ACCOUNTS - Final Accounts

Operating profit

The operating profit is stated after charging:

J & A YOUNG GROUP LIMITED - Company Information

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Registered number: 06519820

J & A YOUNG GROUP LIMITED

Annual Report and Financial Statements

For the Year Ended 30 September 2021

J & A YOUNG GROUP LIMITED

Company Information

Directors	J R A Young
	J J G Young
	D P R Young


Registered number	06519820


Registered office	15 Saxon Way East
	Oakley Hay Industrial Estate
	Corby
	NN18 9EY


Independent auditors	PKF Smith Cooper Audit Limited
	2 Lace Market Square
	Nottingham
	NG1 1PB

J & A YOUNG GROUP LIMITED

Contents

	Page
Group Strategic Report	1 - 2
Directors' Report	3 - 6
Independent Auditors' Report	7 - 10
Consolidated Statement of Comprehensive Income	11
Consolidated Balance Sheet	12
Company Balance Sheet	13
Consolidated Statement of Changes in Equity	14
Company Statement of Changes in Equity	15
Consolidated Statement of Cash Flows	16
Consolidated Analysis of Net Debt	17
Notes to the Financial Statements	18 - 41

J & A YOUNG GROUP LIMITED

Group Strategic Report

For the Year Ended 30 September 2021

Introduction

The directors present their strategic report of the Group for the year ended 30 September 2021.

Business review

The financial statements show revenue of £56.0m (2020: £52.2m).

Principal risks and uncertainties

The Group's operations expose it to a variety of financial risks that include the effects of changes in exchange rates, credit risk, liquidity risk and interest rate risk, as well as certain business risks associated with the production and handling of quantities of plastic stocks.
The directors of the Group meet regularly to review any risks and uncertainties that are either currently faced by the Group or will potentially be face by the Group in the future. Measures are then agreed upon to be put in place to mitigate these risks and uncertainties. Contingency plans have been constructed to respond in the event of a challenge to the business, and adequate sources of funding are available to meet those needs as and when they may arise.

Financial key performance indicators

The group's key performance indicators are as follows:
     2021  2020
     £000  £000
Turnover 55,980 52,225
Gross profit 11,637 12,581
Gross profit margin   20.8%  24.1%
Operating profit   2,304   3,239
Profit before taxation   1,823  2,744
Net assets 36,399 36,043

Other key performance indicators

The Group continues to develop and operate its unique recycling processes and considers itself to be at the forefront of plastic recycling in the UK. It continues to grow its manufacturing base and to enhance its ability to offer its customers a complete closed loop solution for their plastic waste, providing quality recycled products from their own used material. This meets all of our major customers' environmental and social responsibility requirements, whilst making a significant contribution to the circular economy within the UK.
The Group aims, year on year, to increase its yields from feed stock, improve efficiencies and maximise its output whilst continuing to invest in new R&D initiatives and plant to enhance quality and capacity.

Page 1

J & A YOUNG GROUP LIMITED

Group Strategic Report (continued)

For the Year Ended 30 September 2021

Directors' statement of compliance with duty to promote the success of the Group

It is important to our board that we develop strong and positive relationships with our employees, customers, and suppliers as well as government and industry regulators. We have a legal responsibility under section 172 of the companies act 2006 to act in a way we consider in good faith most likely to benefit the group as a whole whilst ensuring we have oversight of long terms effect of our decisions on the business and it’s stakeholders. This statement covers how we, as a board, address this responsibility.
J and A Young (Leicester) Ltd was founded in 1975 by Jeremy Young and continues to be a privately run company to this day.
Our long term strategy is to continue to invest in the group to ensure we have the infrastructure and resources in place to maintain our position as the leading independent plastics recycler in the UK.
In order to meet our ambitious long term strategic objectives it is important that we form strategic partnerships with our key stakeholders. We have made significant investments in capital projects which not only benefits our key stakeholders but benefits the UK plastic recycling industry as a whole and makes a real contribution to the UK circular economy.

This report was approved by the board on 28 June 2022 and signed on its behalf.

................................................

J R A Young

Director

Page 2

J & A YOUNG GROUP LIMITED

Directors' Report

For the Year Ended 30 September 2021

The directors present their report and the financial statements for the year ended 30 September 2021.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the directors are required to:

∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Group in the period under review was that of plastic and cardboard waste reclamation and recycling along with production of plastic bags from reclaimed plastics.

