Company Registration No. 01950782 (England and Wales)
JAKTO TRANSPORT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2019
JAKTO TRANSPORT LIMITED
COMPANY INFORMATION
Directors
Mr N A Hellewell
Mr A Hellewell
Mr D J Gleadall
Mr P J Booth
Company number
01950782
Registered office
Oaks Lane
Stairfoot
Barnsley
South Yorkshire
S71 1HT
Auditor
GBAC Limited
Old Linen Court
83-85 Shambles Street
Barnsley
South Yorkshire
S70 2SB
Bankers
Yorkshire Bank PLC
1A Peel Square
Barnsley
S70 2PL
JAKTO TRANSPORT LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 5
Income statement
6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
JAKTO TRANSPORT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 1 -
The directors present the strategic report and financial statements for the year ended 30 November 2019.
Fair review of the business
Turnover has decreased this year by 13.4% to £14,607,489. The directors consider the profit on ordinary activities before taxation to be satisfactory.
The COVID-19 global pandemic occurred after the financial year and as a result we experienced a drop in demand following the nationwide lockdown. The company has recovered well since this initial period and the directors are confident that this will continue for the foreseeable future.
Principal risks and uncertainties
Risk Management
The company's financial instruments comprise bank balances, trade creditors, trade debtors and HP finance. The main purpose of these instruments is to raise funds and finance the company operations. The company keeps it's exposure risk to a minimum by negotiating HP finance facilities on a regular basis. In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through use of the bank overdraft.
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. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Key performance indicators
The key financial highlights are as follows:-
2019 2018 2017 2016 2015
£ £ £ £ £
Turnover 14,607,489 16,876,836 13,740,757 15,630,318 14,128,779
Turnover growth (percent) (13.4) 22.8 (12.1) 10.6 14.4
Gross profit margin (percent) 28.7 26.1 42.6 35.4 35.7
Profit before tax 36,093 283,040 2,028,475 2,037,760 1,786,641
Mr A Hellewell
Director
12 November 2020
JAKTO TRANSPORT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 2 -
The directors present their annual report and financial statements for the year ended 30 November 2019.
Principal activities
The principal activity of the company continued to be that of haulage contractors, site clearance and excavation.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr N A Hellewell
Mr A Hellewell
Mr D J Gleadall
Mr P J Booth
Results and dividends
The results for the year are set out on page 6.
The profit for the year after taxation was £23,317.
Auditor
In accordance with the company's articles, a resolution proposing that GBAC Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as the directors are aware, there is no relevant audit information of which the company's auditor is unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditor is aware of that information.
On behalf of the board
Mr A Hellewell
Director
12 November 2020
JAKTO TRANSPORT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
JAKTO TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF JAKTO TRANSPORT LIMITED
- 4 -
Opinion
We have audited the financial statements of Jakto Transport Limited (the 'company') for the year ended 30 November 2019 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the 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).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 30 November 2019 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditors'
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors' r
eport 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.
JAKTO TRANSPORT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF JAKTO TRANSPORT LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
Victoria Jane Harrison (Senior Statutory Auditor)
for and on behalf of GBAC Limited
12 November 2020
Statutory Auditor
Old Linen Court
83-85 Shambles Street
Barnsley
South Yorkshire
S70 2SB
JAKTO TRANSPORT LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 6 -
2019
2018
Notes
£
£
Revenue
3
14,607,489
16,876,836
Cost of sales
(10,411,381)
(12,469,897)
Gross profit
4,196,108
4,406,939
Administrative expenses
(4,127,920)
(4,022,098)
Operating profit
4
68,188
384,841
Finance costs
7
(32,095)
(101,801)
Profit before taxation
36,093
283,040
Tax on profit
8
(12,776)
(100,019)
Profit for the financial year
23,317
183,021
The income statement has been prepared on the basis that all operations are continuing operations.
