Company registration number 04234315 (England and Wales)
JRP DISTRIBUTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
JRP DISTRIBUTION LIMITED
COMPANY INFORMATION
Directors
Mrs G J Page
Mr J R Page
Mr O T Page
Ms K Page
Secretary
Mr J R Page
Company number
04234315
Registered office
Unit 10A Chichester Business Park
City Fields Way
Tangmere
West Sussex
PO20 2FT
Auditor
Sumer Audit
Amelia House
Crescent Road
Worthing
West Sussex
BN11 1RL
JRP DISTRIBUTION LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
JRP DISTRIBUTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Strategic Overview
JRP Distribution Ltd is a family-owned distribution business based in Chichester, West Sussex. The business distributes over 4,000 market leading automotive accessories to the automotive aftermarket, DIY, and general retail sectors.
The financial focus for the year to 30 June 2024 was to achieve a solid sales performance and continue the focus on profitability and cash. Beyond the financials, the broader strategic focus continues to be investing in our product ranges, our people and our operations, focused on delivering a competitive and broad range of products for our customers.
We believe we have achieved our aims for this financial year and have built a solid and robust financial and business foundation for the year ahead.
There continues to be challenges, particularly from both UK and global economic and political instability putting continuous pressures on costs, but with our strong foundations we will mitigate and navigate these as best we can. That same solid foundation allows us to focus again on driving sales growth through launching market leading new product ranges, enhancing our existing ranges, and increasing our customer reach, with the aim of achieving double digit growth. In summary a challenging but exciting year ahead.
Business Review
Revenue was maintained in the year to 30 June 2024, achieving slight growth of 3% to £13.1m versus prior year.
Gross margin percentage was in line with prior years, with a small increase to 35.6% (prior year 33.3%) with container prices being relatively low and stable, but this was offset by supplier price increases and forex fluctuations.
Operating profit achieved was £1.4m, down on prior year at £1.6m. This reflects the continued increase in our UK cost base, which is unfortunately set to continue with increases in employee costs, property costs (rent/rates), taxation and supply costs during 2025. We will look to efficiencies to try and mitigate rising costs, but it is challenging.
Net assets increased by £1.0m reflecting our investment in stock as well as a decrease in bank borrowing. Our net debt position improved by £0.6m in the year.
Principal Risks and Uncertainties
The directors have identified the following principal risks and uncertainties:
Supply chain disruptions: Having processes in place to mitigate against stock outages (stock lead time, hold and buffer considerations) is constantly weighed against the capital cost of holding over-stocks – the optimum is hard to achieve in an unstable global environment. The year to 30 June 2024 was more stable than recent prior years, but we are aware this can change quickly.
UK cost inflation: This was at an unprecedented level in 2023 and whilst it has subsided in 2024, it is still impacting all UK purchases and services. We look to minimise the impact of this on our pricing to customers through our continued focus on operational efficiencies.
Geo-political risk: Wavering confidence in the UK political and economic environment is a risk affecting consumer demand, market confidence and business investment. It is unclear currently how high a risk this is as we go into 2025. We have also seen the impact of recent electoral changes in the US for example on the volatility of the $/£ exchange rate environment, but the medium-term impact on the UK and rates remains unclear. Wars globally remain a threat and risk with far reaching implications for both businesses and people.
Foreign exchange risk: We purchase the majority of goods in dollars, but sell principally in sterling, and are therefore exposed to fluctuations in the $/£ exchange rate. We monitor market information and use strategies to mitigate risk including hedging with currency forwards
JRP DISTRIBUTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Key Performance Indicators
The company monitors its financial performance using a number of measures. These include core business sales growth, gross margin and operating profit. In addition, working capital and cash headroom is a key focus as we look to minimise our debt whilst maintaining working capital flexibility. These key financial measures are commented on above.
Mr O T Page
Director
13 February 2025
JRP DISTRIBUTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company continues to be the sale of automotive accessories.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £27,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mrs G J Page
Mr J R Page
Mr O T Page
Ms K Page
Financial instruments
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Foreign currency risk
The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Future developments
The directors believe that there are currently no major future developments requiring disclosure.
Auditor
The auditor, Sumer Audit, 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 company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
JRP DISTRIBUTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
On behalf of the board
Mr O T Page
Director
13 February 2025
JRP DISTRIBUTION LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
JRP DISTRIBUTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JRP DISTRIBUTION LIMITED
- 6 -
Opinion
We have audited the financial statements of JRP Distribution Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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:
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.
