Company Registration No. 06946004 (England and Wales)
JMK BUSINESS SOLUTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
JMK BUSINESS SOLUTIONS LIMITED
COMPANY INFORMATION
Director
Mr S Ermack
Company number
06946004
Registered office
Highbridge House, 93-96 Oxford Road
Uxbridge
UB8 1LU
Auditor
Knowles Warwick Limited
Charlotte House
500 Charlotte Road
Sheffield
S2 4ER
Business address
Highbridge House, 93-96 Oxford Road
Uxbridge
UB8 1LU
Bankers
NatWest
Freepost SC06044
Tay House
G2 4WZ
Barclays Bank PLC
1 World Business Centre
Newall Road
Heathrow Airport
Hounslow
TW6 2RE
JMK BUSINESS SOLUTIONS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 5
Statement of comprehensive income
6
Balance sheet
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 19
JMK BUSINESS SOLUTIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2018
1
The director presents the strategic report for the year ended 31 December 2018.
Fair review of the business
Although the stability of the business has been sound, growth has declined in the year due to the economic climate. Turnover has decreased by 10.4% due to tough trading conditions within our construction sector due to the introduction of the Employment Intermediaries Legislation. The new legislation has had market-wide repercussions.
Although there has been a decrease in turnover our gross margin has remained stable.
Principal risks and uncertainties
Due to the various legislation implemented by HMRC, competition within the industry has squeezed industry margins significantly. Throughout the year, we have maintained our relentless focus on operational efficiency in order to maintain our overall margins. Restructuring our Support and Sales teams in the prior year has helped us to build a sound foundation for years to come.
Development and performance
For mid to long term growth we will continue with the implementation of our strategy to target particular geographies and market sectors, with the intention to diversify further and implement new products and services
As the business embarks on its continued strategic direction, collaboration and knowledge sharing assumes ever greater importance. Our capacity to harness the wide range of skills, knowledge and potential across the business continues to be key to securing our competitive advantage and cement our place as a market leader within our industry.
Mr S Ermack
Director
24 September 2019
JMK BUSINESS SOLUTIONS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2018
2
The director presents his annual report and financial statements for the year ended 31 December 2018.
Principal activities
The principal activity of the company is that of employing workers to be engaged at a series of temporary workplaces through a range of temporary assignments.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr S Ermack
Results and dividends
The results for the year are set out on page 6.
Ordinary dividends were paid amounting to £241
,
000. The director does not recommend payment of a final dividend.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Auditor
In accordance with the company's articles, a resolution proposing that Knowles Warwick Limited be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually 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 S Ermack
Director
24 September 2019
JMK BUSINESS SOLUTIONS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2018
3
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
JMK BUSINESS SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JMK BUSINESS SOLUTIONS LIMITED
4
Opinion
We have audited the financial statements of JMK Business Solutions Limited (the 'company') for the year ended 31 December 2018 which comprise the statement of comprehensive income, the balance sheet, 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 31 December 2018 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
Auditor's
responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the director has 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 director is 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 director's 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 director's report have been prepared in accordance with applicable legal requirements.
JMK BUSINESS SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JMK BUSINESS SOLUTIONS 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 director's
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 director's remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's
r
esponsibilities
s
tatement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the director is responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has 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.
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 him in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Steven Knowles (Senior Statutory Auditor)
for and on behalf of Knowles Warwick Limited
24 September 2019
Chartered Accountants
Statutory Auditor
Charlotte House
500 Charlotte Road
Sheffield
S2 4ER
JMK BUSINESS SOLUTIONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2018
6
2018
2017
Notes
£
£
Turnover
2
45,086,983
50,296,440
Cost of sales
(43,167,421)
(48,070,398)
Gross profit
1,919,562
2,226,042
Administrative expenses
(1,679,038)
(1,864,071)
Operating profit
3
240,524
361,971
Interest receivable and similar income
5
7
-
Profit before taxation
240,531
361,971
Tax on profit
6
(47,711)
(72,352)
Profit for the financial year
192,820
289,619
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
JMK BUSINESS SOLUTIONS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2018
31 December 2018
7
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
8
9,806
7,502
Current assets
Debtors
10
4,163,548
5,202,816
Cash at bank and in hand
248,669
337,036
4,412,217
5,539,852
Creditors: amounts falling due within one year
11
(4,214,101)
(5,312,252)
Net current assets
198,116
227,600
Total assets less current liabilities
207,922
235,102
Capital and reserves
Called up share capital
13
2
2
Profit and loss reserves
15
207,920
235,100
Total equity
207,922
235,102
The financial statements were approved and signed by the director and authorised for issue on 24 September 2019
Mr S Ermack
Director
Company Registration No. 06946004
JMK BUSINESS SOLUTIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2018
8
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2017
2
186,481
186,483
Year ended 31 December 2017:
Profit and total comprehensive income for the year
-
289,619
289,619
Dividends
7
-
(241,000)
(241,000)
Balance at 31 December 2017
2
235,100
235,102
Year ended 31 December 2018:
Profit and total comprehensive income for the year
-
192,820
192,820
Dividends
7
-
(220,000)
(220,000)
Balance at 31 December 2018
2
207,920
207,922
JMK BUSINESS SOLUTIONS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2018
9
2018
2017
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
211,907
540,445
Income taxes paid
(72,352)
(32,460)
Net cash inflow from operating activities
139,555
507,985
Investing activities
Purchase of tangible fixed assets
(7,929)
(6,069)
Interest received
7
-
Net cash used in investing activities
(7,922)
(6,069)
Financing activities
Dividends paid
(220,000)
(241,000)
Net cash used in financing activities
(220,000)
(241,000)
Net (decrease)/increase in cash and cash equivalents
(88,367)
260,916
Cash and cash equivalents at beginning of year
337,036
76,120
Cash and cash equivalents at end of year
248,669
337,036
JMK BUSINESS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
10
1
Accounting policies
Company information
JMK Business Solutions Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Highbridge House, 93-96 Oxford Road, Uxbridge, UB8 1LU.
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.
1.2
Going concern
A
t the time of approving the financial statements
,
t
he director has a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for services net of VAT and trade discounts.
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, 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 are recoverable.
1.4
Tangible fixed assets
Tangible fixed assets
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:
Fixtures, fittings & equipment
33.33% 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 fixed 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.
JMK BUSINESS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
11
1.6
Cash at bank and in hand
Cash at bank and in hand
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.
1.7
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 balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
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.
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.
JMK BUSINESS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
12
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 creditors, 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 creditors
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 creditors 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 though 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.8
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.
1.9
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
JMK BUSINESS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
1
Accounting policies
(Continued)
13
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
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 tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
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 fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Turnover and other revenue
An analysis of the company's turnover is as follows:
2018
2017
£
£
Turnover analysed by class of business
Provision of services
45,086,983
50,296,440
2018
2017
£
£
Other significant revenue
Interest income
7
-
JMK BUSINESS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
2
Turnover and other revenue
(Continued)
14
2018
2017
£
£
Turnover analysed by geographical market
United Kingdom
45,086,983
50,296,440
3
Operating profit
2018
2017
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
6,500
4,950
Depreciation of owned tangible fixed assets
5,625
5,217
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2018
2017
Number
Number
Contracted employees
1,445
1,654
Directors
1
1
1,446
1,655
Their aggregate remuneration comprised:
2018
2017
£
£
Wages and salaries
28,916,418
33,091,482
Social security costs
2,371,055
2,650,298
Pension costs
292,946
101,788
31,580,419
35,843,568
5
Interest receivable and similar income
2018
2017
£
£
Interest income
Other interest income
7
-
JMK BUSINESS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
15
6
Taxation
2018
2017
£
£
Current tax
UK corporation tax on profits for the current period
47,711
72,352
The applicable tax rate has fallen from 20% to 19% in the year due to a fall in the standard corporation tax rate in the UK.
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:
2018
2017
£
£
Profit before taxation
240,531
361,971
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2017: 19.25%)
45,701
69,679
Tax effect of expenses that are not deductible in determining taxable profit
2,448
845
Adjustments in respect of prior years
-
2,296
Permanent capital allowances in excess of depreciation
(1,507)
(468)
Depreciation on assets not qualifying for tax allowances
1,069
-
Taxation charge for the year
47,711
72,352
7
Dividends
2018
2017
£
£
Interim paid
220,000
241,000
JMK BUSINESS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
16
8
Tangible fixed assets
Fixtures, fittings & equipment
£
Cost
At 1 January 2018
16,016
Additions
7,929
At 31 December 2018
23,945
Depreciation and impairment
At 1 January 2018
8,514
Depreciation charged in the year
5,625
At 31 December 2018
14,139
Carrying amount
At 31 December 2018
9,806
At 31 December 2017
7,502
9
Financial instruments
2018
2017
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
4,163,548
5,202,816
Carrying amount of financial liabilities
Measured at amortised cost
2,932,192
3,685,625
10
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
3,241,751
4,284,555
Other debtors
921,797
918,261
4,163,548
5,202,816
JMK BUSINESS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
17
11
Creditors: amounts falling due within one year
2018
2017
£
£
Trade creditors
161,407
246,550
Corporation tax
47,711
72,352
Other taxation and social security
1,234,198
1,554,275
Other creditors
1,781,533
2,646,352
Accruals and deferred income
989,252
792,723
4,214,101
5,312,252
Included in other creditors is an amount of £1,640,862 (2017 - £2,483,352) owed to a factoring company and is secured over the trade debtors of the company.
12
Retirement benefit schemes
2018
2017
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
292,946
101,788
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.
13
Share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
2 Ordinary shares of £1 each
2
2
The company has one class of ordinary share. Each ordinary share is entitled to one vote in any circumstances. Each share has equal rights to dividends. Each share is entitled to participate in a distribution arising from a winding up of the company.
14
Dividends
Since the year end dividends totalling £185,750 have been declared and fully paid.
15
Reserves
Profit and loss reserves
Profit and loss reserve includes all current and prior period retained profits and losses available for distribution.
JMK BUSINESS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
18
16
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2018
2017
£
£
Aggregate compensation
84,000
69,250
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sale of goods
Purchase of goods
2018
2017
2018
2017
£
£
£
£
Companies under common control
9,840,926
7,161,418
9,550
-
Management charges
2018
2017
£
£
Companies under common control
466,812
644,373
The following amounts were outstanding at the reporting end date:
2018
2017
Amounts owed to related parties
£
£
Other related parties
-
13,980
The following amounts were outstanding at the reporting end date:
2017
Balance
Provision
Net
Amounts owed in previous period
£
£
£
Companies under common control
271,069
208,718
62,351
Sales of goods and services to related parties were made on an arms length basis.
Management charges are provided based on a percentage of gross profit plus recharged expenses.
All amounts outstanding at the balance sheet date are unsecured and will be settled by cash. No interest is charged in respect of outstanding amounts.
No guarantees have been given to or received from related par
ties including companies under common control.
JMK BUSINESS SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018
19
17
Directors' transactions
Dividends totalling £220,000 (2017 - £241,000) were paid in the year. Of this amount, £110,000 (2017 - £120,500) were paid in respect of shares held by the company's director.
18
Cash generated from operations
2018
2017
£
£
Profit for the year after tax
192,820
289,619
Adjustments for:
Taxation charged
47,711
72,352
Investment income
(7)
-
Depreciation and impairment of tangible fixed assets
5,625
5,217
Movements in working capital:
Decrease/(increase) in debtors
1,039,268
(1,656,632)
(Decrease)/increase in creditors
(1,073,510)
1,829,889
Cash generated from operations
211,907
540,445
JMK BUSINESS SOLUTIONS LIMITED
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2018
JMK BUSINESS SOLUTIONS LIMITED
DETAILED TRADING AND PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2018
2018
2017
£
£
£
£
Turnover
Sales
45,086,983
50,296,440
Cost of sales
Contractor general expenses
8,264,933
8,447,040
Sales rebates
110,198
143,055
Wages and salaries
28,255,104
32,420,834
Social security costs
2,305,197
2,582,476
Subcontract labour
3,944,443
4,388,324
Staff pension costs defined contribution
287,546
88,669
(43,167,421)
(48,070,398)
Gross profit
4.26%
1,919,562
4.43%
2,226,042
Administrative expenses
(1,679,038)
(1,864,071)
Operating profit
240,524
361,971
Interest receivable and similar income
Other interest received on financial instruments
7
-
7
-
Profit before taxation
0.53%
240,531
0.72%
361,971
JMK BUSINESS SOLUTIONS LIMITED
SCHEDULE OF ADMINISTRATIVE EXPENSES
FOR THE YEAR ENDED 31 DECEMBER 2018
2018
2017
£
£
Administrative expenses
Wages and salaries
661,314
670,648
Social security costs
65,858
67,822
Staff recruitment costs
12,000
9,105
Staff training
3,519
5,240
Staff pension costs defined contribution
5,400
13,119
Management charge
466,812
644,373
Rent
3,167
17,676
Property repairs and maintenance
1,009
4,141
Premises insurance
130,656
111,977
Computer running costs
77,049
34,284
Travelling expenses
60,929
34,570
Legal and professional fees
41,184
33,561
Audit fees
6,500
4,950
Charitable donations
-
2,803
Bank charges
38,993
45,902
Factoring charges
49,810
50,046
Bad and doubtful debts
-
63,651
Printing and stationery
3,453
3,332
Sales and marketing consultancy
25,323
20,895
Telecommunications
7,274
847
Entertaining
12,884
14,805
Sundry expenses
279
5,107
Depreciation
5,625
5,217
1,679,038
1,864,071
2018-12-31
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