Desco (Design & Consultancy) Limited
Financial Statements
For the year ended 31 December 2023
For Filing with Registrar
Company Registration No. 03613462 (England and Wales)
Desco (Design & Consultancy) Limited
Company Information
Directors
N D Crowe
K Hall
L S Roberts
Secretary
L S Roberts
Company number
03613462
Registered office
Azure House 2 Azure Court
Doxford International Business Park
Sunderland
SR3 3BE
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Desco (Design & Consultancy) Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
3 - 10
Desco (Design & Consultancy) Limited
Statement Of Financial Position
As at 31 December 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
61,898
76,494
Current assets
Debtors
6
4,609,208
4,404,911
Cash at bank and in hand
925,247
788,658
5,534,455
5,193,569
Creditors: amounts falling due within one year
7
(1,878,307)
(1,758,593)
Net current assets
3,656,148
3,434,976
Total assets less current liabilities
3,718,046
3,511,470
Provisions for liabilities
8
(107,485)
(115,413)
Net assets
3,610,561
3,396,057
Capital and reserves
Called up share capital
9
14
14
Capital redemption reserve
4
4
Profit and loss reserves
3,610,543
3,396,039
Total equity
3,610,561
3,396,057

The directors of the company have elected not to include a copy of the income statement 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 19 March 2024 and are signed on its behalf by:
L S Roberts
Director
Company Registration No. 03613462
Desco (Design & Consultancy) Limited
Statement of Changes in Equity
For the year ended 31 December 2023
Page 2
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
14
4
3,068,031
3,068,049
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
1,203,008
1,203,008
Dividends
-
-
(875,000)
(875,000)
Balance at 31 December 2022
14
4
3,396,039
3,396,057
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
1,314,504
1,314,504
Dividends
-
-
(1,100,000)
(1,100,000)
Balance at 31 December 2023
14
4
3,610,543
3,610,561
Desco (Design & Consultancy) Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 3
1
Accounting policies
Company information

Desco (Design & Consultancy) Limited is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is Azure House 2 Azure Court, Doxford International Business Park, Sunderland, SR3 3BE.

1.1
Accounting convention

These financial statements have been prepared in accordance with Section 1A of 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 financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company will be able to meet its liabilities as they fall due for the foreseeable future (and at least a period of 12 months beyond the date of approval of these financial statements). This is based on their assessment of the trading position of the company and their consideration of the impact of external factors. Having considered these factors, they have concluded that there is no significant impact to the going concern status of the company, thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Desco (Design & Consultancy) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 4
1.5
Tangible fixed assets

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

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

Plant and equipment
25% straight line
Fixtures and fittings
25% straight line
Computer equipment
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
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.

Desco (Design & Consultancy) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 5
1.8
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 statement of financial position 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.

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.

1.9
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.

Desco (Design & Consultancy) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 6
1.10
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 income statement 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.

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 income statement, 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.

1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.12
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.

1.13
Retirement benefits

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

Desco (Design & Consultancy) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 7
1.14
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.

1.15
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

The Directors do not consider there to be any material judgements or key sources of estimation

uncertainty.

 

3
Employees

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

2023
2022
Number
Number
Total
78
74
4
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
210,070
74,814
Deferred tax
Origination and reversal of timing differences
(7,928)
(6,113)
Total tax charge
202,142
68,701
Desco (Design & Consultancy) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 8
5
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023
920,173
Additions
34,822
At 31 December 2023
954,995
Depreciation and impairment
At 1 January 2023
843,679
Depreciation charged in the year
49,418
At 31 December 2023
893,097
Carrying amount
At 31 December 2023
61,898
At 31 December 2022
76,494
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,400,441
2,794,172
Corporation tax recoverable
60,000
90,000
Amounts owed by group undertakings
1,677,162
958,543
Other debtors
13,430
13,431
Prepayments and accrued income
458,175
548,765
4,609,208
4,404,911
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
95,942
83,894
Amounts owed to group undertakings
333,242
449,902
Corporation tax
60,000
-
0
Other taxation and social security
577,519
473,693
Other creditors
85,287
62,341
Accruals and deferred income
726,317
688,763
1,878,307
1,758,593
Desco (Design & Consultancy) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 9
8
Provisions for liabilities
2023
2022
£
£
Dilapidation provision
85,992
85,992
Other provisions
20,000
20,000
105,992
105,992
Deferred tax liabilities
1,493
9,421
107,485
115,413
9
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
120 Ordinary shares of 10p each
12.00
12.00
3 Ordinary 'A' shares of 10p each
0.30
0.30
2 Ordinary 'B' shares of 10p each
0.20
0.20
2 Ordinary 'C' shares of 10p each
0.20
0.20
2 Ordinary 'D' shares of 10p each
0.20
0.20
2 Ordinary 'E' shares of 10p each
0.20
0.20
3 Ordinary 'F' shares of 10p each
0.30
0.30
2 Ordinary 'G' shares of 10p each
0.20
0.20
2 Ordinary 'H' shares of 10p each
0.20
0.20
13.80
13.80
10
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:
Rebecca Shields
Statutory Auditor:
Moore Kingston Smith LLP
11
Financial commitments, guarantees and contingent liabilities

There is an unlimited multilateral guarantee and debenture including fixed and floating charges over all assets between the company and its fellow group companies.

Desco (Design & Consultancy) Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 10
12
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:

2023
2022
£
£
1,235,823
1,422,653
13
Ultimate controlling party

The immediate parent company is Desco (2011) Limited whose address is Azure House 2 Azure Court, Doxford International Business Park, Sunderland, England, SR3 3BE.

 

The ultimate controlling party of the company is RAG-Stiftung, a company registered in Germany.

 

The largest group of undertakings which prepares consolidated financial statements including the company is RAG-Stiftung. These financial statements may be obtained from RAG-Stiftung, Ruttenscheider Strasse 1-3, 45128 Essen, Germany.

 

The smallest group of undertakings which prepares consolidated financial statements including the company is PF Consulting Group Ltd. These financial statements may be obtained from PF Consulting Group Ltd, 5th Floor, 85 Strand, London, WC2R 0DW.

2023-12-312023-01-01false28 March 2024CCH SoftwareCCH Accounts Production 2023.200No description of principal activityThis audit opinion is unqualifiedN D CroweK HallL S RobertsL S Roberts036134622023-01-012023-12-3103613462bus:Director12023-01-012023-12-3103613462bus:Director22023-01-012023-12-3103613462bus:Director32023-01-012023-12-3103613462bus:CompanySecretary12023-01-012023-12-3103613462bus:RegisteredOffice2023-01-012023-12-31036134622023-12-31036134622022-12-3103613462core:OtherPropertyPlantEquipment2023-12-3103613462core:OtherPropertyPlantEquipment2022-12-3103613462core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3103613462core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3103613462core:CurrentFinancialInstruments2023-12-3103613462core:CurrentFinancialInstruments2022-12-3103613462core:ShareCapital2023-12-3103613462core:ShareCapital2022-12-3103613462core:CapitalRedemptionReserve2023-12-3103613462core:CapitalRedemptionReserve2022-12-3103613462core:RetainedEarningsAccumulatedLosses2023-12-3103613462core:RetainedEarningsAccumulatedLosses2022-12-3103613462core:ShareCapital2021-12-3103613462core:CapitalRedemptionReserve2021-12-3103613462core:RetainedEarningsAccumulatedLosses2021-12-3103613462core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31036134622022-01-012022-12-3103613462core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3103613462core:PlantMachinery2023-01-012023-12-3103613462core:FurnitureFittings2023-01-012023-12-3103613462core:ComputerEquipment2023-01-012023-12-3103613462core:UKTax2023-01-012023-12-3103613462core:UKTax2022-01-012022-12-3103613462core:OtherPropertyPlantEquipment2022-12-3103613462core:OtherPropertyPlantEquipment2023-01-012023-12-3103613462bus:PrivateLimitedCompanyLtd2023-01-012023-12-3103613462bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3103613462bus:FRS1022023-01-012023-12-3103613462bus:Audited2023-01-012023-12-3103613462bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP