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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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JOHN DAVIDSON (PIPES) LIMITED
COMPANY INFORMATION
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JOHN DAVIDSON (PIPES) LIMITED
CONTENTS
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JOHN DAVIDSON (PIPES) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present the Strategic Report of John Davidson (Pipes) Limited ('the Company') for the year ended 31 December 2024.
The Company has achieved a satisfactory result for the year to 31 December 2024 delivering growth in a challenging market for construction which persisted throughout the year. Sales revenue grew slightly despite subdued customer demand with margins holding up in a deflationary environment driven by a very competitive market. As a result operating profit increased to £3,802,000 from £3,485,000. Profit before tax increased to £2,706,000 from £2,518,000.
The Company has net assets of £18,351,000 (2023: £15,645,000). The directors believe that the long term market fundamentals remain strong and the Company continues to benefit from a diverse customer base in building, construction, and agricultural markets both online and offline. Key areas of strategic development and performance of the business include: Sales and marketing: new and replacement business is being won continually; new markets have been developed in line with the Group's (Tessenderlo Chemie NV Group in which the Company is party to) strategy; key customer relationships are monitored on a regular basis. Manufacturing in the parent company: new products continue to be developed for both existing and development markets; production efficiencies have been gained and new initiatives for process and efficiency improvements are constantly being developed. The Company benefits from an exclusive position bringing these developments to the UK market as appropriate. Training and staff development are considered key to the success of the business. . Health and Safety: accident and absenteeism rates are under constant review and John Davidson (Pipes) Limited and other fellow group companies ('Group') seek ways of ensuring that a safe and healthy working environment is progressively improved. Key performance indicators are in place that monitor progress from both a leading and lagging perspective on a monthly basis. Competitive advantage: the Group focuses on areas where it has a competitive advantage including systems to aid sustainability in drainage and pollution control, design and technical service and the manufacture of bespoke solutions. These activities are significant areas of growth and concern in the business environment.
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JOHN DAVIDSON (PIPES) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The principal risks and uncertainties affecting the business include the following:
Raw material availability and prices particularly for plastic polymers can have a strong effect on our cost prices both from our Group factories and third party suppliers. Raw materials have been stable in the period under review and but can challenge the Company’s price and margin management when they are volatile. Debtors: the Company maintains strong relationships with each of its key customers and has established credit control parameters. Appropriate credit terms are agreed with all customers and these are closely managed. Competitive risk: the Company operates in highly competitive markets. Product innovations or technical advances by competitors could adversely affect the Company. The diversity of operations reduces the possible effect of action by any single competitor. Foreign exchange risk: The Company’s risk relates primarily to its operating activities where the revenue or exposure is denominated in a currency other than the functional currency of the entity undertaking the transaction. Credit risk: The principal credit risk arises from our trade debtors. We mitigate this threat with trade credit insurance. Significant importance is given to the management of credit risk and regular meetings are held to review amounts outstanding. Liquidity risk: the risk that the company will not be able to meet its financial obligations as they fall due. Cyber threat & data security: incidents of sophisticated cyber-crime represent a significant and increasing threat to all businesses. We are looking to meet this with increased investment in appropriate technology and enhanced control processes alongside awareness training for our teams. Invasion of Ukraine: Impact on supply chain resulting in short-term delays. Against the backdrop of rising tensions with Russia, particularly as it relates to Russia’s actions in Ukraine, and the ongoing sanctions announced by the United States, the United Kingdom and the European Union against Russia, the Company has reviewed the associated risks this causes for the business, its operations, and financial condition. Imports and Exports: The Company had no sales to Russia for the year ended 31 December 2024. The company continues to actively monitor new sanctions but as at the time of this report the company has not been impacted to any sanctions. Supply Chain: The Company faces immediate challenges for imported products as a result of the conflict within Europe. The company continue to actively monitor the impact on UK operations. Currency: The Company faces limited exposure as a result of no historic sales in Russia, however the invasion has negatively impacted foreign exchange rates. The group does not expect any immediate challenges. The Directors note that the markets in which the Company operates remain uncertain and volatile driven primarily by the current UK and global economic outlook. The situation continues to be evolve and the Directors continue to monitor the latest developments. However, they remain confident that the medium and long term prospects for the construction sector are very positive.
Key financial performance indicators include the monitoring of the management of profitability and working capital.
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JOHN DAVIDSON (PIPES) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The JDP Leadership Team hold regular meetings with the Senior Management Team to ensure that feedback from employees, customers and our supplier base are reported back in a timely manner.
This report was approved by the board and signed on its behalf.
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JOHN DAVIDSON (PIPES) LIMITED
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;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 profit for the year, after taxation, amounted to £2,706 thousand (2023 - £2,518 thousand).
There were no dividends distributed for the year ended 31 December 2024 (2023 - 4,000,000).
The directors who served during the year were:
The outlook for the markets in which the Company operates continues to be challenging in the short term and we continue to focus on developing and growing the sales and profitability through gains in market share. Further detail on the future development of the business is included in the Strategic Report on Page 1.
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JOHN DAVIDSON (PIPES) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Leadership Team of John Davidson (Pipes) Limited (JDP) considers the ongoing engagement of its key stakeholders to be of primary importance in its success. Formal and informal methods of communication are used to ensure that stakeholder groups are kept regularly informed of material matters that will affect them in both the long and short term.
The company has used the UK Government's GHG Conversion factors for reporting 2023 and 2022 to calculate its carbon emissions.