JAKTO TRANSPORT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 7 -
2019
2018
£
£
Profit for the year
23,317
183,021
Other comprehensive income
-
-
Total comprehensive income for the year
23,317
183,021
JAKTO TRANSPORT LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 30 NOVEMBER 2019
30 November 2019
- 8 -
2019
2018
Notes
£
£
£
£
Fixed assets
Property, plant and equipment
10
4,895,036
5,575,645
Current assets
Inventories
12
4,573
5,601
Trade and other receivables
13
2,043,066
4,733,911
Cash and cash equivalents
16,198
-
2,063,837
4,739,512
Current liabilities
14
(1,731,519)
(4,094,246)
Net current assets
332,318
645,266
Total assets less current liabilities
5,227,354
6,220,911
Non-current liabilities
15
(285,188)
(739,312)
Provisions for liabilities
17
(608,004)
(620,754)
Net assets
4,334,162
4,860,845
Equity
Called up share capital
20
100
100
Retained earnings
4,334,062
4,860,745
Total equity
4,334,162
4,860,845
The financial statements were approved by the board of directors and authorised for issue on 12 November 2020 and are signed on its behalf by:
Mr A Hellewell
Director
Company Registration No. 01950782
JAKTO TRANSPORT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 9 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 December 2017
100
4,977,724
4,977,824
Year ended 30 November 2018:
Profit and total comprehensive income for the year
-
183,021
183,021
Dividends
9
-
(300,000)
(300,000)
Balance at 30 November 2018
100
4,860,745
4,860,845
Year ended 30 November 2019:
Profit and total comprehensive income for the year
-
23,317
23,317
Dividends
9
-
(550,000)
(550,000)
Balance at 30 November 2019
100
4,334,062
4,334,162
JAKTO TRANSPORT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 10 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,735,168
517,961
Interest paid
(32,095)
(101,801)
Income taxes paid
(242,916)
(138,825)
Net cash inflow from operating activities
1,460,157
277,335
Investing activities
Purchase of property, plant and equipment
(97,125)
(155,219)
Proceeds on disposal of property, plant and equipment
149,379
269,300
Proceeds from other investments and loans
389,911
-
Net cash generated from investing activities
442,165
114,081
Financing activities
Proceeds from borrowings
190,000
-
Payment of finance leases obligations
(835,048)
(1,026,120)
Dividends paid
(550,000)
(300,000)
Net cash used in financing activities
(1,195,048)
(1,326,120)
Net increase/(decrease) in cash and cash equivalents
707,274
(934,704)
Cash and cash equivalents at beginning of year
(691,076)
243,628
Cash and cash equivalents at end of year
16,198
(691,076)
Relating to:
Cash at bank and in hand
16,198
-
Bank overdrafts included in creditors payable within one year
-
(691,076)
JAKTO TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 11 -
1
Accounting policies
Company information
Jakto Transport Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Oaks Lane, Stairfoot, Barnsley, South Yorkshire, S71 1HT.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares
;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements
;
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Jakto Group Limited
. These consolidated financial statements are available from its registered office,
Oaks Lane, Stairfoot, Barnsley, S71 1HT
.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue 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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
JAKTO TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
1
Accounting policies
(Continued)
- 12 -
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.4
Property, plant and equipment
Property, plant and equipment
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
10% reducing balance
Fixtures, fittings & equipment
10%, 25% and 33% reducing balance
Motor vehicles
25% reducing balance
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 credited or charged to profit or loss
.
1.5
Impairment of non-current assets
At each reporting
period
end date, the
company
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.
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.
JAKTO TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
1
Accounting policies
(Continued)
- 13 -
1.6
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
Inventories held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables 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
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.
JAKTO TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets
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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from
fellow group companies and preference shares that are classified as debt, 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
paymen
ts 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 payables
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts 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 payables are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
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
s
ubsequently 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, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
JAKTO TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.11
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision in measured at present value the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
1.12
Employee benefits
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 non-current 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.
JAKTO TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
1
Accounting policies
(Continued)
- 16 -
1.13
Retirement benefits
The company provides a defined contribution pension scheme, the assets of which are held separately from those of the company in an independently administered fund. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.15
Related party transactions
The company has taken advantage of the exemption under paragraph 33.1A of FRS 102 from providing details of related party transactions with group companies that are incorporated within the financial statements of this company.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Revenue
An analysis of the company's revenue is as follows:
2019
2018
£
£
Revenue analysed by class of business
Haulage, site clearance and excavation
14,607,489
16,876,836
2019
2018
£
£
Revenue analysed by geographical market
UK
14,607,489
16,876,836
JAKTO TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 17 -
4
Operating profit
2019
2018
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
10,000
Depreciation of owned property, plant and equipment
422,326
403,733
Depreciation of property, plant and equipment held under finance leases
241,120
302,256
Loss/(profit) on disposal of property, plant and equipment
30,459
(8,411)
Operating lease charges
260,000
178,908
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Office and management
12
12
Production
50
50
Total
62
62
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
