ACCOUNTS - Final Accounts

Operating profit

The operating profit is stated after charging:

ADAM JONES INVESTMENTS LIMITED - Company Information

Caseware UK (AP4) 2016.0.181 2016.0.181 2017-07-312017-07-312017-07-31The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.falsetrueInvestment holding company and letting of commercial propertyfalse2016-08-01 05344904 2016-08-01 2017-07-31 05344904 2015-08-01 2016-07-31 05344904 2017-07-31 05344904 2016-07-31 05344904 c:CompanySecretary1 2016-08-01 2017-07-31 05344904 c:Director1 2016-08-01 2017-07-31 05344904 c:Director2 2016-08-01 2017-07-31 05344904 c:RegisteredOffice 2016-08-01 2017-07-31 05344904 c:Agent1 2016-08-01 2017-07-31 05344904 d:Buildings 2016-08-01 2017-07-31 05344904 d:Buildings d:ShortLeaseholdAssets 2016-08-01 2017-07-31 05344904 d:PlantMachinery 2016-08-01 2017-07-31 05344904 d:MotorVehicles 2016-08-01 2017-07-31 05344904 d:FurnitureFittings 2016-08-01 2017-07-31 05344904 d:OtherPropertyPlantEquipment 2016-08-01 2017-07-31 05344904 d:FreeholdInvestmentProperty 2017-07-31 05344904 d:FreeholdInvestmentProperty 2016-07-31 05344904 d:CurrentFinancialInstruments 2017-07-31 05344904 d:CurrentFinancialInstruments 2016-07-31 05344904 d:Non-currentFinancialInstruments 2017-07-31 05344904 d:Non-currentFinancialInstruments 2016-07-31 05344904 d:CurrentFinancialInstruments d:WithinOneYear 2017-07-31 05344904 d:CurrentFinancialInstruments d:WithinOneYear 2016-07-31 05344904 d:Non-currentFinancialInstruments d:AfterOneYear 2017-07-31 05344904 d:Non-currentFinancialInstruments d:AfterOneYear 2016-07-31 05344904 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2017-07-31 05344904 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2016-07-31 05344904 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2017-07-31 05344904 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2016-07-31 05344904 d:Non-currentFinancialInstruments d:MoreThanFiveYears 2017-07-31 05344904 d:Non-currentFinancialInstruments d:MoreThanFiveYears 2016-07-31 05344904 d:ShareCapital 2017-07-31 05344904 d:ShareCapital 2016-07-31 05344904 d:RetainedEarningsAccumulatedLosses 2017-07-31 05344904 d:RetainedEarningsAccumulatedLosses 2016-07-31 05344904 d:RetirementBenefitObligationsDeferredTax 2016-07-31 05344904 d:RetirementBenefitObligationsDeferredTax 2017-07-31 05344904 c:OrdinaryShareClass1 2016-08-01 2017-07-31 05344904 c:OrdinaryShareClass1 2017-07-31 05344904 c:FRS102 2016-08-01 2017-07-31 05344904 c:Audited 2016-08-01 2017-07-31 05344904 c:FullAccounts 2016-08-01 2017-07-31 05344904 c:PrivateLimitedCompanyLtd 2016-08-01 2017-07-31 05344904 d:Subsidiary1 2016-08-01 2017-07-31 05344904 d:Subsidiary1 1 2016-08-01 2017-07-31 05344904 c:Consolidated 2017-07-31 05344904 c:ConsolidatedGroupCompanyAccounts 2016-08-01 2017-07-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 05344904

ADAM JONES INVESTMENTS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

ADAM JONES INVESTMENTS LIMITED

COMPANY INFORMATION

Directors	Royston Adam Jones
	Clive Allen Jones


Company secretary	Clive Allen Jones


Registered number	05344904


Registered office	Coombes Wharf
	Chancel Way
	Halesowen
	West Midlands
	B62 8RP


Independent auditors	Lancaster Clements Limited
	Chartered Certified Accountants & Statutory Auditors
	Stanley House
	27 Wellington Road
	Bilston
	West Midlands
	WV14 6AH


Bankers	Lloyds Bank Plc
	87 Far Gosford Street
	Gosford Green
	Coventry
	West Midlands
	CV1 5DP


