Company registration number 12504503 (England and Wales)
JHC ACQUISITIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
JHC ACQUISITIONS LIMITED
COMPANY INFORMATION
Director
Mr N C Hopkins
Secretary
Mrs M C Hopkins
Company number
12504503
Registered office
Monde Trading Estate
Westinghouse Road
Trafford Park
Manchester
M17 1LP
Auditor
MHA
80 Mosley Street
Manchester
M2 3FX
JHC ACQUISITIONS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 31
JHC ACQUISITIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The director presents the strategic report for the year ended 31 October 2024.
Review of the business
The company is a holding company which has no trade. It owns 100% of the share Capital in J Hopkins (Contractors) Holdings Limited and 100% indirect ownership of J Hopkins (Contractors) Limited. J Hopkins (Contractors) Limited's main activities continue to be structural highway maintenance, civil engineering and the extraction and sale of recycled aggregate. J Hopkins (Contractors) Holdings Limited does not trade.
2024 was a year of consolidation and concentrating on improving operational performance rather than growth. Although turnover for the year was down marginally at £28,216k (2023: £28,501k) gross profit was up 22% at £4,732k (2023: £3,873k) as the business restructured it’s delivery models for contracts and brought more of its delivery in house. The net result was operating profit increased 69% to £987k (2023: £584k) while closing cash for the year increased 13% to £1,395k (2023: £1,232k).
The process of monitoring operational performance and improving profitability while delivering value for money to our clients will continue for 2025.
The director is pleased to report an operating profit of £987k (2023: £584k).
Principal risks and uncertainties
The director is aware of the need to provide a quality service to the customer base at a competitive price and will manage the impact of such risks without eroding the group's competitive position.
Price risk
Material costs have the potential to increase with short notice and as such a policy is adopted to recover these costs increases as soon as practical through the use of price increases. The group will maintain it's competitive position by mitigating these where possible with tight cost controls.
Credit risk
Credit risk is the risk of financial loss to the group if a customer fails to meet it's contractual obligations of payment. Customers are assessed for financial reliability using external rating agencies.
Liquidity risk
Liquidity risk arises from the group's management of working capital and the finance charges and principal repayments on it's debt instruments. It is the risk that the group will encounter difficulty in meeting it's financial obligations as they fall due.
At the end of the financial year, cash flow projections indicate that the group expects to have sufficient liquid resources to meet it's obligations under all reasonably expected circumstances.
Development and performance
People continue to be a key factor in the success of the business and the director will ensure the business has the necessary talent, with the appropriate training and skills sets, to deliver it's strategy whilst maintaining it's focus on health, safety and customer service.
JHC ACQUISITIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
Key performance indicators
The key performance indicators used by the director to monitor the business are as follows:
2024 2023
Turnover: £28.2m £28.5m
Gross profit %: 16.7% 13.6%
Net current assets: £0.4m £0.8m
Future developments
The director expects 2025 to be a year of steady growth as the business targets new geographical areas and clients.
Mr N C Hopkins
Director
30 June 2025
JHC ACQUISITIONS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
The director presents his annual report and financial statements for the year ended 31 October 2024.
Principal activities
The company's principal activity is a holding company. The group's main trading company is J Hopkins (Contractors) Limited. The principal activity of the trading company and group is that of structural highway maintenance, civil engineering and the extraction and sale of recycled aggregate.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £85,000. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr N C Hopkins
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 auditor of the company 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 auditor of the company is aware of that information.
Strategic Report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of fair review of business, principle risks and uncertainties.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr N C Hopkins
Director
30 June 2025
JHC ACQUISITIONS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 group and company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
JHC ACQUISITIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JHC ACQUISITIONS LIMITED
- 5 -
Opinion
We have audited the financial statements of JHC Acquisitions Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 2024 and of the group's 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 responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director 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 director is 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.
JHC ACQUISITIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JHC ACQUISITIONS LIMITED
- 6 -
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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
Matters on which we are required to report by exception
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.
