Registered number:
For the Year Ended
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J & A YOUNG GROUP LIMITED
Company Information
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J & A YOUNG GROUP LIMITED
Contents
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J & A YOUNG GROUP LIMITED
Group Strategic Report
For the Year Ended 30 September 2024
The directors present their strategic report of the Group for the year ended 30 September 2024.
The financial statements show revenue of £50.5m (2023: £76.5m). Revenue and margins for the year ended 2024 were adversely impacted by cyclical market pressures. The business made the strategic decision to reduce sales volumes during this uncertain period and instead, to build inventory of processed material in anticipation of the market recovering. The business focused on controlling its costs during the period. Despite these headwinds, the Group maintained its long-term strategic focus and continued to invest substantially in its core operations, including the opening of a new HDPE recycling plant and continued development of a new multi-polymer facility in Swansea. This sustained investment reflects a proven growth strategy that ensures the business is well positioned to capitalise on opportunities when market conditions stabilise. Due to the high investment throughout 2024, the business generated a large, deferred tax liability at the yearend.
The Group's operations expose it to a variety of financial risks that include the effects of changes in exchange rates, credit risk, liquidity risk and interest rate risk, as well as certain business risks associated with the production and handling of quantities of plastic stocks.
The directors of the Group meet regularly to review any risks and uncertainties that are either currently faced by the Group or will potentially be face by the Group in the future. Measures are then agreed upon to be put in place to mitigate these risks and uncertainties. Contingency plans have been constructed to respond in the event of a challenge to the business, and adequate sources of funding are available to meet those needs as and when they may arise.
The group's key performance indicators are as follows:
2024 2023 £000 £000 Turnover 50,463 76,453 Gross profit 10,226 27,032 Gross profit margin 20.3% 35.4% Operating profit 223 16,470 (Loss)/profit before taxation (1,262) 15,138 Net assets 53,311 50,002
The Group continues to develop and operate its unique recycling processes and considers itself to be at the forefront of plastic recycling in the UK. It continues to grow its manufacturing base and to enhance its ability to offer its customers a complete closed loop solution for their plastic waste, providing quality recycled products from their own used material. This meets all of our major customers' environmental and social responsibility requirements, whilst making a significant contribution to the circular economy within the UK.
The Group aims, year on year, to increase its yields from feed stock, improve efficiencies and maximise its output whilst continuing to invest in new R&D initiatives and plant to enhance quality and capacity.
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J & A YOUNG GROUP LIMITED
Group Strategic Report (continued)
For the Year Ended 30 September 2024
It is important to our board that we develop strong and positive relationships with our employees, customers, and suppliers as well as government and industry regulators. We have a legal responsibility under section 172 of the companies act 2006 to act in a way we consider in good faith most likely to benefit the group as a whole whilst ensuring we have oversight of long terms effect of our decisions on the business and it’s stakeholders. This statement covers how we, as a board, address this responsibility.
J and A Young (Leicester) Ltd was founded in 1975 by Jeremy Young and continues to be a privately run company to this day. Our long term strategy is to continue to invest in the group to ensure we have the infrastructure and resources in place to maintain our position as the leading independent plastics recycler in the UK. In order to meet our ambitious long term strategic objectives it is important that we form strategic partnerships with our key stakeholders. We have made significant investments in capital projects which not only benefits our key stakeholders but benefits the UK plastic recycling industry as a whole and makes a real contribution to the UK circular economy.
This report was approved by the board on 27 June 2025 and signed on its behalf.
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J & A YOUNG GROUP LIMITED
Directors' Report
For the Year Ended 30 September 2024
The directors present their report and the financial statements for the year ended 30 September 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;
∙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 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 £1,470 thousand (2023 - profit £14,249 thousand).
No dividends have been paid within the year.
The directors who served during the year were:
The Group recognises the benefits of keeping employees informed of the progress of the business and of involving them in the Group’s performance. Consultation with employees or their representatives occur regularly, with the aim of ensuring employees’ views are taken into account when decisions are made that are likely to affect their interests.
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J & A YOUNG GROUP LIMITED
Directors' Report (continued)
For the Year Ended 30 September 2024
We invest heavily in innovation to ensure we continue to provide our customers the best recycling route for their materials whilst ensuring we meet all legal and regulatory requirements. We have monthly innovation meetings with all of our major customers with the aim of improving quality and final products. We have built, and will maintain, a reputation of transparency and fair dealings with all of our customers and suppliers.
