J.E.B. Technologies Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01079733 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

FOR

J.E.B. TECHNOLOGIES LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

M S Isaacson

P Mehta

REGISTERED OFFICE:

Hampstead Avenue

Mildenhall

Suffolk

IP28 7AS

REGISTERED NUMBER:

01079733 (England and Wales)

AUDITORS:

DNG Dove Naish, Statutory Auditor

Eagle House

28 Billing Road

Northampton

Northamptonshire

NN1 5AJ

FIXED ASSETS

Tangible assets

4

3,397,442

3,436,375

CURRENT ASSETS

Stocks

490,675

279,540

Debtors

5

658,589

374,453

Cash at bank and in hand

123,200

589,327

1,272,464

1,243,320

CREDITORS

Amounts falling due within one year

6

6,584,899

6,784,067

NET CURRENT LIABILITIES

(5,312,435

)

(5,540,747

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(1,914,993

)

(2,104,372

)

CREDITORS

Amounts falling due after more than one year

7

-

(13,016

)

PENSION LIABILITY

12

(2,876,000

)

(3,109,000

)

NET LIABILITIES

(4,790,993

)

(5,226,388

)

CAPITAL AND RESERVES

Called up share capital

9

6,600

6,600

Revaluation reserve

10

379,567

379,567

Capital redemption reserve

3,400

3,400

Retained earnings

(5,180,560

)

(5,615,955

)

SHAREHOLDERS' FUNDS

(4,790,993

)

(5,226,388

)

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 25 September 2018 and were signed on its behalf by:

P Mehta - Director

1.	STATUTORY INFORMATION

J.E.B. Technologies Limited is a private company, limited by shares , registered in England and Wales.

The company's registered number and registered office address can be found on the Company

Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Based on discussions with the company's lenders and forecast financial performance, the directors

have a reasonable expectation that the group has adequate resources to continue in operational

existence for the foreseeable future. Thus they continue to adopt the going concern basis of

accounting in preparing the annual financial statements.

The financial statements for the prior year cover a 14 month period to 31 December 2016, the

comparatives are therefore not entirely comparable. The financial year end was changed to align with

the parent company.

Significant judgements and estimates

The preparation of financial statements requires the use of certain critical accounting estimates. It also

requires management to exercise its judgement in the process of applying the company accounting

policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions

and estimates are significant to the financial statements are disclosed within the individual accounting

policies below.

Turnover

Turnover represents the value, excluding Value Added Tax, of goods and services supplied to

customers during the year. Income is recognised when significant risks and rewards of ownership of

the goods have been transferred to the buyer, which depending on the specific contract terms is either

on dispatch or delivery of goods. Turnover on customer development and construction projects is

recognised in accordance with agreed milestones being met.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

20% on cost, 20% on reducing balance and 10% on cost

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

No depreciation is provided on a long term leasehold property where the lease is for a 999 year period,

as in the opinion of the directors, the residual value is such that any depreciation charge would be

immaterial.

Freehold buildings are improved such that residual values of these properties, based on prices

prevailing at the time of acquisition, are at least equal to their book values. It is the opinion of the

Directors that depreciation on any such properties as required by the Companies Act and accounting

standards would not be material.

Other leasehold property is depreciated over the life of the lease.

Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Where parts of an item of property, plant and equipment have different useful lives, they are accounted

for as separate items of property, plant and equipment.

Depreciation methods, useful lives and residual values are reviewed at each balance sheet date. The

selection of these residual values and estimated lives requires the exercise of judgement. The

directors are required to assess whether there is an indication of impairment to the carrying value of

assets. In making that assessment, judgements are made in estimating value in use. The directors

consider that the individual carrying values of assets are supportable by their value in use.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due

allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling

costs in bringing stocks to their present location and condition.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement,

except to the extent that it relates to items recognised in other comprehensive income or directly in

equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been

enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the year end and that are

expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable

that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at

the statement of financial position date. Transactions in foreign currencies are translated into sterling

at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account

in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.