Auditor 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.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
enquiries with management, about any known or suspected instances of non-compliance with laws and regulations or fraud within the business;
challenging assumptions and judgements made by management in their key accounts estimates;
auditing the risk of management override of controls, including thorough testing journal entries and other adjustments made by management for appropriateness;
reviewing board minutes and legal and professional expenditure to identify any evidence of ongoing litigation or enquiries; and
auditing the risk of fraud and management override of revenue by incorporating data analytics into our sampling of source entries and testing specific transactions to determine the completeness of revenue.
JHC ACQUISITIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JHC ACQUISITIONS LIMITED
- 7 -
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 noncompliance. 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 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.
Lee Van Houplines FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Manchester, United Kingdom
30 June 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
JHC ACQUISITIONS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
28,215,591
28,501,942
Cost of sales
(23,483,493)
(24,628,160)
Gross profit
4,732,098
3,873,782
Administrative expenses
(3,745,215)
(3,289,873)
Operating profit
4
986,883
583,909
Interest receivable and similar income
21,279
3,862
Interest payable and similar expenses
8
(182,771)
(221,939)
Profit before taxation
825,391
365,832
Tax on profit
9
(295,472)
(140,609)
Profit for the financial year
529,919
225,223
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
JHC ACQUISITIONS LIMITED
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
1,090,432
1,274,728
Other intangible assets
11
2,766
Total intangible assets
1,090,432
1,277,494
Tangible assets
12
4,761,903
4,033,331
5,852,335
5,310,825
Current assets
Stocks
15
253,932
201,248
Debtors falling due after more than one year
16
417,568
474,722
Debtors falling due within one year
16
6,985,371
7,671,030
Cash at bank and in hand
1,395,959
1,232,693
9,052,830
9,579,693
Creditors: amounts falling due within one year
17
(8,606,520)
(8,804,864)
Net current assets
446,310
774,829
Total assets less current liabilities
6,298,645
6,085,654
Creditors: amounts falling due after more than one year
18
(3,036,423)
(3,490,243)
Provisions for liabilities
Deferred tax liability
21
(1,117,033)
(895,141)
(1,117,033)
(895,141)
Net assets
2,145,189
1,700,270
Capital and reserves
Called up share capital
23
2
2
Share premium account
325,130
325,130
Profit and loss reserves
1,820,057
1,375,138
Total equity
2,145,189
1,700,270
The financial statements were approved and signed by the director and authorised for issue on 30 June 2025
30 June 2025
Mr N C Hopkins
Director
Company registration number 12504503 (England and Wales)
JHC ACQUISITIONS LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
13,070,294
13,070,294
Current assets
Cash at bank and in hand
1
1
Creditors: amounts falling due within one year
17
(10,838,937)
(10,459,037)
Net current liabilities
(10,838,936)
(10,459,036)
Total assets less current liabilities
2,231,358
2,611,258
Creditors: amounts falling due after more than one year
18
(1,899,500)
(2,279,400)
Net assets
331,858
331,858
Capital and reserves
Called up share capital
23
2
2
Share premium account
325,130
325,130
Profit and loss reserves
6,726
6,726
Total equity
331,858
331,858
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the period was £85,000 (2023 - £66,500 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 30 June 2025
30 June 2025
Mr N C Hopkins
Director
Company registration number 12504503 (England and Wales)
JHC ACQUISITIONS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2022
2
325,130
1,192,415
1,517,547
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
225,223
225,223
Dividends
10
-
-
(42,500)
(42,500)
Balance at 31 October 2023
2
325,130
1,375,138
1,700,270
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
529,919
529,919
Dividends
10
-
-
(85,000)
(85,000)
Balance at 31 October 2024
2
325,130
1,820,057
2,145,189
JHC ACQUISITIONS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2022
2
325,130
(17,274)
307,858
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
-
66,500
66,500
Dividends
10
-
-
(42,500)
(42,500)
Balance at 31 October 2023
2
325,130
6,726
331,858
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
85,000
85,000
Dividends
10
-
-
(85,000)
(85,000)
Balance at 31 October 2024
2
325,130
6,726
331,858
JHC ACQUISITIONS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
2,309,027
3,030,824
Interest paid
(182,771)
(221,939)
Income taxes refunded/(paid)
65,718
(268,007)
Net cash inflow from operating activities
2,191,974
2,540,878
Investing activities
Purchase of tangible fixed assets
(1,114,474)
(334,255)
Proceeds from disposal of tangible fixed assets
177,860
264,196
(Advances)/repayments to director
56,385
(70,050)
Interest received
21,279
3,862
Net cash used in investing activities
(858,950)
(136,247)
Financing activities
Repayment of debentures
(379,900)
(759,800)
Drawdown/(repayments) of debt factoring
150,130
(397,104)
Repayment of bank loans
(319,167)
(410,000)
Payment of finance leases obligations
(535,821)
(829,498)
Dividends paid to equity shareholders
(85,000)
(42,500)
Net cash used in financing activities
(1,169,758)
(2,438,902)
Net increase/(decrease) in cash and cash equivalents
163,266
(34,271)
Cash and cash equivalents at beginning of year
1,232,693
1,266,964
Cash and cash equivalents at end of year
1,395,959
1,232,693
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 14 -
1
Accounting policies
Company information
JHC Acquisitions Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Monde Trading Estate, Westinghouse Road, Trafford Park, Manchester, M17 1LP.
The group consists of JHC Acquisitions Limited and all of its subsidiaries.
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. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company JHC Acquisitions Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 31 October 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.4
Going concern
Based on the current trading and future expectations, the director is confident that the group will continue to trade profitably in future periods and generate sufficient cash flows to meet it's obligations as they fall due for payment.
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
The turnover shown in the profit or loss account represents amounts invoiced during the year, exclusive of Value Added Tax. In the case of long term contracts, turnover represents the sales value of work done during the year, including estimates in respect of amounts not invoiced.
Profits on long term contracts is taken as the work is carried out, if the final outcome can be assessed with reasonable certainty. The profit is calculated on a prudent basis to reflect the proportion of the work carried out by the year end by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract revenue which costs incurred to date bear to total expected costs for that contract. Revenue derived variations on contracts is only recognised when they have been accepted by the customers. Full provision is made for losses on all contracts in the year which they are first foreseen.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a straight line basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
33.3% reducing balance
1.8
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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:
Plant and equipment
15% reducing balance
Fixtures and fittings
33.3% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.10
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct costs.
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.
1.12
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.13
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 18 -
1.14
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
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.
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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group after deducting all of its liabilities.
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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 group's contractual obligations expire or are discharged or cancelled.
1.15
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.16
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. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred 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 goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is 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 if, and only if, there is 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.
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 20 -
1.17
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.19
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 except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.20
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.
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the director is 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.
Long term contracts
The director makes judgements as to whether the final outcome on long term contracts can be assessed with reasonable certainty before profits are calculated.
The director also makes judgements as to the amount of profit that is calculated on long term contracts such that it prudently reflects the proportion of the work carried out by the year end by recording turnover and related costs as contract activity progresses.
AROC/Trade debtors recoverability
Amounts recoverable on contracts/trade debtors are initially measured at the transaction price and subsequently measured at amortised cost being the transaction price less any amounts settled and any impairment losses. The director makes estimates as to the recoverability of these debts and provide for them accordingly.
Goodwill amortisation
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a straight line basis over its expected life, which is 10 years.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Provision of contractual asphalt works
26,291,631
26,291,761
Sale of recycled materials
1,633,504
1,819,195
AMT Labour income
215,050
211,920
Other
75,406
179,066
28,215,591
28,501,942
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
320,178
260,629
Depreciation of tangible fixed assets held under finance leases
512,970
596,201
Loss/(profit) on disposal of tangible fixed assets
24,284
(58,257)
Amortisation of intangible assets
187,062
194,441
Operating lease charges
244,683
238,883
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,510
5,280
Audit of the financial statements of the company's subsidiaries
19,990
19,090
25,500
24,370
Auditor's remuneration is paid for on behalf of the entity by its subsidiary.
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
67
63
-
-
Administrative
7
11
1
1
Total
74
74
1
1
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
6
Employees
(Continued)
- 23 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,269,764
3,187,513
Social security costs
366,575
347,332
-
-
Pension costs
79,756
65,068
3,716,095
3,599,913
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
10,905
42,418
Company pension contributions to defined contribution schemes
15,600
15,600
26,505
58,018
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
83,580
121,818
Interest on finance leases and hire purchase contracts
93,775
91,109
Other interest
5,416
9,012
Total finance costs
182,771
221,939
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
73,580
124,466
Adjustments in respect of prior periods
(3,077)
Total current tax
73,580
121,389
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
9
Taxation
2024
2023
£
£
(Continued)
- 24 -
Deferred tax
Origination and reversal of timing differences
221,892
17,557
Changes in tax rates
1,964
Adjustment in respect of prior periods
(301)
Total deferred tax
221,892
19,220
Total tax charge
295,472
140,609
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
825,391
365,832
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.48%)
206,348
82,239
Tax effect of expenses that are not deductible in determining taxable profit
43,050
24,983
Tax effect of income not taxable in determining taxable profit
(23,276)
Unutilised tax losses carried forward
14,950
Adjustments in respect of prior years
(3,378)
Effect of change in corporation tax rate
-
3,662
Amortisation on assets not qualifying for tax allowances
46,074
41,429
Taxation charge
295,472
140,609
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
85,000
42,500
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 25 -
11
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 November 2023
1,842,971
6,890
1,849,861
Disposals
(6,890)
(6,890)
At 31 October 2024
1,842,971
1,842,971
Amortisation and impairment
At 1 November 2023
568,243
4,124
572,367
Amortisation charged for the year
184,296
2,766
187,062
Disposals
(6,890)
(6,890)
At 31 October 2024
752,539
752,539
Carrying amount
At 31 October 2024
1,090,432
1,090,432
At 31 October 2023
1,274,728
2,766
1,277,494
The company had no intangible fixed assets at 31 October 2024 or 31 October 2023.
12
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 November 2023
2,800,381
59,719
2,202,522
5,062,622
Additions
1,176,741
7,746
579,377
1,763,864
Disposals
(486,649)
(4,633)
(491,282)
At 31 October 2024
3,490,473
62,832
2,781,899
6,335,204
Depreciation and impairment
At 1 November 2023
125,003
32,255
872,033
1,029,291
Depreciation charged in the year
412,994
10,539
409,615
833,148
Eliminated in respect of disposals
(288,645)
(493)
(289,138)
At 31 October 2024
249,352
42,301
1,281,648
1,573,301
Carrying amount
At 31 October 2024
3,241,121
20,531
1,500,251
4,761,903
At 31 October 2023
2,675,378
27,464
1,330,489
4,033,331
The company had no tangible fixed assets at 31 October 2024 or 31 October 2023.
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
12
Tangible fixed assets
(Continued)
- 26 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
1,775,709
1,604,272
Motor vehicles
914,349
1,006,027
2,690,058
2,610,299
-
-
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
13,070,294
13,070,294
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2023 and 31 October 2024
13,070,294
Carrying amount
At 31 October 2024
13,070,294
At 31 October 2023
13,070,294
14
Subsidiaries
Details of the company's subsidiaries at 31 October 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
J Hopkins (Contractors) Holdings Limited
England and Wales
Ordinary
100.00
-
J Hopkins (Contractors) Limited
England and Wales
Ordinary
0
100.00
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 27 -
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
253,932
201,248
-
-
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,359,176
3,115,121
Gross amounts owed by contract customers
3,000,126
3,357,349
Corporation tax recoverable
187,107
Other debtors
1,367,587
751,179
Prepayments and accrued income
258,482
260,274
6,985,371
7,671,030
-
-
Amounts falling due after more than one year:
Other debtors
417,568
474,722
Total debtors
7,402,939
8,145,752
-
-
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Debenture loans
19
379,900
379,900
379,900
379,900
Bank loans
19
250,000
Obligations under finance leases
20
807,722
689,400
Debt factoring balances
19
901,836
751,706
Trade creditors
5,056,938
4,749,081
Amounts owed to group undertakings
10,459,037
10,079,137
Corporation tax payable
73,580
121,389
Other taxation and social security
630,740
768,939
-
-
Other creditors
21,563
271,812
Accruals and deferred income
734,241
822,637
8,606,520
8,804,864
10,838,937
10,459,037
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 28 -
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Debenture loans
19
1,899,500
2,279,400
1,899,500
2,279,400
Bank loans and overdrafts
19
69,167
Obligations under finance leases
20
1,136,923
1,141,676
3,036,423
3,490,243
1,899,500
2,279,400
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Debenture loans
2,279,400
2,659,300
2,279,400
2,659,300
Bank loans
319,167
Debt factoring balances
901,836
751,706
3,181,236
3,730,173
2,279,400
2,659,300
Payable within one year
1,281,736
1,381,606
379,900
379,900
Payable after one year
1,899,500
2,348,567
1,899,500
2,279,400
Debt factoring balances are secured against debtors.
