Company registration number 01485632 (England and Wales)
D. H. INDUSTRIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
D. H. INDUSTRIES LIMITED
COMPANY INFORMATION
Directors
H M Sullivan
P P Sullivan
C Ruoss-Maeder
M Ruoss-Maeder
Secretary
A Sheard
Company number
01485632
Registered office
Sullivan House
Fenton Way
Southfields Business Park
Laindon
Essex
SS15 6TD
Auditor
M J Bushell Audit LLP
8 High Street
Brentwood
Essex
CM14 4AB
Bankers
National Westmister Bank Plc
29 East Walk
Basildon
Essex
SS14 1HD
D. H. INDUSTRIES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 27
D. H. INDUSTRIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The principal activity of the company during the year was that of suppliers of plant and machinery to the chemical, pharmaceutical, aerosol and coatings industries.

The company continues to be in a good position to take advantage of any opportunities which may arise in the future.

The Directors are pleased to report that the company now has orders which will ensure high levels of activity continuing well into 2026.

We believe the company is in a strong position to withstand any fluctuations in the market.

Financial instruments and principal risks

The company has minimum exposure in terms of price risk, credit risk, liquidity risk and cashflow risk. As the company deals with a number of overseas customers and suppliers, there is some exposure to the effects of fluctuations in foreign exchange rates which the company manages by the occasional forward purchase of currency in relation to specific projects.

Research and development

The company is continuing its long history of innovation in developing the technology of its products for the benefit of its customers.

By order of the board

A Sheard
Secretary
22 May 2024
D. H. INDUSTRIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Results and dividends

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

Ordinary dividends were paid amounting to £289,806. The directors do not recommend payment of a final dividend.

Directors

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

H M Sullivan
P P Sullivan
C Ruoss-Maeder
M Ruoss-Maeder
Auditor

In accordance with the company's articles, a resolution proposing that M J Bushell Audit LLP be reappointed as auditor of the company will be put at a General Meeting.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the business review, financial instruments, principal risks and uncertainties and research and development.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

By order of the board
A Sheard
Secretary
22 May 2024
D. H. INDUSTRIES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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.

D. H. INDUSTRIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF D. H. INDUSTRIES LIMITED
- 4 -
Opinion

We have audited the financial statements of D. H. Industries Limited (the 'company') for the year ended 31 December 2023 which comprise 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:

D. H. INDUSTRIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF D. H. INDUSTRIES 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.

Management override of controls

Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

Non compliance with laws and regulations

Enquiry of management, those charged with governance around actual and potential litigation and claims.

 

Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

 

Reviewing minutes of meetings of those charged with governance.

 

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

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.

D. H. INDUSTRIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF D. H. INDUSTRIES LIMITED
- 6 -

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.

Corné von Wielligh ACA
Senior Statutory Auditor
For and on behalf of M J Bushell Audit LLP
7 June 2024
Chartered Accountants
Statutory Auditor
8 High Street
Brentwood
Essex
CM14 4AB
D. H. INDUSTRIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
18,629,867
16,419,187
Cost of sales
(12,077,991)
(10,715,683)
Gross profit
6,551,876
5,703,504
Distribution costs
18,918
(24,933)
Administrative expenses
(5,145,504)
(5,100,705)
Other operating income
12,378
17,150
Operating profit
4
1,437,668
595,016
Interest receivable and similar income
8
216,091
12,739
Gains and losses on investments
9
153,706
(43,537)
Profit before taxation
1,807,465
564,218
Tax on profit
10
(433,459)
(81,243)
Profit for the financial year
1,374,006
482,975

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

D. H. INDUSTRIES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
3,347,214
1,858,012
Investments
14
1,466,061
1,312,356
4,813,275
3,170,368
Current assets
Stocks
16
11,643,045
4,243,556
Debtors
18
20,227,765
8,044,367
Cash at bank and in hand
5,197,172
18,439,425
37,067,982
30,727,348
Creditors: amounts falling due within one year
19
(33,095,432)
(26,349,409)
Net current assets
3,972,550
4,377,939
Total assets less current liabilities
8,785,825
7,548,307
Provisions for liabilities
Deferred tax liability
20
240,812
87,494
(240,812)
(87,494)
Net assets
8,545,013
7,460,813
Capital and reserves
Called up share capital
22
814,161
814,161
Capital redemption reserve
1,939
1,939
Profit and loss reserves
7,728,913
6,644,713
Total equity
8,545,013
7,460,813

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 22 May 2024 and are signed on its behalf by:
P P Sullivan
M Ruoss-Maeder
Director
Director
Company registration number 01485632 (England and Wales)
D. H. INDUSTRIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
814,161
1,939
6,777,601
7,593,701
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
482,975
482,975
Dividends
11
-
-
(615,863)
(615,863)
Balance at 31 December 2022
814,161
1,939
6,644,713
7,460,813
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,374,006
1,374,006
Dividends
11
-
-
(289,806)
(289,806)
Balance at 31 December 2023
814,161
1,939
7,728,913
8,545,013
D. H. INDUSTRIES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(11,204,056)
16,249,277
Income taxes paid
(284,026)
(392,624)
Net cash (outflow)/inflow from operating activities
(11,488,082)
15,856,653
Investing activities
Purchase of tangible fixed assets
(1,706,732)
(255,065)
Proceeds on disposal of tangible fixed assets
26,275
-
0
Proceeds on disposal of fixed asset investments
(153,705)
43,536
Proceeds from other investments and loans
153,706
(43,537)
Interest received
213,824
10,876
Dividends received
2,267
1,863
Net cash used in investing activities
(1,464,365)
(242,327)
Financing activities
Dividends paid
(289,806)
(615,863)
Net cash used in financing activities
(289,806)
(615,863)
Net (decrease)/increase in cash and cash equivalents
(13,242,253)
14,998,463
Cash and cash equivalents at beginning of year
18,439,425
3,440,962
Cash and cash equivalents at end of year
5,197,172
18,439,425
D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

D. H. Industries Limited is a limited company domiciled and incorporated in England and Wales. The registered office is Sullivan House, Fenton Way, Southfields Business Park, Laindon, Essex, SS15 6TD.

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 £1.

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

The company has taken advantage of the exemption under section 405 of the Companies Act 2006 not to prepare consolidated accounts, as its subsidiary undertaking is dormant and its accounts are not material to the group for the purpose of giving a true and fair view of the state of the group's affairs at 31 December 2023. Consequently, the financial statements present information about the company as an individual entity and not about its group.

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 measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

 

Turnover from the sale of goods is recognised when the goods are physically delivered to the customer. Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration. Where a contract has only been partially completed at the balance sheet date, turnover represents the fair value of the services provided to date based on the stage of completion of the contract activity at the balance sheet date. Where payments are received from customers in advance of services provided, the amounts are recorded as deferred income and included as part of creditors due within one year.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred.

1.5
Tangible fixed assets

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

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

Land and buildings Freehold
Straight line over 50 years
Plant & machinery
5% - 15% straight line
Fixtures, fittings & equipment
5% - 20% straight line
Motor vehicles
12.5% - 20% straight line
D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -

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
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
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.

1.8
Stocks

Stocks are stated at the lower of cost and net realisable value. 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.

Cost is calculated as follows:

 

Raw materials, consumables and goods for resale - purchase cost on a first-in, first-out basis.

 

Work in progress and finished goods - cost of direct materials and labour plus attributable overheads based on a normal level of activity.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

Provision is made for obsolete and slow-moving items using an estimation technique which is constantly under review as more accurate statistical information becomes available.

D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.9
Engineering contracts

Where the outcome of an engineering contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of an engineering contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.10
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.

1.11
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.

D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Loans and receivables

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

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.

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.

D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.

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.

Derecognition of financial liabilities

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

1.12
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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.13
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.

D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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.

1.14
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.

1.15
Retirement benefits

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

1.16
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.

D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
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.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgements

The following judgements (apart from those involving estimates) have the most significant effect on amounts recognised in the financial statements.

Stage of completion of engineering contracts

The stage of completion of engineering contracts needs to be assessed at the balance sheet date in order to determine the appropriate value of turnover and attributable profit / loss to be recognised in the profit and loss account in the reporting period. This requires judgements to be made in respect of forecasting future costs that will need to be incurred to complete the contracts.

Net realisable value of inventories

Inventories are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Income from engineering contracts
14,599,275
13,324,974
Spare parts sales
3,732,539
2,907,345
Engineers visits
294,300
185,160
Other income
3,753
1,708
18,629,867
16,419,187
D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 18 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
7,334,482
8,943,195
Rest of Europe
8,644,852
2,916,977
North America
836,699
1,028,907
Middle and Far East
1,774,650
3,455,736
Rest of World
39,184
74,372
18,629,867
16,419,187
2023
2022
£
£
Other revenue
Interest income
213,824
10,876
Dividends received
2,267
1,863
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(437,365)
181,046
Research and development costs
7,378
61,272
Depreciation of owned tangible fixed assets
200,917
221,009
Profit on disposal of tangible fixed assets
(9,662)
-
Impairment of stocks recognised or reversed
16,383
15,712
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
16,000
11,900
For other services
Taxation compliance services
2,000
2,000
All other non-audit services
5,915
3,096
7,915
5,096
D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
6
Employees

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

2023
2022
Number
Number
Factory
26
25
Management and clerical
18
19
Technical and sales
23
21
Total
67
65

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
5,072,181
4,365,231
Social security costs
661,925
526,972
Pension costs
551,224
462,877
6,285,330
5,355,080
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,417,616
1,315,836
Company pension contributions to defined contribution schemes
52,366
40,000
1,469,982
1,355,836

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
1,201,737
1,111,078
Company pension contributions to defined contribution schemes
52,366
40,000
D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
192,366
10,526
Other interest income
21,458
350
Total interest revenue
213,824
10,876
Other income from investments
Dividends received
2,267
1,863
Total income
216,091
12,739
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
192,366
10,526
Dividends from financial assets measured at fair value through profit or loss
2,267
1,863
9
Gains and losses on investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Change in value of financial assets held at fair value through profit or loss
153,706
(43,537)
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
302,289
96,575
Adjustments in respect of prior periods
(22,148)
-
0
Total current tax
280,141
96,575
Deferred tax
Origination and reversal of timing differences
153,318
(15,332)
Total tax charge
433,459
81,243
D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 21 -

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:

2023
2022
£
£
Profit before taxation
1,807,465
564,218
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
424,754
107,201
Tax effect of expenses that are not deductible in determining taxable profit
3,667
1,586
Permanent capital allowances in excess of depreciation
(92,506)
(25,988)
Depreciation on assets not qualifying for tax allowances
6,216
5,021
Effect of revaluations of investments
(36,152)
8,272
Dividend income
(533)
-
0
Deferred tax
153,318
-
0
Other tax adjustments
(25,305)
(14,849)
Taxation charge for the year
433,459
81,243
11
Dividends
2023
2022
£
£
Interim paid
289,806
615,863
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Stocks
16
16,383
15,712
Recognised in:
Cost of sales
16,383
15,712

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
13
Tangible fixed assets
Land and buildings Freehold
Plant & machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
1,712,306
1,016,884
1,506,224
364,897
4,600,311
Additions
1,060,265
376,347
134,846
135,274
1,706,732
Disposals
-
0
-
0
(144,304)
(25,000)
(169,304)
At 31 December 2023
2,772,571
1,393,231
1,496,766
475,171
6,137,739
Depreciation and impairment
At 1 January 2023
694,216
543,813
1,261,127
243,143
2,742,299
Depreciation charged in the year
28,195
46,866
91,352
34,504
200,917
Eliminated in respect of disposals
-
0
-
0
(139,941)
(12,750)
(152,691)
At 31 December 2023
722,411
590,679
1,212,538
264,897
2,790,525
Carrying amount
At 31 December 2023
2,050,160
802,552
284,228
210,274
3,347,214
At 31 December 2022
1,018,090
473,071
245,097
121,754
1,858,012
14
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
15
5,000
5,000
Listed investments
1,460,945
1,307,240
Unlisted investments
116
116
1,466,061
1,312,356

Listed investments included above:

Listed investments carrying amount
1,460,945
1,307,240
Fixed asset investments revalued

Listed investments represent investments in non-puttable ordinary shares and collective investment funds. The fair value of listed investments was determined with reference to the quoted market price at the reporting date. The cost of the investments on acquisition was £1,044,504 (2022 - £1,044,504).

Fixed asset investments not carried at market value

Unlisted investments are held at cost less impairment because their fair value cannot be measured reliably.

D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
- 23 -
Movements in fixed asset investments
Shares in group undertakings
Listed investments
Unlisted investments
Total
£
£
£
£
Cost or valuation
At 1 January 2023
5,000
1,307,240
116
1,312,356
Valuation changes
-
153,705
-
153,705
At 31 December 2023
5,000
1,460,945
116
1,466,061
Carrying amount
At 31 December 2023
5,000
1,460,945
116
1,466,061
At 31 December 2022
5,000
1,307,240
116
1,312,356
15
Subsidiaries

These financial statements are separate company financial statements for D. H. Industries Limited.

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Jenag Equipment Limited
Sullivan House, Fenton Way, Laindon, Essex, SS15 6TD
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Jenag Equipment Limited
5,000
-
0

As explained in note 1.1, exclusion is on the basis of immateriality.

16
Stocks
2023
2022
£
£
Work in progress
12,004,408
4,223,616
Finished goods and goods for resale
886,519
844,350
Payments received on account
(1,247,882)
(824,410)
11,643,045
4,243,556
D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
17
Engineering contracts
2023
2022
£
£
Contracts in progress at the reporting date
Gross amounts due from contract customers included in debtors
1,810,444
290,274
Gross amounts due to contract customers included in creditors
(29,594,541)
(20,391,280)
18
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
17,546,829
7,117,134
Gross amounts owed by contract customers
1,810,444
290,274
Corporation tax recoverable
317,099
313,214
Other debtors
154,124
90,281
Prepayments and accrued income
399,269
233,464
20,227,765
8,044,367
19
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
435,038
75,518
Gross amounts owed to contract customers
29,594,541
20,391,280
Amounts owed to group undertakings
1,514,388
2,963,044
Taxation and social security
239,714
900,708
Accruals and deferred income
1,311,751
2,018,859
33,095,432
26,349,409
20
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
240,812
87,494
D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Deferred taxation
(Continued)
- 25 -
2023
Movements in the year:
£
Liability at 1 January 2023
87,494
Charge to profit or loss
153,318
Liability at 31 December 2023
240,812

The deferred tax liability set out above is expected to reverse over the assets' relevant useful lives.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
551,224
462,877

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.

22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
415,211
415,211
415,211
415,211
B Ordinary shares of £1 each
398,950
398,950
398,950
398,950
814,161
814,161
814,161
814,161

The company has two classes of ordinary shares, being Ordinary A shares and Ordinary B shares. Although these are separate classes of shares, they shall carry the same rights and privileges. Each share carries equal voting and dividend rights and in the event of a winding up or disposal, equal rights over any surplus assets. They do not confer any rights of redemption.

23
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
57,600
-
D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
24
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel (including directors), is as follows:

2023
2022
£
£
Aggregate compensation
1,982,520
1,821,782
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sale of goods
Purchase of goods
2023
2022
2023
2022
£
£
£
£
Entities with control, joint control or significant influence over the company
222,005
263,175
12,406,553
5,739,150
222,005
263,175
12,406,553
5,739,150

The following amounts were outstanding at the reporting end date:

Amounts owed to related parties
2023
2022
£
£
Entities with control, joint control or significant influence over the company
1,509,388
2,958,044
Entities over which the company has control, joint control or significant influence
5,000
5,000
1,514,388
2,963,044

The above amounts are unsecured and payable on demand in cash.

No guarantees have been given or received.

25
Directors' transactions

Dividends totalling £142,005 (2022 - £301,773) were paid in the year in respect of shares held directly by the company's directors.

 

In addition, dividends totalling £147,801 (2022 - £314,090) were paid to the company's parent company, in which certain directors have an interest.

 

D. H. INDUSTRIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
26
Ultimate controlling party

The ultimate parent company is Pamasol Willi Maeder AG, a company incorporated in Switzerland.

27
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit for the year after tax
1,374,006
482,975
Adjustments for:
Taxation charged
433,459
81,243
Investment income
(216,091)
(12,739)
Gain on disposal of tangible fixed assets
(9,662)
-
Depreciation and impairment of tangible fixed assets
200,917
221,009
Other gains and losses
(153,706)
43,537
Movements in working capital:
Increase in stocks
(7,399,489)
(1,156,664)
Increase in debtors
(12,179,513)
(2,696,288)
Increase in creditors
6,746,023
19,286,204
Cash (absorbed by)/generated from operations
(11,204,056)
16,249,277
28
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
18,439,425
(13,242,253)
5,197,172
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