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REGISTERED NUMBER: 03665031 (England and Wales)















GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD

1 APRIL 2022 TO 31 DECEMBER 2022

FOR

DISTAG HOLDINGS LTD

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022










Page

Company Information 1

Group Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 4

Consolidated Income Statement 8

Consolidated Other Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16


DISTAG HOLDINGS LTD

COMPANY INFORMATION
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022







DIRECTOR: J Deacon





SECRETARY: S Deacon





REGISTERED OFFICE: Unit 24 Farthing Road
Industrial Estate
Sproughton
Ipswich
Suffolk
IP1 5AP





REGISTERED NUMBER: 03665031 (England and Wales)





AUDITORS: Clemence Hoar Cummings
Chartered Accountants and Statutory Auditor
Riverside House
1-5 Como Street
Romford
Essex
RM7 7DN

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

GROUP STRATEGIC REPORT
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022


The Distag QCS Group is primarily an Importer and Distributor of engineering and associated components for Agricultural and Industrial machinery manufacturers in Ireland and UK. They also sell into the aftermarket through a network of authorised distributors. The group consists of three companies. Distag QCS Ltd is based in Tullow Co Carlow and is the parent company. Distag Holdings Ltd and Distag QCS (UK) Ltd are based in Ipswich UK, with a second business unit in Dungannon, Northern Ireland.

REVIEW OF BUSINESS
In order to align with the financial year end dates of the parent company, we have completed a 9 month set of accounts for Distag QCS (UK) Ltd to give a FY end of 31/12/2022. The business has performed reasonably well over the past financial period, showing sales growth of over 10% YOY with profitability also well up on previous years. This performance has left the business in a much stronger position to face what will undoubtedly be more difficult years ahead.

PRINCIPAL RISKS AND UNCERTAINTIES
The business has throve over the past few year's despite the different crisis in trading around the world, and as always there will be significant challenges ahead for both our business and that of our customers, such as
1. War in Ukraine causing uncertainty in the market place
2. Substantial shortage of skilled labour, especially for welders and skilled engineers.
This issue is likely to remain a serious issue, with the likely imposition of restrictions on foreign workers allowed to enter UK. This could have some effect on our business, if our OEM customers cannot find enough workers to get their machines produced.

STRATEGY
We have set out the strategy and interim objectives to guide us through the next 3 years, and allow us take advantage of the opportunities, and continue to grow the business in line with our vision of reaching £23 million sales from Distag QCS (UK) by 2025

ON BEHALF OF THE BOARD:





J Deacon - Director


11 September 2023

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

REPORT OF THE DIRECTOR
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022


The director presents his report with the financial statements of the company and the group for the period 1 April 2022 to 31 December 2022.

DIVIDENDS
No dividends will be distributed for the period ended 31 December 2022.

DIRECTOR
J Deacon held office during the whole of the period from 1 April 2022 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he 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 group's auditors are aware of that information.

AUDITORS
The auditors, Clemence Hoar Cummings, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





J Deacon - Director


11 September 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DISTAG HOLDINGS LTD


Opinion
We have audited the financial statements of Distag Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2022 and of the group's profit for the period then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DISTAG HOLDINGS LTD


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DISTAG HOLDINGS LTD


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:

We have designed our work to ensure that laws and regulations have been adhered to, and the transactions undertaken by the company are properly reflected in the financial statements.

We have obtained a detailed understanding of the Company's internal control systems and we have used the knowledge gained to identify any areas of risk of mis-statement or fraud. We have then designed our audit tests in each area to identify whether in respect of the transactions we have selected for testing the relevant controls have operated as expected.

We plan our work specifically to identify any areas where there is a susceptibility to mis-statement or fraud such as understatement of income and then design tests to mitigate this risk. Our work includes a review of shipping terms for both sales and purchases to ensure that the cut-off for both sales and cost of sales is recorded correctly

We have evaluated the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.

We have concluded on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We have then designed our audit tests in each area to identify whether in respect of the transactions we have selected for testing the relevant controls have operated as expected.

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DISTAG HOLDINGS LTD


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.




Lee Blunden FCCA CTA (Senior Statutory Auditor)
for and on behalf of Clemence Hoar Cummings
Chartered Accountants and Statutory Auditor
Riverside House
1-5 Como Street
Romford
Essex
RM7 7DN

11 September 2023

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

CONSOLIDATED
INCOME STATEMENT
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022

Period Year Ended
1.4.22 to 31.12.22 31.3.22
Notes £    £    £    £   

TURNOVER 11,446,575 14,526,717

Cost of sales 7,561,532 9,609,660
GROSS PROFIT 3,885,043 4,917,057

Distribution costs 760,492 916,749
Administrative expenses 2,052,910 2,668,070
2,813,402 3,584,819
1,071,641 1,332,238

Other operating income 3,000 57,634
OPERATING PROFIT 4 1,074,641 1,389,872


Interest payable and similar expenses 5 97,250 59,779
PROFIT BEFORE TAXATION 977,391 1,330,093

Tax on profit 6 199,752 90,267
PROFIT FOR THE FINANCIAL
PERIOD

777,639

1,239,826
Profit attributable to:
Owners of the parent 777,639 1,239,826

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

CONSOLIDATED
OTHER COMPREHENSIVE INCOME
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022

Period
1.4.22
to Year Ended
31.12.22 31.3.22
Notes £    £   

PROFIT FOR THE PERIOD 777,639 1,239,826


OTHER COMPREHENSIVE INCOME
- (536,000 )
Income tax relating to other
comprehensive income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE PERIOD, NET OF INCOME
TAX


-


(536,000


)
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD

777,639

703,826

Total comprehensive income attributable to:
Owners of the parent 777,639 703,826

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

CONSOLIDATED BALANCE SHEET
31 DECEMBER 2022

2022 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 203,976 2,712,110
Investments 9 - -
Investment property 10 2,813,675 -
3,017,651 2,712,110

CURRENT ASSETS
Stocks 11 5,429,665 4,266,766
Debtors 12 2,506,013 3,132,244
Cash at bank and in hand 143,087 128,807
8,078,765 7,527,817
CREDITORS
Amounts falling due within one year 13 5,585,581 5,225,124
NET CURRENT ASSETS 2,493,184 2,302,693
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,510,835

5,014,803

CREDITORS
Amounts falling due after more than
one year

14

938,867

1,220,474
NET ASSETS 4,571,968 3,794,329

CAPITAL AND RESERVES
Called up share capital 17 230,000 230,000
Share premium 18 568,563 568,563
Retained earnings 18 3,773,405 2,995,766
SHAREHOLDERS' FUNDS 4,571,968 3,794,329

The financial statements were approved by the director and authorised for issue on 11 September 2023 and were signed by:





J Deacon - Director


DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

COMPANY BALANCE SHEET
31 DECEMBER 2022

2022 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 - 2,494,704
Investments 9 38,555 38,555
Investment property 10 2,813,675 -
2,852,230 2,533,259

CURRENT ASSETS
Debtors 12 2,269 178,485
Cash at bank 8,180 7,299
10,449 185,784
CREDITORS
Amounts falling due within one year 13 1,988,320 1,939,992
NET CURRENT LIABILITIES (1,977,871 ) (1,754,208 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

874,359

779,051

CREDITORS
Amounts falling due after more than
one year

14

245,058

300,306
NET ASSETS 629,301 478,745

CAPITAL AND RESERVES
Called up share capital 17 230,000 230,000
Share premium 18 47,820 47,820
Retained earnings 18 351,481 200,925
SHAREHOLDERS' FUNDS 629,301 478,745

Company's profit for the financial year 150,556 21,093

The financial statements were approved by the director and authorised for issue on 11 September 2023 and were signed by:





J Deacon - Director


DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   

Balance at 1 April 2021 250,000 2,291,940 568,563 3,110,503

Changes in equity
Issue of share capital (20,000 ) - - (20,000 )
Total comprehensive income - 703,826 - 703,826
Balance at 31 March 2022 230,000 2,995,766 568,563 3,794,329

Changes in equity
Total comprehensive income - 777,639 - 777,639
Balance at 31 December 2022 230,000 3,773,405 568,563 4,571,968

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   

Balance at 1 April 2021 250,000 715,832 47,820 1,013,652

Changes in equity
Issue of share capital (20,000 ) - - (20,000 )
Total comprehensive income - (514,907 ) - (514,907 )
Balance at 31 March 2022 230,000 200,925 47,820 478,745

Changes in equity
Total comprehensive income - 150,556 - 150,556
Balance at 31 December 2022 230,000 351,481 47,820 629,301

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022

Period
1.4.22
to Year Ended
31.12.22 31.3.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 856,945 (437,071 )
Interest paid (97,250 ) (59,779 )
Tax paid (2,280 ) (7,154 )
Net cash from operating activities 757,415 (504,004 )

Cash flows from investing activities
Purchase of tangible fixed assets (64,091 ) (1,029,606 )
Purchase of investment property (318,971 ) -
Sale of tangible fixed assets 10,085 2,500
Net cash from investing activities (372,977 ) (1,027,106 )

Cash flows from financing activities
New loans in year - 631,250
Loan repayments in year (238,530 ) (176,886 )
Capital repayments in year (39,878 ) (19,888 )
Amount introduced by directors 30,000 306,000
Amount withdrawn by directors (64,800 ) -
Share issue - (20,000 )
Share buyback - (536,000 )
Sales financing account (72,030 ) 689,009
Distag QCS 26,241 573,024
Quality component solutions - 259,387
Other loans (11,161 ) (200,000 )
Net cash from financing activities (370,158 ) 1,505,896

Increase/(decrease) in cash and cash equivalents 14,280 (25,214 )
Cash and cash equivalents at
beginning of period

2

128,807

154,021

Cash and cash equivalents at end
of period

2

143,087

128,807

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
Period
1.4.22
to Year Ended
31.12.22 31.3.22
£    £   
Profit before taxation 977,391 1,330,093
Depreciation charges 70,321 79,289
Loss on disposal of fixed assets - 3,515
Government grants - (270 )
Finance costs 97,250 59,779
1,144,962 1,472,406
Increase in stocks (1,162,899 ) (1,933,636 )
Decrease/(increase) in trade and other debtors 588,044 (874,285 )
Increase in trade and other creditors 286,838 898,444
Cash generated from operations 856,945 (437,071 )

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:

Period ended 31 December 2022
31.12.22 1.4.22
£    £   
Cash and cash equivalents 143,087 128,807
Year ended 31 March 2022
31.3.22 1.4.21
£    £   
Cash and cash equivalents 128,807 154,021


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.4.22 Cash flow At 31.12.22
£    £    £   
Net cash
Cash at bank and in hand 128,807 14,280 143,087
128,807 14,280 143,087
Debt
Finance leases (104,966 ) 39,878 (65,088 )
Debts falling due within 1 year (331,154 ) 6,546 (324,608 )
Debts falling due after 1 year (778,799 ) 231,985 (546,814 )
(1,214,919 ) 278,409 (936,510 )
Total (1,086,112 ) 292,689 (793,423 )

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022


1. STATUTORY INFORMATION

Distag Holdings Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - in accordance with the property
Improvements to property - Straight line over 5 years
Plant and machinery - 10% on cost and Straight line over 5 years
Fixtures and fittings - 15% on cost and Straight line over 5 years
Motor vehicles - 25% on cost and 25% on reducing balance
Computer equipment - 33% on cost

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation
Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022


2. ACCOUNTING POLICIES - continued
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 period 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.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS
Period
1.4.22
to Year Ended
31.12.22 31.3.22
£    £   
Wages and salaries 1,239,823 1,569,079
Social security costs 121,137 145,129
Other pension costs 32,741 42,670
1,393,701 1,756,878

The average number of employees during the period was as follows:
Period
1.4.22
to Year Ended
31.12.22 31.3.22

Staff employed 57 54

The average number of employees by undertakings that were proportionately consolidated during the period was NIL (2022 - NIL).

Period
1.4.22
to Year Ended
31.12.22 31.3.22
£    £   
Directors' remuneration - 69,100

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022


4. OPERATING PROFIT

The operating profit is stated after charging:

Period
1.4.22
to Year Ended
31.12.22 31.3.22
£    £   
Depreciation - owned assets 34,721 27,265
Depreciation - assets on hire purchase contracts 32,715 52,024
Loss on disposal of fixed assets - 3,515
Auditors remuneration 9,500 6,400
Auditors' remuneration for non audit work 5,500 3,000
Foreign exchange differences 27,179 51,301

5. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
1.4.22
to Year Ended
31.12.22 31.3.22
£    £   
Bank interest 97,250 59,779

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the period was as follows:
Period
1.4.22
to Year Ended
31.12.22 31.3.22
£    £   
Current tax:
UK corporation tax 128,134 2,290

Deferred taxation 71,618 87,977
Tax on profit 199,752 90,267

Tax effects relating to effects of other comprehensive income

2022
Gross Tax Net
£    £    £   
Share buyback (536,000 ) - (536,000 )

7. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022


8. TANGIBLE FIXED ASSETS

Group
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST
At 1 April 2022 2,494,704 14,296 516,589
Additions - - 35,146
Disposals - - -
Reclassification/transfer (2,494,704 ) - -
At 31 December 2022 - 14,296 551,735
DEPRECIATION
At 1 April 2022 - 13,155 375,788
Charge for period - 495 45,992
Eliminated on disposal - - -
At 31 December 2022 - 13,650 421,780
NET BOOK VALUE
At 31 December 2022 - 646 129,955
At 31 March 2022 2,494,704 1,141 140,801

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 April 2022 99,164 59,579 118,529 3,302,861
Additions 8,044 15,000 5,901 64,091
Disposals - (13,500 ) - (13,500 )
Reclassification/transfer - - - (2,494,704 )
At 31 December 2022 107,208 61,079 124,430 858,748
DEPRECIATION
At 1 April 2022 54,734 44,967 102,107 590,751
Charge for period 10,628 3,057 7,264 67,436
Eliminated on disposal - (3,415 ) - (3,415 )
At 31 December 2022 65,362 44,609 109,371 654,772
NET BOOK VALUE
At 31 December 2022 41,846 16,470 15,059 203,976
At 31 March 2022 44,430 14,612 16,422 2,712,110

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022


8. TANGIBLE FIXED ASSETS - continued

Group

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
machinery
£   
COST
At 1 April 2022 242,362
Transfer to ownership (24,350 )
At 31 December 2022 218,012
DEPRECIATION
At 1 April 2022 133,386
Charge for period 32,715
Transfer to ownership (17,300 )
At 31 December 2022 148,801
NET BOOK VALUE
At 31 December 2022 69,211
At 31 March 2022 108,976

Company
Freehold
property
£   
COST
At 1 April 2022 2,494,704
Reclassification/transfer (2,494,704 )
At 31 December 2022 -
NET BOOK VALUE
At 31 December 2022 -
At 31 March 2022 2,494,704

9. FIXED ASSET INVESTMENTS

Company
Unlisted
investments
£   
COST
At 1 April 2022
and 31 December 2022 38,555
NET BOOK VALUE
At 31 December 2022 38,555
At 31 March 2022 38,555


DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022


10. INVESTMENT PROPERTY

Group
Total
£   
FAIR VALUE
Additions 318,971
Reclassification/transfer 2,494,704
At 31 December 2022 2,813,675
NET BOOK VALUE
At 31 December 2022 2,813,675

Company
Total
£   
FAIR VALUE
Additions 318,971
Reclassification/transfer 2,494,704
At 31 December 2022 2,813,675
NET BOOK VALUE
At 31 December 2022 2,813,675

11. STOCKS

Group
2022 2022
£    £   
Stocks 4,982,027 3,905,966
Work-in-progress 447,638 360,800
5,429,665 4,266,766

12. DEBTORS

Group Company
2022 2022 2022 2022
£    £    £    £   
Amounts falling due within one year:
Trade debtors 2,497,006 3,064,092 - -
VAT - 35,823 2,269 178,485
Prepayments 9,007 5,833 - -
2,506,013 3,105,748 2,269 178,485

Amounts falling due after more than one year:
Other debtors - 26,496 - -

Aggregate amounts 2,506,013 3,132,244 2,269 178,485

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022


13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2022 2022 2022 2022
£    £    £    £   
Bank loans and overdrafts (see note 15)
324,608

331,154

77,386

75,320
Hire purchase contracts (see note 16) 47,429 52,955 - -
Sale financing 1,223,050 1,295,080 - -
Trade creditors 1,807,968 1,784,931 3,000 6,600
Amounts owed to group undertakings 711,700 711,700 1,872,884 1,853,790
Amounts owed to participating interests 406,338 380,097 - -
Taxation 128,135 2,281 29,949 2,281
Social security and other taxes 36,709 38,074 - -
VAT 216,899 - - -
Other creditors 225,024 210,009 - -
Deferred tax liability 45,122 - - -
Directors' current accounts 271,200 306,000 - -
Accrued expenses 141,399 112,843 5,101 2,001
5,585,581 5,225,124 1,988,320 1,939,992

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
2022 2022 2022 2022
£    £    £    £   
Bank loans (see note 15) 546,814 778,799 45,058 100,306
Hire purchase contracts (see note 16) 17,659 52,011 - -
Other creditors 374,394 389,664 200,000 200,000
938,867 1,220,474 245,058 300,306

15. LOANS

An analysis of the maturity of loans is given below:

Group Company
2022 2022 2022 2022
£    £    £    £   
Amounts falling due within one year or on demand:
Bank loans - less than 1 yr 324,608 331,154 77,386 75,320
Amounts falling due between one and two years:
Bank loans - 1-2 years 227,184 312,958 45,058 75,320
Amounts falling due between two and five years:
Bank loans - 2-5 years 319,630 465,841 - 24,986

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022


16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2022 2022
£    £   
Net obligations repayable:
Within one year 47,429 52,955
Between one and five years 17,659 52,011
65,088 104,966

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2022 2022
value: £    £   
230,000 Ordinary 1 230,000 230,000

18. RESERVES

Group
Retained Share
earnings premium Totals
£    £    £   

At 1 April 2022 2,995,766 568,563 3,564,329
Profit for the period 777,639 777,639
At 31 December 2022 3,773,405 568,563 4,341,968

Company
Retained Share
earnings premium Totals
£    £    £   

At 1 April 2022 200,925 47,820 248,745
Profit for the period 150,556 150,556
At 31 December 2022 351,481 47,820 399,301


DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE PERIOD 1 APRIL 2022 TO 31 DECEMBER 2022


19. RELATED PARTY DISCLOSURES

The following sales to related parties took place during the period ended 31st December 2022.



Company Name

During
period to


During
year to
March




As at




As at

Decembe
r 2022


2022


31.12.22


31.03.22
£ £ £ £
Distag QCS Limited 444,381 678,982 2,183 56,160


The following purchases from related parties took place during the period ended 31st December 2022.


Company Name
During
period to

During year
to March


As at


As at

December
2022


2022


31.12.22


31.03.22
£ £ £ £
Distag QCS Limited 1,152,806 1,592,845 1,220,676 1,160,987
Quality Component Solutions
UK Limited

Nil


Nil


259,387


259,387

Distag Holdings Limited is the parent company of Distag QCS (UK) Limited and Distag QCS Limited is the ultimate controlling company. Quality Component Solutions (UK) Limited is a dormant company owned by Distag QCS (UK) Limited.

During the period £34,500 (year to March 2022: £49,708) was paid to the directors for consultancy services.

During the period £12,264 (year to March 2022: £15,000) was paid, in respect of rent to a partnership which is jointly controlled by the director.

At the period end, the company owed £174,394 (March 2022: £178,503) to a shareholder of the parent company, Distag QCS Limited. This figure is included in note 11.