We are a family run group with roots in the Midlands and have focussed our strategic growth within this area. We also support our major customers in their charity drives with supply of bags, and products when required. Plastics recycling is critical to the reduction of environmental pollution, and we help reduce the use of virgin polymers by providing quality recycled plastic products. This results in a reduction in the use of natural resources, lower energy costs, lower water usage, and protection of forestry. We recycle and dispose of all of our waste responsibly; all of our sites have bespoke environmental permits and exceed all minimum regulatory standards for plastics recycling. Our strategic growth will continue to support the UK recycling infrastructure and make a significant contribution to the UK circular economy.
Summary
The Group’s greenhouse gas emissions, reportable under SECR in 2023/24 were 15,098 (2023: 12,880) tonnes of carbon dioxide equivalent (tCO2e) at an emissions intensity of 0.19 (2023: 0.15) tCO2e per tonne of production for the period 1st October 2023 to 30th September 2024. These include the emissions associated with UK electricity and natural gas consumption and business travel in company and private vehicles by employees. Greenhouse gas emissions - location based Figure 1 Greenhouse gas emissions by year (tonnes CO2e): Emissions source 2023/24 2022/23 %Share Fuel combustion: Natural gas 3,093 1,974 20% Fuel combustion: Transport 2,396 2,315 16% Purchased electricity 9,609 8,591 64% Total emissions (tCO2e) 15,098 12,880 100% Production (tonnes) 80,913 86,929 Intensity: (tCO2e per tonnes of production) 0.19 0.15 Figure 2 Greenhouse gas emissions by scope (tonnes CO2e): Emissions source 2023/24 2022/23 %Share Scope 1 5,445 4,247 36% Scope 2 9,609 8,591 64% Scope 3 44 42 -% Total emissions (tCO2e) 15,098 12,880 100% Scope 1 consumption and emissions include direct combustion of natural gas, other fuels such as LPG, ultra-low-sulphur diesel burning oil, and fuels utilised for transportation operations, for example, company vehicle fleets. Scope 2 consumption and emissions cover indirect emissions related to the consumption of purchased
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J & A YOUNG GROUP LIMITED
Directors' Report (continued)
For the Year Ended 30 September 2024
electricity in day to day business operations. Scope 3 consumption and emissions cover emissions resulting from sources not directly owned by us. This relates to grey fleet (business travel undertaken in employee owned vehicles) only.
Methodology This report (including the Scope 1, 2 and 3 consumption and CO2e emissions data) has been developed and calculated using the GHG Protocol – A Corporate Accounting and Reporting Standard (World Resources Institute and World Business Council for Sustainable Development, 2004); Greenhouse Gas Protocol – Scope 2 Guidance (World Resources Institute, 2015); ISO 14064-1 and ISO 14064-2 (ISO, 2018; ISO, 2019); Environmental Reporting Guidelines: Including Streamlined Energy and Carbon Reporting Guidance (HM Government, 2019). Government Emissions Factor Database 2023 version 1.1 has been used, utilising the published kWh gross calorific value (CV) and kgCO2e emissions factors relevant for the reporting period 01/10/2023 - 30/09/2024. Estimations were undertaken to cover missing billing periods for properties directly invoiced to Jayplas. These were calculated at the meter level on a kWh/day pro-rata basis. All estimations equated to 0.13% of reported consumption. Market-based emissions have been calculated using supplier-specific fuel mix emissions factor for each of the Group's sites and suppliers. FY2023 Scope 1 transport emissions have been restated to include newly available company car expenditure data. The figures for FY2023 have been updated to reflect this new data and have been restated in the current year's report. Intensity metrics have been calculated using total tCO2e figures and the selected performance indicator agreed with the Group for the relevant report period, being total tonnes of production of 80,913 (2023: 86,929).
Energy Efficiency Improvements
We are committed to year on year improvements in our operational energy efficiency. A register of energy efficiency measures has been compiled, with a view to implementing these measures in the next five years. Measures ongoing and undertaken through 2023/24 Variable Speed Compressor Installation The Group installed one 132 kW variable speed compressor to replace the two 90kW fixed speed compressors at the Normanton site. This new, variable speed compressor automatically controls the speed of the unit to match the load, as opposed to its older, fixed-speed equivalent. This, in turn, will result in lower energy consumption of the compressor unit at the Normanton site, helping to reduce Jayplas' scope 2 emissions.
