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STATEMENT OF CONSENT TO PREPARE ABRIDGED FINANCIAL STATEMENTS
All of the members of Douglas & Grahame (U.K.) Limited have consented to the preparation of the abridged statement of income and retained earnings and the abridged statement of financial position for the year ending 31 May 2023 in accordance with Section 444(2A) of the Companies Act 2006.
COMPANY REGISTRATION NUMBER: 01611331
DOUGLAS & GRAHAME (U.K.) LIMITED
FILLETED ABRIDGED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 May 2023
DOUGLAS & GRAHAME (U.K.) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
YEAR ENDED 31 MAY 2023
The directors are responsible for preparing the directors' report and the abridged financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare abridged financial statements for each financial year. Under that law the directors have elected to prepare the abridged 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 abridged financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these abridged financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the abridged 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 abridged 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.
DOUGLAS & GRAHAME (U.K.) LIMITED
ABRIDGED STATEMENT OF FINANCIAL POSITION
31 May 2023
2023
2022
Note
£
£
£
£
Fixed assets
Tangible assets
5
294
Current assets
Stocks
315,254
280,938
Debtors
6
1,839,877
1,583,775
Cash at bank and in hand
231,148
402,846
--------------
--------------
2,386,279
2,267,559
Creditors: amounts falling due within one year
181,323
124,358
--------------
--------------
Net current assets
2,204,956
2,143,201
--------------
--------------
Total assets less current liabilities
2,204,956
2,143,495
--------------
--------------
Net assets
2,204,956
2,143,495
--------------
--------------
Capital and reserves
Called up share capital
113
113
Share premium account
168,987
168,987
Profit and loss account
2,035,856
1,974,395
--------------
--------------
Shareholders funds
2,204,956
2,143,495
--------------
--------------
These abridged financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the abridged statement of income and retained earnings has not been delivered.
These abridged financial statements were approved by the board of directors and authorised for issue on 9 October 2023 , and are signed on behalf of the board by:
D J M Finlay
Director
Company registration number: 01611331
DOUGLAS & GRAHAME (U.K.) LIMITED
NOTES TO THE ABRIDGED FINANCIAL STATEMENTS
YEAR ENDED 31 MAY 2023
1. General Information
The company is a private company limited by shares, registered in England. The address of the registered office is Shenstone Business Park, Lynn Lane, Shenstone, Lichfield, Staffordshire, WS14 0SB.
2. Statement of Compliance
These abridged financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting Policies
Basis of preparation
The abridged financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The abridged financial statements are prepared in sterling, which is the functional currency of the entity.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Revenue recognition
Turnover represents sales to customers net of discounts allowed and excludes Value Added Tax. Turnover is recognised upon delivery of the goods and services to the customer.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures & Fittings
-
20% straight line
Motor Vehicles
-
25% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are valued at the lower of cost and net realisable value. Cost is determined, using the first in first out method. Cost comprises material and other production costs. Provision is made for slow moving, obsolete and defective stocks.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Employee Numbers
The average number of persons employed by the company during the year amounted to 7 (2022: 7 ).
5. Tangible Assets
£
Cost
At 1 June 2022 and 31 May 2023
84,438
------------
Depreciation
At 1 June 2022
84,144
Charge for the year
294
------------
At 31 May 2023
84,438
------------
Carrying amount
At 31 May 2023
------------
At 31 May 2022
294
------------
6. Debtors
Debtors include amounts of £9,584 (2022: £–) falling due after more than one year.
7. Financial Instruments
The carrying amount for each category of financial instrument is as follows:
2023
2022
£
£
Financial assets measured at fair value through profit or loss
Financial assets measured at fair value through profit or loss
1,074,899
937,863
--------------
------------
Financial liabilities measured at fair value through profit or loss
Financial liabilities measured at fair value through profit or loss
137,246
72,539
------------
------------
8. Operating Leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
42,193
10,556
Later than 1 year and not later than 5 years
52,151
------------
------------
94,344
10,556
------------
------------
9. Contingencies
There is a fixed and floating debenture in place in favour of Ulster Bank Limited dated 31 March 2016.
10. Summary Audit Opinion
The auditor's report dated 9 October 2023 was unqualified .
The senior statutory auditor was R Coton , for and on behalf of Langard Lifford Hall Limited .
11. Related Party Transactions
Included within debtors are amounts owed by the parent company, Douglas & Grahame Limited of £704,496 (2022 : £623,110). During the year the company sold goods to Douglas & Grahame Limited of £217,947 (2022 : £196,450), purchased goods of £4,127,661 (2022 : £3,313,447) and was charged management charges of £188,843 (2022 : £162,095). Included within debtors are amounts owed by Hatfield Apparel Limited of £4,879 (2022 : £4,879), Douglas & Grahame Limited own 100% of this company. During the year the company sold goods to Nottingham Apparel Limited of £8,198 (2022 : £136,316), Douglas & Grahame Limited owned 49% of this company until 2 August 2022, from this date the company was no longer a related party. Included within trade debtors are amounts owed by Nottingham Apparel Limited of £- (2022 : £53,335), during the year debts totalling £22,785 have been written off. During the year the company was charged rent of £33,334 (2022 : £32,805) by RDX Limited, a company under the control of R C Finlay, brother of D J M Finlay .
12. Controlling Party
The ultimate parent undertaking at the balance sheet date was Douglas & Grahame Limited , a company incorporated in Northern Ireland. The financial statements of Douglas & Grahame Limited can be obtained from Companies House.