Company registration number 13397564 (England and Wales)
JOHN FREDERICKS PLASTICS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2022
JOHN FREDERICKS PLASTICS GROUP LIMITED
COMPANY INFORMATION
Director
Mr M Dicconson
(Appointed 14 May 2021)
Company number
13397564
Registered office
Lindley Moor Road
Huddersfield
HD3 3RW
Auditor
Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
JOHN FREDERICKS PLASTICS GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Director's responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
JOHN FREDERICKS PLASTICS GROUP LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 1 -
The director presents the strategic report for the period ended 31 October 2022.
Fair review of the business
Principal activity
The company was incorporated on 14 May 2021 as a vehicle for the purchase of John Fredericks Plastics Limited by M Dicconson. Its principal activity is that of an ultimate holding company. The group’s main activity continues to be the manufacture and distribution of double glazed UPVC & aluminium doors, windows and conservatories.
Business review
The financial year ending October 31
st
, 2022, was a challenging year for UK manufacturing businesses with significant raw material price volatility, labour shortages and increases in the general running costs associated with a company our size. To maintain margin levels and to allow us to continue our program of capital investment in the business, wherever possible these prices were passed on to our customers.
The group’s long-term strategy of structured profitable and sustainable growth through a combination of investment in machinery, IT and staff with a solid commitment to exceptional customer service and product innovation, has resulted in a satisfactory financial performance. At John Fredericks Plastics Limited, turnover at £18m was 11% higher than 2021 and tight management control of costs resulted in profit before tax of £1.78m which was a 51% improvement on 2021. Furthermore, a strong focus on fiscal control of debtors and the increased use of SAP in our stock control systems has ensured the increase in profitability has fed through into cashflow.
John Fredericks Plastics Group Limited’s post-acquisition turnover was £14.7m with a profit before tax of £1.60m. At the balance sheet date there were no bank borrowings.
Principal risks and uncertainties
The Director has considered the principal risks and uncertainties during the coming year, many of which are driven by factors which the Director either cannot control, or which are difficult to predict. However, diligent monitoring and swift reaction to adverse factors both act to minimise the potential impact on the business.
The key business risks affecting the Group are considered to be: ‑
-
The performance of the UK economy. This is monitored constantly by the Director to enable the Group to react quickly as possible to changed circumstances.
-
Cashflow and liquidity risk is managed and minimised by diligent management of the credit control function and credit terms are strictly enforced. Additionally, the wide spread of customers reduces the financial impact of the risk.
-
A shortage of labour and increases in staff cost continue to be monitored and actioned accordingly by means of increasing our sales price to attract new staff and retain the existing members.
-
The UPVC product industry is extremely competitive, and the Group continually adjusts its product portfolio and pricing structures to ensure it maintains it market share and safeguards margins.
-
Commodity price risk. The Director monitors prices and take action to fix prices, although its ability to do so in the current financial year has been severely limited.
-
The total turnover of the Group for the year has been derived from its principal activity wholly undertaken in the United, Kingdom, and sees currency fluctuations as a result of its purchasing requirements as its main Brexit risk.
-
Credit risk. The Director requires appropriate credit checks on all potential customers.
JOHN FREDERICKS PLASTICS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 2 -
Key performance indicators
The Director considers that the key financial indicators of the business are turnover, operating profit and bank loans and overdrafts.
As the group has only traded since January 2022, there are no prior year comparatives, but the indicators and comparison with 2021 and prior years for John Fredericks Plastics Limited, the group’s trading entity may be summarised as follows: ‑
Other performance indicators
An important non‑financial key performance indicator ("KPI") is the reportable accidents per employee of which there were none in the current or prior period.
Future developments
The group’s long-term business strategy, continues to be striving to be a customer-focused, innovative and efficient manufacturer of PVC-U and aluminium windows/doors. We employ our continuous development strategy to improve and increase the efficiency of each element of our business. To maximise our profitability, we strive to reduce wastage, improve factory processes and continually upgrade our IT systems. We continue to develop and improve our product range and bespoke marketing package and are constantly offering additional services to customers, enhancing the relationship and strengthening customer retention.
We continue to invest in new machinery, have further upgraded the delivery vehicle fleet and have initiated numerous new IT projects, all to increase capacity whilst ensuring we have the infrastructure to grow our business in a sustainable and structured manner.
The Home Improvement market generally remains buoyant, but there has been a slowdown since the end of 2022. Challenges in the supply chain and labour pool are still evident. Raw material price volatility is continually monitored, and sales prices adjusted accordingly to ensure margin is maintained. The addition of “Energy and Freight” surcharges because of gas/electricity and fuel costs rising alarmingly over the last year have been quantified and passed on to customers at an appropriate level.
Mr M Dicconson
Director
16 February 2023
JOHN FREDERICKS PLASTICS GROUP LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 3 -
The director presents his report and financial statements for the period ended 31 October 2022.
Principal activities
The principal activity of the company during the period was an ultimate holding company.
The principal activity of the group during the period was the manufacture and distribution of double glazed UPVC doors, windows and conservatories.
Results and dividends
The results for the period are set out on page 8
Ordinary dividends were paid amounting to £170,000. The director does not recommend payment of a further dividend.
Director
The director who held office during the period and up to the date of signature of the financial statements was as follows:
Mr M Dicconson
(Appointed 14 May 2021)
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its director during the period. These provisions remain in force at the reporting date.
Auditor
Ensors Accountants LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
As far the 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 director individually has taken all the necessary steps that he ought to have taken as director in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
Going concern
The group has continued to trade profitably after the balance sheet date and expects this to continue for the foreseeable future.
The directors have reviewed the company and group’s forecasts through to October 2024 to assess the level of finance required. In their consideration of going concern, the directors have reviewed the cash forecasts and revenue projections, which they believe are based on prudent market data and past experience. Forecasts for the years to October 2023 and October 2024 show that the company and group will remain profitable and there is sufficient headroom in the available funding facility to continue as a going concern and meet its liabilities as they fall due.
JOHN FREDERICKS PLASTICS GROUP LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 4 -
On behalf of the board
Mr M Dicconson
Director
16 February 2023
JOHN FREDERICKS PLASTICS GROUP LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 5 -
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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the
;
-
prepare the
on the going concern basis unless it is inappropriate to presume that the
group and
company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
JOHN FREDERICKS PLASTICS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JOHN FREDERICKS PLASTICS GROUP LIMITED
- 6 -
Opinion
We have audited the
financial statements of
John Fredericks Plastics Group Limited
(the 'parent company') and its subsidiaries (the 'group') for the period ended 31 October 2022 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements,
including
significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 2022 and of the group's profit for the period 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
group and
parent 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
In auditing the financial statements, we have concluded that the director's 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
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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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 our audit
:
-
the information given in the strategic report and the director's
r
eport for the financial period 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.
JOHN FREDERICKS PLASTICS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JOHN FREDERICKS PLASTICS GROUP LIMITED
- 7 -
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
their
environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report or the director's
r
eport
.
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:
-
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 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
parent
company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent 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
.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
-
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the
company and group
operates in and how the company
and group
are complying with the legal and regulatory framework;
-
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
-
audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness;
-
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud;
-
reviewed and challenged accounting estimates to ensure no indication of management bias.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
JOHN FREDERICKS PLASTICS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JOHN FREDERICKS PLASTICS GROUP LIMITED
- 8 -
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 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.
Barry Gostling (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP
20 February 2023
Chartered Accountants
Statutory Auditor
Connexions
159 Princes Street
Ipswich
IP1 1QJ
JOHN FREDERICKS PLASTICS GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 9 -
Period
ended
31 October
2022
Notes
£
Turnover
3
14,773,044
Cost of sales
(10,627,315)
Gross profit
4,145,729
Administrative expenses
(2,435,060)
Operating profit
4
1,710,669
Interest payable and similar expenses
8
(68,040)
Profit before taxation
1,642,629
Tax on profit
9
(324,715)
Profit for the financial period
1,317,914
Profit for the financial period is all attributable to the owners of the parent company.
Total comprehensive income for the period is all attributable to the owners of the parent company.
JOHN FREDERICKS PLASTICS GROUP LIMITED
GROUP BALANCE SHEET
AS AT 31 OCTOBER 2022
2022-10-31
- 10 -
2022
Notes
£
£
Fixed assets
Negative goodwill
11
(131,490)
Other intangible assets
11
3,179
Total intangible assets
(128,311)
Tangible assets
12
1,488,085
1,359,774
Current assets
Stocks
15
1,111,459
Debtors
16
2,235,349
Cash at bank and in hand
822,887
4,169,695
Creditors: amounts falling due within one year
17
(3,317,512)
Net current assets
852,183
Total assets less current liabilities
2,211,957
Creditors: amounts falling due after more than one year
18
(679,927)
Provisions for liabilities
Provisions
20
40,871
Deferred tax liability
21
335,745
(376,616)
Net assets
1,155,414
Capital and reserves
Called up share capital
23
7,500
Profit and loss reserves
1,147,914
Total equity
1,155,414
The financial statements were approved and signed by the director and authorised for issue on 16 February 2023
16 February 2023
Mr M Dicconson
Director
Company registration number 13397564 (England and Wales)
JOHN FREDERICKS PLASTICS GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2022
31 October 2022
- 11 -
2022
Notes
£
£
Fixed assets
Investments
13
1,009,170
Current assets
Cash at bank and in hand
50,000
Creditors: amounts falling due within one year
17
(731,535)
Net current liabilities
(681,535)
Net assets
327,635
Capital and reserves
Called up share capital
23
7,500
Profit and loss reserves
320,135
Total equity
327,635
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s profit for the year was £490,135.
The financial statements were approved and signed by the director and authorised for issue on 16 February 2023
16 February 2023
Mr M Dicconson
Director
Company registration number 13397564 (England and Wales)
JOHN FREDERICKS PLASTICS GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 14 May 2021
-
Period ended 31 October 2022:
Profit and total comprehensive income for the period
-
1,317,914
1,317,914
Issue of share capital
23
7,500
-
7,500
Dividends
10
-
(170,000)
(170,000)
Balance at 31 October 2022
7,500
1,147,914
1,155,414
JOHN FREDERICKS PLASTICS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 14 May 2021
-
Period ended 31 October 2022:
Profit and total comprehensive income for the period
-
490,135
490,135
Issue of share capital
23
7,500
-
7,500
Dividends
10
-
(170,000)
(170,000)
Balance at 31 October 2022
7,500
320,135
327,635
JOHN FREDERICKS PLASTICS GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 14 -
2022
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
1,045,521
Interest paid
(68,040)
Income taxes paid
(401,423)
Net cash inflow/(outflow) from operating activities
576,058
Investing activities
Purchase of business
552,291
Purchase of intangible assets
(16,270)
Purchase of tangible fixed assets
(1,040,207)
Net cash used in investing activities
(504,186)
Financing activities
Proceeds from issue of shares
5,000
Payment of finance leases obligations
916,015
Dividends paid to equity shareholders
(170,000)
Net cash generated from/(used in) financing activities
751,015
Net increase in cash and cash equivalents
822,887
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
822,887
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 15 -
1
Accounting policies
Company information
John Fredericks Plastics Group Limited (“the company”)
is a
private
limited company domiciled and incorporated in
England and Wales
.
The registered office is
Lindley Moor Road, Huddersfield, HD3 3RW.
The group consists of John Fredericks Plastics Group Limited and all of its subsidiaries.
1.1
Reporting period
The reporting period end was extended to 31 October 2022 from the company's incorporation date of 14 May 2021. The period end was extended in order to align the Company's year end with it's trading subsidiary. This is the first set of financial statements prepared by the Company and the Group, therefore there are no comparative figures
1.2
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues
-
Section 26 ‘Share based Payment’
Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements
;
-
Section 33 ‘Related Party Disclosures’
Compensation
for key management personnel
.
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
1
Accounting policies
(Continued)
- 16 -
1.3
Business combinations
In the parent company
financial statements, t
he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
I
nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.4
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company
John Fredericks Plastics Group Limited
together with
all entities controlled by the parent company (its subsidiaries)
. The consolidated accounts can be obtained from Lindley Moor Rd, Elland, Huddersfield, HD3 3RW.
All
financial statements
are made up to 31 October 2022
.
Where necessary, adjustments are made to the
financial statements
of subsidiaries to bring the accounting policies used into line with those used by other members of the
g
roup.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.5
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the
group
has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.6
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover is recognised when goods have been delivered.
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
1
Accounting policies
(Continued)
- 17 -
1.7
Intangible fixed assets - goodwill
Negative g
oodwill represents the excess of the
fair value of net assets acquired over the
cost of acquisition of
a
business. It is initially recognised as a
negative
asset at cost and is subsequently measured at cost less accumulated
amortisation. Negative goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 3 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.8
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
25% per annum
1.9
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:
Leasehold improvements
25% per annum
Plant and equipment
15% per annum
Computers
25% per annum
Motor vehicles
20-25% per annum
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the
profit and loss account
.
1.10
Fixed asset investments
I
n the parent company
financial statements,
investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the
group. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
1
Accounting policies
(Continued)
- 18 -
1.11
Impairment of fixed assets
At each reporting
period
end date, the
group
reviews the carrying amounts of its tangible
and intangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.12
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at
the
lower of
cost and replacement cost
, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.13
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
1
Accounting policies
(Continued)
- 19 -
1.14
Financial instruments
The group 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 group's
balance sheet
when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
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
m
ethod 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 recogn
ised 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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group after deducting all of its liabilities.
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
1
Accounting policies
(Continued)
- 20 -
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. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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 subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or inv
estment strategy.
Debt factoring
The Group has an invoice discounting agreement. The amount owed by customers to the Group is included within trade debtors and the amount owed to the invoice discounting company is included within creditors. The amount owed to the invoice discounting company represents the difference between the amounts advanced by the discounting company and the invoices discounted. The interest element of the invoice discounting charges and other related costs are recognised as they accrue and included in the Statement of Comprehensive Income within interest payable and similar expenses.
Derecognition of financial liabilities
Financial liabilities are derecognised when the
group's contractual obligations expire or are discharged or cancelled.
1.15
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.16
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end
date.
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
1
Accounting policies
(Continued)
- 21 -
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
if, and only if, there is
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 t
ax authority.
1.17
Provisions
Provision is made for liabilities arising in respect of extended warranty claims on warranties provided in conjunction with the sale of goods. Provisions are recognised when the group has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and that obligation can be estimated reliably. The provision is based on expected costs to be incurred over the next 10 years based on previous warranty claims.
1.18
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.
1.19
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.20
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss
so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease.
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 22 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
-
Using the information available at the reporting date, the Directors make judgements based on their experience on the level of impairment required for stock and trade debtors and the provision for future warranty costs. Further information received after the statement of financial position date may impact on the level of provision.
In categorising leases as hire purchases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee.
3
Turnover
The whole of the turnover is attributable to the principal business activity.
All turnover arose within the United Kingdom.
4
Operating profit
2022
£
Operating profit for the period is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
181,464
Amortisation of intangible assets
(32,955)
Operating lease charges
304,474
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 23 -
5
Auditor's remuneration
2022
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
3,000
Audit of the financial statements of the company's subsidiaries
15,200
18,200
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the period was:
Group
Company
2022
2022
Number
Number
Production
120
-
Administration, marketing and distribution
49
2
Total
169
2
Their aggregate remuneration comprised:
Group
Company
2022
2022
£
£
Wages and salaries
3,445,691
Social security costs
336,479
Pension costs
71,060
3,853,230
7
Director's remuneration
2022
£
Remuneration for qualifying services
47,436
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 24 -
8
Interest payable and similar expenses
2022
£
Interest on invoice finance arrangements
3,588
Interest on finance leases and hire purchase contracts
48,587
Other interest
15,865
Total finance costs
68,040
9
Taxation
2022
£
Current tax
UK corporation tax on profits for the current period
99,283
Deferred tax
Origination and reversal of timing differences
225,432
Total tax charge
324,715
The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:
2022
£
Profit before taxation
1,642,629
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00%
312,100
Tax effect of expenses that are not deductible in determining taxable profit
5,259
Group relief
(3,014)
Amortisation on assets not qualifying for tax allowances
(8,749)
Research and development tax credit
(11,482)
Fixed asset timing differences
2,961
Other timing differences
(2,348)
Other differences
29,988
Taxation charge
324,715
10
Dividends
2022
Recognised as distributions to equity holders:
£
Final paid
170,000
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 25 -
11
Intangible fixed assets
Group
Negative goodwill
Software
Total
£
£
£
Cost
At 14 May 2021
Additions - separately acquired
16,270
16,270
Additions - business combinations
(177,536)
(177,536)
At 31 October 2022
(177,536)
16,270
(161,266)
Amortisation and impairment
At 14 May 2021
Amortisation charged for the period
(46,046)
13,091
(32,955)
At 31 October 2022
(46,046)
13,091
(32,955)
Carrying amount
At 31 October 2022
(131,490)
3,179
(128,311)
The company had no intangible fixed assets at 31 October 2022.
12
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 14 May 2021
Additions
781,327
10,323
165,653
957,303
Business combinations
4,083
4,021
466,307
237,835
712,246
At 31 October 2022
4,083
785,348
476,630
403,488
1,669,549
Depreciation and impairment
At 14 May 2021
Depreciation charged in the period
4,083
112,140
2,605
62,636
181,464
At 31 October 2022
4,083
112,140
2,605
62,636
181,464
Carrying amount
At 31 October 2022
673,208
474,025
340,852
1,488,085
The company had no tangible fixed assets at 31 October 2022.
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
12
Tangible fixed assets
(Continued)
- 26 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2022
2022
£
£
Plant and equipment
683,914
Motor vehicles
328,101
1,012,015
-
13
Fixed asset investments
Group
Company
2022
2022
Notes
£
£
Investments in subsidiaries
14
1,009,170
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 14 May 2021
-
Additions
1,009,170
At 31 October 2022
1,009,170
Carrying amount
At 31 October 2022
1,009,170
14
Subsidiaries
Details of the company's subsidiaries at 31 October 2022 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
John Fredericks Plastics Limited
Linldley Moor Road, Huddersfield, HD3 3RW
Ordinary
100.00
The above subsidiary is a direct subsidiary of the company and forms a part of the John Fredericks Plastics Group Ltd consolidation group. The subsidiary is included within the consolidated John Fredericks Plastics Group Ltd financial statements.
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 27 -
15
Stocks
Group
Company
2022
2022
£
£
Raw materials and consumables
797,297
Work in progress
96,167
-
Finished goods and goods for resale
217,995
1,111,459
16
Debtors
Group
Company
2022
2022
Amounts falling due within one year:
£
£
Trade debtors
1,882,315
Prepayments and accrued income
353,034
2,235,349
-
17
Creditors: amounts falling due within one year
Group
Company
2022
2022
Notes
£
£
Obligations under finance leases
19
236,088
Trade creditors
1,663,429
Amounts owed to group undertakings
122,535
Corporation tax payable
91,042
Other taxation and social security
400,658
-
Other creditors
609,000
609,000
Accruals and deferred income
317,295
3,317,512
731,535
18
Creditors: amounts falling due after more than one year
Group
Company
2022
2022
Notes
£
£
Obligations under finance leases
19
679,927
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 28 -
19
Finance lease obligations
Group
Company
2022
2022
£
£
Future minimum lease payments due under finance leases:
Within one year
236,088
In two to five years
679,927
916,015
-
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
20
Provisions for liabilities
Group
Company
2022
2022
£
£
40,871
-
Movements on provisions:
Group
£
Additional provisions in the year
40,871
The warranty provision relates to the potential cost to the Company under a 10 year warranty on Company products. The provision is based on expected costs to be incurred over the next 10 years based on previous warranty claims.
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
2022
Group
£
Accelerated capital allowances
340,801
Short term timing differences
(5,056)
335,745
The company has no deferred tax assets or liabilities.
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
21
Deferred taxation
(Continued)
- 29 -
Group
Company
2022
2022
Movements in the period:
£
£
Asset at 14 May 2021
-
-
Charge to profit or loss
225,432
-
Other
110,313
-
Liability at 31 October 2022
335,745
-
No significant reversal of deferred tax liabilities is expected within the next 12 months.
Other deferred tax movements are in relation to liabilities recognised on acquisition of John Fredericks Plastics Ltd in the accounting period.
22
Retirement benefit schemes
2022
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
71,060
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
23
Share capital
Group and company
2022
2022
Ordinary share capital
Number
£
Issued and fully paid
Class A Ordinary shares of £1 each
3,825
3,825
Class B Ordinary shares of £1 each
2,925
2,925
Class C Ordinary shares of £1 each
750
750
7,500
7,500
Ordinary A, B and C shares are each entitled to one vote in any circumstances. Each share is equally entitled to a distribution of dividends. Each share is equally entitled to a distribution of capital.
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 30 -
24
Acquisition of a business
On 20 January 2022 the group acquired 100 percent of the issued capital of John Fredericks Plastics Limited.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
668,945
(39,603)
629,342
Inventories
958,281
-
958,281
Trade and other receivables
1,862,608
-
1,862,608
Cash and cash equivalents
658,961
-
658,961
Trade and other payables
(2,418,991)
-
(2,418,991)
Tax liabilities
(393,182)
-
(393,182)
Deferred tax
(110,313)
-
(110,313)
Total identifiable net assets
1,226,309
(39,603)
1,186,706
Goodwill
(177,536)
Total consideration
1,009,170
The consideration was satisfied by:
£
Cash
106,670
Issue of shares
2,500
Deferred consideration
900,000
1,009,170
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
14,773,042
Profit after tax
1,287,695
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 31 -
25
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2022
2022
£
£
Within one year
235,051
-
Between two and five years
913,505
-
1,148,556
-
26
Capital commitments
Amounts contracted for but not provided in the financial statements:
Group
Company
2022
2022
£
£
Acquisition of tangible fixed assets
581,216
-
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 32 -
27
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2022
£
Aggregate compensation
253,418
Other information
The company has taken advantage of the exemption available in Section 33.1A of FRS 102 whereby it has not disclosed transactions with any wholly owned subsidiary undertaking of the group.
During the period the
group
paid a dividend to the directors, who are also the shareholders of the company of £
170,000
.
During the year, the group advanced £100,000 to Directors. During the year, Directors repaid £145,000 to the group. At the period end the group owed the Directors of John Fredericks Plastics Group Limited, who are also the shareholders, £45,000.
Entities in which Directors have common significant influence
During the year the group made purchases of £28,606, and sales of £31,127 with an entity under common significant influence.
In the year ended 31 October 202
2
,
the group
paid
£
15,568
in respect of the lease of assets owned by SDSDAB Limited.
28
Controlling party
The directors consider the ultimate controlling party to be M Dicconson, a director and the majority shareholder in John Fredericks Plastics Group Limited.
29
Cash generated from/(absorbed by) group operations
2022
£
Profit for the period after tax
1,317,914
Adjustments for:
Taxation charged
324,715
Finance costs
68,040
Amortisation and impairment of intangible assets
(32,955)
Depreciation and impairment of tangible fixed assets
181,464
Decrease in provisions
(859,129)
Movements in working capital:
Increase in stocks
(153,178)
Increase in debtors
(372,741)
Increase in creditors
571,391
Cash generated from/(absorbed by) operations
1,045,521
JOHN FREDERICKS PLASTICS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2022
- 33 -
30
Analysis of changes in net debt - group
14 May 2021
Cash flows
31 October 2022
£
£
£
Cash at bank and in hand
-
822,887
822,887
Obligations under finance leases
-
(916,015)
(916,015)
-
(93,128)
(93,128)
2022-10-31
2021-05-14
false
CCH Software
CCH Accounts Production 2022.300
Mr M Dicconson
13397564
bus:Consolidated
2021-05-14
2022-10-31
13397564
2021-05-14
2022-10-31
13397564
bus:Director1
2021-05-14
2022-10-31
13397564
bus:RegisteredOffice
2021-05-14
2022-10-31
13397564
bus:Director1
bus:Consolidated
2021-05-14
2022-10-31
13397564
bus:Consolidated
2022-10-31
13397564
2022-10-31
13397564
core:NegativeGoodwill
bus:Consolidated
2022-10-31
13397564
core:OtherResidualIntangibleAssets
bus:Consolidated
2022-10-31
13397564
core:ComputerSoftware
bus:Consolidated
2022-10-31
13397564
core:LeaseholdImprovements
bus:Consolidated
2022-10-31
13397564
core:PlantMachinery
bus:Consolidated
2022-10-31
13397564
core:ComputerEquipment
bus:Consolidated
2022-10-31
13397564
core:MotorVehicles
bus:Consolidated
2022-10-31
13397564
core:CurrentFinancialInstruments
bus:Consolidated
2022-10-31
13397564
bus:Consolidated
2021-05-13
13397564
core:WithinOneYear
bus:Consolidated
2022-10-31
13397564
core:BetweenTwoFiveYears
bus:Consolidated
2022-10-31
13397564
core:CurrentFinancialInstruments
2022-10-31
13397564
core:ShareCapital
bus:Consolidated
2022-10-31
13397564
core:RetainedEarningsAccumulatedLosses
bus:Consolidated
2022-10-31
13397564
core:ShareCapital
2022-10-31
13397564
core:RetainedEarningsAccumulatedLosses
2022-10-31
13397564
core:ShareCapital
bus:Consolidated
2021-05-13
13397564
core:RetainedEarningsAccumulatedLosses
bus:Consolidated
2021-05-13
13397564
core:ShareCapital
2021-05-13
13397564
core:RetainedEarningsAccumulatedLosses
2021-05-13
13397564
core:ShareCapitalOrdinaryShares
bus:Consolidated
2022-10-31
13397564
core:ShareCapital
bus:Consolidated
2021-05-14
2022-10-31
13397564
core:ShareCapital
2021-05-14
2022-10-31
13397564
core:Goodwill
2021-05-14
2022-10-31
13397564
core:IntangibleAssetsOtherThanGoodwill
2021-05-14
2022-10-31
13397564
core:ComputerSoftware
2021-05-14
2022-10-31
13397564
core:LeaseholdImprovements
2021-05-14
2022-10-31
13397564
core:PlantMachinery
2021-05-14
2022-10-31
13397564
core:ComputerEquipment
2021-05-14
2022-10-31
13397564
core:MotorVehicles
2021-05-14
2022-10-31
13397564
core:UKTax
bus:Consolidated
2021-05-14
2022-10-31
13397564
bus:Consolidated
1
2021-05-14
2022-10-31
13397564
bus:Consolidated
2
2021-05-14
2022-10-31
13397564
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2021-05-14
2022-10-31
13397564
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2021-05-14
2022-10-31
13397564
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2021-05-13
13397564
core:ComputerSoftware
bus:Consolidated
2021-05-13
13397564
core:NegativeGoodwill
core:ExternallyAcquiredIntangibleAssets
bus:Consolidated
2021-05-14
2022-10-31
13397564
core:ComputerSoftware
core:ExternallyAcquiredIntangibleAssets
bus:Consolidated
2021-05-14
2022-10-31
13397564
core:ExternallyAcquiredIntangibleAssets
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2021-05-14
2022-10-31
13397564
core:NegativeGoodwill
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2021-05-14
2022-10-31
13397564
core:ComputerSoftware
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2021-05-14
2022-10-31
13397564
core:LeaseholdImprovements
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2021-05-13
13397564
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bus:Consolidated
2021-05-13
13397564
core:ComputerEquipment
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2021-05-13
13397564
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2021-05-13
13397564
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2021-05-14
2022-10-31
13397564
core:PlantMachinery
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2021-05-14
2022-10-31
13397564
core:ComputerEquipment
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2021-05-14
2022-10-31
13397564
core:MotorVehicles
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2021-05-14
2022-10-31
13397564
core:PlantMachinery
2022-10-31
13397564
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2022-10-31
13397564
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2021-05-14
2022-10-31
13397564
core:Subsidiary1
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2021-05-14
2022-10-31
13397564
core:Non-currentFinancialInstruments
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2022-10-31
13397564
core:Non-currentFinancialInstruments
2022-10-31
13397564
core:CurrentFinancialInstruments
core:WithinOneYear
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2022-10-31
13397564
core:CurrentFinancialInstruments
core:WithinOneYear
2022-10-31
13397564
core:WithinOneYear
2022-10-31
13397564
core:BetweenTwoFiveYears
2022-10-31
13397564
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2021-05-14
2022-10-31
13397564
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2021-05-14
2022-10-31
13397564
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2021-05-14
2022-10-31
13397564
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2021-05-14
2022-10-31
13397564
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2021-05-14
2022-10-31
xbrli:pure
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iso4217:GBP