Caseware UK (AP4) 2022.0.179 2022.0.179 2023-03-312023-03-312022-04-01falsefalseFloor and Wall covering2122false 05174008 2022-04-01 2023-03-31 05174008 2021-04-01 2022-03-31 05174008 2023-03-31 05174008 2022-03-31 05174008 2021-04-01 05174008 1 2022-04-01 2023-03-31 05174008 1 2021-04-01 2022-03-31 05174008 5 2022-04-01 2023-03-31 05174008 5 2021-04-01 2022-03-31 05174008 d:Director1 2022-04-01 2023-03-31 05174008 d:Director2 2022-04-01 2023-03-31 05174008 d:Director4 2022-04-01 2023-03-31 05174008 d:Director5 2022-04-01 2023-03-31 05174008 d:Director5 2023-03-31 05174008 d:RegisteredOffice 2022-04-01 2023-03-31 05174008 e:Buildings 2022-04-01 2023-03-31 05174008 e:Buildings 2023-03-31 05174008 e:Buildings 2022-03-31 05174008 e:Buildings e:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 05174008 e:PlantMachinery 2022-04-01 2023-03-31 05174008 e:PlantMachinery 2023-03-31 05174008 e:PlantMachinery 2022-03-31 05174008 e:PlantMachinery e:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 05174008 e:FurnitureFittings 2022-04-01 2023-03-31 05174008 e:FurnitureFittings 2023-03-31 05174008 e:FurnitureFittings 2022-03-31 05174008 e:FurnitureFittings e:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 05174008 e:OfficeEquipment 2022-04-01 2023-03-31 05174008 e:OfficeEquipment 2023-03-31 05174008 e:OfficeEquipment 2022-03-31 05174008 e:OfficeEquipment e:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 05174008 e:OwnedOrFreeholdAssets 2022-04-01 2023-03-31 05174008 e:CurrentFinancialInstruments 2023-03-31 05174008 e:CurrentFinancialInstruments 2022-03-31 05174008 e:Non-currentFinancialInstruments 2023-03-31 05174008 e:Non-currentFinancialInstruments 2022-03-31 05174008 e:CurrentFinancialInstruments e:WithinOneYear 2023-03-31 05174008 e:CurrentFinancialInstruments e:WithinOneYear 2022-03-31 05174008 e:Non-currentFinancialInstruments e:AfterOneYear 2023-03-31 05174008 e:Non-currentFinancialInstruments e:AfterOneYear 2022-03-31 05174008 e:ReportableOperatingSegment1 2022-04-01 2023-03-31 05174008 e:ReportableOperatingSegment1 2021-04-01 2022-03-31 05174008 e:UKTax 2022-04-01 2023-03-31 05174008 e:UKTax 2021-04-01 2022-03-31 05174008 e:ShareCapital 2022-04-01 2023-03-31 05174008 e:ShareCapital 2023-03-31 05174008 e:ShareCapital 2021-04-01 2022-03-31 05174008 e:ShareCapital 2022-03-31 05174008 e:ShareCapital 2021-04-01 05174008 e:CapitalRedemptionReserve 2022-04-01 2023-03-31 05174008 e:CapitalRedemptionReserve 2023-03-31 05174008 e:CapitalRedemptionReserve 2021-04-01 2022-03-31 05174008 e:CapitalRedemptionReserve 2022-03-31 05174008 e:CapitalRedemptionReserve 2021-04-01 05174008 e:RetainedEarningsAccumulatedLosses 2022-04-01 2023-03-31 05174008 e:RetainedEarningsAccumulatedLosses 2023-03-31 05174008 e:RetainedEarningsAccumulatedLosses 2021-04-01 2022-03-31 05174008 e:RetainedEarningsAccumulatedLosses 2022-03-31 05174008 e:RetainedEarningsAccumulatedLosses 2021-04-01 05174008 e:AcceleratedTaxDepreciationDeferredTax 2023-03-31 05174008 e:AcceleratedTaxDepreciationDeferredTax 2022-03-31 05174008 d:OrdinaryShareClass1 2022-04-01 2023-03-31 05174008 d:OrdinaryShareClass1 2023-03-31 05174008 d:OrdinaryShareClass1 2022-03-31 05174008 d:FRS102 2022-04-01 2023-03-31 05174008 d:Audited 2022-04-01 2023-03-31 05174008 d:FullAccounts 2022-04-01 2023-03-31 05174008 d:PrivateLimitedCompanyLtd 2022-04-01 2023-03-31 05174008 e:Subsidiary1 2022-04-01 2023-03-31 05174008 e:Subsidiary1 1 2022-04-01 2023-03-31 05174008 e:WithinOneYear 2023-03-31 05174008 e:WithinOneYear 2022-03-31 05174008 e:BetweenOneFiveYears 2023-03-31 05174008 e:BetweenOneFiveYears 2022-03-31 05174008 2 2022-04-01 2023-03-31 05174008 6 2022-04-01 2023-03-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 05174008









DMC CONTRACTS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
DMC CONTRACTS LIMITED
 
 
COMPANY INFORMATION


Directors
D A McCartney 
L Bird 
E C McCann 
R J Steele (appointed 8 October 2022)




Registered number
05174008



Registered office
Unit 6 The Capstan Centre
Thurrock Park Way

Tilbury

Essex

RM18 7HH




Independent auditors
Haslers
Chartered Accountants & Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL





 
DMC CONTRACTS LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3
Directors' Responsibilities Statement
 
4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Statement of Cash Flows
 
12
Analysis of Net Debt
 
13
Notes to the Financial Statements
 
14 - 26


 
DMC CONTRACTS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Introduction
 
In the year 2022 -2023 DMC has continued to strengthen its business in both the Commercial and Infrastructure Marketplaces. The company has secured great projects with High Profile main contractors such as Whitehall with Tilbury Douglas, Ashridge House with Knight Harwood, Old Street Station urban realm works with Morgan Sindall, Gatwick Station with Costain and Glasgow’s Anderston with Bam Nuttall.
One of the board’s key objectives is to continue to maintain and grow our relationships with our valued clients, this is being achieved and has seen us continue to secure repeat business, with Tilbury Douglas, Volker Fitzpatrick, Knight Harwood and Morgan Sindall giving us more opportunities to tender and secure works. 
Furthermore, with the positive marketing strategy of our other offerings we are seeing more opportunities to tender and secure contracts for screeding, Soft-Flooring, Resin flooring along with Solid wood flooring.

Business review
 
We completed the Bond Street Crossrail project and have continued to push on in the infrastructure market, securing works for the coming year in Brent Cross, Birmingham and Belfast. We are continuing to make ourselves available to our Tier 1 contractors to give early, solid design and construction advice on schemes such as Belfast International, Old Oak Common and Curzon Street. DMC’s positive, “can do” attitude allowed us to work closely with Murphy’s, across the Christmas break, to start and complete on time the patch repairs of Liverpool Street Station platforms by working both day and night shifts On Commercial Projects by completing quality installations we have established a great relationship with Osbornes and are now looking to further expand our portfolio, with them in the Local Authority Housing market along with their established office refurbishment business. In the coming year alongside a number of other projects, we are looking forward to the starting of our works on the iconic “Our Town Hall” project in Manchester with Lendlease and are now looking at further schemes with them in central England including major cities such as Liverpool.
ISO Accreditations were audited and were passed with no issues raised. This reflects the effort put into the business to ensure we have strong policies and procedures. We now have ISO9001, ISO14001 and ISO18001.
We are members of the Constructing Better Health Scheme and are Silver members of Constructionline.
The company are also accredited to Achilles RISQS, Achilles Building Confidence, CIRAS, National Federation of Terrazzo Marble and Mosaics, The Tiling Association, CQMS’ Safety Scheme and Alcumus Safe Contractor.
DMC have received excellent feedback from our clients and continue to deliver top quality projects in a safe manner.

Principal risks and uncertainties
 
People
In 2022- 2023 we have continued to provide face to face feedback to our staff and encouraged them to be involved in feedback to the board. This empowerment, the continued investment in training and generally in our staff along with the clear recognition of their efforts continues to be a key motivation factor for our team.
Growth
The business continues to grow and our increased offering of services, across the sectors maintains our positive position with our clients. DMC’s ability to deliver to the highest standards whilst maintaining the ability to offer the “personal touch”, alongside our professional attitude from early advice, through preconstruction, providing value without design compromise alternatives, to the delivery and positive performance by our teams on site is recognised by our clients and further enhances our entry to market.

Page 1

 
DMC CONTRACTS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Financial key performance indicators
 
The directors consider the key performance indicators for this company to be those that communicate the financial performance and strength of the company as a whole, these being turnover, gross margin, and operating profit.

Other key performance indicators
 
The directors, further, consider the other key performance indicators for this company to be Accident and Incident Reporting, Non Conformance/Defect Reporting and Site Progress/Outputs.


This report was approved by the board on 29 March 2024 and signed on its behalf.



