Registered number
04515209
Daktronics UK Limited
Annual Report and Financial Statements
for the year ended
30 April 2023
Daktronics UK Limited
Financial statements
Contents
Page
Company information 1
Strategic report 2
Directors' report 5
Independent auditor's report 7
Income statement 10
Statement of financial position 11
Statement of changes in equity 12
Notes to the financial statements 13
Daktronics UK Limited
Company information
Directors
S M Anderson
P A Halliwell
R A Kurtenbach
Secretary
M J Roberts
Registered office
Kestrel Court
Waterwells Drive
Quedgeley
Gloucester
GL2 2AT
Auditor
Haines Watts Bristol Limited
Statutory Auditor
Bath House
6-8 Bath Street
Bristol
BS1 6HL
United Kingdom
Bankers
Bank of America Merrill Lynch
26 Elmfield Road
Bromley
BR1 1LR
Solicitors
Davies & Partners
135 Aztec West
Bristol
BS32 4UB
Registered number
04515209
(England & Wales)
Daktronics UK Limited
Strategic report
Principal activities
The principal activity of the company during the year under review was the sale, installation and service of electronic displays, scoreboards, and timing systems. There have not been any significant changes in the company's principal activities in the year under review.
Business review
As shown in the company's income statement on page 10, the company's sales have increased by 51% from the prior year. This reflects the project oriented nature of the company and the ongoing recovery from the impact of COVID 19 on many of the company's customers businesses and their investment strategies.

The statement of financial position on page 11 of the financial statements shows that the company's financial position has improved in terms of ending the year with net assets of £1,210,632 compared with net assets of £1,059,149 in the prior year.

The performance of the International division of Daktronics Inc., which includes the company, is discussed in the group's Annual Report which are publicly available.
Section 172(1) statement
The directors consider both individually and collectively, that they have acted in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its employees, customers, suppliers and members. The paragraphs below set out how the directors fulfil their duty under the Section 172 requirements.
Consequences of any decision in the long term
The company maintains a rolling two year business plan setting out the financial and capital implications of strategic and other business decisions such as sales strategies, company resources and product development. The plan is developed through input from sales, finance, and operations. The plan is updated and reviewed quarterly.
Interests of the company's employees
The health, safety and well-being of our employees is our primary consideration in the way that we operate. We aim to be a responsible employer in our approach to pay and benefits. Awards are made for long service and a life assurance scheme is provided for all employees.
Interest of the company's suppliers, customers and others
The company understands that each of our customers has unique needs and this principal is at the heart of our customer service and product offerings.
The company builds long-standing relationships with its suppliers and advisors and ensures all conditions of supply are adhered to including paying for goods and services within the agreed terms.
Impact on company's operations on the community and environment
The company endeavours to observe all laws and regulations relating to the environment and our displays are designed to be the most energy efficient in the industry. The Daktronics manufacturing facilities and products comply with industry specific requirements, including environmental rules and regulations and safety standards. These requirements include quality, manufacturing process controls, manufacturing documentation, supplier certification of raw materials, and various safety tests.

Daktronics offers support for local community groups through donations.
Maintaining a reputation for high standards of business conduct
As a board of directors our intention is to behave with the correct conduct to comply with the regulatory obligations and ensure that management operates the business in a responsible manner. As a subsidiary of a US listed company we comply with the internal controls requirements set out under the Sarbanes-Oxley Act. In addition, we and our operations are subject to anti-corruption regulations such as the United Kingdom Bribery Act and United States Foreign Corrupt Practices Act.
The need to act fairly between members of the company
The issued share capital of the company was entirely owned by the immediate and ultimate parent company during the reporting period so the risk of acting unfairly does not arise.
Key performance indicators
The company is a wholly owned subsidiary of Daktronics Inc. and operates as part of the group's International division. For this reason, the company's directors believe that further key performance indicators for the company are not necessary for an understanding of the development, performance or position of the business. The performance of the international division of Daktronics Inc., which includes the company, is discussed in the group's Annual report and is provided below:

"As most restrictions on gathering are reduced across geographies, more customers are choosing to invest in their digital needs. Over the long-term, we believe growth in the International business unit will result from a number of factors, including:

o Achieving greater penetration in various geographies and building products more suited to individual markets. We continue to broaden our product offerings into the transportation segment in Europe and the Middle East.
o Continued focus on sports facility, spectacular-type, OOH advertising products, and architectural lighting market opportunities and the factors listed in each of the other business units to the extent they apply outside of the United States and Canada.
o Increasing interest in spectaculars, which include very large and sometimes highly customized displays as part of entertainment venues such as casinos, shopping centres, cruise ships and city-centre locations.
o New market adoption and expansion of use of LED in government and military and corporate campuses.
o Additional opportunities exist with expanded market usage of LED technology due to price considerations, usage of LED technology replacing prior LCD installations and additional display offerings using micro-LEDs.
o Development and marketing alternative low-power and sustainable solutions for installations in power constrained areas or for customers desiring these types of products.
o Our product and service offerings, including additional micro-LED offerings, which remain the most integrated and comprehensive offerings in the industry.
o Growing our reseller channels to promote our products and gain market share.
o Our product and service offerings, including additional micro-LED offerings which remain the most integrated and comprehensive offerings in the industry.
o Growing our reseller channels to promote our products and gain market share."
Principle risks and uncertainties
These are described in the directors' report.
Future Developments
Daktronics endured a dynamic operating environment through the pandemic years. At the beginning of the pandemic, orders pulled back swiftly and abruptly, and we lowered capacity. Then order volumes recovered sharply while supply chain disruptions coupled with a tight labour market constrained our ability to deliver efficiently at traditional lead times and service levels. Inflation in parts, components, and labour increased our operating costs and decreased gross margins. To adapt to these conditions, our teams came together to take decisive and deliberate actions to improve our customers' experience while implementing strategies to improve our profitability and working capital levels.

Supply chains have gradually been stabilizing, which should allow reduced inventory levels in the coming months as our production levels continue to increase and we are able to purchase less safety stock. Although the post-pandemic geopolitical situation and global trade patterns continue to evolve, we believe that the levels of uncertainty and volatility will not be as great in the coming months and will continue to stabilize in the coming fiscal year.
We believe the audiovisual industry fundamentals and the development of new technologies and services will drive long-term growth for our business; however, our customers may reduce their spend on audiovisual systems and related services because of the impacts of global economic conditions, war and geopolitical situations, or other factors outside of our control
This report was approved by the board on 26 October 2023 and signed on its behalf by:
M J Roberts
Company Secretary
Daktronics UK Limited
Registered number: 04515209
Directors' report
The directors present their report and financial statements for the year ended 30 April 2023.
Statement of going concern
The company is a wholly owned subsidiary of Daktronics Inc. Daktronics Inc. has confirmed via a letter of support that it will continue to provide financial and operational support to the company for at least 12 months from the date of the approval of these financial statements.
Daktronics Inc. has produced forecasts that have been sensitised to reflect plausible scenarios in orders and revenue in the evolving post pandemic and global economic environments, which have been reviewed by the directors. The FY23 Daktronics Inc Financial Statements have the Going Concern and class actions references removed, and in the Other Liquidity and Capital Resources Discussion disclose details of the company's improved financing facilities.

These demonstrate the ability of Daktronics. Inc to generate profits and cash for the year ended 30 April 2023 and beyond, and that Daktronics Inc. has sufficient cash reserves to enable it to meet its obligations as they fall due for a period of at least 12 months from the date of signing these financial statements.
In addition to this commitment from Daktronics Inc., the company had cash in hand of £506k at the end of August 2023, and as such the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

Having considered these factors, the directors continue to adopt the going concern basis in preparing the financial statements.
Future developments
Future developments are disclosed in the Strategic report.
Directors
The directors who served at any time during the year and up to the date of signing were as follows:
S M Anderson
P A Halliwell
R A Kurtenbach
Directors' responsibilities
The directors' are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS102 (The Financial Reporting Standard applicable in the UK and Republic of Ireland). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Financial risk management objectives and policies
The company's operations expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk and liquidity risk. The company seeks to limit the adverse effects on the financial performance of the company wherever possible.

Price risk
The company is not exposed significantly to commodity price risk as a result of its operations. The company has no exposure to equity securities price risk as it holds no listed or other equity investments.

Credit risk
The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The credit risk on liquid funds is limited because the counter parties are banks with high credit rating assigned by international credit agencies.

Liquidity risk
The company has sufficient available funds and the support of its parent undertaking to maintain its current operations.
Dividends
The directors do not recommend a dividend during this period (2022 - £2m).
Disclosure of information to auditor
Each person who was a director at the time this report was approved confirms that:
so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and
they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.
Haines Watts have been appointed as auditors and have expressed their willingness to continue in office next year. Appropriate arrangements have been put in place for them to be deemed reappointed as auditor in the absence of an Annual General Meeting.
This report was approved by the board on 26 October 2023 and signed on its behalf by:
M J Roberts
Company Secretary
Independent auditor's report
to the members of Daktronics UK Limited
Report on the audit of the financial statements
We have audited the financial statements of Daktronics UK Ltd for the year ended 30 April 2023 which comprise:
the income statement;
the statement of financial position;
the statement of changes in equity; and
the related notes 1 to 21, including 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).
Opinion
In our opinion the financial statements of Daktronics UK Limited (the 'company'):
give a true and fair view of the state of the company's affairs as at 30 April 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 "The Financial Reporting standard applicable in the UK and Republic of Ireland"; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis of 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 auditor's responsibilities for the audit of the financial statements section of our report.
We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in respect of these matters.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
We considered the nature of the company’s industry and its control environment, and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in, and identified the key laws and regulations that:
had a direct effect on the determination of material amounts and disclosures in the financial statements; and
do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for fraud in the following area, and our specific procedures performed to address it are described below:
Revenue recognition judgements around determining stage of completion which can impact the period in which the revenue is recognised.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and
reading minutes of meetings of those charged with governance.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities including those that lead 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 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.
Report on other legal and regulatory requirements
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the strategic report or the directors' report.
Matters on which we are required to report by exception
Under the Companies Act 2006 we are required to report in respect of the following matters if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
We have nothing to report in respect of these matters.
Use of our report
This report is made solely to the company’s members, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members, for our audit work, for this report, or for the opinions we have formed.
Matthew Bracher BSc FCA
(Senior statutory auditor)
for and on behalf of
Haines Watts Bristol Limited
Statutory Auditor
Bristol, United Kingdom
26/10/2023
Daktronics UK Limited
Income statement
for the year ended 30 April 2023
Notes 2023 2022
£ £
Turnover 3 5,773,818 3,827,344
Cost of sales (5,015,823) (3,099,967)
Gross profit 757,995 727,377
Administrative expenses (616,553) (645,542)
Government grants - -
Operating profit 4 141,442 81,835
Interest receivable 7 48,667 27,356
Profit on ordinary activities before taxation 190,109 109,191
Tax on profit 8 (38,626) (21,659)
Profit for the financial year 151,483 87,532
attributable to the equity shareholders of the
company
As total comprehensive income is equal to the profit for the financial year, a statement of comprehensive income has not been prepared.
All turnover and profits are from continuing operations.
Daktronics UK Limited
Statement of financial position
as at 30 April 2023
Notes 2023 2022
£ £
Current assets
Stocks 9 68,171 47,109
Debtors 10 2,439,975 2,207,879
Cash at bank and in hand 318,450 938,418
2,826,596 3,193,406
Creditors: amounts falling due within one year 11 (1,609,795) (2,420,085)
Net current assets 1,216,801 773,321
Debtors: amounts falling due after more than one year 12 - 296,912
Total assets less current liabilities 1,216,801 1,070,233
Creditors: amounts falling due after more than one year 13 (6,169) (11,084)
Net assets 1,210,632 1,059,149
Capital and reserves
Called up share capital 14 1,000 1,000
Profit and loss account 15 1,209,632 1,058,149
Total equity 1,210,632 1,059,149
The financial statements of Daktronics UK Limited, registered number 04515209, were approved by the board of directors and authorised for issue on 26 October 2023. Signed on behalf of the board of directors:
S M Anderson
Director
26 October 2023
Daktronics UK Limited
Statement of changes in equity
for the year ended 30 April 2023
Share Profit Total
capital and loss
account
£ £ £
At 1 May 2021 1,000 2,970,617 2,971,617
Profit for the financial year/total comprehensive income. - 87,532 87,532
Dividends (2,000,000) (2,000,000)
At 30 April 2022 1,000 1,058,149 1,059,149
At 1 May 2022 1,000 1,058,149 1,059,149
Profit for the financial year/total comprehensive income. - 151,483 151,483
At 30 April 2023 1,000 1,209,632 1,210,632
Daktronics UK Limited
Notes to the financial statements
for the year ended 30 April 2023
1 Summary of significant accounting policies
General information and basis of preparation
The financial statements have been prepared under the historical cost convention and in accordance with FRS 102 - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006. There were no material departures from that standard.

The company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. The company is consolidated in the financial statements of its parent, Daktronics Inc., which may be obtained at 331, 32nd Avenue, PO Box 5128, Brookings, South Dakota, 57006-51 USA. Exemptions have been taken in these separate company financial statements in relation to share-based payments, financial instruments, presentation of a cash flow statement, presentation of a reconciliation of the number of shares outstanding at the beginning and at the end of the period, and remuneration of key management personnel.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable, net of value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Interest receivable
Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.
Going concern
The financial statements have been prepared using the going concern basis of accounting.

The company is a wholly owned subsidiary of Daktronics Inc. Daktronics Inc. has confirmed via a letter of support that it will continue to provide financial and operational support to the company for at least 12 months from the date of the approval of these financial statements.
Daktronics Inc. has produced forecasts that have been sensitised to reflect plausible scenarios in orders and revenue in the evolving post pandemic and global economic environments, which have been reviewed by the directors. The FY23 Daktronics Inc Financial Statements have the Going Concern and class actions references removed, and in the Other Liquidity and Capital Resources Discussion disclose details of the company's improved financing facilities.

These demonstrate the ability of Daktronics. Inc to generate profits and cash for the year ended 30 April 2023 and beyond, and that Daktronics Inc. has sufficient cash reserves to enable it to meet its obligations as they fall due for a period of at least 12 months from the date of signing these financial statements.
Summary of significant accounting policies: Going concern (continued)
In addition to this commitment from Daktronics Inc., the company had cash in hand of £506k at the end of August 2023, and as such the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

Having considered these factors, the directors continue to adopt the going concern basis in preparing the financial statements.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first in first out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.
Trade and other debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Trade and other creditors
Short term creditors are measured at transaction price. Other financial liabilities are measured initially at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the income statement in the year that the company becomes aware of the obligation, and are measured at the best estimate at the statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the statement of financial position.
Summary of significant accounting policies (continued)
Foreign currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are recorded in sterling using the exchange rate ruling at the date of the transaction. Exchange differences are recognised in the income statement in the period to which they relate.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they fall due. Amounts not paid are shown in accruals in the statement of financial position. The assets of the plan are held separately from the company in independently administered funds.
2 Critical accounting estimates and judgements
In the application of the company's accounting policies, which are described in note 1, the directors are required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements in applying the company's accounting policies: The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the directors have made in the process of applying the company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Revenue recognition:The directors recognise the revenue by reference to the stage of completion of the project. The stage of completion of a project is measured by comparing the costs incurred for work performed to date to the total estimated project costs.

Key source of estimation uncertainty: No key sources of estimation uncertainty were identified.
3 Analysis of turnover 2023 2022
£ £
Sale of goods 4,747,692 2,712,771
Services rendered 1,026,126 1,114,573
5,773,818 3,827,344
Analysis of turnover (continued)
By geographical market:
UK 5,328,711 3,241,593
Rest of world 445,107 585,751
5,773,818 3,827,344
4 Operating profit 2023 2022
£ £
This is stated after charging:
Auditor's remuneration for non audit services - -
Auditor's remuneration for audit of financial statements 13,000 13,000
5 Directors' remuneration 2023 2022
£ £
Remuneration included within staff costs - Note 6 - in respect of directors and highest paid director was as follows:
Aggregate remuneration in respect of qualifying services 124,512 112,347
Company contributions to defined contribution pension plans 6,240 6,279
130,752 118,626
Number Number
Number of directors who received shares in respect of qualifying
services 1 1
6 Staff costs 2023 2022
£ £
Wages and salaries 668,621 662,602
Social security costs 75,207 72,840
Other pension costs 40,379 40,379
784,207 775,821
2023 2022
Average monthly number of employees during the year Number Number
Administration 2 2
Development 4 4
Sales 4 4
10 10
7 Interest receivable 2023 2022
£ £
Interest from trade debtors 48,667 27,356
8 Taxation 2023 2022
£ £
Analysis of charge in period
Current tax:
UK corporation tax on profits of the period 38,626 21,659
Tax on profit on ordinary activities 38,626 21,659
Factors affecting tax charge for period
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:
2023 2022
£ £
Profit on ordinary activities before tax 190,109 109,191
Effective UK corporation tax rate 19.49% 19.00%
£ £
Profit on ordinary activities multiplied by the effective rate of corporation tax 37,052 20,746
Effects of:
Expenses not deductible for tax purposes 1,574 913
Current tax charge for period 38,626 21,659
Factors that may affect future tax charges
The UK corporation tax rate increased to 25% from 1 April 2023. The effective rate of tax for future years will therefore be 25%.
9 Stocks 2023 2022
£ £
Raw materials and consumables 6,937 32,749
Work in progress 61,234 14,360
68,171 47,109
10 Debtors 2023 2022
£ £
Trade debtors 576,540 964,360
Amounts owed by group undertakings 338,766 -
Other debtors - 10,260
Prepayments and accrued income 1,524,669 1,233,259
2,439,975 2,207,879
Amounts owed by group undertakings are repayable upon demand and no interest is charged.
11 Creditors: amounts falling due within one year 2023 2022
£ £
Trade creditors 73,964 80,597
Amounts owed to group undertakings - 94,994
Corporation tax 15,384 12,070
Other taxes and social security costs 71,451 18,593
Other creditors 14,108 13,395
Accruals and deferred income 1,434,888 2,200,436
1,609,795 2,420,085
Amounts owed to group undertakings are repayable upon demand and no interest is charged.
12 Debtors: amounts falling due after more than one year 2023 2022
£ £
Trade debtors - 296,912
13 Creditors: amounts falling due after more than one year 2023 2022
£ £
Accruals and deferred income 6,169 11,084
14 Called up share capital Nominal
value 2023 2023 2022
£ Number £ £
Allotted, called up and fully paid:
Ordinary shares 1 1,000 1,000 1,000
The Company has one class of ordinary shares which carry no right to fixed income.
15 Profit and loss account 2023 2022
£ £
At 1 May 1,058,149 2,970,617
Profit for the financial year 151,483 87,532
Dividends - (2,000,000)
At 30 April 1,209,632 1,058,149
Profit and loss account - includes all current and prior period retained profits and losses.
16 Other financial commitments
Total future minimum lease payments under non-cancellable operating leases:
Motor Vehicles Motor Vehicles
2023 2022
£ £
Falling due:
within one year 16,607 4,252
within two to five years 23,437 -
40,044 4,252
17 Controlling party
The immediate parent undertaking is Daktronics Inc.

The ultimate parent undertaking, controlling party and smallest and largest group to consolidate these financial statements is Daktronics Inc, a company incorporated in the United States of America. The registered office of Daktronics Inc. is 331, 32nd Avenue, PO Box 5128, Brookings, South Dakota, 57006-51, USA, and copies of the consolidated financial statements can be obtained from this address.
18 Presentation currency
The financial statements are presented in Sterling.
19 Legal form of entity and country of incorporation
Daktronics UK Limited is a private company limited by shares and incorporated in England.
20 Principal place of business
The address of the company's principal place of business and registered office is:
Kestrel Court
Waterwells Drive
Quedgeley
Gloucester
England
GL2 2AT
21 Related party disclosures
Transactions with other companies within the group have not been disclosed in these financial statements as the company has taken advantage of the exemption outlined in FRS102 on related party disclosures, which exempts wholly-owned subsidiaries from disclosing related party transactions in their statutory financial statements.
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