JRP DISTRIBUTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JRP DISTRIBUTION LIMITED
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
Obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements and operations;
Obtaining an understanding of the company’s policies and procedures on fraud risks, including knowledge of any actual, suspected or alleged fraud; and
Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud through our knowledge and understanding of the company and our sector-specific experience.
As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud. We are also required to perform specific procedures to respond to the risk of management override. As a result of performing the above, we identified the following areas as those most likely to have an impact on the financial statements: compliance with the UK Companies Act.
JRP DISTRIBUTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JRP DISTRIBUTION LIMITED
- 8 -
In addition to the above, our procedures to respond to risks identified included the following:
Making enquiries of management, about any known or suspected instances of non-compliance with laws and regulations and fraud;
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to stock provisions; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Due to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
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.
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.
Alex Chidwick FCCA (Senior Statutory Auditor)
For and on behalf of Sumer Audit
14 February 2025
Chartered Accountants
Statutory Auditor
Worthing
Sumer Audit is the trading name of Sumer Auditco Limited
JRP DISTRIBUTION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
Year
Year
ended
ended
30 June
30 June
2024
2023
Notes
£
£
Turnover
3
13,079,209
12,719,474
Cost of sales
(8,420,945)
(8,484,022)
Gross profit
4,658,264
4,235,452
Administrative expenses
(3,269,705)
(2,602,450)
Other operating income
9,030
13,574
Operating profit
5
1,397,589
1,646,576
Interest receivable and similar income
1,721
612
Interest payable and similar expenses
(90,162)
(126,448)
Fair value gains and losses on foreign exchange contracts
4
1,314,283
Profit before taxation
1,309,148
2,835,023
Tax on profit
8
(330,476)
(308,396)
Profit for the financial year
978,672
2,526,627
JRP DISTRIBUTION LIMITED
BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
969,442
1,073,913
Current assets
Stocks
12
7,543,005
6,036,890
Debtors
13
2,408,560
2,235,975
Cash at bank and in hand
56,216
44,988
10,007,781
8,317,853
Creditors: amounts falling due within one year
14
(4,724,656)
(3,549,719)
Net current assets
5,283,125
4,768,134
Total assets less current liabilities
6,252,567
5,842,047
Creditors: amounts falling due after more than one year
15
(167,241)
(686,093)
Provisions for liabilities
Deferred tax liability
18
133,600
155,900
(133,600)
(155,900)
Net assets
5,951,726
5,000,054
Capital and reserves
Called up share capital
20
58,480
58,480
Share premium account
291,520
291,520
Profit and loss reserves
5,601,726
4,650,054
Total equity
5,951,726
5,000,054
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 13 February 2025 and are signed on its behalf by:
Ms K Page
Director
Company registration number 04234315 (England and Wales)
JRP DISTRIBUTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
58,480
291,520
2,248,427
2,598,427
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
2,526,627
2,526,627
Dividends
9
-
-
(125,000)
(125,000)
Balance at 30 June 2023
58,480
291,520
4,650,054
5,000,054
Period ended 30 June 2024:
Profit and total comprehensive income
-
-
978,672
978,672
Dividends
9
-
-
(27,000)
(27,000)
Balance at 30 June 2024
58,480
291,520
5,601,726
5,951,726
JRP DISTRIBUTION LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,275,745
901,921
Interest paid
(90,162)
(126,448)
Income taxes paid
(502,396)
(129,000)
Net cash inflow from operating activities
683,187
646,473
Investing activities
Purchase of tangible fixed assets
(14,136)
(3,928)
Interest received
1,721
612
Net cash used in investing activities
(12,415)
(3,316)
Financing activities
Repayment of borrowings
(46,500)
Repayment of bank loans
(467,242)
(317,241)
Payment of finance leases obligations
(165,302)
(157,542)
Dividends paid
(27,000)
(125,000)
Net cash used in financing activities
(659,544)
(646,283)
Net increase/(decrease) in cash and cash equivalents
11,228
(3,126)
Cash and cash equivalents at beginning of year
44,988
48,114
Cash and cash equivalents at end of year
56,216
44,988
JRP DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
1
Accounting policies
Company information
JRP Distribution Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 10A Chichester Business Park, City Fields Way, Tangmere, West Sussex, PO20 2FT.
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 £1.
