The director presents the strategic report for the year ended 31 May 2025.
The principle activity of the Company, Jessops (Holdings) Limited remains to be that of a holding company including holding properties utilised elsewhere in the Group.
During the year, the Group continued to focus on its core activities of property development and construction. However, in response to the challenging circumstances facing the business, activity levels were reduced and, following events occurring after the balance sheet date as described elsewhere in these financial statements, the Group expects to continue operating at a significantly reduced scale.
Group turnover has risen to £13,492,588 (2024: £11,852,446 ) with a decrease in gross profit margins to 6.86% (2024: 27.04% ).
The Group's loss before tax amounted to £128,358 (2024: £1,699,071 profit).
Trading conditions remained challenging during the year due to increasing inflationary pressures and ongoing labour and material supply constraints within the sector. This is reflected in the reduction in profitability, with lower gross margins achieved during the period alongside continued cost pressures. The director continues to focus on maintaining strong client relationships, cautious and considered monitoring of active projects and measured cost management, to support future financial stability. As outlined in the post balance sheet events note, the Director has taken the decision not to undertake any new projects until matters are settled with reference to the contingent liability explained below.
As disclosed in the contingent liabilities note, a subsidiary undertaking is subject to an ongoing legal claim arising in the ordinary course of business (the “Claim”). The Claim is being actively defended by the subsidiary and the ultimate outcome remains uncertain.
Due to the uncertainty surrounding the outcome of the claim and any associated insurance recovery, a material uncertainty related to going concern exists. Further details are provided in note 1.3 and note 25.
Management continually monitor the key risks facing the group, together with assessing the controls used for managing these risks. The board of directors formally reviews and documents the principal risks facing the business at least annually.
The principal risks and uncertainties facing the group are as follows:
i) Contract risk - time is invested in the tendering process, ensuring a realistic programme and margin to reduce this risk, Projects are closely monitored for performance, and any indicators of performance issues are identified and addressed promptly by a proactive management team.
ii) Competitor pressure – trading conditions remain competitive, and therefore competitor pressure could result in losing sales to key competitors. The group manages this risk by carrying out high quality work and maintaining strong relationships with its key customers.
iii) People - the group depends upon its management team and highly skilled workforce but acknowledge the increasingly competitive market for people. Management seek to ensure that all personnel are appropriately remunerated and ensure that good performance is rewarded.
iv) Health and safety issues - the company operates high standards of health and safety with regular training for all employees and subcontractors.
v) Claims - The Group is subject to claims, investigations and legal actions arising in the normal course of business. The director accrues for costs based on the best estimate of known matters in progress. The Company takes legal advice as to the potential outcomes, and no provision is made where the director considers, based on that advice, that the action is unlikely to succeed, or where a sufficiently reliable estimate of the potential obligation cannot be made due to the circumstances of the claim.
Management use a range of performance measures to monitor and manage the business. The KPIs used to determine the progress and performance of the group are set out below:
i) Gross profit margin - the group's gross profit margin in the year decreased to 6.86% (2024: 27.04%).
ii) Net assets - net assets represent the liquidity of the group and amounted to £7,242,713 (2024: £7,229,865).
iii) Financing - the group continues to operate without any bank debt and retains significant cash resources within the group to provide funding if required.
The principal activity of the Company is that of a holding company. Whilst an ongoing legal matter relates to a subsidiary undertaking rather than the Company itself, the outcome remains uncertain and may affect the future outlook of the Group. Further details are provided in the contingent liabilities and going concern notes.
On behalf of the board
The director presents his annual report and financial statements for the year ended 31 May 2025.
The director who held office during the year and up to the date of signature of the financial statements was as follows:
The group results for the year are set out on page 9.
No ordinary dividends were paid. The director does not recommend payment of a further dividend.
The group's principal financial instruments comprise of bank balances. The main purpose of its financial instrument is to finance the group's operations.
In respect of bank balances, the liquidity risk is managed by transferring funds between the accounts of the group to obtain the maximum rate of interest, whilst not impacting on the immediate financial needs of the group.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Liquidity risk in respect of creditors is managed by ensuring sufficient funds are available to meet amounts due.
Company
On 25 November 2025, the Company disposed of its investment in Pear Tree (Derby) Limited. The transaction has been treated as a non-adjusting post balance sheet event and, accordingly, no adjustment has been made to the amounts recognised in these financial statements. The financial effect of the disposals will be reflected in the next set of Group's financial statements.
Subsequent to the year end, the Company disposed of its investment property at market value.
Subsidiaries
Subsequent to the year end, a subsidiary undertaking disposed of its investment property portfolio. Following completion of the disposals, the subsidiary ceased its investment property activities and no further trading activity is anticipated. The disposals have been treated as non-adjusting post balance sheet events and, accordingly, no adjustment has been made to the amounts recognised in these financial statements. The financial effect of the disposals has not been reflected in these financial statements and has not been quantified.
