REGISTERED NUMBER: 02887007 (England and Wales) |
JEROBOAMS GROUP LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
REGISTERED NUMBER: 02887007 (England and Wales) |
JEROBOAMS GROUP LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 3 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 | to | 7 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Statement of Financial Position | 9 |
Company Statement of Financial Position | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Statement of Cash Flows | 13 |
Notes to the Consolidated Statement of Cash Flows | 14 |
Notes to the Consolidated Financial Statements | 15 | to | 25 |
JEROBOAMS GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Theo Banos BA FCA |
AUDITORS: |
3 Castlegate |
Grantham |
Lincolnshire |
NG31 6SF |
BANKERS: | HSBC Bank Plc |
69 Pall Mall, |
St James', |
London |
SW1Y 5EY |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their strategic report of the company and the group for the year ended 31 March 2023. |
REVIEW OF BUSINESS |
As detailed in the group's statement of comprehensive income on page 8, the group made a profit before tax of £658,711 (2022: £796,588. |
The directors are satisfied with the performance for 2023. The year was unaffected by Covid restrictions, with the hospitality sector benefiting from a strong demand. |
Business revenue increased to £35.5m. Gross profit of £8.7m has increased compared to last year (£7.6m). Within these figures performance varied considerably across the group’s trading channels. Sales to trade customers (hospitality etc) were significantly up on the prior year as these customers were able to reopen following Covid 19 restrictions. Retail shops continued to perform well with social distancing rules being relaxed. |
The group continues to reinvest free cashflow back into the business to build for the future. The group will not be paying a dividend. |
Business net assets remain healthy and have improved to just over £2m. |
DEVELOPMENT AND PERFORMANCE |
The group continually reviews the marketplaces it operates within and is committed to future investment as the economy returns to a more normal situation. The group will invest in areas with the most potential, and where it can see suitable returns. It expects to see a longer-term improvement in returns as the impact of this investment pays off. |
Competition in both the retail and the wholesale markets remain intense; however, the business’s extensive knowledge and experience of the UK wine market will allow the business to continue growing organically. The directors believe there are business opportunities post Covid 19 for well run and financed business such as Jeroboams. |
The directors are pleased with the current balance sheet position which shows both strong net current assets and cash positions. This will allow the company to build on its current business whilst looking out for opportunities for growth as they arise. |
KEY PERFORMANCE INDICATORS |
2023 | 2022 | % inc/(dec) |
£'000 | £'000 |
Revenue | 35,473 | 31,018 | 14.4 |
Gross profit | 8,706 | 7,644 | 13.9 |
Gross profit % | 24.5 | 24.6 |
Net profit before taxation | 659 | 769 | (14.4 | ) |
Earnings before exceptional items, interest, tax, depreciation and amortisation |
1,283 |
1,409 |
(16.6 |
) |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Financial instruments |
The group's operations expose it to a variety of financial risks including the effect of changes interest rates on debts, foreign exchange rates, credit risk and liquidity risks. |
The group's principal financial instruments comprise sterling cash and bank deposits, together with trade debtors and trade creditors that arise directly from its operations |
The main risk arising from the group's financial instruments can be analysed as follows: |
Foreign currency risk |
The group is exposed in its trading operations to the risk of changes in foreign currency exchange rates. The group buys a significant amount of its goods from Europe and these purchases are transacted in Euros. The group enters forward exchange contracts with its bankers in order to protect the business against adverse currency movements in £/Euro. |
Liquidity risk |
The group's policy has been to ensure continuity of funding through arranging funding for operations via medium-term loans and additional revolving credit facilities to aid short-term flexibility. |
Credit risk |
The group's principal financial assets are bank balances and cash which represent the group's maximum exposure to credit risk in relation to financial assets. |
The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The group has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers. |
Brexit and transition |
The continuing Brexit process is not expected to have a significant impact on the group. Whilst all the outcomes are not yet clear, the group expects that any medium to long term implications will remain manageable as it is well funded and has realistic growth plans. |
Covid-19 |
The impact of Covid 19 was still being felt during the financial year. Whilst normality is returning to the group’s markets, the longer-term implications are not certain with a potential change in consumer behaviours, working patterns, and long-term impacts. However, the business with a multi-channel approach, whilst being impacted, is well placed to ride out any future issues. Exceptional costs relating to prudent additional stock provision and movements in bad debts resulting from CV19 have been provided for. |
ON BEHALF OF THE BOARD: |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
CHANGE OF NAME |
The group passed a special resolution on 24 November 2022 changing its name from |
PRINCIPAL ACTIVITY |
The principal activities of the group are that of wine and spirit merchants and the retailing of cheese and fine foods. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
JEROBOAMS GROUP LIMITED |
Opinion |
We have audited the financial statements of Jeroboams Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 Financial Reporting Standard 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 group's and of the parent company affairs as at 31 March 2023 and of the group's 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. |
Basis for opinion |
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 group 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 |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the 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 directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
JEROBOAMS GROUP LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 Statement of Directors' Responsibilities set out on page four, 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 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 group's and the 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
JEROBOAMS GROUP LIMITED |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with directors and other management obtained as part of the work required by auditing standards. We have also discussed with the directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. The potential impact of different laws and regulations varies considerably. |
Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included the identification and testing of unusual material journal entries and challenging management on key estimates, assumptions and judgements made in the preparation of the financial statements. |
Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Alcohol Licensing, Employment laws and Health and Safety regulations. |
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection. This inspection included a review of legal and professional fees for evidence of non-compliance, review of up-to-date alcohol licencing documentation and an assessment of the company’s employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items. |
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. The further removed non-compliance with laws and regulations 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. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of 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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
3 Castlegate |
Grantham |
Lincolnshire |
NG31 6SF |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 35,472,630 | 31,017,763 |
Cost of sales | 26,767,118 | 23,373,847 |
GROSS PROFIT | 8,705,512 | 7,643,916 |
Distribution costs | 1,799,205 | 1,358,238 |
Administrative expenses | 6,237,878 | 5,651,226 |
8,037,083 | 7,009,464 |
668,429 | 634,452 |
Other operating income | 254,253 | 240,555 |
OPERATING PROFIT | 4 | 922,682 | 875,007 |
Exceptional bad debts | 5 | (209,971 | ) | (7,627 | ) |
Exceptional stock provision | 5 | 65,339 | (123,780 | ) |
778,050 | 743,600 |
Loss/(profit) on derivative |
forward contracts | 6 | 12,830 | (108,907 | ) |
765,220 | 852,507 |
Interest payable and similar expenses | 7 | 106,509 | 55,919 |
PROFIT BEFORE TAXATION | 658,711 | 796,588 |
Tax on profit | 8 | 90,952 | 232,511 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 567,759 | 564,077 |
Profit attributable to: |
Owners of the parent | 567,759 | 564,077 |
Total comprehensive income attributable to: |
Owners of the parent | 567,759 | 564,077 |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 55,046 | 129,286 |
Tangible assets | 11 | 966,298 | 655,054 |
Investments | 12 | - | - |
1,021,344 | 784,340 |
CURRENT ASSETS |
Stocks | 13 | 6,635,708 | 6,879,058 |
Debtors | 14 | 4,413,114 | 2,538,904 |
Cash at bank | 1,752,120 | 2,241,889 |
12,800,942 | 11,659,851 |
CREDITORS |
Amounts falling due within one year | 15 | 9,304,637 | 8,406,243 |
NET CURRENT ASSETS | 3,496,305 | 3,253,608 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 4,517,649 | 4,037,948 |
CREDITORS |
Amounts falling due after more than one year | 16 | (2,300,000 | ) | (2,400,000 | ) |
PROVISIONS FOR LIABILITIES | 20 | (96,375 | ) | (84,433 | ) |
NET ASSETS | 2,121,274 | 1,553,515 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 3,750,000 | 3,750,000 |
Share premium | 340,000 | 340,000 |
Retained earnings | (1,968,726 | ) | (2,536,485 | ) |
SHAREHOLDERS' FUNDS | 2,121,274 | 1,553,515 |
The financial statements were approved by the Board of Directors and authorised for issue on 25 September 2023 and were signed on its behalf by: |
Matthew F Tipping - Director |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Share premium |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 | 3,750,000 | (3,100,562 | ) | 340,000 | 989,438 |
Changes in equity |
Total comprehensive income | - | 564,077 | - | 564,077 |
Balance at 31 March 2022 | 3,750,000 | (2,536,485 | ) | 340,000 | 1,553,515 |
Changes in equity |
Total comprehensive income | - | 567,759 | - | 567,759 |
Balance at 31 March 2023 | 3,750,000 | (1,968,726 | ) | 340,000 | 2,121,274 |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 | ( |
) |
Changes in equity |
Balance at 31 March 2022 | ( |
) |
Changes in equity |
Balance at 31 March 2023 | ( |
) |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 595,500 | (1,081,857 | ) |
Interest paid | (106,509 | ) | (55,919 | ) |
Tax paid | (187,441 | ) | (118,938 | ) |
Net cash from operating activities | 301,550 | (1,256,714 | ) |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (9,810 | ) |
Purchase of tangible fixed assets | (609,810 | ) | (245,159 | ) |
Net cash from investing activities | (609,810 | ) | (254,969 | ) |
Cash flows from financing activities |
Loan repayments in year | (75,000 | ) | (75,000 | ) |
Interest paid | (106,509 | ) | (55,918 | ) |
Net cash from financing activities | (181,509 | ) | (130,918 | ) |
Decrease in cash and cash equivalents | (489,769 | ) | (1,642,601 | ) |
Cash and cash equivalents at beginning of year | 2 | 2,241,889 | 3,884,490 |
Cash and cash equivalents at end of year | 2 | 1,752,120 | 2,241,889 |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 658,711 | 796,588 |
Depreciation charges | 373,076 | 423,809 |
Movement in other provisions | 106,239 | 56,693 |
Finance costs | 106,509 | 55,919 |
1,244,535 | 1,333,009 |
Decrease/(increase) in stocks | 243,350 | (1,631,968 | ) |
Increase in trade and other debtors | (1,874,227 | ) | (1,075,465 | ) |
Increase in trade and other creditors | 981,842 | 292,567 |
Cash generated from operations | 595,500 | (1,081,857 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 1,752,120 | 2,241,889 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 2,241,889 | 3,884,490 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.22 | Cash flow | At 31.3.23 |
£ | £ | £ |
Net cash |
Cash at bank | 2,241,889 | (489,769 | ) | 1,752,120 |
2,241,889 | (489,769 | ) | 1,752,120 |
Total | 2,241,889 | (489,769 | ) | 1,752,120 |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
Jeroboams Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - "The financial reporting standard applicable in the United Kingdom and Republic of Ireland ("FRS 102"), and with the Companies Act 2006. The financial statements have been prepared on the historical cost basis except for the modification to a fair value basis for certain assets and financial instruments as specified in the accounting policies below. |
The financial statements are presented in Sterling (£). |
The group financial statements consolidate the financial statements of Jeroboams Group Limited and its subsidiary undertakings drawn up to 31 March each year. The parent company has taken advantage of section 408 of the Companies House Act 2006 and has not included its own Profit and Loss Account in these financial statements. The parent company's loss for the year was £nil (2022: £nil). |
Business Combinations |
Acquisitions of subsidiaries and businesses are accounted for using the purchase method. The cost of the business combination is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquiree plus costs directly attributable to the business combination. |
Any excess between the cost of the business combination and the acquirer's interest in the net fair value of the identifiable assets and liabilities is recognised as goodwill. If the net fair value of the identifiable assets and liabilities exceeds the cost of the business combination the excess is recognised separately on the face of the consolidated statement of financial position immediately below goodwill. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The parent company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK": |
- | the requirements of Section 7 Statement of Cash Flows; |
- |
the requirements of Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
- | the requirements of Section 12 Other Financial Instruments paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A |
The disclosures above are incorporated within these consolidated financial statements. |
Significant judgements and estimates |
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include net realisable value of stock and slow moving stock provisions. |
Investment in subsidiary undertakings |
The consolidated financial statements incorporate the financial statements of the group and entities (including special purpose entities) controlled by the group (its subsidiaries). Control is achieved where the group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