Solicitors	George Green LLP
	195 High Street
	Cradley Heath
	West Midlands
	B64 5HW

ADAM JONES INVESTMENTS LIMITED

CONTENTS

	Page
Group strategic report	1
Directors' report	2 - 3
Independent auditors' report	4 - 6
Consolidated statement of income and retained earnings	7
Consolidated statement of financial position	8
Company statement of financial position	9
Consolidated Statement of cash flows	10 - 11
Notes to the financial statements	12 - 29

ADAM JONES INVESTMENTS LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 JULY 2017

Introduction

The principal activity of Adam Jones Investments Limited is that of an investment holding company. During the previous year the company commenced a secondary activity of the letting of commercial property. The principal activities of the Group trading companies, Adam Jones & Sons (Blackheath) Limited and Midland Freight Service Limited, are that of the provision of road haulage and freight services. These financial statements consolidate the results of those companies and also the dormant subsidiaries Adam Jones Group Limited, Adam Jones Management Limited, R.W Priest (Woodside) Limited, Eagle Truck Sales Limited and Adam Jones Distribution Limited.

Business review

The Group profit for the year, after taxation, amounted to £298,400 which shows a 47% decrease on the prior year. Particulars of dividends paid and proposed are detailed in the notes to the financial statements. The director does not recommend payment of a final dividend.
The performance of the businesses during the year has been good given the continued economic uncertainties. The management continue to focus on turnover. Group turnover has increased by 1%.
The future trading position is anticipated to be relatively consistent with this year.

Principal risks and uncertainties

The Group’s objectives and policies regarding the exposure to price risk, credit risk and liquidity risk are not considered material as an assessment of the assets liabilities, financial position and profit of the Group. Cash flow has been identified as the principal risk affecting the business, however, there are sufficient funding resources currently available within the Group.

Financial key performance indicators

The directors consider that the Group's key performance indicators of turnover, gross profit margin and operating profit have been met.

Other key performance indicators

The directors consider there to be no further key performance indicators.

This report was approved by the board on 21 December 2017 and signed on its behalf.

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

Clive Allen Jones

Secretary

Page 1

ADAM JONES INVESTMENTS LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 JULY 2017

The directors present their report and the financial statements for the year ended 31 July 2017.

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;

∙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.

Results and dividends

The profit for the year, after taxation, amounted to £286,516 (2016 - £566,914).

The directors do not propose to recommend payment of a dividend.

Directors

The directors who served during the year were:

Royston Adam Jones

Clive Allen Jones

Future developments

The directors consider that there are no future developments of the company required to be disclosed.

Page 2

ADAM JONES INVESTMENTS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2017

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.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

Under section 487(2) of the Companies Act 2006, Lancaster Clements Limited will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 21 December 2017 and signed on its behalf.

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

Clive Allen Jones

Secretary

Page 3

ADAM JONES INVESTMENTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF ADAM JONES INVESTMENTS LIMITED

Opinion

We have audited the financial statements of Adam Jones Investments Limited for the year ended 31 July 2017, set out on pages 7 to 29. 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).

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.

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 31 July 2017 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

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 Auditors' report thereon. Our opinion on the financial statements does not cover the information and, except to the extent otherwise

Page 4

ADAM JONES INVESTMENTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF ADAM JONES INVESTMENTS LIMITED (CONTINUED)

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.

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 and 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.

Page 5

ADAM JONES INVESTMENTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF ADAM JONES INVESTMENTS LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement on page 2, 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.

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 financial statements.

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

Mark Anthony Cupitt (Senior statutory auditor)

for and on behalf of

Lancaster Clements Limited

Chartered Certified Accountants

Statutory Auditors

Stanley House

27 Wellington Road

Bilston

West Midlands

WV14 6AH

21 December 2017

Page 6

ADAM JONES INVESTMENTS LIMITED

CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 JULY 2017

	2017	2016
Note	£	£


Turnover	4	11,234,106	11,129,661
Cost of sales		(10,059,965)	(9,443,568)
Gross profit		1,174,141	1,686,093
Administrative expenses		(967,476)	(969,167)
Other operating income	5	193,265	58,062
Operating profit	6	399,930	774,988
Income from participating interests		3,000	5,375
Interest receivable and similar income	10	559	673
Interest payable and expenses	11	(58,414)	(70,543)
Profit before tax		345,075	710,493
Tax on profit	12	(58,559)	(143,579)
Profit after tax		286,516	566,914



Retained earnings at the beginning of the year	2,281,234	1,714,320
	2,281,234	1,714,320
Profit for the year	286,516	566,914
Retained earnings at the end of the year	2,567,750	2,281,234

The notes on pages 12 to 29 form part of these financial statements.