Results and dividends

The profit for the year, after taxation, amounted to £356 thousand (2020 - £1,869 thousand).

No dividends have been paid within the year.

Directors

The directors who served during the year were:

J R A Young

J J G Young

D P R Young

Engagement with employees

The Group recognises the benefits of keeping employees informed of the progress of the business and of involving them in the Group’s performance. Consultation with employees or their representatives occur regularly, with the aim of ensuring employees’ views are taken into account when decisions are made that are likely to affect their interests.

Page 3

J & A YOUNG GROUP LIMITED

Directors' Report (continued)

For the Year Ended 30 September 2021

Engagement with suppliers, customers and others

We invest heavily in innovation to ensure we continue to provide our customers the best recycling route for their materials whilst ensuring we meet all legal and regulatory requirements. We have monthly innovation meetings with all of our major customers with the aim of improving quality and final products. We have built, and will maintain, a reputation of transparency and fair dealings with all of our customers and suppliers.
We are a family run group with roots in the Midlands and have focussed our strategic growth within this area. We also support our major customers in their charity drives with supply of bags, and products when required.
Plastics recycling is critical to the reduction of environmental pollution, and we help reduce the use of virgin polymers by providing quality recycled plastic products. This results in a reduction in the use of natural resources, lower energy costs, lower water usage, and protection of forestry. We recycle and dispose of all of our waste responsibly; all of our sites have bespoke environmental permits and exceed all minimum regulatory standards for plastics recycling.

Our strategic growth will continue to support the UK recycling infrastructure and make a significant contribution to the UK circular economy.

Disabled employees

It is the Group’s policy to give full and fair consideration to applications for employment made by disabled persons, having regard for their particular aptitudes and abilities, and to ensure that any disabled person who is in employment with the Group received, so far as is possible, the same opportunities for training, career development and promotions as other employees.

Page 4

J & A YOUNG GROUP LIMITED

Directors' Report (continued)

For the Year Ended 30 September 2021

Greenhouse gas emissions, energy consumption and energy efficiency action

Summary
The Group's greenhouse gas emissions, reportable under SECR in 2020/21 were 17,804 (2020: 17,595) tonnes of carbon dioxide equivalent (tCO2e) at an emissions intensity of 0.11 (2020: 0.12) tCO2e per tonne of production for the period 1st October 2020 to 30th September 2021.
These include the emissions associated with UK electricity and natural gas consumption and business travel in company and private vehicles by employees.
Greenhouse gas emissions
Figure 1 Greenhouse gas emissions by year (tonnes CO2e):
Emissions source 2020/21 2019/20 %Share
Fuel combustion: Natural gas 2,724 2,343 15%
Fuel combustion: Transport 2,327 2,859 13%
Purchased electricity 12,754 12,392 72%
Total emissions (tCO2e) 17,804 17,595 100%
Production (tonnes) 155,711 152,795
Intensity: (tCO2e per tonnes of production) 0.11 0.12
Figure 2 Greenhouse gas emissions by scope (tonnes CO2e):
Emissions source 2020/21 2019/20 %Share
Scope 1 5,044 5,203 28%
Scope 2 11,717 11,411 66%
Scope 3 1,043 981 6%
Total emissions (tCO2e) 17,804 17,595 100%
Scope 1: Natural gas and company-operated transport. Scope 2: Electricity (generation). Scope 3: Losses from electricity distribution and transmission. This only includes emissions reportable under SECR and may not reflect the entire carbon footprint of the organisation.
Energy consumption
Figure 3 Energy consumption by year (kWh)
Emissions source 2020/21 2019/20 %Share
Natural gas 14,869,910 12,744,990 17%
Transport fuel 9,742,517 11,778,328 16%
Electricity 55,182,966 48,942,968 67%
Total 79,795,393 73,466,286 100%
Boundary, methodology and exclusions
An ‘operational control’ approach has been used to define the Greenhouse Gas emissions boundary.
This approach captures emissions associated with the operation of all buildings such as warehouses, offices and manufacturing sites, plus company-owned and leased transport. This report covers UK operations only, as required by SECR for Non-Quoted Large Companies.
This information was collected and reported in line with the methodology set out in the UK Government’s Environmental Reporting Guidelines, 2020.
Emissions have been calculated using the latest conversion factors provided by the UK Government. There are no material omissions from the mandatory reporting scope.

Page 5

J & A YOUNG GROUP LIMITED

Directors' Report (continued)

For the Year Ended 30 September 2021

The reporting period is October 2020 to September 2021, as per the financial accounts.
Energy efficiency initiatives
The Group aims to be as energy efficient as possible and in the financial year covered by this report have carried out a number of energy saving initiatives, such as the following:
• Reviewed renewable energy generation options, such as roof mounted solar PV schemes
• Installed new process equipment fitted with VSD drives where practical
• Reduced compressed air leakage
(An operational control approach to GHG emissions boundary is defined as: “Your organisation has operational
control over an operation if it, or one of its subsidiaries, has the full authority to introduce and implement its
operating policies at the operation”.)

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

The auditors, PKF Smith Cooper Audit Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 28 June 2022 and signed on its behalf.

................................................

J R A Young

Director

Page 6

J & A YOUNG GROUP LIMITED

Independent Auditors' Report to the Members of J & A Young Group Limited

Opinion

We have audited the financial statements of J & A Young Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2021, which comprise the Group Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

∙give a true and fair view of the state of the Group's and of the parent Company's affairs as at 30 September 2021 and of the Group's profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Page 7

J & A YOUNG GROUP LIMITED

Independent Auditors' Report to the Members of J & A Young Group Limited (continued)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

∙the parent Company financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.

Page 8

J & A YOUNG GROUP LIMITED

Independent Auditors' Report to the Members of J & A Young Group Limited (continued)

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. Based on our understanding of the Group and industry, we identify the key laws and regulations affecting the Group, including compliance with Environment Agency regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We identified that the principle risk of fraud or non-compliance with laws and regulations related to:

∙Management bias in respect of accounting estimates and judgements made;

∙Management override of control;

∙Posting of unusual journals or transactions

We focussed on those areas that could give rise to a material misstatement in the Company financial statements.
Our procedures included, but were not limited to:

∙Enquiry of management and those charged with governance around actual and potential litigation and claims, including instances of non-compliance with laws and regulations and fraud;

∙Reviewing minutes of meetings of those charged with governance where available;

∙Reviewing legal expenditure in the year to identify instances of non-compliance with laws and regulations and fraud;

∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

∙Performing audit work over the risk of management override controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

Page 9

J & A YOUNG GROUP LIMITED

Independent Auditors' Report to the Members of J & A Young Group Limited (continued)

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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Sarah Flear (Senior Statutory Auditor)

for and on behalf of

PKF Smith Cooper Audit Limited

Statutory Auditors

2 Lace Market Square

Nottingham

NG1 1PB

28 June 2022

Page 10

J & A YOUNG GROUP LIMITED

Consolidated Statement of Comprehensive Income

For the Year Ended 30 September 2021

	2021	2020
Note	£	£000


Turnover		55,980	52,225
Cost of sales		(44,343)	(39,644)
Gross profit		11,637	12,581
Distribution costs		(2,210)	(1,903)
Administrative expenses		(7,279)	(7,470)
Other operating income		29	-
Fair value movements		127	31
Operating profit	5	2,304	3,239
Interest receivable and similar income		(10)	10
Interest payable and similar expenses	9	(471)	(505)
Profit before taxation		1,823	2,744
Tax on profit	10	(1,467)	(875)
Profit for the financial year		356	1,869

Profit for the year attributable to:
Owners of the parent Company	356	1,869
	356	1,869

There were no recognised gains and losses for 2021 or 2020 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2021 (2020:£NIL).

The notes on pages 18 to 41 form part of these financial statements.

Page 11

J & A YOUNG GROUP LIMITED

Registered number: 06519820

Consolidated Balance Sheet

As at 30 September 2021

		2021		2020
Note		£000		£000

Fixed assets
Intangible assets	11		11,302		12,330
Tangible assets	12		41,793		38,683
			53,095		51,013
Current assets
Stocks	14	8,402		9,938
Debtors: amounts falling due within one year	15	14,770		9,020
Cash at bank and in hand	16	960		661
		24,132		19,619
Creditors: amounts falling due within one year	17	(28,407)		(21,102)
Net current liabilities			(4,275)		(1,483)
Total assets less current liabilities			48,820		49,530
Creditors: amounts falling due after more than one year	18		(8,018)		(10,552)
Provisions for liabilities
Deferred taxation	22	(4,403)		(2,935)
			(4,403)		(2,935)
Net assets			36,399		36,043

Capital and reserves
Called up share capital	23	23,400	23,400
Profit and loss account	24	12,999	12,643
		36,399	36,043

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 June 2022.

................................................

J R A Young

Director

The notes on pages 18 to 41 form part of these financial statements.

Page 12

J & A YOUNG GROUP LIMITED

Registered number: 06519820

Company Balance Sheet

As at 30 September 2021

		2021		2020
Note		£000		£000

Fixed assets
Investments	13		26,000		26,000
			26,000		26,000
Current assets
Debtors: amounts falling due within one year	15	-		835
		-		835
Creditors: amounts falling due within one year	17	(2,425)		(3,250)
Net current liabilities			(2,425)		(2,415)
Total assets less current liabilities			23,575		23,585


Net assets			23,575		23,585

Capital and reserves
Called up share capital	23		23,400		23,400
Other reserves	24		175		175
Profit and loss account brought forward		10		-
Loss/(profit) for the year		(10)		10
Profit and loss account carried forward			-		10
			23,575		23,585

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 June 2022.

................................................

J R A Young

Director

The notes on pages 18 to 41 form part of these financial statements.

Page 13

J & A YOUNG GROUP LIMITED

Consolidated Statement of Changes in Equity

For the Year Ended 30 September 2021

	Called up share capital	Profit and loss account	Equity attributable to owners of parent Company	Total equity
	£000	£000	£000	£000
At 1 October 2019	23,400	10,774	34,174	34,174
Comprehensive income for the year
Profit for the year	-	1,869	1,869	1,869

At 1 October 2020	23,400	12,643	36,043	36,043
Comprehensive income for the year
Profit for the year	-	356	356	356
At 30 September 2021	23,400	12,999	36,399	36,399

The notes on pages 18 to 41 form part of these financial statements.

Page 14

J & A YOUNG GROUP LIMITED

Company Statement of Changes in Equity

For the Year Ended 30 September 2021

	Called up share capital	Other reserves	Profit and loss account	Total equity
	£000	£000	£000	£000
At 1 October 2019	23,400	175	-	23,575
Comprehensive income for the year
Profit for the year	-	-	10	10

At 1 October 2020	23,400	175	10	23,585
Comprehensive income for the year
Loss for the year	-	-	(10)	(10)
At 30 September 2021	23,400	175	-	23,575

The notes on pages 18 to 41 form part of these financial statements.

Page 15

J & A YOUNG GROUP LIMITED

Consolidated Statement of Cash Flows

For the Year Ended 30 September 2021

			2021	2020
			£000	£000

Cash flows from operating activities
Profit for the financial year	356	1,869
Adjustments for:
Amortisation of intangible assets	1,028	1,028
Depreciation of tangible assets	4,472	4,293
Loss on disposal of tangible assets	(29)	(56)
Government grants	(29)	-
Interest paid	470	505
Interest received	10	(10)
Taxation charge	1,467	875
Decrease/(increase) in stocks	1,536	(2,660)
(Increase)/decrease in debtors	(3,763)	2,625
(Increase) in amounts owed by joint ventures	(1,986)	(278)
Increase/(decrease) in creditors	2,380	(2,406)
Increase/(decrease)) in amounts owed to join ventures	172	(29)
Net fair value (gains) recognised in P&L	(127)	(31)
Net cash generated from operating activities	5,957	5,725

Cash flows from investing activities
Purchase of tangible fixed assets	(7,580)	(2,693)
Sale of tangible fixed assets	29	56
Government grants received	29	-
Interest received	(10)	10
HP interest paid	(309)	(261)
Net cash from investing activities	(7,841)	(2,888)
Cash flows from financing activities
New secured loans	2,390	-
Repayment of loans	-	(110)
Repayment of/new finance leases	(45)	(2,036)
Interest paid	(162)	(244)
Net cash used in financing activities	2,183	(2,390)
Net increase in cash and cash equivalents	299	447
Cash and cash equivalents at beginning of year	661	214

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	960	661

Page 16

J & A YOUNG GROUP LIMITED

Consolidated Analysis of Net Debt

For the Year Ended 30 September 2021


At 1 October 2020	Cash flows	New finance leases	At 30 September 2021
£000	£000	£000	£000

Cash at bank and in hand	661	299	-	960
Debt due after 1 year	(1,320)	110	-	(1,210)
Debt due within 1 year	(3,407)	(1)	-	(3,408)
Finance leases	(11,858)	-	44	(11,814)
	(15,924)	408	44	(15,472)

The notes on pages 18 to 41 form part of these financial statements.

