Company registration number 06041619 (England and Wales)
DATA DIRECT HOLDINGS LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2023
Century House
Wargrave Road
Henley-on-Thames
Oxfordshire
United Kingdom
RG9 2LT
DATA DIRECT HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 37
DATA DIRECT HOLDINGS LIMITED
COMPANY INFORMATION
Director
Mr. P. Winterbotham
Company number
06041619
Registered office
11 Ivanhoe Road
Hogwood Industrial Estate
Finchampstead
Wokingham
Berkshire
United Kingdom
RG40 4QQ
Auditor
Verallo
Century House
Wargrave Road
Henley-on-Thames
Oxfordshire
United Kingdom
RG9 2LT
DATA DIRECT HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The director presents the strategic report for the year ended 31 March 2023.

Principal activities

The principal activity continued to be that of a holding company. The principal activity of the group during the period was that of the sale of computer consumables.

Review of the business

The Data Direct group has developed a strategic plan which is reviewed every year. This is being delivered in all areas of the business to:

 

 

Principal risks and uncertainties

 

Credit Risk

The company mitigates its credit risk through the use of its invoice financing facility with Lloyds TSB Invoice Financing.

 

Competitive Risk

The company operates in a competitive environment, to mitigate this risk, we ensure that the services provided are in line with our customers needs, and that strong relationships are maintained with our key customers.

 

Technical Risk

The company ensures that it has appropriate professional indemnity insurance.

Key performance indicators

The turnover remained at a consistent £18.7million for 2023 and 2022.

EBITDA has increased from £530k in 2022 to £906k in 2023.

We have continued to sustain a net current asset position within the group, and our key performance indicators of debtor days have increased 3 days from 57 days last year to 60 days this year. Stock days however have decreased to 65 days (2022: 67 days). This is representative of the market conditions, and our move to ensure we have appropriate stock levels in place to counter and delays in shipping.

Future Developments

The directors continue to ensure strategies are in place to innovate and ensure efficiencies throughout the business. The directors continue to remain agile to current market conditions.

DATA DIRECT HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

On behalf of the board

Mr. P. Winterbotham
Director
4 March 2024
DATA DIRECT HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The director presents his annual report and financial statements for the year ended 31 March 2023.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr. P. Winterbotham
Auditor

In accordance with the company's articles, a resolution proposing that Verallo be reappointed as auditor of the group will be put at a General Meeting.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and uncertainties and future developments.

DATA DIRECT HOLDINGS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company and group is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company and group is aware of that information.

Going concern

The director has carefully considered the future forecasts of the group and company, for a period of at least 12 months from the date these accounts are signed. The director is confident that the group and company have sufficient resources available to meet the group and company's obligations as they fall due and to enable the group and company to continue to operate for the foreseeable future.

 

In concluding that it is appropriate to adopt the going concern basis in preparing the financial statements, the director has considered the current and future trading, which are based upon expected market trends.

 

The director has further considered the continued facilities provided by the group's financiers over the invoice factoring facility of £3 million, where no contra indicators to continuation have been observed and the Coronavirus Business Interruption Loan Scheme loan of £2 million, repayable by December 2027.

 

On behalf of the board
Mr. P. Winterbotham
Director
4 March 2024
DATA DIRECT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DATA DIRECT HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Data Direct Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and 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 FRS 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 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 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.

DATA DIRECT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DATA DIRECT HOLDINGS LIMITED
- 6 -

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 director is 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 this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, 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 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 director is responsible for assessing 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 parent company or to cease operations, or has no realistic alternative but to do so.

DATA DIRECT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DATA DIRECT HOLDINGS LIMITED
- 7 -
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.

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.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: 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 both those charged with governance of the entity and its management.

 

Our approach was as follows:

 

DATA DIRECT HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DATA DIRECT HOLDINGS LIMITED
- 8 -

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

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 properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-of-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report.

 

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 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 as a body, for our audit work, for this report, or for the opinions we have formed.

Michelle Hewitt-Dutton FCCA (Senior Statutory Auditor)
For and on behalf of Verallo
Statutory Auditor
6 March 2024
DATA DIRECT HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
18,669,336
18,730,936
Cost of sales
(15,089,241)
(15,439,263)
Gross profit
3,580,095
3,291,673
Distribution costs
(1,321,649)
(803,418)
Administrative expenses
(1,976,781)
(2,553,097)
Other operating income
280,331
263,282
Operating profit
4
561,996
198,440
Interest receivable and similar income
182
-
Interest payable and similar expenses
7
(142,561)
(86,127)
Profit before taxation
419,617
112,313
Tax on profit
8
(20,669)
(109,779)
Profit for the financial year
24
398,948
2,534
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

DATA DIRECT HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
171,200
362,835
Tangible assets
11
1,896,199
1,971,596
Investments
12
1,700,000
1,700,000
3,767,399
4,034,431
Current assets
Stocks
15
3,348,716
3,450,625
Debtors
16
6,760,218
5,911,245
Cash at bank and in hand
326,237
726,982
10,435,171
10,088,852
Creditors: amounts falling due within one year
17
(8,065,179)
(7,927,937)
Net current assets
2,369,992
2,160,915
Total assets less current liabilities
6,137,391
6,195,346
Creditors: amounts falling due after more than one year
18
(1,940,621)
(2,397,524)
Provisions for liabilities
Deferred tax liability
21
36,023
36,023
(36,023)
(36,023)
Net assets
4,160,747
3,761,799
Capital and reserves
Called up share capital
23
10,000
10,000
Profit and loss reserves
24
4,150,747
3,751,799
Total equity
4,160,747
3,761,799
The financial statements were approved and signed by the director and authorised for issue on 4 March 2024
Mr. P. Winterbotham
Director
Company registration number 06041619 (England and Wales)
DATA DIRECT HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
3,591,848
3,591,848
Current assets
Cash at bank and in hand
455
665
Creditors: amounts falling due within one year
17
(3,289,438)
(3,284,637)
Net current liabilities
(3,288,983)
(3,283,972)
Net assets
302,865
307,876
Capital and reserves
Called up share capital
23
10,000
10,000
Profit and loss reserves
24
292,865
297,876
Total equity
302,865
307,876

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £5,011 (2022 - £210).

The financial statements were approved and signed by the director and authorised for issue on 4 March 2024
Mr. P. Winterbotham
Director
Company registration number 06041619 (England and Wales)
DATA DIRECT HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
10,000
3,895,265
3,905,265
Year ended 31 March 2022:
Profit and total comprehensive income
-
2,534
2,534
Dividends
9
-
(146,000)
(146,000)
Balance at 31 March 2022
10,000
3,751,799
3,761,799
Year ended 31 March 2023:
Profit and total comprehensive income
-
398,948
398,948
Balance at 31 March 2023
10,000
4,150,747
4,160,747
DATA DIRECT HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
10,000
444,086
454,086
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
(210)
(210)
Dividends
9
-
(146,000)
(146,000)
Balance at 31 March 2022
10,000
297,876
307,876
Year ended 31 March 2023:
Profit and total comprehensive income
-
(5,011)
(5,011)
Balance at 31 March 2023
10,000
292,865
302,865
DATA DIRECT HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
277,627
(290,073)
Interest paid
(142,561)
(86,127)
Income taxes refunded/(paid)
14,357
(171,675)
Net cash inflow/(outflow) from operating activities
149,423
(547,875)
Investing activities
Purchase of tangible fixed assets
(76,961)
(54,829)
Interest received
182
-
Net cash used in investing activities
(76,779)
(54,829)
Financing activities
Repayment of borrowings
(67,600)
914,336
Repayment of bank loans
(450,039)
(390,589)
Payment of finance leases obligations
44,250
-
Net cash (used in)/generated from financing activities
(473,389)
523,747
Net decrease in cash and cash equivalents
(400,745)
(78,957)
Cash and cash equivalents at beginning of year
726,982
805,939
Cash and cash equivalents at end of year
326,237
726,982
DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information

Data Direct Holdings Limited (06041619) (“the company”) is a private company limited by shares incorporated in England and Wales. The registered office is 11 Ivanhoe Road, Hogwood Industrial Estate, Finchampstead, Wokingham, RG40 4QQ.

 

The group consists of Data Direct Holdings Limited and its subsidiary Data Direct Thames Valley Limited.

1.1
Accounting convention

These financial statements 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 are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

 

Reclassification of expenditure

Distribution costs of £735,838 incurred during the year ended 31 March 2022 have been reclassified as cost of sales, in order to better reflect the reality of the costs incurred.

 

Management charges of £256,790 received during the year ended 31 March 2022 have been reclassified as other operating income, having previously been aggregated within cost of sales. The revised presentation more accurately reflects the substance of the transactions.

DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.2
Basis of consolidation

The consolidated financial statements incorporate those of Data Direct Holdings Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.3
Going concern

The director has carefully considered the future forecasts of the group and company, for a period of at least 12 months from the date these accounts are signed. The director is confident that they have sufficient resources available to meet the group and company's obligations as they fall due and to enable it to continue to operate for the foreseeable future.

 

In concluding that it is appropriate to adapt the going concern basis in preparing the financial statements, the director has considered the current and future trading, which are based upon expected market trends.

 

The director has further considered the continued facilities provided by the group's financiers over the invoice factoring facility of £3 million and the Coronavirus Business Interruption Loan Scheme loan of £2 million, repayable by December 2027.

 

 

DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.4
Turnover

The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax. Turnover is recognised on the delivery of the goods and services.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years in respect of the group and 20 years in the trading company.

 

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
Land not depreciated; buildings over 50 years
Leasehold properties
Over the life of the lease
Plant and machinery
25% straight line
Fixtures and fittings
20% straight line
Computer Equipment
20% straight line
Motor vehicles
25% reducing balance

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 profit and loss account.

1.7
Fixed asset investments

The trading company holds an interest in a related party. This investment is initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the profit or loss.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

 

Cost is calculated on a first in, first out basis.

 

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash and cash equivalents

Cash and cash equivalents 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.

1.10
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.

 

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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 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 profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

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.

 

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.

DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
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 re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. 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.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
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 profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.16
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.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

A key area of uncertainty is the recoverability of all related party debtor balances. Please refer to note 16 in the financial statements.

 

Key accounting estimates include the assessment of impairment of the loans to a related party. This is considered by the directors on an annual basis, based on the expectations of repayment by the related party. In the current year no impairment was required.

 

Each year the directors review the carrying value of the fixed asset investments to determine if any impairment is required. The historical and projected financial performance of the investment is reviewed to ascertain that the amount invested by the company remains recoverable. To date the directors believe no impairment is considered necessary, additional support for this consideration has been provided by the personal guarantee by P Winterbotham, should there be a shortfall in repayment of the preference shares. The impairment considerations are continually monitored.

 

In addition the directors have considered the appropriateness of the accounting treatment for the loans as long term other investments. On the basis that there is no traded active market for the shares for recognition at fair value, and the timing of the repayment is unknown, for recognition at amortised cost, the directors consider the recognition at cost less impairment is to be most appropriate.

 

Each year, the directors review the stock for slow moving and obsolete items to determine if any provision is required. In doing so, the company projects the expected consumption of stock lines to calculate how long it will take for the stock to be consumed or sold. Stock lines which are projected to take longer than 12 months are provided against accordingly.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sale of goods
18,669,336
18,730,936
DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 23 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
15,727,374
16,024,505
Europe
2,941,962
2,706,431
18,669,336
18,730,936
2023
2022
£
£
Other revenue
Interest income
182
-
Grants received
-
6,492
Management fees
280,331
256,790
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(6,492)
Depreciation of owned tangible fixed assets
152,358
139,702
Amortisation of intangible assets
191,635
191,635
Operating lease charges
219,699
232,657
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,800
4,500
Audit of the financial statements of the company's subsidiaries
21,000
20,685
25,800
25,185
DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Distribution staff
8
8
-
-
Administrative staff
27
10
-
-
Sales staff
12
30
-
-
Total
47
48
-
-

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,119,811
2,276,742
-
-
Social security costs
270,039
265,877
-
-
Pension costs
74,597
72,788
-
-
2,464,447
2,615,407
-
-
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
142,072
85,970
Other interest
489
157
Total finance costs
142,561
86,127
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
133,033
96,849
Adjustments in respect of prior periods
(112,364)
12,930
Total current tax
20,669
109,779
DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
8
Taxation
(Continued)
- 25 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
419,617
112,313
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
79,727
21,339
Tax effect of expenses that are not deductible in determining taxable profit
4,926
52,800
Change in unrecognised deferred tax assets
952
-
Other non-reversing timing differences
11,587
-
Under/(over) provided in prior years
35,841
35,640
Disallowable provisions
(112,364)
-
Taxation charge
20,669
109,779

In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would increase to 25% (rather than remaining at 19% as previously enacted). The Finance Bill 2021 had its third reading on 24 May 2021 and is now considered substantively enacted. This means that the 25% main rate of corporation tax and marginal relief will be relevant for any asset sales or timing differences expected to reverse on or after 1 April 2023. Deferred taxes at the balance sheet date have not been measured using these enacted tax rates and not reflected in these financial statements on the grounds of immateriality.

9
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
-
146,000
DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
1,946,349
Amortisation and impairment
At 1 April 2022
1,583,514
Amortisation charged for the year
191,635
At 31 March 2023
1,775,149
Carrying amount
At 31 March 2023
171,200
At 31 March 2022
362,835
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold properties
Plant and machinery
Fixtures and fittings
Computer Equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 April 2022
1,776,312
184,090
158,126
511,985
582,145
-
3,212,658
Additions
-
2,550
-
-
12,576
61,835
76,961
At 31 March 2023
1,776,312
186,640
158,126
511,985
594,721
61,835
3,289,619
Depreciation and impairment
At 1 April 2022
29,504
184,090
144,199
335,078
548,191
-
1,241,062
Depreciation charged in the year
9,835
511
7,409
101,907
17,237
15,459
152,358
At 31 March 2023
39,339
184,601
151,608
436,985
565,428
15,459
1,393,420
Carrying amount
At 31 March 2023
1,736,973
2,039
6,518
75,000
29,293
46,376
1,896,199
At 31 March 2022
1,746,808
-
13,927
176,907
33,954
-
1,971,596
The company had no tangible fixed assets at 31 March 2023 or 31 March 2022.
DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Tangible fixed assets
(Continued)
- 28 -

 

12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
-
3,591,848
3,591,848
Loans to associates
1,700,000
1,700,000
-
-
1,700,000
1,700,000
3,591,848
3,591,848

On 21 December 2018, Data Direct Thames Valley Limited loaned £1.7 million to SRS Works Limited, in return for 1,700,000 Ordinary B £1 shares, at a dividend rate of 0.001%. The Ordinary B shares have no voting rights, but will take precedence on wind up.

 

The company is related by a mutual director and controlling party, although there is no formal repayment schedule for the preference shares, the director has confirmed that it is anticipated to be repaid in full in a short period of time.

 

On the basis that there is no traded active market for the shares for recognition at fair value, and the timing of the repayment is unknown, for recognition at amortised cost, the directors consider the recognition at cost less impairment is to be most appropriate.

 

The directors have considered the carrying value of the fixed asset investments to determine if any impairment is required. To date the directors believe no impairment is considered necessary, additional support for this consideration has been provided by the personal guarantee by P Winterbotham, should there be a shortfall in repayment of the preference shares. The impairment considerations are continually monitored.

Movements in fixed asset investments
Group
Loans to associates
£
Cost or valuation
At 1 April 2022 and 31 March 2023
1,700,000
Carrying amount
At 31 March 2023
1,700,000
At 31 March 2022
1,700,000
DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
12
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 and 31 March 2023
3,591,848
Carrying amount
At 31 March 2023
3,591,848
At 31 March 2022
3,591,848
13
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Data Direct Thames Valley Limited
UK
Ordinary
100

The company holds both Ordinary and Ordinary A shares in the subsidiary, the only distinction between them is the priority to assets on winding-up.

14
Financial instruments
DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
14
Financial instruments
(Continued)
- 30 -

Financial instruments policy

Data Direct Holdings Limited use financial instruments, other than derivatives, comprising cash, short term borrowings, trade creditors and trade debtors, that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operation. It is the Group's policy to minimise the cost of borrowings whilst retaining the flexibility of funding opportunities.

 

Interest rate exposure

The Group's commercial finance loans incurred interest during the year at 1.9% above base. The director will revisit the appropriateness of this policy should the Group's operations change in size or nature.

 

Currency exposure

As at 31 March 2023, the group had currency exposures relating to trading activities. The Group's financial instruments are materially denominated in sterling. Some purchases are made in other currencies. The Company manages these through use of foreign currency bank accounts.

 

Fair value of financial assets and liabilities

An assessment of the fair value of the Group's financial instruments held for financing purposes has been undertaken as at 31 March 2023.

 

Credit risk

The Group has credit limits in place. If credit limits are exceeded, no more sales are made to that customer.

 

Liquidity risk

The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. This is also minimised by the relationship trading of suppliers and customers.

 

 

 

15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
167,255
88,824
-
-
Finished goods and goods for resale
3,181,461
3,361,801
-
-
3,348,716
3,450,625
-
-
DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,696,829
3,515,378
-
-
Other debtors
3,043,899
2,318,239
-
-
Prepayments and accrued income
19,490
77,628
-
-
6,760,218
5,911,245
-
-

Included in other debtors is an amount of £2,860,210 (2022 - £2,422,601), in relation to monies due from related companies. The companies are related by a mutual director who has a significant interest in each entity.  At the date of signing these financial statements, substantially all of these debtor balances remain outstanding.  There are no formal agreements in place in respect of these debtor balances and there is no scheduled repayment or interest charged.  The group expects to recover these balances from the future cash flows generated by the related companies. 

 

The mutual director has carefully considered the recoverability of these debtor balances, through his detailed knowledge of the operations of the related party companies, their future strategies and their projected future profitability. The director is confident in the ultimate recoverability of these debtor balances, on the basis that Mr P Winterbotham has pledged via a letter of guarantee dated 30 January 2024, to personally meet any shortfall in the repayment of £2,435,444 of the other debtors balance, should this be required to pay to the creditors of Data Direct Thames Valley Limited, or should the related entities cease to trade.

 

There is a further balance of £160,000 (2022:£ £160,000) in other debtors, loaned with no scheduled repayment or interest charged to a third party. The directors consider this amount to be recoverable, based upon the financial position of the company in question.

DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
471,350
434,986
-
-
Obligations under finance leases
20
14,750
-
-
-
Other borrowings
19
2,804,764
2,872,364
-
-
Trade creditors
3,072,570
3,083,287
-
-
Amounts owed to group undertakings
-
-
3,126,324
3,121,524
Corporation tax payable
130,172
95,146
-
-
Other taxation and social security
652,900
339,484
-
-
Other creditors
750,277
889,617
163,114
163,113
Accruals and deferred income
168,396
213,053
-
-
8,065,179
7,927,937
3,289,438
3,284,637

Trade debtors were assigned to Lloyds TSB Invoice Financing under a discounting arrangement. The facility offers an invoice discounting limit of £3m and charges 1.65% above base rate for balances up to £1m and 1.5% above base rate for balances above £1m. A fixed and floating charge over the undertaking and all property and assets present and future, including goodwill, book debts, uncalled capital, buildings, fixtures, fixed plant and machinery exists in favour of Lloyds TSB Invoice Financing in relation to debts not transferred to that company. At the year end, an amount of £2,804,764 (2022: £2,872,364) was factored.

 

The invoice factoring arrangement is also secured by a personal guarantee provided by the director. This has further been supported by a postponement of the directors' loan account balance, which limits the repayments against the loan period in a given period, and prevents its assignment.

 

A £2 million Coronavirus Business Interruption Loan Scheme loan was taken out on 6 May 2020, the amount is repayable by 66 monthly instalments commencing 12 June 2021, at a rate of 2.85%. The security held by Lloyds PLC, as per note 17 also cover the Coronavirus Business Interruption Loan Scheme loan.

18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
1,911,121
2,397,524
-
-
Obligations under finance leases
20
29,500
-
-
-
1,940,621
2,397,524
-
-
DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
18
Creditors: amounts falling due after more than one year
(Continued)
- 33 -

The Lloyds mortgage loans, are secured by a fixed charge over:

 

In addition, a fixed and floating charge over the undertaking and all property and assets present and future, including freehold and leasehold property, fixed plant and machinery, book debts, goodwill and uncalled capital exists in favour of Lloyds TSB plc in relation to the mortgage loans.

 

The mortgage loan over 11 Ivanhoe Road is subject to interest at a rate of 3.1% per annum, above base and is repayable over a 240 month period, commencing 1 July 2018.

 

An amount of £217,400 is due between 2 and 5 years (2022: £217,400), with £630,142 (2022: £668,363) due in more than 5 years.

 

The mortgage loan over The New Barn is subject to interest at a rate of 3.75% per annum, above base and is repayable over a 180 month period, commencing 10 February 2020.

 

An amount of £68,000 is due between 2 and 5 years (2022: £68,000), with £128,912 (2022: £141,498) due in more than 5 years.

Amounts included above which fall due after five years are as follows:
Payable by instalments
759,054
809,861
-
-
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
2,382,471
2,832,510
-
-
Other loans
2,804,764
2,872,364
-
-
5,187,235
5,704,874
-
-
Payable within one year
3,276,114
3,307,350
-
-
Payable after one year
1,911,121
2,397,524
-
-
DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 34 -
20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
14,750
-
-
-
In two to five years
29,500
-
-
-
44,250
-
-
-

Finance lease payments represent amounts payable by the company for motor vehicles. Agreements include purchase options at the end of the finance period, and no restrictions are placed on the use of the assets. The average lease term is 48 months. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
ACAs
36,023
36,023
The company has no deferred tax assets or liabilities.
There were no deferred tax movements in the year.
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
74,597
72,788

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 35 -
23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
1,000,000
1,000,000
10,000
10,000

Each ordinary share held entitles the bearer to one vote. There are no restrictions on the distribution of dividends and repayment of capital on winding up.

24
Reserves
Profit and loss reserves

This reserve records retained earnings and accumulated losses.

25
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
135,120
129,427
-
-
Between two and five years
116,328
140,634
-
-
251,448
270,061
-
-
26
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Entities over which the group has control, joint control or significant influence
284,880
493,868
135,781
152,776
DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
26
Related party transactions
(Continued)
- 36 -

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Entities over which the group has control, joint control or significant influence
147,957
214,413

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities over which the group has control, joint control or significant influence
2,712,253
1,796,541
Other related parties
7,047
10,937

As per note 18, a director's loan is pledged against the invoice factoring facility. At the start of the year the balance owed to the director was £626,060. During the year the director withdrew £212,334 (2022: £427,176) and made repayments of £nil (2022: £nil). At the balance sheet date the company owed the director £413,726.

27
Controlling party

The ultimate controlling party is Mr P. Winterbotham by virtue of his majority shareholding.

DATA DIRECT HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 37 -
28
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
398,948
2,534
Adjustments for:
Taxation charged
20,669
109,779
Finance costs
142,561
86,127
Investment income
(182)
-
Amortisation and impairment of intangible assets
191,635
191,635
Depreciation and impairment of tangible fixed assets
152,358
139,702
Movements in working capital:
Decrease/(increase) in stocks
101,909
(352,883)
Increase in debtors
(848,973)
(1,614,146)
Increase in creditors
118,702
1,147,179
Cash generated from/(absorbed by) operations
277,627
(290,073)
29
Analysis of changes in net debt - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
726,982
(400,745)
326,237
Borrowings excluding overdrafts
(5,704,874)
517,639
(5,187,235)
Obligations under finance leases
-
(44,250)
(44,250)
(4,977,892)
72,644
(4,905,248)
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