Page 7

ADAM JONES INVESTMENTS LIMITED

REGISTERED NUMBER: 05344904

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 JULY 2017

		2017		2016
Note		£		£

Fixed assets
Tangible assets	14		1,980,090		2,034,147
Investments	15		250		250
			1,980,340		2,034,397
Current assets
Stocks	17	18,448		26,793
Debtors: amounts falling due within one year	18	3,058,057		3,422,793
Cash at bank and in hand	19	51,717		256,447
		3,128,222		3,706,033
Creditors: amounts falling due within one year	20	(1,845,255)		(2,658,583)
Net current assets			1,282,967		1,047,450
Total assets less current liabilities			3,263,307		3,081,847
Creditors: amounts falling due after more than one year	21		(502,562)		(600,033)
Provisions for liabilities
Deferred tax	24	(192,935)		(200,520)
			(192,935)		(200,520)
Net assets			2,567,810		2,281,294

Capital and reserves
Called up share capital	25	60	60
Profit and loss account		2,567,750	2,281,234
		2,567,810	2,281,294

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 21 December 2017.

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

Royston Adam Jones

Director

The notes on pages 12 to 29 form part of these financial statements.

Page 8

ADAM JONES INVESTMENTS LIMITED

REGISTERED NUMBER: 05344904

COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 31 JULY 2017

		2017		2016
Note		£		£

Fixed assets
Investments	15		60		60
Investment property	16		775,000		775,000
			775,060		775,060
Current assets
Cash at bank and in hand	19	125		289
		125		289
Creditors: amounts falling due within one year	20	(213,498)		(194,119)
Net current liabilities			(213,373)		(193,830)
Total assets less current liabilities			561,687		581,230

Creditors: amounts falling due after more than one year	21		(346,460)		(389,551)
Provisions for liabilities
Deferred taxation	24	(19,700)		(28,510)
			(19,700)		(28,510)
Net assets			195,527		163,169

Capital and reserves
Called up share capital	25	60	60
Profit and loss account		195,467	163,109
		195,527	163,169

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 21 December 2017.

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

Royston Adam Jones

Director

Page 9

ADAM JONES INVESTMENTS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 JULY 2017

			2017	2016
			£	£

Cash flows from operating activities
Profit for the financial year	286,516	566,914
Adjustments for:
Depreciation of tangible assets	319,138	332,630
(Profit)/loss on disposal of tangible assets	(39,778)	15,034
Interest paid	58,414	70,543
Interest received	(3,559)	(6,048)
Taxation charge	58,559	143,579
Decrease in stocks	8,345	12,008
Decrease/(increase) in debtors	364,736	(301,571)
(Decrease)/increase in creditors	(309,751)	329,311
Corporation tax (paid)	(127,158)	(42,769)
Net cash generated from operating activities	615,462	1,119,631
Cash flows from investing activities
Purchase of tangible fixed assets	(343,405)	(462,781)
Sale of tangible fixed assets	118,100	50,900
Interest received	559	673
HP interest paid	(29,964)	(32,162)
Income from investments in related companies	3,000	5,375
Net cash from investing activities	(251,710)	(437,995)

Page 10

ADAM JONES INVESTMENTS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 JULY 2017

		2017	2016
		£	£


Cash flows from financing activities
New secured loans	-	160,000
Repayment of loans	(41,452)	-
Repayment of/new finance leases	(56,410)	(153,810)
Interest paid	(28,450)	(38,381)
Net cash used in financing activities	(126,312)	(32,191)
Net increase in cash and cash equivalents	237,440	649,445
Cash and cash equivalents at beginning of year	(414,307)	(1,063,752)
Cash and cash equivalents at the end of year	(176,867)	(414,307)

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	51,717	256,447
Bank overdrafts	(228,584)	(670,754)
	(176,867)	(414,307)

Page 11

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

1.	General information

The company is registered in England and Wales and was incorporated on 27 January 2005. It's registered office is Coombes Wharf, Chancel Way, Halesowen, West Midlands, B62 8RP. The company's principal activity continues to be that of an investment holding company and letting of commercial property.

