Company registration number 05344654 (England and Wales)
J & K CONFECTIONERY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
J & K CONFECTIONERY LIMITED
COMPANY INFORMATION
Directors
Mr J W Derbyshire
Mrs K Derbyshire
Secretary
Mrs K Derbyshire
Company number
05344654
Registered office
2A Maple Court
Whitemoss Business Park
Skelmersdale
WN8 9TW
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
J & K CONFECTIONERY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
J & K CONFECTIONERY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

 

Business environment

 

J&K Confectionery are a family run business who sources chocolate, confectionery and biscuit products from suppliers in the UK and overseas. They then supply major retailers and coffee shops with customer own branded products.

 

Review of current year performance

 

The Company had a pleasing increase in turnover of 16%, taking this to over £40m in 2024. This was due to extra product lines with the current customers, and development of an additional new customer. Turnover increased by £5.4 million and profit before tax increased by £1.1m.

 

To thank the J&K team for all their hard work to achieve this result the directors took the decision to reward them with a higher than usual bonus. Both increases show a great confidence in the company’s operation with a very strong operating team. Also showing a very positive view for the years ahead.

 

Principle risks and activities

 

The company continues its efforts to reduce plastic and help the environment in operating a very close connection with both customers and suppliers to reduce the waste of packaging and increase the efficiencies of itself and its suppliers.

 

To manage the increasingly demanding technical environment a new role was introduced to the team, with a renewed energy around process improvement and best in class product launches. We also invested in a digital supplier management tool to streamline our governance processes.

 

The company has taken steps with it’s customers to cover the effect of the UK inflation via trading agreements with both suppliers and customers and negotiating future terms with our distribution partners along with concentration of overhead controls.

 

Future outlook

 

The company feels that the innovative side of the business is very important to its long term development and growth and therefore continue to actively monitor trends to keep up with market demands enabling us to identify new risks or create new opportunities. The company always looks at utilizing its skills in new product areas and has global access to manufacturing partners and continues to use this to expand its product and customer portfolio.

 

The company is a major strategic European partner for its major customers. It has a rolling plan to develop and grow the categories that it is involved in and also a brief to develop new categories for these customers. The company sees the strategic planning as a partnership with its customers as they work together on new and exciting plans.

 

The company has an agreed team development plan, which includes a continuous improvement plan through training, as well as introducing new skills to the business. The team is important if the company is going to provide the necessary technical, supply chain, commercial, product packaging support that is needed for the strategic plan. The company is committed to developing its company ethos and continue its social approach to employment.

 

J & K CONFECTIONERY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

On behalf of the board

Mr J W Derbyshire
Director
20 July 2025
J & K CONFECTIONERY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The company sources confectionery and biscuit products from suppliers in the UK and overseas. They then supply major retailers with customer branded products.

Results and dividends

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

Ordinary dividends were paid amounting to £85,996. The directors do not recommend payment of a final dividend.

Directors

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

Mr J W Derbyshire
Mrs K Derbyshire
Auditor

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.

 

A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.

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 financial risk management and future developments.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

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

On behalf of the board
Mr J W Derbyshire
Director
20 July 2025
J & K CONFECTIONERY LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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

 

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

 

 

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

J & K CONFECTIONERY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J & K CONFECTIONERY LIMITED
- 5 -
Opinion

We have audited the financial statements of J & K Confectionery Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

 

We have nothing to report in this regard.

J & K CONFECTIONERY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J & K CONFECTIONERY LIMITED (CONTINUED)
- 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:

 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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:

Responsibilities of directors

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

Auditor 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:

J & K CONFECTIONERY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J & K CONFECTIONERY LIMITED (CONTINUED)
- 7 -

the year to check they have been recorded in the accounts and in the correct period.

 

Because of the field in which the client operates we identified that employment law, health and safety

legislation and compliance with the UK Companies Act are the areas most likely to have a material impact on the financial statements.

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

Use of our report

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

Virginia Cooper FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
21 July 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
J & K CONFECTIONERY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
40,174,888
34,751,342
Cost of sales
(36,364,420)
(31,786,666)
Gross profit
3,810,468
2,964,676
Administrative expenses
(1,962,262)
(2,245,322)
Operating profit
4
1,848,206
719,354
Interest payable and similar expenses
7
(184,079)
(140,173)
Profit before taxation
1,664,127
579,181
Tax on profit
8
(416,950)
(148,332)
Profit for the financial year
1,247,177
430,849

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

J & K CONFECTIONERY LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
7,917
102,917
Tangible assets
11
59,566
49,713
67,483
152,630
Current assets
Stocks
12
1,072,705
1,194,280
Debtors
13
10,445,481
6,943,021
Cash at bank and in hand
1,418,037
1,475,164
12,936,223
9,612,465
Creditors: amounts falling due within one year
14
(9,896,824)
(7,819,394)
Net current assets
3,039,399
1,793,071
Total assets less current liabilities
3,106,882
1,945,701
Provisions for liabilities
Provisions
16
420,000
420,000
(420,000)
(420,000)
Net assets
2,686,882
1,525,701
Capital and reserves
Called up share capital
19
100
100
Profit and loss reserves
2,686,782
1,525,601
Total equity
2,686,882
1,525,701

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

The financial statements were approved by the board of directors and authorised for issue on 20 July 2025 and are signed on its behalf by:
Mr J W Derbyshire
Director
Company registration number 05344654 (England and Wales)
J & K CONFECTIONERY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
100
1,147,752
1,147,852
Year ended 31 December 2023:
Profit and total comprehensive income
-
430,849
430,849
Dividends
9
-
(53,000)
(53,000)
Balance at 31 December 2023
100
1,525,601
1,525,701
Year ended 31 December 2024:
Profit and total comprehensive income
-
1,247,177
1,247,177
Dividends
9
-
(85,996)
(85,996)
Balance at 31 December 2024
100
2,686,782
2,686,882
J & K CONFECTIONERY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
377,291
1,569,701
Interest paid
(184,079)
(140,173)
Income taxes paid
(141,561)
(52,235)
Net cash inflow from operating activities
51,651
1,377,293
Investing activities
Purchase of tangible fixed assets
(30,227)
(9,843)
Receipts arising from loans made
7,445
(7,858)
Net cash used in investing activities
(22,782)
(17,701)
Financing activities
Dividends paid
(85,996)
(53,000)
Net cash used in financing activities
(85,996)
(53,000)
Net (decrease)/increase in cash and cash equivalents
(57,127)
1,306,592
Cash and cash equivalents at beginning of year
1,475,164
168,572
Cash and cash equivalents at end of year
1,418,037
1,475,164
J & K CONFECTIONERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

J & K Confectionery Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2A Maple Court, Whitemoss Business Park, Skelmersdale, WN8 9TW.

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.

1.2
Going concern

These financial statements are prepared on the going concern basis. The company have prepared forecasts for 2 years from 31 December 2024 and considering this the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. true

 

We continue to manage any increases in costs and reducing the effects of these through strong cost control and actively seeking better value from suppliers. Consequently, the directors are confident that the company will have sufficient funds to continue to meet its obligations as they fall due for a period of at least twelve months from the date of signing these financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually upon dispatch of the goods, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

J & K CONFECTIONERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of an unincorporated business over the fair value of net assets acquired. It was 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 systematic 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.

1.6
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 of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
10 years straight line
Fixtures and fittings
20% reducing balance
Computers
3 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

J & K CONFECTIONERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Stocks

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

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.9
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

J & K CONFECTIONERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

J & K CONFECTIONERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.11
Equity instruments

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

1.12
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from 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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

J & K CONFECTIONERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the date of the transaction. Monetary assets and liabilities that are denominated in foreign currencies are translated at the rate ruling at the date of the transaction. All translation differences are taken to the profit and loss.

2
Judgements and key sources of estimation uncertainty

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

 

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

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Goodwill

The Directors use their judgement to determine the extent to which goodwill has a value that will benefit the performance of the company over future periods.

To assist in making this judgement, the Directors undertake an assessment, at least annually, of the carrying value of the Group's capitalised goodwill. In the assessment undertaken as at 31 December 2024, value in use was derived from future cash flow projections

The projection period is, in the opinion of the Directors, an appropriate period over which to view the future results of the company's businesses for this purpose. Changes to the assumptions used in making these forecasts could significantly alter the Directors' assessment of the carrying value of goodwill.

Stock Valuations

Stock is stated at the lower of cost and net realisable value. The value of all stock as well as the provision for slow moving and obsolete stock can have significant influence on the stock valuation in the financial statements. Detailed reviews of the stock are carried out regularly.

J & K CONFECTIONERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
3
Turnover

Turnover is attributable to a single activity and geographical area.

 

 

4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(892,745)
(269,894)
Research and development costs
62,060
20,030
Fees payable to the company's auditor for the audit of the company's financial statements
18,677
19,197
Depreciation of owned tangible fixed assets
20,374
20,817
(Profit)/loss on disposal of tangible fixed assets
-
118
Amortisation of intangible assets
95,000
95,000
Operating lease charges
67,532
100,296
5
Employees

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

2024
2023
Number
Number
Technical and administration
21
20

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,882,580
1,606,895
Social security costs
227,096
216,980
Pension costs
111,010
100,555
2,220,686
1,924,430
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
202,570
180,000
J & K CONFECTIONERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Directors' remuneration
(Continued)
- 19 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
112,570
-

As total directors' remuneration was less than £200,000 in the prior year, no comparative disclosure is provided.

7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
392
76
Interest on invoice finance arrangements
183,687
140,097
184,079
140,173
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
414,487
141,561
Adjustments in respect of prior periods
-
0
9,543
Total current tax
414,487
151,104
Deferred tax
Origination and reversal of timing differences
2,463
(2,608)
Changes in tax rates
-
0
(164)
Total deferred tax
2,463
(2,772)
Total tax charge
416,950
148,332
J & K CONFECTIONERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Taxation
(Continued)
- 20 -

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

2024
2023
£
£
Profit before taxation
1,664,127
579,181
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
416,032
136,226
Tax effect of expenses that are not deductible in determining taxable profit
918
2,727
Adjustments in respect of prior years
-
0
9,543
Effect of change in corporation tax rate
-
0
(164)
Taxation charge for the year
416,950
148,332
9
Dividends
2024
2023
£
£
Interim paid
85,996
53,000
10
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
950,000
Amortisation and impairment
At 1 January 2024
847,083
Amortisation charged for the year
95,000
At 31 December 2024
942,083
Carrying amount
At 31 December 2024
7,917
At 31 December 2023
102,917
J & K CONFECTIONERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
11
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2024
101,267
75,674
99,114
276,055
Additions
-
0
20,382
9,845
30,227
Disposals
-
0
-
0
(2,249)
(2,249)
At 31 December 2024
101,267
96,056
106,710
304,033
Depreciation and impairment
At 1 January 2024
77,630
69,916
78,796
226,342
Depreciation charged in the year
4,727
3,169
12,478
20,374
Eliminated in respect of disposals
-
0
-
0
(2,249)
(2,249)
At 31 December 2024
82,357
73,085
89,025
244,467
Carrying amount
At 31 December 2024
18,910
22,971
17,685
59,566
At 31 December 2023
23,637
5,758
20,318
49,713
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,072,705
1,194,280
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
9,667,035
6,381,244
Corporation tax recoverable
155,679
14,118
Other debtors
402,485
409,930
Prepayments and accrued income
128,231
43,215
10,353,430
6,848,507
Deferred tax asset (note 17)
92,051
94,514
10,445,481
6,943,021
J & K CONFECTIONERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
6,307,590
4,832,068
Corporation tax
414,487
-
0
Other taxation and social security
2,084,555
1,981,943
Other creditors
6,993
20,686
Accruals and deferred income
1,083,199
984,697
9,896,824
7,819,394
15
Borrowings

The invoice financing debtor of £347 (2023: £9,448 creditor) is secured by a fixed and floating charge over all assets of the company.

16
Provisions for liabilities
2024
2023
£
£
Tax & NIC provision
420,000
420,000
Movements on provisions:
Tax & NIC provision
£
At 1 January 2024 and 31 December 2024
420,000

The above provision represents the estimated liability as at the year end date. It is currently uncertain as to when the potential obligation will be due to be paid.

17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2024
2023
Balances:
£
£
Fixed asset timing differences
(12,949)
(10,486)
Short term timing differences
105,000
105,000
92,051
94,514
J & K CONFECTIONERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
17
Deferred taxation
(Continued)
- 23 -
2024
Movements in the year:
£
Asset at 1 January 2024
(94,514)
Charge to profit or loss
2,463
Asset at 31 December 2024
(92,051)

It is not possible to quantify the amounts expected to reverse over the upcoming twelve months as the Company's capital expenditure expectations have not yet been finalised.

18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
111,010
100,555

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
20
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
60,611
76,761
Between two and five years
198,918
7,973
259,529
84,734
J & K CONFECTIONERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
21
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
937,692
859,723
Balances with related parties

 

Category
Amounts owed by
Amounts owed to
related parties
related parties
2024
2023
2024
2023
£
£
£
£
Entities over which the entity has control, joint control or significant influence
399,235
399,235
-
0
-
0
Key management personnel
3,250
10,695
-
0
-
0
22
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
1,475,164
(57,127)
1,418,037
23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,247,177
430,849
Adjustments for:
Taxation charged
416,950
148,332
Finance costs
184,079
140,173
(Gain)/loss on disposal of tangible fixed assets
-
118
Amortisation and impairment of intangible assets
95,000
95,000
Depreciation and impairment of tangible fixed assets
20,374
20,817
Movements in working capital:
Decrease/(increase) in stocks
121,575
(242,723)
Increase in debtors
(3,370,807)
(253,461)
Increase in creditors
1,662,943
1,230,596
Cash generated from operations
377,291
1,569,701
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