its key competitors. The company manages this risk by providing value added services to its customers, having fast response times to customer queries and maintaining strong relationships with its customers.
Price risk
The company is exposed to price risk as a result of its operations, in particular adverse fluctuations in fuel and subcontractor prices. The directors manage fuel and subcontractor price fluctuations by monitoring movements in pricing and anticipating significant price increases. However, in the opinion of the directors, given the size of the company's operations, the costs of managing exposure to this price risk via hedging, exceed the potential benefits. The directors will review the appropriateness of this policy should the company's operations change in size or nature.
Liquidity risk
The company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure the company has sufficient available funds for its operations.
Credit risk
The company's principal financial assets are cash at bank and trade receivables. The company's credit risk is primarily attributable to its trade debtors. The amounts presented in the statement of financial position are net of allowance for doubtful debtors. The directors actively monitor and manage the credit risk associated with the group's significant customers.
Interest rate cash flow risk
Exposure to adverse movements in interest rates is not considered by the directors as a significant risk to the company.
The company's trading activities are all within the United Kingdom and therefore it is not exposed to the risks of fluctuations in exchange rates during the year.

Financial key performance indicators
 
The company's principal instruments comprise of bank balances, trade debtors, trade creditors and bank loans. The main purpose of these instruments is to raise funds for the company's operations.

Page 1

 
JOHN PEARCE (GLYNNEATH) LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024


This report was approved by the board and signed on its behalf.



R C Davies
Director

Date: 20 December 2024

Page 2

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The principal activity of the company in the year under review was that of haulage and warehousing.

Results and dividends

The profit for the year, after taxation, amounted to £166,222 (2023 - £308,304).

Dividends totalling £122,621 (2023 - £112,032) were paid during the year.

Directors

The directors who served during the year were:

H K Davies 
J Y Pearce 
J Pearce 
R C Davies 

Page 3

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024

Future developments

The directors are optimistic about the company's future prospects.

Disclosure in the strategic report 

Included in the company's strategic report is a review of the business and a description of the principal risks and uncertainties facing the company. 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsMHAwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





R C Davies
Director

Date: 20 December 2024

Page 4

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JOHN PEARCE (GLYNNEATH) LIMITED
 

Opinion


We have audited the financial statements of JOHN PEARCE (GLYNNEATH) LIMITED (the 'Company') for the year ended 31 July 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 July 2024 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JOHN PEARCE (GLYNNEATH) LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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
 

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 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 3, 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.


Page 6

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JOHN PEARCE (GLYNNEATH) LIMITED (CONTINUED)


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 an Auditors' 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:

- Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud.
- Review of legal and professional fees for evidence of legal work undertaken or fines/penalties incurred.
- Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance wirth applicable laws and regulations.
- Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness. 
- Evaluating the business rationale of significant transactions outside the normal course of business. 
- An assessment of the methodologies used in order to calculate estimates/provisions at the year end for evidence of bias. 
- We considered where applicable alternative estimation approaches including using (where available) actual post year end outcomes in order to provide assurance over the potential for material misstatement.
- Discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud;
- Discussions with management over any potential or suspected fraud.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' Report.


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 2006Our 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 Auditors' 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.


Page 7

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JOHN PEARCE (GLYNNEATH) LIMITED (CONTINUED)





Brian Garland BA ACA (Senior Statutory Auditor)
  
for and on behalf of
MHA
 
Statutory Auditor
Swansea, United Kingdom

20 December 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
Page 8

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024

2024
2023
Note
£
£

  

Turnover
  
13,225,905
13,383,108

Cost of sales
  
(11,438,037)
(11,447,886)

Gross profit
  
1,787,868
1,935,222

Administrative expenses
  
(1,448,274)
(1,232,685)

Exceptional administrative expenses
  
-
(44,324)

Operating profit
 4 
339,594
658,213

Interest payable and similar expenses
 7 
(78,857)
(71,108)

Profit before tax
  
260,737
587,105

Tax on profit
 8 
(94,515)
(278,801)

Profit for the financial year
  
166,222
308,304

The notes on pages 12 to 25 form part of these financial statements.
Page 9

 
JOHN PEARCE (GLYNNEATH) LIMITED
REGISTERED NUMBER: 02666622

BALANCE SHEET
AS AT 31 JULY 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 10 
3,776,481
3,403,154