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 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 Statement of financial position, 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 income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.

2.3

Revenue

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 measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

Page 12

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

2.Accounting policies (continued)

2.4

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the following methods.

Depreciation is provided on the following basis:

Freehold property	-	2% straight line
Short-term leasehold property	-	2% straight line
Plant and machinery	-	10% straight line
Motor vehicles	-	10% straight line
Fixtures, fittings and equipment	-	20% reducing balance
Commercial vehicles and trailer	-	20% reducing balance

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated statement of income and retained earnings.

2.5

Investment property

Investment property is carried at fair value determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Consolidated statement of income and retained earnings.

2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.7

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 outbasis. Work in progress and finished goods include labour and attributable overheads.

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

Page 13

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

2.Accounting policies (continued)

2.8

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.

2.9

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.

2.10

Financial instruments

The Group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

2.11

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.

2.12

Finance costs

Finance costs are charged to the Consolidated statement of income and retained earnings 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.

2.13

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to the Consolidated statement of income and retained earnings on a straight line basis over the lease term.

Page 14

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

2.Accounting policies (continued)

2.14

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 the Consolidated statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

2.15

Interest income

Interest income is recognised in the Consolidated statement of income and retained earnings using the effective interest method.

2.16

Borrowing costs

All borrowing costs are recognised in the Consolidated statement of income and retained earnings in the year in which they are incurred.

2.17

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 the Consolidated statement of income and retained earnings in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.

Page 15

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

2.Accounting policies (continued)

2.18

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Consolidated statement of income and retained earnings, 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 reporting 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 Statement of financial position date, except that:

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

∙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 reporting date.

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

To be able to prepare financial statements in accordance with FRS102, Adam Jones Investments Limited must make certain estimates and judgments that have an impact on the policies and the amounts reported in the annual accounts. The estimates and judgments are based on historical experiences and other factors including expectations of future events that are believed to be reasonable at the time such estimates and judgments are made. Actual experience may vary from these estimates. The estimates and assumptions which have the most significant risk of causing a material adjustment to the carrying amounts of assets and liabilities are discussed below:
Depreciation and amortisation:
The Company accounts for depreciation and amortisation in accordance with FRS102. The depreciation and amortisation expense is the recognition of the decline in the value of the assets and allocation of the cost of the asset over the periods in which the asset will be used. Judgments are made on the estimated useful life of the assets which are regularly reviewed to reflect the changing environment.

Page 16

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

Turnover

The whole of the turnover is attributable to the company's principal business activity.

All turnover arose within the United Kingdom.

5.	Other operating income
		2017	2016
		£	£

Net rents receivable	182,865	58,062
Sundry income	10,400	-

Depreciation of tangible fixed assets	319,138	332,630
Fees payable to the Group's auditor and its associates for the audit of the Company's annual financial statements	18,643	19,491
Other operating lease rentals	329,754	282,088
Defined contribution pension cost	28,787	28,216

7.	Auditors' remuneration
		2017	2016
		£	£

Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements

12,300

Fees payable to the Group's auditor and its associates in respect of:
Audit-related assurance services	12,300	12,300
All other services	6,343	7,191
	18,643	19,491

Page 17

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

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

Group	Group	Company	Company
2017	2016	2017	2016
£	£	£	£


Wages and salaries	3,227,045	3,143,048	-	-
Social security costs	280,751	282,921	-	-
Cost of defined contribution scheme	28,787	28,216	-	-
	3,536,583	3,454,185	-	-

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

	2017	2016
	No.	No.

Drivers	92	91
Garage	8	8
Management and administration	12	8

	112	107

9.	Directors' remuneration
		2017	2016
		£	£

	Directors' emoluments	37,714	34,503

10.	Interest receivable
		2017	2016
		£	£

Other interest receivable

559

673

Page 18

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

11.	Interest payable and similar charges
		2017	2016
		£	£

Bank interest payable	15,033	15,259
Finance leases and hire purchase contracts	29,964	32,162
Other interest payable	13,417	23,122
	58,414	70,543

Corporation tax
Current tax on profits for the year	66,426	156,390
Adjustments in respect of previous periods	(282)	(31)
	66,144	156,359

Total current tax	66,144	156,359

Deferred tax
Origination and reversal of timing differences	(7,585)	(12,780)
Total deferred tax	(7,585)	(12,780)


	Taxation on profit on ordinary activities	58,559	143,579

Page 19

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

12.Taxation (continued)

Profit on ordinary activities before tax

345,076

710,493

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19.67% (2016 - 20%)	67,876	142,099
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	1,041	1,523
Adjustments to tax charge in respect of prior periods	(282)	(31)
Capital gains	203	-
Other differences leading to an increase (decrease) in the tax charge	(10,279)	(12)
Total tax charge for the year	58,559	143,579

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

13.	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 income and retained earnings in these financial statements. The profit after tax of the parent Company for the year was £32,357 (2016 - £141,289).

Page 20

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

14.	Tangible fixed assets
	Group

	Freehold property	Short-term leasehold property	Plant and machinery	Motor vehicles	Fixtures and fittings
	£	£	£	£	£
Cost or valuation
At 1 August 2016	637,246	39,163	50,360	40,999	57,545
Additions	-	8,700	32,224	-	4,485
Disposals	-	-	-	(40,999)	-
At 31 July 2017	637,246	47,863	82,584	-	62,030
Depreciation
At 1 August 2016	16,041	1,083	44,808	31,443	18,579
Charge for the year on owned assets	12,747	549	1,149	1,003	3,536
Charge for the year on financed assets	-	-	1,826	-	4,200
Disposals	-	-	-	(32,446)	-
At 31 July 2017	28,788	1,632	47,783	-	26,315
Net book value
At 31 July 2017	608,458	46,231	34,801	-	35,715
At 31 July 2016	621,205	38,080	5,552	9,556	38,966

Page 21

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

14.Tangible fixed assets (continued)

	Commercial vehicles and trailers	Total
	£	£
Cost or valuation
At 1 August 2016	3,416,548	4,241,861
Additions	297,995	343,404
Disposals	(295,050)	(336,049)
At 31 July 2017	3,419,493	4,249,216
Depreciation
At 1 August 2016	2,095,761	2,207,715
Charge for the year on owned assets	157,430	176,414
Charge for the year on financed assets	136,698	142,724
Disposals	(225,281)	(257,727)
At 31 July 2017	2,164,608	2,269,126
Net book value
At 31 July 2017	1,254,885	1,980,090
At 31 July 2016	1,320,788	2,034,147

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2017	2016
	£	£


Furniture, fittings and equipment	20,107	24,307
Commercial vehicles and trailers	529,589	697,898
	549,696	722,205

Page 22

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

15.	Fixed asset investments
	Group

		Other fixed asset investments
		£
	Cost or valuation
	At 1 August 2016	250
	At 31 July 2017	250

	Net book value
	At 31 July 2017	250
	At 31 July 2016	250

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Class of shares	Holding	Principal activity

Adam Jones Group Limited

Ordinary £1

100%

Dormant Investment Company

Page 23

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

15.Fixed asset investments (continued)

	Company

		Investments in subsidiary companies
		£
	Cost or valuation
	At 1 August 2016	60
	At 31 July 2017	60

	Net book value
	At 31 July 2017	60
	At 31 July 2016	60

Page 24

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

16.	Investment property

If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
	2017	2016
	£	£

Historic cost	637,246	637,246
Accumulated depreciation and impairments	(28,788)	(16,041)
	608,458	621,205

	Company

		Freehold investment property
		£
	Valuation
	At 1 August 2016	775,000
	At 31 July 2017	775,000

The 2017 valuations were made by the directors, on an open market value for existing use basis.

17.	Stocks
		Group	Group	Company	Company
		2017	2016	2017	2016
		£	£	£	£

Raw materials and consumables	18,448	26,793	-	-
	18,448	26,793	-	-

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

Page 25

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

18.