The results of subsidiaries acquired or disposed of during the year are included in the total comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate using accounting policies consistent with those of the parent. All intra-group transactions, balances, income and expenses are eliminated in full on consolidation. |
Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements. |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover represents revenue earned from the sale of goods. |
Turnover from the sale of goods is recognised when the goods are confirmed as available by the supplier and the customer order is confirmed. |
Revenue in respect of En Primeur sales is recognised when invoiced and the amount is payable by the customer. The cost of the goods to be delivered is included in cost of sales and creditors. Payment has usually been made to the supplier before delivery of the goods. Payment on account have been recorded as a reduction in the related creditor. The commercial risk of the goods passes from the company to the customer once ordered and therefore the directors believe it is applicable to recognise En Primeur revenue on invoicing. |
Goodwill |
Intangible assets |
Intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses. |
Website development costs are recognised as an intangible asset when all of the following criteria are demonstrated: |
- | How the website will generate probable future economic benefit. |
- | The ability to use the website. |
- | The ability to measure reliably the expenditure attributable to the website during its development. |
- | The availability of adequate technical, financial and other resources to complete the development and use the website |
Amortisation is charged so as to allocate the cost of intangibles less their residual values over their estimated useful lives using the straight-line method. |
Website development | 5 years |
If there is an indication that there has been a significant change in amortisation rate or residual value of an asset, the amortisation of that asset is revised prospectively to reflect the new expectations. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Fixtures and fittings | 3 - 15 years |
Short leasehold property | Over the length of the lease |
Stocks |
Stocks are valued at the lower of cost, including customs duty, if any, and net realisable value. Included within stocks are goods held by overseas third parties which the company has contracted to purchase. |
Stocks are accounted for on a weighted average cost basis. |
Taxation |
Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date. |
Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated. |
Deferred tax assets are only recognised to the extent that is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profit. |
If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed. |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised when income or expenses from a subsidiary or associate have been recognised, and will be assessed for tax in in a future period, except where: |
- | the company is able to control the reversal of the timing difference; and |
- | it is probable that the timing difference will not reverse in the foreseeable future. |
A deferred tax liability or asset is recognised for the additional tax that will be paid or avoided in respect of assets and liabilities that are recognised in a business combination. The amount attributed to goodwill is adjusted by the amount of deferred tax recognised. |
Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. |
With the exception of changes arising on the initial recognition of a business combination, the tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income). |
Deferred tax liabilities are present within provisions for liabilities and deferred tax assets within debtors. Deferred tax assets and deferred tax liabilities are offset only if: |
- | the company has a legally enforceable right to set off current tax assets against current tax liabilities; and |
- | the deferred tax assets and deferred tax liability relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Short-term employee benefits |
Short-term employment benefits are recognised as an expense in the period in which they are incurred. |
Pension contributions |
The company makes pension contributions to individuals' personal pension plans. These contributions are charged to the statement of comprehensive income in the year in which they are incurred. |
Leased assets and obligations |
All leases are "operating leases" and the annual rentals are charged to the statement of comprehensive income on a straight line basis over the lease term. |
The aggregate benefit of lease incentives are recognised as a reduction to the expense recognised over the lease term on a straight line basis. |
Derivative financial instruments |