2,449,341
2,380,395
Social security costs
244,037
241,294
Pension costs
100,787
62,518
2,794,165
2,684,207
6
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
271,923
233,068
Company pension contributions to defined contribution schemes
36,000
36,000
307,923
269,068
JAKTO TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
6
Directors' remuneration
(Continued)
- 18 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2019
2018
£
£
Remuneration for qualifying services
81,918
77,935
7
Finance costs
2019
2018
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
32,393
44,423
Other interest
(298)
57,378
32,095
101,801
8
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
25,526
80,748
Deferred tax
Origination and reversal of timing differences
(12,750)
19,271
Total tax charge
12,776
100,019
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:
2019
2018
£
£
Profit before taxation
36,093
283,040
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
6,858
53,778
Tax effect of expenses that are not deductible in determining taxable profit
11,706
44,642
Permanent capital allowances in excess of depreciation
6,962
(17,672)
Other non-reversing timing differences
(12,750)
19,271
Taxation charge for the year
12,776
100,019
JAKTO TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 19 -
9
Dividends
2019
2018
£
£
Interim paid
550,000
300,000
10
Property, plant and equipment
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 December 2018
8,111,798
153,767
1,471,441
9,737,006
Additions
125,000
1,675
36,000
162,675
Disposals
(262,750)
-
(18,234)
(280,984)
At 30 November 2019
7,974,048
155,442
1,489,207
9,618,697
Depreciation and impairment
At 1 December 2018
3,309,813
110,888
740,660
4,161,361
Depreciation charged in the year
470,748
6,882
185,816
663,446
Eliminated in respect of disposals
(85,764)
-
(15,382)
(101,146)
At 30 November 2019
3,694,797
117,770
911,094
4,723,661
Carrying amount
At 30 November 2019
4,279,251
37,672
578,113
4,895,036
At 30 November 2018
4,801,985
42,879
730,781
5,575,645
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2019
2018
£
£
Plant and machinery
1,635,808
1,967,051
Motor vehicles
187,665
496,008
1,823,473
2,463,059
JAKTO TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 20 -
11
Financial instruments
2019
2018
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
941,454
2,494,964
Carrying amount of financial liabilities
Measured at amortised cost
1,732,162
4,237,732
12
Inventories
2019
2018
£
£
Raw materials and consumables
4,573
5,601
13
Trade and other receivables
2019
2018
Amounts falling due within one year:
£
£
Trade receivables
516,068
1,826,099
Gross amounts owed by contract customers
1,050,606
2,068,341
Corporation tax recoverable
17,082
103,190
Amounts owed by group undertakings
66,706
65,592
Other receivables
52,567
442,928
Prepayments and accrued income
33,924
67,416
1,736,953
4,573,566
2019
2018
Amounts falling due after more than one year:
£
£
Trade receivables
306,113
160,345
Total debtors
2,043,066
4,733,911
JAKTO TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 21 -
14
Current liabilities
2019
2018
Notes
£
£
Bank loans and overdrafts
-
691,076
Obligations under finance leases
16
641,152
766,526
Trade payables
451,178
1,691,463
Amounts owed to group undertakings
262,615
262,615
Corporation tax
74,881
378,379
Other taxation and social security
209,664
217,447
Other payables
31
31
Accruals and deferred income
91,998
86,709
1,731,519
4,094,246
The bank overdraft is secured by a fixed and floating charge over the company's assets.
The finance leases are secured on the vehicles and equipment which they were used to acquire.
15
Non-current liabilities
2019
2018
Notes
£
£
Obligations under finance leases
16
285,188
739,312
16
Finance lease obligations
2019
2018
Future minimum lease payments due under finance leases:
£
£
Within one year
641,152
766,526
In two to five years
285,188
739,312
926,340
1,505,838
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
JAKTO TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 22 -
17
Provisions for liabilities
2019
2018
Notes
£
£
Heap provision
84,000
84,000
Deferred tax liabilities
18
524,004
536,754
608,004
620,754
Movements on provisions apart from deferred tax liabilities:
Heap provision
£
At 1 December 2018 and 30 November 2019
84,000
The provision of £84,000 included in the accounts relates to the removal of various soils and hardcore which are currently stored at Oaks Lane, Barnsley. The provision is made up of tipping and haulage charges.
18
Deferred taxation
Deferred tax assets and liabilities are offset where the 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:
Liabilities
Liabilities
2019
2018
Balances:
£
£
Accelerated capital allowances
524,004
536,754
2019
Movements in the year:
£
Liability at 1 December 2018
536,754
Credit to profit or loss
(12,750)
Liability at 30 November 2019
524,004
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
JAKTO TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 23 -
19
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
100,787
62,518
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
100 ordinary shares of £1 each
100
100
21
Financial commitments, guarantees and contingent liabilities
The company entered into various retention and performance bonds during the year ended 30 November 2019. At the year end the value of the bonds outstanding was £nil
(30 November 2018 £46,597).
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2019
2018
£
£
Within one year
216,000
198,000
23
Directors' transactions
At the start of the year one of the directors had an overdrawn loan account of £442,478.
A total of £389,911 was repaid during the year leaving a balance of £52,567 still outstanding at the year end.
T
he loan was on an interest free basis.
Dividends totalling £0 (2018 - £0) were paid in the year in respect of shares held by the company's directors.
24
Ultimate controlling party
Jakto Group Limited is the ultimate holding company owning 100% of the shares in Jakto Transport Limited.
The ultimate controlling party is considered to be the directors Mr N Hellewell and Mr A Hellewell, together they own 100% of the shares in the holding company at the year end.
Jakto Transport Limited is consolidated into the accounts of Jakto Group Limited.
JAKTO TRANSPORT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 24 -
25
Cash generated from operations
2019
2018
£
£
Profit for the year after tax
23,317
183,021
Adjustments for:
Taxation charged
12,776
100,019
Finance costs
32,095
101,801
Loss/(gain) on disposal of property, plant and equipment
30,459
(8,411)
Depreciation and impairment of property, plant and equipment
663,446
705,989
Movements in working capital:
Decrease in inventories
1,028
6,891
Decrease/(increase) in trade and other receivables
2,214,826
(1,266,638)
(Decrease)/increase in trade and other payables
(1,242,779)
695,289
Cash generated from operations
1,735,168
517,961
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