Company Registration No. 05534540 (England and Wales)
DACSA LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
DACSA LIMITED
COMPANY INFORMATION
Directors
Miss Araceli Ciscar Garcia
Mr Ricardo Ciscar Garcia
Mr Ricardo Ciscar Martinez
Company number
05534540
Registered office
Crosby Road South
Liverpool
L21 4PF
Auditor
Cowgill Holloway LLP
Regency House
45-51 Chorley New Road
Bolton
Lancashire
BL1 4QR
DACSA LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
DACSA LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Fair review of the business
Business model
The business procures maize from outside the UK. The maize is milled in the UK premises in Liverpool and sold onto customers throughout the UK. The company seeks to add value through the quality of its products and its relationships with both its raw material suppliers and its customers.
Business review and results
During the year turnover has decreased by £256,942. Turnover has decreased as a result of a decrease in sales value and volume for certain contracts and by-products. The companies gross profit margin decreased from 24.82% in 2020 to 21.46%. The directors are pleased to report a profit before tax of £3,932,790 (2020: £6,897,994).
The directors have approved a final dividend for the year ended 31 December 2021 of £3,903,154 (2020: £5,428,000).
Key performance indicators
Key performance indicators continue to be used throughout the business. The company's focus is on improvements in gross margin and reducing operating costs, supported by robust cash flow monitoring.
Principal risks and uncertainties
Price risk
The market continues to be highly competitive and so it is important to be prepared to obtain the best supplies in quality and price.
Foreign exchange risk
The company has a number of customers whom it invoices in euros. The effect of any exchange rate variance is mitigated partially by the fact that the company also purchases the vast majority of its raw materials in euros.
The uncertainty of the foreign currency markets make it difficult for the directors to assess the likely impact of future movements in the euro to sterling exchange rate. However, the use of hedging instruments assists in minimising exposure.
Credit risk
The company looks at the trading history of any new customers before allowing any trade to take place. Any potential customers with poor or no trading history are required to pay on delivery for initial orders. The company’s established customers' credit terms are monitored on a regular basis which provides the directors’ with comfort over this area
Liquidity risk
The company manages liquidity risk by maintaining adequate reserves and by monitoring forecasts and actual cash flows.
Beyond the financial control measures also non-financial performance indicators are of central importance for the company's performance. They relate to the company's relationships with customers and employees. DACSA Limited employed an average of 36 staff in 2021 (2020: 36).
Principal risks and uncertainties
Future developments
The company aims to continue to grow its market share in the industry and continue to increase turnover and margin. The company’s mission is to maintain the highest quality, safety and efficacy in all products whilst creating sustainable value for our customers.
DACSA LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Miss Araceli Ciscar Garcia
Director
23 August 2022
DACSA LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company during the year was that of mill work producing maize products.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £3,903,154 (2020: £5,428,200). The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Miss Araceli Ciscar Garcia
Mr Ricardo Ciscar Garcia
Mr Ricardo Ciscar Martinez
Auditor
The auditors, Cowgill Holloway LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
Although the company has consumed more than 40,000 kWh of energy in this reporting period, it is not required to report on its emissions, energy consumption or energy efficiency activities on the basis that it is not a large company.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
DACSA LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
Statement of disclosure to auditor
The directors who held office at the date of approval of this directors' report confirm that, so far as they are each aware, there is no relevant audit information of which the company's auditor is unaware; and each director has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
On behalf of the board
Miss Araceli Ciscar Garcia
Director
23 August 2022
DACSA LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DACSA LIMITED
- 5 -
Opinion
We have audited the financial statements of Dacsa Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 company's affairs as at 31 December 2021 and of its 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
DACSA LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DACSA LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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, 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and 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 areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: Companies Act 2006, Health and Safety at Work Act and Employment Law.
