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REGISTERED NUMBER: 10599949 (England and Wales)














Dipwood Holdings Limited

Group Strategic Report, Directors' Report and

Consolidated Financial Statements

for the Year Ended 31 December 2023






Dipwood Holdings Limited (Registered number: 10599949)

Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2023










Page

Company information 1

Group strategic report 2

Directors' report 4

Report of the independent auditors 6

Consolidated statement of comprehensive income 10

Consolidated statement of financial position 11

Company statement of financial position 12

Consolidated statement of changes in equity 13

Company statement of changes in equity 14

Consolidated statement of cash flows 15

Notes to the consolidated statement of cash flows 16

Notes to the consolidated financial statements 17


Dipwood Holdings Limited

Company Information
for the Year Ended 31 December 2023







Directors: R A Gray
Mrs B Gray





Registered office: Unit 2
Leadgate Industrial Estate
Lope Hill Road
Consett
DH8 7RN





Registered number: 10599949 (England and Wales)





Auditors: Moore Thompson
Bank House
Broad Street
Spalding
Lincolnshire
PE11 1TB

Dipwood Holdings Limited (Registered number: 10599949)

Group Strategic Report
for the Year Ended 31 December 2023


The directors present their strategic report of the company and the group for the year ended 31 December 2023.

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

Review of business
The group's activities are organised in the following divisions:-
Processed pork
Dicing
Goose fat
Meat shop

As usual the price of meat fluctuated throughout the financial year due to market conditions including the
change in farming costs and other demand for meat from the market. Unfortunately, this has affected our gross profit margin in the period but we have since reacted to this in the current period and due to efficient buying and stockholding, the margin has returned to normal levels. We have also continued to explore the development of other value added products.

Principal risks and uncertainties
As for many businesses of our size, the economic climate in which we are operating will have some effect on
the company's operations for the forthcoming period. However we are closely monitoring purchasing and
selling prices because we operate in a small margin business and this control remains key to the
management of our overhead costs and the overall success of the business.

The uncertainties over energy prices and raw material price fluctuations are risks to the group and are outside of our control. However the group has introduced measures and policies to mitigate these risks as much as it
can.

Development and performance
The group ended the financial year in a profitable position and was in line with expectations.

The group is looking to continue its excellent service to existing customers and also increase its customer base by supplying further added value products, by carrying out Research and Development projects and expanding into niche markets.


Dipwood Holdings Limited (Registered number: 10599949)

Group Strategic Report
for the Year Ended 31 December 2023

Financial key performance indicators
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the group as a whole, these being turnover, gross margin and return on capital employed.

The gross profit margin for the year was 4.9% (2022: 9.5%) and return on capital employed was 11.96% (2022: 25.15%). Return on capital employed is calculated as profit before interest and tax divided by capital employed, which constitutes fixed assets, less investments, plus working capital.

On behalf of the board:





Director


19 March 2024

Dipwood Holdings Limited (Registered number: 10599949)

Directors' Report
for the Year Ended 31 December 2023


The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

Dividends
During the year dividends were paid amounting to £2,328,800 (2022 - £321,950)

Future developments
The group is continuing to focus on its different activities to maintain the excellent service provided to customers and assist in supplying further added value products and expansion into niche markets.

Directors
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

R A Gray
Mrs B Gray

Disclosure in the strategic report
The directors, in accordance with section 414c (11) of the Companies Act 2006 Regulations 2013, have prepared the group's strategic report as required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 as per page 1.

Statement of directors' responsibilities
The directors are responsible for preparing the Group strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including 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 the group and of the profit or loss of the group 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;
- 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Dipwood Holdings Limited (Registered number: 10599949)

Directors' Report
for the Year Ended 31 December 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

On behalf of the board:





R A Gray - Director


19 March 2024

Report of the Independent Auditors to the Members of
Dipwood Holdings Limited


Opinion
We have audited the financial statements of Dipwood Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated statement of comprehensive income, Consolidated statement of financial position, Company statement of financial position, Consolidated statement of changes in equity, Company statement of changes in equity, Consolidated statement of cash flows and Notes to the consolidated statement of cash flows, Notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the 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 Group strategic report and the Directors' report, 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.

Report of the Independent Auditors to the Members of
Dipwood Holdings Limited


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of 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 four, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Dipwood Holdings Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the computer component manufacturing and supply sector;

- 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 group, including Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

Report of the Independent Auditors to the Members of
Dipwood Holdings Limited

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

- investigated the rationale behind significant or unusual transactions;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims;

- reviewing correspondence with HMRC and the group's legal advisors;

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

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.




Matt Storey FCCA ACA BFP (Senior Statutory Auditor)
for and on behalf of Moore Thompson
Bank House
Broad Street
Spalding
Lincolnshire
PE11 1TB

19 March 2024

Dipwood Holdings Limited (Registered number: 10599949)

Consolidated Statement of Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

Turnover 4 70,607,500 61,728,492

Cost of sales 67,140,123 55,888,355
Gross profit 3,467,377 5,840,137

Administrative expenses 2,011,265 2,269,209
1,456,112 3,570,928

Other operating income 182,070 209,530
Operating profit 6 1,638,182 3,780,458

Interest receivable and similar income 35,164 3,197
1,673,346 3,783,655

Interest payable and similar expenses 7 6 7
Profit before taxation 1,673,340 3,783,648

Tax on profit 8 367,271 712,731
Profit for the financial year 1,306,069 3,070,917

Other comprehensive income - -
Total comprehensive income for the
year

1,306,069

3,070,917

Profit attributable to:
Owners of the parent 1,008,069 2,822,917
Non-controlling interests 298,000 248,000
1,306,069 3,070,917

Total comprehensive income attributable to:
Owners of the parent 1,306,069 3,070,917

Dipwood Holdings Limited (Registered number: 10599949)

Consolidated Statement of Financial Position
31 December 2023

2023 2022
Notes £    £    £    £   
Fixed assets
Intangible assets 11 - -
Tangible assets 12 4,364,875 3,821,498
Investments 13 1,280,830 1,280,830
5,645,705 5,102,328

Current assets
Stocks 14 1,163,786 891,303
Debtors 15 5,784,150 4,000,502
Cash at bank and in hand 6,346,352 10,348,824
13,294,288 15,240,629
Creditors
Amounts falling due within one year 16 5,239,796 5,310,977
Net current assets 8,054,492 9,929,652
Total assets less current liabilities 13,700,197 15,031,980

Provisions for liabilities 19 157,319 169,371
Net assets 13,542,878 14,862,609

Capital and reserves
Called up share capital 20 6,000 5,000
Retained earnings 21 13,536,278 14,857,009
Shareholders' funds 13,542,278 14,862,009

Non-controlling interests 600 600
Total equity 13,542,878 14,862,609

The financial statements were approved by the Board of Directors and authorised for issue on 19 March 2024 and were signed on its behalf by:





R A Gray - Director


Dipwood Holdings Limited (Registered number: 10599949)

Company Statement of Financial Position
31 December 2023

2023 2022
Notes £    £    £    £   
Fixed assets
Intangible assets 11 - -
Tangible assets 12 4,079,086 3,335,014
Investments 13 1,319,031 1,318,831
5,398,117 4,653,845

Current assets
Debtors 15 2,245,108 298,185
Cash at bank 553,308 5,450,046
2,798,416 5,748,231
Creditors
Amounts falling due within one year 16 458,558 961,738
Net current assets 2,339,858 4,786,493
Total assets less current liabilities 7,737,975 9,440,338

Provisions for liabilities 19 29,990 20,658
Net assets 7,707,985 9,419,680

Capital and reserves
Called up share capital 20 6,000 5,000
Retained earnings 7,701,985 9,414,680
Shareholders' funds 7,707,985 9,419,680

Company's profit for the financial year 616,105 2,460,152

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 19 March 2024 and were signed on its behalf by:





R A Gray - Director


Dipwood Holdings Limited (Registered number: 10599949)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Non-controlling Total
capital earnings Total interests equity
£    £    £    £    £   
Balance at 1 January 2022 5,000 12,356,042 12,361,042 600 12,361,642

Changes in equity
Dividends - (321,950 ) (321,950 ) - (321,950 )
Total comprehensive income - 2,822,917 2,822,917 - 2,822,917
Balance at 31 December 2022 5,000 14,857,009 14,862,009 600 14,862,609

Changes in equity
Issue of share capital 1,000 - 1,000 - 1,000
Dividends - (2,328,800 ) (2,328,800 ) - (2,328,800 )
Total comprehensive income - 1,008,069 1,008,069 - 1,008,069
Balance at 31 December 2023 6,000 13,536,278 13,542,278 600 13,542,878

Dipwood Holdings Limited (Registered number: 10599949)

Company Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 5,000 7,276,478 7,281,478

Changes in equity
Dividends - (321,950 ) (321,950 )
Total comprehensive income - 2,460,152 2,460,152
Balance at 31 December 2022 5,000 9,414,680 9,419,680

Changes in equity
Issue of share capital 1,000 - 1,000
Dividends - (2,328,800 ) (2,328,800 )
Total comprehensive income - 616,105 616,105
Balance at 31 December 2023 6,000 7,701,985 7,707,985

Dipwood Holdings Limited (Registered number: 10599949)

Consolidated Statement of Cash Flows
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (198,665 ) 4,300,364
Interest paid (6 ) (7 )
Tax paid (566,113 ) (781,765 )
Net cash from operating activities (764,784 ) 3,518,592

Cash flows from investing activities
Purchase of tangible fixed assets (840,210 ) (1,184,818 )
Sale of tangible fixed assets - 2,000
Interest received 35,164 3,197
Net cash from investing activities (805,046 ) (1,179,621 )

Cash flows from financing activities
Amount introduced by directors 313,372 21,001
Amount withdrawn by directors (120,214 ) (63,263 )
Share issue 1,000 -
Equity dividends paid (2,328,800 ) (321,950 )
Dividends paid to minority interests (298,000 ) (248,000 )
Net cash from financing activities (2,432,642 ) (612,212 )

(Decrease)/increase in cash and cash equivalents (4,002,472 ) 1,726,759
Cash and cash equivalents at
beginning of year

2

10,348,824

8,622,065

Cash and cash equivalents at end of
year

2

6,346,352

10,348,824

Dipwood Holdings Limited (Registered number: 10599949)

Notes to the Consolidated Statement of Cash Flows
for the Year Ended 31 December 2023


1. Reconciliation of profit for the financial year to cash generated from operations
2023 2022
£    £   
Profit for the financial year 1,306,069 3,070,917
Depreciation charges 296,833 236,345
Profit on disposal of fixed assets - (113 )
Government grants (2,225 ) (2,225 )
Finance costs 6 7
Finance income (35,164 ) (3,197 )
Taxation 367,271 712,731
1,932,790 4,014,465
(Increase)/decrease in stocks (272,483 ) 126,786
Increase in trade and other debtors (1,783,648 ) (367,141 )
(Decrease)/increase in trade and other creditors (75,324 ) 526,254
Cash generated from operations (198,665 ) 4,300,364

2. Cash and cash equivalents

The amounts disclosed on the Statement of cash flows in respect of cash and cash equivalents are in respect of these Statement of financial position amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 6,346,352 10,348,824
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 10,348,824 8,622,065


3. Analysis of changes in net funds

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 10,348,824 (4,002,472 ) 6,346,352
10,348,824 (4,002,472 ) 6,346,352
Total 10,348,824 (4,002,472 ) 6,346,352

Dipwood Holdings Limited (Registered number: 10599949)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2023


1. Statutory information

Dipwood Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. Accounting policies

Basis of preparing the financial statements
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

Basis of consolidation
The financial statements consolidate the financial statements of Dipwood Holdings Limited and all of its subsidiary undertakings.

The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.

To show a true and fair view, the business combination in 2017 was accounted for using merger accounting, as the incorporation of Dipwood Holdings Limited and its acquisition of Ravendale Foods Limited by way of a share for share exchange was a group reconstruction. Consolidated information for these two companies has therefore been presented as if the new legal structure had always existed.

Non-controlling interests
Minority interests in the net assets of consolidated subsidiaries are identified separately from the Group's equity. Minority interests consist of the amount of those interests at the date of the original business combination and the minority's share of changes in equity since the date of the combination.

The proportions of profit or loss and changes in equity allocated to the owners of the parent and to the minority interests are determined on the basis of existing ownership interests and do not reflect the possible exercise or conversion of options or convertible instruments.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Dipwood Holdings Limited (Registered number: 10599949)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


3. Accounting policies - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Sale of goods

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of one years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated
residual value of each asset over its estimated useful life.

Freehold property-Not depreciated / 5% straight line
Plant and machinery-10% / 20% reducing balance
Fixtures and fittings-20% reducing balance
Motor vehicles-25% reducing balance
Equipment-20% reducing balance
Improvements to property-5% reducing balance

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment an impairment loss is recognised in profit or loss immediately.


Dipwood Holdings Limited (Registered number: 10599949)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


3. Accounting policies - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Operating leases
Operating lease payments are recognised as an expense over the term of the lease on a straight line basis. The aggregate benefit of lease incentives is recognised as a reduction to expenses over the lease term, on a straight line basis.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

4. Turnover

The turnover and profit before taxation are attributable to the one principal activity of the group.

5. Employees and directors
2023 2022
£    £   
Wages and salaries 2,303,590 2,583,348
Social security costs 206,737 235,149
Other pension costs 290,191 281,349
2,800,518 3,099,846

Dipwood Holdings Limited (Registered number: 10599949)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


5. Employees and directors - continued

The average number of employees during the year was as follows:
2023 2022

Production staff 77 96
Administrative staff 11 11
Directors 2 2
90 109

Employee Benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £290,191 (2022: £281,349).

2023 2022
£    £   
Directors' remuneration 18,192 18,066
Directors' pension contributions to money purchase schemes 120,000 80,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

6. Operating profit

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 92,148 87,159
Depreciation - owned assets 296,833 236,344
Profit on disposal of fixed assets - (113 )
Auditors' remuneration 29,600 30,200
Foreign exchange differences 789 (1,132 )

7. Interest payable and similar expenses
2023 2022
£    £   
Bank interest 6 7

Dipwood Holdings Limited (Registered number: 10599949)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


8. Taxation

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 378,894 626,757
Prior year adjustment 429 -
Total current tax 379,323 626,757

Deferred tax (12,052 ) 85,974
Tax on profit 367,271 712,731

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,673,340 3,783,648
Profit multiplied by the standard rate of corporation tax in the UK of
25 % (2022 - 19 %)

418,335

718,893

Effects of:
Expenses not deductible for tax purposes 1,239 1,994
Capital allowances in excess of depreciation (65,775 ) (144,873 )

Deferred tax movement (12,052 ) 85,974
Capital grant amortisation (556 ) (423 )
Tax loss carried forward 49,871 51,166
Change in UK tax rate (23,791 ) -
Total tax charge 367,271 712,731

Deferred tax has been provided at a rate of 25% as this is the rate of tax that is applicable when the timing differences are expected to reverse.

The amount of unused capital losses at 31 December 2023 is £132,187 (2022: £132,187). There is no expiry date on the timing differences or unused losses.

The amount of unused trading losses to carry forward at 31 December 2023 is £468,778 (2022: £269,293). There is no expiry date on the unused losses.

9. Individual statement of comprehensive income

As permitted by Section 408 of the Companies Act 2006, the Income statement of the parent company is not presented as part of these financial statements.


Dipwood Holdings Limited (Registered number: 10599949)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


10. Dividends
2023 2022
£    £   
Ordinary shares of £1 each
Interim 328,800 321,950
Ordinary B shares of £1 each
Interim 2,000,000 -
2,328,800 321,950

11. Intangible fixed assets

Group
Patents
and
Goodwill licences Totals
£    £    £   
Cost
At 1 January 2023
and 31 December 2023 29,941 17,000 46,941
Amortisation
At 1 January 2023
and 31 December 2023 29,941 17,000 46,941
Net book value
At 31 December 2023 - - -
At 31 December 2022 - - -

12. Tangible fixed assets

Group
Improvements
Freehold to Plant and
property property machinery
£    £    £   
Cost
At 1 January 2023 1,899,653 1,420,526 3,114,149
Additions 81,465 - 412,937
At 31 December 2023 1,981,118 1,420,526 3,527,086
Depreciation
At 1 January 2023 225,873 675,316 2,194,604
Charge for year - - 269,394
At 31 December 2023 225,873 675,316 2,463,998
Net book value
At 31 December 2023 1,755,245 745,210 1,063,088
At 31 December 2022 1,673,780 745,210 919,545

Dipwood Holdings Limited (Registered number: 10599949)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


12. Tangible fixed assets - continued

Group

Fixtures
and Motor
fittings vehicles Equipment Totals
£    £    £    £   
Cost
At 1 January 2023 48,004 123,333 373,845 6,979,510
Additions - - 345,808 840,210
At 31 December 2023 48,004 123,333 719,653 7,819,720
Depreciation
At 1 January 2023 26,114 33,430 2,675 3,158,012
Charge for year 4,379 22,476 584 296,833
At 31 December 2023 30,493 55,906 3,259 3,454,845
Net book value
At 31 December 2023 17,511 67,427 716,394 4,364,875
At 31 December 2022 21,890 89,903 371,170 3,821,498

Included in cost of land and buildings is freehold land of £1,385,000 (2022 - £1,385,000) which is not depreciated.

Company
Freehold Plant and
property machinery Equipment Totals
£    £    £    £   
Cost
At 1 January 2023 2,653,830 391,167 368,250 3,413,247
Additions 163,418 371,792 345,808 881,018
At 31 December 2023 2,817,248 762,959 714,058 4,294,265
Depreciation
At 1 January 2023 - 78,233 - 78,233
Charge for year - 136,946 - 136,946
At 31 December 2023 - 215,179 - 215,179
Net book value
At 31 December 2023 2,817,248 547,780 714,058 4,079,086
At 31 December 2022 2,653,830 312,934 368,250 3,335,014

Dipwood Holdings Limited (Registered number: 10599949)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


13. Fixed asset investments

Group
Unlisted
investments
£   
Cost
At 1 January 2023
and 31 December 2023 1,280,830
Net book value
At 31 December 2023 1,280,830
At 31 December 2022 1,280,830
Company
Shares in
group Unlisted
undertakings investments Totals
£    £    £   
Cost
At 1 January 2023 38,001 1,280,830 1,318,831
Additions 200 - 200
At 31 December 2023 38,201 1,280,830 1,319,031
Net book value
At 31 December 2023 38,201 1,280,830 1,319,031
At 31 December 2022 38,001 1,280,830 1,318,831


Dipwood Holdings Limited (Registered number: 10599949)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


13. Fixed asset investments - continued


Included above is an investment in Dipwood Enterprises LLP in which Dipwood Holdings Limited has a profit share of 40% and a capital share of 30%. The address of the LLP is Dipwood House, Dipwood Road, Rowlands Gill, Tyne & Wear, NE39 1DD. At the year ended 31 December 2022, the date of the most recently prepared accounts, the net assets of the LLP amount to £1,280,822 and the profit for the year amounted to £28,861.

Subsidiaries, associates and other investments

Details of the investments in which the group and the parent company have an interest of 20% or more are as follows:




Class of
share
Percentage
of shares
held
Subsidiary undertakings
Ravendale Foods Limited. The registered office is at Unit 2,
Leadgate Industrial Estate, Consett, Durham, DH8 7RN

Ordinary £1

100
Ravendale North West Limited. The registered office is at Unit 5,
Leadgate Industrial Estate, Consett, Durham, DH8 7RN
Ordinary A
£1

100
Just Meats (Northern) Limited. The registered office is at Unit 2,
Leadgate Industrial Estate, Consett, Durham, DH8 7RN

Ordinary £ 1

100
Vegandale Limited. The registered office is at Unit 2, Leadgate
Industrial Estate, Consett, Durham, DH8 7RN

Ordinary £1

100
Dipwood Distribution and Storage Limited. The registered office is at
Unit 2 Leadgate Industrial Estate, Consett, Durham, DH8 7RN

Ordinary £1

100

Just Meats (Northern) Limited, Dipwood Storage and Distribution Limited and Vegandale Limited are exempt from the requirements of the Act relating to the audit of its individual accounts by virtue of S479A of the Companies Act 2006.

14. Stocks

Group
2023 2022
£    £   
Raw materials 154,886 102,656
Finished goods 1,008,900 788,647
1,163,786 891,303

Dipwood Holdings Limited (Registered number: 10599949)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


15. Debtors: amounts falling due within one year

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 3,545,326 3,762,062 - -
Amounts owed by group undertakings - - 106,582 106,728
Other debtors 2,063,356 2,229 2,062,054 -
Directors' current accounts - - - 916
Tax - - - 24,267
VAT 129,959 194,572 61,752 151,554
Prepayments and accrued income 45,509 41,639 14,720 14,720
5,784,150 4,000,502 2,245,108 298,185

16. Creditors: amounts falling due within one year

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade creditors 4,409,944 4,357,922 27,623 103,154
Amounts owed to group undertakings - - 296,816 723,948
Amounts owed to associates 93,395 70,718 93,395 70,718
Tax 68,441 255,231 - -
Social security and other taxes 56,962 66,046 758 758
Other creditors 165,363 224,149 100 53,710
Directors' current accounts 267,836 74,678 31,166 -
Accruals and deferred income 177,855 260,008 8,700 9,450
Deferred government grants - 2,225 - -
5,239,796 5,310,977 458,558 961,738

Amounts owed to related parties and directors are repayable on demand.

Lloyds Bank Plc hold an omnibus guarantee and set off agreement dated 4 January 2018 on Dipwood Holdings Limited and its subsidiary undertakings.

Lloyds Bank Plc also hold :-
a) a Debenture dated December 2017 which contains a fixed charge and floating charges over all property and undertakings of the company, and;
b) a Charge dated October 2018 over freehold land and buildings known as Unit 2, Lope Hill Road, Leadgate Industrial Estate, Consett, DH8 7RN.

17. Leasing agreements

Minimum lease payments fall due as follows:

Dipwood Holdings Limited (Registered number: 10599949)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 25,181 16,952
Between one and five years 83,037 43,680
108,218 60,632

18. Secured debts

Details of security are shown in note 15.

19. Provisions for liabilities

Group Company
2023 2022 2023 2022
£    £    £    £   
Deferred tax 157,319 169,371 29,990 20,658

Group
Deferred
tax
£   
Balance at 1 January 2023 169,371
Provided during year (12,052 )
Balance at 31 December 2023 157,319

Company
Deferred
tax
£   
Balance at 1 January 2023 20,658
Provided during year 9,332
Balance at 31 December 2023 29,990

20. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
5,000 Ordinary £1 5,000 5,000
1,000 Ordinary B £1 1,000 -
6,000 5,000

1,000 Ordinary B shares of £1 each were allotted and fully paid for cash at par during the year.

Dipwood Holdings Limited (Registered number: 10599949)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023


21. Reserves

Group
Retained
earnings
£   

At 1 January 2023 14,857,009
Profit for the year 1,008,069
Dividends (2,328,800 )
At 31 December 2023 13,536,278

The profit and loss account represents cumulative profits and losses net of dividends.

22. Directors' advances, credits and guarantees

The following advances and credits to directors subsisted during the years ended 31 December 2023 and 31 December 2022:

2023 2022
£    £   
R A Gray and Mrs B Gray
Balance outstanding at start of year 916 (11,522 )
Amounts advanced 46,517 91,038
Amounts repaid (78,600 ) (78,600 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year (31,167 ) 916

23. Related party disclosures

Group

Information about related party transactions and outstanding balances with entities over which the group has significant influence or other related parties are as follows:-

Entities over which the group has significant influence:-

2023 2022
£ £
Investment in Dipwood Enterprises LLP 1,280,830 1,155,238

24. Ultimate controlling party

The ultimate controlling party is considered to be the directors who control the ordinary share capital.