The financial statements have been prepared on the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
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. The directors have considered relevant information, including the company’s principal risks and uncertainties, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessmenttrue. Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings leasehold
Over the term of the lease
Computer equipment
25% diminishing balance per annum
Fixtures, fittings & equipment
25% diminishing balance per annum
Plant and machinery and leasehold buildings
25% diminishing balance per annum
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss.
JRP DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.6
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities including trade and other accounts receivable and payable, loans from banks and loans from related parties.
Debt instruments including loans and other accounts receivable and payable are initially measured at transaction price and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.
The company also enters into other financial instruments in the use of forward foreign currency contracts in order to reduce exposure to foreign exchange rates.
Derivative financial instruments are initially measured at fair value on the date on which a derivative contract is entered into and are subsequently measured at fair value through profit or loss. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative.
The fair value of the forward currency contracts is calculated by reference to current forward exchange contracts with similar maturity profiles and carried out by a third party.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity. Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
JRP DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the 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.
Key sources of estimation uncertainty
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.
Stock provision
The directors have made key assumptions in determining the appropriate impairment provision against stock items held at the end of the reporting period. This provision takes into consideration a number of factors including slow moving items. At the financial reporting date, the provision made against stock was £482,708 (2023 - £832,506).
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
13,079,209
12,719,474
JRP DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
3
Turnover and other revenue
(Continued)
- 16 -
2024
2023
£
£
Turnover analysed by geographical market
UK
12,756,426
12,480,645
Europe
314,034
234,309
Rest of World
8,749
4,520
13,079,209
12,719,474
4
Exceptional item
2024
2023
£
£
Fair value (gains) and losses on foreign exchange contracts
-
(1,314,283)
In the year ended 30 June 2022, the company had entered into forward foreign exchange contracts for their trade and for a connected company, which is connected through having a director and shareholder in common, to mitigate exchange rate risk for foreign currency payments. In 2023 there was a reversal of a charge included in the 30 June 2022 accounts.
At 30 June 2024, the company was committed to buy £Nil on behalf of a connected company. At the year end all contracts were settled or matured, with all liabilities settled by the connected company.
5
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange losses/(gains)
21,078
(43,456)
Fees payable to the company's auditor for the audit of the company's financial statements
20,700
20,500
Depreciation of owned tangible fixed assets
50,113
57,236
Depreciation of tangible fixed assets held under finance leases
64,582
69,814
Loss on disposal of tangible fixed assets
3,912
-
Amortisation of intangible assets
-
4,000
Operating lease charges
383,036
381,984
JRP DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
4
4
Office staff
6
8
Warehouse staff
23
24
Total
33
36
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,356,531
922,197
Social security costs
126,616
86,363
Pension costs
85,986
32,038
1,569,133
1,040,598
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
459,799
140,733
Company pension contributions to defined contribution schemes
71,056
17,238
530,855
157,971
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
183,499
n/a
Company pension contributions to defined contribution schemes
46,038
-
No figure has been included for the highest paid director in the comprative period as total directors' remuneration was under £200,000.
The directors are considered to be the only key management personnel of the company.
JRP DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
352,776
334,396
Deferred tax
Origination and reversal of timing differences
(22,300)
(26,000)
Total tax charge
330,476
308,396
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
1,309,148
2,835,023
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
327,287
581,180
Tax effect of expenses that are not deductible in determining taxable profit
634
(269,243)
Permanent capital allowances in excess of depreciation
(152)
Depreciation on assets not qualifying for tax allowances
778
Other movements in deferred tax
(2,790)
Rounding
1,777
(599)
Taxation charge for the period
330,476
308,396
9
Dividends
2024
2023
£
£
Final paid
27,000
125,000
JRP DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
10
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
240,000
Amortisation and impairment
At 1 July 2023 and 30 June 2024
240,000
Carrying amount
At 30 June 2024
At 30 June 2023
11
Tangible fixed assets
Land and buildings leasehold
Computer equipment
Fixtures, fittings & equipment
Plant and machinery and leasehold buildings
Total
£
£
£
£
£
Cost
At 1 July 2023
1,218,277
72,372
56,307
276,335
1,623,291
Additions
10,234
929
2,973
14,136
Disposals
(8,086)
(651)
(5,177)
(13,914)
At 30 June 2024
1,218,277
74,520
56,585
274,131
1,623,513
Depreciation and impairment
At 1 July 2023
273,017
56,236
46,692
173,433
549,378
Depreciation charged in the year
81,225
4,954
2,513
26,003
114,695
Eliminated in respect of disposals
(6,725)
(406)
(2,871)
(10,002)
At 30 June 2024
354,242
54,465
48,799
196,565
654,071
Carrying amount
At 30 June 2024
864,035
20,055
7,786
77,566
969,442
At 30 June 2023
945,260
16,136
9,615
102,902
1,073,913
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and machinery and leasehold buildings
579,657
623,013
JRP DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
6,200,240
5,220,362
Goods in transit
1,342,765
816,528
7,543,005
6,036,890
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,214,029
1,964,043
Other debtors
84,813
136,678
Prepayments and accrued income
109,718
135,254
2,408,560
2,235,975
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
317,241
317,241
Obligations under finance leases
17
51,600
165,292
Trade creditors
2,836,111
1,811,244
Corporation tax
184,776
334,396
Other taxation and social security
328,766
298,620
Other creditors
440,931
569,757
Accruals and deferred income
565,231
53,169
4,724,656
3,549,719
Other creditors includes a balance for invoice financing which is secured on the trade debtors.