The group's primary objective in holding derivative financial instruments is to manage currency exchange rate risk. The group is exposed to currency exchange rate risk due to a significant proportion of its purchases being denominated in non-Sterling currencies. The group utilises forward currency contracts to offset this risk, all such contracts mature within 12 months. These forward contracts are recognised at fair value on each reporting date with any gains or losses being reported in the statement of comprehensive income. |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Impairment of assets |
At each reporting date, tangible fixed assets not carried at fair value, are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected assets (or group of related assets) is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the statement of comprehensive income. |
Similarly, at each reporting date, stocks are assessed for impairment by comparing the amount of each item of stock (or group of similar items) with its selling price less costs to complete and sell. If an item of stock (or group of similar items) is impaired, its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in the statement of comprehensive income. |
If an impairment loss subsequently reverses, the carrying amount of the assets (or group of related assets) is increased to the revised estimate of its recoverable amount (selling price less costs to complete and sell, in the case of stocks), but not in the excess of the amount that would have been determined had no impairment loss been recognised for the asset (group of related assets) in prior years. A reversal of an impairment loss is recognised immediately in the statement of comprehensive income. |
Provisions for liabilities |
Provisions are recognised when the group has a present obligation (legal or constructive) as a result of a past event, its is probable that the group will be required to settle the 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 end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. |
Functional currency and presentation currency |
The individual financial statements of each group entity are presented in the currency of the primary economic environment in which the entity operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial position are presented in Sterling (£). |
Transactions and balances |
In preparing the financial statements of the individual entities, transactions in currencies other than the functional currency of the individual entities (foreign currencies) are recognised at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. |
Exchange differences are recognised in the statement of comprehensive income in the period in which they arise. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 3,428,601 | 3,253,096 |
Social security costs | 384,674 | 329,839 |
Other pension costs | 259,942 | 59,325 |
4,073,217 | 3,642,260 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Office and management | 32 | 31 |
Shops | 38 | 30 |
Distribution | 3 | 2 |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration | 568,725 | 553,416 |
Directors' pension contributions to money purchase schemes | 26,452 | 29,246 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 182,177 | 158,819 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 298,566 | 366,711 |
Goodwill amortisation | 45,000 | 30,000 |
Website development amortisation | 29,240 | 27,873 |
Foreign exchange differences | (280,507 | ) | (269,360 | ) |
Operating lease payments | 407,750 | 586,597 |
Auditors remuneration - audit services | 28,485 | 24,530 |
Auditors remuneration - other services | 6,500 | 6,500 |
5. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Exceptional bad debts | (209,971 | ) | (7,627 | ) |
Exceptional stock provision | 65,339 | (123,780 | ) |
(144,632 | ) | (131,407 | ) |
The company has increased the bad debt provision in relation to a very small number of trade customers that are experiencing cash flow difficulties due to current inflationary pressures. |
6. | LOSS/(PROFIT) ON DERIVATIVE |
FORWARD CONTRACTS |
2023 | 2022 |
£ | £ |
Loss/(profit) on derivative |
forward contracts | 12,830 | (108,907 | ) |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Interest payable to related parties | 106,509 | 55,919 |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 58,073 | 166,521 |
Adjustment re previous years | 20,937 | 44,964 |
Total current tax | 79,010 | 211,485 |
Deferred tax | 11,942 | 21,026 |
Tax on profit | 90,952 | 232,511 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 658,711 | 796,588 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
125,155 |
151,352 |
Effects of: |
Expenses not deductible for tax purposes | 12,628 | 15,179 |
Capital allowances in excess of depreciation | (44,890 | ) | - |
Depreciation in excess of capital allowances | - | 5,134 |
Utilisation of tax losses | (8,344 | ) | - |
Adjustments to tax charge in respect of previous periods | 20,937 | 44,964 |
Movement in deferred tax | 11,942 | 21,026 |
Other | (26,476 | ) | (5,144 | ) |
Total tax charge | 90,952 | 232,511 |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Website |
Goodwill | development | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
and 31 March 2023 | 150,000 | 349,589 | 499,589 |
AMORTISATION |
At 1 April 2022 | 105,000 | 265,303 | 370,303 |
Amortisation for year | 45,000 | 29,240 | 74,240 |