Debtors

Group	Group	Company	Company
2017	2016	2017	2016
£	£	£	£


Trade debtors	2,206,054	2,331,232	-	-
Other debtors	730,761	689,941	-	-
Prepayments and accrued income	121,242	401,620	-	-
	3,058,057	3,422,793	-	-

19.	Cash and cash equivalents
		Group	Group	Company	Company
		2017	2016	2017	2016
		£	£	£	£

Cash at bank and in hand	51,717	256,447	125	289
Less: bank overdrafts	(228,584)	(670,755)	-	-
	(176,867)	(414,308)	125	289

20.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2017	2016	2017	2016
		£	£	£	£

Bank overdrafts	228,584	670,755	-	-
Bank loans	42,661	41,022	42,661	41,022
Trade creditors	646,351	980,805	1,200	-
Amounts owed to group undertakings	-	-	36,349	22,009
Corporation tax	66,426	127,440	5,766	4,955
Other taxation and social security	350,274	349,609	2,190	2,390
Obligations under finance lease and hire purchase contracts	243,709	245,739	-	-
Other creditors	152,101	151,231	109,974	108,385
Accruals and deferred income	115,149	91,982	15,358	15,358
	1,845,255	2,658,583	213,498	194,119

Page 26

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

21.	Creditors: Amounts falling due after more than one year
		Group	Group	Company	Company
		2017	2016	2017	2016
		£	£	£	£

Bank loans	346,460	389,551	346,460	389,551
Net obligations under finance leases and hire purchase contracts	156,102	210,482	-	-
	502,562	600,033	346,460	389,551

22.	Loans

		Group	Group	Company	Company
		2017	2016	2017	2016
		£	£	£	£

Amounts falling due within one year
Bank loans	42,661	41,022	42,661	41,022
	42,661	41,022	42,661	41,022
Amounts falling due between one and two years
Bank loans	86,371	42,651	86,371	42,651
	86,371	42,651	86,371	42,651
Amounts falling due between two and five years
Bank loans	224,073	134,359	224,073	134,359
	224,073	134,359	224,073	134,359
Amounts falling due over five years
Bank loans	36,015	212,541	36,015	212,541
	36,015	212,541	36,015	212,541
	389,120	430,573	389,120	430,573

Page 27

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

23.	Hire purchase and finance leases
	Minimum lease payments under hire purchase fall due as follows:
		Group	Group
		2017	2016
		£	£

Within one year	243,710	245,739
Between 1-2 years	131,769	162,175
Between 2-5 years	24,332	48,307
	399,811	456,221

24.	Deferred taxation
	Group

	2017	2016
	£	£

At beginning of year	200,520	213,300
Charged to profit or loss	(7,585)	(12,780)
At end of year	192,935	200,520

	Company

	2017	2016
	£	£

At beginning of year	28,510	-
Charged to profit or loss	(8,810)	28,510
At end of year	19,700	28,510

The provision for deferred taxation is made up as follows:
	Group	Group	Company	Company
	2017	2016	2017	2016
	£	£	£	£

	Accelerated capital allowances	192,935	200,520	-	-
	Revaluation of investment property	-	-	19,700	28,510

Page 28

ADAM JONES INVESTMENTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2017

Allotted, called up and fully paid

1,200 Ordinary shares of £0.05 each	60	60

26.	Pension commitments

The Group operates a defined contribution pension scheme in respect of the staff. The scheme ans its assets are held by independent managers. The pension charge represents contributions due from the Group and amounted to £28,787 (2016 £28,216).

27.	Commitments under operating leases
	At 31 July 2017 the Group and the Company had future minimum lease payments under non-cancellable operating leases as follows:
		Group	Group
		2017	2016
		£	£

Not later than 1 year	90,391	102,300
Later than 1 year and not later than 5 years	365,979	349,327
	456,370	451,627

28.	Limitation of auditors liability

The group has entered into a liability limitation agreement, the principal terms being as follows:-
Any liability is limited, pursuant to Section 537 of the Companies Act 2006, to no less than such amount as is considered fair and reasonable in each individual circumstance and to a maximum of ten times the level of the fee for the audit service being carried out.
The resolution approving this agreement is dated 1 July 2017.

Page 29