D A McCartney 
Director

Page 2

 
DMC CONTRACTS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Results and dividends

The profit for the year, after taxation, amounted to £1,162,433 (2022 - £1,080,207).

Dividends paid in the year amounts to £Nil (2022: £Nil) 

Directors

The directors who served during the year were:

D A McCartney 
L Bird 
E C McCann 
R J Steele (appointed 8 October 2022)

Future developments

DMC Contracts Limited has seen continued growth in turnover, with conservative projections for future turnover, primarily based on secured work.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsHaslerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 29 March 2024 and signed on its behalf.
 





D A McCartney
Director

Page 3

 
DMC CONTRACTS LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

The directors are responsible for preparing the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Company's financial statements 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 4

 
DMC CONTRACTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DMC CONTRACTS LIMITED
 

Opinion


We have audited the financial statements of DMC Contracts Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 March 2023 and of its 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
DMC CONTRACTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DMC CONTRACTS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
DMC CONTRACTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DMC CONTRACTS LIMITED (CONTINUED)


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 an Auditors' 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:
Based on our understanding of the legal and regulatory frameworks that are applicable to the entity we have considered those that have a direct and indirect material impact on the financial statements and operations of the company. These include but are not limited to the Companies Act 2006, GDPR, Employment and Health & Safety legislation and tax legislation. 
 
We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making inquiries to the management. We corroborated our inquiries through our review of documentation generated and assessing the extent of compliance with the relevant laws and regulations. 
We discussed among the audit engagement team regarding the opportunities and incentives, including management override of controls, that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for material misstatements due to fraud  are in the following areas, and our specific procedures performed to address these are described below:
The risk of management override of controls is the area where the financial statements were most susceptible to material misstatement due to fraud. In addition, the key principal risks related to the existence of inappropriate journal entries to impact the profit for the year and management bias in accounting estimates. 
Procedures performed to address these were as follows: 
• Identifying and assessing the design effectiveness of controls management has in place to prevent and   detect fraud,
• Understanding how those charged with governance considered and addressed the potential for override   of controls or other inappropriate influence over the financial reporting process,
• Challenging assumptions and judgements made by management in its significant accounting estimates:   and, 
• Identifying and testing journal entries, in particular any unusual journal entries posted around the year-   end and journal entries posted by infrequent system users. 


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 Auditors' Report.


Page 7

 
DMC CONTRACTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DMC CONTRACTS LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





Laura Ambrose (Senior Statutory Auditor)
  
for and on behalf of
Haslers
 
Chartered Accountants
Statutory Auditor
  
Old Station Road
Loughton
Essex
IG10 4PL

29 March 2024
Page 8

 
DMC CONTRACTS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
£
£

  

Turnover
 4 
12,322,827
14,391,712

Cost of sales
  
(9,257,312)
(11,316,386)

Gross profit
  
3,065,515
3,075,326

Administrative expenses
  
(1,626,132)
(1,841,853)

Other operating income
 5 
-
1,140

Operating profit
  
1,439,383
1,234,613

Interest receivable and similar income
 9 
10,067
54,149

Profit before tax
  
1,449,450
1,288,762

Tax on profit
 10 
(287,017)
(208,555)

Profit for the financial year
  
1,162,433
1,080,207

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 14 to 26 form part of these financial statements.

Page 9

 
DMC CONTRACTS LIMITED
REGISTERED NUMBER: 05174008

BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
222,612
253,109

Investments
 12 
1
1

  
222,613
253,110

Current assets
  

Stocks
 13 
14,592
48,885

Debtors: amounts falling due within one year
 14 
3,344,598
4,540,256

Cash at bank and in hand
 15 
1,952,059
637,285

  
5,311,249
5,226,426

Creditors: amounts falling due within one year
 16 
(2,521,517)
(2,326,609)

Net current assets
  
 
 
2,789,732
 
 
2,899,817

Total assets less current liabilities
  
3,012,345
3,152,927

Creditors: amounts falling due after more than one year
 17 
(689,315)
(896,815)

Provisions for liabilities
  

Deferred tax
 18 
(5,607)
(1,122)

  
 
 
(5,607)
 
 
(1,122)

Net assets
  
2,317,423
2,254,990


Capital and reserves
  

Called up share capital 
 19 
6
6

Capital redemption reserve
 20 
4
4

Profit and loss account
 20 
2,317,413
2,254,980

  
2,317,423
2,254,990


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 March 2024.




D A McCartney
Director

The notes on pages 14 to 26 form part of these financial statements.

Page 10

 
DMC CONTRACTS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 April 2022
6
4
2,254,980
2,254,990


Comprehensive income for the year

Profit for the year
-
-
1,162,433
1,162,433
Total comprehensive income for the year
-
-
1,162,433
1,162,433


Contributions by and distributions to owners

Capital contribution
-
-
(1,100,000)
(1,100,000)


Total transactions with owners
-
-
(1,100,000)
(1,100,000)


At 31 March 2023
6
4
2,317,413
2,317,423


The notes on pages 14 to 26 form part of these financial statements.


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£

At 1 April 2021
6
4
9,189,673
9,189,683


Comprehensive income for the year

Profit for the year
-
-
1,080,207
1,080,207
Total comprehensive income for the year
-
-
1,080,207
1,080,207


Contributions by and distributions to owners

Capital contribution
-
-
(8,014,900)
(8,014,900)


Total transactions with owners
-
-
(8,014,900)
(8,014,900)


At 31 March 2022
6
4
2,254,980
2,254,990


The notes on pages 14 to 26 form part of these financial statements.

Page 11

 
DMC CONTRACTS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
1,162,433
1,080,207

Adjustments for:

Depreciation of tangible assets
32,847
11,957

Government grants
-
(1,140)

Interest received
(10,067)
(54,149)

Taxation charge
287,017
208,555

Decrease in stocks
34,293
78,391

Decrease in debtors
1,195,658
8,956,735

Increase/(decrease) in creditors
96,463
(1,228,637)

Corporation tax (paid)
(391,587)
(417,407)

Net cash generated from operating activities

2,407,057
8,634,512


Cash flows from investing activities

Purchase of tangible fixed assets
(2,350)
(226,078)

Government grants received
-
1,140

Interest received
10,067
54,149

Net cash from investing activities

7,717
(170,789)

Cash flows from financing activities

Capital Contribution
(1,100,000)
(8,014,900)

Net cash used in financing activities
(1,100,000)
(8,014,900)

Net increase in cash and cash equivalents
1,314,774
448,823

Cash and cash equivalents at beginning of year
637,285
188,462

Cash and cash equivalents at the end of year
1,952,059
637,285


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,952,059
637,285

1,952,059
637,285


The notes on pages 14 to 26 form part of these financial statements.

Page 12

 
DMC CONTRACTS LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2023




At 1 April 2022
Cash flows
At 31 March 2023
£

£

£

Cash at bank and in hand

637,285

1,314,774

1,952,059


637,285
1,314,774
1,952,059

The notes on pages 14 to 26 form part of these financial statements.

Page 13

 
DMC CONTRACTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

DMC Contracts Limited is a private company, limited by shares, domiciled in England and Wales, registration number 05174008. The registered office is Unit 6 The Capstan Centre, Thurrock Park Way, Tilbury, Essex, RM18 7HH. The nature of the company's operations and principal activities are the provision and installation of specialist floor tiling.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

For contracts in progress at the year end, the value of the work carried out is based on amounts certified by third parties relevant to the state of completion of each contract.

 
2.3

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 14

 
DMC CONTRACTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.6

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 15

 
DMC CONTRACTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.7
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using both straight-line method & reducing balance method.

Depreciation is provided on the following basis:

Improvements to property
-
10%
Straight line
Plant and machinery
-
25%
Reducing balance
Fixtures and fittings
-
25%
Reducing balance
Office equipment
-
25%
Reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.8

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

Page 16

 
DMC CONTRACTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.13

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.14

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.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged
Page 17

 
DMC CONTRACTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.14
Financial instruments (continued)

or cancelled.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In applying the Company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.
The directors do not believe that there have been judgements (apart from those involving estimates) made in the process of applying the above accounting policies that have had a significant effect on amounts recognised in the financial statements
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
The company uses the percentage of completion method to recognise revenue for long term contracts. This method requires the directors to estimate the level of services performed at each reporting date as a proportion of the total services to be performed to complete the contract. Variations to estimates could result in the over or under recognition of revenue.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Sales
12,322,827
14,391,712

12,322,827
14,391,712


All turnover arose within the United Kingdom.

Page 18

 
DMC CONTRACTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

5.


Other operating income

2023
2022
£
£

Government grants receivable
-
1,140

-
1,140



6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
14,950
13,000


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
1,254,162
1,242,126

Social security costs
150,293
143,702

Cost of defined contribution scheme
20,267
22,868

1,424,722
1,408,696


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Sales and administration
21
22

Page 19

 
DMC CONTRACTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
392,805
356,836

Company contributions to defined contribution pension schemes
7,298
4,623

400,103
361,459


During the year retirement benefits were accruing to 4 directors (2022 - 4) in respect of defined contribution pension schemes.


