Company Registration No. 00608722 (England and Wales)
P.F. JONES (DIESEL SERVICES) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 AUGUST 2024
31 August 2024
PM+M Solutions for Business LLP
Chartered Accountants
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
P.F. JONES (DIESEL SERVICES) LIMITED
COMPANY INFORMATION
Director
Mr Leslie Latham Bailey
Secretary
Mrs Elizabeth Ann Bailey
Company number
00608722
Registered office
Nuttall Street
Old Trafford
Manchester
M16 9JA
Auditor
PM+M Solutions for Business LLP
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
P.F. JONES (DIESEL SERVICES) LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
P.F. JONES (DIESEL SERVICES) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -

The director presents the strategic report for the year ended 31 August 2024.

Review of the business

Whilst turnover has only increased slightly this year, debtors and creditors have reduced and cash has increased as have stock and profit. The director is extremely pleased with this set of results and is in expectation of good results for the next twelve months.

Principal risks and uncertainties

The director feels that there is no imminent risk to the business for either current or future trading other than those commercial risks normally associated with business.

Development and performance

The director is convinced that the company will continue to grow profitably over the next financial year as it has very strong relationships with its major customers and suppliers both in the UK and overseas. Strong processes and systems alongside an excellent operating procedure confirm this, together with an excellent reporting functionality.

 

The company is also moving forward this year with increasing sales again and is constantly looking to secure even better relationships with both suppliers and customers to further increase the yield.

Key performance indicators

The directors have chose to analyse the turnover, gross profit and EBITDA both expressed as a percentage of turnover for the understanding of the performance of the business.

 

2024

2023

Turnover

 

£34,563,331

£34,073,677

Gross Profit

 

18.8%

16.8%

EBITDA

 

£2,795,105

£2,327,538

 

 

 

 

On behalf of the board

Mr Leslie Latham Bailey
Director
28 January 2025
P.F. JONES (DIESEL SERVICES) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -

The director presents his annual report and financial statements for the year ended 31 August 2024.

Principal activities

The principal activity of the company continued to be that of repairing and servicing motor vehicles and parts distributors.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £5,883. The director does not recommend payment of a further dividend.

Director

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

Mr Leslie Latham Bailey
Auditor

The auditor, PM+M Solutions for Business LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

P.F. JONES (DIESEL SERVICES) LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
On behalf of the board
Mr Leslie Latham Bailey
Director
28 January 2025
P.F. JONES (DIESEL SERVICES) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF P.F. JONES (DIESEL SERVICES) LIMITED
- 4 -
Opinion

We have audited the financial statements of P.F. Jones (Diesel Services) Limited (the 'company') for the year ended 31 August 2024 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 director's 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 director 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 director is 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:

P.F. JONES (DIESEL SERVICES) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF P.F. JONES (DIESEL SERVICES) LIMITED (CONTINUED)
- 5 -
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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

 

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.

 

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

P.F. JONES (DIESEL SERVICES) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF P.F. JONES (DIESEL SERVICES) LIMITED (CONTINUED)
- 6 -

Identifying and assessing potential risks related to irregularities

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:

 

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Company's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

P.F. JONES (DIESEL SERVICES) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF P.F. JONES (DIESEL SERVICES) LIMITED (CONTINUED)
- 7 -

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 members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Johnson FCA
Senior Statutory Auditor
For and on behalf of PM+M Solutions for Business LLP
28 January 2025
Chartered Accountants
Statutory Auditor
New Century House
Greenbank Technology Park
Challenge Way
Blackburn
Lancashire
BB1 5QB
P.F. JONES (DIESEL SERVICES) LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
34,563,331
34,073,677
Cost of sales
(28,051,064)
(28,353,498)
Gross profit
6,512,267
5,720,179
Administrative expenses
(3,950,116)
(3,599,259)
Operating profit
4
2,562,151
2,120,920
Interest receivable and similar income
9
44,962
5,430
Interest payable and similar expenses
8
-
0
(4,834)
Profit before taxation
2,607,113
2,121,516
Tax on profit
10
(670,935)
(470,221)
Profit for the financial year
1,936,178
1,651,295
Retained earnings brought forward
6,348,879
4,757,237
Dividends
11
(5,883)
(59,653)
Retained earnings carried forward
8,279,174
6,348,879

The profit and loss account has been prepared on the basis that all operations are continuing operations.

P.F. JONES (DIESEL SERVICES) LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
1
1
Tangible assets
13
3,554,241
3,500,272
Investments
14
2
2
3,554,244
3,500,275
Current assets
Stocks
16
5,039,835
4,059,260
Debtors
17
2,460,139
3,529,571
Cash at bank and in hand
3,574,663
2,508,487
11,074,637
10,097,318
Creditors: amounts falling due within one year
18
(5,087,513)
(5,997,434)
Net current assets
5,987,124
4,099,884
Total assets less current liabilities
9,541,368
7,600,159
Creditors: amounts falling due after more than one year
19
(60,828)
(84,824)
Provisions for liabilities
Deferred tax liability
21
145,967
111,057
(145,967)
(111,057)
Net assets
9,334,573
7,404,278
Capital and reserves
Called up share capital
23
2,001
2,001
Share premium account
1,053,398
1,053,398
Profit and loss reserves
8,279,174
6,348,879
Total equity
9,334,573
7,404,278

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 28 January 2025
Mr Leslie Latham Bailey
Director
Company registration number 00608722 (England and Wales)
P.F. JONES (DIESEL SERVICES) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
2,190,591
1,557,213
Interest paid
-
0
(4,834)
Income taxes paid
(855,582)
(239,400)
Net cash inflow from operating activities
1,335,009
1,312,979
Investing activities
Purchase of tangible fixed assets
(320,999)
(167,810)
Proceeds from disposal of tangible fixed assets
37,083
77,561
Interest received
44,962
5,430
Net cash used in investing activities
(238,954)
(84,819)
Financing activities
Repayment of bank loans
-
0
(491,756)
Payment of finance leases obligations
(23,996)
(41,023)
Dividends paid
(5,883)
(59,653)
Net cash used in financing activities
(29,879)
(592,432)
Net increase in cash and cash equivalents
1,066,176
635,728
Cash and cash equivalents at beginning of year
2,508,487
1,872,759
Cash and cash equivalents at end of year
3,574,663
2,508,487
P.F. JONES (DIESEL SERVICES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
1
Accounting policies
Company information

P.F. Jones (Diesel Services) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Nuttall Street, Old Trafford, Manchester, M16 9JA.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

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

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% Straight Line
Fixtures and fittings
15% Reducing Balance
Motor vehicles
25% Reducing Balance
P.F. JONES (DIESEL SERVICES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 12 -

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.

1.6
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

P.F. JONES (DIESEL SERVICES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
1.10
Financial instruments

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

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, 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.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

P.F. JONES (DIESEL SERVICES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities

Derivatives, including interest rate swaps and 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, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

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 through 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.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
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 tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
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.

P.F. JONES (DIESEL SERVICES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
1.14
Retirement benefits

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

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

1.16
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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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. The main areas of judgement are in relation to stock provisions and the useful economic lives of the company's fixed assets.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods and services
34,563,331
34,073,677
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
30,926,083
27,836,921
Europe
2,740,595
5,268,539
Rest of world
896,653
968,217
34,563,331
34,073,677
P.F. JONES (DIESEL SERVICES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
3
Turnover and other revenue
(Continued)
- 16 -
2024
2023
£
£
Other revenue
Interest income
44,962
5,430
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
24,150
23,000
Depreciation of owned tangible fixed assets
232,956
186,284
Depreciation of tangible fixed assets held under finance leases
-
20,334
Profit on disposal of tangible fixed assets
(3,009)
(23,367)
Operating lease charges
256,500
161,396
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
24,150
23,000
6
Employees

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

2024
2023
Number
Number
Employees
110
110
Directors
1
1
Total
111
111

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,382,512
3,208,534
Social security costs
324,741
300,367
Pension costs
59,581
57,304
3,766,834
3,566,205
P.F. JONES (DIESEL SERVICES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 17 -
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
-
0
3,860
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
0
4,834
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
44,962
5,430
P.F. JONES (DIESEL SERVICES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
636,025
481,770
Deferred tax
Origination and reversal of timing differences
34,910
(11,549)
Total tax charge
670,935
470,221

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:

