Registered number:
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
COMPANY INFORMATION
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JAMM CO 2019 LTD
CONTENTS
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JAMM CO 2019 LTD
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
The directors present the strategic report for the year ended 30 April 2024.
The group had a satisfactory year of trading, achieving revenue of £43m (2023: £47.1m) and reporting an EBITDA of £182,489 in the trading entity (2023: £(574,133)).
This performance occurred amid an overall reduction in sector revenue, as macroeconomic factors continued to affect consumers' disposable income, leading to decreased discretionary spending across many retail sectors. Following the strategic decision to close two low-contribution stores in the second half of the year. On a like-for-like basis, revenue decreased by 6.4% compared to the previous year. The group is committed to maintaining its physical retail locations and continues to invest in optimising its presence where suitable opportunities arise. Management believes that experiential multichannel retail will continue to resonate strongly with consumers in the sector. Consequently, the company will further utilise its retail estate as experience centres that integrate services and experiences with core retail offerings and high-quality eCommerce. As of April 30, 2024, the business operates 12 physical stores alongside its eCommerce platform www.pmtonline.co.uk, providing a comprehensive multichannel experience for its customers. To mitigate various market-driven pressures, management improved controls over pricing and gross margin. To further protect margins, the group adopted a strategy emphasising a higher proportion of own-brand ranges and pre-owned products, while also rebalancing the mix of branded products to enhance the depth of offerings in categories with higher margin potential. As a result of these measures, the group's gross profit margin increased to 24.64%, compared to 23.01% in the prior period. Despite sustained upward pressure on wages and energy costs, administration costs were reduced by £1m (8.6%) year-on-year due to a comprehensive efficiency review that addressed online marketing expenses, delivery and retail finance costs, and headcount. Cash balances at year-end amounted to £1.5m, with the business exercising strong controls over working capital and investments in inventory to maximise sales from available resources. During the period, £6.7m of Series A secured fixed-rate loan notes were converted into £5.7m A2 Preference Shares at £1.00 each and £1.1m B2 Preference Shares at £1.00 each. Both the A2 and B2 Preference Shares are non-voting and do not have fixed dividends or a redemption date. As a result of this transaction, the company's balance sheet has significantly strengthened, with net assets increasing by £6.2m Due to the company's change of auditors and the introduction of a new CFO in 2024, a prior-year adjustment has been identified. This adjustment is not related to current year trading. The Directors believe it originates from a historical issue involving inaccuracies in the completion accounts that were prepared during the management buyout in 2019. Throughout the year, the company benefited from long-standing and trusted partnerships with its key suppliers, who recognise the strength and quality of the multichannel platform the company provides to showcase their products. Despite the challenges facing the sector and the wider UK economy, the directors remain optimistic about the future. This confidence is bolstered by its strong relationships with suppliers, the loyalty of its customer base, and the dedication and quality of its workforce.
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JAMM CO 2019 LTD
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
Business and operational risk
The ongoing profitability and growth of the group's business is dependent on sourcing products demanded by its customers and attracting customers through an engaging retail proposition, both in-store and online. The group is dependent on continued supply of products, a large proportion of which are manufactured overseas. The group seeks to mitigate the risk of interruptions to supply by maintaining relationships with a wide range of manufacturers. In the year ended 30 April 2024, the group acquired inventory from over 100 suppliers. As a substantial bricks & mortar retailer, the group is vulnerable to some or all of its stores having to close to the Public, in events such as a global pandemic. While no store closures were in place during the financial year, the group seeks to mitigate this risk by increasing the volume of business conducted via its online channel and reallocating resources within the group to support higher online transaction volumes. As with any business who has a reliance on technical infrastructure, the group is at risk of business interruption to its online operations, such as by way of a cyber attack. The group seeks to mitigate this risk by continually investing in its web site, supporting systems and infrastructure to provide a degree of failover protection. The group is dependent on its staff to provide high levels of customer satisfaction. The group invests in training for its staff, appropriate incentivisation structures and continually monitors customer satisfaction. Cash flow and liquidity risk The group aims to mitigate liquidity risk through proactive management of working capital and financial forecasting. The group also manages liquidity risk through seeking to maintain adequate cash balances. At the end of the financial year, the group had cash balances of £1.5 million. Going concern The directors have prepared forecasts which show that the group is able to continue as a going concern for at least 12 months from the date of signing these accounts.
It is considered that the key financial performance indicators are those that communicate the financial performance, as shown below:
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JAMM CO 2019 LTD
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
This report was approved by the board on 27 February 2025 and signed on its behalf.
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JAMM CO 2019 LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
The directors present their report and the financial statements for the year ended 30 April 2024.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £1,520,167 (2023 - loss £2,354,045).
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who served during the year were:
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JAMM CO 2019 LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
The directors continue to monitor the macroeconomic situation via regular detailed sensitivity analysis and scenario modelling. Notwithstanding the challenges presented, the directors intend to continue to develop the business to ensure that it is well placed to benefit from a return to more normal trading conditions.
There have been no significant events affecting the Group since the year end.
The auditors, Langtons Professional Services Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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JAMM CO 2019 LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JAMM CO 2019 LTD
We have audited the financial statements of Jamm Co 2019 Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 April 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of 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).
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 or the 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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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JAMM CO 2019 LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JAMM CO 2019 LTD (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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JAMM CO 2019 LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JAMM CO 2019 LTD (CONTINUED)
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 Auditors' 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 Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
The objectives of our audit, in respect to fraud, are: • to identify and assess the risks of material misstatement of the financial statements due to fraud; • to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and • to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. Our approach was as follows: • We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006), the relevant tax compliance regulations in the UK and the EU General Data Protection Regulation (GDPR). • We understood how the Company is complying with those frameworks by making enquiries of management. Through consideration of the results of our audit procedures we were able to either corroborate or provide contrary evidence which was then followed up. • Based on our understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved: enquiries of management; and journal entry testing, with a focus on manual consolidation journals and journals indicating large or unusual transactions based on our understanding of the business. • We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was susceptibility to fraud. We also considered performance targets and their propensity to influence efforts made by management to manage revenue and earnings. Where the risk was considered to be higher, including areas impacting key performance indicators or management remuneration, we performed audit procedures to address each identified fraud risk or other risk of material misstatement. These procedures included those on revenue recognition detailed above, the assessment of items identified by management as non-recurring and testing manual journals and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.
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JAMM CO 2019 LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JAMM CO 2019 LTD (CONTINUED)
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
The Plaza
100 Old Hall Street
L3 9QJ
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JAMM CO 2019 LTD
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
REGISTERED NUMBER: 12177524
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2024
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JAMM CO 2019 LTD
REGISTERED NUMBER: 12177524
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 APRIL 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 February 2025.
The notes on pages 20 to 47 form part of these financial statements.
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JAMM CO 2019 LTD
REGISTERED NUMBER: 12177524
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2024
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JAMM CO 2019 LTD
REGISTERED NUMBER: 12177524
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 APRIL 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 20 to 47 form part of these financial statements.
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JAMM CO 2019 LTD
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Jamm Co 2019 Ltd (“the company”) is a private company limited by shares and is registered and incorporated in England and Wales. The registered office is Venture Point West, 70-72 Evans Road, Liverpool, England, L24 9PB.
The group consists of Jamm Co 2019 Ltd and all of its subsidiaries. The company's and the group's principal activities and nature of its operations are disclosed in the directors' report.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
The financial statements have been prepared on the going concern basis which assumes that the group and company will be able to continue to trade for a period of at least 12 months from the date of signing these financial statements.
The trading environment in which the group operates has been challenging as a result of the impact of Brexit on the supply chain, the war in Ukraine and rising UK inflation levels. The rising cost of living and reduction in consumer confidence has led to increased competitive pressures in the sector. The directors have prepared forecasts covering a variety of trading scenarios, all of which show that the group will be able to continue as a going concern. As set out in the Strategic Report, the group’s trading and financial performance has improved year on year, driven by improved margin percentages and control of variable and fixed overheads. This positive trend was as a result of strategic initiatives, such as growing higher-margin own brand and pre-owned sales, and more tactical efficiency responses to the challenging economic climate in the period. The group statement of financial position shows consolidated net assets as at 30 April 2024 of £334,263 (2023 - £5,919,464 net liabilities). The consolidated net liabilities as at 30 April 2023 included £9.5m of shareholder loan notes and accrued interest thereon. No interest payments have been made on the shareholder loan notes. As set out in further detail in the Strategic Report, during the period, £6.7m of shareholder loan notes were converted to A2 and B2 Preference Shares and a further £1.045m of funding was provided as a result of a further issue of A1 and B1 Preference Shares. As a consequence of the factors outlined above, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the 12 month period from the date of signing these financial statements and therefore have adopted the going concern basis of accounting in preparing the financial statements.
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Other income relates social media online income, insurance claim proceeds and government grants. It is recognised when due, and accrued for as appropriate. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method and reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Statement of financial position when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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. In the directors opinion there are no material judgements which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities. Key sources of estimation uncertainty In the directors opinion the estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:- Dilapidations provision The group has a present obligation to make good leased properties it occupies at the end of each respective lease period. Therefore, a dilapidations provision is required based upon the expected discounted cost to make good the properties. The directors have utilised industry dilapidations information and applied an appropriate amount per square foot for each lease property adjusted for the location and condition of each property (see note 25). Other provisions Estimation is required in assessing the level of provisions required against assets, including slow-moving and potentially obsolete inventory and for liabilities including warranties on its own-brand products as there is a present obligation to make good, by repair or replacement. The directors use information available at the balance sheet date to determine the level of provisions required and consider whether further information received after the balance sheet date impacts these provisions (see note 25). Useful economic life of intangible assets The group reviews the carrying value of its intangible assets for indicators of impairment at each period end, in accordance with FRS 102. If any indicators of impairment exist, the carrying value of the asset is subject to further testing to determine whether its carrying value exceeds its recoverable amount. The directors consider there to be no indicators of impairment in relation to the carrying value of the intangible assets of the group at the year end. Stock A decrease has been made against the stock provision resulting in a credit in the statement of comprehensive income of £73,830 (2023 – gain of £417,147) during the year. The provision is computed on a line by line basis to reduce the value of stock held, where the volumes and ageing of the stockline dictate that a reduction in holding value is appropriate.
The whole of the turnover is attributable to principal activity of the group.
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
12.Taxation (continued)
Tax losses of £2,416,409 are carried forward and are available to reduce the tax arising from future trading profits. A deferred tax asset has not been recognised on these losses.
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Secured debts
Debenture The groups's banking facilities are covered by a debenture issued on 24 May 2008. Other loans are secured by way of fixed and floating charges on the assets of the group. Bonds, guarantees, indemnities The group's subsidiary, S & T Audio Limited, has provided, on behalf of the subsidiary, a guarantee of £140,000 (2023 - £140,000) in favour of a supplier to the subsidiary.
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
26.Share capital (continued)
During the year, the following Preference shares were issued:-
1,000,000 A1 Preference shares of £1 each for consideration of £1,000,000 45,000 B1 Preference shares of £1 each for consideration of £45,000. 5,568,750 A2 Preference shares of £1 each and 1,117,192 B2 Preference shares of £1 each in exchange for £6,685,942 of series A secured fixed rate loan notes Each A and B ordinary share carry the right to one vote at general meetings of the company. The A1, B1, A2 and B2 Preference shares are non-voting, have no fixed dividends and no fixed redemption date.
Share premium account
Capital redemption reserve
Profit and loss account
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
28.Share-based payments (continued)
During the period, the company recognised a fundamental error had arisen in relation to stock and trade creditor balances. The Directors believe it originates from a historical issue involving inaccuracies in the completion accounts that were prepared during the management buyout in 2019 impacting the valuation of various stock lines and unrecorded supplier liabilities. Given the age of the error, management have only been able to provide sufficient information to support an FY23 opening profit and loss reserves overstatement of £1,221,525 with the unsupported remainder of the error being taken to cost of sales increasing them by £389,041.
By correcting the issues outlined above, stock has reduced by £334,018, trade creditors have increased by £1,276,548, opening profit and loss reserves have reduced by £1,221,525 and cost of sales have increased by £389,041. Adjustments have been made to restate the prior year figures as outlined above. The effect of this is to change last years loss for the financial year from £1,965,004 to £2,354,045.
Guarantees totalling £140,000 have been given to a main supplier.
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund. Contributions totalling £25,213 (2023 - £24,933) were payable to the fund at the reporting date and are included in creditors.
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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JAMM CO 2019 LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
There is no ultimate controlling party.
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