The director presents the strategic report for the year ended 31 March 2025.
The principal activity of the group continued to be that of wholesale tyre distributors.
The director considers that the key performance indicators that are relevant to the company are units sold, turnover, gross profit and net profit.
The director is pleased with the results for the year, especially as we have seen a challenging economic environment in the UK for 2024 & 2025, with certain market segments such as agricultural being affected by changes in government policy and soaring production costs – having a knock on effect on spending. In this environment the group has still managed achieve strong sales and gross margin and make a satisfactory profit figure. At the same time the group has doubled the size of warehouse site and started to develop further our storage systems, with continuing improved logistics, we have been recognised as having the best distribution solution in our industry throughout the UK.
Post year end has showed a consistent level of Sales, even though further effects of shipping delays from the Southeast Asia has resulted in stock availability delays in some product sectors. Further development of our new warehouse site is ongoing and will be advanced over the coming years inline with managing our financial performance. The group continues to invest in its employees, through increases in staff numbers and staffing development & training. Development of IT infrastructure & systems across the business is ongoing with continued enhancements to our reporting capabilities and management information.
Risks and uncertainties
The group considers its key risk in business being fluctuations in foreign currency and trade debtor risk.
Foreign currency risk arises as the majority of stock purchases are paid in Euro or US Dollars. This risk is managed by forward buying for stock purchases and management of cashflow and foreign currency availability.
Trade debtor risk arises from the substantial and continually increasing customer base. This risk is managed by having a suitable credit insurance policy in place and by close monitoring of credit limits and debtors terms.
Creditors are paid in accordance with terms of business agreed with individual suppliers. Given the varying terms of business agreed with suppliers, the director has not calculated an average creditor day figure as a whole, on the basis such a statement would not be beneficial.
Promoting the success of the company
The director considers that they have acted in a way that is considered, in good faith, to be most likely to promote the success of the company for the benefit of its members as a whole.
Being a family owned business with director representation, the business has always been run with long term objectives for success being key. The decisions taken during the year continue to focus on the long term success of the business, recognising that all stakeholders including employees, customers, suppliers and the environment are key to achieving this goal.
In looking at the long term success of the group the director has made significant strategic investment decisions including numerous substantial expansions of the site and warehousing capacity. The director has also ensured that further technical infrastructure investment has been made to strengthen the group’s long term growth ambitions and secure continued partnerships with its suppliers, customers and employees.
The group has significantly improved its IT support network and infrastructure with investments and improvements made in Cyber Security to ensure we keep our own and our stakeholders data and information safe.
We regularly engage with our key stakeholders, ensuring that we are up to date with Company, Legal, Ethical and Health & Safety laws and regulations.
The large majority of suppliers have been in a long term partnership with the group, whilst forging new relationships is key to business, the director ensures that the suppliers, who have worked with the company for many years are always considered. Wherever possible we engage with local suppliers to ensure we are supporting our local community. We ensure we procure quality products whilst also maintaining a high level of ethical standards in our procurement process.
We are extremely proud of having long standing relationships with many of our customers, it is our aim to ensure we offer our customers with a wide range of products and a high level of service and support. We engage with our customers through rewards and loyalty programmes, social media engagement and maintaining an informative commercial website.
The majority of the employees come from the immediate Liverpool City region, highlighting our support of the community local to our head office. As a group we provide relevant training, reward performance and promote career development opportunities which all contribute to a high proportion of long standing employees. We ensure that our employees can work in a friendly, safe and rewarding environment. With Wellbeing and Health & Safety of team members being a key focus of the business.
Our environmental policies and considerations are highlighted within our SECR reporting requirements which form part of the Directors’ report, we have gained ISO 14001 Environmental Management Accreditation during the year, an area we will look to further improve on in the future.
As highlighted above we are keen to support our local community wherever we can, this is done partly by using local suppliers for goods and services, providing goods required to local customers and employing local people. The company also ensures
support of local charities through financial donations, foodbank donations and offering support wherever we can.
We consider it fundamental to our company that we maintain an exemplary standard of business conduct with all our key stakeholders.
Approved by the director
The director presents his annual report and financial statements for the year ended 31 March 2025.
The results for the year are set out on page 9.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Having expressed a willingness to continue in office, Mitchell Charlesworth (Audit) Limited is deemed to be reappointed under section 487(2) of the Companies Act 2006.
The Streamlined Energy and Carbon Reporting disclosures below reflect the the total energy usage of electricity, gas and transport fuel of the UK operations. In converting to Kg of CO2 emissions the group has used the 2025 UK Government Conversion Factors for Company Reporting.
Category |
|
Forklift Truck Fleet - Gas | 152,569 Kg CO2 |
Car Emissions Employees – Petrol | 22,583 Kg CO2 |
Car Emissions Employees – Diesel | 126,847 Kg CO2 |
Electric Supply | 75,437 Kg CO2 |
|
|
Intensity Metric | 0.005 Kg CO2 / £ Sales Revenue |
|
|
The group continues to strive to reduce its “carbon footprint” and various steps as referred to below have been continued / implemented in order to continually improve.
• The UK trading subsidiary maintained its ISO14001 Environmental Management Accreditation, something the management team is continuing to improve on further over the coming years.