In addition, as disclosed in note 25, a subsidiary remains subject to an ongoing claim. The outcome of the matter and any associated financial impact remain uncertain.
In accordance with the company's articles, a resolution proposing that Mercer & Hole LLP be reappointed as auditor of the group will be put at a General Meeting.
United Kingdom company law requires the director to prepare financial statements for each financial year. Under that law, the director has elected to prepare the group and parent company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and parent company, and of the profit or loss of the group for that period.
In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent company, and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Qualified
We have audited the financial statements of Jessops (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2025 which comprise the group profit and loss account, 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 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).
Basis for qualified opinion
Material uncertainty related to going concern
Other information
Opinions on other matters prescribed by the Companies Act 2006
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the group's and parent 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 director either intends to liquidate the group or parent company or to cease operations, or has no realistic alternative but to do so.
We gained an understanding of the legal and regulatory framework applicable to the group and the parent company and the industry in which it operates and considered the risk of acts by the group and the parent company that were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, the Companies Act 2006 and tax legislation.
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure and management bias in accounting estimates.
Audit procedures performed by the engagement team included:
discussions with management, including considerations of known or suspected instances of non- compliance with laws and regulations and fraud;
gaining an understanding of management's controls designed to prevent and detect irregularities; and
identifying and testing journal entries.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all laws and regulations.
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 parent 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 parent 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 parent company and the parent 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.
Further information regarding the basis of preparation of the figures is detailed in note 1.2 of the accounting policies.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,258,374 (2024 - £1,268,616 profit).
Jessops (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Trinity Court, Church Street, Rickmansworth, WD3 1RT.
The group consists of Jessops (Holdings) Limited and its subsidiaries, Jessops Construction Limited, Pear Tree (Derby) Limited and Jessops Developments Limited.
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 £1.
The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The 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 for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated financial statements incorporate those of Jessops (Holdings) Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).
All financial statements are made up to 31 May 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
On publishing the parent company financial statement, the company is taking the exemption in section 408 of Companies Act 2006 not to present the individual income statement and related notes of the parent company which form part of these approved financial statements.
The financial statements have been prepared on a going concern basis. In making this assessment, the Director has considered the Group's financial position, cash flow forecasts and principal risks for a period of at least 12 months from the date of approval of these financial statements.
At 31 May 2025, the Group had net assets of £7,242,713 (2024: £7,229,865) and cash balances of £4,759,683 (2024: £5,767,907). The Company has no external borrowings and is therefore not subject to externally imposed financing constraints.
As disclosed in note 25, a significant subsidiary undertaking is subject to an ongoing legal claim. The outcome of the claim, together with the extent of any related insurance recovery, remains uncertain. Accordingly, this gives rise to a material uncertainty which may cast significant doubt on the Group's and Company's ability to continue as a going concern.
The Director has also considered the post year-end disposal of the investment property portfolio held by another subsidiary and the fact that the subsidiary is not expected to undertake any future trading activities. The Director is satisfied that this does not have a material adverse impact on the Group's ability to continue as a going concern, as the subsidiary's assets have been realised at amounts consistent with their carrying values and the Group retains substantial net assets and cash resources following the disposals.
Notwithstanding the above, the Director has a reasonable expectation that the Group and Company have adequate resources to continue in operational existence for the foreseeable future. Accordingly, the Director has adopted the going concern basis in preparing these financial statements.
Turnover represents the value of work done during the period net of value added tax. The value of work done is calculated as the certified work, plus the amount anticipated to be certified, adjusted for over and under measure. As described in more detail in note 1.9 revenue and costs are recognised by reference to the stage of completion of construction contracts where it can be reliably measured.
Rental income represents consideration received or receivable for property rental provided in the normal course of business, and is shown net of value added tax and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates and is recognised on an accruals 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 profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
The group 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 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.
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 and 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 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.
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 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 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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
In assessing whether there have been any indicators of impairment assets, the director has considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no material indicators of impairments identified during the current financial year other than in respect of bad and doubtful trade debtor balances recognised in the financial statements and change in property valuations.
A key area of judgement in the financial statements relates to the carrying value of the investment properties which are stated at fair value. The Director has reviewed the market conditions and sales prices based upon known market transactions for similar properties as a basis for determining the directors' estimation of the fair value of the investment properties. However, the valuation of the groups investment properties is inherently subjective, as it is made on the basis of valuation assumptions which may in the future not prove to be accurate. In addition, the deferred tax liabilities recognised in respect of the fair value gains and losses on these investment properties are assessed on the basis of assumptions regarding the future, the likelihood that assets will be realised and liabilities will be settled, and estimates as to the timing of those future events and as to the future tax rates that will be applicable.
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 group uses the percentage of completion method to recognise project revenue for fixed-price contracts. This method requires the director to estimate the level of services performed at each reporting date as a proportion of the total services to be performed to complete the contract. Variations to estimates could result in the over or under recognition of revenue.
The group establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability the director considers factors such as the aging of the receivables, past experience of recoverability and the credit profile of individuals or groups of customers.
The group depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of the assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.
Judgement is applied by management when determining the residual values for tangible fixed assets. When determining the residual value management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected a the end of its useful economic life. Where possible this is done with reference to external market prices.
The recognition and measurement of provisions, including those relating to legal claims and associated costs, require the director to exercise judgement in determining whether a present obligation exists at the reporting date and in estimating the likelihood and potential financial impact of any outflow. In assessing such matters, the director considers the status of claims, investigations and legal proceedings, together with advice obtained from external legal advisors.
Where a present obligation exists and a reliable estimate of the financial effect can be made, a provision is recognised in the financial statements based on the director’s best estimate of the expenditure required to settle the obligation. However, where the outcome of a matter is uncertain and a reliable estimate of the potential obligation cannot be made, no provision is recognised, other than for directly attributable legal and professional costs as incurred.
As set out in the contingent liabilities note, a Subsidiary is actively defending an ongoing Claim for which the outcome, timing and financial effect remain uncertain and cannot be reliably estimated or quantified at the reporting date.
Given the inherent uncertainty surrounding such matters, actual outcomes may differ from those estimated, and such differences could have a material impact on the Subsidiary's financial position and results in future periods.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
Investment property comprises rental properties. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties by either a professional estate agent, independent to the company, or the director of the group.
On 12 July 2023 Pear Tree (Derby) Limited incorporated, with Jessops (Holdings) Limited subscribing to 50% of the ordinary share capital.
Details of the company's subsidiaries at 31 May 2025 are as follows:
On 25 November 2025, the Company disposed of its investment in Pear Tree (Derby) Limited at nominal value of the share capital.
The transaction has been treated as a non-adjusting post balance sheet event and, accordingly, no adjustment has been made to the amounts recognised in these financial statements. The financial effect of the disposals will be reflected in the next set of Group's financial statements.
The group's bank overdraft facility is secured by a legal charge over the company's land and buildings.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above is expected to reverse over the life of the qualifying assets and relates to accelerated capital allowances and revaluations of freehold property that are expected to mature.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
This represents the revaluation uplift on investment properties net of deferred tax.
Profit and loss reserves
The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.
Other reserve
This represents the merger reserve and is the difference between the cost of investment and the nominal value of the share capital acquired in Jessops Construction Limited under merger accounting plus any other non distributable reserves of the subsidiary undertaking.
Company
On 25 November 2025, the Company disposed of its investment in Pear Tree (Derby) Limited. The transaction has been treated as a non-adjusting post balance sheet event and, accordingly, no adjustment has been made to the amounts recognised in these financial statements. The financial effect of the disposals will be reflected in the next set of Group's financial statements.
Subsequent to the year end, the Company disposed of its investment property at market value.
Subsidiaries
Subsequent to the year end, a subsidiary undertaking disposed of its investment property portfolio. Following completion of the disposals, the subsidiary ceased its investment property activities and no further trading activity is anticipated. The disposals have been treated as non-adjusting post balance sheet events and, accordingly, no adjustment has been made to the amounts recognised in these financial statements. The financial effect of the disposals has not been reflected in these financial statements and has not been quantified.
In addition, as disclosed in note 25, a subsidiary remains subject to an ongoing claim. The outcome of the matter and any associated financial impact remain uncertain.
During the year the group entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
The company has taken advantage of the exemption conferred by paragraph 33.1A of FRS 102 "Related Party Disclosures" not to disclose transactions with other group entities, whose voting rights are 100% controlled within the group, and where consolidated financial statements of the group are publicly available. This exemption is available as Jessops Construction Limited and Jessops Developments Limited are wholly owned subsidiaries of Jessops (Holdings) Limited.
A subsidiary undertaking is subject to an ongoing legal claim which is being actively defended. At the balance sheet date, the outcome of the claim and the extent of any related insurance recovery remain uncertain and the potential financial effect cannot be reliably estimated. Accordingly, no provision has been recognised in respect of this matter other than legal and professional costs incurred.
Due to the uncertainty surrounding the outcome of the claim and any associated insurance recovery, the directors have concluded that a material uncertainty exists which may cast significant doubt on the Group's ability to continue as a going concern. Further details are provided in note 1.3.