Company registration number 08065650 (England and Wales)
DDC DOLPHIN HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
DDC DOLPHIN HOLDINGS LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
DDC DOLPHIN HOLDINGS LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr. M D Priest
Mr. A S Hyde
Ms. Z Allen
Mr. J Smith
Company number
08065650
Registered office
37 Commercial Road
Poole
Dorset
BH14 0HU
Auditor
Azets Audit Services
37 Commercial Road
Poole
Dorset
BH14 0HU
DDC DOLPHIN HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Fair review of the business

The group’s principal activities are the manufacture, supply and aftersales service of infection prevention and control solutions to healthcare markets in the UK and internationally through distribution partners across the globe. 

 

In 2023, DDC Dolphin delivered a notable increase in turnover, gross profit, and profit before tax compared to previous years. This achievement can be attributed to the implementation of a comprehensive strategic business plan, meticulously aligned with the group's long-term ambitions and values. This plan facilitated positive strides across all key performance indicators in both our UK and international markets, encompassing our complete product and service portfolio in infection prevention and control solutions.

 

The group is satisfied in the progress and performance of key elements outlined in the business plan, emphasising growth maximisation, customer excellence, robust infrastructure, fostering a great workplace environment, delivering exceptional service, and pioneering quality innovation. With a commitment to long-term success and the collective benefit of all stakeholders, DDC Dolphin remains dedicated to ongoing investments across all facets of the business plan.

Principal risks and uncertainties

The group remains resilient through various risks and uncertainty with evolving global circumstances.  Supply chain stability, inflationary pressure, IT security and currency fluctuations remain areas of focus and action. 

 

The directors and management team have reviewed the various risks that are both continuing and emerging, acting and adjusting accordingly and the business will continue to assess and mitigate where possible. 

Key performance indicators

 

2023

2022

 

 

 

Turnover

£13,515,486

£11,462,825

Gross Profit

£5,604,979

£4,631,945

Gross Profit %

41.47%

40.41%

Profit / (loss) before tax

£962,288

£121,338

Profit / (loss) before tax %

7.12%

1.06%

 

Future business developments 

Recognising the rapid evolution of technology and systems, DDC Dolphin is proactively investing in a new IT platform. This strategic initiative aims to not only keep pace with technological advancements but also harness efficiencies and enhanced functionality, ensuring our operations remain agile and competitive in today's dynamic business landscape.

 

As part of a steadfast dedication to sustainability, DDC Dolphin remains committed to integrating environmentally responsible practices into operations. Looking ahead, the group is actively planning further accreditations starting in 2024, aligning with our core values and further reinforcing a commitment to sustainability.

 

DDC Dolphin firmly believe in the importance of quality and innovation. In line with this ethos, the group is passionately working on an exciting innovation roadmap featuring market-leading products and services scheduled for 2024 and beyond.

On behalf of the board

Mr. A S Hyde
Director
20 May 2024
DDC DOLPHIN HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the group continued to be that of the design, manufacture, sale and maintenance of equipment for the healthcare market.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £178,800. 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. M D Priest
Mr. A S Hyde
Ms. Z Allen
Mr. J Smith
Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.

Directors’ confirmations

In the case of each director in office at the date the directors’ report is approved:

 

On behalf of the board
Mr. A S Hyde
Director
20 May 2024
DDC DOLPHIN HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law).

Under company law, 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 the financial statements, the directors are required to:

The directors are responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are also responsible for keeping adequate accounting records that are sufficient to show and explain the group’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.

DDC DOLPHIN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DDC DOLPHIN HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of DDC Dolphin Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent 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 group's and 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 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:

DDC DOLPHIN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DDC DOLPHIN HOLDINGS LIMITED
- 6 -
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 their 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 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 parent 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.

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.

DDC DOLPHIN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DDC DOLPHIN HOLDINGS LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows;

 

To address the risk of fraud through management bias and override of controls, we:

DDC DOLPHIN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DDC DOLPHIN HOLDINGS LIMITED
- 8 -

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.

Mr Andrew Singleton (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
22 May 2024
Chartered Accountants
Statutory Auditor
37 Commercial Road
Poole
Dorset
BH14 0HU
DDC DOLPHIN HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
13,515,486
11,462,825
Cost of sales
(7,910,507)
(6,830,880)
Gross profit
5,604,979
4,631,945
Administrative expenses
(4,468,103)
(4,150,058)
Exceptional item
4
-
0
(225,363)
Operating profit
5
1,136,876
256,524
Interest receivable and similar income
83
46
Interest payable and similar expenses
8
(174,671)
(135,232)
Profit before taxation
962,288
121,338
Tax on profit
9
(176,735)
48,637
Profit for the financial year
785,553
169,975
Profit for the financial year is all attributable to the owners of the parent company.

The notes on pages 15 to 33 form part of these financial statements.

DDC DOLPHIN HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
703,859
719,396
Tangible assets
12
3,674,950
3,805,033
4,378,809
4,524,429
Current assets
Stocks
15
1,342,597
1,363,919
Debtors
17
2,130,126
2,725,360
Cash at bank and in hand
881,331
449,280
4,354,054
4,538,559
Creditors: amounts falling due within one year
18
(3,226,050)
(4,010,578)
Net current assets
1,128,004
527,981
Total assets less current liabilities
5,506,813
5,052,410
Creditors: amounts falling due after more than one year
19
(2,086,501)
(2,224,774)
Provisions for liabilities
Deferred tax liability
22
264,018
278,095
(264,018)
(278,095)
Net assets
3,156,294
2,549,541
Capital and reserves
Called up share capital
24
100
100
Other reserves
25
25
Profit and loss reserves
3,156,169
2,549,416
Total equity
3,156,294
2,549,541
The financial statements were approved by the board of directors and authorised for issue on 20 May 2024 and are signed on its behalf by:
20 May 2024
Mr. A S Hyde
Director
Company registration number 08065650 (England and Wales)
DDC DOLPHIN HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
400
400
Current assets
Debtors
17
100
100
Creditors: amounts falling due within one year
18
(362)
(362)
Net current liabilities
(262)
(262)
Net assets
138
138
Capital and reserves
Called up share capital
24
100
100
Profit and loss reserves
38
38
Total equity
138
138

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £178,800 (2022 - £193,800 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

 

The auditor's report was unqualified. The auditors were Azets Audit Services and Mr Andrew John Singleton FCCA signed the auditor's report as senior statutory auditor.

The financial statements were approved by the board of directors and authorised for issue on 20 May 2024 and are signed on its behalf by:
20 May 2024
Mr. A S Hyde
Director
Company registration number 08065650 (England and Wales)
DDC DOLPHIN HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
100
25
2,573,241
2,573,366
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
169,975
169,975
Dividends
10
-
-
(193,800)
(193,800)
Balance at 31 December 2022
100
25
2,549,416
2,549,541
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
785,553
785,553
Dividends
10
-
-
(178,800)
(178,800)
Balance at 31 December 2023
100
25
3,156,169
3,156,294
DDC DOLPHIN HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
38
138
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
193,800
193,800
Dividends
10
-
(193,800)
(193,800)
Balance at 31 December 2022
100
38
138
Year ended 31 December 2023:
Profit and total comprehensive income
-
178,800
178,800
Dividends
10
-
(178,800)
(178,800)
Balance at 31 December 2023
100
38
138
DDC DOLPHIN HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,204,430
832,039
Interest paid
(174,671)
(135,232)
Income taxes refunded
-
0
50,842
Net cash inflow from operating activities
1,029,759
747,649
Investing activities
Purchase of intangible assets
(88,686)
(40,941)
Proceeds on disposal of intangibles
6,035
820
Purchase of tangible fixed assets
(185,310)
(1,189,356)
Proceeds on disposal of tangible fixed assets
6,244
3,917
Interest received
83
46
Net cash used in investing activities
(261,634)
(1,225,514)
Financing activities
Proceeds of new bank loans
-
987,070
Repayment of bank loans
(107,171)
(8,899)
Payment of finance leases obligations
(232,193)
(246,348)
New finance obtained on finance leases obligations
182,090
264,878
Dividends paid to equity shareholders
(178,800)
(193,800)
Net cash (used in)/generated from financing activities
(336,074)
802,901
Net increase in cash and cash equivalents
432,051
325,036
Cash and cash equivalents at beginning of year
449,280
124,244
Cash and cash equivalents at end of year
881,331
449,280
DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

DDC Dolphin Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 37 Commercial Road, Poole, Dorset, BH14 0HU.

 

The group consists of DDC Dolphin Holdings Limited and all of its subsidiaries.

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
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company DDC Dolphin Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.5
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.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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

1.6
Research and development expenditure

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

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Development costs
5 years straight line
1.8
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% straight line - Land not depreciated
Plant and equipment
25% on reducing balance basis
Fixtures and fittings
25% on reducing balance basis
Business Development
33% on straight line basis
Motor vehicles
25% on reducing balance basis
Office Equipment
33% on straight line basis

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 recognised in the profit and loss account.

DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.11
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.

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.

DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.12
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.

1.13
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 group 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.

DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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 group 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 group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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 if, and only if, there is 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.

1.16
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.

1.17
Retirement benefits

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

1.18
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 leased asset are consumed.

1.19
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.

DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

Stock and Work in Progress (WIP)

 

Stock is held by the company and its recognised at the lower of cost and net realisable value within the financial statements. Any WIP ongoing over the year end on sub assemblies is included within stock at the same cost as the individual stock items.

 

Revenue Recognition

 

Revenue is recognised on dispatch of the machine and is recognised within the Profit and Loss account net of VAT, this is when the risks and rewards of ownership are deemed to come into effect.

 

Service income is invoiced yearly and is deferred over the period of which it relates to.

 

Warranty Provision (Accrual)

 

The directors have estimated the warranty provision based on the historic data of the warranty cost per machine sold and for claims‘ accepted by the company.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Machine and service income
13,515,486
11,462,825
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
13,515,486
11,462,825
2023
2022
£
£
Other revenue
Interest income
83
46
DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
4
Exceptional item
2023
2022
£
£
Expenditure
Exceptional administrative expenses
-
225,363
The above exceptional administrative costs include one off expenses related to restructuring in the prior year.
5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
34,331
(1,110)
Research and development costs
45,600
39,874
Depreciation of owned tangible fixed assets
171,659
57,934
Depreciation of tangible fixed assets held under finance leases
134,654
126,223
Loss on disposal of tangible fixed assets
2,836
41,816
Amortisation of intangible assets
98,188
79,875
Cost of stocks recognised as an expense
5,546,367
4,922,559
Operating lease charges
65,192
135,348
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
14
5
4
5
Production
59
62
-
-
Administration
38
25
-
-
Total
111
92
4
5

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,133,161
3,793,643
-
0
-
0
Social security costs
372,849
340,052
-
-
Pension costs
98,895
79,400
-
0
-
0
4,604,905
4,213,095
-
0
-
0
DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
7
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
28,975
23,650
28,975
23,650
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
130,566
111,404
Other finance costs:
Interest on finance leases and hire purchase contracts
44,105
23,828
Total finance costs
174,671
135,232
DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
9
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
176,735
(48,637)

The actual charge/(credit) 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
962,288
121,338
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
182,835
23,054
Tax effect of expenses that are not deductible in determining taxable profit
(1,062)
7,754
Tax effect of utilisation of tax losses not previously recognised
(145,017)
-
0
Unutilised tax losses carried forward
-
0
100,219
Permanent capital allowances in excess of depreciation
15,047
(63,443)
Research and development addtional deduction
(51,803)
(67,584)
Deferred taxation
176,735
(48,637)
Taxation charge/(credit)
176,735
(48,637)
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
178,800
193,800
DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
11
Intangible fixed assets
Group
Development costs
£
Cost
At 1 January 2023
1,204,088
Additions
88,686
Disposals
(6,035)
At 31 December 2023
1,286,739
Amortisation and impairment
At 1 January 2023
484,692
Amortisation charged for the year
98,188
At 31 December 2023
582,880
Carrying amount
At 31 December 2023
703,859
At 31 December 2022
719,396
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Business Development
Motor vehicles
Office Equipment
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
3,117,444
76,293
128,150
256,549
943,697
113,037
4,635,170
Additions
-
0
-
0
23,043
-
0
151,742
10,525
185,310
Disposals
-
0
-
0
-
0
-
0
(66,280)
-
0
(66,280)
At 31 December 2023
3,117,444
76,293
151,193
256,549
1,029,159
123,562
4,754,200
Depreciation and impairment
At 1 January 2023
19,841
73,166
71,870
171,570
392,317
101,373
830,137
Depreciation charged in the year
47,619
3,127
32,332
33,149
177,622
12,464
306,313
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(57,200)
-
0
(57,200)
At 31 December 2023
67,460
76,293
104,202
204,719
512,739
113,837
1,079,250
Carrying amount
At 31 December 2023
3,049,984
-
0
46,991
51,830
516,420
9,725
3,674,950
At 31 December 2022
3,097,603
3,127
56,280
84,979
551,380
11,664
3,805,033
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Tangible fixed assets
(Continued)
- 27 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
454,027
505,187
-
0
-
0
Business Development
35,052
55,979
-
0
-
0
489,079
561,166
-
-
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
400
400
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
400
Carrying amount
At 31 December 2023
400
At 31 December 2022
400
14
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
DDC Dolphin Limited
UK
Ordinary
100.00
DDC Dolphin International Limited
UK
Ordinary
100.00
Morgan Daniel Properties Limited
UK
Ordinary
100.00
Hygenex Ltd
UK
Ordinary
100.00
DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
1,047,355
1,058,824
-
-
Finished goods and goods for resale
295,242
305,095
-
0
-
0
1,342,597
1,363,919
-
-
16
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets measured at amortised cost
Trade debtors
1,419,171
1,723,485
-
0
-
0
Other debtors
533,386
601,384
100
100
1,952,557
2,324,869
100
100
Carrying amount of financial liabilities measured at amortised cost
Trade creditors
1,051,990
1,914,598
-
0
-
0
Bank loans and hire purchase
2,391,255
2,548,529
-
-
Other creditors
892,392
844,454
362
362
Accruals
317,682
372,342
-
0
-
0
4,653,319
5,679,923
362
362
DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,419,171
1,723,485
-
0
-
0
Other debtors
533,386
601,384
100
100
Prepayments and accrued income
145,357
177,467
-
0
-
0
2,097,914
2,502,336
100
100
Deferred tax asset (note 22)
-
0
73,537
-
0
-
0
2,097,914
2,575,873
100
100
Amounts falling due after more than one year:
Deferred tax asset (note 22)
32,212
149,487
-
0
-
0
Total debtors
2,130,126
2,725,360
100
100
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
21
113,628
107,453
-
0
-
0
Obligations under finance leases
20
191,126
216,302
-
0
-
0
Trade creditors
1,051,990
1,914,598
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
362
362
Other taxation and social security
336,780
277,713
-
-
Deferred income
322,452
277,716
-
0
-
0
Other creditors
892,392
844,454
-
0
-
0
Accruals and deferred income
317,682
372,342
-
0
-
0
3,226,050
4,010,578
362
362
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
1,920,302
2,033,648
-
0
-
0
Obligations under finance leases
20
166,199
191,126
-
0
-
0
2,086,501
2,224,774
-
-
DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Creditors: amounts falling due after more than one year
(Continued)
- 30 -

The Invoice financing, bank loans and obligations under finance leases and hire purchase contracts amounting to £3,148,548 (2022: £3,245,915) are secured by fixed and floating charges over the undertaking and all property and assets present and future including goodwill, book debts, uncalled capital, buildings, fixtures, fixed plant and machinery.

Amounts included above which fall due after five years are as follows:
Payable by instalments
1,396,519
1,538,441
-
-
20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
191,126
216,302
-
0
-
0
In two to five years
166,199
191,126
-
0
-
0
357,325
407,428
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate.

21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
2,033,930
2,141,101
-
0
-
0
Payable within one year
113,628
107,453
-
0
-
0
Payable after one year
1,920,302
2,033,648
-
0
-
0

The long-term loans are secured by fixed and floating charges over the business' assets

 

DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
22
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
264,018
278,095
-
-
Tax losses
-
-
32,212
223,024
264,018
278,095
32,212
223,024
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
55,071
-
Charge to profit or loss
176,735
-
Liability at 31 December 2023
231,806
-
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
98,895
79,400

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

Contributions totalling £27,241 (2022: £79,390) were payable to the fund at the reporting date and are included within creditors.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
25
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
47,806
38,551
-
-
Between two and five years
9,279
23,805
-
-
57,085
62,356
-
-
26
Related party transactions

DDC Canada

(Related party)

Amount due from DDC Canada at the balance sheet date was £531,640 (2022: £600,971).

27
Events after the reporting date

After the reporting date, Morgan Daniel Properties, a subsidiary, was removed from the DDC Dolphin Holdings Limited group during a restructure. The trade of the business was unaffected by this transaction.

28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
785,553
169,975
Adjustments for:
Taxation charged/(credited)
176,735
(48,637)
Finance costs
174,671
135,232
Investment income
(83)
(46)
Loss on disposal of tangible fixed assets
2,836
41,816
Amortisation and impairment of intangible assets
84,663
79,875
Depreciation and impairment of tangible fixed assets
306,313
184,157
Movements in working capital:
Decrease/(increase) in stocks
21,322
(97,848)
Decrease/(increase) in debtors
404,422
(391,304)
(Decrease)/increase in creditors
(796,738)
789,917
Increase/(decrease) in deferred income
44,736
(31,098)
Cash generated from operations
1,204,430
832,039
DDC DOLPHIN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
29
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
449,280
432,051
881,331
Borrowings excluding overdrafts
(2,141,101)
107,171
(2,033,930)
Obligations under finance leases
(407,428)
50,103
(357,325)
(2,099,249)
589,325
(1,509,924)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100Mr. M D PriestMr. A S HydeMs. Z AllenMr. J 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