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
167,241
634,483
Obligations under finance leases
17
51,610
167,241
686,093
JRP DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
16
Loans and overdrafts
2024
2023
£
£
Bank loans
484,482
951,724
Payable within one year
317,241
317,241
Payable after one year
167,241
634,483
The bank loan is secured with a fixed charge and debenture over all assets of the company. Interest is charged on this loan at a rate of 3.14% over base rate per annum.
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
51,600
165,292
In two to five years
51,610
51,600
216,902
The finance leases are secured on the applicable assets and the average lease term is five years.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
133,600
155,900
2024
Movements in the year:
£
Liability at 1 July 2023
155,900
Credit to profit or loss
(22,300)
Liability at 30 June 2024
133,600
The directors have considered the deferred tax liabilities note above and concluded that it is not possible to state the estimated liabilities which will reverse within the next 12 months. This is due to the level of reversal being dependent on events which are not yet known.
JRP DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
85,986
32,038
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
58,480
58,480
58,480
58,480
Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights.
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
383,036
383,036
Between two and five years
1,532,142
1,532,142
In over five years
383,036
1,915,178
2,298,214
22
Events after the reporting date
After the year end the company redesignated 8,840 ordinary shares to ordinary A shares. There were no changes to the rights of the shares.
JRP DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
23
Related party transactions
Simply Brands (Asia) Limited
Associated company
A director of JRP Distribution Limited is also a shareholder and director of Simply Brands (Asia) Limited. During the accounting period, the following related party transactions occurred:
1) The company paid Simply Brands (Asia) Limited £6,629,612 (2023 - £5,047,068) for goods and services received.
2) The company made net sales to Simply Brands (Asia) Limited totalling £nil (2023 - £2,487) in relation to sample stock and marketing.
At 30 June 2024 the following balance is included within the financial statements:
1) Trade creditor balance of £427,312 (2023 - £236,685) owed by the company to Simply Brands (Asia) Limited.
Frsh Scents Limited
Associated company
A director of JRP Distribution Limited is also a shareholder and director of Frsh Scents Limited. During the accounting period, the following related party transactions occurred:
1) Frsh Scents Limited charged the company £733,163 (2023 - £181,828) for goods and services received.
2) The company made net sales to Frsh Scents Limited totalling £8,624 (2023 - £11,920) in relation to sample stock and marketing.
At 30 June 2024 the following balances are included within the financial statements:
1) Trade creditor balance of £107,000 (2023 - £14,219) owed by the company to Frsh Scents Limited.
JRP DISTRIBUTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
978,672
2,526,627
Adjustments for:
Taxation charged
330,476
308,396
Finance costs
90,162
126,448
Investment income
(1,721)
(612)
Loss on disposal of tangible fixed assets
3,912
-
Fair value gain on foreign exchange contracts
(1,314,283)
Amortisation and impairment of intangible assets
4,000
Depreciation and impairment of tangible fixed assets
114,695
127,050
Movements in working capital:
(Increase)/decrease in stocks
(1,506,115)
805,268
(Increase)/decrease in debtors
(172,585)
796,774
Increase/(decrease) in creditors
1,438,249
(2,477,747)
Cash generated from operations
1,275,745
901,921
The movement in creditors includes a decrease of £172,317 (2023 - £1,543,918) in invoice financing liability.
25
Analysis of changes in net debt
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
44,988
11,228
56,216
Borrowings excluding overdrafts
(951,724)
467,242
(484,482)
Obligations under finance leases
(216,902)
165,302
(51,600)
(1,123,638)
643,772
(479,866)
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