• Less travel for meetings – particularly meetings with suppliers that might have taken place abroad, these now being conducted over MS Teams/Zoom platforms.
• Implementation of separate food waste and recycling waste throughout the Warehouse and offices
• All Forklift Trucks continue to run on LPG.
• Continued reduction of product/packaging wastage – the main wastage item being wood pallets for goods inwards – these are recycled via a dedicated service provider.
• All new lighting in warehouses are LED energy efficient lighting, delivering a significant overall reduction in energy usage.
• Warehouse lighting on automatic lighting sensors for improved energy management.
• Upgraded and properly maintained air conditioning systems in place to improve energy efficiency.
• Fleet renewal policy - All diesel vehicles within the company are Euro 6 compliant, with an overall reduction in petrol/diesel vehicles. All non-commercial vehicles in the fleet are now either Hybrid or fully electric. 10 EV Charging points now located on site, a number of Hybrid vehicles have been replaced with fully electric vehicles and majority of commercial vehicles have been replaced with hybrid alternatives.
• Solar panel installation that occurred in previous years, have allowed the company to reduce its energy consumption drawing from “the grid” significantly. We have seen a significant reduction in our energy consumption from Electric supply during the year.
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 the group's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 is noted in the strategic report on page 1.
We have audited the financial statements of J. Rose (Tyres) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the director's report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
the nature of the industry and sector, control environment and business performance;
the group's own assessment of the risks that irregularities may occur either as a result of fraud or error;
the results of our enquiries of management of their own identification of and assessment of the risks of irregularities;
any matters we identified having obtained and reviewed the group's documentation of their policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud
As a result of these 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:
(i) The presentation of the Statement of Comprehensive Income, (ii) the accounting policy for revenue recognition (iii) overstatement of stocks. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements;
enquiring of management and directors concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
testing the accuracy of the inventory records and cut off procedures;
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the group’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.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The annual depreciation charge for land, buildings, plant and equipment is sensitive to changes in estimated useful economic lives of the assets. The useful lives of the assets are assessed on an annual basis based on experience and are amended when necessary to reflect current estimates.
Being a stockist and distributor of tyres it is necessary to consider the recoverability of the cost of the inventory and the associated provisioning required. Management consider the nature and condition of inventory as well as historic movements extracted from the inventory records when considering the level of provisioning.
J Rose (Tyres) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Suites C,D,E, & F, 14th Floor The Plaza, 100 Old Hall Street, Liverpool, L3 9QJ.
The group consists of J Rose (Tyres) Limited and all of its subsidiaries.
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.
At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the director continues to adopt the going concern basis of accounting in preparing the financial statements.
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 the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
The director is maintaining the group's long leasehold property to a high standard, and its useful economic life and residual value based on current assessments is such that depreciation would not be material. Provision will be made in the Profit and Loss Account for any permanent diminution in value that arises.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax.
Deferred tax assets are recognised only to the extent that the director considers that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the Balance Sheet date.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The group operates a defined contribution pension scheme and the contributions are charged to the Profit and Loss Account in the year in which they are payable.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
Assets and liabilities of overseas subsidiaries are converted into sterling at the rate of exchange ruling at the Balance Sheet date with any currency adjustment taken directly to reserves. The results of overseas subsidiaries are converted into sterling at an average rate for the period. Other exchange differences are reflected in the result for the year.
An analysis of the group's turnover is as follows:
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
Included in staff costs above is key management personnel remuneration of £160,287 (2024 £223,596 ).
Mr G A Rosenthal is a member of a Defined Contribution Pension Scheme operated by J. Rose (Tyres) Limited.
No contributions were paid by the company during the year.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Included within freehold land and buildings is freehold land to the value of £425,000 which is not depreciated.
Leasehold land and buildings include a cost of £2,004,630 in relation to long leasehold property held on a 999 year lease granted in 1937. The remaining long leasehold land and buildings represent an extension to the site upon which, additional warehousing has been constructed.
Details of the company's subsidiaries at 31 March 2025 are as follows:
Goods for resale includes £6,129,860 (2024 £6,605,140) of stock in transit at 31 March 2025.
The group’s bankers hold as security, fixed and floating charges over all current and future assets together with cross guarantees between all companies in the J. Rose (Tyres) Limited group. AIB Bank hold a first legal charge over the freehold land and building owned by Kirkby Tyres Property Limited under a charge registered on 23 January 2023.
Of the £5,901,910 of bank loans due after more than one year, £4,648,750 is payable by instalments after more than five years. The applicable rates of interest on these loans are 3.55% and 6.25%.
Included in bank overdrafts is an amount of £7,660,811 (2024 £4,970,166) due to the group bankers which are secured by charges on the trade debtors of the group.
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
A subsidiary company operates a defined contribution pension scheme for all qualifying employees and contributes to a number of personal pension plans of employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The group has in the normal course of trade given indemnities to third parties, entered into forward currency contracts and has outstanding letters of credit. No additional liabilities are expected to arise from these transactions other than amounts provided in the accounts.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Included in other debtors is an amount of £1,041,519 (2024: £1,027,747) in respect of amounts advanced to the company director Mr G A Rosenthal. The closing balance was the maximum amount outstanding during the year and has subsequently been paid in full.