During 2023, the company has not introduced any new energy efficiency measures, however the Directors are committed to improving the energy efficiency of the Company.
As part of this, the Company reviews its motor vehicle fleet on a regular basis, phasing out older vehicles and ensuring new vehicles are fuel efficient to reduce fuel usage. The Company has adopted a policy of phasing out high CO2 omitting cars and replacing them with Hybrid vehicles. The Company is committed to improving the energy efficiency of their premises, investing in low energy lighting & investigating the benefits of solar panels. The Company has dramatically reduced transport over recent years by adopting Video Conferencing instead of face to face meetings and we also allow working from home where practical for staff.
The Company has chosen in accordance with Companies Act 2006, a. 414C (11) to set out in the strategic report information required by The 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 risk and uncertainties and financial risk management objectives and policies.
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JOHN DAVIDSON (PIPES) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the Company since the year end.
The auditor, Nortons Assurance limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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JOHN DAVIDSON (PIPES) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOHN DAVIDSON (PIPES) LIMITED
We have audited the financial statements of John Davidson (Pipes) Limited (the 'Company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, the Balance Sheet, 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.
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JOHN DAVIDSON (PIPES) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOHN DAVIDSON (PIPES) LIMITED (CONTINUED)
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.
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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JOHN DAVIDSON (PIPES) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOHN DAVIDSON (PIPES) 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 objectives of our audit, in respect to fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. Our approach was as follows: • We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework including the Companies Act 2006 and the relevant tax compliance regulations in the UK. • We understood how the Company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. • We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by discussing with management to understand where it considered there was a susceptibility to fraud. We considered the controls that the Company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud and error. • Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified in the paragraphs above. Our procedures involved journal entry testing, with a focus on journals indicating large or unusual transactions based on our understanding of the business, enquiries of Company management and focused testing. In addition, we completed procedures to conclude on the compliance of the disclosures in the Annual Report and Accounts with the requirements of the relevant accounting standards and UK legislation.
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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JOHN DAVIDSON (PIPES) LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JOHN DAVIDSON (PIPES) 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
Statutory Auditor
Second Floor
Now Building
Thames Valley Park
Berkshire
RG6 1RB
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JOHN DAVIDSON (PIPES) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
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JOHN DAVIDSON (PIPES) LIMITED
REGISTERED NUMBER: SC050397
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 29 form part of these financial statements.
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JOHN DAVIDSON (PIPES) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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JOHN DAVIDSON (PIPES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
John Davidson (Pipes) Limited ('the Company') is a private company, limited by shares, registered in Scotland and is incorporated and comiciled in the United Kingdom under the Companies Act 2006.
The principal activity of the company during the year was the sale and distribution of pipes and related products for use in the building, civil engineering, and agricultural sectors.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
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 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Tessenderlo NV as at 31 December 2024 and these financial statements may be obtained from its registered office at Headquarters, Rue du Trone 130, B-1050 Brussels. The latest annual report can be obtained from https://www.tessenderlo .com/en.
No material uncertainties that may cast doubt about the ability of the Company to continue as a going concern have been identified by the directors, therefore, the accounts have been prepared on a going concern basis.
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JOHN DAVIDSON (PIPES) LIMITED
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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JOHN DAVIDSON (PIPES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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JOHN DAVIDSON (PIPES) LIMITED
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.
The estimated useful lives range as follows:
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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JOHN DAVIDSON (PIPES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the 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 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.
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JOHN DAVIDSON (PIPES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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 if the revision affects only that period, or in the period of the revision and future period if the revision affects both current and future periods.
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JOHN DAVIDSON (PIPES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The whole of the turnover is attributable to one class of business.
Analysis of turnover by country of destination:
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JOHN DAVIDSON (PIPES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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JOHN DAVIDSON (PIPES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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JOHN DAVIDSON (PIPES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Taxation (continued)
In the Spring budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate
would increase to 25% from the 19% rate that was previously enacted. This new law was enacted on 24 May 2021. For the financial year ended 31 December 2024, the current weighted average tax rate was 25% (2023: 23.52%).
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JOHN DAVIDSON (PIPES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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JOHN DAVIDSON (PIPES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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JOHN DAVIDSON (PIPES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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JOHN DAVIDSON (PIPES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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JOHN DAVIDSON (PIPES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Profit and loss account
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JOHN DAVIDSON (PIPES) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
In the current year, the directors’ remuneration disclosure has been revised to align more closely with the definition of statutory directors under the Companies Act 2006 and the disclosure requirements of FRS 102. As a result, certain amounts previously included in the comparative figures for the year ended 31 December 2023 have been excluded. The restated prior year figure reflects a reduction of £142,329 in total directors’ emoluments.
In addition, the Company has reviewed the classification of certain financial instruments. As a result:
∙Financial assets at amortised cost have been revised from £12,083,000 to £12,896,000.
∙Financial liabilities at amortised cost have been adjusted from £8,429,000 to £7,998,000.
These adjustments relate solely to disclosure and have no impact on the Company’s profit or loss, net assets, or equity.
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £497,000 (2023 - £383,000). Contributions totalling £63,832 (2023 - £52,788) were payable to the fund at the balance sheet date and are included in creditors.
John Davidson (Pipes) Limited is a wholly owned subsidiary of Tessenderlo Holding UK Ltd.
The directors consider the ultimate holding company to be
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