Company registration number 00939789 (England and Wales)
DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
COMPANY INFORMATION
Directors
I Mole
K Sasaki
S Stegert
(Appointed 1 January 2023)
Secretary
I Mole
Company number
00939789
Registered office
Unit 5 Kingston Business Park
Dunfermline Court
Kingston
Milton Keynes
Bucks
MK10 0BY
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
Bankers
Royal Bank of Scotland
501 Silbury Boulevard
Saxon Gate East
Milton Keynes
United Kingdom
MK9 3ER
DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with its size and nature.

The company's principal activity is the design and implementation of conveyor systems, mostly to the automotive industry, in the UK. We also supply to mainland Europe on occasion.

Like many other businesses in our sector, we continued to suffer with projects being pushed back due to the weaker economy and cost of living squeeze, fuelled by high inflation and interest rates. Consequently, this has affected the consumer base and so projects have been pushed back by the automotive companies.

Daifuku Automotive U.K. Ltd has benefited from financial assistance supplied by our parent company, Daifuku North America. This has allowed us to pay our suppliers to terms and continue to fulfil our financial obligations.

We are guided by the values and principles of the Daifuku global brand and always aim to protect and enhance our long-term reputation with all stakeholders.

The company's turnover increased by 8.8%, but this was off-set by high costs on legacy jobs that were beset by issues, namely the INEOS project in Northern France (£1.2m worth of costs in the year), JITs (£261k costs) and BMW Hams Hall (£1.5m costs). In total, these added £3m of costs, pushing our overall performance into a negative situation. These projects will be thoroughly addressed and closed out through 2024 and 2025.

In terms of overheads, we managed them strictly during the year, but Sales expenses increased due to an additional recruit.

Principal risks and uncertainties

At the time of writing, the UK economy is still recovering and this is reflected in lower sales of new vehicles, pushing the manufacturers to slow down their own plans and push projects back. Consequently, lower sales volumes in a highly competitive industry mean suppliers have to accept lower margins to win and retain business. Daifuku Automotive U.K. Limited has an excellent and long-standing relationship with suppliers and customers, mainly built over decades and we strive to continue improving these.

As the past few years have taught us, we are aware that the development of the business may be subject to other unforeseen future events outside of our control, but we remain confident that our customer relations, technical innovations and the continued backing of our parent company will allow us to succeed in these challenging markets and make us well placed to take advantage of future opportunities for growth.

The director recognises the important contribution made by all our staff to the business's success. It is a skilled team and we engage them with competitive remuneration rates and the provision of training for career development. Staff meet with their managers regularly to discuss issues.

With our customers and suppliers, we aim to always offer a market leading service, maintaining long term relationships with a reputation for excellent work and transparency in our dealings with them.

On behalf of the board

I Mole
Director
20 March 2025
DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activities of the company is the design, manufacture and installation of material handling systems.

Results and dividends

The results for the year are set out on page 8.

The directors do not recommend the payment of a dividend in respect of 2023 (2022: £Nil).

Directors

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

I Mole
H Ishimoto
(Resigned 1 January 2023)
K Sasaki
S Stegert
(Appointed 1 January 2023)
Auditor

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

Statement of directors' responsibilities

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

 

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

 

 

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

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.

Medium-sized companies exemption

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

DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
I Mole
Director
20 March 2025
DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
- 4 -

Qualified opinion on financial statements

We have audited the financial statements of Daifuku Automotive U.K. Ltd (formerly Jervis B.Webb Company Ltd) (the 'company') for the year ended 31 December 2023 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

We were unable to obtain sufficient appropriate audit evidence in relation to stock ageing, supplier activity reports and certain nominal ledger balances due to the impaired functionality of the company’s accounting system. As a result, we have not been able to fully complete certain aspects of our audit work around stock provisions and trade and other creditors. We note that the VAT liability as recorded in the creditors balance appears to be understated by around £335K. The accounting records and explanations obtained for the purpose of the audit have been insufficient and therefore we have not obtained sufficient audit evidence to support an unqualified opinion. The prior year stock and creditor balances have been subject to a qualified opinion in the financial statements for that year.

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 qualified 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.

DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD) (CONTINUED)
- 5 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

As described in the Basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the system deficiencies causing us not to be able to obtain sufficient evidence for our stock obsolescence review and supplier activity in the year. We have also been unable to verify the VAT creditor as at the year end. We have concluded that where the other information refers to these balances, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the matter described in the Basis for qualified opinion section of this report, in our opinion, based on the work undertaken in the course of our audit:

 

Matters on which we are required to report by exception

Except for the matter described in the Basis for qualified opinion section of our report, 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 and the directors' report.

 

Arising solely from the limitation on the scope of our work relating to the matter referred to above:

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD) (CONTINUED)
- 6 -
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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

and from our commercial knowledge and experience of the design and delivery of renewable energy

sources to emerging markets;

financial statements or the operations of the company, including Companies Act 2006, taxation legislation,

data protection, anti-bribery, employment, environments and health and safety legislation;

enquiries of management and inspecting legal correspondence; and

alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement including obtaining an understanding of how fraud might occur, by:

 

knowledge of actual, suspected and alleged fraud;

regulations; and

 

To address the risk of fraud through management bias and override of controls, we:

of potential bias;

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures

which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD) (CONTINUED)
- 7 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Terri Pierpoint
Senior Statutory Auditor
For and on behalf of BHP LLP
20 March 2025
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
12,940,530
11,891,773
Cost of sales
(16,273,125)
(10,469,347)
Gross (loss)/profit
(3,332,595)
1,422,426
Distribution costs
(1,277,834)
(1,027,566)
Administrative expenses
(1,288,756)
(1,147,431)
Operating loss
4
(5,899,185)
(752,571)
Interest receivable and similar income
7
590
78
Interest payable and similar expenses
8
-
0
797
Loss before taxation
(5,898,595)
(751,696)
Tax on loss
9
(159,000)
-
0
Loss for the financial year
(6,057,595)
(751,696)

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

DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
-
0
11,664
Current assets
Stocks
11
1,343,160
1,467,576
Debtors
12
5,880,653
5,047,633
Cash at bank and in hand
6,070,130
1,023,472
13,293,943
7,538,681
Creditors: amounts falling due within one year
13
(9,171,574)
(2,636,390)
Net current assets
4,122,369
4,902,291
Total assets less current liabilities
4,122,369
4,913,955
Creditors: amounts falling due after more than one year
14
(5,266,009)
-
0
Net (liabilities)/assets
(1,143,640)
4,913,955
Capital and reserves
Called up share capital
18
700,000
700,000
Share premium account
18,218,356
18,218,356
Profit and loss reserves
(20,061,996)
(14,004,401)
Total equity
(1,143,640)
4,913,955

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

The financial statements were approved by the board of directors and authorised for issue on 20 March 2025 and are signed on its behalf by:
I Mole
Director
Company registration number 00939789 (England and Wales)
DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
700,000
18,218,356
(13,252,705)
5,665,651
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
(751,696)
(751,696)
Balance at 31 December 2022
700,000
18,218,356
(14,004,401)
4,913,955
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(6,057,595)
(6,057,595)
Balance at 31 December 2023
700,000
18,218,356
(20,061,996)
(1,143,640)
DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
21
(219,941)
(1,494,414)
Interest paid
-
0
797
Net cash outflow from operating activities
(219,941)
(1,493,617)
Investing activities
Interest received
590
78
Net cash generated from investing activities
590
78
Financing activities
Proceeds from borrowings
5,266,009
-
0
Net cash generated from/(used in) financing activities
5,266,009
-
Net increase/(decrease) in cash and cash equivalents
5,046,658
(1,493,539)
Cash and cash equivalents at beginning of year
1,023,472
2,517,011
Cash and cash equivalents at end of year
6,070,130
1,023,472
DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Daifuku Automotive U.K. Ltd (formerly Jervis B.Webb Company Ltd) is a private company limited by shares incorporated in England and Wales. The registered office is Unit 5 Kingston Business Park, Dunfermline Court, Kingston, Milton Keynes, Bucks, MK10 0BY.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The financial statements of the company are consolidated in the financial statements of Daifuku Co., Ltd. These consolidated financial statements are available from its registered office, 3-2-11 Mitejima, Nishiyodogawa-ku, Osaka, 555-0012 JAPAN.

1.2
Going concern

Atruet 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. Although it has been a difficult year, the company continues to win new contracts and the wider group continues to support the company. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.

