Company registration number: 03892692
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors present their Strategic Report for the year ended 31 December 2024.
The issues facing the logistics sector continue; margins are tight and there is a need to maintain an asset heavy structure including vehicles and moving equipment along with the physical facility to operate.
Loss after tax and depreciation was recorded at £0.86m.
Key areas of focus have been the International business where this is now run via an outsource model, rather than owned vehicles and employed drivers. This has led to a termination cost on the International trucks of £220k, but moves the business to a variable model, protecting the viability of this product line going forward.
The Fulfilment business was net negative and a decision was taken to close this part of the operation at the end of 2024 when the only customer contract expires. This removes the £1m p.a. property liability and £1m staff costs. Redundancy costs have been provided for in the 2025 budget.
This leaves the Freight Forwarding division which is mostly run via third party contracts, Storage which continues to deliver a positive contribution and Customs which is a service aligned with Freight Forwarding.
Moving into 2025, the focus is on growing the Isle of Wight customer base, trading on the capabilities within Jersey Post Group to service island customers with freight goods. Additionally, a new Pallet Track contract commenced in 2024 and this is bringing profitable and regular business for JPGL UK.
A new structure has been implemented with a strong Operational focus to manage costs, implement standard procedures and close down the Fareham and London Hub properties to continue the focus on reducing costs.
Loss after tax and depreciation was recorded at £0.86m.
Key areas of focus have been the International business where this is now run via an outsource model, rather than owned vehicles and employed drivers. This has led to a termination cost on the International trucks of £220k, but moves the business to a variable model, protecting the viability of this product line going forward.
The Fulfilment business was net negative and a decision was taken to close this part of the operation at the end of 2024 when the only customer contract expires. This removes the £1m p.a. property liability and £1m staff costs. Redundancy costs have been provided for in the 2025 budget.
This leaves the Freight Forwarding division which is mostly run via third party contracts, Storage which continues to deliver a positive contribution and Customs which is a service aligned with Freight Forwarding.
Moving into 2025, the focus is on growing the Isle of Wight customer base, trading on the capabilities within Jersey Post Group to service island customers with freight goods. Additionally, a new Pallet Track contract commenced in 2024 and this is bringing profitable and regular business for JPGL UK.
A new structure has been implemented with a strong Operational focus to manage costs, implement standard procedures and close down the Fareham and London Hub properties to continue the focus on reducing costs.
Inflationary pressures of vehicle maintenance, staff costs, shipping costs, fuel etc. all create a squeeze on margins. To offset this tariffs are reviewed regularly, however, there is a need to remain competitive in a crowded market. A forensic approach is taken in managing the P&L for each product line across the JPGL UK business and decisions taken to reduce costs are made daily.
Debtor days has always been key to cashflow for JPGL UK Ltd. Average days in 2024 was 43.50, down from 61.8 in 2023. The main driver of this decrease is a write off of significant bad debts. Excluding the impact of intercompany, debtor days were 41.1.
The current Ratio for JPGL in December 2023 was 1.45, and 1.64 at the end of 2024 and remained consistent throughout so while revenue and profits are declining, there is still strength in JPGL UK’s balance sheet and assets held.
The current Ratio for JPGL in December 2023 was 1.45, and 1.64 at the end of 2024 and remained consistent throughout so while revenue and profits are declining, there is still strength in JPGL UK’s balance sheet and assets held.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙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 to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £1,209,808 (2023 - loss £178,639).
There were no dividends declared during the period.
The directors who served during the year were:
Please refer to the strategic report.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the Company since the year end.
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JERSEY POST GLOBAL LOGISTICS UK LIMITED
We have audited the financial statements of Jersey Post Global Logistics UK Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JERSEY POST GLOBAL LOGISTICS UK LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JERSEY POST GLOBAL LOGISTICS UK LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙The Company is subject to laws and regulations that directly affect the financial statements including financial
reporting legislation, and general regulations such as health and safety and general data protection regulation. There
are no industry specific laws and regulations which would be deemed to have a significant impact on the financial
statements.
reporting legislation, and general regulations such as health and safety and general data protection regulation. There
are no industry specific laws and regulations which would be deemed to have a significant impact on the financial
statements.
∙We understood how the Company is complying with those legal and regulatory frameworks by making inquiries to
management and those responsible for legal and compliance procedures. We corroborated our inquiries through our
review of documentation.
management and those responsible for legal and compliance procedures. We corroborated our inquiries through our
review of documentation.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and
capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any
issues in this area.
capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any
issues in this area.
∙We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud
might occur. Audit procedures performed by the engagement team included:
might occur. Audit procedures performed by the engagement team included:
°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect
fraud;
fraud;
°Understanding how those charged with governance considered and addressed the potential for override of
controls or other inappropriate influence over the financial reporting process;
controls or other inappropriate influence over the financial reporting process;
°Challenging assumptions and judgments made by management in its significant accounting estimates; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the
organisation for fraud and identified the greatest potential for fraud in the following areas:
organisation for fraud and identified the greatest potential for fraud in the following areas:
°Posting of unusual journals and complex transactions;
°Misappropriation of funds through fraudulent supplier ledger and payroll activity; and
°Manipulation of amounts subject to significant judgement or estimate
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JERSEY POST GLOBAL LOGISTICS UK LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
3000a Parkway
Hampshire
PO15 7FX
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STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2024
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STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Jersey Post Global Logistics UK Limited is a private company limited by shares, incorporated in England and Wales. The address of its registered office is disclosed on the company information page.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Jersey Post International Limited as at 31 December 2024 and these financial statements may be obtained from :
Postal Headquarters
La Rue Grellier
La Rue des Pres Trading Estate
St. Saviour
Jersey
JE2 7QS.
Postal Headquarters
La Rue Grellier
La Rue des Pres Trading Estate
St. Saviour
Jersey
JE2 7QS.
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of a state other than the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 401 of the Companies Act 2006.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Intangible assets are amortised over the length of the contract to which they relate.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, either using the straight line or reducing balance methods.
Depreciation is provided on the following basis:
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
There is an obligation occuring upon the termination of the lease of a building which constitutes returning the building to original state as detailed in the contract. The amount of the resulting payment is not yet known, and therefore there is estimation required in order to calculate an expected provision.
Under-declared Duty & VAT provision
There is a potential obligation to pay under-declared import Duty and VAT as a result of incorrect customs declarations made on behalf of customers. This is because if there are any errors with the declarations, and for some reason the amount due is not paid to HMRC, one would expect HMRC to contact the importer in the first instance, but HMRC would also have recourse to the agent where indirect representation is in place. Hence, there are uncertainties around the amount and timing of the resulting payments.
Analysis of turnover by country of destination:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
10.Taxation (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
19.Deferred taxation (continued)
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Capital contribution reserve
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. As at the year end date, pension commitments held on the Statement of Financial Position, owed by the Company amounted to £7,550 (2023 - £17,052).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The ultimate controlling party is the States of Jersey Investments Limited which is incorporated in Jersey.
The largest and smallest group in which the results of this company are consolidated is that which is headed by Jersey Post International Limited, whose registered office is Jersey Post, La Rue Grellier, Rue des Pres Trading Estate, St. Saviour, Jersey, JE1 1AA.
The largest and smallest group in which the results of this company are consolidated is that which is headed by Jersey Post International Limited, whose registered office is Jersey Post, La Rue Grellier, Rue des Pres Trading Estate, St. Saviour, Jersey, JE1 1AA.
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