Company registration number 03665264 (England and Wales)
JENSEN UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
JENSEN UK LIMITED
COMPANY INFORMATION
Directors
J M Jensen
D Cagdas
(Appointed 19 November 2024)
Company number
03665264
Registered office
Unit 5
Network 11
Thorpe Way
Banbury
Oxfordshire
OX16 4XS
Auditor
Whitley Stimpson Limited
Penrose House
67 Hightown Road
Banbury
Oxfordshire
OX16 9BE
Business address
Unit 5
Network 11
Thorpe Way
Banbury
Oxfordshire
OX16 4XS
JENSEN UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of cash flows
11
Notes to the financial statements
12 - 26
JENSEN UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present their strategic report for the year ended 31 December 2023.

Fair review of the business

The results for the year and the financial position of the company at the year end, as detailed on pages 9 and 10, with a turnover of £10,972,533 or 28.3% lower compared to 2022, due to last year having had a couple of larger project installations. Profit before taxation was £70,174 (2022 - £244,427).

The gross profit margin increased due a change in the sales mix from more aftermarket sales compared to overall large projects.

We are on a continued growth path and are expanding our team to support the market.

Principal risks

The major risks facing the company are the general economic uncertainty affecting the investment climate, travel restrictions across the world in the event of new pandemic emerging, the access to financing for our customers, high exchange rate volatility and fluctuating raw material, energy, and transport prices, high inflation as well as the risks triggered by the potential destabilizing impact of geo-political and military threats and competitive pressures. The company expects the investment climate to remain unpredictable and volatile in 2024.

 

The company expects manufacturing productivity, production output, and supplier delivery schedules to continue to improve in 2024.

 

The company expects production costs to continue to be impacted in 2024 due to the increase in raw material and component prices and remunerations.

 

The risk of fluctuating raw material, energy prices and transport prices is mitigated through the use of price lists with our factories, clear written orders with third party suppliers and adaptations of our customers’ quotes if needed.

 

JENSEN GROUP are constantly expanding and adapting the product range to address the changes in the markets.

 

The directors continue to monitor the situation on a day-by-day basis to ensure that wherever possible, corrective action is taken to mitigate the risk to the company.

 

The directors believe that these actions should enable the company to trade for the foreseeable future.

 

Financial risk management

The company's operations expose it to a variety of financial risks that include the effects of movements in exchange rates, credit risk and liquidity. To manage this risk the company identifies future currency requirements and enters into forward exchange contracts to meet the requirement.

 

Foreign currency risk

Exchange rate risk emerges when commitments are made (orders /​ contracts) in other currencies than the home currency. JENSEN UK Ltd manages this exposure by preparing 12 weeks rolling cashflows and taking out necessary foreign currency contracts.

 

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 counterparty is subject to limits, which are assessed by the management and where appropriate, the board.

 

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies. This is done on corporate level in line with group policy.

 

Liquidity risk

The company has a good balance sheet with net current assets of £3,986,491 (2022 - £3,991,315).

 

JENSEN UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

BREXIT

In an attempt to minimise the impact of BREXIT, stock of fast moving parts and heavy items requiring road movements are being managed on a weekly basis to allow for increased customs clearance times.

 

The directors continue to assess the impact of the BREXIT and concur with the JENSEN-GROUP N.V's view that no significant impact from the BREXIT is expected. Potential impact of possible protectionist movements are not expected.

 

A review of the company's terms and conditions has been carried out to ensure that the risk is reduced for delivery issues and delays which are beyond the company's control.

Future developments

The consolidation of our customers continues, resulting in a fierce price battle on each project. In future, JENSEN UK Limited will benefit from the JENSEN GROUP's companywide new product range.

Key performance indicators

The company's overall strategy is aligned with that of the JENSEN-GROUP N.V, the ultimate controlling party. The board monitors progress by reference to the following key performance indicators. Performance in the year together with historical data is set out below:

 

 

 

2023

2022

2021

2020

2019

2018

Definition and method of

calculation

Growth/​(decrease) in sales

 

(28.3)%

116.0%

72.8%

(59.4)%

(15.4)%

(52.1)%

Year on year change as

a percentage.

Gross margin

 

20.4%

14.4%

33.8%

27.7%

25.9%

21.1%

Gross profit percentage

 

Transfer pricing agreement

The transfer pricing agreement (TPA) calculation is in line with the group transfer pricing policy, based on two years rolling average, resulting in a £336,050 TPA adjustment for 2023 (2022 - £nil)

On behalf of the board

J M Jensen
Director
14 January 2025
JENSEN UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their report and the audited financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of the distribution and installation of heavy duty laundry equipment to UK customers.

Results and dividends

The results for the year are set out on pages 9 and 10.

Ordinary dividends paid during the year amounted to £88,058.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

J M Jensen
M Schalch
(Resigned 19 November 2024)
D Cagdas
(Appointed 19 November 2024)
Directors' insurance

The company maintains insurance policies on behalf of all the directors against liability arising from negligence, breach of duty and breach of trust in relation to the company.

Treasury operations and financial instruments

The financial activities within the JENSEN-GROUP N.V. are performed by treasury, part of corporate finance, responsible for all the banking relations and enables the subsidiaries to focus on their core activities while benefiting from the cash management experience available by JENSEN Industrial Group A/​S. JENSEN Industrial Group A/​S takes the managerial role in managing the group's cash pool whereas JENSEN-GROUP NV is responsible for the treasury function.

The company’s principal financial instruments include derivative financial instruments, the purpose of which is to manage currency risks and interest rate risks arising from the company’s activities. The main purpose is to raise finance for the company’s operations. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations. Derivative transactions which the company enters into principally comprise forward exchange contracts. In accordance with the company’s treasury policy, derivative instruments are not entered into for speculative purposes.

Financial risk management

Financial risk management is discussed further in the strategic report on pages 1 and 2.

Post reporting date events

There are no significant post-balance sheet events.

 

Going concern

Given the company’s strong reserves and cashflow position, the directors have considered the company's ability to continue as a going concern. At the balance sheet date, the company had net assets of £3,858,803 (2022: £3,887,122 ), with a net cash position of £850,145 (2022: £1,487,812). On the back of the Covid-19 crisis, we are continuing to prepare cash flow forecasts on a rolling basis at a JENSEN UK and a group level and these have been sensitised with various scenarios and cash projections.

 

Furthermore, the company has access to group cash pooling facilities which enables the company to manage its cashflows.

 

Accordingly, the directors believe that it is appropriate that these financial statements are prepared on a going concern basis.

JENSEN UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Future developments

The directors intend to continue to operate the company with its existing activities, whilst taking advantage of opportunities as they arise. Future developments are discussed further in the strategic report on pages 1 and 2.

Auditor

In accordance with the company's articles, a resolution proposing that Whitley Stimpson Limited be reappointed as auditor of the company will be put at a General Meeting.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's Strategic Report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' Report. It has done so in respect of the performance of the company and financial risk management.

Statement of disclosure to auditor

In the case of each director in office at the date the Directors’ Report is approved:

 

• so far as the director is aware, there is no relevant audit information of which the company’s auditors are unaware; and

• they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

On behalf of the board
J M Jensen
Director
14 January 2025
JENSEN UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, 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 the financial statements, the directors are required to:

 

• select suitable accounting policies and then apply them consistently;

 

• state whether applicable United Kingdom Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements;

 

• make judgements and accounting estimates that are reasonable and prudent; and

 

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

 

The directors are 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.

 

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.

JENSEN UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF JENSEN UK LIMITED
- 6 -
Opinion

We have audited the financial statements of JENSEN UK Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 our audit:

JENSEN UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF JENSEN UK LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

JENSEN UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF JENSEN UK LIMITED (CONTINUED)
- 8 -

Based on our understanding of the company and industry, as well as the group structure, we identified that the principal risks of non-compliance with laws and regulations related to the risk of revenue recognition being materially misstated due to fraud, and the calculation of the provisions and management charges. We considered the extent to which non-compliance might have a material effect on the financial statements, and considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006 and tax legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks related to revenue.

 

Audit procedures performed included:

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

14 January 2025
Michelle Lucas
Senior Statutory Auditor
For and on behalf of Whitley Stimpson Limited
Chartered Accountants
Statutory Auditor
Penrose House
67 Hightown Road
Banbury
Oxfordshire
OX16 9BE
JENSEN UK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
10,972,533
15,306,487
Cost of sales
(8,735,167)
(13,100,150)
Gross profit
2,237,366
2,206,337
Distribution costs
(588,581)
(456,707)
Administrative expenses
(1,806,918)
(1,690,293)
Other operating income
192,073
181,096
Operating profit
4
33,940
240,433
Interest receivable and similar income
7
39,293
8,205
Interest payable and similar expenses
8
(3,059)
(4,211)
Profit before taxation
70,174
244,427
Tax on profit
9
(10,435)
(46,680)
Profit for the financial year
59,739
197,747
Retained earnings brought forward
737,122
712,401
Dividends
10
(88,058)
(173,026)
Retained earnings carried forward
708,803
737,122

The statement of income and retained earnings has been prepared on the basis that all operations are continuing operations.

 

There is no other comprehensive income for the year.

JENSEN UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
63,437
51,764
Current assets
Stocks
13
672,728
629,423
Debtors
15
4,040,037
3,549,440
Cash at bank and in hand
850,145
1,487,812
5,562,910
5,666,675
Creditors: amounts falling due within one year
16
(1,576,419)
(1,675,360)
Net current assets
3,986,491
3,991,315
Total assets less current liabilities
4,049,928
4,043,079
Provisions for liabilities
Provisions
17
191,125
155,957
(191,125)
(155,957)
Net assets
3,858,803
3,887,122
Capital and reserves
Called up share capital
20
3,150,000
3,150,000
Profit and loss reserves
708,803
737,122
Total equity
3,858,803
3,887,122
The financial statements were approved by the board of directors and authorised for issue on 14 January 2025 and are signed on its behalf by:
J M Jensen
D Cagdas
Director
Director
Company Registration No. 03665264
JENSEN UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
(514,388)
(194,940)
Interest paid
(3,059)
(4,211)
Income taxes paid
(46,548)
(149,558)
Net cash outflow from operating activities
(563,995)
(348,709)
Investing activities
Purchase of tangible fixed assets
(42,982)
(9,589)
Proceeds from disposal of tangible fixed assets
7,075
10,000
Interest received
39,293
8,205
Net cash generated from investing activities
3,386
8,616
Financing activities
Repayment of derivatives
11,000
(40,000)
Dividends paid
(88,058)
(173,026)
Net cash used in financing activities
(77,058)
(213,026)
Net decrease in cash and cash equivalents
(637,667)
(553,119)
Cash and cash equivalents at beginning of year
1,487,812
2,040,931
Cash and cash equivalents at end of year
850,145
1,487,812
JENSEN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

JENSEN UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 5, Network 11, Thorpe Way, Banbury, Oxfordshire, OX16 4XS.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, as modified by derivative financial instruments measured at fair value through the statement of income and retained earnings. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents amounts receivable from customers in relation to the installation of goods. Amounts are recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing the actual costs incurred to the budgeted costs for each project. Costs associated with future contracts are not considered within this calculation. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principle outstanding and the effective interest rate applicable.

1.4
Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs.

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Fixtures, fittings and equipment
20% - 33% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

JENSEN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Stock is valued at the the lower of cost and estimated selling price less costs to sell. Cost is determined on a first in first out basis and comprises all expenditure that has been incurred in the normal course of business in bringing the stocks to their present location and condition. Net realisable value is the net amount at which it is expected that items can be disposed of after allowing for the costs of disposal.