At 31 March 2023 | 150,000 | 294,543 | 444,543 |
NET BOOK VALUE |
At 31 March 2023 | - | 55,046 | 55,046 |
At 31 March 2022 | 45,000 | 84,286 | 129,286 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Short | and |
leasehold | fittings | Totals |
£ | £ | £ |
COST |
At 1 April 2022 | 1,644,311 | 1,552,038 | 3,196,349 |
Additions | 345,605 | 264,205 | 609,810 |
At 31 March 2023 | 1,989,916 | 1,816,243 | 3,806,159 |
DEPRECIATION |
At 1 April 2022 | 1,348,435 | 1,192,860 | 2,541,295 |
Charge for year | 150,557 | 148,009 | 298,566 |
At 31 March 2023 | 1,498,992 | 1,340,869 | 2,839,861 |
NET BOOK VALUE |
At 31 March 2023 | 490,924 | 475,374 | 966,298 |
At 31 March 2022 | 295,876 | 359,178 | 655,054 |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
PROVISIONS |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
13. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Finished goods | 6,635,708 | 6,879,058 |
14. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 3,893,167 | 2,135,470 |
Amounts owed by group undertakings | - | - |
Other debtors | 208,302 | 167,240 |
Derivative financial asset | - | 7,702 | - | - |
Corporation tax | - | 17 |
Prepayments and accrued income | 311,645 | 228,475 |
4,413,114 | 2,538,904 |
Amounts falling due after more than one year: |
Amounts owed by group undertakings | - | - |
Aggregate amounts | 4,413,114 | 2,538,904 |
Included within company debtors is £2,368,360 (2022: £2,285,990) which is due in more than one year. This amount is separately disclosed in the current year. |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade creditors | 3,365,144 | 2,454,520 |
Amounts owed to group undertakings | 100,000 | 75,000 |
Taxation | 58,073 | 166,521 |
Other taxes and social security | 521,751 | 534,698 |
Other creditors | 2,883,922 | 3,151,642 |
Derivative financial |
liabilities | 5,129 | - | - | - |
Accruals and deferred income | 2,370,618 | 2,023,862 |
9,304,637 | 8,406,243 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts owed to group undertakings | 2,300,000 | 2,400,000 | 2,300,000 | 2,400,000 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 597,113 | 492,750 |
Between one and five years | 1,270,998 | 788,408 |
In more than five years | 461,330 | 71,040 |
2,329,441 | 1,352,198 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2023 | 2022 |
£ | £ |
Group loan | 2,400,000 | 2,475,000 |
The loan is secured by a fixed and floating charge over the group's assets. |
19. | FINANCIAL INSTRUMENTS |
The group has the following financial instruments: |
2023 | 2022 |
£ | £ |
Financial assets at fair value through profit or loss |
Derivative financial instrument | - | 7,702 |
Financial assets that are debt instruments measured at amortised cost |
Trade debtors | 3,893,167 | 2,135,470 |
Other debtors | 208,302 | 167,240 |
Financial liabilities at fair value through profit or loss |
Derivative financial instrument | 5,129 | - |
Financial liabilities measured at amortised cost |
Trade creditors | 3,365,144 | 2,454,520 |
Other creditors | 2,883,922 | 3,151,642 |
Amounts owed to group undertakings | 2,400,000 | 2,475,000 |
The income, expenses, net gains and net losses attributable to the company's financial instruments are summarised as follows: |
Net (gains) and losses (including changes in fair value) |
Financial assets at fair value through profit or loss | 12,830 | (108,907 | ) |
Financial liabilities measured at fair value through profit or loss | - | - |
The total interest income and interest expense for financial assets and financial liabilities that are not measured at fair value through profit or loss was £nil (2022: £nil) and £106,509 (2022: £55,918) respectively. |
Derivative financial instruments |
The group enters into forward foreign currency contracts to mitigate the exchange rate risk for certain foreign currency debtors. At 31 March 2023, the outstanding contracts all mature within 9 months of the year end. The group is committed to buy £4,069,270 (2022: £3,589,145) in euros at a rate recorded in each contract. |
The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key assumptions used in valuing the derivatives are the forward exchange rates for GBP:EUR. |
JEROBOAMS GROUP LIMITED (REGISTERED NUMBER: 02887007) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
20. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 96,375 | 84,433 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2022 | 84,433 |
Charge to statement of | 11,942 |
comprehensive income |
Balance at 31 March 2023 | 96,375 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 3,750,000 | 3,750,000 |
22. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Other related parties |
The group paid rent to a company in which one of the directors has a material interest amounting to £166,182 (2022: £165,000). |
Key management personnel compensation is considered to be the same as reported under directors' remuneration disclosed in note 3. |
23. | ULTIMATE CONTROLLING PARTY |
The ultimate parent company is Holland Trading Limited, a company incorporated in Bermuda. The ultimate controlling party is Peter C Rich. |