Company registration number 07931973 (England and Wales)
WJ South West Limited
Annual report and financial statements
For the period ended 31 March 2025
WJ South West Limited
Company information
Directors
Mr W D Johnston
Mr M Webb
Mr T J Trevelyan
Mr N Johnson
(Appointed 21 November 2024)
Company number
07931973
Registered office
Tremayne House
Westpark
Chelston
Wellington
Somerset
TA21 9AD
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
WJ South West Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10 - 11
Statement of changes in equity
12
Notes to the financial statements
13 - 26
WJ South West Limited
Strategic report
For the period ended 31 March 2025
- 1 -
The directors present the strategic report for the period ended 31 March 2025.
INTRODUCTION
WJ South West Limited ("the company") was incorporated in 2012 and is a trading subsidiary of WJ (Group)
The company is part of the WJ Group, the UK’s leading road marking and highway safety business. It delivers high-performance, award-winning solutions to the strategic road network, local authority and private markets. WJ creates safe, sustainable journeys for everyone.
The company provides temporary and permanent road and off highways markings using a wide range of applications and products. We install road studs, both reflective and active (solar). We provide a range of safety related surface treatments, including retexturing, high friction surfacing and pothole repair systems. Our retexturing fleet is the largest in the UK and we have a high friction surface product that is widely used across the strategic road network.
The company supports highways authorities managing their road marking assets by surveying and digitising their road marking networks and then providing consultancy services to help them prioritise appropriate treatments.
The company has a Verified Science Based Target to deliver against the Paris Agreement by 2042, based on lowering embodied carbon in our materials to zero, switching to zero emission vehicles as technology allows and off-setting carbon through the planting of a forest.
The company’s transformation into a data driven business, with THI’s support and investment, is continuing following the go live of the second phase of group wide ERP system in March 2024.
Our employees are our most valuable asset and WJ Group provides a supportive, developmental, and inclusive work environment. This period we launched inclusive talent acquisition initiatives, such as the Forces Covenant Agreement and Disability Confident Employer. We strengthened ties with educational institutions and continued leadership development to ensure a sustainable high performing team for the future.
Safety is core to WJ. Our ‘Safer Together’ Strategy, launched in 2025, strives to achieve zero accidents by creating an environment where every employee is empowered to take ownership of their health and safety and that of those around them. The ‘Safer Together’ Strategy focusses on Health and Safety (H&S) priorities across the WJ Group for the next five years ensuring we deliver our works through safe people, safe places and safe processes supported by a culture that acts safely, without compromise.
SOCIAL VALUE INDICATORS
Community is a WJ Core Value. Social Value is tracked by WJ Group using the National TOMs Framework. We track our performance against the Themes, Outcomes and Measures (TOMs) described in the system. These are: Work, the employment opportunities we provide; Economy, where we spend and how that delivers inclusive growth; Community, how we deliver for the communities where we live and work; Planet, that is environmental stewardship and our contribution to this locally and nationally. The numbers generated are then verified by Planet Mark on behalf of Social Value Portal.
WJ South West Limited
Strategic report (continued)
For the period ended 31 March 2025
- 2 -
REVIEW OF BUSINESS
We aim to present a balanced and comprehensive review of the development and performance of our business during the period and its position at the period end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.
The financial statements presented are for a period of 14 months rather than 12 months in order to align the period end more appropriately with internal business processes and external customers fiscal years. The comparative amounts presented in the financial statements (including the related notes) are not entirely comparable as a result.
Turnover for the 14 month period is £20,805,262 and we have achieved a 30.1% gross profit margin on this. Not withstanding the 14 month period vs the prior period of 12 months, turnover increased by over 42% due to a combination of ongoing growth from volume and pricing and expansion into adjacent markets.
The company maintained its focus on working capital management with particular focus on inventory management and debt control.