  
3,776,481
3,403,154

Current assets
  

Stocks
 11 
19,984
25,105

Debtors: amounts falling due within one year
 12 
2,335,218
2,527,113

Cash at bank and in hand
  
299,736
585,279

  
2,654,938
3,137,497

Creditors: amounts falling due within one year
 13 
(2,003,022)
(2,165,294)

Net current assets
  
 
 
651,916
 
 
972,203

Total assets less current liabilities
  
4,428,397
4,375,357

Creditors: amounts falling due after more than one year
 14 
(788,322)
(873,398)

Provisions for liabilities
  

Deferred tax
 17 
(795,070)
(700,555)

  
 
 
(795,070)
 
 
(700,555)

Net assets
  
2,845,005
2,801,404


Capital and reserves
  

Called up share capital 
 18 
2,500
2,500

Profit and loss account
  
2,842,505
2,798,904

  
2,845,005
2,801,404


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


R C Davies
Director

Date: 20 December 2024

The notes on pages 12 to 25 form part of these financial statements.
Page 10

 
JOHN PEARCE (GLYNNEATH) LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 August 2022
2,500
2,602,632
2,605,132


Comprehensive income for the year

Profit for the year
-
308,304
308,304

Dividends
-
(112,032)
(112,032)



At 1 August 2023
2,500
2,798,904
2,801,404



Profit for the year
-
166,222
166,222

Dividends
-
(122,621)
(122,621)


At 31 July 2024
2,500
2,842,505
2,845,005


The notes on pages 12 to 25 form part of these financial statements.

Page 11

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

1.


General information

John Pearce (Glynneath) Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.
The presentation currency of the financial statements is the Pound Sterling (£).
Monetary amounts in these financial statements are rounded to nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption 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.
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.

The following principal accounting policies have been applied:

 
2.2

Going concern

In preparing the financial statements, the directors have considered the current financial position and have also assessed the financial future of the business. The directors have concluded that it is appropriate to prepare the financial statements on a going concern basis. In forming this conclusion the directors have considered the company's net assets and the profit reported in the current financial year.
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and to meet its financial obligations as they fall due. Accordingly, the directors continue to adopt the going concern basis in preparing the annual report and financial statements.

Page 12

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.3

Turnover and Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 13

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.5

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.6

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property
-
2%
Plant and machinery
-
20%
Motor vehicles
-
20%
Fixtures and fittings
-
10%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 14

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)

 
2.7

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.8

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Decreases in provisions are generally credited to profit or loss. 

  
2.9

Hire purchase

Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the balance sheet and are depreciated over the shorter of the lease term and the assets' useful lives. 

A corresponding liability is recognised for the lower of the fair value of the leased asset and the present value of the minimum lease payments are apportioned between the reduction of the lease liability and finance charges in the income statement so as to achieve a constant rate of interest on the remaining balance of the liability. 

 
2.10

Financial instruments

Enter text here - user input
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Page 15

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

2.Accounting policies (continued)


2.10
Financial instruments (continued)

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities, like trade and other accounts receivable and payable, loans from banks and other third parties and related party loans.


3.


Judgments in applying accounting policies 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.

Page 16

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

4.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation - owned assets
219,981
199,601

Depreciation - assets on hire purchase
553,208
419,062

Gain/Loss on disposal of fixed assets
56,388
(16,803)

Auditors' remuneration
13,200
12,000


5.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
4,167,302
4,034,172

Social security costs
370,791
363,059

4,538,093
4,397,231


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Drivers and warehouse
99
93



Administration
18
17



Directors
4
4

121
114


6.


Directors' remuneration

2024
2023
£
£

Directors' remuneration
88,722
85,444

88,722
85,444


Page 17

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

7.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
7,281
17,908

Loans from group undertakings
1,583
3,086

Finance leases and hire purchase contracts
69,993
50,114

78,857
71,108


8.