DACSA LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DACSA LIMITED
- 7 -
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:
Matters are discussed amongst the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud
Identifying and assessing the design and effectiveness of controls that management have in place to prevent and detect fraud
Detecting and responding to the risks of fraud following discussions with management and enquiring as to whether management have knowledge of any actual, suspected or alleged fraud;
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Alex Hesketh (Senior Statutory Auditor)
For and on behalf of Cowgill Holloway LLP
23 August 2022
Chartered Accountants
Statutory Auditor
Regency House
45-51 Chorley New Road
Bolton
Lancashire
BL1 4QR
DACSA LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
2021
2020
Notes
£
£
Turnover
3
56,349,117
56,606,059
Cost of sales
(44,255,460)
(42,555,762)
Gross profit
12,093,657
14,050,297
Administrative expenses
(7,967,936)
(7,020,584)
Other operating income
8,103
Operating profit
4
4,125,721
7,037,816
Interest receivable and similar income
7
7,453
150
Interest payable and similar expenses
8
(200,384)
(139,972)
Profit before taxation
3,932,790
6,897,994
Tax on profit
9
(841,431)
(1,318,223)
Profit for the financial year
3,091,359
5,579,771
The profit and loss account has been prepared on the basis that all operations are continuing operations.
DACSA LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Goodwill
11
130,410
195,615
Tangible assets
12
3,454,629
1,936,349
Investments
13
120,000
120,000
3,705,039
2,251,964
Current assets
Stocks
14
19,409,855
8,102,636
Debtors
15
7,529,784
4,755,179
Cash at bank and in hand
927,308
1,116,636
27,866,947
13,974,451
Creditors: amounts falling due within one year
16
(31,038,014)
(15,027,874)
Net current liabilities
(3,171,067)
(1,053,423)
Total assets less current liabilities
533,972
1,198,541
Provisions for liabilities
17
(400,509)
(253,283)
Net assets
133,463
945,258
Capital and reserves
Called up share capital
19
1,000
1,000
Profit and loss reserves
132,463
944,258
Total equity
133,463
945,258
The financial statements were approved by the board of directors and authorised for issue on 23 August 2022 and are signed on its behalf by:
Mr Ricardo Ciscar Martinez
Director
Company Registration No. 05534540
DACSA LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2020
1,000
792,687
793,687
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
5,579,771
5,579,771
Dividends
10
-
(5,428,200)
(5,428,200)
Balance at 31 December 2020
1,000
944,258
945,258
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
3,091,359
3,091,359
Dividends
10
-
(3,903,154)
(3,903,154)
Balance at 31 December 2021
1,000
132,463
133,463
DACSA LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
7,409,247
7,002,114
Interest paid
(200,384)
(139,972)
Income taxes paid
(1,820,841)
(1,113,465)
Net cash inflow from operating activities
5,388,022
5,748,677
Investing activities
Purchase of tangible fixed assets
(1,681,649)
(243,336)
Purchase of fixed asset investments
(120,000)
Interest received
7,453
150
Net cash used in investing activities
(1,674,196)
(363,186)
Financing activities
Dividends paid
(3,903,154)
(5,428,200)
Net cash used in financing activities
(3,903,154)
(5,428,200)
Net decrease in cash and cash equivalents
(189,328)
(42,709)
Cash and cash equivalents at beginning of year
1,116,636
1,159,345
Cash and cash equivalents at end of year
927,308
1,116,636
DACSA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 12 -
1
Accounting policies
Company information
Dacsa Limited is a limited company domiciled and incorporated in England. The registered office is Crosby Road South, Liverpool, L21 4PF.
The Company’s principal activities are detailed in the Directors' report. The nature of the Company’s operations are detailed in the Strategic report.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Intangible fixed assets - goodwill
Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired is capitalised, classified as an asset on the balance sheet and amortised over its estimated useful life up to a maximum of 10 years. This length of time is presumed to be the maximum useful life of purchased goodwill because it is difficult to make projections beyond this period. Goodwill is reviewed for impairment at the end of the first full financial year following each acquisition and subsequently as and when necessary if circumstances emerge that indicate that the carrying value may not be recoverable.
DACSA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
1.5
Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings leasehold
15 - 35 years straight line
Assets under construction
nil
Plant and machinery
5 - 20 years straight line
Fixtures, fittings & equipment
4 - 12 years straight line
Motor vehicles
3 - 5 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Fixed asset investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
1.7
Impairment of fixed assets
At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Stocks
Stocks are stated at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. Cost is determined using the weighted average cost basis and comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
DACSA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
1.9
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets are classified into specified categories. The classification depends on the nature and purpose of the financial assets and is determined at the time of recognition.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
DACSA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 15 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities are initially measured at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Other financial liabilities classified as fair value through profit or loss are measured at fair value.
Other financial liabilities
Other financial liabilities, are initially measured at fair value, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability to the net carrying amount on initial recognition.
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 company after deducting all of its liabilities.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
1.12
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
DACSA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 16 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or are capitalised as intangible or tangible fixed asset.
The best estimate of the expenditure required to settle an obligation for termination benefits is recognised immediately as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The amount charged to the profit and loss account represents the contributions payable to the scheme in respect of the accounting period.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
DACSA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 17 -
1.17
Dividends are only recognised as a liability at that date to the extent that they are declared prior to the year end. Unpaid dividends that do not meet these criteria are disclosed in the notes to the financial statements.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The directors do not consider there to be any sources of estimation uncertainty which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2021
2020
£
£
Turnover analysed by class of business
Sale of maize products
56,349,117
56,606,059
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
56,349,117
56,606,059
2021
2020
£
£
Other significant revenue
Interest income
7,453
150
4
Operating profit
2021
2020
Operating profit for the year is stated after charging:
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
432,706
329,689
Depreciation of owned tangible fixed assets
163,369
154,202
Amortisation of intangible assets
65,205
65,205
DACSA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
5
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and its associates:
£
£
For audit services
Audit of the company's financial statements
18,500
15,725
Non-audit fees paid to the company's auditor was £2,375 (2020: £1,900).
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Number of production staff
27
27
Number of administrative staff
9
9
Total
36
36
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
1,897,462
1,842,279
Social security costs
214,974
211,813
Pension costs
109,522
90,987
2,221,958
2,145,079
Directors emoluments are paid by the ultimate parent undertaking. Details of these costs can be found in the financial statements of Maicerias Espanolas SA. The total remuneration of the managers, who are considered to be the key management personnel of the Company, was £107,058 (2020: £107,415).
7
Interest receivable and similar income
2021
2020
£
£
Interest income
Bank deposits
2,076
150
Other interest income
5,377
-
Total interest revenue
7,453
150
DACSA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
7
Interest receivable and similar income
2021
2020
(Continued)
- 19 -
Investment income includes the following:
2021
2020
£
£
Interest on financial assets not measured at fair value through profit or loss
2,076
150
8
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
138,274
96,622
Other finance costs:
Other interest
62,110
43,350
200,384
139,972
9
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
763,981
1,288,411
Adjustments in respect of prior periods
(69,776)
Total current tax
694,205
1,288,411
Deferred tax
Origination and reversal of timing differences
147,226
29,812
Total tax charge
841,431
1,318,223
DACSA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
9
Taxation
(Continued)
- 20 -
The charge for the year can be reconciled to the profit per the profit and loss account as follows:
2021
2020
£
£
Profit before taxation
3,932,790
6,897,994
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
747,230
1,310,619
Tax effect of expenses that are not deductible in determining taxable profit
76,418
246
Adjustments in respect of prior years
(13,257)
Permanent capital allowances in excess of depreciation
31,040
7,358
Taxation for the year
841,431
1,318,223
10
Dividends
2021
2020
£
£
Final paid
3,903,154
5,428,200
3,903,154
5,428,200
The dividend for the year ended 31 December 2021 was equivalent to £3,903.15 per share (2020: £5,428.20 per share).
11
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2021 and 31 December 2021
1,110,033
Amortisation and impairment
At 1 January 2021
914,418
Amortisation charged for the year
65,205
At 31 December 2021
979,623
Carrying amount
At 31 December 2021
130,410
At 31 December 2020
195,615
DACSA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
12
Tangible fixed assets
Land and buildings leasehold
Assets under construction
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2021
1,617,920
139,592
4,025,664
115,691
2,248
5,901,115
Additions
1,307,487
44,404
310,988
18,770
1,681,649
At 31 December 2021
2,925,407
183,996
4,336,652
134,461
2,248
7,582,764
Depreciation and impairment
At 1 January 2021
1,213,809
2,730,720
17,989
2,248
3,964,766
Depreciation charged in the year
27,263
121,427
14,679
163,369
At 31 December 2021
1,241,072
2,852,147
32,668
2,248
4,128,135
Carrying amount
At 31 December 2021
1,684,335
183,996
1,484,505
101,793
3,454,629
At 31 December 2020
404,111
139,592
1,294,944
97,702
1,936,349
13
Fixed asset investments
2021
2020
£
£
Unlisted investments
120,000
120,000
The company has not designated any financial assets that are not classified as financial assets at fair value through profit or loss.
14
Stocks
2021
2020
£
£
Raw materials and consumables
18,614,296
7,647,939
Finished goods and goods for resale
795,559
454,697
19,409,855
8,102,636
DACSA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
15
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
6,483,753
4,345,731
Corporation tax recoverable
376,876
Other debtors
568,208
287,847
Prepayments and accrued income
100,947
121,601
7,529,784
4,755,179
16
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
882,475
642,415
Amounts owed to group undertakings
28,961,681
13,209,704
Corporation tax
749,760
Other taxation and social security
70,997
79,204
Other creditors
391,991
Accruals and deferred income
730,870
346,791
31,038,014
15,027,874
Amounts owed to group undertakings totalling £28,961,681 (2020: £13,209,704) incur interest and are repayable on demand.
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2020
Balances:
£
£
ACAs
400,509
253,283
2021
Movements in the year:
£
Liability at 1 January 2021
253,283
Charge to profit or loss
147,226
Liability at 31 December 2021
400,509
DACSA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 23 -
18
Retirement benefit schemes
Defined contribution schemes
The Company operates a defined contribution pension scheme for all qualifying employees in the United Kingdom. The assets of the scheme are held separately from those of the Company in an independently administered fund. The contributions payable by the Company charged to profit or loss amounted to £109,522 (2020: £90,987).
19
Share capital
2021
2020
£
£
Ordinary share capital
Issued and fully paid
1,000 Ordinary Shares of £1 each
1,000
1,000
20
Related party transactions
The company has taken advantage of the exemption available in accordance with FRS 102 (33.1A) not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.
21
Operating lease commitments
At the reporting end date the company had outstanding commitments for total future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2021
2020
£
£
Within one year
58,433
56,015
Between two and five years
219,610
200,000
In over five years
2,166,667
2,216,667
2,444,710
2,472,682
22
Controlling party
The company is a wholly owned subsidiary of Maicerias Espanolas SA, a company incorporated in Spain with its registered office at Ctra Barcelona K.m 5, 46132 Almassera (Valencia). Maicerias Espanolas SA is owned by the directors of DACSA Limited.
The smallest and largest group of companies, of which the company is a member that produces consolidated financial statements is Maicerias Espoanolas SA, a company incorporated in Spain.
The ultimate controlling party is Maicerias Espanolas SA, Ctra Barcelona K.m 5, 46132 Almassera (Valencia), Spain.
DACSA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 24 -
23
Cash generated from operations
2021
2020
£
£
Profit for the year after tax
3,091,359
5,579,771
Adjustments for:
Taxation charged
841,431
1,318,223
Finance costs
200,384
139,972
Investment income
(7,453)
(150)
Amortisation and impairment of intangible assets
65,205
65,205
Depreciation and impairment of tangible fixed assets
163,369
154,202
Movements in working capital:
Increase in stocks
(11,307,219)
(2,451,361)
(Increase)/decrease in debtors
(2,397,729)
441,815
Increase in creditors
16,759,900
1,754,437
Cash generated from operations
7,409,247
7,002,114
24
Analysis of changes in net funds
1 January 2021
Cash flows
31 December 2021
£
£
£
Cash at bank and in hand
1,116,636
(189,328)
927,308
2021-12-312021-01-01falseCCH SoftwareCCH Accounts Production 2022.100Miss Araceli Ciscar GarciaMr Ricardo Ciscar GarciaMr Ricardo Ciscar Martinez055345402021-01-012021-12-3105534540bus:Director12021-01-012021-12-3105534540bus:Director22021-01-012021-12-3105534540bus:Director32021-01-012021-12-3105534540bus:RegisteredOffice2021-01-012021-12-31055345402021-12-31055345402020-01-012020-12-3105534540core:RetainedEarningsAccumulatedLosses2020-01-012020-12-3105534540core:RetainedEarningsAccumulatedLosses2021-01-012021-12-3105534540core:Goodwill2021-12-3105534540core:Goodwill2020-12-31055345402020-12-3105534540core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-3105534540core:ConstructionInProgressAssetsUnderConstruction2021-12-3105534540core:PlantMachinery2021-12-3105534540core:FurnitureFittings2021-12-3105534540core:MotorVehicles2021-12-3105534540core:LandBuildingscore:LeasedAssetsHeldAsLessee2020-12-3105534540core:ConstructionInProgressAssetsUnderConstruction2020-12-3105534540core:PlantMachinery2020-12-3105534540core:FurnitureFittings2020-12-3105534540core:MotorVehicles2020-12-3105534540core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3105534540core:CurrentFinancialInstrumentscore:WithinOneYear2020-12-3105534540core:CurrentFinancialInstruments2021-12-3105534540core:CurrentFinancialInstruments2020-12-3105534540core:ShareCapital2021-12-3105534540core:ShareCapital2020-12-3105534540core:RetainedEarningsAccumulatedLosses2021-12-3105534540core:RetainedEarningsAccumulatedLosses2020-12-3105534540core:ShareCapital2019-12-3105534540core:RetainedEarningsAccumulatedLosses2019-12-31055345402019-12-31055345402020-12-3105534540core:Goodwill2021-01-012021-12-3105534540core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-01-012021-12-3105534540core:LeaseholdImprovementscore:LeasedAssetsHeldAsLessee2021-01-012021-12-3105534540core:PlantMachinery2021-01-012021-12-3105534540core:FurnitureFittings2021-01-012021-12-3105534540core:MotorVehicles2021-01-012021-12-310553454012021-01-012021-12-310553454012020-01-012020-12-3105534540core:UKTax2021-01-012021-12-3105534540core:UKTax2020-01-012020-12-3105534540core:Goodwill2020-12-3105534540core:LandBuildingscore:LeasedAssetsHeldAsLessee2020-12-3105534540core:ConstructionInProgressAssetsUnderConstruction2020-12-3105534540core:PlantMachinery2020-12-3105534540core:FurnitureFittings2020-12-3105534540core:MotorVehicles2020-12-3105534540core:ConstructionInProgressAssetsUnderConstruction2021-01-012021-12-3105534540core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2021-12-3105534540core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2020-12-3105534540core:WithinOneYear2021-12-3105534540core:WithinOneYear2020-12-3105534540core:BetweenTwoFiveYears2021-12-3105534540core:BetweenTwoFiveYears2020-12-3105534540core:MoreThanFiveYears2021-12-3105534540core:MoreThanFiveYears2020-12-3105534540bus:PrivateLimitedCompanyLtd2021-01-012021-12-3105534540bus:FRS1022021-01-012021-12-3105534540bus:Audited2021-01-012021-12-3105534540bus:FullAccounts2021-01-012021-12-31xbrli:purexbrli:sharesiso4217:GBP