JCA_CAPITAL_LIMITED - Accounts
JCA_CAPITAL_LIMITED - Accounts
The directors present the strategic report for the period ended 31 December 2018.
JCA Capital Limited acquired the Birkin Cleaning Services group in 2016 and a new Executive Board was implemented. The group's core business has continued to grow significantly, and the new owners have invested significantly in every aspect including technology, systems, processes and a new head office.
The group's trading subsidiary, Birkin Cleaning Services Ltd (Birkin), was incorporated in 1972, thus the period ended 31 December 2018 is the 47th year of its operation in the cleaning services industry. The company provides a service led commercial cleaning provision of all aspects of cleaning services, including specialist and high-level window cleaning. The company is London centric with national contracts such as Whitbread. Our clients cover many business sectors with a high percentage within the education sector.
Birkin takes great pride in its people led culture and providing benchmark levels of customer service. We treat our employees and clients with dignity, respect and professionalism because happy employees equal happy clients. Our relationships are built on trust and with a long-term view – several clients have been held for over 20 years.
The group has a five-year business plan which is focused on established a recognised brand within the Central London market and, increasing the market share in the corporate and retail sectors. The strategy remains based on client retention and competing on our quality of service delivery. The investment in technology and quality people in 2017/18 was a critical aspect of building for the future and this financial period has validated the impact of having effective systems in place.
Birkin proudly remain a recognised Living Wage Foundation (LLW) employer and seek to pay the LLW wherever possible. Most of our Central London contracts are on LLW rate and believe that there are tangible benefits for all parties to adopt this policy.
We are continuing to be environmentally aware and have implemented a number of improvements as recognised as part of the ISO 18001:2015 certification process. Birkin genuinely seek to engage with our clients and employees in a sustainable way and innovate as the norm. We are working towards becoming carbon neutral and have a number of projects which are progressing, and these include continued reduction of single use plastics, introduction of electric and hybrid vehicles and paperless technology.
The principal risks are the large Facilities Management companies offering a total service solution which bundles together cleaning services amongst others such as engineering and security to name but a few.
Birkin mitigate these risks through continuing to offer a specialised cleaning services and ensure we add value and continually measure our client feedback. Birkin DNA is our culture and methodology for proactively monitoring and reporting client feedback to internally analyse. We use this data to validate our cloud-based audit scores by measuring our net promoter score.
Our strategy is to engage with larger Facilities Management and Property Management companies to widen our scope of client base and achieve footprint within a critical sector. A presence in the managing agent sector has been achieved at two key clients which is important to ensure the company secure a high level of large-scale contract in the Central London market. As the business seeks to expand, there are greater opportunities to do so with the typical multi-site contracts that are tendered by this type of client.
Our period to 31 December 2018 was one of positive progress. The new finance team under the leadership of our new Finance Director has created meaningful management reporting at various levels across the business. Our operational, commercial and finance teams are all working closer than ever before. The systems implemented in 2017/18 are generating real value by providing key support for the business on a day to day.
We now have over 290 contracts and employ over 1,300 people. We have retained several large contracts that were put out to tender during 2018 and won several new contracts high profile contracts during this year. We won several awards throughout this year, featured within the industry press, and we continue to have an exceptional health and safety record.
Birkin embrace technology and innovation and have a proven track record in successfully implementing systems to deliver tangible benefits. The digital time and attendance system, cloud-based auditing system, online workflow system, client feedback software and suite of Microsoft products such as Sharepoint have allowed Birkin to become a market leader in using technology to enhance our service offering. The leadership team actively support the adoption of using new ways of working to bring innovation to our employees and clients alike.
The impact of our tech drive has delivered real impacts such as removing 73% of the paper used in 2017/18, improved wage accuracy by 38% and our client satisfaction scores have move from ‘good’ to ‘very good’ as they recognised Birkin as being a ‘genuinely innovative’ organisation.
We continue to challenge all of our supply chain for the latest innovations and technological advances so our clients and our employees feel the benefit.
Birkin’s investment in the prior financial year has enabled the business to dramatically improve on the EBITDA profitability which continue to deliver significant growth. The systems are being used to drive the business with clarity and ensure that informed decisions are made to further strengthen the development of Birkin. Our revenue growth for this period was inline with expectations and our plan for 2018. Our investment in overhead and technology over the last two years, not only has helped us to achieve our targets, but is key to helping grow our EBITDA.
Our key metrics to measure performance are revenue growth, gross margins on contracts and EBITDA. Our growth was in line with our budgeted business plan for the period reported and the bottom line improving as a result of the investment in last year’s upgrade programme. We have experienced net pro-rata revenue growth of 15.5% year on year. Birkin continue to grow organically and results from our excellent networks of contacts and clients within the corporate and education sector.