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.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold Improvements
5 years straight line
Fixtures, fittings & equipment
4 to 5 years straight line
Computer equipment
4 years straight line

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
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

1.8
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 balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.9
Equity instruments

Share capital issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on share capital are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

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

DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from the initial recognition of assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets are reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Retirement benefits
The company operates a defined contribution pension scheme. Pension costs charged to the profit and loss account represent the amount of the contributions payable to the scheme in respect of the accounting period.
1.12
Leases

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 leases asset are consumed.

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.

DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

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

Revenue recognition

As detailed in Note 1.3 - Turnover, revenue on contracts is recognised by reference to the stage of completion and therefore may not be in line with the invoice date. There is an element of judgement relating to managements assessment of the stage of completion of any particular contract.

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.

Amounts due on contracts

When a sale is accounted for, there may be a mismatch between this and the costs which have been captured in the financials, and as such a provision is required. This provision requires an estimate of the costs to complete the contract which may differ from the final actual costs and therefore represents a degree of uncertainty.

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
12,940,530
11,891,773
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
10,725,299
9,490,122
Rest of Europe
2,142,531
2,302,589
North America
22,069
80,319
Rest of World
50,631
18,743
12,940,530
11,891,773
DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 17 -
2023
2022
£
£
Other revenue
Interest income
590
78
4
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
48,327
(30,993)
Fees payable to the company's auditor for the audit of the company's financial statements
23,406
23,470
Depreciation of owned tangible fixed assets
11,664
11,663
Operating lease charges
203,395
127,189
5
Employees

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

2023
2022
Number
Number
22
18

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
974,760
794,281
Social security costs
138,351
107,821
Pension costs
67,246
67,968
1,180,357
970,070
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
115,952
117,842
Company pension contributions to defined contribution schemes
11,039
10,750
126,991
128,592
DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
590
78
8
Interest payable and similar expenses
2023
2022
£
£
Other interest
-
0
(797)
9
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
159,000
-
0

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Loss before taxation
(5,898,595)
(751,696)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(1,387,382)
(142,822)
Tax effect of expenses that are not deductible in determining taxable profit
185
-
0
Change in unrecognised deferred tax assets
1,632,520
186,991
Effect of change in corporation tax rate
(87,200)
(44,878)
Fixed asset timing differences
877
709
Taxation charge for the year
159,000
-
DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
10
Tangible fixed assets
Leasehold Improvements
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023 and 31 December 2023
97,812
20,200
39,712
157,724
Depreciation and impairment
At 1 January 2023
97,812
15,447
32,801
146,060
Depreciation charged in the year
-
0
4,753
6,911
11,664
At 31 December 2023
97,812
20,200
39,712
157,724
Carrying amount
At 31 December 2023
-
0
-
0
-
0
-
0
At 31 December 2022
-
0
4,753
6,911
11,664
11
Stocks
2023
2022
£
£
Raw materials and consumables
1,343,160
1,467,576
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,313,022
1,389,535
Gross amounts owed by contract customers
2,450,692
3,413,889
Amounts owed by group undertakings
15,704
4,772
Other debtors
13,595
43,289
Prepayments and accrued income
87,640
37,148
5,880,653
4,888,633
Deferred tax asset (note 16)
-
0
159,000
5,880,653
5,047,633
DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
13
Creditors: amounts falling due within one year
2023
2022
£
£
Payments received on account
479,474
25,092
Trade creditors
6,749,853
1,566,733
Amounts owed to group undertakings
971,978
294,502
Taxation and social security
727,624
612,325
Accruals and deferred income
242,645
137,738
9,171,574
2,636,390
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
15
5,266,009
-
0
15
Loans and overdrafts
2023
2022
£
£
Loans from group undertakings
5,266,009
-
0
Payable after one year
5,266,009
-
0

During the year the company entered into £5,100,000 of intercompany loans. These loans have an interest rate of SONIA + 0.5% applied to the debt. Repayments of the loan commence in January 2025.

16
Deferred taxation

Deferred tax assets and liabilities are offset where the 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:

Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
-
159,000
DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Deferred taxation
(Continued)
- 21 -
2023
Movements in the year:
£
Asset at 1 January 2023
(159,000)
Charge to profit or loss
159,000
Liability at 31 December 2023
-
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
67,246
67,968

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.