During the period 1 February 2024 – 31 March 2025 the company has invested £160,744 in capital expenditure reflecting an ongoing strategy of maintaining the most modern and technologically advanced plant and machinery, fleet and IT systems in our sector in order to ensure maximum self-delivery and unparalleled customer service. The company invested significantly in IT to allow it to launch a new ERP system which will be key to providing consistent data and driving greater efficiency and operational improvements. Investment decisions are subject to capital appraisal reviews in line with this vision and taking into account the company’s resources and innovation strategy.
Total net assets at the end of the period increased from £7,877,656 to £9,922,911 reflecting the retained profit in the period.
PRINCIPAL RISKS AND UNCERTAINTIES
Government Spending Decisions – the Company recognises that the majority of its income derives from government sources and it plays an active role, through a number of trade bodies and associations, in promoting and developing the safety, effectiveness and sustainability of its products and services in line with evolving Department of Transport and Local Authorities priorities. We believe that Government investment in the UK road infrastructure will be maintained.
Competition – the Company differentiates itself from the competition by continued efforts in R&D and Innovation and a strategy of delivering safer and more sustainable products and services. The wider Group has made strategic investments to develop the UK largest nationwide network and has diversified into adjacent markets and geographies to enable it to stay ahead of the evolving competitor base.
Materials Supply – the Company has developed an internal supply chain for the bulk of the products it uses and has developed strong partnerships in areas where internal production is not possible. The Company works closely with its raw materials supply chains and utilises group buying power to ensure that availability of product is robust and that pricing is sustainable.
Fuel and Energy Prices – the Company is not immune to the impact of rising fuel and energy prices but the effect is mitigated through the maintenance and upgrading of a modern fleet of fuel efficient vehicles and an industry leading driver awareness training programme and incentivisation scheme which leads to improved fuel consumption and a reduction in the Company’s carbon footprint. The Company is registered under the Energy Savings Opportunity Scheme (ESOS) and is committed to reducing energy consumption to both combat price fluctuations but also reinforce our commitment to reducing our carbon footprint.
WJ South West Limited
Strategic report (continued)
For the period ended 31 March 2025
- 3 -
FINANCIAL INSTRUMENT RISK
Credit Risk – the Company has a broad range of customers including both private companies and public sector bodies. The risk that the Company will suffer from significant levels of bad debt is managed by the diversified customer portfolio and the well established credit control procedures operated across the Company.
Cash Flow Risk – the Company is funded through a combination of Hire Purchase funding and access to funds in the wider Group through a Term Loan, a Revolving Credit Facility and an Acquisition Facility.
Liquidity Risk – the Company is able to meet short and medium term obligations from operational cash generation and in addition has access to in excess of £14m of undrawn committed facilities through the wider Group.
KEY PERFORMANCE INDICATORS
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross profit margin and operating profit margin. The success of the company will be reflected in the balance sheet net assets and company liquidity.
14 months ended Year ended
31 March 2025 31 January 2024
Turnover 20,805,262 14,600,057
Gross Profit Margin 30.1% 25.6%
Operating Profit Margin
before exceptional items 9.7% 2.1%
Explanation of the key performance indicators detailed above can be found in the review of business section of this report.
Mr N Johnson
Director
7 August 2025
WJ South West Limited
Directors' report
For the period ended 31 March 2025
- 4 -
The directors present their annual report and financial statements for the period ended 31 March 2025.
Principal activities
The principal activities of the company in the period are providing temporary and permanent road and off highways markings, using a wide range of applications and products. They also provide a range of safety related surface treatments, including retexturing, high friction surfacing and pothole repair systems.
Results and dividends
The results for the period are set out on page 9 onwards.
No ordinary dividends were paid (2024 - £Nil). The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr W D Johnston
Mr M Webb
Mr G M Andrews
(Resigned 23 October 2024)
Mr T J Trevelyan
Mr N Johnson
(Appointed 21 November 2024)
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial period. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
WJ South West Limited
Directors' report (continued)
For the period ended 31 March 2025
- 5 -
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.
Forward-looking statements
Where the financial statements contains forward-looking statements, these are based on current expectations and assumptions and are subject to risk factors and uncertainties which the Directors believe are reasonable. Accordingly, the Company's actual future results may differ materially from the results expressed or implied in these forward-looking statements. We do not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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 Johnson
Director
7 August 2025
WJ South West Limited
Independent auditor's report
To the members of WJ South West Limited
- 6 -
Opinion
We have audited the financial statements of WJ South West Limited (the 'company') for the period ended 31 March 2025 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
WJ South West Limited
Independent auditor's report (continued)
To the members of WJ South West Limited
- 7 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
WJ South West Limited
Independent auditor's report (continued)
To the members of WJ South West Limited
- 8 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
Gary Chadwick FCCA
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
7 August 2025
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
WJ South West Limited
Statement of comprehensive income
For the period ended 31 March 2025
- 9 -
14 months
12 months
ending
ending
31 March
31 January
2025
2024
Notes
£
£
Turnover
20,805,262
14,600,057
Cost of sales
(14,533,704)
(10,851,470)
Gross profit
6,271,558
3,748,587
Administrative expenses
(4,239,188)
(3,512,768)
Other operating income
74,351
Operating profit
3
2,032,370
310,170
Interest receivable and similar income
5
413,099
Interest payable and similar expenses
6
(39,813)
(39,994)
Other gains and losses
7
(100)
-
Profit before taxation
1,992,457
683,275
Tax on profit
8
52,798
55,359
Profit for the financial period
2,045,255
738,634
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
WJ South West Limited
Statement of financial position
As at 31 March 2025
31 March 2025
- 10 -
31 March 2025
31 January 2024
Notes
£
£
£
£
Fixed assets
Goodwill
9
99,666
210,782
Tangible assets
10
2,088,574
2,741,695
Investments
11
100
2,188,240
2,952,577
Current assets
Stocks
12
537,485
591,339
Debtors falling due after more than one year
13
5,799,274
3,987,528
Debtors falling due within one year
13
3,853,545
1,898,555
Cash at bank and in hand
1,059,268
818,567
11,249,572
7,295,989
Creditors: amounts falling due within one year
14
(3,032,599)
(1,708,284)
Net current assets
8,216,973
5,587,705
Total assets less current liabilities
10,405,213
8,540,282
Creditors: amounts falling due after more than one year
15
(275,985)
(403,511)
Provisions for liabilities
Deferred tax liability
17
206,317
259,115
(206,317)
(259,115)
Net assets
9,922,911
7,877,656
Capital and reserves
Called up share capital
19
200
200
Share premium account
20
187,900
187,900
Profit and loss reserves
21
9,734,811
7,689,556
Total equity
9,922,911
7,877,656
WJ South West Limited
Statement of financial position (continued)
As at 31 March 2025
31 March 2025
- 11 -
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 7 August 2025 and are signed on its behalf by:
Mr N Johnson
Director
Company registration number 07931973 (England and Wales)
WJ South West Limited
Statement of changes in equity
For the period ended 31 March 2025
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 February 2023
200
187,900
6,950,922
7,139,022
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
738,634
738,634
Balance at 31 January 2024
200
187,900
7,689,556
7,877,656
Period ended 31 March 2025:
Profit and total comprehensive income
-
-
2,045,255
2,045,255
Balance at 31 March 2025
200
187,900
9,734,811
9,922,911
WJ South West Limited
Notes to the financial statements
For the period ended 31 March 2025
- 13 -
1
Accounting policies
Company information
WJ South West Limited is a private company limited by shares incorporated in England and Wales. The registered office is Tremayne House, Westpark, Chelston, Wellington, Somerset, TA21 9AD.
Basis of preparation
The financial statements are prepared on a going concern basis, under the historical cost convention.
The preparation of financial statements in conformity with FRS102 requires the use of certain accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies.
1.1
Reporting period
The financial statements presented are for a period of 14 months rather than 12 months in order to align the period end more appropriately with internal business processes and external customers fiscal years. The comparative amounts presented in the financial statements (including the related notes) are not entirely comparable as a result.
1.2
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.
This 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
This information is included in the consolidated financial statements of WJ Group Holdings Limited as at 31 March 2025 and these financial statements may be obtained from Unit 7 Brock Way, Newcastle under Lyme, Staffordshire, United Kingdom, ST5 6AZ.
Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with other group entities where the relationship is one of being wholly owned.
1.3
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
WJ South West Limited
Notes to the financial statements (continued)
For the period ended 31 March 2025
1
Accounting policies
(Continued)
- 14 -
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.5
Intangible fixed assets - goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2012, was amortised evenly over its estimated useful life of seven years. This goodwill is fully amortised.
The goodwill arising on hive-ups of trade in 2020 and 2023 are being amortised over their estimated useful lives of five years.
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% on cost
Plant and equipment
10% on cost
Fixtures and fittings
20% on cost
Motor vehicles
6.67% to 33.33% on cost
On 1 March 2024, the group changed depreciation rates to those noted above. The depreciation rates listed below are those used in the prior period:
Leasehold improvements In accordance with the lease or 20% straight line
Plant and equipment 25% on a reducing balance basis
Fixtures and fittings 20% on a reducing balance basis
Motor vehicles 25% & 35% on a reducing balance basis
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 income statement.
1.7
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
WJ South West Limited
Notes to the financial statements (continued)
For the period ended 31 March 2025
1
Accounting policies
(Continued)
- 15 -
1.8
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).
Recoverable amount is the higher of fair value less costs to sell and value in use.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.
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 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 in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
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, cash and bank balances, loans from group companies 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.
WJ South West Limited
Notes to the financial statements (continued)
For the period ended 31 March 2025
1
Accounting policies
(Continued)
- 16 -
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 and loans to 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 company’s contractual obligations expire or are discharged or cancelled.
1.12
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.
WJ South West Limited
Notes to the financial statements (continued)
For the period ended 31 March 2025
1
Accounting policies
(Continued)
- 17 -
1.13
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 period. Taxable profit differs from net profit as reported in the income statement 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 income statement, 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.
1.14
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 only recognised as an accrual at the end of each statutory period.
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.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
WJ South West Limited
Notes to the financial statements (continued)
For the period ended 31 March 2025
1
Accounting policies
(Continued)
- 18 -
1.16
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 statement of financial position 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 leases asset are consumed.
As lessor
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.17
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.
1.18
Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost less any provision for impairment.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
In the directors' opinion there are no critical judgements that they have made in applying the company's accounting policies and that have had a significant effect on the amounts recognised in the financial statements.
Key sources of estimation uncertainty
The directors do not consider there to be any key estimates or assumptions used in preparing the financial statements.
WJ South West Limited
Notes to the financial statements (continued)
For the period ended 31 March 2025
- 19 -
3
Operating profit
2025
2024
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange losses
115
Fees payable to the company's auditor for the audit of the company's financial statements
21,600
20,600
Depreciation of owned tangible fixed assets
608,084
571,953
Depreciation of tangible fixed assets held under finance leases
65,431
322,111
Profit on disposal of tangible fixed assets
(5,340)
(16,400)
Amortisation of intangible assets
111,116
130,794
Operating lease charges
281,736
225,588
4
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2025
2024
Number
Number
Production
73
72
Administration
24
21
Total
97
93
Their aggregate remuneration comprised:
2025
2024
£
£
Wages and salaries
5,132,017
3,885,033
Social security costs
518,678
415,482
Pension costs
129,331
100,366
5,780,026
4,400,881
5
Interest receivable and similar income
2025
2024
£
£
Interest income
Interest receivable from group companies
99,688
Income from fixed asset investments
Income from shares in group undertakings
313,411
Total income
413,099
WJ South West Limited
Notes to the financial statements (continued)
For the period ended 31 March 2025
- 20 -
6
Interest payable and similar expenses
2025
2024
£
£
Interest on bank overdrafts and loans
-
13
Interest on finance leases and hire purchase contracts
39,813
39,981
39,813
39,994
7
Other gains and losses
2025
2024
£
£
Loss on disposal of investments held at fair value
(100)
-
8
Taxation
2025
2024
£
£
Deferred tax
Origination and reversal of timing differences
(52,798)
(55,359)
The actual credit for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
2025
2024
£
£
Profit before taxation
1,992,457
683,275
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 24.03%)
498,114
164,191
Tax effect of expenses that are not deductible in determining taxable profit
22,166
20,137
Effect of change in corporation tax rate
(2,148)
Group relief
(600,942)
(264,128)
Depreciation on assets not qualifying for tax allowances
60
8
Amortisation on assets not qualifying for tax allowances
27,779
31,430
Dividend income
(75,313)
Impairment of investment
70,464
Loss on disposal of investments
25
Taxation credit for the period
(52,798)
(55,359)
WJ South West Limited
Notes to the financial statements (continued)
For the period ended 31 March 2025
- 21 -
9
Intangible fixed assets
Goodwill
£
Cost
At 1 February 2024 and 31 March 2025
4,473,975
Amortisation and impairment
At 1 February 2024
4,263,193
Amortisation charged for the period
111,116
At 31 March 2025
4,374,309
Carrying amount
At 31 March 2025
99,666
At 31 January 2024
210,782
10
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2024
81,305
510,483
181,024
7,229,236
8,002,048
Additions
12,950
147,794
160,744
Disposals
(428,121)
(428,121)
Transfer
(87,763)
87,763
At 31 March 2025
81,305
435,670
181,024
7,036,672
7,734,671
Depreciation and impairment
At 1 February 2024
63,619
256,523
102,692
4,837,519
5,260,353
Depreciation charged in the period
4,859
45,957
39,774
582,925
673,515
Eliminated in respect of disposals
(287,771)
(287,771)
Transfer
(38,178)
38,178
At 31 March 2025
68,478
264,302
142,466
5,170,851
5,646,097
Carrying amount
At 31 March 2025
12,827
171,368
38,558
1,865,821
2,088,574
At 31 January 2024
17,686
253,960
78,332
2,391,717
2,741,695
WJ South West Limited
Notes to the financial statements (continued)
For the period ended 31 March 2025
10
Tangible fixed assets
(Continued)
- 22 -
Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:
2025
2024
£
£
Motor vehicles
291,818
892,913
11
Fixed asset investments
2025
2024
£
£
Investments in subsidiaries
100
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 February 2024
100
Disposals
(100)
At 31 March 2025
-
Carrying amount
At 31 March 2025
-
At 31 January 2024
100
12
Stocks
2025
2024
£
£
Raw materials and consumables
537,485
591,339
WJ South West Limited
Notes to the financial statements (continued)
For the period ended 31 March 2025
- 23 -
13
Debtors
2025
2024
Amounts falling due within one year:
£
£
Trade debtors
2,324,722
866,203
Corporation tax recoverable
631,258
556,681
Amounts owed by group undertakings
285,531
57,118
Other debtors
4,769
33,378
Prepayments and accrued income
607,265
385,175
3,853,545
1,898,555
2025
2024
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
5,799,274
3,987,528
Total debtors
9,652,819
5,886,083
Amounts owed by group undertakings due after more than one year are due between 1 and 2 years. The amounts are unsecured and interest free (2024 - interest receivable at 2.5%).
14
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Obligations under finance leases
16
109,960
312,775
Trade creditors
792,593
404,338
Amounts owed to group undertakings
932,976
400,356
Taxation and social security
223,227
88,231
Other creditors
196,459
59,685
Accruals and deferred income
777,384
442,899
3,032,599
1,708,284
15
Creditors: amounts falling due after more than one year
2025
2024
Notes
£
£
Obligations under finance leases
16
275,985
403,511
WJ South West Limited
Notes to the financial statements (continued)
For the period ended 31 March 2025
- 24 -
16
Finance lease obligations
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
109,960
312,775
In two to five years
275,985
403,511
385,945
716,286
Finance lease payments represent rentals payable by the company for certain items of motor vehicles. 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 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Obligations under finance lease and hire purchase contracts are secured on the assets acquired.
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
206,317
259,115
2025
Movements in the period:
£
Liability at 1 February 2024
259,115
Credit to profit or loss
(52,798)
Liability at 31 March 2025
206,317
The deferred tax liability set out above relates to accelerated capital allowances.
18
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
129,331
100,366
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.
Contributions totalling £24,002 (2024 - £21,153) were payable to the fund at the balance sheet date and are included in creditors.
WJ South West Limited
Notes to the financial statements (continued)
For the period ended 31 March 2025
- 25 -
19
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
100
100
100
100
Ordinary B of £1 each
100
100
100
100
200
200
200
200
All Ordinary shares rank pari passu in all respects. There are no restrictions on the distribution of dividends and the repayment of capital.
20
Share premium account
The share premium represents the amount paid in excess of the nominal value of the Ordinary B shares. This is not a distributable reserve.
21
Profit and loss reserves
Profit and loss reserves represent the accumulated profits less accumulated losses and distributions up to the reporting date. This is a distributable reserve.
22
Financial commitments, guarantees and contingent liabilities
At the balance sheet date, the company had guaranteed borrowings of a parent company, all charges being managed by a security agent. At 31 March 2025 these borrowings amounted to £63,281,847 (2024 - £59,555,121). As at the date of approval of these financial statements, the directors do not anticipate that the guarantees will be called upon.
23
Operating lease commitments
As 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:
2025
2024
£
£
Within 1 year
212,409
218,071
Years 2-5
539,330
650,432
After 5 years
135,000
751,739
1,003,503
As lessor - operating leases
Minimum lease payments due to the company from non-cancellable operating leases are as follows:
Contingent rents recognised as income in the period amount to £30,980 (2024 - £74,351).
WJ South West Limited
Notes to the financial statements (continued)
For the period ended 31 March 2025
23
Operating lease commitments
(Continued)
- 26 -
2025
2024
Future amounts receivable under operating leases:
£
£
Within 1 year
30,980
24
Related party transactions
Transactions with other related parties
During the period, the company rented a property from an entity in which some of the directors were the primary beneficiaries. The rent charged during the period was £157,750 (2024 - £137,750). At the period end, the balance owing to the entity was £nil (2024 - £40,500).
25
Ultimate controlling party
The immediate parent company is WJ (Group) Limited which owns 100% of the ordinary share capital. WJ (Group) Limited is incorporated in England and the registered office is Unit 7 Brock Way, Newcastle under Lyme, Staffordshire, ST5 6AZ.
The ultimate controlling party is the THI Holdings GmbH. a company registered in Germany. THI Holdings GmbH is controlled by the Hagenmeyer family.
The smallest group into which the entity is consolidated is WJ Group Holdings Limited. WJ Group Holdings Limited is incorporated in England. Copies of the group financial statements of WJ Group Holdings Limited are available from Unit 7 Brock Way, Newcastle under Lyme, Staffordshire, United Kingdom, ST5 6AZ.
The largest group into which the entity is consolidated is THI Holdings GmbH, a company registered in Germany. Copies of the group financial statements of THI Holdings GmbH are available from THI Investments, Eberhardstraße 65, 70173 Stuttgart, Germany
2025-03-312024-02-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.200Mr W D JohnstonMr M WebbMr G M AndrewsMr T J TrevelyanMr N Johnson2025-08-07079319732024-02-012025-03-3107931973bus:Director12024-02-012025-03-3107931973bus:Director22024-02-012025-03-3107931973bus:Director42024-02-012025-03-3107931973bus:Director52024-02-012025-03-3107931973bus:Director32024-02-012025-03-3107931973bus:RegisteredOffice2024-02-012025-03-31079319732025-03-31079319732023-02-012024-01-3107931973core:RetainedEarningsAccumulatedLosses2023-02-012024-01-3107931973core:RetainedEarningsAccumulatedLosses2024-02-012025-03-3107931973core:Goodwill2025-03-3107931973core:Goodwill2024-01-31079319732024-01-3107931973core:LeaseholdImprovements2025-03-3107931973core:PlantMachinery2025-03-3107931973core:FurnitureFittings2025-03-3107931973core:MotorVehicles2025-03-3107931973core:LeaseholdImprovements2024-01-3107931973core:PlantMachinery2024-01-3107931973core:FurnitureFittings2024-01-3107931973core:MotorVehicles2024-01-3107931973core:Non-currentFinancialInstrumentscore:AfterOneYear2025-03-3107931973core:Non-currentFinancialInstrumentscore:AfterOneYear2024-01-3107931973core:ShareCapital2025-03-3107931973core:ShareCapital2024-01-3107931973core:SharePremium2025-03-3107931973core:SharePremium2024-01-3107931973core:RetainedEarningsAccumulatedLosses2025-03-3107931973core:RetainedEarningsAccumulatedLosses2024-01-3107931973core:ShareCapital2023-01-3107931973core:SharePremium2023-01-3107931973core:RetainedEarningsAccumulatedLosses2023-01-3107931973core:ShareCapitalOrdinaryShareClass12025-03-3107931973core:ShareCapitalOrdinaryShareClass12024-01-3107931973core:ShareCapitalOrdinaryShareClass22025-03-3107931973core:ShareCapitalOrdinaryShareClass22024-01-3107931973core:ShareCapitalOrdinaryShares2025-03-3107931973core:ShareCapitalOrdinaryShares2024-01-3107931973core:Goodwill2024-02-012025-03-3107931973core:LeaseholdImprovements2024-02-012025-03-3107931973core:PlantMachinery2024-02-012025-03-3107931973core:FurnitureFittings2024-02-012025-03-3107931973core:MotorVehicles2024-02-012025-03-3107931973core:UKTax2024-02-012025-03-3107931973core:UKTax2023-02-012024-01-310793197312024-02-012025-03-310793197312023-02-012024-01-310793197322024-02-012025-03-310793197322023-02-012024-01-310793197332024-02-012025-03-310793197332023-02-012024-01-310793197342024-02-012025-03-310793197342023-02-012024-01-3107931973core:Goodwill2024-01-3107931973core:LeaseholdImprovements2024-01-3107931973core:PlantMachinery2024-01-3107931973core:FurnitureFittings2024-01-3107931973core:MotorVehicles2024-01-31079319732024-01-3107931973core:Non-currentFinancialInstruments2025-03-3107931973core:Non-currentFinancialInstruments2024-01-3107931973core:CurrentFinancialInstruments2025-03-3107931973core:CurrentFinancialInstruments2024-01-3107931973core:AfterOneYear2025-03-3107931973core:AfterOneYear2024-01-3107931973core:WithinOneYear2025-03-3107931973core:WithinOneYear2024-01-3107931973core:BetweenTwoFiveYears2025-03-3107931973core:BetweenTwoFiveYears2024-01-3107931973bus:OrdinaryShareClass12024-02-012025-03-3107931973bus:OrdinaryShareClass22024-02-012025-03-3107931973bus:OrdinaryShareClass12025-03-3107931973bus:OrdinaryShareClass12024-01-3107931973bus:OrdinaryShareClass22025-03-3107931973bus:OrdinaryShareClass22024-01-3107931973bus:AllOrdinaryShares2025-03-3107931973bus:AllOrdinaryShares2024-01-3107931973core:MoreThanFiveYears2025-03-3107931973bus:PrivateLimitedCompanyLtd2024-02-012025-03-3107931973bus:FRS1022024-02-012025-03-3107931973bus:Audited2024-02-012025-03-3107931973bus:FullAccounts2024-02-012025-03-31xbrli:purexbrli:sharesiso4217:GBP