 

Stock provisions

Provisions are made against specific stock lines, where necessary to ensure that they are valued at their net realisable value if this is lower than cost.

1.7
Construction contracts

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

The company holds the following financial instruments:

 

•    Cash;

•    Short term trade debtors and creditors;

•    Short term intra group trade debtors and creditors;

•    Forward currency contracts.

Basic financial assets

Basic financial assets comprise short term trade balances with third parties and other group companies and cash and bank balances. Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Other financial assets

Other financial assets are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

JENSEN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities

Basic financial liabilities comprise short term trade balances with third parties and other group companies. Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Other financial liabilities

Derivatives, including forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Derivatives

The company uses derivative financial instruments in the form of forward currency contracts to reduce exposure to foreign exchange risk. It does not hold derivatives for speculative purposes.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

JENSEN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date.

 

Timing differences are differences between the company's taxable profits and its results as stated in the financial statements.

 

Deferred taxation is measured at the tax rates that are expected to apply in the periods in which timing differences are expected to reverse based on the tax rates and laws that have been enacted or substantially enacted by the balance sheet date. Deferred taxation is measured on a non-discounted basis.

 

Deferred taxation assets are recognised where, in the opinion of the directors, it is more likely than not that these amounts will be recovered against sufficient, suitable taxable profits.

1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation 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 reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

JENSEN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.16

Dividends

Dividends to the company’s shareholders are recognised as a liability in the financial statements in the period in which the dividends are approved by the board of directors of the company.

JENSEN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

There were no critical management judgements, other than determination of the percentage of completion of projects, which is used to calculate revenue and profit.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Warranty provision

Provision is made for the estimated liability on all laundry equipment still under warranty, including claims already received. This is based on history and the experience and judgment of management. The provision at the year end amounted to £64,209 (2022 - £75,957).

Long term contracts - stage of completion

Amounts recoverable on long term contracts are determined as the proportion of the costs incurred to date to estimated total costs. Estimated total costs of a specific project is management's best estimate at the time of entering into that contract, which is based on the costs of parts, as well as the experience and judgement of management. The balance at the year end amounted to £169,459 (2022 - £870,412).

Stock provision

Incorporated within the valuation of raw materials and consumables, the company uses judgements and estimates in respect of the write down of old, slow moving and obsolete stock. The provision at the year end amounted to £343,411 (2022 - £296,765).

Dilapidation provision

The company has estimated the cost of dilapidations that would arise at the end of the lease period to revert the property as detailed by the lease agreement as detailed within note 17. The provision at the year end amounted to £96,500 (2022 - £80,000).

Legal fees provisions

The company has estimated the cost of legal fees relating to contractual obligations, to be £30,416 (2022 - £nil).

Bad debt provision

Incorporated within the valuation of trade debtors, the company uses judgements and estimates in respect of the write down of aging debt. The provision at the year end amounted to £358,792 (2022 - £117,360).

JENSEN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sales
10,636,483
15,306,487
Group transfer price adjustment
336,050
-
10,972,533
15,306,487
2023
2022
£
£
Other significant revenue
Interest income
39,293
8,205

In the opinion of the directors it would be seriously prejudicial to the company to provide a geographical breakdown of the turnover.

4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
22,157
(26,677)
Fees payable to the company's auditor for the audit of the company's financial statements
20,000
20,000
Depreciation of owned tangible fixed assets
31,308
29,012
Profit on disposal of tangible fixed assets
(7,074)
(10,000)
Operating lease charges
166,914
94,961
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Operational
7
7
Administrative and sales
13
13
Total
20
20
JENSEN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,017,345
1,015,121
Social security costs
130,217
131,986
Pension costs
51,738
50,814
1,199,300
1,197,921
6
Directors' remuneration

No remuneration was paid to the directors.

The directors did not receive any remuneration or benefits during the current or previous year for their services to the company.

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
39,280
8,205
Other interest income
13
-
0
Total income
39,293
8,205
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
39,280
8,205
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
3,059
4,211
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
46,535
JENSEN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
2023
2022
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
10,435
145
Total tax charge
10,435
46,680

On 1 April 2023, the rate of corporation tax in the UK was raised from 19% to 25%.

 

This gave an effective corporation tax rate of 23.52% (2022 - 19%)

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
70,174
244,427
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
16,505
46,441
Tax effect of expenses that are not deductible in determining taxable profit
5,650
751
Unutilised tax losses carried forward
(10,517)
-
0
Effect of change in corporation tax rate
(893)
35
Permanent capital allowances in excess of depreciation
(310)
(547)
Taxation charge for the year
10,435
46,680
10
Dividends
2023
2022
£
£
Interim paid
88,058
173,026
JENSEN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
11
Tangible fixed assets
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 January 2023
85,801
163,344
249,145
Additions
42,982
-
0
42,982
Disposals
-
0
(26,401)
(26,401)
At 31 December 2023
128,783
136,943
265,726
Depreciation and impairment
At 1 January 2023
75,568
121,813
197,381
Depreciation charged in the year
14,232
17,076
31,308
Eliminated in respect of disposals
-
0
(26,400)
(26,400)
At 31 December 2023
89,800
112,489
202,289
Carrying amount
At 31 December 2023
38,983
24,454
63,437
At 31 December 2022
10,233
41,531
51,764
12
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
6,000
17,000
13
Stocks
2023
2022
£
£
Raw materials and consumables
672,728
629,423

Provision of £343,411 (2022 - £296,765) was held against stock during the year due to slow moving and obsolete stock. The value of stock at the year end is not materially different to the replacement cost.

JENSEN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
14
Construction contracts
2023
2022
£
£
Contracts in progress at the reporting date
Gross amounts owed by contract customers included in debtors
528,906
941,912
Gross amounts owed to contract customers included in creditors
(716,885)
(71,500)
Contract revenues recognised
Contract costs incurred plus recognised profits less recognised losses to date
2,382,534
3,266,349
Less: progress billing
(2,213,075)
(2,395,937)
169,459
870,412
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,163,427
2,143,643
Gross amounts owed by contract customers
528,906
941,912
Corporation tax recoverable
13
-
0
Amounts owed by group undertakings
57,479
154,774
Derivative financial instruments
6,000
17,000
Other debtors
59,534
54,048
Prepayments and accrued income
110,751
113,701
3,926,110
3,425,078
Deferred tax asset (note 18)
113,927
124,362
4,040,037
3,549,440

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

 

During the year a £11,000 loss (2022 - £40,000 gain) has been recognised in profit or loss for change in fair value of derivative financial instruments.

16
Creditors: amounts falling due within one year
2023
2022
£
£
Payments received on account
82,399
438,912
Trade creditors
157,733
157,981
Gross amounts owed to contract customers
716,885
71,500
Amounts owed to group undertakings
236,931
545,435
Corporation tax
-
0
46,535
Other taxation and social security
205,212
110,321
Accruals and deferred income
177,259
304,676
1,576,419
1,675,360
JENSEN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Creditors: amounts falling due within one year
(Continued)
- 23 -

Amounts owed to group undertakings are unsecured, interest free and repayable on demand.

17
Provisions for liabilities
2023
2022
£
£
Warranty provision
64,209
75,957
Dilapidation provision
96,500
80,000
Legal fees provision
30,416
-
191,125
155,957
Movements on provisions:
Warranty provision
Dilapidation provision
Legal fees provision
Total
£
£
£
£
At 1 January 2023
75,957
80,000
-
155,957
Additional provisions in the year
47,783
16,500
30,416
94,699
Reversal of provision
(59,531)
-
-
(59,531)
At 31 December 2023
64,209
96,500
30,416
191,125

The warranty provision relates to warranties provided on items sold by the company. The warranty was normally for a period of twelve months, however for contracts starting after 1st January 2022 the company offered a warranty period of 24 months. The provision is made to the extent that costs cannot be recharged to the parent undertaking. Uncertainties remain in relation to actual costs incurred where actual instances of failure differ from expected instances of failure.

The dilapidation provision relates to the directors' estimated costs in respect of the restoration to its original condition of the leasehold property on the termination of the lease. This is expected to be utilised after the end of the current lease agreement in 2026. Uncertainties arise in relation to the final value of costs required to be incurred by the company in order to meet the necessary obligations to effect the restoration of the property.

The legal fees provision relates to future obligations for compensation which the company is likely to be required to pay to settle outstanding legal cases. These legal cases are ongoing and therefore there remains uncertainty over the timing of the payment, together with the final amounts payable to claimants.

JENSEN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
18
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
(2,172)
4,994
Tax losses
79,141
104,660
Other general provisions
25,557
-
General bad debt provisions
12,901
18,958
Deferred tax on derivatives
(1,500)
(4,250)
113,927
124,362
2023
Movements in the year:
£
Asset at 1 January 2023
(124,362)
Charge to profit or loss
10,435
Asset at 31 December 2023
(113,927)

The deferred tax asset set out above in relation to tax losses is expected to reverse within 12 months and relates to the utilisation of these tax losses against future expected profits of the same period.

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
51,738
50,814

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
3,150,000
3,150,000
3,150,000
3,150,000
JENSEN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
21
Financial commitments, guarantees and contingent liabilities

Financial guarantees

The bank overdraft facility is secured by a "letter of intent" from JENSEN - Industrial Group A/S.

 

Contingent liabilities

During the reporting period, damages were caused to a factory's infrastructure during the installation of an industrial laundry machine.

 

Jensen UK Limited believe that they could be liable to pay damages, estimated between £106,000 - £300,000. The amount is uncertain as discussions with legal representatives and a third party haulage company are on-going.

22
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for its property and motor vehicles under normal commercial contracts.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
119,538
89,705
Between two and five years
160,751
180,283
280,289
269,988
23
Related party transactions

In accordance with section 33.1A of FRS 102 disclosure is not given in these financial statements of transactions entered into between two or more members of the Jensen group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.

 

Gotli Labs AG is a company registered in Switzerland, in which parent company Jensen Industrial Group owns 51% of the ordinary share capital. During the year Jensen UK Limited purchased goods to the sum of £900 (2022 - £2,880) from Gotli Labs AG. During the year Jensen UK Limited sold goods to the sum of £2,816 (2022 - £nil) to Gotli Labs AG. As at 31 December 2023 Jensen UK Limited had a debtor of £2,797 (2022 - £2,980 creditor) due from Gotli Labs AG.

 

Tolon Europe BV is a company registered in Belgium, in which parent company Jensen Industrial Group owns 49% of the ordinary share capital. During the year Jensen UK Limited purchased goods to the sum of £29,968 (2022 - £59,449) from Tolon Europe BV. As at 31 December 2023 Jensen UK Limited owed £nil (2022 - £9,919) to Tolon Europe BV.

 

Inwatec ApS is a company registered in Denmark, in which the parent company Jensen Industrial Group owns 70% of the ordinary share capital. During the year Jensen UK Limited purchased goods to the sum of £19,238 (2022 - £2,464) from Inwatec ApS. As at 31 December 2023 Jensen UK Limited owed £nil (2022 - £1,293) to Inwatec ApS.

 

Amounts owed to/by group undertakings are payable/repayable under normal commercial terms.

JENSEN UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
24
Ultimate controlling party

The company's immediate parent undertaking is JENSEN Industrial Group A/S which is incorporated in Denmark.

The ultimate controlling party and ultimate parent undertaking of the company is JENSEN-GROUP N.V, a company registered in Belgium.

Copies of the financial statements of the ultimate parent company, which is the largest and smallest group into which it is consolidated, may be obtained from JENSEN UK Limited, Unit 5, Network 11, Thorpe Way, Banbury, Oxfordshire, OX16 4XS.

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