REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 30 June 2023 |
for |
Duo Operations Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 30 June 2023 |
for |
Duo Operations Limited |
Duo Operations Limited (Registered number: 07505341) |
Contents of the Financial Statements |
for the Year Ended 30 June 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Statement of Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Cash Flow Statement | 15 |
Notes to the Cash Flow Statement | 16 |
Notes to the Financial Statements | 17 |
Duo Operations Limited |
Company Information |
for the Year Ended 30 June 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and |
Statutory Auditor |
67 Westow Street |
London |
SE19 3RW |
Duo Operations Limited (Registered number: 07505341) |
Strategic Report |
for the Year Ended 30 June 2023 |
The directors present their strategic report for the year ended 30 June 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company during the period were civil engineering and construction activities, sale of Quarrying equipment and spares, repair and maintenance of aggregate processing equipment, processing of aggregates in the quarrying sector and rental and sale of plant and machinery |
REVIEW OF BUSINESS |
Turnover during the year turnover increased by 49% to £92,551,323 from £62,006,954. This was driven by key contracts taken on during the year helped to drive this growth, including HS2 which accounted for 65% of total construction revenue. During the year spare parts and equipment to the aggregate processing industry contributed £8,407,833 to revenue. |
Gross margin improved from 11.4% to 15.8%, this was achieved by a greater focus on delivery of our projects and the end of historical legacy projects. The business achieved verhead savings of just under £1m in the period reducing Overheads from 11.67% to 6.8% Therefore generating an operating profit of £8,376,362 which equates to 9.05 % operating margin. |
In the current year, revenue will increase slightly close to £100m and Operating Profit will be remain consistent between 13% to 15%. At the year-end date the company's net assets were £5.35m (2022 - £1.53m). |
The business improvement plans would not be possible without the continued endeavour and commitment of our workforce. Operating in a safe and healthy manner whilst being environmentally responsible remains a key focus of the business. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors of the company meet on a regular basis and review and evaluate the Company's risk appetite. In the view of the directors, the principal risks and uncertainties can be categorised as follows: |
Economic Risk |
Whilst the negative impact of the Covid-19 pandemic of recent years is thankfully lessening, it has been replaced by the economic uncertainty arising from the continual conflict in Ukraine. This is having a major impact on input prices on items such as fuel, steel, concrete and other supplies. The business has procedures and processes in place to ensure proper risk assessments are considered as part of our tendering and project selection stage. The business continues to monitor and review its cost base to ensure all exposure to price increases is mitigated. |
Credit Risk |
The company's principal financial assets are cash and trade debtors. The company has a credit control policy in place which regularly reviews the credit performance of our debtor book. |
Liquidity risk |
The cash / working capital requirements of the business are managed on a regular basis by means of a rolling six-month cash forecast. This model incorporates anticipated receipts from customers and prospective payments to suppliers for the period. Exceptional movements from the previous forecasted cashflow model are reviewed at the quarterly board meetings. A revised cash projection is presented at the same meeting and assumptions underlying the model are discussed. |
Competitive Risk |
The company operates in diverse sectors where there is strong competition. The company seeks to mitigate this risk through the quality of its service offering whilst offering competitive pricing to our customer base. The decision to bid is strictly controlled by Directors through satisfactory completion of tender bid approval process where opportunities are scored against key business performance indicators. |
Duo Operations Limited (Registered number: 07505341) |
Strategic Report |
for the Year Ended 30 June 2023 |
IT Technology Risk |
The company could potentially be exposed to loss of network and or data. The company mitigates this risk by having an in-house dedicated IT team to ensure that ongoing policies and procedures are suitable and effective. Duo's processes and procedures are designed to reduce risk of cyber threats and demonstrates your commitment to cyber security. The system is accredited to the industry recognised standard Cyber Essentials. |
Duo Operations Limited (Registered number: 07505341) |
Strategic Report |
for the Year Ended 30 June 2023 |
SECTION 172(1) STATEMENT |
In accordance with S172 of the Companies Act 2006, the directors are required to act individually and collectively in the way they consider, to be in good faith, and be most likely to promote the success of the company for the benefit of its shareholders. In performing their responsibilities, the directors must have regard for the following matters:- |
- the likely consequences of any decision taken on the long-term sustainability of the company. |
- the interests and wellbeing of the company's employees. |
- the need to foster and grow the company's relationships with suppliers, customers, and other business stakeholders. |
- the impact of the company's operations on the local communities, local environment, and climate. |
- the reputation of the company in maintaining high standards of business conduct, integrity and transparency. |
- the need to act openly, fairly and without fear of discrimination in dealings between employees of the company. |
Decision Making |
The Directors regard these matters as of cultural importance and are embedded as the core values on which all decision making in the company's business strategy is founded. The Directors' strategy is to build and maintain a high-quality business by maintaining and strengthening the balance sheet and ensuring sufficient funding to maintain operational flexibility. |
Employees |
The Directors recognise that the success of the business depends upon attracting the best talent, retaining and reducing staff turnover, motivating employees to deliver and excel in all business operations. In valuing our employees, we must ensure that we always act responsibly, provide a clear career path, adopt fair pay across genders and benefit incentives, adhering to Company policies on equal opportunities, safeguarding and elimination of modern slavery. The periodic employee appraisal program encourages employee feedback and facilitates the opportunity for both employees and managers to set performance goals. |
The Directors have introduced a set of guiding principles that all employees are expected to follow, and through which the Directors must lead by example. |
The Health Safety and wellbeing of our employees are of paramount importance. The Directors have developed and implemented industry recognised health and safety management system, with procedures and processes which are accredited to ISO 45001. Adherence to this system will drive continual improvement in all business activities which will safeguard our employees, subcontractors and business stakeholders. |
Suppliers and Customers |
The Directors believe in developing and maintaining lasting relationships with suppliers and customers. Business operations rely on expertise and resources of key suppliers within the Company Supply Chain. The company is committed to being open and transparent in dealings, striving to improve payment days and adhering to agreed terms. Directors will engage in a respectful, courteous and considerate manner to bolster and improve Supply Chain relationships. |
Business Conduct |
The company aims to conduct all its business relationships with integrity and courtesy, with the expectation that it will be reciprocated. The Directors believe that maintaining a reputation for competency, reliability, quality and honesty in its dealings is a fundamental requirement to deliver the company's strategic objectives. This extends to our dealings with the public, government agencies, local authorities, and other businesses. This commitment is underlined through adopting the Considerate Constructors Scheme on projects which is an industry recognised scheme to impact positive change and lasting legacy of projects in the local community. |
Carbon/Climate Disclosure |
Climate change is of priority concern and strategic importance for Duo, as a company actively engaged in national infrastructure projects, and in the aggregate industry. Our Board of Directors are actively engaged in the setting of policy, procedures and governance of climate change issues, supported by our Sustainability Team of project specific champions and our SHEQ management team. All activities are assessed for impact and mitigation measures identified. |
Duo Operations Limited (Registered number: 07505341) |
Strategic Report |
for the Year Ended 30 June 2023 |
Senior Company Management has primary responsibility for the design and implementation of our response to climate change achieved through setting annual, measurable, achievable objectives and targets. Our climate change strategy is informed and underpinned by active engagement with our stakeholders including investors, local authorities and nongovernment organisations. We regularly review our objectives on climate change with emerging technologies and Regulations. We aim to increase awareness within our Company employees through training and informed information. We strive to utilise and promote within our supply chain companies who lead and are recognised for adopting sustainable and climate green practices. |
Our response to climate change is focused on mitigation adaption, and low-emissions technology. |
We aim to reduce Green House Gasses through: |
- Reduced emissions, achieved by reducing plant idling. |
- Utilisation of electric power sourced through green processes such as wind and solar. |
- Encouraging electric car, car share and cycle to work practices. |
- Recycling within all operations and activities |
- Sourcing locally |
ON BEHALF OF THE BOARD: |
Duo Operations Limited (Registered number: 07505341) |
Report of the Directors |
for the Year Ended 30 June 2023 |
The directors present their report with the financial statements of the company for the year ended 30 June 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of specialist land excavation and remediation, offering clients a full range of services which include the facility for small, medium or large scale earthworks and landscaping. |
The company also deal in the sale of specialist plant and equipment for use in land excavation and earthworks |
DIVIDENDS |
No dividends will be distributed for the year ended 30 June 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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; |
- | 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Duo Operations Limited (Registered number: 07505341) |
Report of the Directors |
for the Year Ended 30 June 2023 |
AUDITORS |
The auditors, Thornton Springer LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Duo Operations Limited |
Opinion |
We have audited the financial statements of Duo Operations Limited (the 'company') for the year ended 30 June 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 June 2023 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. |
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 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Duo Operations Limited |
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 or the Report of the Directors. |
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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 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. |
Report of the Independent Auditors to the Members of |
Duo Operations Limited |
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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. |
Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with relevant laws and regulations. Non-compliance with these laws and regulations might have a material effect on the financial statements. |
We evaluated management's incentives and opportunity for fraudulent manipulation of the financial statement (including the risk of override of controls) and determined that the principal risks were posting of unusual journal entries outside the normal course of business and revenue recognition journal entries to manipulate the company's performance profit measures and other key performance indicators. |
Audit procedures performed included: review of the financial statements and disclosures to underlying supporting documentation, review of compliance with the laws and regulations, enquiries with management, testing of journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
Under ISA 240 (UK) there is a presumed risk that revenue may be misstated due to the improper recognition of revenue. To address this risk, we obtained an understanding of the company's revenue recognition policies and compared these to the accounting standard, performed a walkthrough to confirm our understanding of the processes and controls through which the business initiates, records, processes and reports revenue transactions. We tested a sample of revenue transactions to supporting evidence and tested, on a sample basis, revenue related balances in the balance sheet. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Duo Operations Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants and |
Statutory Auditor |
67 Westow Street |
London |
SE19 3RW |
Duo Operations Limited (Registered number: 07505341) |
Statement of Comprehensive Income |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT/(LOSS) | 6 | ( |
) |
Interest receivable and similar income |
8,437,533 | (155,254 | ) |
Interest payable and similar expenses | 7 | ( |
) | ( |
) |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 8 |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
Duo Operations Limited (Registered number: 07505341) |
Balance Sheet |
30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Duo Operations Limited (Registered number: 07505341) |
Statement of Changes in Equity |
for the Year Ended 30 June 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2021 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 June 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2023 |
Duo Operations Limited (Registered number: 07505341) |
Cash Flow Statement |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) |
Amount withdrawn by directors | (155,218 | ) | (79,133 | ) |
Net cash from financing activities | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
624,563 |
Cash and cash equivalents at end of year | 2 | 883,456 | 38,675 |
Duo Operations Limited (Registered number: 07505341) |
Notes to the Cash Flow Statement |
for the Year Ended 30 June 2023 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.6.23 | 30.6.22 |
£ | £ |
Profit/(loss) before taxation | ( |
) |
Depreciation charges |
Finance costs | 4,612,493 | 826,520 |
Finance income | (61,171 | ) | - |
8,500,573 | (31,816 | ) |
Increase in stocks | ( |
) | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 883,456 | 38,675 |
Year ended 30 June 2022 |
30.6.22 | 1.7.21 |
£ | £ |
Cash and cash equivalents | 38,675 | 624,563 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.7.22 | Cash flow | At 30.6.23 |
£ | £ | £ |
Net cash |
Cash at bank | 38,675 | 844,781 | 883,456 |
38,675 | 883,456 |
Debt |
Finance leases | (1,890,265 | ) | 273,376 | (1,616,889 | ) |
(1,890,265 | ) | 273,376 | (1,616,889 | ) |
Total | (1,851,590 | ) | 1,118,157 | (733,433 | ) |
Duo Operations Limited (Registered number: 07505341) |
Notes to the Financial Statements |
for the Year Ended 30 June 2023 |
1. | STATUTORY INFORMATION |
Duo Operations Limited is a |
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest pound. |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention as modified by the recognition of certain financial assets and liabilities measured at fair value. |
Significant judgements and estimates |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for revenue and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. |
There are no significant judgements (apart from those involving estimates) which have had an effect on the accounts recognised in the financial statements. |
Turnover |
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts. |
The company recognises revenue when: |
The amount of revenue can be reliably measured; |
it is probable that future economic benefits will flow to the entity; |
and specific criteria have been met for each of the company's activities. |
Contract revenue recognition |
Turnover is measured at the fair value of consideration received or receivable, net of discounts, rebates, value added taxes and other sales taxes. Turnover includes revenue earned from the rendering of services. Turnover from the rendering of services is recognised by reference to stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
Tangible fixed assets |
Plant and machinery | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase and other costs incurred in bringing stock to its present location and condition, including any import costs, duties and carriage. |
Duo Operations Limited (Registered number: 07505341) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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. |
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. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Duo Operations Limited (Registered number: 07505341) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has chosen to adopt sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other debtors, cash and bank balances and intra-group balances, are initially recognised at transaction price, 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. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at cost and amortised cost are assessed for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement. |
For financial assets measured at amortised costs, the impairment loss is measured as the difference between the asset's carrying amount and the present value of the estimated cash flow discounted at the asset's original effective interest rate. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other creditors, bank overdraft, intra-group balances and hire purchase contracts, are initially recognised at transaction price, unless the arrangement constitutes a |
financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, deposits held at call with banks, and, if applicable, other short-term highly liquid investments with original maturities of three months or less. |
4. | TURNOVER |
The turnover and profit before taxation from continuing activities is attributable to one principal activity of the company. |
Geographical analysis |
Segmental analysis has not been provided on the basis that in the directors' opinion such information would be seriously prejudicial to the company's interest. |
5. | EMPLOYEES AND DIRECTORS |
30.6.23 | 30.6.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
Duo Operations Limited (Registered number: 07505341) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
30.6.23 | 30.6.22 |
Directors | 3 | 5 |
Administration | 22 | 22 |
Operators | 121 | 154 |
30.6.23 | 30.6.22 |
£ | £ |
Directors' remuneration |
Information regarding the highest paid director is as follows: |
30.6.23 | 30.6.22 |
£ | £ |
Emoluments etc |
No retirement benefits are accruing for any directors. |
6. | OPERATING PROFIT/(LOSS) |
The operating profit (2022 - operating loss) is stated after charging: |
30.6.23 | 30.6.22 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Auditors' remuneration |
Foreign exchange differences |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.23 | 30.6.22 |
£ | £ |
Other interest |
Invoice discounting |
Hire purchase |
8. | TAXATION |
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 30 June 2023 nor for the year ended 30 June 2022. |
Duo Operations Limited (Registered number: 07505341) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
30.6.23 | 30.6.22 |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Utilisation of tax losses | ( |
) |
Total tax charge | - | - |
9. | TANGIBLE FIXED ASSETS |
Plant and | Computer |
machinery | equipment | Totals |
£ | £ | £ |
COST |
At 1 July 2022 |
and 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
Duo Operations Limited (Registered number: 07505341) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 July 2022 |
and 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
10. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertaking |
£ |
COST |
At 1 July 2022 |
and 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: 11-15 Thistle Street, Edinburgh, Scotland, EH2 1DF |
Nature of business: |
% |
Class of shares: | holding |
11. | STOCKS |
30.6.23 | 30.6.22 |
£ | £ |
Stocks |
Duo Operations Limited (Registered number: 07505341) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Amounts recoverable on contract |
Other debtors |
Amounts owed by related entities | 6,949,525 | - |
VAT |
Prepayments and accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Hire purchase contracts (see note 15) |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
VAT | - | 719,448 |
Other creditors |
Directors' current accounts | 300,018 | 455,236 |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Hire purchase contracts (see note 15) |
Other creditors |
Duo Operations Limited (Registered number: 07505341) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
30.6.23 | 30.6.22 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
30.6.23 | 30.6.22 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
30.6.23 | 30.6.22 |
£ | £ |
Hire purchase contracts | 1,616,889 | 1,890,265 |
The bank overdraft of the group is secured via a fixed and floating charge over the assets of the company and the group. |
Hire purchase contracts are secured against the assets to which the loans relate. |
Invoice discounting creditors are secured against the trade debtors they relate to. |
Duo Operations Limited (Registered number: 07505341) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.23 | 30.6.22 |
value: | £ | £ |
Ordinary Shares | 1 | 99 | 99 |
18. | RESERVES |
Retained |
earnings |
£ |
At 1 July 2022 |
Profit for the year |
At 30 June 2023 |
19. | ULTIMATE PARENT COMPANY |
The company is a subsidiary of Duo Group (U.K.) Ltd, a company registered in England and Wales. |
These financial statements have been consolidated in the financial statements of PT McWilliams Group Ltd. The consolidated financial statements can be obtained from 17 Clarendon Road, Belfast, BT1 3BG. |
The ultimate parent company at the year end is PT McWilliams Group Ltd, a company registered in Northern Ireland. |
20. | 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. |
30.6.23 | 30.6.22 |
£ | £ |
Sales |
Purchases | ( |
) | ( |
) |
Amount due from related parties |
Amount due to related parties | ( |
) | ( |
) |
21. | ULTIMATE CONTROLLING PARTY |
The controlling party is M F McWilliams. |