Company registration number 08671896 (England and Wales)
DUNTOWER CORPORATION LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
PAGES FOR FILING WITH REGISTRAR
DUNTOWER CORPORATION LIMITED
CONTENTS
Page
Strategic report
1 - 2
Balance sheet
3
Statement of changes in equity
4
Notes to the financial statements
5 - 9
DUNTOWER CORPORATION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 1 -

The directors present the strategic report for the year ended 30 September 2022.

Fair review of the business

The principal activity of the company is to trade in frozen fish, dairy products (pork and beef) and poultry.

 

The activity is conducted outside United Kingdom, principally in West Africa with frozen fish sales.

 

The results of the company for the year, as set out on page 8 - 11, show a profit on ordinary activities before tax of USD 505,232. The shareholders funds total USD 2,830,497.

 

The company continues the need to diversify its product offering and to re- position its market penetration in key segments of the business. The company’s Directors are of the opinion that the company will be in a strong position to make significant improvements in levels of new business in the medium to long term.

 

Business Environment

 

West Africa consumes whole fish without any rework. In this scenario, Mauritania and Morocco are very competitive, with frozen mackerel on board, a less expensive fish and very popular in Nigeria and other markets of South America (Chile, Uruguay and Argentina).

 

China is another strong competitor being the biggest supplier of growing fish as Tilapia.

 

It is essential to be informed of this situation not only not to lose our position as a provider of frozen fish in West Africa but also to conquer and become competitive in other markets and products.

Principal risks and uncertainties

The company continues to monitor and improve risk management strategy.

The Directors trust in their abilities to keep close to the drivers and trends which underlie demand throughout the business and ensure communication is efficient and effective in order to respond to those trends.

The company's principal financial structure comprises of: bank balances, bank overdrafts, trade creditors and trade debtors and loans agreements. The main purpose of these instruments is to raise funds and working capital for the company’s operations.

Due to the nature of the financial instruments used by the company there is little exposure to credit and price risk. The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments as and when they fall due.

Strategy and Future Developments

With the strategic review also in place, the focus will be to develop business growth with both: existing and new clients and seek out new opportunities in new market segments to gain position in our market sector.

Development and performance

The company continues to identify the need to diversify its product offering and to re- position its market penetration in key segments of the business. In the view of the Directors the company will be in a strong position to make significant improvements in levels of new business in the medium to long term.

DUNTOWER CORPORATION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 2 -
Key performance indicators

This is the company's seventh year of trading. The company operates within a relatively straight-forward trading model as mentioned in the principal activity within the director's report. Therefore, any KPI's are not considered necessary to disclose in order to obtain an understanding of the business.

On behalf of the board

Mr Carlos Cavallo
Director
22 December 2023
DUNTOWER CORPORATION LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2022
30 September 2022
- 3 -
2022
2021
Notes
$
$
$
$
Current assets
Stocks
406,000
-
Debtors
5
6,049,106
4,304,940
Cash at bank and in hand
834,159
1,415,628
7,289,265
5,720,568
Creditors: amounts falling due within one year
6
(4,458,768)
(3,299,309)
Net current assets
2,830,497
2,421,259
Capital and reserves
Called up share capital
16
16
Profit and loss reserves
2,830,481
2,421,243
Total equity
2,830,497
2,421,259

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered 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 22 December 2023 and are signed on its behalf by:
Mr Carlos  Cavallo
Mr Jorge Cavallo
Director
Director
Company registration number 08671896 (England and Wales)
DUNTOWER CORPORATION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 4 -
Share capital
Profit and loss reserves
Total
Notes
$
$
$
Balance at 1 October 2020
16
2,386,678
2,386,694
Year ended 30 September 2021:
Profit  for the year as restated
-
278,670
278,670
Dividends
-
(244,105)
(244,105)
Balance at 30 September 2021
16
2,421,243
2,421,259
Year ended 30 September 2022:
Profit  for the year
-
409,238
409,238
Balance at 30 September 2022
16
2,830,481
2,830,497
DUNTOWER CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 5 -
1
Accounting policies
Company information

Duntower Corporation Limited is a private company limited by shares incorporated in England and Wales. The registered office is Universal House, 88-94 Wentworth Street, London, E1 7SA.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in US $, 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 under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Turnover

Sales are recognised when the goods are delivered, which is taken to be when the customer has accepted the goods and the related risks and rewards of ownership.

1.3
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.4
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.

1.5
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

DUNTOWER CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 6 -
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.

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

1.6
Equity instruments

Equity instruments issued by the company 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 company.

1.7
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

DUNTOWER CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 7 -
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 when the company has 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.

 

 

1.8
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.

1.9
Leases

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 leases asset are consumed.

1.10
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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are 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.

DUNTOWER CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 8 -
3
Employees

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

2022
2021
Number
Number
Total
1
1
4
Directors' remuneration and dividends
2022
2021
$
$
Dividends paid to directors
-
244,105
5
Debtors
2022
2021
Amounts falling due within one year:
$
$
Trade debtors
6,049,106
4,304,940
6
Creditors: amounts falling due within one year
2022
2021
$
$
Trade creditors
3,845,085
3,179,907
Corporation tax
71,282
65,367
Other taxation and social security
297
256
Other creditors
542,104
53,779
4,458,768
3,299,309
7
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Malcolm Kauder
Statutory Auditor:
PMK & Associates LLP
DUNTOWER CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2022
- 9 -
8
Operating lease commitments
Lessee

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

2022
2021
$
$
-
0
15,828
9
Related party transactions

During the year, the company paid $128,000 (2021: $92,000) to Ragasan, a company owned by the family of the director in respect of daily administration work.

 

10
Events after the reporting date

In July 2023 the company paid a dividend of $2,884,750 to it's shareholders, the shareholders have started repaying this back as a capital loan.

11
Directors' transactions

Included under other creditors is an amount of $22,564 (2021 : $ 22,654) due to the directors.

 

Mr J Cavallo and Mr C Cavallo are both directors of the company.

Description
% Rate
Opening balance
Closing balance
$
$
Mr Carlos  Cavallo -
-
(106)
(106)
Mr Jorge Cavallo -
-
(22,548)
(22,548)
(22,654)
(22,654)
12
Ultimate controlling party

The ultimate controlling parties are Mr C Cavallo and Mr J Cavallo by virtue of their shareholding in the company.

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