Page 17

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

1.	General information

J & A Young Group Limited (the "Company") is a private company limited by shares and incorporated and domiciled in the UK. The registered number is 06519820 and the registered address is 15 Saxon Way East, Oakley Hay Industrial Estate, Corby, NN18 9EY.
The presentation currency of these financial statements is Sterling. All amounts in the financial statements have been rounded to the nearest £1,000.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Page 18

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

2.Accounting policies (continued)

2.3

Going concern

The Directors have made an assessment as to whether the use of going concern is appropriate, including whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. In line with International Audit Standards – ISA 570, the Directors have made this assessment in respect of a period of at least one year from the date of approval of the financial statements.
In making their assessment the Directors have paid due regard to relevant forecast financial information - including cash flows, available facility levels and in their appraisal has factored in sensitivities affecting the Group and the economy.
Notwithstanding the fact that the Group has net current liabilities at the 30 September 2021, the Group generated positive cashflows from operating activities and has continued to do so in 2022 and is forecast to do so in 2023 and beyond. The Group is making necessary and significant investments in capital projects, to develop and overhaul the existing facilities to ensure that the Group continues to be one of the leading providers of plastic recycling in the UK. This will result in the Group being able to significantly expand capacity and hence drive further profitability. In the short term, investment results in cashflow requirements being made on working capital. Existing facilities are under constant review and are renegotiated where necessary, with new facilities being agreed to fund the development.
Having due regard to all available information the Directors are satisfied that the Group has adequate resources to meet its liabilities as they fall due and therefore they should continue to adopt the going concern basis in preparing the financial statements.

Page 19

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

2.Accounting policies (continued)

2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

2.5

Revenue

Turnover represents net invoiced sales of goods, excluding value added tax.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is not recognised until the significant risks and rewards of ownership of the goods have passed to the buyer and the amount of revenue can be measured reliably.
Revenue in relation to packaging recovery notes (PRN) is recognised upon the transfer of the risks and rewards of ownership of the PRN to the customer. This is included in the sale of goods.
Where payments on account are received from customers in advance of the point at which revenue is recognised, such payments on account are offset against work-in-progress balances.

2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 20

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

2.Accounting policies (continued)

2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.10

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.11

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 21

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

2.Accounting policies (continued)

2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.13

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

Goodwill

years

Page 22

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

2.Accounting policies (continued)

2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold property improvements	-	20% on cost, 10% on cost and 5% on cost
Plant and machinery	-	25% on cost, 10% on cost and 5% on cost
Motor vehicles	-	25% on cost
Fixtures and fittings	-	20% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 23

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

2.Accounting policies (continued)

2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.20

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 24

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

2.Accounting policies (continued)

2.21

Financial instruments

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

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 income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

Page 25

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

2.Accounting policies (continued)

2.22

Financial liabilities

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.

Financial liabilities within the scope of IAS 39 are initially classified as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
The Group determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognised initially at fair value and in the case of loans and borrowings, plus directly attributable transaction costs.
Subsequently, the measurement of financial liabilities depends on their classification as follows:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss includes financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are acquired for the purpose of repurchasing in the near term. Derivatives, including separately embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognised in profit or loss.

Interest bearing loans and borrowings

Obligations for loans and borrowings are recognised when the Group becomes party to the related contracts and are measured initially at the fair value of consideration received less directly attributable transaction costs.
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method.
Gains and losses arising on the repurchase, settlement or otherwise cancellation of liabilities are recognised respectively in finance revenue and finance cost.

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires the Group to make estimates and assumptions that affect the application of policies and reported amounts. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are considered to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are:
a) Depreciation rates based on estimates of the useful lives and residual values of the assets involved.
b) Stock estimates and assumptions around the absorption of overheads and the yield percentages of finished goods from raw materials.
c) Goodwill amortisation is calculated on a systematic basis over its estimated useful life.

Page 26

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

4.	Turnover
		2021	2020
		£000	£000


Sale of goods	55,949	52,179
Rendering of services	31	46
	55,980	52,225

The directors believe that a geographical analysis of turnover would be prejudicial to the interests of the company and as such has not been disclosed.