Those held under hire purchase contracts are depreciated over their estimated useful lives. Those

held under finance leases are depreciated over their estimated useful lives or the lease term,

whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The

capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The company operates a defined benefit pension scheme in the United Kingdom. The scheme was

closed to new members and accruals from 31 October 2003. The assets of the scheme are held

separately from those of the company, being invested with insurance companies.

The pension scheme surplus or deficit is recognised in full on the group balance sheet. The deferred

tax relating to a defined benefit asset or liability is offset against the defined benefit asset or liability and

not included with other deferred tax assets or liabilities.

Financial instruments

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term

deposits with an original maturity date of three months or less.

Debtors and creditors with no stated interest rate and receivable or payable within one year are

recorded at transaction price. Any losses arising from impairment are recognised in the statement of

comprehensive income under administrative expenses.

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in

the assets of the entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a

similar debt instrument, those financial instruments are classed as financial liabilities. Financial

liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to

financial liabilities are included in the profit and loss account. Finance costs are calculated so as to

produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a

financial liability then this is classed as an equity instrument. Dividends and distributions relating to

equity instruments are debited direct to equity.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 31 (2016 - 31 ) .

4.	TANGIBLE FIXED ASSETS

Freehold

Fixtures

and long

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST OR VALUATION

At 1 January 2017

3,210,000

6,581,064

188,653

44,050

10,023,767

Additions

-

15,470

-

-

15,470

Disposals

-

-

-

(16,800

)

(16,800

)

At 31 December 2017

3,210,000

6,596,534

188,653

27,250

10,022,437

DEPRECIATION

At 1 January 2017

15,288

6,357,329

173,956

40,819

6,587,392

Charge for year

3,276

42,400

5,496

241

51,413

Eliminated on disposal

-

-

-

(13,810

)

(13,810

)

At 31 December 2017

18,564

6,399,729

179,452

27,250

6,624,995

NET BOOK VALUE

At 31 December 2017

3,191,436

196,805

9,201

-

3,397,442

At 31 December 2016

3,194,712

223,735

14,697

3,231

3,436,375

Freehold and long leasehold property includes freehold property with a cost and net book value of

£2,925,000 (2016: £2,925,000). Leasehold property has a cost of £285,000 (2016: £285,000) and net

book value of £266,436 (2016: £269,712).

Cost or valuation at 31 December 2017 is represented by:

Freehold

Fixtures

and long

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

Valuation in 2012

205,487

-

-

-

205,487

Cost

3,004,513

6,596,534

188,653

27,250

9,816,950

3,210,000

6,596,534

188,653

27,250

10,022,437

If long leasehold property had not been revalued they would have been included at the following

historical cost:

2017

2016

£

£

Cost

2,890,741

2,890,741

Aggregate depreciation

64,415

61,415

Freehold and leasehold property were revalued on an open market basis in 2012 by Savills, an

independent firm of Chartered Surveyors. The group has decided to adopt the transitional provisions

available under FRS 102 and the revalued amount will be used as the deemed cost going forward.

If freehold and leasehold property had not been revalued they would have been included at the

following historical cost:

2017

2016

£

£

Cost

2,890,741

2,890,741

Aggregate depreciation

64,415

61,415

The net book value of tangible fixed assets includes £ 34,751 (2016 - £ 43,439 ) in respect of assets

held under hire purchase contracts.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

428,174

293,537

VAT

100,250

-

Prepayments and accrued income

130,165

80,916

658,589

374,453

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Bank loans and overdrafts

584,620

69,977

Other loans

3,706,174

4,053,178

Hire purchase contracts

13,417

23,401

Trade creditors

423,163

176,938

Amounts owed to group undertakings

1,785,891

2,343,263

Tax

5,059

-

Social security and other taxes

29,485

26,992

VAT

-

36,450

Other creditors

7,090

4,368

Accruals and deferred income

30,000

49,500

6,584,899

6,784,067

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Hire purchase contracts

-

13,016

8.	SECURED DEBTS

The following secured debts are included within creditors:

2017

2016

£

£

Bank overdrafts

584,620

69,977

Hire purchase contracts

13,417

36,417

598,037

106,394

Bank loans and overdrafts are secured by a legal charge over the freehold property of the company

together with an unscheduled mortgage debenture incorporating a fixed and floating charge over all

current and future assets of the company.

Hire purchase liabilities are secured on the assets to which they relate.

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2017

2016

value:

£

£

6,600

Ordinary

1

6,600

6,600

10.

RESERVES

Revaluation

reserve

£

At 1 January 2017

and 31 December 2017

379,567

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Andrew Clifford (Senior Statutory Auditor)

for and on behalf of DNG Dove Naish, Statutory Auditor

12.	EMPLOYEE BENEFIT OBLIGATIONS

The company operates a defined benefit pension scheme in the United Kingdom. The scheme was

closed to new members and accruals from 31 October 2003. The assets of the scheme are held

separately from those of the company, being invested with insurance companies.

The amounts recognised in the balance sheet are as follows:

Defined benefit

pension plans

2017

2016

£

£

Present value of funded obligations

(16,380,000

)

(15,577,000

)

Fair value of plan assets

13,504,000

12,468,000

(2,876,000

)

(3,109,000

)

Present value of unfunded obligations

-

-

Deficit

(2,876,000

)

(3,109,000

)

Net liability

(2,876,000

)

(3,109,000

)

The amounts recognised in profit or loss are as follows:

Defined benefit

pension plans

2017

2016

£

£

Current service cost

-

-

Net interest from net defined benefit asset/liability

90,000

-

Past service cost

-

-

90,000

-

Actual return on plan assets

1,205,000

1,268,000

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit

pension plans

2017

2016

£

£

Opening defined benefit obligation

15,577,000

11,925,000

Interest cost

449,000

551,000

Actuarial losses/(gains)

523,000

3,999,000

Benefits paid

(169,000

)

(898,000

)

16,380,000

15,577,000

Changes in the fair value of scheme assets are as follows:

Defined benefit

pension plans

2017

2016

£

£

Opening fair value of scheme assets

12,468,000

12,098,000

Expected return

359,000

559,000

Actuarial gains/(losses)

846,000

709,000

Benefits paid

(169,000

)

(898,000

)

13,504,000

12,468,000

The amounts recognised in other comprehensive income are as follows:

Defined benefit

pension plans

2017

2016

£

£

Actuarial gains/(losses)

323,000

(3,290,000

)

Limit on recognition of assets

-

181,000

323,000

(3,109,000

)

The major categories of scheme assets as a percentage of total scheme assets are as follows:

Defined benefit

pension plans

2017

2016

Equities

51%

66%

Bonds

18%

16%

Property

4%

-

Cash

9%

3%

Other assets

18%

15%

100%

100%

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2017

2016

Discount rate

2.60%

2.90%

Revaluation of pensions in deferment

2.30%

2.40%

Future pension increases

3.40%

3.50%

Inflation (RPI)

3.30%

3.40%

Inflation (CPI)

2.30%

2.40%

Mortality

1.25%

1.25%

No employer contribution is expected to be paid to the scheme in the next year.

13.	GUARANTEES AND OTHER FINANCIAL COMMITMENTS

The company is party to an unlimited composite guarantee facility in respect of the bank borrowings of

other companies in the group. At the year end bank overdrafts, after right of set-off, covered by this

guarantee amounted to £2,544,764.

A fixed and floating charge over all assets of the group is held by the bank under the arrangements of

this cross guarantee.

14.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102

'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related

party transactions with wholly owned subsidiaries within the group.

15.	PARENT COMPANY

The parent undertaking, and ultimate holding company, of the smallest and largest group within which

the company belongs is Lunovi Limited, a company registered in England. A copy of the group

accounts can be obtained from the registered office which can be found on the Company Information

page.