Measures prioritised for implementation in 2024/25
The Group is planning to make screw and barrel changes to extrusion lines 3 and 9 at the Worksop site. Extrusion lines are extremely energy-demanding pieces of machinery and run most efficiently when operating at the design conditions for the motor and screw, with barrel insulation reducing temperature fluctuations. Therefore, screw and barrel changes to these lines will likely improve their energy-efficiency and reduce the electricity consumption of the extrusion lines at the Worksop site. LED Lighting Replacement at the Swansea Site The Group is planning the installation of a new LED lighting system in the extrusion department at the Swansea site. The installation of a more energy-efficient lighting system will lead to a reduction in the system's electricity consumption and therefore a reduction in the Group's scope 2 emissions from the lighting at the Swansea site.
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J & A YOUNG GROUP LIMITED
Directors' Report (continued)
For the Year Ended 30 September 2024
The auditors, PKF Smith Cooper Audit 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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J & A YOUNG GROUP LIMITED
Independent Auditors' Report to the Members of J & A Young Group Limited
We have audited the financial statements of J & A Young Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, 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.
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J & A YOUNG GROUP LIMITED
Independent Auditors' Report to the Members of J & A Young Group Limited (continued)
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.
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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J & A YOUNG GROUP LIMITED
Independent Auditors' Report to the Members of J & A Young Group Limited (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:
Based on our understanding of the Group and industry, we identify the key laws and regulations affecting the Group. We identified that the principle risk of fraud or non-compliance with laws and regulations related to: • Management bias in respect of accounting estimates and judgements made; • Management override of control; • Posting of unusual journals or transactions We focussed on those areas that could give rise to a material misstatement in the Group financial statements. Our procedures included, but were not limited to: • Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud; • Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud. • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. • Performing audit work over the risk of management override controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias in particular waste disposal and stock provisons. It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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J & A YOUNG GROUP LIMITED
Independent Auditors' Report to the Members of J & A Young Group Limited (continued)
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
Statutory Auditors
2 Lace Market Square
NG1 1PB
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J & A YOUNG GROUP LIMITED
Consolidated Statement of Comprehensive Income
For the Year Ended 30 September 2024
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J & A YOUNG GROUP LIMITED
Registered number: 06519820
Consolidated Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 19 to 45 form part of these financial statements.
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J & A YOUNG GROUP LIMITED
Registered number: 06519820
Company Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 19 to 45 form part of these financial statements.
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J & A YOUNG GROUP LIMITED
Consolidated Statement of Changes in Equity
For the Year Ended 30 September 2024
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J & A YOUNG GROUP LIMITED
Company Statement of Changes in Equity
For the Year Ended 30 September 2024
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J & A YOUNG GROUP LIMITED
Consolidated Statement of Cash Flows
For the Year Ended 30 September 2024
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J & A YOUNG GROUP LIMITED
Consolidated Statement of Cash Flows (continued)
For the Year Ended 30 September 2024
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J & A YOUNG GROUP LIMITED
Consolidated Analysis of Net Debt
For the Year Ended 30 September 2024
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
J & A Young Group Limited (the "Company") is a private company limited by shares and incorporated and domiciled in the UK. The registered number is 06519820 and the registered address is 15 Saxon Way East, Oakley Hay Industrial Estate, Corby, NN18 9EY.
The presentation currency of these financial statements is Sterling. All amounts in the financial statements have been rounded to the nearest £1,000.
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 Balance Sheet, 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. Acquisitions made by share issue, for example by share for share exchange, account for the difference between subsidiary net asset values at acquisition and nominal value of the shares issued by the Company or a subsidiary Company as a separate reserve termed the merger relief reserve. The share for share exchange was accounted for as a group reconstruction using the merger accounting method.
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
2.Accounting policies (continued)
The Directors have made an assessment as to whether the use of going concern is appropriate, including whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. In line with International Audit Standards – ISA 570, the Directors have made this assessment in respect of a period of at least one year from the date of approval of the financial statements.
In making their assessment the Directors have paid due regard to relevant forecast financial information - including cash flows, available facility levels and in their appraisal has factored in sensitivities affecting the Group and the economy. The Group generated positive cashflows from operating activities and has continued to do so in 2025 and is forecast to do so in 2026 and beyond. The Group is making necessary and significant investments in capital projects, to develop and overhaul the existing facilities to ensure that the Group continues to be one of the leading providers of plastic recycling in the UK. This will result in the Group being able to significantly expand capacity and hence drive further profitability. In the short term, investment results in cashflow requirements being made on working capital. Existing facilities are under constant review and are renegotiated where necessary, with new facilities being agreed to fund the development. Having due regard to all available information the Directors are satisfied that the Group has adequate resources to meet its liabilities as they fall due and therefore they should continue to adopt the going concern basis in preparing the financial statements.
Functional and presentation currency
Transactions and balances
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is not recognised until the significant risks and rewards of ownership of the goods have passed to the buyer and the amount of revenue can be measured reliably. Revenue in relation to packaging recovery notes (PRN) is recognised upon the transfer of the risks and rewards of ownership of the PRN to the customer. This is included in the sale of goods. Where payments on account are received from customers in advance of the point at which revenue is recognised, such payments on account are offset against work-in-progress balances.
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
2.Accounting policies (continued)
Goodwill
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:
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
2.Accounting policies (continued)
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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.
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.
Horses in training
Horses in training are recognised initially at cost and are depreciated on a straight line basis over their useful economic lives. Males - straight line basis over 10 years Females - straight line basis over 16 years Where retired horses are not kept for breeding, they are fully impaired. Horses in breeding In a departure from FRS 102, rather than disclosing as a separate class of biological fixed asset, horses in breeding have been disclosed as a separate category of property, plant and equipment. The accounting treatment is equivalent to biological assets and again these assets are depreciated on a straight line basis over their useful economic lives after initial recognition at cost. Males - straight line basis over 10 years Females - straight line basis over 16 years
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
2.Accounting policies (continued)
Investment property is carried at fair value derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in the Statement of comprehensive income. Bloodstock was in perior periods classified within stocks in current assets to align with industry standards. This was a departure from FRS 102 which suggests that horses in training should be accounted for as fixed assets and brood mares as biological assets. Bloodstock was split into the following categories: Stud farm Broodmares Yearlings Racing Horses in training Bloodstock was valued at the lower of cost and net realisable value, with book value being considered on an annual basis and impairment adjustments being made where necessary. All horses stocks are now accounted for as fixed assets following a change in accounting treatment/estimates
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 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.
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, 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.
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.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
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.
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.
Basic 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
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
2.Accounting policies (continued)
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 effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
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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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
2.Accounting policies (continued)
Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.
Financial liabilities within the scope of IAS 39 are initially classified as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
The Group determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognised initially at fair value and in the case of loans and borrowings, plus directly attributable transaction costs. Subsequently, the measurement of financial liabilities depends on their classification as follows: After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Gains and losses arising on the repurchase, settlement or otherwise cancellation of liabilities are recognised respectively in finance revenue and finance cost.
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
a) Depreciation rates based on estimates of the useful lives and residual values of the assets involved. b) Stock estimates and assumptions around the absorption of overheads and the yield percentages of finished goods from raw materials. c) Goodwill amortisation is calculated on a systematic basis over its estimated useful life. d) Horses in training and horses in breeding Horses held for the purpose of income generation are held within fixed assets and are stated at cost less accumulated depreciation and any impairments. Cost includes purchase price and any directly attributable costs. Depreciation is estimated by directors taking into account such factors as sex, health, performance and changes in market conditions: Horses in training (male): 10 years straight line Horses in training (female): 16 years straight line Horses in breeding (female): 16 years straight line
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
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 loss after tax of the parent Company for the year was £
Page 30
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
Page 31
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
11.Taxation (continued)
There are no factors affecting future tax charges.
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
14.Tangible fixed assets (continued)
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
Page 37
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
The bank loans are secured against all property and assets of the Group by way of a debenture and also against the property of a company under common control.
The asset backed lending facility is secured against trade debts as well as by way of debenture against all other property and assets of the Group. The hire purchase liabilities are secured against the fixed assets to which they relate but also against all other property and assets of the Group in certain cases.
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
The bank loans are secured against all property and assets of the Group by way of a debenture and also against the property of a company under common control.
The hire purchase liabilities are secured against the fixed assets to which they relate but also against all other property and assets of the Group in certain cases.
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
Page 40
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
Page 41
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
3,125,000 Preference ordinary shares were issued and fully paid at par value with a nominal value of £3,125,000.
Merger relief reserve
Profit and loss account
Page 42
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
J & A Young (Racing) Limited Charnwood Campus Management Limited
Page 43
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
28.Business combinations (continued)
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Group to the scheme and amounted to £242,000 (2023: £226,000).
Contributions totalling £87,000 (2023: £42,000) were payable to the scheme at the end of the year and are included in accruals.
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J & A YOUNG GROUP LIMITED
Notes to the Financial Statements
For the Year Ended 30 September 2024
The group is ultimately controlled by the directors as a result of their 100% ownership of the issued share capital.
Page 45
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