Company registration number 04226877 (England and Wales)
JOHN FREDERICKS PLASTICS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
JOHN FREDERICKS PLASTICS LIMITED
COMPANY INFORMATION
Directors
M Dicconson
Mr P McManus
Secretary
Mrs J E Dicconson
Company number
04226877
Registered office
Lindley Moor Road
Huddersfield
HD3 3RW
Auditor
Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
JOHN FREDERICKS PLASTICS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
JOHN FREDERICKS PLASTICS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -

The directors present the strategic report for the year ended 31 October 2024.

Business review

The financial year ending 2024 was seen as a challenging year for UK manufacturing and the home improvement market was behind market expectations. A significant increase in the government’s minimum wage structure meant we had to increase our selling prices in April 2024 to ensure our gross margin was not adversely affected, and our investment strategy could continue.

The company’s long term strategy of structured profitability and sustainable growth achieved through a combination of continuous investment in automated machinery, IT infrastructure, product development and industry leading customer service has continued to prove an extremely successful and resilient business model for JFP. At John Fredericks Plastics Ltd turnover continued to grow: at £22.2m this was an 11% increase over the previous 2022/23 financial year. The management team continued to control all key elements of the business which resulted in profit before tax of £1.871m compared to £1.741m in Y/E 2022/23, an increase of 7.5%. We have invested heavily in factory and site refurbishment to ensure we are prepared for the future. As part of our program of refurbishment we have replaced the factory roof and installed approximately 600 solar panels. This is reflected in the increased rental figure and was funded by the landlord. The benefit of reduced heating costs, no expensive roof repairs and the solar energy produced to power our factory ensure a long-term sustainable future for the business in our current location. Our aluminium factory continues to grow and is supported by the PVC business during this growth stage. We continue to use a selection of company metrics or KPI’s to measure our successes/failings to ensure we respond to issues quickly and effectively. Our strategy of marginal gains throughout the business continues and adds value to the ongoing profitability of the company.

At the balance sheet date there were no bank borrowings.

Principal risks and uncertainties

The Directors have considered the principal risks and uncertainties during the coming year, many of which are driven by factors which the Directors either cannot control, or which are difficult to predict. However, diligent monitoring and swift reaction to adverse factors both act to minimise the potential impact on the business.

The key business risks affecting the Company are considered to be:

JOHN FREDERICKS PLASTICS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
Key performance indicators

The Directors consider that the key financial indicators of the business are turnover, operating profit and bank loans and overdrafts.

 

The indicators and comparison with 2023 and prior years may be summarised as follows: ‑

 

Year ended

Year ended

Year ended

Year ended

18m ended

 

31-Oct

31-Oct

31-Oct

30-Oct

30-Oct

 

2024

2023

2022

2021

2020

 

£

£

£

£

£

Turnover

22.2m

20.0m

18.0m

15.4m

17.4m

Operating profit/(loss)

2,001k

1,846k

1,837k

1.181k

175k

Other performance indicators

An important non‑financial key performance indicator ("KPI") is the reportable accidents per employee of which there were none in the current or prior period.

 

Future developments

The Company’s long-term business strategy continues to be striving to be a customer-focused, innovative and efficient manufacturer of PVC-U and aluminium windows/​doors. We employ our continuous development strategy to improve and increase the efficiency of each element of our business. To maximise our profitability, we strive to reduce wastage, improve factory processes and continually upgrade our IT systems. We continue to develop and improve our product range and bespoke marketing package and are constantly offering additional services to customers, enhancing the relationship and strengthening customer retention.

We continue to invest in new automated machinery, have further upgraded the delivery vehicle fleet and have initiated numerous new IT projects, all to increase capacity whilst ensuring we have the infrastructure to grow our business in a sustainable and structured manner.

The Home Improvement market generally remains buoyant, but there has been a slowdown generally because of higher interest rates and therefore less disposable income. The window industry has seen some significant business failures, generally PE run businesses with poor management, no investment and low margins, and this has offered opportunities for us to pick up new business. Our innovative product range and proven 55-year track record of excellence has proven attractive to prospective customers, and this has resulted in us outperforming many competitors.

On behalf of the board

M Dicconson
Director
20 February 2025
JOHN FREDERICKS PLASTICS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -

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

Principal activities

The principal activity of the company during the year was the manufacture and distribution of double glazed UPVC doors, windows and conservatories.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £594,000. The directors do not recommend payment of a further dividend.

Directors

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

M Dicconson
Mr P McManus
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Auditor

Ensors Accountants LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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.

Going concern

The company has continued to trade profitably after the balance sheet date and expects this to continue for the foreseeable future.

The Directors have reviewed the company forecasts through to October 2025 to assess the level of finance required. In their consideration of going concern, the Directors have reviewed the cash forecasts and revenue projections, which they believe are based on prudent market data and past experience. Forecasts for the year to October 2025 show that the company will remain profitable, there is sufficient headroom in the available funding facility to continue as a going concern, and meet its liabilities as they fall due.

Medium-sized companies exemption

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

JOHN FREDERICKS PLASTICS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
On behalf of the board
M Dicconson
Director
20 February 2025
JOHN FREDERICKS PLASTICS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 5 -

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

JOHN FREDERICKS PLASTICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JOHN FREDERICKS PLASTICS LIMITED
- 6 -
Opinion

We have audited the financial statements of John Fredericks Plastics Limited (the 'company') for the year ended 31 October 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

JOHN FREDERICKS PLASTICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JOHN FREDERICKS PLASTICS 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.

Our audit was designed to include tests of detail together with an assessment of the control environment to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. This included work on areas where we consider there is a higher risk of fraud including revenue recognition, management override of systems and control, transactions with related parties, commitments and contingencies and accounting estimates.

 

We also obtained an understanding of the legal and regulatory framework that the company operates in, through discussions with the directors and other management, and from our own knowledge and experience of the sector.

JOHN FREDERICKS PLASTICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JOHN FREDERICKS PLASTICS LIMITED (CONTINUED)
- 8 -

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

 

 

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

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.

Barry Gostling (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP, Statutory Auditor
Chartered Accountants
Connexions
159 Princes Street
Ipswich
IP1 1QJ
20 February 2025
JOHN FREDERICKS PLASTICS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
22,221,490
20,057,291
Cost of sales
(16,557,246)
(14,842,223)
Gross profit
5,664,244
5,215,068
Administrative expenses
(3,663,306)
(3,369,501)
Operating profit
4
2,000,938
1,845,567
Interest receivable and similar income
7
9,290
-
0
Interest payable and similar expenses
8
(139,126)
(104,772)
Profit before taxation
1,871,102
1,740,795
Tax on profit
9
(488,915)
(419,119)
Profit for the financial year
1,382,187
1,321,676

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

JOHN FREDERICKS PLASTICS LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
58,828
57,430
Tangible assets
12
3,212,645
1,967,444
3,271,473
2,024,874
Current assets
Stocks
13
1,288,555
1,189,560
Debtors
14
3,085,711
2,618,880
Cash at bank and in hand
1,986,332
1,305,039
6,360,598
5,113,479
Creditors: amounts falling due within one year
15
(3,934,856)
(3,296,742)
Net current assets
2,425,742
1,816,737
Total assets less current liabilities
5,697,215
3,841,611
Creditors: amounts falling due after more than one year
16
(1,503,365)
(769,833)
Provisions for liabilities
Provisions
18
42,785
42,785
Deferred tax liability
19
787,206
453,321
(829,991)
(496,106)
Net assets
3,363,859
2,575,672
Capital and reserves
Called up share capital
21
10,000
10,000
Profit and loss reserves
3,353,859
2,565,672
Total equity
3,363,859
2,575,672

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

The financial statements were approved by the board of directors and authorised for issue on 20 February 2025 and are signed on its behalf by:
M Dicconson
Director
Company registration number 04226877 (England and Wales)
JOHN FREDERICKS PLASTICS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2022
10,000
1,997,996
2,007,996
Year ended 31 October 2023:
Profit and total comprehensive income
-
1,321,676
1,321,676
Dividends
10
-
(754,000)
(754,000)
Balance at 31 October 2023
10,000
2,565,672
2,575,672
Year ended 31 October 2024:
Profit and total comprehensive income
-
1,382,187
1,382,187
Dividends
10
-
(594,000)
(594,000)
Balance at 31 October 2024
10,000
3,353,859
3,363,859
JOHN FREDERICKS PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
1
Accounting policies
Company information

John Fredericks Plastics Limited is a private company limited by shares incorporated in England and Wales. The registered office is Lindley Moor Road, Huddersfield, HD3 3RW. The nature of the Company's operations and its principals activities can be found in the Strategic Report.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of John Fredericks Plastics Group Limited. These consolidated financial statements are available from its registered office, Lindley Moor Road, Huddersfield, HD3 3RW

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the truegroup 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 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. Turnover is recognised when goods have been delivered.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Software
25% per annum
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.

JOHN FREDERICKS PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -

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:

Leasehold improvements
25% per annum
Plant and equipment
15% per annum
Office and computer equipment
25% per annum
Motor vehicles
20 - 25% per annum

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
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.

1.7
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.8
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.

1.9
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.

JOHN FREDERICKS PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
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, 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.

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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

 

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

 

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.

JOHN FREDERICKS PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
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.

Debt Factoring

The Company has an invoice discounting agreement. The amount owed by customers to the Company is included within trade debtors and the amount owed to the invoice discounting company is included within creditors. The amount owed to the invoice discounting company represents the difference between the amounts advanced by the discounting company and the invoices discounted. The interest element of the invoice discounting charges and other related costs are recognised as they accrue and included in the Statement of Comprehensive Income within interest payable and similar expenses.

Derecognition of financial liabilities

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

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 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.

JOHN FREDERICKS PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
1.11
Provisions

Provision is made for liabilities arising in respect of extended warranty claims on warranties provided in conjunction with the sale of goods. Provisions are recognised when the Company has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and that obligation can be estimated reliably. The provision is based on expected costs to be incurred over the next 10 years based on previous warranty claims.

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.

1.13
Retirement benefits

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

1.14
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.

JOHN FREDERICKS PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Leases

In categorising leases as hire purchases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee.

Impairment of assets

In determining whether there are indicators of impairment of the company's tangible and intangible assets management make judgements. The factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

 

Using the information available at the reporting date, the Directors make judgements based on their experience on the level of impairment required for stock and trade debtors and the provision for future warranty costs. Further information received after the statement of financial position date may impact on the level of provision.

3
Turnover and other revenue

The total turnover of the Company for the period has been derived from its principal activity wholly undertaken in the United Kingdom.

 

 

2024
2023
£
£
Other revenue
Interest income
9,290
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
25,920
20,500
Depreciation of owned tangible fixed assets
567,331
405,684
Amortisation of intangible assets
28,962
23,305
Operating lease charges
462,884
369,512
JOHN FREDERICKS PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
5
Employees

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

2024
2023
Number
Number
Production
129
129
Administration, marketing and distribution
57
48
Total
186
177

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,814,926
5,008,890
Social security costs
546,436
459,408
Pension costs
120,116
101,181
6,481,478
5,569,479
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
24,848
15,739

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

 

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
9,290
-
0
8
Interest payable and similar expenses
2024
2023
£
£
Interest on invoice finance arrangements
1,283
12,440
Interest on finance leases and hire purchase contracts
137,843
92,332
139,126
104,772
JOHN FREDERICKS PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
155,030
301,543
Deferred tax
Origination and reversal of timing differences
333,885
117,576
Total tax charge
488,915
419,119

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
1,871,102
1,740,795
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.49%)
467,776
391,505
Tax effect of expenses that are not deductible in determining taxable profit
3,356
7,633
Group relief
-
0
(3,760)
Deferred tax adjustments in respect of prior years
333,885
-
0
Fixed asset timing differences
(308,842)
22,456
Other timing differences
-
0
(712)
Other differences
(7,260)
1,997
Taxation charge for the year
488,915
419,119

 

10
Dividends
2024
2023
£
£
Final paid
594,000
754,000
JOHN FREDERICKS PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
11
Intangible fixed assets
Software
£
Cost
At 1 November 2023
154,170
Additions - internally developed
30,360
At 31 October 2024
184,530
Amortisation and impairment
At 1 November 2023
96,740
Amortisation charged for the year
28,962
At 31 October 2024
125,702
Carrying amount
At 31 October 2024
58,828
At 31 October 2023
57,430

 

12
Tangible fixed assets
Leasehold improvements
Plant and equipment
Office and computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 November 2023
66,796
4,720,823
655,880
998,107
6,441,606
Additions
-
0
1,699,544
5,200
107,788
1,812,532
At 31 October 2024
66,796
6,420,367
661,080
1,105,895
8,254,138
Depreciation and impairment
At 1 November 2023
66,796
3,078,693
638,443
690,230
4,474,162
Depreciation charged in the year
-
0
432,586
7,679
127,066
567,331
At 31 October 2024
66,796
3,511,279
646,122
817,296
5,041,493
Carrying amount
At 31 October 2024
-
0
2,909,088
14,958
288,599
3,212,645
At 31 October 2023
-
0
1,642,130
17,437
307,877
1,967,444
JOHN FREDERICKS PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
12
Tangible fixed assets
(Continued)
- 21 -

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
£
£
Plant and equipment
2,325,629
1,105,322
Motor vehicles
281,780
287,144
2,607,409
1,392,466
13
Stocks
2024
2023
£
£
Raw materials and consumables
986,130
947,578
Work in progress
107,297
77,232
Finished goods and goods for resale
195,128
164,750
1,288,555
1,189,560
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,620,401
2,256,448
Amounts owed by group undertakings
-
0
129,814
Prepayments and accrued income
465,310
232,618
3,085,711
2,618,880
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
17
601,657
340,811
Trade creditors
1,987,887
1,720,639
Amounts owed to group undertakings
170,186
-
0
Corporation tax
145,552
293,757
Other taxation and social security
567,124
580,486
Accruals and deferred income
462,450
361,049
3,934,856
3,296,742
JOHN FREDERICKS PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
17
1,503,365
769,833
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
755,806
418,192
In two to five years
1,680,983
819,348
2,436,789
1,237,540
Less: future finance charges
(331,767)
(126,896)
2,105,022
1,110,644

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. 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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Obligations under finance leases are secured on the underlying assets.

18
Provisions for liabilities
2024
2023
£
£
Warranty provision
42,785
42,785
Movements on provisions:
Warranty provision
£
At 1 November 2023 and 31 October 2024
42,785

The warranty provision relates to the potential cost to the Company under a 10 year warranty on Company products. The provision is based on expected costs to be incurred over the next 10 years based on previous warranty claims.

JOHN FREDERICKS PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
19
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
792,911
459,044
Short term timing differences
(5,705)
(5,723)
787,206
453,321
2024
Movements in the year:
£
Liability at 1 November 2023
453,321
Charge to profit or loss
333,885
Liability at 31 October 2024
787,206

No significant reversal of deferred tax liabilities is expected within the next 12 months.

Other deferred tax movements are in relation to liabilities recognised on acquisition of John Fredericks Plastics Ltd.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
120,116
101,181

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.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share capital of £1 each
10,000
10,000
10,000
10,000
JOHN FREDERICKS PLASTICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
22
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
268,648
243,140
Between two and five years
578,393
711,475
847,041
954,615
23
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
352,350
1,000,000
24
Ultimate controlling party

The company's immediate parent company is John Fredericks Plastics Group Limited. The company's ultimate parent company is John Fredericks Plastics Group Limited and is the smallest and largest group for which consolidated accounts including John Fredericks Plastics Limited are prepared. The registered office of both Companies is Lindley Moor Road, Huddersfield, HD3 3RW. The consolidated accounts for John Fredericks Plastics Group Limited are available from Companies House.

 

The directors consider the ultimate controlling party to be M Dicconson, a director and the majority shareholder in John Fredericks Plastics Group Limited.

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