Included within borrowings is a loan debenture. The loan accrues interest a rate of 2.0% over the Bank of England base rate for overdue payments and is payable by annual instalments. The final repayment is scheduled for October 2030.
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
807,722
689,400
In two to five years
1,136,923
1,141,676
1,944,645
1,831,076
-
-
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 29 -
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
1,120,707
898,027
Effect of changes in tax rate
(3,674)
(2,886)
1,117,033
895,141
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 November 2023
895,141
-
Charge to profit or loss
221,892
-
Liability at 31 October 2024
1,117,033
-
As at the signing date of these financial statements, the company has not finalised its capital expenditure programme for the forthcoming year and therefore an assessment as to the likely movement of other related timing differences cannot be made.
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
79,756
65,068
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
The company has 2 Ordinary shares with a par value of £1 per share. The shares carry the same voting, dividend and capital distribution rights.
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 30 -
24
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
229,167
244,683
-
-
Between two and five years
-
229,167
-
-
229,167
473,850
-
-
25
Capital commitments
Amounts contracted for but not provided in the financial statements:
Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
4,728,000
804,618
-
-
26
Related party transactions
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
19,514
-
This balance relates to an entity under common control. In addition, during the year income and expenditure of this entity was received / incurred by the group, and then recharged onto this related party. No income or expenditure have been recognised in these accounts from this related party, but income of £163,891 was received and then recharged, and expenditure of £161,151 was incurred and then recharged.
Other information
The company has taken advantage of the exemption permitted under Section 33 'Related Party Disclosures' paragraph 33.1A from disclosing transactions with the parent and fellow subsidiary companies.
JHC ACQUISITIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 31 -
27
Directors' transactions
The directors loan account was overdrawn at the year end. No interest has been charged on the loan.
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors' loan account
-
70,050
83,165
(139,550)
13,665
70,050
83,165
(139,550)
13,665
28
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
529,919
225,223
Adjustments for:
Taxation charged
295,472
140,609
Finance costs
182,771
221,939
Investment income
(21,279)
(3,862)
Loss/(gain) on disposal of tangible fixed assets
24,284
(58,257)
Amortisation and impairment of intangible assets
187,062
194,441
Depreciation and impairment of tangible fixed assets
833,148
856,830
Movements in working capital:
(Increase)/decrease in stocks
(52,684)
12,256
Decrease/(increase) in debtors
499,321
(384,266)
(Decrease)/increase in creditors
(168,987)
1,825,911
Cash generated from operations
2,309,027
3,030,824
29
Analysis of changes in net debt - group
1 November 2023
Cash flows
New finance leases
31 October 2024
£
£
£
£
Cash at bank and in hand
1,232,693
163,266
-
1,395,959
Borrowings excluding overdrafts
(3,730,173)
548,937
-
(3,181,236)
Obligations under finance leases
(1,831,076)
535,821
(649,390)
(1,944,645)
(4,328,556)
1,248,024
(649,390)
(3,729,922)
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