9.


Interest receivable

2023
2022
£
£


Other interest receivable
10,067
54,149

10,067
54,149


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
282,531
247,649

Adjustments in respect of previous periods
-
(39,094)


282,531
208,555


Total current tax
282,531
208,555

Deferred tax


Origination and reversal of timing differences
4,486
-

Total deferred tax
4,486
-


Tax on profit
287,017
208,555
Page 20

 
DMC CONTRACTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2022 - the same as) the standard rate of corporation tax in the UK of 19% (2022 - 19   %) as set out below:

2023
2022
£
£


Profit on ordinary activities before tax
1,445,300
1,288,762


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19   %)
274,607
244,865

Effects of:


Adjustments to tax charge in respect of prior periods
-
(39,094)

Other timing differences leading to an increase (decrease) in taxation
12,410
2,784

Total tax charge for the year
287,017
208,555


Factors that may affect future tax charges

During March 2021 the UK chancellor announced an expected change to the UK’s main  corporation tax rates from 19% to 25% which was subsequently enacted into the Finance Act in June 2021. The main rate will increase to 25% from 1 April 2023 and will impact the corporation tax provision of the Company from that date.

Page 21

 
DMC CONTRACTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

11.


Tangible fixed assets





Freehold property
Plant and machinery
Fixtures and fittings
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 April 2022
327,410
10,875
23,410
57,400
419,095


Additions
-
2,350
-
-
2,350



At 31 March 2023

327,410
13,225
23,410
57,400
421,445



Depreciation


At 1 April 2022
78,114
9,975
23,039
54,858
165,986


Charge for the year on owned assets
31,306
813
92
636
32,847



At 31 March 2023

109,420
10,788
23,131
55,494
198,833



Net book value



At 31 March 2023
217,990
2,437
279
1,906
222,612



At 31 March 2022
249,296
900
371
2,542
253,109


12.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2022
1



At 31 March 2023
1




Page 22

 
DMC CONTRACTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

13.


Stocks

2023
2022
£
£

Raw materials and consumables
14,592
48,885

14,592
48,885



14.


Debtors

2023
2022
£
£


Trade debtors
910,034
1,151,321

Other debtors
1,093,515
1,074,165

Prepayments and accrued income
61,744
30,643

Amounts recoverable on long-term contracts
1,279,305
2,284,127

3,344,598
4,540,256



15.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,952,059
637,285

1,952,059
637,285


Page 23

 
DMC CONTRACTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

16.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
722,277
919,542

Corporation tax
367,666
476,722

Other taxation and social security
81,691
80,289

Other creditors
1,311,711
819,597

Accruals and deferred income
38,172
30,459

2,521,517
2,326,609


There is an unlimited related company cross guarantee in place in respect of DMC Flooring Specialists Limited (formerly DMC TIling Limited) and DMC Rail Limited with Natwest bank.


17.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Other creditors
689,315
896,815

689,315
896,815


Page 24

 
DMC CONTRACTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

18.


Deferred taxation




2023


£






At beginning of year
(1,122)


Charged to profit or loss
(4,485)



At end of year
(5,607)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(5,607)
(1,122)

(5,607)
(1,122)


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



59 (2022 - 59) Ordinary Shares shares of £0.10 each
6
6



20.


Reserves

Capital redemption reserve

The capital redemption reserve represents the cumulative par value of shares which have been cancelled by the company.

Profit and loss account

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


21.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £20,267  (2022: £10,551). At 31 March 2023, the balance owing to the pension scheme was £Nil (2022: £Nil).

Page 25

 
DMC CONTRACTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

22.


Commitments under operating leases

At 31 March 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
122,930
65,640

Later than 1 year and not later than 5 years
114,580
65,640

237,510
131,280


23.


Related party transactions

During the year transactions with the following related parties occured: 
The total remuneration paid to key management personnel is £400,983 (2022: £361,459).
Interest has been charged on the loans that were overdrawn in the period. 
Balances at the year end have been shown below. 


2023
2022
£
£

Key management personnel
(416,220)
650,405
Entities under common control
124,596
20,178
(291,624)
670,583


24.


Controlling party

DMC Contracts Trustees Employee Ownership Trust ("the Trust") became the beneficial owner of the company during the prior year.


25.



Subsidiary undertaking



Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Class of shares

Holding

Kengate Terrazo
Ordinary
50%

 
Page 26