Research & development charged as an expense	299	178
Depreciation	4,472	4,293
Other operating lease rentals	47	50
Goodwill amortisation	1,028	1,028

.	Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The loss after tax of the parent Company for the year was £10,000 (2020 - profit £10,000).

6.	Auditors' remuneration

Fees payable to the Group's auditor and its associates in respect of:
Audit of group financial statements	3	3
Audit of subsidiary financial statements	21	21
Other services relating to taxation	20	20
All other services	15	9
	59	53

Page 27

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

7.	Employees
	Staff costs, including directors' remuneration, were as follows:

Group	Group	Company	Company
2021	2020	2021	2020
£000	£000	£000	£000


Wages and salaries	9,909	9,770	-	-
Social security costs	962	973	-	-
Cost of defined contribution scheme	200	188	-	-
	11,071	10,931	-	-

The average monthly number of employees, including the directors, during the year was as follows:

	2021	2020
	No.	No.

Production	296	298
Administration	27	27

	323	325

8.	Directors' remuneration
		2021	2020
		£000	£000

Directors' emoluments	342	483
	342	483

	The highest paid director received remuneration of £159 thousand (2020 - £196 thousand).
	The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2020 - £NIL).
	The total accrued pension provision of the highest paid director at 30 September 2021 amounted to £NIL (2020 - £NIL).

Page 28

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

9.	Interest payable and similar expenses
		2021	2020
		£000	£000

Bank interest payable	10	23
Other loan interest payable	152	221
Finance leases and hire purchase contracts	309	261
	471	505



Total current tax	-	-

Deferred tax
Origination and reversal of timing differences	573	706
Adjustments in respect of previous periods	(25)	(66)
Effect of tax rate change on opening balance	919	235
Total deferred tax	1,467	875


	Taxation on profit on ordinary activities	1,467	875

Page 29

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

10.Taxation (continued)

Profit on ordinary activities before tax

1,824

2,744

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)	347	521
Effects of:
Non-tax deductible amortisation of goodwill and impairment	195	195
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	8	5
Capital allowances for year in excess of depreciation	(454)	(247)
Utilisation of tax losses	-	(406)
Interest rate swap spreading	(17)	(13)
Short-term timing difference leading to an increase (decrease) in taxation	1,467	875
Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge	(74)	(44)
Profit/(loss) on disposal of fixed assets	(5)	(11)
Total tax charge for the year	1,467	875

Factors that may affect future tax charges

In April 2023 the rate of corporation tax will increase to 25% from the current rate of 19%.

Page 30

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

11.	Intangible assets
	Group

		Goodwill
		£000
	Cost
	At 1 October 2020	20,551
	At 30 September 2021	20,551
	Amortisation
	At 1 October 2020	8,221
	Charge for the year on owned assets	1,028
	At 30 September 2021	9,249
	Net book value
	At 30 September 2021	11,302
	At 30 September 2020	12,330

Page 31

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

12.	Tangible fixed assets
	Group

	Leasehold property improvements	Plant and machinery	Motor vehicles	Fixtures and fittings	Assets under construction	Total
	£000	£000	£000	£000	£000	£000
Cost
At 1 October 2020	2,612	72,333	109	277	-	75,331
Additions	-	2,518	11	4	5,049	7,582
Disposals	-	(92)	-	-	-	(92)
At 30 September 2021	2,612	74,759	120	281	5,049	82,821
Depreciation
At 1 October 2020	2,160	34,149	105	234	-	36,648
Charge for the year on owned assets	93	2,323	4	15	-	2,435
Charge for the year on financed assets	-	2,037	-	-	-	2,037
Disposals	-	(92)	-	-	-	(92)
At 30 September 2021	2,253	38,417	109	249	-	41,028
Net book value
At 30 September 2021	359	36,342	11	32	5,049	41,793
At 30 September 2020	452	38,184	4	43	-	38,683

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2021	2020
	£000	£000


Plant and machinery	20,878	22,914
	20,878	22,914

Page 32

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

13.	Fixed asset investments

	Company

		Investments in subsidiary companies
		£000
	Cost
	At 1 October 2020	26,000
	At 30 September 2021	26,000

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Registered office	Class of shares	Holding

J & A Young (Holdings) Limited	15 Saxon Way East, Corby, NN18 9EY	Ordinary, ordinary A and non-voting	100%
J. and A. Young (Leicester) Limited	15 Saxon Way East, Corby, NN18 9EY	Ordinary and non-voting	100%
Jayplas (Corby) Limited	15 Saxon Way East, Corby, NN18 9EY	Ordinary and ordinary A	100%

Page 33

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

14.	Stocks
		Group	Group
		2021	2020
		£000	£000

Plastics	8,402	9,938
	8,402	9,938

The difference between purchase price or production cost of stocks and their replacement cost is not material.

The difference between purchase price or production cost of stocks and their replacement cost is not material.
The carrying value of stocks are stated net of cumulative impairment losses totalling £3,547k (2020: £1,263k). Impairment losses totalling £2,284k (2020: £1,063k credit) were recognised in the Statement of Comprehensive Income.
The increase in impairment provision is a result of market decline to an extent where management consider it appropriate to provide fully for these items. An additional waste disposal provision has been included within accruals in relation to these items amounting to £600k.

15.

Debtors

Group	Group	Company	Company
2021	2020	2021	2020
£000	£000	£000	£000


Trade debtors	10,288	6,185	-	-
Amounts owed by associated undertakings	3,335	1,349	-	835
Other debtors	1,147	1,486	-	-
	14,770	9,020	-	835

16.	Cash and cash equivalents
		Group	Group
		2021	2020
		£000	£000

Cash at bank and in hand	960	661
	960	661

Page 34

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

17.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2021	2020	2021	2020
		£000	£000	£000	£000

Bank loans	2,610	110	-	-
Trade creditors	10,197	6,603	-	-
Asset backed lending facility	798	3,297	-	-
Amounts owed to group undertakings	-	-	2,425	3,250
Amounts owed to associated undertakings	2,857	2,685	-	-
Other taxation and social security	985	1,826	-	-
Obligations under finance lease and hire purchase contracts	5,007	2,627	-	-
Other creditors	5,665	3,540	-	-
Financial instruments	288	414	-	-
	28,407	21,102	2,425	3,250

The following liabilities were secured:
	Group	Group
	2021	2020
	£000	£000

Bank loans	2,610	110
Asset backed lending facility	798	3,297
Obligations under finance lease and hire purchase contracts	5,007	2,627
	8,415	6,034

Details of security provided:

The bank loan is secured against all property and assets of the company by way of a debenture.
The asset backed lending facility is secured against trade debts as well as by way of debenture against all other property and assets of the company.
The hire purchase liabilities are secured against the fixed assets to which they relate but also against all other property and assets of the company in certain cases.

Page 35

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

18.	Creditors: Amounts falling due after more than one year
		Group	Group
		2021	2020
		£000	£000

Bank loans	1,210	1,320
Net obligations under finance leases and hire purchase contracts	6,808	9,232
	8,018	10,552

The following liabilities were secured:
	Group	Group
	2021	2020
	£000	£000


Bank loans	1,210	1,320
Net obligations under finance leases and hire purchase contracts	6,808	9,232
	8,018	10,552

Details of security provided:

The bank loan is secured against all property and assets of a subsidiary company by way of a debenture.
The hire purchase liabilities are secured against the fixed assets to which they relate but also against all other property and assets of a subsidiary company in certain cases.

Amounts payable in later than five years by instalments have interest payable at rates between 1.06% and 1.95% above LIBOR.

Page 36

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

19.	Loans
	Analysis of the maturity of loans is given below:
		Group	Group
		2021	2020
		£000	£000

Amounts falling due within one year
Bank loans	2,610	110
	2,610	110
Amounts falling due 1-2 years
Bank loans	110	110
	110	110
Amounts falling due 2-5 years
Bank loans	330	330
	330	330
Amounts falling due after more than 5 years
Bank loans	770	880
	770	880
	3,820	1,430

20.	Hire purchase and finance leases
	Minimum lease payments under hire purchase fall due as follows:
		Group	Group
		2021	2020
		£000	£000

Within one year	5,007	2,627
Between 1-5 years	6,146	7,676
Over 5 years	662	1,556
	11,815	11,859

Page 37

J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

21.	Financial instruments
		Group	Group	Company	Company
		2021	2020	2021	2020
		£000	£000	£000	£000

	Financial assets
	Financial assets that are debt instruments measured at amortised cost	14,086	7,676	-	835

Financial liabilities
Derivative financial instruments measured at fair value through profit or loss held as part of a trading portfolio	(288)	(414)	-	-
Financial liabilities measured at amortised cost	(29,487)	(25,874)	-	-
	(29,775)	(26,288)	-	-

	Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by associated undertakings and directors loan accounts.
	Derivative financial instruments measured at fair value through profit or loss comprise interest rate swaps.
	Financial liabilities measured at amortised cost comprise bank loans, trade creditors, asset backed lending facilities, amounts owed to associated undertakings, amounts owed to group undertakings and obligations under finance lease and hire purchase contracts.

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J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

22.	Deferred taxation
	Group

		2021
		£000

	At beginning of year	(2,936)
	Charged to profit or loss	(1,467)
	At end of year	(4,403)

		Group	Group
		2021	2020
		£000	£000

Accelerated capital allowances	(4,691)	(3,065)
Tax losses carried forward	220	63
Timing differences	68	66
	(4,403)	(2,936)

23.	Share capital
		2021	2020
		£000	£000

Allotted, called up and fully paid

23,400,000 (2020 - 23,400,000) Preferred ordinary shares of £1.00 each	23,400	23,400
132 (2020 - 132) Ordinary shares of £1.00 each	-	-

	23,400	23,400

All shares rank equally for voting rights. The ordinary shares rank behind the preference shares for dividends and in respect of par value for return on capital.

24.

Reserves

Profit and loss account

This reserve includes cumulative retained earnings.

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J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

25.	Capital commitments
	At 30 September 2021 the Group and Company had capital commitments as follows:
		Group	Group
		2021	2020
		£000	£000

	Contracted for but not provided in these financial statements	851	-
		851	-

26.	Pension commitments

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £200,000 (2020: £188,000).
Contributions totalling £23,000 (2020: £20,000) were payable to the scheme at the end of the year and are included in accruals.

27.	Commitments under operating leases
	At 30 September 2021 the group and the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		Group	Group
		2021	2020
		£000	£000

Not later than 1 year	33	47
Later than 1 year and not later than 5 years	12	45
	45	92

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J & A YOUNG GROUP LIMITED

Notes to the Financial Statements

For the Year Ended 30 September 2021

28.

Related party transactions

A company within which the directors have a beneficial interest
The group were charged rent of £655,000 (2020: £655,000). The group charged management charges of £200,000 (2020: £200,000) and paid various costs on behalf of the company which were recharged during the year.
The group were owed £2,046,187 (2020: £382,862) as 30 September 2021. No interest accrues on the balance (2020: £nil).
A company within which the directors have a beneficial interest
There were management charges made from the group of £225,182 (2020: £225,182) and various costs paid on behalf of the group which were recharged during the year.
The group were owed £1,288,365 (2020: £101,867) as 30 September 2021. No interest accrues on the balance (2020: £nil).
Pension Schemes
The group transacted with two pension trusts established for the purpose of providing pension and lump sum benefits for the group’s directors and shareholders.
The group were charged rent of £388,000 and £250,000 (2020: £388,000 and £250,000) and the group paid various costs on behalf of the pension schemes.
The group owed the pension trusts £1,108,123 and £1,659,136 (2020: £937,959 and £1,732,150) as 30 September 2021. No interest accrues on the balances (2020: £nil).
Directors' transactions and balances
Various loans exist between the directors and the group.
One director made repayments of £1,003,118 (2020: £960,586) and made drawings of £1,277,744 (2020: £165,093) in relation to non-company related expenditure. At the 30 September 2021 an amount of £340,451 was due to the group (2020: £65,825).
One director held a loan during the year group and made repayments of £79,283 (2020: £94,598) and made drawings for non-company related expenditure of £111,298 (2020: £142,961). At the 30 September 2021 an amount of £80,378 was due to the group (2020: £48,363).
One director held a loan during the year with the group and made repayments of £16,984 (2020: £29,581) and made drawings for non-company related expenditure of £31,937 (2020: £57,143). At the 30 September 2021 an amount of £42,514 was due to the group (2020: £27,562).
Key management personnel consist of the directors only and therefore remuneration details have not been duplicated in this note as they are available within note 8.

29.	Controlling party

The group is ultimately controlled by the directors as a result of their 100% ownership of the issued share capital.

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