REGISTERED NUMBER: 06293077 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31 December 2022 |
for |
Dunraven Holdings Limited |
REGISTERED NUMBER: 06293077 (England and Wales) |
Group Strategic Report, Report of the Director and |
Consolidated Financial Statements for the Year Ended 31 December 2022 |
for |
Dunraven Holdings Limited |
Dunraven Holdings Limited (Registered number: 06293077) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Director's Responsibilities Statement | 5 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
Dunraven Holdings Limited |
Company Information |
for the Year Ended 31 December 2022 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
3 Newmill Court |
Swansea Enterprise Park |
Llansamlet |
Swansea |
SA7 9FG |
Dunraven Holdings Limited (Registered number: 06293077) |
Group Strategic Report |
for the Year Ended 31 December 2022 |
The director presents his strategic report of the company and the group for the year ended 31 December 2022. |
REVIEW OF BUSINESS |
The results for the year, which include all relevant key performance indicators, are shown in the annexed financial statements. |
The principal activity of the company in the year was that of a holding company. The principal activity of the company's trading subsidiaries, in the year under review, was that of the manufacture and supply of windows, doors and conservatories and the operation of a builders merchants. |
The strategy of the business is to increase its market share by focussing on strong customer service. |
The group enjoys a number of competitive advantages including strong brand recognition in its heartland trading region, where it consistently achieves a strong market share; a well established reputation for price competitiveness; a knowledgeable and enthusiastic workforce and a strong customer focus throughout the business. |
Whilst trading conditions are expected to remain competitive throughout FY'23, the board consider the group to be well positioned to manage and take on this challenge. |
Key performance indicators |
The group's key performance indicators (KPI's) are summarised below: |
Year ended | Year ended |
31 December 2022 (£ | ) | 31 December 2021 (£ | ) |
Turnover | 45,908k | 43,403k |
Gross profit | 8,165k | 7,332k |
Net current assets | 4,081k | 3,101k |
Net assets | 8,951k | 7,479k |
The management of the business and the execution of the group's strategy are subject to a number of risks. The key business risks affecting the group are considered to relate to competitor activity and employee retention and are summarised as follows: |
Risk | Potential impact | Mitigation |
Competition | The market in which the group operates is subject to intense competition. The impact of such competition could impact on margins. |
The group continues to invest heavily in its range of products providing customers with a wide choice of windows, doors and conservatories. This, coupled with a strong focus on customer service, results in a high level of repeat business. |
People | The business could be impacted by the loss of key individuals. |
The business looks to increase staff engagement through (1) opportunities to give feedback and to influence future business developments and (2) training and progression opportunities. |
Dunraven Holdings Limited (Registered number: 06293077) |
Group Strategic Report |
for the Year Ended 31 December 2022 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Price risk |
The group is not exposed to commodity price risk as a result of its operations. |
Credit risk |
The group's financial assets are cash and trade debtors. The group's credit risk is primarily attributable to its trade debtors which are presented in the balance sheet net of allowances for doubtful debts. The group has implemented policies that require appropriate credit checks on potential customers before sales are made. |
Liquidity risk |
The group actively maintains a mixture of long term and short-term debt finance that is designed to ensure that the group has sufficient funds for operations and planned expansions. |
Interest rate cash flow risk |
The group has both interest bearing assets and interest-bearing liabilities. Interest bearing assets comprise only cash balances, which earn interest at floating rates. The group has a policy of maintaining debt at floating rates. The directors will revisit the appropriateness of this policy should the company's operation change in size or nature. |
ON BEHALF OF THE BOARD: |
Dunraven Holdings Limited (Registered number: 06293077) |
Report of the Director |
for the Year Ended 31 December 2022 |
The director presents his report with the financial statements of the company and the group for the year ended 31 December 2022. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2022. |
DIRECTOR |
DISABLED PERSONS |
The group's policy is to give full and fair consideration to applications for employment made by disabled persons, having regard for their particular aptitudes and abilities. |
Disabled employees receive appropriate training to promote their career development within the company. Employees who become disabled are retained in their existing posts where possible, or retained for suitable alternative posts. |
ENGAGEMENT WITH EMPLOYEES |
The group's policy is to consult and discuss with employees matters likely to affect employees' interests. |
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance. |
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 |
MHA were appointed as auditors during the year. |
The auditors, MHA, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Dunraven Holdings Limited (Registered number: 06293077) |
Director's Responsibilities Statement |
for the Year Ended 31 December 2022 |
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. |
Report of the Independent Auditors to the Members of |
Dunraven Holdings Limited |
Opinion |
We have audited the financial statements of Dunraven Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year 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 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 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, the Report of the Director and the Director's Responsibilities Statement, 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. |
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 Director's Responsibilities Statement set out on page five, 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 |
Dunraven Holdings 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: |
Detecting irregularities |
The objectives of our audit in relation to fraud are as follows: |
- to identify and assess the risks of material misstatement of the financial statements due to fraud; |
- to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; |
- and to respond appropriately to fraud or suspected fraud identified during the audit. |
However, the primary responsibility for the prevention and detection of fraud rests with the directors. |
Auditor's approach to assessing the risks of material mis-statement due to irregularities, including fraud |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK. |
We assessed the risks of material misstatement in respect of fraud and considered the extent to which non-compliance with laws and regulations might have a material effect on the financial statements. |
Audit procedures designed to respond to the risks of non-compliance with laws and regulations |
Based on the results of our risk assessment, we designed our audit procedures to identify non-compliance with such laws and regulations identified above. We made enquiries of senior management of the group of companies to understand how the company is complying with those frameworks. Audit procedures performed by the engagement team also included a review of the financial statements disclosures to underlying supporting documentation. |
Audit procedures designed to respond to the risks of fraud |
We assessed the susceptibility of the group and company's financial statements to material misstatement, including how fraud might occur, by means of developing an understanding the company's controls and discussing with management the perceived risks and garnering where they considered there was susceptibility to fraud. |
Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud. |
As well as adopting an attitude of professional scepticism, we have obtained information for use in identifying the risk of fraud when performing risk assessment procedures and performed the following procedures in light of the risk of fraud: |
- Discussion amongst the group engagement team regarding the susceptibility of the client to fraud; |
- Consideration of the risk of fraud when documenting and testing internal controls; |
- Enquiring of management how they assess the risk of fraud; identify and respond to the risks of fraud; |
- Enquiring of management and directors whether they have any knowledge of actual or suspected fraud; |
- Remaining alert to inconsistent or contradictory information and obtaining evidence to support information provided. |
Management override of controls |
We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries into our audit approach. The audit engagement team performed journal entry testing using a risk-based approach and evaluated whether there was evidence of bias, with a focus on any journals indicating large or unusual transactions, non-routine journals and journals processed for before and after the accounting reference date. |
Owing to the inherent limitations of an audit there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have performed our audit in accordance with auditing standards. In addition, as with any audit, there remains a risk of non-detection of irregularities as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
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 |
Dunraven Holdings 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 |
Swansea |
Dunraven Holdings Limited (Registered number: 06293077) |
Consolidated Income Statement |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
as restated |
Notes | £ | £ | £ | £ |
TURNOVER | 4 | 45,908,100 | 43,403,310 |
Cost of sales | 37,742,572 | 36,071,724 |
GROSS PROFIT | 8,165,528 | 7,331,586 |
Distribution costs | 751,310 | 782,335 |
Administrative expenses | 6,140,616 | 5,999,874 |
6,891,926 | 6,782,209 |
1,273,602 | 549,377 |
Other operating income | - | 272,731 |
OPERATING PROFIT | 6 | 1,273,602 | 822,108 |
Interest receivable and similar income | - | 586 |
1,273,602 | 822,694 |
Interest payable and similar expenses | 7 | 96,458 | 35,396 |
PROFIT BEFORE TAXATION | 1,177,144 | 787,298 |
Tax on profit | 8 | (295,434 | ) | 1,209,807 |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR | ( |
) |
Profit/(loss) attributable to: |
Owners of the parent | 1,489,328 | (517,054 | ) |
Non-controlling interests | (16,750 | ) | 94,545 |
1,472,578 | (422,509 | ) |
Dunraven Holdings Limited (Registered number: 06293077) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
as restated |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | 1,472,578 | (422,509 | ) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,472,578 |
(422,509 |
) |
Total comprehensive income attributable to: |
Owners of the parent | 1,489,328 | (517,054 | ) |
Non-controlling interests | (16,750 | ) | 94,545 |
1,472,578 | (422,509 | ) |
Dunraven Holdings Limited (Registered number: 06293077) |
Consolidated Balance Sheet |
31 December 2022 |
31.12.22 | 31.12.21 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | - | - |
Tangible assets | 12 | 6,201,995 | 6,411,059 |
Investments | 13 | - | - |
6,201,995 | 6,411,059 |
CURRENT ASSETS |
Stocks | 14 | 4,559,542 | 3,035,061 |
Debtors | 15 | 9,800,132 | 9,294,602 |
Cash at bank | 776,039 | 788,982 |
15,135,713 | 13,118,645 |
CREDITORS |
Amounts falling due within one year | 16 | 11,054,552 | 10,017,687 |
NET CURRENT ASSETS | 4,081,161 | 3,100,958 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 10,283,156 | 9,512,017 |
CREDITORS |
Amounts falling due after more than one year | 17 | (1,143,360 | ) | (1,549,365 | ) |
PROVISIONS FOR LIABILITIES | 20 | (188,527 | ) | (483,961 | ) |
NET ASSETS | 8,951,269 | 7,478,691 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 200 | 200 |
Retained earnings | 22 | 8,243,143 | 6,753,815 |
SHAREHOLDERS' FUNDS | 8,243,343 | 6,754,015 |
NON-CONTROLLING INTERESTS | 23 | 707,926 | 724,676 |
TOTAL EQUITY | 8,951,269 | 7,478,691 |
The financial statements were approved by the director and authorised for issue on 31 October 2023 and were signed by: |
D Brace - Director |
Dunraven Holdings Limited (Registered number: 06293077) |
Company Balance Sheet |
31 December 2022 |
31.12.22 | 31.12.21 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's (loss)/profit for the financial year | (89,280 | ) | 545,603 |
The financial statements were approved by the director and authorised for issue on |
Dunraven Holdings Limited (Registered number: 06293077) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2022 |
Called up |
share | Retained | Non-controlling | Total |
capital | earnings | Total | interests | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2021 | 200 | 7,270,869 | 7,271,069 | 630,131 | 7,901,200 |
Changes in equity |
Total comprehensive income | - | (517,054 | ) | (517,054 | ) | 94,545 | (422,509 | ) |
Balance at 31 December 2021 | 200 | 6,753,815 | 6,754,015 | 724,676 | 7,478,691 |
Changes in equity |
Total comprehensive income | - | 1,489,328 | 1,489,328 | (16,750 | ) | 1,472,578 |
Balance at 31 December 2022 | 200 | 8,243,143 | 8,243,343 | 707,926 | 8,951,269 |
Dunraven Holdings Limited (Registered number: 06293077) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2021 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2021 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 December 2022 |
Dunraven Holdings Limited (Registered number: 06293077) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2022 |
31.12.22 | 31.12.21 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 478,423 | (793,146 | ) |
Interest paid | (89,280 | ) | (33,135 | ) |
Interest element of hire purchase payments paid | (7,178 | ) | (2,261 | ) |
Tax paid | (186,829 | ) | - |
Net cash from operating activities | 195,136 | (828,542 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (180,500 | ) | (352,242 | ) |
Sale of tangible fixed assets | 55,979 | 27,495 |
Interest received | - | 586 |
Net cash from investing activities | (124,521 | ) | (324,161 | ) |
Cash flows from financing activities |
Loan repayments in year | (400,137 | ) | (400,000 | ) |
Capital repayments in year | (16,006 | ) | (47,745 | ) |
Net cash from financing activities | (416,143 | ) | (447,745 | ) |
Decrease in cash and cash equivalents | (345,528 | ) | (1,600,448 | ) |
Cash and cash equivalents at beginning of year | 2 | (1,166,847 | ) | 433,601 |
Cash and cash equivalents at end of year | 2 | (1,512,375 | ) | (1,166,847 | ) |
Dunraven Holdings Limited (Registered number: 06293077) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 December 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Profit before taxation | 1,177,144 | 787,298 |
Depreciation charges | 351,011 | 441,634 |
Loss on disposal of fixed assets | 14,074 | 9,939 |
Finance costs | 96,458 | 35,396 |
Finance income | - | (586 | ) |
1,638,687 | 1,273,681 |
Increase in stocks | (1,524,481 | ) | (372,710 | ) |
Increase in trade and other debtors | (505,530 | ) | (2,029,761 | ) |
Increase in trade and other creditors | 869,747 | 335,644 |
Cash generated from operations | 478,423 | (793,146 | ) |
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 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 776,039 | 788,982 |
Bank overdrafts | (2,288,414 | ) | (1,955,829 | ) |
(1,512,375 | ) | (1,166,847 | ) |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
as restated |
£ | £ |
Cash and cash equivalents | 788,982 | 2,735,319 |
Bank overdrafts | (1,955,829 | ) | (2,301,718 | ) |
(1,166,847 | ) | 433,601 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.1.22 | Cash flow | changes | At 31.12.22 |
£ | £ | £ | £ |
Net cash |
Cash at bank | 788,982 | (12,943 | ) | 776,039 |
Bank overdrafts | (1,955,829 | ) | (332,585 | ) | (2,288,414 | ) |
(1,166,847 | ) | (345,528 | ) | (1,512,375 | ) |
Debt |
Finance leases | (194,876 | ) | 16,006 | (31,500 | ) | (210,370 | ) |
Debts falling due |
within 1 year | (400,000 | ) | - | - | (400,000 | ) |
Debts falling due |
after 1 year | (1,433,333 | ) | 400,137 | - | (1,033,196 | ) |
(2,028,209 | ) | 416,143 | (31,500 | ) | (1,643,566 | ) |
Total | (3,195,056 | ) | 70,615 | (31,500 | ) | (3,155,941 | ) |
Dunraven Holdings Limited (Registered number: 06293077) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2022 |
1. | STATUTORY INFORMATION |
Dunraven Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The group and individual financial statements of the company have been prepared in accordance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
The principal accounting policies applied in the preparation of these consolidated and separate financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. |
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise judgement in the process of applying the Group and Company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements have been disclosed. |
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound. |
Basis of consolidation |
The consolidated financial statement incorporate the financial statements of Dunraven Holdings Limited and all of its subsidiary undertakings made up to the same accounting date. |
All intra-Group balances, transactions, income and expenses are eliminated in full on consolidation. All subsidiary undertakings have the same year end as the Company and apply common accounting policies in the preparation of their financial statements. |
Any subsidiary undertakings sold or acquired during the year are included up to, or from, the dates of change of control. |
Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group's equity. Minority interests consist of the amount of those interests at the date of the original business combination and the minority's share of changes in equity since the date of the combination. |
Related party exemption |
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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Goodwill (representing the excess of the fair value of the consideration given over the fair value of the separable net assets acquired) arising on consolidation in respect of acquisitions is capitalised and amortised on a straight line basis over its estimated useful economic life. |
The estimated useful economic life is calculated having regard to the period over which the Group expects to derive economic benefit from the assets. The directors consider that the estimated useful economic life on the purchased goodwill is 10 years. |
Tangible fixed assets |
Freehold property | - |
Long leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the income statement. |
Government grants |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. |
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability. |
Revenue grants are credited to the profit and loss account over the period to which they relate. |
Dunraven Holdings Limited (Registered number: 06293077) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
The group has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument. |
Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs, unless the arrangement constitutes a financing transaction, where the transaction is measured at 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. |
Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
Impairment of financial assets |
At the end of each reporting period financial assets measured at amortised costs are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the profit or loss. |
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the profit or loss. |
Derecognition of financial assets |
Financial assets are derecognised when the contractual rights to the cash flows from the asset expire or are settled, or substantially all the risks and rewards of the ownership of the asset are transferred to another party, or despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
Basic financial liabilities |
Basic financial liabilities, including creditors, and bank loans 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Fees paid on the establishment of loan facilities are recognised at transaction costs of the loan to the extent that it is probable that some of all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent that there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility which it related. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Other financial liabilities |
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently measured at fair value through the statement of comprehensive income. |
Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. The fair value of the forward currency contracts is calculated by reference to current forward exchange contracts with similar maturity profiles. |
Off-setting |
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Derecognition of financial liabilities |
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled. |
Dunraven Holdings Limited (Registered number: 06293077) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the consolidated statement of comprehensive income, except to the extent that it relates to items recognised directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax |
The tax currently payable is based on taxable profit for the year or prior years. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. |
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It established provisions where appropriate on the basis of amounts expected to be paid to tax authorities. |
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. |
Provisions |
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. |
Provisions are initially recognised at the directors best estimate of the cost required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises. |
Foreign currencies |
Trading transactions denominated in foreign currencies are translated into sterling at the exchange rate ruling when the transaction was entered into. |
Assets and liabilities denominated in foreign currencies are translated into sterling at the exchange rates ruling at the balance sheet date. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at the period-end of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income. |
Leases |
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases. |
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. |
Lease payments are treated as consisting of capital and interest elements. The interest is charged to the profit and loss account so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
Assets held under finance leases are depreciated over the shorter of the lease terms and the useful live of equivalent owned assets. |
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. |
Going concern |
The financial statements have been prepared on a going concern basis which assumes that the company and group will continue in operational existence for the foreseeable future. |
The director has reviewed the balance sheet, the likely future cash flows of the business and has considered the facilities that are in place at the date of signing the report. The director has concluded, based on this review, that it is appropriate to prepare the financial statements on a going concern basis. |
The company's ability to continue as a going concern is dependent on the continued support of the company's bankers and on its providers of working capital maintaining the existing level of funding on terms and conditions similar to those currently in place. |
Dunraven Holdings Limited (Registered number: 06293077) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Cash at bank and in hand |
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Equity instruments |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares are shown in equity as a deduction, net of tax, from the proceeds. |
Dividends and other distributions to the Group's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders These amounts are recognised in the statement of changes in equity. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Deferred taxation |
Tax losses within the UK are available to be utilised against future profits. The Director has taken the decision to not recognise the deferred tax asset relating to tax losses of the UK business. |
Impairment of trade debtors |
The Group provides credit to customers. Whilst customer credit assessments are undertaken, due to the nature of the industry in which the Group operates, there are bad debts that arise in the course of the business. An assessment as to the recoverability of aged receivables is undertaken on a regular basis. Impairment of individually significant balances are separately assessed with an appropriate impairment provision being made when it is probable that the cash due will not be received in in full, such as where the debtor is about to go into liquidation. Individual non-significant balances are measured on a portfolio or group basis. |
Precontract expenditure |
The Group has determined the value of pre contract expenditure on customer contracts using the method that measures reliably the costs incurred. In the assessment of the Director, the method used is a proportion of anticipated pre contract costs on post year end contracts, where there is a reasonable assurance of them being completed. |
In the Directors assessment the stage of completion of a contract has been made using the method that measures most reliably the work performed. The method used is based on an estimate of the physical proportion of the contract completed at the end of the reporting period. |
Depreciation of fixed assets |
The estimates and underlying assumptions applied to determine depreciation are reviewed on an on-going basis. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. |
4. | TURNOVER |
Turnover is attributable to the principal activity of the group which is wholly undertaken in the United Kingdom. |
5. | EMPLOYEES AND DIRECTORS |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Wages and salaries | 10,474,372 | 9,909,627 |
Social security costs | 115,536 | 104,445 |
Other pension costs | 60,307 | 58,308 |
10,650,215 | 10,072,380 |
The average number of employees during the year was as follows: |
31.12.22 | 31.12.21 |
as restated |
Production staff | 197 | 197 |
Administrative staff | 124 | 124 |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Director's remuneration | 90,400 | 150,268 |
Director's pension contributions to money purchase schemes | - | 1,318 |
Dunraven Holdings Limited (Registered number: 06293077) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Hire of plant and machinery | 813,361 | 945,545 |
Other operating leases | 561,068 | 535,789 |
Depreciation - owned assets | 351,011 | 441,634 |
Loss on disposal of fixed assets | 14,074 | 9,939 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Bank interest | 89,280 | 15,461 |
Loan | - | 17,674 |
Hire purchase | 7,178 | 2,261 |
96,458 | 35,396 |
8. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Current tax: |
UK corporation tax | - | 120,222 |
Deferred tax | (295,434 | ) | 1,089,585 |
Tax on profit | (295,434 | ) | 1,209,807 |
9. | 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. |
10. | PRIOR YEAR ADJUSTMENT |
The results for the year-ended 31 December 2021 have been restated to reflect the following adjustments: |
A deferred tax asset, previously included in debtors, in the amount of £1,095,289, has been derecognised given uncertainties that were felt to exist surrounding its recoverability. The impact of this adjustment was to reduce the consolidated post tax profitability reported and the consoldiated net assets of the group by £1,095,289 for the year ended 31 December 2021. |
A formal waiver of certain intercompany balances was made on 31 December 2021. The waiver was not reflected in the company financial statements. The impact of this waiver, which has now been properly reflected in these financial statements, is to increase reported post tax profitability and net assets by £600,676 for the year-ended 31 December 2021. |
Dunraven Holdings Limited (Registered number: 06293077) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 | 50,000 |
AMORTISATION |
At 1 January 2022 |
and 31 December 2022 | 50,000 |
NET BOOK VALUE |
At 31 December 2022 | - |
At 31 December 2021 | - |
12. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1 January 2022 | 3,190,435 | 1,927,886 | 3,441,735 |
Additions | 43,502 | - | 5,683 |
Disposals | - | - | - |
At 31 December 2022 | 3,233,937 | 1,927,886 | 3,447,418 |
DEPRECIATION |
At 1 January 2022 | 546,138 | 296,170 | 2,148,784 |
Charge for year | 45,499 | 38,557 | 121,655 |
Eliminated on disposal | - | - | - |
At 31 December 2022 | 591,637 | 334,727 | 2,270,439 |
NET BOOK VALUE |
At 31 December 2022 | 2,642,300 | 1,593,159 | 1,176,979 |
At 31 December 2021 | 2,644,297 | 1,631,716 | 1,292,951 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST |
At 1 January 2022 | 864,491 | 1,355,951 | 10,780,498 |
Additions | - | 162,815 | 212,000 |
Disposals | - | (132,572 | ) | (132,572 | ) |
At 31 December 2022 | 864,491 | 1,386,194 | 10,859,926 |
DEPRECIATION |
At 1 January 2022 | 621,558 | 756,789 | 4,369,439 |
Charge for year | 60,547 | 84,753 | 351,011 |
Eliminated on disposal | - | (62,519 | ) | (62,519 | ) |
At 31 December 2022 | 682,105 | 779,023 | 4,657,931 |
NET BOOK VALUE |
At 31 December 2022 | 182,386 | 607,171 | 6,201,995 |
At 31 December 2021 | 242,933 | 599,162 | 6,411,059 |
Dunraven Holdings Limited (Registered number: 06293077) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
12. | TANGIBLE FIXED ASSETS - continued |
Company |
Freehold |
property |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
14. | STOCKS |
Group |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Stocks | 4,559,542 | 3,035,061 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
as restated | as restated |
£ | £ | £ | £ |
Trade debtors | 3,154,681 | 3,772,924 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contract | 5,142,949 | 4,397,046 |
Other debtors | 399,349 | 304,780 |
Called up share capital not paid | 200 | 200 |
Prepayments and accrued income | 1,102,953 | 819,652 |
9,800,132 | 9,294,602 |
Dunraven Holdings Limited (Registered number: 06293077) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 2,688,414 | 2,355,829 |
Hire purchase contracts (see note 19) | 100,206 | 78,844 |
Trade creditors | 5,464,991 | 4,741,183 |
Tax | 93,813 | 280,642 |
Social security and other taxes | 2,328,100 | 2,086,144 |
Other creditors | 78,269 | 117,315 |
Accruals and deferred income | 300,759 | 357,730 |
11,054,552 | 10,017,687 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
as restated | as restated |
£ | £ | £ | £ |
Bank loans (see note 18) | 1,033,196 | 1,433,333 |
Hire purchase contracts (see note 19) | 110,164 | 116,032 |
1,143,360 | 1,549,365 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
31.12.22 | 31.12.21 | 31.12.22 | 31.12.21 |
as restated | as restated |
£ | £ | £ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts | 2,288,414 | 1,955,829 |
Bank loans | 400,000 | 400,000 |
2,688,414 | 2,355,829 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years | 1,033,196 | 1,433,333 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Net obligations repayable: |
Within one year | 100,206 | 78,844 |
Between one and five years | 110,164 | 116,032 |
210,370 | 194,876 |
Group |
Non-cancellable operating leases |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Within one year | 37,112 | 353,562 |
Between one and five years | 208,043 | 231,801 |
245,155 | 585,363 |
Dunraven Holdings Limited (Registered number: 06293077) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2022 |
20. | PROVISIONS FOR LIABILITIES |
Group |
31.12.22 | 31.12.21 |
as restated |
£ | £ |
Deferred tax | 188,527 | 483,961 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2022 | 483,961 |
Credit to Income Statement during year | (295,434 | ) |
Balance at 31 December 2022 | 188,527 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.22 | 31.12.21 |
value: | as restated |
£ | £ |
Ordinary shares | £1 | 200 | 200 |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2022 | 6,753,815 |
Profit for the year | 1,489,328 |
At 31 December 2022 | 8,243,143 |
23. | NON-CONTROLLING INTERESTS |
Minority interests in the net assets of the consolidated subsidiaries are identified separately from the group's equity. Minority interests consist of the amount of those interests at the date of the original business combination, and the minority's share of changes in equity, since the date of the combination. |
24. | RELATED PARTY DISCLOSURES |
During the year the group incurred rental costs of £170,400 (2021: £170,400) and management fees of £88,200 (2021: £88,200) payable to David Brace, the ultimate controlling party. |
25. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is D Brace. |