2024
2023
£
£
Profit before taxation
2,607,113
2,121,516
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
651,778
456,444
Tax effect of expenses that are not deductible in determining taxable profit
567
811
Tax effect of income not taxable in determining taxable profit
-
0
(657)
Fixed asset differences
21,184
17,394
Remeasurement of deferred tax for changes in tax rates
-
0
(1,610)
Other tax adjustments, reliefs and transfers
(2,594)
(2,161)
Taxation charge for the year
670,935
470,221
11
Dividends
2024
2023
£
£
Final paid
5,883
59,653
P.F. JONES (DIESEL SERVICES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
12
Intangible fixed assets
Goodwill
£
Cost
At 1 September 2023 and 31 August 2024
51,475
Amortisation and impairment
At 1 September 2023 and 31 August 2024
51,474
Carrying amount
At 31 August 2024
1
At 31 August 2023
1
13
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 September 2023
3,696,033
1,157,726
737,198
5,590,957
Additions
28,305
176,708
115,986
320,999
Disposals
-
0
(12,000)
(73,342)
(85,342)
At 31 August 2024
3,724,338
1,322,434
779,842
5,826,614
Depreciation and impairment
At 1 September 2023
816,771
930,263
343,651
2,090,685
Depreciation charged in the year
74,487
39,353
119,116
232,956
Eliminated in respect of disposals
-
0
(1,800)
(49,468)
(51,268)
At 31 August 2024
891,258
967,816
413,299
2,272,373
Carrying amount
At 31 August 2024
2,833,080
354,618
366,543
3,554,241
At 31 August 2023
2,879,262
227,463
393,547
3,500,272

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor vehicles
89,323
119,098
P.F. JONES (DIESEL SERVICES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
15
2
2
15
Subsidiaries

The below subsidiary is a dormant company.

Details of the company's subsidiaries at 31 August 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Potteries Diesel (Staffs) Limited
Nuttall Street, Old Trafford, Manchester, M16 9JA
Ordinary
100.00
16
Stocks
2024
2023
£
£
Finished goods and goods for resale
5,039,835
4,059,260
17
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,247,401
3,415,143
Prepayments and accrued income
212,738
114,428
2,460,139
3,529,571
18
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
20
23,996
23,996
Trade creditors
3,233,421
4,071,895
Corporation tax
262,795
482,352
Other taxation and social security
599,575
283,953
Other creditors
42,738
89,428
Accruals and deferred income
924,988
1,045,810
5,087,513
5,997,434
P.F. JONES (DIESEL SERVICES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
19
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
20
60,828
84,824
20
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
23,996
23,996
In two to five years
60,828
84,824
84,824
108,820

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is three years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
149,739
114,810
Short term timing differences
(3,772)
(3,753)
145,967
111,057
2024
Movements in the year:
£
Liability at 1 September 2023
111,057
Charge to profit or loss
34,910
Liability at 31 August 2024
145,967
P.F. JONES (DIESEL SERVICES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
59,581
57,304

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.

23
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
1,001
1,001
1,001
1,001
B Ordinary shares of £1 each
1,000
1,000
1,000
1,000
2,001
2,001
2,001
2,001
24
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
61,100
20,710
Between two and five years
185,622
31,438
In over five years
65,229
-
0
311,951
52,148
25
Related party transactions

The company rented property from the director and paid rent totalling £190,035 (2023 - £104,932). There was no amount outstanding at the year end (2023 - £nil).

26
Directors' transactions

Dividends totalling £5,883 (2023 - £59,653) were paid in the year in respect of shares held by the company's director.

At the year end the company owed the director £42,736 (2023 - £89,426). The maximum amount owing in the year from the company was £89,494 (2023 - £157,019).

P.F. JONES (DIESEL SERVICES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -
27
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,936,178
1,651,295
Adjustments for:
Taxation charged
670,935
470,221
Finance costs
-
0
4,834
Investment income
(44,962)
(5,430)
Gain on disposal of tangible fixed assets
(3,009)
(23,367)
Depreciation and impairment of tangible fixed assets
232,956
206,618
Movements in working capital:
Increase in stocks
(980,575)
(339,739)
Decrease/(increase) in debtors
1,069,432
(525,689)
(Decrease)/increase in creditors
(690,364)
118,470
Cash generated from operations
2,190,591
1,557,213
28
Analysis of changes in net funds
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
2,508,487
1,066,176
3,574,663
Obligations under finance leases
(108,820)
23,996
(84,824)
2,399,667
1,090,172
3,489,839
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