 

 

 

 

18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
700,000
700,000
700,000
700,000
19
Operating lease commitments
Lessee

The prior year figure has been restated to include leases that were omitted in the prior year. This has had the following impact on the operating lease note, increasing commitments less than a year by £21,190 and the two to five years commitment by £19,570.

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:

2023
2022
£
£
Within one year
176,365
156,276
Between two and five years
316,915
447,342
493,280
603,618
DAIFUKU AUTOMOTIVE U.K. LTD (FORMERLY JERVIS B.WEBB COMPANY LTD)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
20
Ultimate controlling party

The company's immediate parent undertaking is Jervis B Webb International Company, a company incorporated in the United States of America. The company's ultimate holding undertaking is Daifuku Co. Ltd, 3-2-11 Mitejima Nishiyodogawa-Ku, Osaka, Japan a company incorporated in Japan. The ultimate controlling party is Daifuku Co. Ltd.

21
Cash absorbed by operations
2023
2022
£
£
Loss for the year after tax
(6,057,595)
(751,696)
Adjustments for:
Taxation charged
159,000
-
0
Finance costs
-
0
(797)
Investment income
(590)
(78)
Depreciation and impairment of tangible fixed assets
11,664
11,663
Movements in working capital:
Decrease/(increase) in stocks
124,416
(82,147)
(Increase)/decrease in debtors
(992,020)
112,347
Increase/(decrease) in creditors
6,535,184
(495,312)
Decrease in deferred income
-
(288,394)
Cash absorbed by operations
(219,941)
(1,494,414)
22
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,023,472
5,046,658
6,070,130
Borrowings excluding overdrafts
-
(5,266,009)
(5,266,009)
1,023,472
(219,351)
804,121
2023-12-312023-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.310H IshimotoK SasakiS StegertS StegertI Mole009397892023-01-012023-12-3100939789bus:CompanySecretaryDirector12023-01-012023-12-3100939789bus:Director22023-01-012023-12-3100939789bus:Director32023-01-012023-12-3100939789bus:CompanySecretary12023-01-012023-12-3100939789bus:Director12023-01-012023-12-3100939789bus:Director42023-01-012023-12-3100939789bus:RegisteredOffice2023-01-012023-12-3100939789bus:Agent12023-01-012023-12-31009397892023-12-31009397892022-01-012022-12-3100939789core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3100939789core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31009397892022-12-3100939789core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3100939789core:FurnitureFittings2023-12-3100939789core:ComputerEquipment2023-12-3100939789core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3100939789core:FurnitureFittings2022-12-3100939789core:ComputerEquipment2022-12-3100939789core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3100939789core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3100939789core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3100939789core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3100939789core:CurrentFinancialInstruments2023-12-3100939789core:CurrentFinancialInstruments2022-12-3100939789core:ShareCapital2023-12-3100939789core:ShareCapital2022-12-3100939789core:SharePremium2023-12-3100939789core:SharePremium2022-12-3100939789core:RetainedEarningsAccumulatedLosses2023-12-3100939789core:RetainedEarningsAccumulatedLosses2022-12-3100939789core:ShareCapital2021-12-3100939789core:SharePremium2021-12-3100939789core:RetainedEarningsAccumulatedLosses2021-12-31009397892022-12-31009397892021-12-3100939789core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3100939789core:FurnitureFittings2023-01-012023-12-3100939789core:ComputerEquipment2023-01-012023-12-310093978912023-01-012023-12-310093978912022-01-012022-12-3100939789core:UKTax2023-01-012023-12-3100939789core:UKTax2022-01-012022-12-3100939789core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3100939789core:FurnitureFittings2022-12-3100939789core:ComputerEquipment2022-12-3100939789core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3100939789core:Non-currentFinancialInstruments2023-12-3100939789core:Non-currentFinancialInstruments2022-12-3100939789core:WithinOneYear2023-12-3100939789core:WithinOneYear2022-12-3100939789core:BetweenTwoFiveYears2023-12-3100939789core:BetweenTwoFiveYears2022-12-3100939789bus:PrivateLimitedCompanyLtd2023-01-012023-12-3100939789bus:FRS1022023-01-012023-12-3100939789bus:Audited2023-01-012023-12-3100939789bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP