REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
FOR |
D & R GROUP PLC |
REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
FOR |
D & R GROUP PLC |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 |
D & R GROUP PLC |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
BUSINESS ADDRESS: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Sterling House |
27 Hatchlands Road |
Redhill |
Surrey |
RH1 6RW |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2023 |
The directors present the strategic report and financial statements for the year ended 31 May 2023. |
REVIEW OF BUSINESS |
The principal activity of the company continued to be that of erection and hire of scaffolding equipment. |
Given the current climate, the directors are satisfied with the sales performance in the year to 31 May 2023. Gross profit increased from 11.16% to 19.52% , the directors find this acceptable given the very competitive market. |
Operating costs have increased during the year and this, together with the increased gross margin results in a loss before tax of £485,606 (2022: loss of £1,149,273 ). |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors constantly monitor the risks and uncertainties facing the company with particular reference to the exposure on liquidity, stocks, interest rates and credit risks. They are confident that there are suitable policies in place and there are no material risks and uncertainties which have not been considered. |
The company uses various financial instruments which include loans, cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below. |
The main risks arising from the company's financial instruments are interest rate risk and liquidity risk. The directors review and agree policies for managing each of these risks which are summarised below. These policies have remained unchanged from previous years. |
Interest rate risk |
The company finances its operations through a mixture of retained profits and bank borrowings. The company's exposure to interest rate fluctuations on its borrowings is managed by the use of fixed and floating facilities. |
Liquidity risk |
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The company's policy throughout the year has been to achieve this objective through the day to day involvement of management in business decisions rather than through setting maximum or minimum liquidity ratios. |
SECTION 172(1) STATEMENT |
This section serves as our S172 statement and should be read in conjunction with the whole Strategic Report. S172 Companies Act 2006 requires directors to take into consideration the interests of stakeholders in their decision making. The directors continue to have regard to the interests of the company's employees and other stakeholders including the impact of its activities on the community, the environment and the company's reputation when making decisions. The directors consider that acting in good faith and fairly between stakeholders is most likely to promote the success of the company. Our principal stakeholders are engaged with on a regular basis. |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2023 |
KEY PERFORMANCE INDICATORS |
Key Performance indicators |
The directors use a number of measures, both financial and non-financial to monitor and benchmark the performance of the company. They regard the following as the key financial indicators of performance: |
- Operating profit - measuring the profits generated by the company's operations. |
- Net cash flow from operating activities - measuring the performance in translating operating profit into cash flow through management of working capital and the monitoring of debtor days and stock levels. |
The key non-financial indicators are associated with the company's ability to maintain its existing customer and supplier base. |
FUTURE DEVELOPMENTS |
The directors will continue to grow and develop the business in the future but anticipate that business will be very competitive during the current year. |
POSITION OF THE COMPANY AT THE YEAR END |
The results for the year and the financial position at the year end were considered satisfactory by the directors. |
ON BEHALF OF THE BOARD: |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2023 |
The directors present their report with the financial statements of the company for the year ended 31 May 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 May 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
Details of items required under Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports Regulations) 2008 are provided in the Strategic Report on pages 2 and 3. |
DISABLED EMPLOYEES |
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training, career development and promotion to disabled employees wherever appropriate. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
The directors regularly engage with all stakeholders including customers, suppliers and other business partners. This enables the directors to enhance market focus, improve decision making and promote the long-term success of the company more effectively, and includes: |
- regular engagement with major customers in support of our key account programme; |
- regular meetings with major suppliers to ensure we are supporting their efforts to bring products and services to market at fair prices, with rigorous quality control and high levels of availability; |
- regular contact with our bankers and professional advisers to discuss our strategy and performance; |
- regular reviews with employees of their role in the business and how it contributes to the overall business performance. |
STREAMLINED ENERGY AND CARBON REPORTING |
Environmental Matters and Streamlined Energy and Carbon Reporting (SECR) |
The company takes environmental matters seriously and continues to improve its impact on the local and wider environment. |
From 1 August 2019 we are required to report under the new SECVR regulations which provides increased transparency on our energy efficiency and emissions as a business. |
Reporting methodology |
The information has been provided using the GHG Protocol Corporate Accounting and Reporting Standard and the 2019 UK Government Environmental Reporting Guidelines. |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2023 |
Intensity Ratio |
The intensity ratio chosen was tC02e per full time employee. This was chosen as it was deemed to be the best metric which could be constantly used over time and would best reflect changes in our energy consumption, but also reflect changes in our operations. . |
Litres/Staff |
numbers | Kwh | tC02e | % of total |
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Gas - total KWh Used for the year |
75,547 |
111,152 |
408.36 |
600.82 |
50 |
60 |
Electricity - total KWh Used for the year |
39,113 |
30,171 |
129.41 |
129.41 |
16 |
13 |
Transport - Litres used for the year |
109,443 |
103,246 |
284.56 |
268.44 |
35 |
27 |
Number of staff / total C02 |
85 |
104 |
9.67 |
9.60 |
Tonnes of C02e per Employee |
Energy Efficiency and Environmental Actions |
The business has been looking at ways to reduce plastic usage with our customers and suppliers during the year and we have made significant progress to date in reducing usage. This is an ongoing project. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 '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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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. |
The directors are also responsible for preparing the Strategic Report in accordance with applicable law and regulations. |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
D & R GROUP PLC |
Opinion |
We have audited the financial statements of D & R Group PLC (the 'company') for the year ended 31 May 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 May 2023 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
D & R GROUP PLC |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- we identified the laws and regulations applicable to the company through discussions with directors and from our knowledge and experience of the construction industry; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and health and safety legislation; |
Additionally, we assessed the susceptibility of the company's financial statements to material misstatement, including obtaining and understanding how fraud might occur by: |
- making enquires of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with 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 |
D & R GROUP PLC |
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 |
Statutory Auditor |
Sterling House |
27 Hatchlands Road |
Redhill |
Surrey |
RH1 6RW |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(541,034 | ) | (1,154,963 | ) |
Other operating income |
OPERATING LOSS | 6 | ( |
) | ( |
) |
Interest receivable and similar income |
(471,488 | ) | (1,132,317 | ) |
Interest payable and similar expenses | 7 |
LOSS BEFORE TAXATION | ( |
) | ( |
) |
Tax on loss | 8 | ( |
) |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
( |
) |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
BALANCE SHEET |
31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investment property | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Revaluation reserve | 18 |
Fair value reserve | 18 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2023 |
Called up |
share | Retained | Revaluation | Fair value | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 June 2021 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 May 2022 | 250,000 | 9,339,519 | 200,123 | 442,225 | 10,231,867 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) | ( |
) | ( |
) |
Balance at 31 May 2023 | 186,655 |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Improvements to investment property | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments on HP in year | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
3,131,588 |
Cash and cash equivalents at end of year |
2 |
2,153,220 |
2,361,008 |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2023 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Loss before taxation | ( |
) | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 14,118 | 16,956 |
Finance income | (43,146 | ) | (3,246 | ) |
164,993 | (468,225 | ) |
(Increase)/decrease in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 May 2023 |
31.5.23 | 1.6.22 |
£ | £ |
Cash and cash equivalents | 2,153,220 | 2,361,008 |
Year ended 31 May 2022 |
31.5.22 | 1.6.21 |
£ | £ |
Cash and cash equivalents | 2,361,008 | 3,131,588 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.6.22 | Cash flow | At 31.5.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,361,008 | (207,788 | ) | 2,153,220 |
2,361,008 | ( |
) | 2,153,220 |
Debt |
Finance leases | (159,884 | ) | 65,371 | (94,513 | ) |
Debts falling due after 1 year | (28,350 | ) | 28,350 | - |
(188,234 | ) | 93,721 | (94,513 | ) |
Total | 2,172,774 | (114,067 | ) | 2,058,707 |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
1. | STATUTORY INFORMATION |
D & R Group PLC is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover and revenue recognition |
Turnover represents the amounts receivable for scaffold erection and hire services net of VAT and trade discounts. |
Revenue is recognised as and when the company satisfies a performance obligation and the significant risks and rewards have been transferred to the customer. Where a contract has only been partially completed at the balance sheet date, turnover represents the fair value of the service provided to date based on the stage of completion of contract activity at the balance sheet date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of the debtors due within one year. |
Tangible fixed assets |
Land and buildings Freehold Freehold land and buildings are included in the balance sheet at cost, and include freehold land and buildings held at deemed cost in accordance with the transitional provisions under FRS 102. No depreciation is charged as it is the company's policy to maintain these to extend their useful lives. |
Land and buildings Leasehold 10% straight line |
Plant and machinery 3% - 12.5% straight line, depending on asset |
Fixtures, fittings & equipment 10% - 20% straight line, depending on asset |
Motor vehicles 25% straight line |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Investment properties are included in the balance sheet at their fair value. |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Impairment of fixed assets |
The need for any fixed asset impairment write-down is assessed by comparison of the carrying value of the asset against its recoverable amount. |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
In preparing the financial statements the directors are required to assess the company's ability to continue to trade as a going concern for the foreseeable future. |
In undertaking this assessment, the directors have given due consideration to the company's banking facilities, historical and current trading, together with the forward-looking projections. The company has prepared detailed cashflow forecasts and undertaken scenario modelling. |
The directors have reviewed the cash flow forecasts and based on their best assessment therefore believe that the company will have sufficient financing in place to ensure cash flows requirements are satisfied for at least the next twelve months and that there are no material uncertainties. As such, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements. Consequently, the financial statements do not include any adjustments that would result if the company were unable to continue as a going concern. |
The directors have also considered the impact of events in Ukraine and the wider economy, including the impact of inflation, in making this assessment. |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Borrowing costs |
All borrowing costs are recognised in the Statement of Comprehensive income in the year in which they are incurred. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Finance costs |
Finance costs are charged to the Statement of Comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised when approved by the shareholders at an annual general meeting. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
Debtors |
Short-term debtors are measured at the transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Provisions for liabilities |
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 Statement of Comprehensive Income 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 to settle the obligation, taking into account relevant risk and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the statement of Financial Position. |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In preparing these financial statements, the directors have made the following judgements: |
- Determine whether leases entered into by the company as a lessor are operating or finance leases. |
These decisions depend on an assessment of whether the risks and rewards of ownership have |
been transferred from the lessor to the lessee on a lease by lease basis. |
- Determine whether there are indicators of impairment of the company's tangible assets. Factors |
taken into consideration in reaching such a decision include the economic viability and expected |
future financial performance of the asset and where it is a component of a larger cash-generating |
unit, the viability and expected future performance of that unit. |
Other key sources of estimation uncertainty: |
- Tangible fixed assets (see note 9) |
Tangible fixed assets are depreciated over their useful lives taking into account residual values, |
where appropriate. The actual lives of the assets and residual values are assessed annually and |
may vary depending on a number of factors. In re-assessing asset lives, factors such as |
technological innovation, product life cycles and maintenance programmes are taken into account. |
Residual value assessments consider issues such as future market conditions, the remaining life of |
the asset and projected disposal values. |
- Investment property (see note 10) |
Determine the fair value of the property at the year end using the market approach. Under this approach, prices and other information generated by market transactions of similar properties are used to determine fair value. |
- Trade debtors (see note 11) |
Determine the recoverability of trade receivables via regular review in the light of the available |
economic information specific to each receivable with specific provisions recognised for balances |
considered to be irrecoverable. |
- Accrued income (see note 11) |
Determine the value of revenue to recognise on jobs that are ongoing at the year end. This |
calculation is dependent on the revenue assigned to each job. The value assigned per job is based on that historically achieved with the appropriateness of the value applied reviewed at regular intervals. |
4. | TURNOVER |
The turnover and loss before taxation are attributable to the one principal activity of the company. |
The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the United Kingdom. |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Office and management | 16 | 17 |
Production and sales | 84 | 88 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Key management personnel includes all persons, who are not directors, who have authority and responsibility for planning,directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the company was £294,124. |
6. | OPERATING LOSS |
The operating loss is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
Auditors' remuneration for non audit work |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Non bank interest paid |
Hire purchase |
8. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Deferred tax | ( |
) |
Tax on loss | ( |
) |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Loss before tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of |
( |
) |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Deferred tax | 23,583 | (226,021 | ) |
allowance |
Losses c/fwd | 28,192 | 194,494 |
Total tax charge/(credit) | 23,583 | (226,021 | ) |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
9. | TANGIBLE FIXED ASSETS |
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 June 2022 |
Additions |
Disposals |
At 31 May 2023 |
DEPRECIATION |
At 1 June 2022 |
Charge for year |
Eliminated on disposal |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
Office |
equipment |
and | Motor |
furniture | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 June 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 May 2023 |
DEPRECIATION |
At 1 June 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
The freehold and land and buildings were valued on an open market basis by independent Chartered Surveyors; Hindwoods Hunter Payne, and Levene Chartered Surveyors and by the directors themselves. The valuations took place in 2007, 2010 and 2012.In line with the Accounting Policy all freehold land and buildings are included at cost or deemed cost. |
A provision has been made for deferred tax on gains on revaluing properties to their fair values. The total amount provided is £56,571. |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Cost or valuation at 31 May 2023 is represented by: |
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
Valuation in 1989 | 118,226 | - | - |
Valuation in 2007 | 125,000 | - | - |
Cost | 906,298 | 121,086 | 10,071,197 |
1,149,524 | 121,086 | 10,071,197 |
Office |
equipment |
and | Motor |
furniture | vehicles | Totals |
£ | £ | £ |
Valuation in 1989 | - | - | 118,226 |
Valuation in 2007 | - | - | 125,000 |
Cost | 429,926 | 1,573,831 | 13,102,338 |
429,926 | 1,573,831 | 13,345,564 |
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 906,298 | 906,298 |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST OR VALUATION |
At 1 June 2022 |
Additions |
Disposals | ( |
) |
Transfer to ownership | (39,000 | ) |
At 31 May 2023 |
DEPRECIATION |
At 1 June 2022 |
Charge for year |
Eliminated on disposal | ( |
) |
Transfer to ownership | (23,563 | ) |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
10. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 June 2022 |
and 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
A provision has been made for deferred tax on gains on revaluing the property to its fair value. The total amount provided is £96,470. |
The directors consider the value remains unchanged as at 31 May 2023. |
Fair value at 31 May 2023 is represented by: |
£ |
Valuation in 2004 | 172,192 |
Valuation in 2007 | 200,000 |
Valuation in 2012 | 100,000 |
Valuation in 2019 | 45,132 |
Cost | 295,812 |
813,136 |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
10. | INVESTMENT PROPERTY - continued |
If investment property had not been revalued it would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 295,812 | 295,812 |
Investment property was valued on an open market basis basis on 31 May 2019 by a third party . |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
VAT |
Prepayments |
Accrued income |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 15) |
Trade creditors |
Social security and other taxes |
Other creditors |
Other loans | 28,350 | 110,004 |
Accruals and deferred income |
Other loans are secured by a fixed and floating charge over the company's investment property. |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Other loans (see note 14) |
Hire purchase contracts (see note 15) |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due between one and two years: |
Other loans - 1-2 years | - |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase | contracts |
2023 | 2022 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
15. | LEASING AGREEMENTS - continued |
At 31 May 2023 the company had future minimum lease payments under non-cancellable operating leases as follows: |
2023 | 2022 |
£ | £ |
Land and buildings |
Within 1 year | 275,000 | 11,500 |
Between 2 and 5 years | 550,000 | - |
825,000 | 11,500 |
2023 | 2022 |
£ | £ |
Other |
Within 1 year | 2,688 | 2,688 |
Between 2 and 5 years | 5,376 | 8,064 |
8,064 | 10,752 |
16. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Deferred tax b/f | 364,367 | 588,897 |
Deferred tax movement | (14,636 | ) | (224,530 | ) |
349,731 | 364,367 |
Other provisions | 153,042 | 114,823 |
Aggregate amounts | 502,773 | 479,190 |
Property |
Deferred | revaluatio |
tax | ns |
£ | £ |
Balance at 1 June 2022 |
Accelerated capital allowances | (14,636 | ) | - |
Property revaluations |
Corporation tax rate change | - | 38,219 |
Balance at 31 May 2023 |
D & R GROUP PLC (REGISTERED NUMBER: 00849433) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary shares | £1 | 250,000 | 250,000 |
18. | RESERVES |
Retained | Revaluation | Fair value |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 June 2022 | 9,981,867 |
Deficit for the year | ( |
) | - | - | ( |
) |
Transfer from Reval Reserve | 34,840 | (13,468 | ) | (21,372 | ) | - |
At 31 May 2023 | 9,472,678 |