Company Registration No. 09089893 (England and Wales)
JTH (OSWESTRY) HOLDINGS LIMITED
CONSOLIDATED ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
JTH (OSWESTRY) HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr J E Hughes
Mr P W Tench
Mr C I Jones
Secretary
Mrs C E Hughes
Company number
09089893
Registered office
The Courtyard
Maesbrook
Oswestry
Shropshire
United Kingdom
SY10 8QR
Auditor
Azets Audit Services
St Davids Court
Union Street
Wolverhampton
West Midlands
United Kingdom
WV1 3JE
JTH (OSWESTRY) HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Group profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 36
JTH (OSWESTRY) HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -

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

Fair review of the business

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

Product lines and developments

We are main dealers for Honda, Hyundai, Kia, KGM, Mitsubishi and Isuzu franchises. The group deals in both new and used motor vehicles, provides vehicle servicing, bodyshop repairs and associated services.

The business has been successful in adopting new franchises and continues to do so, specifically it has recently agreed terms with Mazda to provide a full sales and service offering.

Our fleet sales line has also continued to grow across all brands, resulting in an improved contribution.

Generally, we are continuing to invest in our showrooms to enhance our customer experience.

Principal risks and uncertainties

As for many businesses of our size and our industry in general, the business environment continues to be challenging. The car market in the UK is highly competitive, margins continue to be tight and, of course, subject to consumer spending patterns and consumers' overall level of disposable income. The directors believe that the key risks and uncertainties are that of the general economic and market conditions. With the change of government and uncertainty over inflation and high interest rates, the directors are keeping this under constant review.

JTH (OSWESTRY) HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
Performance

We consider that our key performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover, gross margin and return on capital employed.

During the year to 31 May 2024 vehicle sales turnover increased by 30.4%, showing a substantial increase compared to the last accounting period. The increase was driven by new vehicle sales, enhanced by the growth in fleet sales. Used vehicle sales showed a modest increase and remained steady.

Gross profit has gone from £4,867,998 (GM 5.0%) to £5,143,869 (GM 4.0%). This was expected with higher volumes of new vehicle sales, but on which margins are continuing to be tightened.

Trade operating profit has gone from £1,276,950 to £1,597,147. Despite pressure on trading margins overall operating profit has shown a good improvement.

The group's balance sheet continues to show an improving strong position.

Return on capital employed is calculated as profit before interest and tax, divided by capital employed, which constitutes total assets, less current liabilities, less cash, plus overdrafts and other short-term borrowings. The return on capital employed has reduced slightly to just over 14%, from prior year averages. This was anticipated due to tighter margins on the higher volumes of new car and fleet sales.

Future strategy

The group continues to be busy strategically in terms of looking to the future and considering how to best operate. The new Mazda franchise and fleet sales are particular areas where the group expects future growth.

The sales growth is combined with internal investment in our dealer management system, which we expect to have huge long term benefits for all stakeholders.

We are aware that plans for the future development of the business may be subject to unforeseen future events outside our control and that the economic conditions will continue to provide a challenging environment in which to operate, but we are confident that with effective forward planning and constant review of performance we will be able to meet these challenges and prosper.

JTH (OSWESTRY) HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
Promoting the success of the company

SECTION 172(1) STATEMENT

Section 172 of the Companies Act 2006 requires a director of a company to act in the way they consider, in good faith and that would most likely promote the success of the company for the benefit of its members and stakeholders.

In doing this, Section 172 requires a director to have regard, amongst other matters, to the:

- likely consequences of any decisions in the long-term;

- interests of the company's employees;

- need to foster the company's business relationships with suppliers, customers and others;

- impact of the company's operations on the community and environment;

- maintenance of its reputation for high standards of business conduct; and

- the need to act fairly as between the different stakeholders of the company. In discharging its s172 duties, JTH (Oswestry) Holdings Limited (the ‘Group’) has regard to the interests and views of its internal and external stakeholders.

By considering the Group's purpose, vision, and values, together with its strategic priorities, the directors aim to make sure its decisions are consistent and equitable. The Group has established policies and procedures that reflect its commitment to responsible business practices.

These policies are communicated clearly and consistently across the staff base. The Group seeks to foster a culture of open communication and transparency, encouraging feedback from all stakeholders. As is normal for large companies, the Group delegates authority for day-to-day management to its executives and engages management in setting, approving, and overseeing the execution of the business strategy and related policies.

The Group reviews the financial and operational performance of the business on a monthly basis with formal reporting and review, at both board and executive level, supplemented by daily, weekly and monthly reporting and assessment of various KPIs across all areas of the operations.

Engagement with customers and suppliers is at the heart of our policies and procedures. Continued dialogue and communication is key to maintaining customer satisfaction, and compliance with suppliers to meet our technical, contractual, and legal commitments.

Regular meetings are held throughout the year with directors, Group executives and other senior employees. Through these and other means the Group reviews a variety of important matters over the course of the financial year including risk and compliance, corporate governance, environmental, legal, pensions, and health and safety matters, as well as stakeholder-related diversity and inclusivity, corporate social responsibility, and other stakeholder related matters. This ensures the Group has an overview of engagement with stakeholders and complies with its s172 duty to promote the success of the Group.

On behalf of the board

Mr J E Hughes
Director
25 February 2025
JTH (OSWESTRY) HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 4 -

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

Principal activities

The principal activity of the group in the year under review were those of motor vehicle dealerships, garage proprietors, property investment development and property rental.

Results and dividends

The results for the year are set out on pages 8-9.

Ordinary dividends were paid amounting to £100,000 (2023: £258,600). 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:

Mr J E Hughes
Mr P W Tench
Mr C I Jones
Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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 auditor of the company 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 auditor of the company is aware of that information.

JTH (OSWESTRY) HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 5 -

Energy and Carbon Report

 

Compliance Overview

 

This report covers the JTH Group of companies for the financial year 1st June 2023 to 31st May 2024. The report details annual GHG emissions (Scope 1 & 2) from activities for which the group is directly responsible. Having considered the potential metrics within the business, we have concluded that Gross Internal Area (GIA square meters) is the most appropriate to achieve a benchmark which aligns with the carbon reduction policy and methodology that the JTH Group are currently working towards. The facilities owned by the JTH Group comprises of Vehicle sales buildings in Telford, Shrewsbury and Newtown. There is a small fleet of company vehicles. The key environmental risks identified include waste management, provision of utilities and fuel for the company vehicles. The management recognise their responsibility to monitor and control the impact of these risks.

Methodology and Estimates

The methodology used to calculate total energy consumption and carbon emissions has been through the extraction of consumption data from invoices and meter reads for the financial years stated. Where data was not available, estimates have been calculated using historical profiles and details kept in the client's evidence pack. Energy and fuel consumption has been converted to carbon (TCO2e) using 2023 Government published conversion factors (Greenhouse gas reporting: conversion factors 2023). It is assumed all Electric Vehicles (EV) are charged on the JTH Groups sites and thus emissions are included within the sites overall electricity consumption.

Energy Performance Benchmarking

This is the first year that the JTH Group have needed to comply with the requirements of SECR. Therefore previous year comparisons is not possible.

 

Energy Efficiency Action Plan

 

• We will continue with our plan to reduce emissions by converting our vehicle fleet to electric. We have significantly reduced our Petrol usage in the last 4 years.

• We continue to benefit from our solar array on our showroom in Shrewsbury, and are looking to fit this to other facilities where appropriate.

• We have deployed a number of energy saving initiatives including workshop heater interlocks to hold off the heaters when the doors are open and optimised off settings on our heating systems to turn them off before closing time, knowing the temperatures will hold until closing.

 

Statistics

 

 

 

2023-24 TCO2

2022-23 TCO2

Financial Year

01-06-23 to 31-05-24

 

 

Primary Intensity Metric

 

Floor Space 4,646 m2

255.3

N/A

CO2e Units

Tonnes

0.0550 TC02e/m2

N/A

On behalf of the board
Mr J E Hughes
Director
25 February 2025
JTH (OSWESTRY) HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 6 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

JTH (OSWESTRY) HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JTH (OSWESTRY) HOLDINGS LIMITED
- 7 -
Opinion

We have audited the financial statements of JTH (Oswestry) Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent 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 group's and parent 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:

JTH (OSWESTRY) HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JTH (OSWESTRY) HOLDINGS LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent 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.

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.

JTH (OSWESTRY) HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JTH (OSWESTRY) HOLDINGS LIMITED
- 9 -

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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Lee Meredith BFP ACA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
25 February 2025
Chartered Accountants
Statutory Auditor
St Davids Court
Union Street
Wolverhampton
West Midlands
United Kingdom
WV1 3JE
JTH (OSWESTRY) HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
127,766,833
97,986,284
Cost of sales
(122,622,964)
(93,118,286)
Gross profit
5,143,869
4,867,998
Administrative expenses
(3,646,163)
(3,617,454)
Other operating income
99,441
26,406
Operating profit
4
1,597,147
1,276,950
Interest receivable and similar income
7
5,691
4,409
Interest payable and similar expenses
8
(151,684)
(80,901)
Fair value gains and losses on investment properties
13
-
0
93,817
Profit before taxation
1,451,154
1,294,275
Tax on profit
9
(424,262)
(263,641)
Profit for the financial year
25
1,026,892
1,030,634
Profit for the financial year is all attributable to the owners of the parent company.

The notes on pages 17 to 36 form part of these financial statements.

JTH (OSWESTRY) HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 11 -
2024
2023
£
£
Profit for the year
1,026,892
1,030,634
Other comprehensive income
-
-
Total comprehensive income for the year
1,026,892
1,030,634
JTH (OSWESTRY) HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MAY 2024
31 May 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
(69,136)
(147,418)
Tangible assets
12
5,476,884
5,579,878
Investment property
13
2,321,076
2,502,553
7,728,824
7,935,013
Current assets
Stocks
16
9,020,038
6,385,091
Debtors
17
9,945,266
4,975,002
Cash at bank and in hand
714,304
2,077,494
19,679,608
13,437,587
Creditors: amounts falling due within one year
19
(14,357,324)
(8,868,644)
Net current assets
5,322,284
4,568,943
Total assets less current liabilities
13,051,108
12,503,956
Creditors: amounts falling due after more than one year
20
-
(456,096)
Provisions for liabilities
Deferred tax liability
24
508,538
432,182
(508,538)
(432,182)
Net assets
12,542,570
11,615,678
Capital and reserves
Called up share capital
23
122
122
Revaluation reserve
26
1,135,606
1,146,468
Other reserves
28
978,181
978,181
Distributable profit and loss reserves
25
10,428,661
9,490,907
Total equity
12,542,570
11,615,678

The notes on pages 17 to 36 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 25 February 2025 and are signed on its behalf by:
25 February 2025
Mr J E Hughes
Director
Company registration number 09089893 (England and Wales)
JTH (OSWESTRY) HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MAY 2024
31 May 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
122
122
Capital and reserves
Called up share capital
23
122
122

The notes on pages 17 to 36 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £100,000 (2023 - £258,600 profit).

The financial statements were approved by the board of directors and authorised for issue on 25 February 2025 and are signed on its behalf by:
25 February 2025
Mr J E Hughes
Director
Company registration number 09089893 (England and Wales)
JTH (OSWESTRY) HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
Share capital
Revaluation reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 June 2022
122
1,151,248
978,181
8,714,093
10,843,644
Year ended 31 May 2023:
Profit and total comprehensive income
-
-
-
1,030,634
1,030,634
Dividends
10
-
-
-
(258,600)
(258,600)
Transfers
-
(4,780)
-
4,780
-
Balance at 31 May 2023
122
1,146,468
978,181
9,490,907
11,615,678
Year ended 31 May 2024:
Profit and total comprehensive income
-
-
-
1,026,892
1,026,892
Dividends
10
-
-
-
(100,000)
(100,000)
Transfers
-
(10,862)
-
10,862
-
Balance at 31 May 2024
122
1,135,606
978,181
10,428,661
12,542,570

The notes on pages 17 to 36 form part of these financial statements.

JTH (OSWESTRY) HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2022
122
-
0
122
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
258,600
258,600
Dividends
10
-
(258,600)
(258,600)
Balance at 31 May 2023
122
-
0
122
Year ended 31 May 2024:
Profit and total comprehensive income
-
100,000
100,000
Dividends
10
-
(100,000)
(100,000)
Balance at 31 May 2024
122
-
0
122

The notes on pages 17 to 36 form part of these financial statements.

JTH (OSWESTRY) HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
33
633
2,141,767
Income taxes paid
(601,343)
(419,332)
Net cash (outflow)/inflow from operating activities
(600,710)
1,722,435
Investing activities
Purchase of tangible fixed assets
(221,126)
(293,905)
Proceeds from disposal of tangible fixed assets
67,200
46,511
Purchase of investment property
(98,523)
(1,336,762)
Proceeds from disposal of investment property
280,000
-
Repayment of loans
(5,016)
591
Interest received
5,691
4,408
Net cash generated from/(used in) investing activities
28,226
(1,579,157)
Financing activities
Repayment of bank loans
(539,022)
(82,926)
Interest paid
(151,684)
(80,901)
Dividends paid to equity shareholders
(100,000)
(258,600)
Net cash used in financing activities
(790,706)
(422,427)
Net decrease in cash and cash equivalents
(1,363,190)
(279,149)
Cash and cash equivalents at beginning of year
2,077,494
2,356,643
Cash and cash equivalents at end of year
714,304
2,077,494

The notes on pages 17 to 36 form part of these financial statements.

JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 17 -
1
Accounting policies
Company information

JTH (Oswestry) Holdings Limited (“the company”) is a private limited company incorporated in England and Wales. The registered office is The Court Yard, Maesbrook, Oswestry, Shropshire, SY10 8QR.

 

The group consists of JTH (Oswestry) Holdings Limited and all of its subsidiaries.

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The 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 for parent company information presented within the consolidated financial statements:

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 18 -

The consolidated group financial statements consist of the financial statements of the parent company JTH (Oswestry) Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 May 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At 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.

1.4
Turnover

Turnover represents net invoiced sales of goods, excluding value added tax.

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.

1.5
Intangible fixed assets - negative goodwill

Negative goodwill arose as a result of the acquisition of J T Hughes (Oswestry) Limited in 2014.

 

The negative goodwill relating to the current assets element was released to the group's profit and loss account in full in the 2015 financial year being the period that the benefit was received.

 

The negative goodwill relating to the fixed assets element is being released to the group's profit and loss account in line with each fixed asset category's depreciation policy.

 

1.6
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 provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property
2.5% on cost of buildings
Property improvements
10% on cost
Plant and vehicles
20% on cost

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 recognised in the profit and loss account.

JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 19 -
1.7
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

Property rented to a group entity is accounted for as tangible fixed assets.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 20 -

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.

1.10
Stocks

Stocks are stated at the lower of cost and net realisable value. Cost comprises the purchase price, net of any specific trade discounts, and any expenditure incurred in bringing the stocks to their present location and condition. Net realisable value represents the estimated selling price less costs to complete and sell.

 

Stocks are assessed for impairment at each balance sheet date and, where an item of stock is found to be impaired, its carrying amount is reduced to its net realisable value, with the provision for the impairment loss being recognised in the profit and loss account.

 

Vehicles held on consignment have been recognised on the balance sheet where, in substance, they are deemed to be assets of the group. The principal criterion applied is whether the vehicles are interest-bearing. The corresponding liabilities have been included in creditors.

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.

1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 21 -
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 group 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 group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction price unless. 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
Taxation

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

JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 22 -
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 group’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.

1.15
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.

1.16
Retirement benefits

J T Hughes (Oswestry) Limited operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. Contributions payable for the year are charged to the profit and loss account.

1.17
Leases

Operating leases where the company is the lessee

Rentals payable for assets held on operating leases are charged to the profit and loss account on a straight line basis over the term of the lease.

 

Operating leases where the company is the lessor

Assets held for use in operating leases are included in fixed assets and depreciated over their useful economic lives. Rental income is recognised on a straight line basis in the profit and loss account.

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.

1.18
Government grants

Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.

JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

Valuation of stock

 

A provision is made by management to reflect the depreciation of vehicles held in stock. The provision is calculated with reference to industry data.

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Sales
127,766,833
97,986,284
2024
2023
£
£
Turnover analysed by geographical market
UK
127,766,833
97,986,284
2024
2023
£
£
Other revenue
Insurance claims receivable
1,029
-
Grant released to the profit and loss account
-
5,290
Service charge receivable
891
-
Rental income arising from investment properties
97,521
21,116
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(5,290)
Depreciation of owned tangible fixed assets
256,920
600,733
Release of negative goodwill
(78,282)
(78,282)
Auditors' remuneration
46,500
38,000
Auditors' remuneration - non audit work
11,534
11,534
Operating lease charges
22,808
20,299
JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 24 -
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
215,265
211,934
Company pension contributions to defined contribution schemes
152,700
245,300
367,965
457,234
Remuneration disclosed above includes the following amounts paid to the highest paid director:
Remuneration for qualifying services
83,973
83,973
Company pension contributions to defined contribution schemes
46,350
87,650
6
Employees

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

2024
2023
Number
Number
Salesmen and clerical
61
54
Labour
42
42
103
96

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,355,998
2,918,320
Social security costs
344,545
301,259
Pension costs
377,697
456,641
4,078,240
3,676,220
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
5,691
4,409
JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 25 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
13,428
28,048
Stocking interest
138,256
52,853
Total finance costs
151,684
80,901
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
347,025
314,343
Adjustments in respect of prior periods
881
-
0
Total current tax
347,906
314,343
Deferred tax
Origination and reversal of timing differences
67,270
41,024
Other adjustments
9,086
(91,726)
Total deferred tax
76,356
(50,702)
Total tax charge
424,262
263,641

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
1,451,154
1,294,275
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.00%)
362,789
258,855
Tax effect of expenses that are not deductible in determining taxable profit
2,054
163,495
Tax effect of income not taxable in determining taxable profit
-
0
(109,829)
Adjustments in respect of prior years
881
-
0
Depreciation on assets not qualifying for tax allowances
25,299
-
0
Amortisation on assets not qualifying for tax allowances
(13,703)
-
0
Deferred tax adjustments in respect of prior years
67,731
-
0
Chargeable gains/(losses)
(20,789)
(211,907)
Fixed asset differences
-
0
(3,278)
Remeasurement of deferred tax for changes in tax rates
-
(54,215)
Movement in deferred tax not recognised
-
220,520
Taxation charge
424,262
263,641
JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 26 -
10
Dividends
2024
2023
£
£
Interim paid
100,000
258,600
£100,000 (2023: £258,600) of dividends were voted in relation to the Ordinary A shares held.
11
Intangible fixed assets
Group
Negative goodwill
£
Cost
At 1 June 2023 and 31 May 2024
(3,576,997)
Amortisation and impairment
At 1 June 2023
(3,429,579)
Amortisation charged for the year
(78,282)
At 31 May 2024
(3,507,861)
Carrying amount
At 31 May 2024
(69,136)
At 31 May 2023
(147,418)
The company had no intangible fixed assets at 31 May 2024 or 31 May 2023.

The goodwill acquired during the year to 31 May 2019 relates to the acquisition of the J T Hughes (Newtown) Partnership. This took place on 1 July 2018 and is not considered to have a finite useful life and will be amortised over a 5 year period from the year ending 31 May 2021.

 

JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 27 -
12
Tangible fixed assets
Group
Freehold property
Property improvements
Plant and vehicles
Total
£
£
£
£
Cost or valuation
At 1 June 2023
5,030,000
735,045
2,258,452
8,023,497
Additions
-
0
45,647
175,479
221,126
Disposals
-
0
(67,200)
-
0
(67,200)
At 31 May 2024
5,030,000
713,492
2,433,931
8,177,423
Depreciation
At 1 June 2023
508,161
144,536
1,790,922
2,443,619
Depreciation charged in the year
108,750
19,763
128,407
256,920
At 31 May 2024
616,911
164,299
1,919,329
2,700,539
Carrying amount
At 31 May 2024
4,413,089
549,193
514,602
5,476,884
At 31 May 2023
4,521,839
590,509
467,530
5,579,878

Included in freehold land and property is freehold land with a historical cost of £200,000 (2023: £200,000) which has not been depreciated.

Freehold land and property owned by J T Hughes (Oswestry) Limited with a carrying value of £743,268 were revalued in October 2019 by Chivers Commercial, independent surveyors not connected with the company on the basis of market value. The Directors consider that the value of this freehold land and property at 31 May 2024 is not significantly different to that at the date of the valuation.

 

The land and buildings that are owned by the subsidiary company, Courtyard Property (Shropshire) Limited are classified as investment properties for the purposes of the individual company's accounts to comply with the requirements of FRS 102. As some of the properties are used in the trade of the group, for the consolidated accounts, some of these assets have been reclassified as freehold properties to comply with the requirements of FRS 102.

 

On 20 September 2023 these reclassified freehold properties have been valued by Halls Holdings Limited, independent valuers, at £3,810,000 on the basis of open market value. Halls are not connected with the company.

 

The valuations are conformed to International Valuation Standards and are based on recent market transactions on arm's length terms for similar properties.

 

The Directors consider that the value of the freehold land and property at 31 May 2024 is appropriate.

The revaluation surplus is disclosed in note 28.

JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
12
Tangible fixed assets
(Continued)
- 28 -
If freehold land and properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2024
2023
£
£
Group
Cost
2,925,226
2,925,226
Accumulated depreciation
(292,295)
(257,607)
Carrying value
2,632,931
2,667,619
Company
The company had no tangible fixed assets at 31 May 2024 or 31 May 2023.
13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 June 2023
2,502,553
-
Additions
98,523
-
Disposals
(280,000)
-
At 31 May 2024
2,321,076
-

The land and buildings held by Courtyard Property (Shropshire) Limited are classified as investment properties for the purposes of the individual company's accounts to comply with the requirements of FRS 102. As some of the properties are used in the trade of the group, for the consolidated accounts, some of these assets have been reclassified as freehold properties to comply with the requirements of FRS 102.

 

During 2023 Courtyard Property (Shropshire) Limited and J T Hughes (Oswestry) Limited had investment properties valued (on differing dates) by Halls Holdings Limited and Welsh Property Services, independent valuers not connected with the companies on the basis of market value. Fair value adjustments have been made in the accounts to relfect these valuations

 

The valuations conform to International Valuation Standards and were based on recent market transactions on arm's length terms for similar properties.

 

Included in additions is a property acquired for £463,553, the value of which the directors believe has not materially changed since the acquisition date and therefore the property has not been revalued since the acquisition date.

 

JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 29 -
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
122
122

In the opinion of the directors, the aggregate value of the company's investment in subsidiary undertakings is not less than the amount included in the balance sheet.

15
Subsidiaries

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

Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shareholding
Direct
Indirect
Courtyard Property (Shropshire) Limited
England
Property development and rental company
Ordinary
100.00
J T Hughes (Oswestry) Limited
England
Garage proprietors
Ordinary & Ordinary A
100.00
The following subsidiary company is exempt from the requirements of the Companies Act 2006 relating to the audit of individual accounts by virtue of S479a.
Courtyard Property (Shropshire) Ltd - 090929258
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Parts and other stock
495,355
288,335
-
-
Vehicles
8,524,683
6,096,756
-
0
-
0
9,020,038
6,385,091
-
-

In addition at 31 May 2024 the group held £7,033,997 (2023: £2,020,884) of consignment stock which is not recorded on the balance sheet. The principle terms of the consignment agreements, which can generally be terminated by either side, are such that the group may return to the supplier or transfer to another dealership any of the stock without financial or commercial penalty, and the supplier can vary stock prices.

JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 30 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
9,550,458
4,712,510
-
0
-
0
Corporation tax recoverable
22,920
21,227
-
0
-
0
Other debtors
69,741
64,725
-
0
-
0
Prepayments and accrued income
302,147
176,540
-
0
-
0
9,945,266
4,975,002
-
-
18
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
9,620,199
4,777,235
-
-
Equity instruments measured at cost less impairment
-
-
122
122
Carrying amount of financial liabilities
Measured at amortised cost
13,358,824
8,501,227
-
-

Financial assets measured at amortised cost consists of cash at bank and in hand, trade debtors and corporation tax recoverable.

 

Equity instruments measured at cost less impairment consists of the parent company's investments in the subsidiary undertakings.

 

Financial liabilities measured at amortised cost consists of bank loans, trade creditors, directors' loan accounts, balances with related parties, other creditors, accruals and the refurbishment grant.

19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
21
-
0
82,926
-
0
-
0
Trade creditors
11,282,961
7,370,863
-
0
-
0
Corporation tax payable
62,599
314,343
-
0
-
0
Other taxation and social security
935,901
509,170
-
-
Other creditors
1,618,758
106,069
-
0
-
0
Accruals
457,105
485,273
-
0
-
0
14,357,324
8,868,644
-
0
-
0
JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 31 -
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Loans and overdrafts
21
-
0
456,096
-
0
-
0

The bank loans included in creditors falling due within one year and also after more than one year, relate to Courtyard Property (Shropshire) Limited, a subsidiary company.

21
Secured debts
The following secured debts are included within creditors:
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loan
-
0
539,022
-
0
-
0
Payable within one year
-
0
82,926
-
0
-
0
Payable after one year
-
0
456,096
-
0
-
0

Legal charges over the premises owned by the group at the Telford site.

A debenture comprising fixed and floating charges over the assets of J T Hughes (Oswestry) Limited.

A cross guarantee and debenture in connection with the subsidiaries J T Hughes (Oswestry) Limited and Courtyard Property (Shropshire) Limited (a fellow 100% subsidiary of JTH (Oswestry) Holdings Limited) containing a fixed and floating charge dated 22 August 2014.

A legal charge over 3 Battlefield Road, Shrewsbury dated 12 September 2014.

A legal charge over 5 Battlefield Road, Shrewsbury dated 13 February 2015.

A legal charge over additional land at Shrewsbury, 5 Battlefield Road dated 28 March 2018.

A legal charge over land on the west side of 1 Battlefield Road dated 5 July 2018.

The interest rate charged on the bank loan during the year was 6.5%.

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
377,697
456,641

J T Hughes (Oswestry) Limited 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.

JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 32 -
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
Ordinary A of £1 each
12
12
12
12
Ordinary B of 10p each
100
100
10
10
212
212
122
122
24
Deferred taxation

Deferred tax assets and liabilities are offset where the group or 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:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
191,207
184,810
Retirement benefit obligations
(26,271)
-
Fair value gains on investment properties
343,602
304,292
General provisions
-
(56,920)
508,538
432,182
Company
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 June 2023
432,182
-
Charge to profit or loss
76,356
-
Liability at 31 May 2024
508,538
-
JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 33 -
25
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
9,490,907
8,714,093
-
-
Profit for the year
1,026,892
1,030,634
100,000
258,600
Dividends
(100,000)
(258,600)
(100,000)
(258,600)
Transfer from revaluation reserve
10,862
4,780
-
-
At the end of the year
10,428,661
9,490,907
-
0
-

See note 28 for transfer from revaluation reserve.

26
Revaluation reserve
Group
Company
2024
2023
2024
2023
as restated
as restated
£
£
£
£
At the beginning of the year
1,146,468
339,312
-
-
Prior year adjustment
-
811,936
-
-
At the beginning of the year
1,146,468
1,151,248
-
0
-
0
Transfer to retained earnings
(10,862)
(4,780)
-
-
At the end of the year
1,135,606
1,146,468
-
0
-
27
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
80,000
36,000
-
-
JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 34 -
28
Other reserves
Other reserves
Total
Group
£
£
At 1 June 2022
978,181
978,181
At 31 May 2023
978,181
978,181
At 31 May 2024
978,181
978,181

The other reserve balance relates to the profit gained on the sale of the Oswestry site in the 2016 financial year and is not available for distribution to holders of ordinary A shares.

Company
The company has no other reserves.
29
Operating lease commitments
Lessee

 

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
308,000
279,000
-
-
Between two and five years
1,009,397
1,000,000
-
-
In over five years
548,696
41,667
-
-
1,866,093
1,320,667
-
-
30
Controlling party

The ultimate controlling party is J E Hughes Esq by virtue of his majority shareholding.

31
Events after the reporting date

On 31 July 2024 JTH (Oswestry) Holdings Limited bought back 6 Ordinary A shares for a total consideration of £413,530 from a retiring director.

JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 35 -
32
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, is as follows.

2024
2023
£
£
Aggregate compensation
461,003
554,673
Transactions with related parties
During the year J T Hughes (Oswestry) Limited paid rent of £79,000 (2023: £79,000) to the pension scheme in relation to these premises.
During the year rent of £58,000 (2023: £58,000) was paid to Sian Price (A family member of Director J E Hughes) in respect of property occupied by J T Hughes (Oswestry) Limited in Newtown.
J T Hughes (Oswestry) Limited provided a loan to a director on which interest is being charged annually at 2.5% above the Bank of England base rate.
During the year the investment property at Whitehall Street, Shrewsbury was sold to a related party on 14 July 2023 for £280,000.

No guarantees have been given or received.

JTH (OSWESTRY) HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 36 -
33
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,026,892
1,030,634
Adjustments for:
Taxation charged
424,262
263,641
Finance costs
151,684
80,901
Investment income
(5,691)
(4,409)
Fair value gain on investment properties
-
0
(93,817)
Amortisation and impairment of intangible assets
(78,282)
(78,282)
Depreciation and impairment of tangible fixed assets
256,920
600,733
Rebfurbishment grant released
-
(2,135)
Movements in working capital:
Increase in stocks
(2,634,947)
(630,926)
Increase in debtors
(4,963,555)
(734,024)
Increase in creditors
5,823,350
1,801,586
Decrease in deferred income
-
(92,135)
Cash generated from operations
633
2,141,767
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