Taxation


2024
2023
£
£



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
94,515
278,801

Total deferred tax
94,515
278,801


Tax on profit
94,515
278,801
Page 18

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
 
8.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 21.01%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
260,736
587,104


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 21.01%)
65,184
123,351

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,146
6,658

Capital allowances for year in excess of depreciation
-
133,159

Other differences leading to an increase (decrease) in the tax charge
1,590
(20,438)

Group relief
21,120
12,805

Remeasurement of Deferred Tax for Changes in Tax Rates
3,475
23,266

Total tax charge for the year
94,515
278,801




9.


Dividends

2024
2023
£
£


Dividends
122,621
112,032

122,621
112,032

Page 19

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

10.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 August 2023
52,800
307,087
7,686,069
302,315
8,348,271


Additions
-
24,250
1,142,180
79,816
1,246,246


Disposals
-
-
(494,048)
-
(494,048)



At 31 July 2024

52,800
331,337
8,334,201
382,131
9,100,469



Depreciation


At 1 August 2023
25,615
255,159
4,434,966
229,377
4,945,117


Charge for the year on owned assets
6,358
10,980
743,390
12,461
773,189


Disposals
-
-
(394,318)
-
(394,318)



At 31 July 2024

31,973
266,139
4,784,038
241,838
5,323,988



Net book value



At 31 July 2024
20,827
65,198
3,550,163
140,293
3,776,481



At 31 July 2023
27,185
51,928
3,251,103
72,938
3,403,154

Page 20

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

           10.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Motor vehicles
2,395,140
2,279,982

2,395,140
2,279,982


11.


Stocks

2024
2023
£
£

Finished goods and goods for resale
19,984
25,105

19,984
25,105



12.


Debtors

2024
2023
£
£


Trade debtors
2,217,597
2,395,841

Prepayments and accrued income
117,621
94,094

Tax recoverable
-
37,178

2,335,218
2,527,113


Page 21

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

13.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
35,405
50,000

Trade creditors
630,416
730,140

Amounts owed to group undertakings
100,000
100,000

Other taxation and social security
360,579
441,928

Obligations under finance lease and hire purchase contracts
743,254
714,473

Other creditors
20,832
20,834

Accruals and deferred income
112,536
107,919

2,003,022
2,165,294



14.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
-
36,962

Net obligations under finance leases and hire purchase contracts
781,375
808,658

Other creditors
6,947
27,778

788,322
873,398


The following liabilities were secured:

2024
2023
£
£



Hire purchase contracts
1,524,629
1,523,131

1,524,629
1,523,131

Details of security provided:

Hire purchase obligations are secured upon the assets to which they relate.

Page 22

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

15.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
35,405
50,000

Amounts falling due 1-2 years

Bank loans
-
36,962



35,405
86,962


Bank loans are repayable in 60 installments of £4,167 to be paid monthly. Interest is payable at 2.48% per annum, and the bank loans are secured by way of a debenture granted by John Pearce (Glynneath) Ltd. The final repayment will be made in April 2025.


16.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
743,254
714,473

Between 1-5 years
781,375
808,658

1,524,629
1,523,131

Page 23

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

17.


Deferred taxation




2024


£






At beginning of year
(700,555)


Charged to the profit or loss
(94,515)



At end of year
(795,070)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Fixed asset timing differences
(857,128)
(747,593)

Losses and other deductions
62,058
47,038

(795,070)
(700,555)


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



2,000 (2023 - 2,000) Ordinary shares of £1.00 each
2,000
2,000
500 (2023 - 500) Deferred shares of £1.00 each
500
500

2,500

2,500



19.
Retained Earnings 


£

At 1 August 2023
2,798,904

Profit for the year
166,222

Dividends
(122,621)

At 31 July 2024
2,842,505

Page 24

 
JOHN PEARCE (GLYNNEATH) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024

20.


Capital commitments


At 31 July 2024 the Company had capital commitments as follows:

2024
2023
£
£


Contracted for but not provided in these financial statements
41,990
-

41,990
-


21.


Ultimate parent company

The immediate and ultimate parent undertaking is John Pearce (Glynneath) Holdings Ltd. John Pearce (Glynneath) Holdings Ltd is the parent undertaking of the smallest and largest group of undertakings to consolidate these financial statements at 31 July 2024. A copy of the consolidated financial statements may be obtained from the Registrar of Companies, Crown Way, Cardiff CF14 3UZ.


22.


Controlling party

There is no single ultimate controlling party.
 
Page 25