The financial period has been shortened to 31/12 for 2018 and the figures presented represent 9 months, vs. 12 months for last year. There is a significant increase in EBITDA from last year, mainly due to an improved gross profit margin which has meant net assets have grown by 60% after having paid dividends. Taking into account the group's goodwill on consolidation amortisation charge of £226,359 for the period, the EBITDAE for the period is positive. Key performance indicators of the trading subsidiary, Birkin, are as follows;
| 31/12/2018 (9 Months) | 31/03/2018 |
| £’000 | £'000 |
Profit before taxation | 413 | (235) |
EBITDAE | 554 | 247 |
Year on year revenue growth | 1,942 | 2,826 |
% | 15.5% | 29% |
Gross profit margin | 20.4% | 16.7% |
The outlook for 2019 is positive. The senior leadership team continues to work very closely together, and this is driving a very productive working environment. The board have the motivation, experience and engagement levels to deliver further growth and improved profitability.
Our operational team and key operational systems are delivering value and our client satisfaction is forecast to go from strength to strength. Most of the large key accounts were successfully retained in 2018 and the focus for 2019 and beyond is to target further new business in the corporate sector and introduce further innovation into our existing client base. We ended 2018 with some very high-profile contract wins in target sectors providing great case studies to target other potential clients.
Our investments in technology and systems have proven successful and combined with our engaged team, mean we have budgeted a improvement EBITDA to 4% forecast for YE2019. Our business is well placed to continue delivering sustainable growth and improved profitability.
On behalf of the board
The directors present their annual report and financial statements for the period ended 31 December 2018.
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
The results for the period are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
In accordance with the company's articles, a resolution proposing that Taylor Viney & Marlow be reappointed as auditor of the group will be put at a General Meeting.
select suitable accounting policies and then apply them consistently; make judgements and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
We have audited the financial statements of JCA Capital Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2018 which comprise the group statement of income and retained earnings, the group balance sheet, the company balance sheet, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2018 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.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
the 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.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 strategic report and the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the directors' responsibilities statement, 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.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Other matters which we are required to address
In the previous accounting period the directors of the company took advantage of audit exemption under s477 and s479 of the Companies Act. Therefore the prior period financial statements were not subject to audit.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the period was £11,390 (2018 - £239,675 profit).
JCA Capital Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Europa Park, London Road, Grays, Essex, RM20 4DB.
The group consists of JCA Capital Limited and all of its subsidiaries.
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The consolidated financial statements incorporate those of JCA Capital Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 31 December 2018. 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 group.
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.
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The reporting period covered by these financial statements is 9 months. The accounting period was shortened for internal reporting reasons and as such the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.
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.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion. Revenue invoiced for services yet to be provided is deferred to the period in which the service takes place unless their is no legal obligation to deliver the service in the future.
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.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities 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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
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.
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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, 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.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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.
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.
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 payments 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.
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 though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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.
The tax expense represents the sum of the tax currently payable and deferred 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.
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 tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 the profit and loss account 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 income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The average monthly number of persons (including directors) employed by the group and company during the period was:
Their aggregate remuneration comprised:
The actual charge for the period can be reconciled to the expected charge based on the profit or loss and the standard rate of tax as follows:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Details of the company's subsidiaries at 31 December 2018 are as follows:
The long-term loans are secured by a fixed charge over 4 Ordinary shares in Birkin C.S Holdings Limited.
Interest rates on the long term loans are 5% and 8% per annum and interest accrues daily. The long terms loans mature in October 2022.
The invoice finance facility is secured by way of a fixed and floating charge over the company's debts to the benefit of RBS Invoice Finance Ltd. The amount secured a the balance sheet date was £697,813 (31 March 2018: £460,198).
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. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
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.
The company has five classes of ordinary shares which carry no right to fixed income.
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:
At the balance sheet date the company owed £1,723,537 (31 March 2018: £1,778,984) to John F Hunt Remediation Limited. During the period the company was charged interest of £88,152 (31 March 2018: £74,554) on the loan.
An amount of £599,960 (31 March 2018: £599,960) due to John F Hunt Group Ltd was included in creditors at the balance sheet date.
Mr J Hall has a significant influence over JCA Capital Limited and is the controlling party of John F Hunt Remediation Limited and John F Hunt Group Ltd.
Dividends totalling £0 (2018 - £237,640) were paid in the period in respect of shares held by the company's directors.
Advances or credits have been granted by the group to its directors as follows: