The directors present the strategic report for the year ended 31 May 2024.
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.
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.
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.
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
The directors present their annual report and financial statements for the year ended 31 May 2024.
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.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 |
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).
Basis for 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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.
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:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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.
The notes on pages 17 to 36 form part of these financial statements.
The notes on pages 17 to 36 form part of these financial statements.
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 notes on pages 17 to 36 form part of these financial statements.
The notes on pages 17 to 36 form part of these financial statements.
The notes on pages 17 to 36 form part of these financial statements.
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.
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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
Section 26 ‘Share based Payment’: Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
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.
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.
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.
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.
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.
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.
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.
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, 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.
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.
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.
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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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.
The tax expense represents the sum of the tax currently payable and deferred 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 taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
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.
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.
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.
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.
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.
An analysis of the group's turnover is as follows:
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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:
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.
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.
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.
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.
Details of the company's subsidiaries at 31 May 2024 are as follows:
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.
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.
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.
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%.
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.
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:
See note 28 for transfer from revaluation reserve.
Amounts contracted for but not provided in the financial statements:
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.
At the reporting date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
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.
The remuneration of key management personnel, is as follows.
No guarantees have been given or received.