Company registration number 03497488 (England and Wales)
DIRECT TRADE (YORKSHIRE) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
DIRECT TRADE (YORKSHIRE) LIMITED
COMPANY INFORMATION
Directors
Mr D J Mumby
Mr J E Buckley
Mr D P Colton
Mr M A Powell
Mr S R Storey
Secretary
Ms S T Whitehead
Company number
03497488
Registered office
Unit 3 Sandall Carr Road
Kirk Sandall
Doncaster
South Yorkshire
DN3 1QL
Auditor
Hentons
Northgate
118 North Street
Leeds
West Yorkshire
LS2 7PN
DIRECT TRADE (YORKSHIRE) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
DIRECT TRADE (YORKSHIRE) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the Year

The industry we are in had a difficult year with some of our suppliers stating that they were substantially down in turnover. Some have reported a decrease in business of over 20%. We are well placed and confident that the increase we have seen in new business will ensure that we maintain good levels of revenue. We are happy with our results for the year considering the climate of low consumer confidence. Turnover reduced by £1.87M (5.8%) and supplier price increases put additional pressures on the gross margin. However, through investment in new machinery and the resultant increase in productivity, along with a focus on staff performance and training, the result was an increase in gross profit margin to 37.4% (34.4% 2023). Although strict overhead control remained in place, the increase in energy prices, minimum wage rise, and general inflationary factors resulted in profit before tax reducing by £421k (12.6%) (13.2% 2023).

 

EBITDA for 2024 was £4.72M (15.5%)

 

During the year a Term Loan of £5.75M with an original term of 5 years, was fully settled after 2 years. This was paid through DT (Yorkshire) Holdings Ltd.

Significant Risks

The risk that the company considers significant is the lack of consumer confidence due to the uncertainty of the economy. Exposure to bad debt is managed with constant monitoring of our customers and enhanced due diligence when offering terms for new business. Our industry is extremely competitive and we monitor gross margins on a regular basis to ensure that the level is maintained to exceed our fixed costs and overheads.

Future Developments

The company is continuing the introduction of new products to its existing customer base and concentrating on maintaining service levels to ensure that both margins and the customer base is protected, especially at a time where the industry is seeing business failures due to low margins and under investment.

 

The investment made over the past year during extremely challenging trading conditions will enable us to increase productivity and improve product quality for our customers. Our focus remains on improving efficiency whilst maintaining our core values of providing quality products and high service levels.

On behalf of the board

Mr D P Colton
Director
2 August 2024
DIRECT TRADE (YORKSHIRE) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of the manufacture of doors and windows.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £3,621,117. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr D J Mumby
Mr J E Buckley
Mr D P Colton
Mr M A Powell
Mr S R Storey
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

 

 

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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DIRECT TRADE (YORKSHIRE) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr D P Colton
Director
2 August 2024
DIRECT TRADE (YORKSHIRE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DIRECT TRADE (YORKSHIRE) LIMITED
- 4 -
Opinion

We have audited the financial statements of Direct Trade (Yorkshire) Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

DIRECT TRADE (YORKSHIRE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DIRECT TRADE (YORKSHIRE) LIMITED
- 5 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's 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 auditor's 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.

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

DIRECT TRADE (YORKSHIRE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DIRECT TRADE (YORKSHIRE) LIMITED
- 6 -

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 an auditor's 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.

Chris Howitt
Senior Statutory Auditor
For and on behalf of Hentons
2 August 2024
Chartered Accountants
Statutory Auditor
Northgate
118 North Street
Leeds
West Yorkshire
LS2 7PN
DIRECT TRADE (YORKSHIRE) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
30,359,544
32,231,696
Cost of sales
(19,005,476)
(21,126,620)
Gross profit
11,354,068
11,105,076
Administrative expenses
(7,491,264)
(6,789,156)
Operating profit
4
3,862,804
4,315,920
Interest receivable and similar income
7
45,468
5,142
Interest payable and similar expenses
8
(85,867)
(77,594)
Profit before taxation
3,822,405
4,243,468
Tax on profit
10
(790,303)
(746,818)
Profit for the financial year
3,032,102
3,496,650

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 12 to 23 form part of these financial statements.

DIRECT TRADE (YORKSHIRE) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
£
£
Profit for the year
3,032,102
3,496,650
Other comprehensive income
Revaluation of tangible fixed assets
-
0
1,170,075
Total comprehensive income for the year
3,032,102
4,666,725

The notes on pages 12 to 23 form part of these financial statements.

DIRECT TRADE (YORKSHIRE) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
5,597,568
5,863,162
Current assets
Stocks
13
2,098,717
2,061,515
Debtors
14
5,802,088
4,694,973
Cash at bank and in hand
2,121,829
4,744,814
10,022,634
11,501,302
Creditors: amounts falling due within one year
15
(4,377,394)
(5,069,722)
Net current assets
5,645,240
6,431,580
Total assets less current liabilities
11,242,808
12,294,742
Creditors: amounts falling due after more than one year
16
(1,201,245)
(1,645,008)
Provisions for liabilities
Provisions
19
150,000
150,000
Deferred tax liability
20
521,443
540,599
(671,443)
(690,599)
Net assets
9,370,120
9,959,135
Capital and reserves
Called up share capital
22
50
50
Revaluation reserve
1,146,673
1,170,075
Capital redemption reserve
53
53
Profit and loss reserves
8,223,344
8,788,957
Total equity
9,370,120
9,959,135

The notes on pages 12 to 23 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 2 August 2024 and are signed on its behalf by:
Mr D P Colton
Director
Company registration number 03497488 (England and Wales)
DIRECT TRADE (YORKSHIRE) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
53
-
0
50
9,560,659
9,560,762
Year ended 31 March 2023:
Profit
-
-
-
3,496,650
3,496,650
Other comprehensive income:
Revaluation of tangible fixed assets
-
1,170,075
-
-
1,170,075
Total comprehensive income
-
1,170,075
-
3,496,650
4,666,725
Dividends
11
-
-
-
(4,268,352)
(4,268,352)
Redemption of shares
22
-
0
-
3
-
0
3
Reduction of shares
22
(3)
-
-
-
0
(3)
Balance at 31 March 2023
50
1,170,075
53
8,788,957
9,959,135
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
-
3,032,102
3,032,102
Dividends
11
-
-
-
(3,621,117)
(3,621,117)
Transfers
-
(23,402)
-
23,402
-
Balance at 31 March 2024
50
1,146,673
53
8,223,344
9,370,120

The notes on pages 12 to 23 form part of these financial statements.

DIRECT TRADE (YORKSHIRE) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
2,901,642
4,371,621
Interest paid
(85,867)
(77,594)
Income taxes paid
(846,295)
(517,659)
Net cash inflow from operating activities
1,969,480
3,776,368
Investing activities
Purchase of tangible fixed assets
(627,643)
(1,111,487)
Proceeds from disposal of tangible fixed assets
27,500
235,359
Repayment of loans
-
0
1,048,286
Interest received
45,468
5,142
Net cash (used in)/generated from investing activities
(554,675)
177,300
Financing activities
Repayment of bank loans
(519)
(1,039,526)
Payment of finance leases obligations
(416,154)
175,112
Dividends paid
(3,621,117)
(4,268,352)
Net cash used in financing activities
(4,037,790)
(5,132,766)
Net decrease in cash and cash equivalents
(2,622,985)
(1,179,098)
Cash and cash equivalents at beginning of year
4,744,814
5,923,912
Cash and cash equivalents at end of year
2,121,829
4,744,814

The notes on pages 12 to 23 form part of these financial statements.

DIRECT TRADE (YORKSHIRE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Direct Trade (Yorkshire) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3 Sandall Carr Road, Kirk Sandall, Doncaster, South Yorkshire, DN3 1QL.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and 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.

 

1.4
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:

Freehold land and buildings
2% on costs
Plant and equipment
20% on reducing balance
Fixtures and fittings
25% on cost and 25% on reducing balance
Computers
25% on cost and 25% on reducing balance
Motor vehicles
25% on cost

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.

1.5
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

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

DIRECT TRADE (YORKSHIRE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

DIRECT TRADE (YORKSHIRE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

DIRECT TRADE (YORKSHIRE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
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.

1.11
Retirement benefits

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

1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

DIRECT TRADE (YORKSHIRE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
UK sales
30,359,544
32,231,696
2024
2023
£
£
Other revenue
Interest income
45,468
5,142
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
860,098
801,408
Loss/(profit) on disposal of tangible fixed assets
5,639
(230,522)
Operating lease charges
348,520
342,235
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
18,000
14,500
6
Employees

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

2024
2023
Number
Number
Management
23
23
Administration
54
50
Factory
131
162
Total
208
235
DIRECT TRADE (YORKSHIRE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
7,264,859
7,539,606
Social security costs
665,201
628,676
Pension costs
124,094
124,991
8,054,154
8,293,273
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
45,468
587
Other interest income
-
0
4,555
Total income
45,468
5,142
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
45,468
5,142
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
61
5,282
Other finance costs:
Interest on finance leases and hire purchase contracts
85,806
72,312
85,867
77,594
9
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
386,835
458,958
Company pension contributions to defined contribution schemes
1,431
2,716
388,266
461,674
DIRECT TRADE (YORKSHIRE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
809,458
613,431
Deferred tax
Origination and reversal of timing differences
(19,155)
133,387
Total tax charge
790,303
746,818

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
3,822,405
4,243,468
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
955,601
806,259
Tax effect of expenses that are not deductible in determining taxable profit
2,872
(43,673)
Group relief
(181,053)
-
0
Permanent capital allowances in excess of depreciation
32,038
(149,155)
Deferred tax
(19,155)
133,387
Taxation charge for the year
790,303
746,818
11
Dividends
2024
2023
£
£
Final paid
3,621,117
4,257,988
Interim paid
-
0
10,364
3,621,117
4,268,352
DIRECT TRADE (YORKSHIRE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
12
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2023
3,392,261
4,665,808
1,000,701
495,721
1,752,043
11,306,534
Additions
-
0
352,689
22,483
1,754
250,717
627,643
Disposals
-
0
(375,860)
-
0
-
0
-
0
(375,860)
At 31 March 2024
3,392,261
4,642,637
1,023,184
497,475
2,002,760
11,558,317
Depreciation and impairment
At 1 April 2023
408,836
3,030,124
762,064
452,169
790,179
5,443,372
Depreciation charged in the year
67,845
352,252
61,628
26,568
351,805
860,098
Eliminated in respect of disposals
-
0
(342,721)
-
0
-
0
-
0
(342,721)
At 31 March 2024
476,681
3,039,655
823,692
478,737
1,141,984
5,960,749
Carrying amount
At 31 March 2024
2,915,580
1,602,982
199,492
18,738
860,776
5,597,568
At 31 March 2023
2,983,425
1,635,684
238,637
43,552
961,864
5,863,162
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
2,098,717
2,061,515
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,552,439
2,523,801
Other debtors
3,000,000
1,728,285
Prepayments and accrued income
249,649
442,887
5,802,088
4,694,973
DIRECT TRADE (YORKSHIRE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
-
0
519
Obligations under finance leases
18
702,158
674,549
Trade creditors
2,844,792
3,160,058
Corporation tax
348,184
385,020
Other taxation and social security
325,687
365,722
Other creditors
2,258
440,523
Accruals and deferred income
154,315
43,331
4,377,394
5,069,722
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
18
1,201,245
1,645,008
17
Loans and overdrafts
2024
2023
£
£
Bank loans
-
0
519
Payable within one year
-
0
519

The long-term loans are secured by way of legal charge over the individual freehold properties to which they relate and by way of standard bank debenture.

18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
702,158
674,549
In two to five years
1,201,245
1,608,633
In over five years
-
0
36,375
1,903,403
2,319,557
DIRECT TRADE (YORKSHIRE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
19
Provisions for liabilities
2024
2023
£
£
Future Dilapidations
150,000
150,000
Movements on provisions:
Future Dilapidations
£
At 1 April 2023 and 31 March 2024
150,000
20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
521,443
540,599
2024
Movements in the year:
£
Liability at 1 April 2023
540,599
Credit to profit or loss
(19,156)
Liability at 31 March 2024
521,443

The deferred tax provision is in relation to accelerated capital allowances.

The directors do not consider that there will be a net reversal of the provision in the following financial year.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
124,094
124,991

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

DIRECT TRADE (YORKSHIRE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Share capital of £1 each
50
53
50
50
23
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
116,108
89,563
Between two and five years
379,063
121,000
In over five years
154,595
-
0
649,766
210,563
24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
3,032,102
3,496,650
Adjustments for:
Taxation charged
790,303
746,818
Finance costs
85,867
77,594
Investment income
(45,468)
(5,142)
Loss/(gain) on disposal of tangible fixed assets
5,639
(230,522)
Depreciation and impairment of tangible fixed assets
860,098
801,408
Movements in working capital:
(Increase)/decrease in stocks
(37,202)
625,023
Increase in debtors
(1,107,115)
(1,351,308)
(Decrease)/increase in creditors
(682,582)
211,100
Cash generated from operations
2,901,642
4,371,621
DIRECT TRADE (YORKSHIRE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
25
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
4,744,814
(2,622,985)
2,121,829
Borrowings excluding overdrafts
(519)
519
-
Obligations under finance leases
(2,319,557)
416,154
(1,903,403)
2,424,738
(2,206,312)
218,426
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