Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2019
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GOJUMPIN LIMITED
COMPANY INFORMATION
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GOJUMPIN LIMITED
CONTENTS
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GOJUMPIN LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
In 2019, the trampoline park market enjoyed a period of stability and growth. The number of parks in the UK remained relatively constant at around 180 for most of the year, having fallen from 220 at its peak in early 2018.
At Jump In, the Directors used this period of stability to focus on cost optimisation and product evolution. The gradual development of a Central Operations Management function has enabled the centralisation of staff scheduling, reporting, and merchandise ordering. This has driven savings in staff costs and other costs of sales. Further centralisation of food and drink ordering is underway in 2020. This centralisation of administration has not only led to better cost optimisation but enabled site management to focus on team development and customer service. Professional mystery shop audits, carried out at each site on a monthly basis, indicate a gradual improvement in service execution through the year. General business cost control has been supported through the implementation of a new purchasing system in the fourth quarter, with structured authority limits and systemised approval paths. Substantial investments were made at Enfield and Aberdeen to add indoor climbing and expanded soft play to the customer offering and allow rebranding of each site as an “Adventure Park”. This has increased repeat visits and the size of the customer pool at both sites, and further roll-out of the Adventure Park concept is planned. Smaller scale investments in specific marketable features and branding upgrades were made at other sites. A change of digital marketing agency early in the year kicked off a period of marketing optimisation under a new Head of Sales and Marketing and return on advertising spend improved multi-fold in both Social and PPC marketing channels. The Group’s revenues increased year on year from £10.1m to £11.3m, which in combination with cost savings resulted in an operating profit of £346k compared to a loss of £1.2m in 2018.
The Directors see significant growth opportunity through product evolution, acquisition and limited organic openings. The strategy is to progress the portfolio towards the higher yielding Adventure Park model whilst pursuing good value acquisitions. To that end, the Directors have secured the acquisition of the most profitable site of one of its insolvent competitors in Ipswich. A new 10 year lease is expected to complete in October 2020 for this site.
The greatest risk is posed by Covid-19 and the associated Government restrictions which impact revenue. At time of writing a substantial financial package has been secured with Bank and Shareholder support to sustain the business through adverse trading in 2020 and early 2021. As at September 2020, trading has been in line or above the expectations forecast in securing the support package. Longer term risks are associated with the performance of the British economy in the aftermath of Covid-19 and Brexit. There is likely to be reduced consumer spending for the duration of any recession. However, the relatively low purchase cost for activities in the parks, and the social prioritisation of children’s welfare, provide some resilience to macroeconomic performance.
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GOJUMPIN LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
The operating profit for the year was £346k. The impact of in-year improvements can be seen through trailing 12 month EBITDA which reached £2.1m by end February 2020.
Service performance, spend per head, repeat visitation and marketing performance indicators all showed positive improvement throughout the year.
This report was approved by the board
and signed on its behalf.
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GOJUMPIN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2019
The directors present their report and the financial statements for the year ended 31 December 2019.
The directors who served during the year were:
The directors are responsible for preparing the Group strategic report, the Directors' report and the
consolidated
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 Group and Parent company audited financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102'). Under company law the directors must not approve the audited 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 audited financial statements, the directors are required to:
∙
select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙
make judgments 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 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 the Group and to 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.
The profit for the year, after taxation, amounted to £
11,902
(2018 -
loss
£
1,510,248
)
.
The directors have not recommended a dividend.
The Directors see significant growth opportunity through product evolution, acquisition and limited organic openings. The strategy is to progress the portfolio towards the higher yielding Adventure Park model whilst pursuing good value acquisitions. To that end, the Directors have secured the acquisition of the most profitable site of one of its insolvent competitors in Ipswich. A new 10 year lease is expected to complete in September 2020 for this site.
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GOJUMPIN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
All employees have the opportunity for training, career development and promotion in accordance with their skills and ability. The company keeps all employees informed of matters affecting them through daily and weekly site meetings and staff notice displays and take account of their views.
The company recognises its responsibility under the Disability Discrimination Act 1995 and has continued to ensure that disabled employees are given consideration on an equal basis with other candidates in respect of all areas of employment, including recruitment, training, career development and promotion. We endeavour to promote continuing employment and where necessary, arrange training for employees who have become disabled during their employment. The company has implemented a number of detailed policies to all aspects of personnel matters including: - Equal opportunities policy - Health and safety policy - Long term sickness policy The company has long established fair employment practices in the recruitment, selection, retention and training of disabled staff in accordance with the company's equal opportunities policy.
Each of the persons who are
directors at the time when this Directors' report is approved has confirmed that:
Subsequent to the year end the decision was made to close the site at Tonbridge resulting in exit expenses of circa £30k and impairment of fixed assets of £340k
In May 2020 there was a variation to the CVA agreement resulting in the removal of the obligation to pay circa £840k of payments into the CVA fund over the remainder of the original term of the CVA. The company has also secured additional debt and equity to assist the business in combating the effects of Covid-19 and to support the acquisition of a new site. The company is taking advantage of government support packages and has recently confirmed that it is eligible to apply the new 5% vat rate.
On 1 April 2020 Ashcroft Partnership LLP demerged its business from Berg Kaprow Lewis LLP. As a result Berg Kaprow Lewis LLP resigned as auditors and the directors have appointed Ashcroft Partnership LLP as auditor in their place.
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GOJUMPIN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
This report was approved by the board and signed on its behalf.
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GOJUMPIN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GOJUMPIN LIMITED
We have audited the financial statements of GoJumpin Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2019, which comprise the Group Statement of comprehensive income, the Group and Company Statements of financial position, the Group Statement of cash flows, the Group and Company Statement of changes in equity
and the related notes, 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:
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 United Kingdom, including the Financial Reporting Council'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.
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 Group's or the parent 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 Auditors' 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
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GOJUMPIN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GOJUMPIN LIMITED (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
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 Directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
As explained more fully in the Directors' responsibilities statement on page 3, 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 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.
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GOJUMPIN LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GOJUMPIN LIMITED (CONTINUED)
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 Auditors' 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:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our Auditors' report.
This report is made solely to the Company's members
in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' 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 for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditor
Heydon Lodge
Flint Cross
Newmarket Road
Heydon
Hertfordshire
SG8 7PN
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GOJUMPIN LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2019
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GOJUMPIN LIMITED
REGISTERED NUMBER:
09334235
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2019
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GOJUMPIN LIMITED
REGISTERED NUMBER:
09334235
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(CONTINUED)
AS AT
31 DECEMBER 2019
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 19 to 43 form part of these financial statements.
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GOJUMPIN LIMITED
REGISTERED NUMBER:
09334235
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2019
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GOJUMPIN LIMITED
REGISTERED NUMBER:
09334235
COMPANY STATEMENT OF FINANCIAL POSITION
(CONTINUED)
AS AT
31 DECEMBER 2019
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 19 to 43 form part of these financial statements.
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GOJUMPIN LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2019
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GOJUMPIN LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2019
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GOJUMPIN LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2019
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GOJUMPIN LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
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GOJUMPIN LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2019
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Gojumpin Limited (the 'Company') and its subsidiaries (together "the Group") operate a number of trampoline parks across the UK.
The Company is a private company limited by shares and is incorporated in England and Wales. The company registration number is 09334235. The address of its registered office is Meteor House, Manor Way, Borehamwood, England, WD6 1QQ.
2.
Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
In considering the appropriate basis on which to prepare the financial statements, the directors are required to consider whether the Group can continue in operational existence for the foreseeable future. The 2019 trading performance was strong and January/ February 2020 performance was stronger still, reflecting improvements made throughout 2019. In May 2020 the company obtained creditor agreement to an early end to the Company Voluntary Arrangement set up in 2018. This was done in parallel with agreement to additional financing from Santander UK Plc and Shareholders to support the business through the impacts of Covid-19. The directors regularly review the company’s cash requirements and whilst Covid-19 creates a high degree of uncertainty, the directors are confident that through these arrangements, the company has sufficient cash and funding facilities, based on reasonable expectations of future trading, to prepare these accounts on a Going Concern basis.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Turnover is recognised by the Group in respect of consideration earned for goods or services provided exclusive of VAT and trade discounts and is recognised at the time the goods and/or services are provided.
Turnover is attributable to trampoline activities, sale of socks and cafe sales.
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
At inception, the Group assesses agreements that transfer the right to use assets. The assessment considers whether the arrangement is, or contains, a lease based on the substance of the arrangement.
(i) Finance leased asset s and hire purchase Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as finance leases. Assets obtained under hire purchase contracts and finance leases are capitalised at commencement of the lease as tangible fixed assets at the fair value of the leased asset or, if lower, the present value of the minimum lease payments calculated using the interest rate implicit in the lease. Incremental direct costs, incurred in negotiating and arranging the lease, are included in the cost of the asset. Assets acquired by finance lease are depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are assessed for impairment at each reporting date. Assets acquired by hire purchase are depreciated over their useful lives.
The capital element of finance lease obligations is recorded as a liability on inception of the arrangement. Lease payments are apportioned between capital repayment and finance charge, using the effective interest rate method, to produce a constant rate of charge on the balance of the capital repayments outstanding.
(ii) Operating leases Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Rentals under operating leases are charged to the Consolidated statement of income on a straight-line basis over the period of the lease. (iii) Lease incentives Incentives received to enter into a finance lease reduce the fair value of the asset and are included in the calculation of present value of minimum lease payments. Incentives received to enter into an operating lease are credited to the Consolidated statement of income, to reduce the lease expense, on a straight-line basis over the period of the lease.
Finance costs are charged to the Consolidated statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in the Consolidated statement of comprehensive income in the year in which they are incurred.
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
The company provides share-based payments to certain employees.
Equity-settled arrangements are measured at fair value (excluding the effect on non-market based vesting conditions) at the date of the grant. The fair value is expensed on a straight-line basis over the vesting period. The amounts recognised as an expense are adjusted to reflect the actual number of share options that will vest. Where equity-settled arrangements are modified, and are of benefit to the employee, the incremental fair value is recognised over the period from the date of modification to date of vesting. Where a modification is not beneficial to the employee there is no change to the charge for share-based payment. Settlements and cancellations are treated as an acceleration of vesting and the unvested amount is recognised immediately in the Consolidated statement of comprehensive income. Current or deferred taxation assets and liabilities are not discounted. (i) Current tax Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end in the countries where the Group operates and generates income.
(ii) Deferred tax
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that: - The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and - Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
The Group provides a range of benefits to employees, including annual bonus arrangements and paid holiday arrangements.
(i) Short term benefits Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received. (ii) Annual bonus plan The Group operates a number of annual bonus plans for employees. An expense is recognised in the Consolidated statement of income when the Group has a legal or constructive obligation to make payments under the plans as a result of past events and a reliable estimate of the obligation can be made.
The Group discloses transactions with related parties which are not wholly owned within the same Group.
Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.
Goodwill
Development costs
Development costs represent Computer Software recognised at cost where there is a future economic benefit. Subsequent to initial recognition, Computer Software is measured at cost less accumulated amortisation and accumulated impairment losses. Computer Software is amortised on a straight line basis to the Consolidated statement of comprehensive income over its useful economic life.
The estimated useful lives range as follows:
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated statement of comprehensive income.
Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
Investments in subsidiaries are measured at cost less accumulated impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Page 23
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Consolidated statement of comprehensive income in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
Dilapidations provisions
As part of the Group’s property leasing arrangements, there is an obligation to repair damages which incur during the life of the lease, such as wear and tear. The cost is charged to the Consolidated statement of income as the obligation arises. The provision is expected to be utilised between 2015 and 2030 as the leases terminate.
Page 24
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
2.
Accounting policies (continued)
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities.
(i) Financial assets Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the Consolidated statement of income and retained earnings. (ii) Financial liabilities Basic financial liabilities, including trade and other creditors are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.
Page 25
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of financial position date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. (i) Useful economic lives of tangible fixed assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the tangible fixed assets, and accounting policy note 2.13 for the useful economic lives for each class of assets. (ii) Share based payments The Company's employees have been granted share options during the year. The value of the share options granted has been deemed by the directors to be not material to these financial statements. (iii) Provisions Provision is made for dilapidations and contingencies. These provisions require management’s best estimate of the costs that will be incurred based on legislative and contractual requirements. In addition, the timing of the cash flows and the discount rates used to establish net present value of the obligations require management’s judgement. See note 23 for the provision balance at the year end. (iv) Creditors Voluntary Agreement There was a successful creditors agreement during 2018. This resulted in managements best estimate of liabilities incurred and outstanding at the CVA date. The discount rates used to establish net present values of the obligations require management's judgement.
Page 26
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Page 27
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Page 28
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Page 29
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
The Group has estimated tax losses carried forward of £4,218,750
(2018: £4,589,200)
. A deferred tax asset of £459,718
(2018: £726,450)
has not been recognised as a pattern of sustainable profits has not yet been established.
Page 30
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The loss after tax of the parent Company for the year was £
Page 31
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
13.
Intangible assets (continued)
Page 32
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Page 33
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
14.
Tangible fixed assets (continued)
Page 34
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Page 35
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Page 36
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Page 37
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Page 38
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Page 39
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Page 40
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £50,539 (2018 - £48,405). Contributions totaling £9,648 (2018 - £6,349) were payable to the fund at the reporting date and are included in creditors.
In 2018 the company advanced one of the directors a loan totalling £23,947 of which £3,947 was included within current assets and £20,000 included within non-current assets.
The loan was written off in full during the year ended 31 December 2019.
Page 41
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
In May 2020 there was a variation to the CVA agreement resulting in the removal of the obligation to pay circa £840k of payments into the CVA fund over the remainder of the original term of the CVA. The company has also secured additional debt and equity to assist the business in combating the effects of Covid-19 and to support the acquisition of a new site. The company is taking advantage of government support packages and has recently confirmed that it is eligible to apply the new 5% vat rate.
There is no ultimate controlling party.
Page 42
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GOJUMPIN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
Page 43
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