REGISTERED NUMBER: 02307804 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Audited Consolidated Financial Statements |
for the Year Ended 31 October 2023 |
for |
D.A.C. Management Services Limited |
REGISTERED NUMBER: 02307804 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Audited Consolidated Financial Statements |
for the Year Ended 31 October 2023 |
for |
D.A.C. Management Services Limited |
D.A.C. Management Services Limited (Registered number: 02307804) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 October 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 | to | 7 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Statement of Financial Position | 10 |
Company Statement of Financial Position | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Statement of Cash Flows | 14 |
Notes to the Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Financial Statements | 16 | to | 28 |
D.A.C. Management Services Limited |
Company Information |
for the Year Ended 31 October 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
5 West Court |
Enterprise Road |
Maidstone |
Kent |
ME15 6JD |
BANKERS: |
65 Eltham High Street |
London |
SE9 1TE |
D.A.C. Management Services Limited (Registered number: 02307804) |
Group Strategic Report |
for the Year Ended 31 October 2023 |
The directors present their strategic report of the company and the group for the year ended 31 October 2023. |
The group continues to operate in both the residential and commercial markets, offering high quality plastering and drylining to high end developments. The strategies employed by the group have remained fundamentally the same as in previous years, the directors choosing to focus on the group's traditional target market within affluent areas of London. |
REVIEW OF BUSINESS |
The Directors are pleased to report continuing profits in times of uncertainty. The Directors continue to take steps to mitigate the impact of the difficult global economic environment increasing labour and materials costs on the profitability and the continuing operations of the business. They have successfully increased the gross profit margin to 24.5% from 23.0% the previous year. |
Following the Covid pandemic overheads have increased, putting pressure on the net profit margin. The Directors have successfully taken steps to mitigate this, the net profit margin showing improvement increasing to 13.6% from 12.3% in the previous year. Overall the business continues to generate a healthy profit, despite the challenging environment. |
Furthermore, the group has benefitted from a continuation of its historically low turnover of key staff which ensures that contacts within the industry remain strong. |
At the end of the financial period the company has shown positive results, ongoing profits indicating continued business success. The Balance Sheet shows net current assets proving the company's liquidity and stability in uncertain economic times. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Working in such a high end market makes the group particularly susceptible to changes in the world economy. A significant number of residential projects are completed with a view to sale to investors from overseas and any impact on the incomes of such investors can have a significant effect on the London housing market. In the event of another worldwide financial crisis the amount of construction work available to the group could fall dramatically. |
Commercial contracts are much more influenced by the UK economy and the commission of new projects. The group remains reliant on the generation of new contracts as no income is generated from on-going maintenance. |
As with many companies operating in this industry, the maintenance of staff is key to the on-going success of the group. As mentioned above, turnover of key staff has remained low historically but this does not remove an element of uncertainty for the future. |
ON BEHALF OF THE BOARD: |
D.A.C. Management Services Limited (Registered number: 02307804) |
Report of the Directors |
for the Year Ended 31 October 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 October 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 October 2023 was £519,000 (2022; £1,020,000). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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). 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. |
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. |
AUDITORS |
The auditors, Charcroft Baker LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
D.A.C. Management Services Limited |
Opinion |
We have audited the financial statements of D.A.C. Management Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the Consolidated Income Statement, Consolidated Other 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 October 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. |
Material uncertainty 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 Report of the Directors, 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. |
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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
D.A.C. Management Services Limited |
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 Report of the Directors. |
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 three, 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 |
D.A.C. Management Services 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: |
We obtained an understanding of the legal and regulatory frameworks that the company operates in, including those on provisions of those laws and regulations where the consequences of non-compliance could have a material effect on the determination of amounts and disclosures in the financial statements. The key laws and regulations we considered included FRS 102, the Companies Act 2006 along with tax, employment, data protection and health and safety legislation. |
We considered the opportunities and incentives that may exist within the organisation for fraud, including the risk of management override of controls. |
We clearly communicated the risk of fraud and non-compliance with the identified significant laws and regulations to all engagement team members from the planning stages of the audit and remained vigilant for indications of these throughout the audit. |
We investigated and obtained an understanding of the following in our assessment of the risk of misstatement: |
- the nature of the Company's operations, from sourcing materials and labour through to revenue sources and the mechanics of the operations involved; |
- the nature of the industry and sector, control environment and business performance including the design of the company's remuneration policies; |
- results of our enquiries of management about their own identification and assessment of the risks of irregularities; and |
- any matters we identified having enquired into the policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- the appropriateness of accounting policies in accordance with current accounting standards; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations. |
Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above, key potential risk areas we identified being: |
- Revenue recognition for long-term contracts |
- Provisions |
- Fair value estimations |
- Related party transactions |
- Management override of controls |
Our procedures to respond to risks identified included the following: |
- substantive testing in order to obtain sufficient audit evidence for the figures and disclosures within the financial statements; |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- enquiring of management concerning actual and potential litigation and claims; |
- ensuring appropriate knowledge and resources within the engagement team |
- testing of related party transactions and awareness of the possibility of related party relationships throughout sample testing; |
Report of the Independent Auditors to the Members of |
D.A.C. Management Services Limited |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; and |
- testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
Based on the work we have performed, we have not identified any material matters in relation to non-compliance with laws and regulations or in relation to fraud. |
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. |
for and on behalf of |
Statutory Auditors |
5 West Court |
Enterprise Road |
Maidstone |
Kent |
ME15 6JD |
D.A.C. Management Services Limited (Registered number: 02307804) |
Consolidated Income Statement |
for the Year Ended 31 October 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 15,470,199 | 15,633,134 |
Cost of sales | 11,681,775 | 12,044,461 |
GROSS PROFIT | 3,788,424 | 3,588,673 |
Administrative expenses | 1,707,971 | 1,655,598 |
2,080,453 | 1,933,075 |
Other operating income | 1,500 | 1,500 |
2,081,953 | 1,934,575 |
Interest receivable and similar income | 44,327 | 3,118 |
Interest payable and similar expenses | 5 | (23,332 | ) | (18,115 | ) |
PROFIT BEFORE TAXATION | 6 | 2,102,948 | 1,919,578 |
Tax on profit | 8 | 564,840 | 533,660 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,538,108 | 1,385,918 |
D.A.C. Management Services Limited (Registered number: 02307804) |
Consolidated Other Comprehensive Income |
for the Year Ended 31 October 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,538,108 | 1,385,918 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,538,108 |
1,385,918 |
Total comprehensive income attributable to: |
Owners of the parent | 1,538,108 | 1,385,918 |
D.A.C. Management Services Limited (Registered number: 02307804) |
Consolidated Statement of Financial Position |
31 October 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 | 46,334 | 69,826 |
Investments | 12 | - | - |
Investment property | 13 | 4,566,763 | 4,499,126 |
4,613,097 | 4,568,952 |
CURRENT ASSETS |
Stocks | 14 | 144,781 | 513,855 |
Debtors | 15 | 3,635,420 | 2,676,307 |
Cash at bank and in hand | 4,643,451 | 4,170,575 |
8,423,652 | 7,360,737 |
CREDITORS |
Amounts falling due within one year | 16 | 4,868,046 | 3,973,398 |
NET CURRENT ASSETS | 3,555,606 | 3,387,339 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
8,168,703 |
7,956,291 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(204,135 |
) |
(350,489 |
) |
PROVISIONS FOR LIABILITIES | 21 | (407,014 | ) | (391,426 | ) |
NET ASSETS | 7,557,554 | 7,214,376 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 100 | 121 |
Capital redemption reserve | 23 | 100 | 79 |
Fair value reserve | 23 | 1,243,957 | 1,243,957 |
Retained earnings | 23 | 6,313,397 | 5,970,219 |
SHAREHOLDERS' FUNDS | 7,557,554 | 7,214,376 |
The financial statements were approved by the Board of Directors and authorised for issue on 31 July 2024 and were signed on its behalf by: |
D P Walsh - Director |
D.A.C. Management Services Limited (Registered number: 02307804) |
Company Statement of Financial Position |
31 October 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Capital redemption reserve | 23 |
Fair value reserve | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,527,069 | 1,587,573 |
The financial statements were approved by the Board of Directors and authorised for issue on |
D.A.C. Management Services Limited (Registered number: 02307804) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 October 2023 |
Called up | Capital | Fair |
share | Retained | redemption | value | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 November 2021 | 200 | 8,044,944 | - | 1,343,474 | 9,388,618 |
Changes in equity |
Cancellation of shares | (79 | ) | - | 79 | - | - |
Dividends | - | (1,020,000 | ) | - | - | (1,020,000 | ) |
Total comprehensive income | - | 1,385,918 | - | - | 1,385,918 |
Transfer to fair value reserve | - | 99,517 | - | (99,517 | ) | - |
Buy back of shares | - | (2,540,160 | ) | - | - | (2,540,160 | ) |
Balance at 31 October 2022 | 121 | 5,970,219 | 79 | 1,243,957 | 7,214,376 |
Changes in equity |
Cancellation of shares | (21 | ) | - | 21 | - | - |
Dividends | - | (519,000 | ) | - | - | (519,000 | ) |
Total comprehensive income | - | 1,538,108 | - | - | 1,538,108 |
Buy back of shares | - | (675,930 | ) | - | - | (675,930 | ) |
Balance at 31 October 2023 | 100 | 6,313,397 | 100 | 1,243,957 | 7,557,554 |
D.A.C. Management Services Limited (Registered number: 02307804) |
Company Statement of Changes in Equity |
for the Year Ended 31 October 2023 |
Called up | Capital | Fair |
share | Retained | redemption | value | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 November 2021 |
Changes in equity |
Profit for the year | - | 1,587,573 | - | - | 1,587,573 |
Total comprehensive income | - |
Dividends | - | ( |
) | - | - | ( |
) |
Cancellation of shares | (79 | ) | - | 79 | - | - |
Transfer to fair value reserve | - | 99,517 | - | (99,517 | ) | - |
Buy back of shares | - | (2,540,160 | ) | - | - | (2,540,160 | ) |
Balance at 31 October 2022 |
Changes in equity |
Profit for the year | - | 1,527,069 | - | - | 1,527,069 |
Total comprehensive income | - |
Dividends | - | ( |
) | - | - | ( |
) |
Cancellation of shares | (21 | ) | - | 21 | - | - |
Buy back of shares | - | (675,930 | ) | - | - | (675,930 | ) |
Balance at 31 October 2023 |
D.A.C. Management Services Limited (Registered number: 02307804) |
Consolidated Statement of Cash Flows |
for the Year Ended 31 October 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,052,664 | 2,767,307 |
Interest paid | (23,332 | ) | (18,115 | ) |
Tax paid | (307,610 | ) | (352,511 | ) |
Net cash from operating activities | 1,721,722 | 2,396,681 |
Cash flows from investing activities |
Purchase of tangible fixed assets | - | (50,541 | ) |
Purchase of investment property | (67,637 | ) | (58,626 | ) |
Interest received | 44,327 | 3,118 |
Net cash from investing activities | (23,310 | ) | (106,049 | ) |
Cash flows from financing activities |
Capital loan repayments | (141,241 | ) | (138,441 | ) |
Amount introduced by directors | 519,000 | 1,054,124 |
Amount withdrawn by directors | (408,365 | ) | (462,660 | ) |
Share buyback | (675,930 | ) | (2,540,160 | ) |
Equity dividends paid | (519,000 | ) | (1,020,000 | ) |
Net cash from financing activities | (1,225,536 | ) | (3,107,137 | ) |
Increase/(decrease) in cash and cash equivalents | 472,876 | (816,505 | ) |
Cash and cash equivalents at beginning of year |
2 |
4,170,575 |
4,987,080 |
Cash and cash equivalents at end of year |
2 |
4,643,451 |
4,170,575 |
D.A.C. Management Services Limited (Registered number: 02307804) |
Notes to the Consolidated Statement of Cash Flows |
for the Year Ended 31 October 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 2,102,948 | 1,919,578 |
Depreciation charges | 23,492 | 23,026 |
Finance costs | 23,332 | 18,115 |
Finance income | (44,327 | ) | (3,118 | ) |
2,105,445 | 1,957,601 |
Decrease/(increase) in stocks | 369,074 | (75,912 | ) |
Increase in trade and other debtors | (1,069,748 | ) | (565,054 | ) |
Increase in trade and other creditors | 647,893 | 1,450,672 |
Cash generated from operations | 2,052,664 | 2,767,307 |
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 October 2023 |
31/10/23 | 1/11/22 |
£ | £ |
Cash and cash equivalents | 4,643,451 | 4,170,575 |
Year ended 31 October 2022 |
31/10/22 | 1/11/21 |
£ | £ |
Cash and cash equivalents | 4,170,575 | 4,987,080 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/11/22 | Cash flow | At 31/10/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,170,575 | 472,876 | 4,643,451 |
4,170,575 | 472,876 | 4,643,451 |
Debt |
Debts falling due within 1 year | (141,240 | ) | (5,113 | ) | (146,353 | ) |
Debts falling due after 1 year | (350,489 | ) | 146,354 | (204,135 | ) |
(491,729 | ) | 141,241 | (350,488 | ) |
Total | 3,678,846 | 614,117 | 4,292,963 |
D.A.C. Management Services Limited (Registered number: 02307804) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 October 2023 |
1. | STATUTORY INFORMATION |
D.A.C. Management Services Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The financial statements contain information about DAC Management Services Limited as an individual company and contain consolidated financial information as the parent of David Andrews (Construction) Limited and David Andrews Heritage Limited. The registered offices of the subsidiaries are the same as the parent and this address can be found on the contents page. The financial statements have been consolidated on an equity basis. |
Significant judgements and estimates |
There are no judgements in relation to specific accounting policies that have a material effect on the amounts recognised within these financial statements. |
There are no estimates that carry a significant risk of resulting in a material adjustment to the carrying amounts of any assets or liabilities within the next financial year. |
It is the case, however, that the company's income is derived from long-term construction contracts for which the company is required to make estimates in accounting for revenue and margin. These estimates may depend upon the outcome of future events and may need to be revised as circumstances change. |
It is also the case that the company's investment properties are valued at fair value at the year end, in arriving at this valuation the company is required to make estimations based on relevant market data. |
Turnover |
Turnover represents the fair value of rental income and services supplied by the company, net of value added tax and trade discounts. |
Turnover in respect of rendering of services is recognised with reference to stage of completion. Stage of completion is measured by the value of work completed by the end of the financial year. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Stocks |
Stock and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stock. Cost includes all direct costs. |
D.A.C. Management Services Limited (Registered number: 02307804) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
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. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate. |
Investment properties |
In accordance with FRS 102, investment properties are not subject to periodic charges for depreciation, but are included in the balance sheet at their estimated fair value at the balance sheet date. The valuations are undertaken by the directors. |
Changes in the market value of investment properties are dealt with as a movement on the revaluation reserve unless a deficit (or its reversal) on an individual investment property is expected to be permanent, in which case it is charged (or credited) in the profit and loss account of the period. |
D.A.C. Management Services Limited (Registered number: 02307804) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Rendering of services | 15,353,140 | 15,535,657 |
Other revenue | 117,059 | 97,477 |
15,470,199 | 15,633,134 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 4,029,526 | 3,936,545 |
Social security costs | 449,432 | 467,464 |
Other pension costs | 59,644 | 55,507 |
4,538,602 | 4,459,516 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration | 7 | 11 |
Tradesman | 63 | 64 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 40,959 | 31,406 |
Directors received a total of £Nil (2022: £Nil) in pension contributions. |
Directors received 10,673 (2022: £14,039) in benefits in kind. |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 7 | - |
Bank loan interest | 15,315 | 18,115 |
Other interest | 8,010 | - |
23,332 | 18,115 |
D.A.C. Management Services Limited (Registered number: 02307804) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
6. | PROFIT BEFORE TAXATION |
The profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 23,492 | 23,026 |
Foreign exchange differences | 2,945 | (2,121 | ) |
7. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
27,275 |
27,725 |
Total audit fees | 27,275 | 27,725 |
Taxation advisory services | 5,000 | 5,000 |
Other non- audit services | 7,875 | 11,125 |
Total non-audit fees | 12,875 | 16,125 |
Total fees payable | 40,150 | 43,850 |
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 | 549,252 | 461,849 |
Deferred tax | 15,588 | 71,811 |
Tax on profit | 564,840 | 533,660 |
D.A.C. Management Services Limited (Registered number: 02307804) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 2,102,948 | 1,919,578 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
525,737 |
364,720 |
Effects of: |
Expenses not deductible for tax purposes | 102,647 | 77,879 |
Capital allowances in excess of depreciation | - | (8,323 | ) |
Depreciation in excess of capital allowances | 5,609 | - |
Utilisation of tax losses | (24,032 | ) | - |
Change in tax rate | (60,710 | ) | - |
Deferred tax | 15,589 | 71,811 |
Tax losses carried forward | - | 27,573 |
Total tax charge | 564,840 | 533,660 |
9. | INDIVIDUAL INCOME STATEMENT |
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. |
The parent company's profit for the financial year was £1,527,069 (2022 : £1,587,573) |
10. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary A shares of £1 each |
Interim | 519,000 | 1,020,000 |
D.A.C. Management Services Limited (Registered number: 02307804) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 November 2022 |
and 31 October 2023 | 37,415 | 38,551 | 91,606 | 167,572 |
DEPRECIATION |
At 1 November 2022 | 17,718 | 9,638 | 70,390 | 97,746 |
Charge for year | 2,955 | 9,638 | 10,899 | 23,492 |
At 31 October 2023 | 20,673 | 19,276 | 81,289 | 121,238 |
NET BOOK VALUE |
At 31 October 2023 | 16,742 | 19,275 | 10,317 | 46,334 |
At 31 October 2022 | 19,697 | 28,913 | 21,216 | 69,826 |
Company |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 November 2022 |
and 31 October 2023 |
DEPRECIATION |
At 1 November 2022 |
Charge for year |
At 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 November 2022 |
and 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
D.A.C. Management Services Limited (Registered number: 02307804) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: United House, North Road, Islington, London |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: United House, North Road, Islington, London |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit/(loss) for the year | ( |
) |
13. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 November 2022 | 4,499,126 |
Additions | 67,637 |
At 31 October 2023 | 4,566,763 |
NET BOOK VALUE |
At 31 October 2023 | 4,566,763 |
At 31 October 2022 | 4,499,126 |
Fair value at 31 October 2023 is represented by: |
£ |
Valuation in 2013 | 696,969 |
Valuation in 2018 | 117,594 |
Valuation in 2021 | 844,047 |
Cost | 2,908,153 |
4,566,763 |
D.A.C. Management Services Limited (Registered number: 02307804) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
13. | INVESTMENT PROPERTY - continued |
Group |
If investment property had not been revalued it would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 2,908,153 | 2,840,517 |
Investment property was valued on an open market basis on 31 October 2013 by an independent valuer . |
Subsequently, the directors have revalued the investment properties to their estimated fair values based on their understanding of the market and the condition of the properties, the most recent valuation being at 31 October 2023. |
Company |
Total |
£ |
FAIR VALUE |
At 1 November 2022 |
Additions |
At 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
The investment property was valued at open market value by the directors. |
Fair value at 31 October 2023 is represented by: |
£ |
Valuation in 2013 | 696,969 |
Valuation in 2018 | 117,594 |
Valuation in 2021 | 844,047 |
Cost | 2,908,153 |
4,566,763 |
If investment property had not been revalued it would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 2,908,153 | 2,836,918 |
Investment property was valued on an open market basis on 31 October 2013 by an independent valuer . |
Subsequently, the directors have revalued the investment properties to their estimated fair values based on their understanding of the market and the condition of the properties, the most recent valuation being at 31 October 2023. |
D.A.C. Management Services Limited (Registered number: 02307804) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
14. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Work-in-progress | 144,781 | 513,855 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 1,257,389 | 877,890 |
Other debtors | 129,112 | 120,899 |
Directors' loan accounts | 361,240 | 471,875 | 361,240 | 471,875 |
VAT | 156,329 | 268,965 |
Prepayments and accrued income | 1,731,350 | 936,678 |
3,635,420 | 2,676,307 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 146,353 | 141,240 |
Trade creditors | 1,154,133 | 1,386,534 |
Amounts owed to group undertakings | - | - |
Tax | 404,217 | 162,575 |
Social security and other taxes | 163,767 | 169,805 |
VAT | - | - |
Other creditors | 189,946 | 388,548 |
Accruals and deferred income | 2,809,630 | 1,724,696 |
4,868,046 | 3,973,398 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 18) | 204,135 | 350,489 |
D.A.C. Management Services Limited (Registered number: 02307804) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 146,353 | 141,240 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 151,653 | 146,353 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 52,482 | 204,136 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 87,237 | 37,295 |
Between one and five years | 166,790 | 606 |
254,027 | 37,901 |
Operating leases are in respect of office rent, vehicles and equipment. |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Property loan | 351,570 | 491,729 | 350,489 | 491,729 |
The above loan is secured by way of a debenture and charges over two of the properties held by the company; 19 Glenton Road and 25 Glenton Road. The total carrying amount of the properties held as security is £3,000,000 (2022 : £3,000,000). |
21. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 407,014 | 391,426 | 417,278 | 406,432 |
D.A.C. Management Services Limited (Registered number: 02307804) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
21. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred | Snagging |
tax | provisions |
£ | £ |
Balance at 1 November 2022 | 391,426 | 220,000 |
Charge to Income Statement during year | 4,742 | - |
Utilised during year | - | (220,000 | ) |
Unused amounts reversed during year | 171 | - |
Deferred tax charge |
On losses utilised | 10,675 | - |
Balance at 31 October 2023 | 407,014 | - |
Company |
Deferred |
tax |
£ |
Balance at 1 November 2022 |
Unused amounts reversed during year |
On losses |
On losses utilised | 10,675 |
Balance at 31 October 2023 |
Snagging provisions relate to various snagging costs which are expected to be incurred on specific contracts over the next year. The amounts are estimates made by the directors using their judgement and knowledge of the contracts. |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
Value: | £ | £ |
84 | Ordinary A | £1 | 84 | 100 |
15 | Ordinary B | £1 | 15 | 21 |
1 | Ordinary C | £1 | 1 | - |
100 | 121 |
Share Capital represents the nominal value of the shares that have been issued. |
D.A.C. Management Services Limited (Registered number: 02307804) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
23. | RESERVES |
Group |
Retained earnings |
Capital redemption reserve |
Fair value reserve |
Totals |
£ | £ | £ | £ |
At 1 November 2022 | 5,970,219 | 79 | 1,243,957 | 7,214,255 |
Profit for the year | 1,538,108 | - | - | 1,538,108 |
Dividends | (519,000 | ) | - | - | (519,000 | ) |
Cancellation of shares | - | 21 | - | 21 |
Buy back of shares | (675,930 | ) | - | - | (675,930 | ) |
As at 31 October 2023 | 6,313,397 | 100 | 1,243,957 | 7,557,454 |
Company |
Retained earnings |
Capital redemption reserve |
Fair value reserve |
Totals |
£ | £ | £ | £ |
At 1 November 2022 | 26,898 | 79 | 1,243,957 | 1,270,934 |
Profit for the year | 1,527,069 | - | - | 1,527,069 |
Dividends | (519,000 | ) | - | - | (519,000 | ) |
Cancellation of shares | - | 21 | - | 21 |
Buy back of shares | (675,930 | ) | - | - | (675,930 | ) |
As at 31 October 2023 | 359,037 | 100 | 1,243,957 | 1,603,094 |
Share Capital represents the nominal value of the shares that have been issued. |
Retained Earnings is a distributable reserve in respect of all current and prior period profits. |
The Fair Value Reserve is a non distributable reserve in respect of movements in investments, fixed assets and investment property. |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 October 2023 and 31 October 2022: |
2023 | 2022 |
£ | £ |
A R Gamble |
Balance outstanding at start of year | - | 534,123 |
Amounts repaid | - | (534,123 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | - |
D.A.C. Management Services Limited (Registered number: 02307804) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued |
D P Walsh |
Balance outstanding at start of year | 471,876 | 529,216 |
Amounts advanced | 408,364 | 462,660 |
Amounts repaid | (519,000 | ) | (520,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 361,240 | 471,876 |
The above loans are included in other debtors and are interest free, unsecured and repayable on demand. |
25. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
SMTW Consulting Limited, a company under common control, charged the company |
During the year, a total of key management personnel compensation of £ 570,632 (2022 - £ 1,068,971 ) was paid. |
Key management personnel consists solely of the Directors. Compensation for the year included dividends of £519,000 (2022: £1,020,000). |
26. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is D P Walsh. |