Company registration number SC269766 (Scotland)
DIESELEC THISTLE GENERATORS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
DIESELEC THISTLE GENERATORS LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23
DIESELEC THISTLE GENERATORS LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr Oliver Hall
(Appointed 1 November 2023)
Mr Alan Kirk
(Appointed 1 November 2023)
Mr James Rudman
(Appointed 1 November 2023)
Mr David Taylor
(Appointed 1 November 2023)
Mr Ivan Trevor
(Appointed 1 November 2023)
Company number
SC269766
Registered office
Cadder House
160 Clober Road
Milngavie
Glasgow
United Kingdom
G62 7LW
Auditor
Consilium Audit Limited
169 West George Street
Glasgow
Scotland
G2 2LB
DIESELEC THISTLE GENERATORS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2024
- 2 -
The directors present the strategic report for the period ended 31 March 2024.
Review of the business
The principal activity of the company is the sale, installation, commissioning and maintenance of emergency standby generators, gas to power generators, battery energy storage systems, EV charging and CHP.
The ultimate parent of the company, Dieselec Holdings Limited, was acquired by Flogas Britain Limited on 1 November 23. Flogas Britain Limited is a wholly owned subsidiary of DCC plc.
Our goal is to grow a sustainable business that is focused on meeting the needs of our customers and employees and we continued to make progress on this during the year - supporting our customers to transition to cleaner energy solutions whilst focusing on health and safety and the wellbeing of our people.
We are seeing strong demand for our sustainable energy products as customers seek solutions to the increased cost of energy whilst reducing their carbon footprint. The war in Ukraine further exacerbated volatility in the energy sector and supply chain. This uncertainty in the energy markets has driven further significant demand for our innovative new gas powered generators which provide energy security and use gas as a transitional fuel to reduce exhaust emissions, carbon footprint and cost.
The results are for the nine-month period to 31 March 24, and this change to our financial year end brings our reporting in line with our new parent company. The results are not easily compared to the 12 months to June 23 as our activity can vary significantly month on month, but we have continued the growth we saw in the previous period and have exited the financial year with over 20% growth in our order book when compared to 30 June 2023.
Key performance indicators
The company's key performance indicators are turnover, profit for the year, cashflow and health and saftey performance.
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Net cash inflow/(outflow) | | | |
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Future developments
Following the acquisition of the business by Flogas Britain Limited, we expect to see a significant increase in sales of our gas generators as well as helping our customers to switch away from diesel to Hydrotreated Vegetable Oil (HVO).
Mr Oliver Hall
Director
26 August 2024
DIESELEC THISTLE GENERATORS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the period ended 31 March 2024.
Principal activities
The principal activity of the company is the sale, installation, commissioning and maintenance of emergency standby generators, gas to power generators, battery energy storage systems, EV charging and CHP.
Results and dividends
The results for the period are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr Oliver Hall
(Appointed 1 November 2023)
Mr Alan Kirk
(Appointed 1 November 2023)
Mr James Rudman
(Appointed 1 November 2023)
Mr David Taylor
(Appointed 1 November 2023)
Mr Ivan Trevor
(Appointed 1 November 2023)
Mr B Aitken
(Resigned 1 November 2023)
Mr G Kerr
(Resigned 1 November 2023)
Mr B Aitken
(Resigned 1 November 2023)
Mr Ian Buchan
(Resigned 1 November 2023)
Mr P Moore
(Resigned 1 November 2023)
Mr B Muirie
(Resigned 1 November 2023)
Mr James Pirrie
(Resigned 1 November 2023)
Mr John Pirrie
(Resigned 1 November 2023)
Auditor
Consilium Audit Limited were appointed as auditor to the company and are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s 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.
DIESELEC THISTLE GENERATORS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr Oliver Hall
Director
26 August 2024
DIESELEC THISTLE GENERATORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DIESELEC THISTLE GENERATORS LIMITED
- 5 -
Opinion
We have audited the financial statements of Dieselec Thistle Generators Limited (the 'company') for the period ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
DIESELEC THISTLE GENERATORS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DIESELEC THISTLE GENERATORS LIMITED
- 6 -
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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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:
We ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
We identified the laws and regulations applicable to the company through discussions with directors and management and from our knowledge of the regulatory environment relevant to the company.
We assessed the extent of compliance with laws and regulations through making enquiries of management and inspecting legal correspondence.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud.
To address the risk of fraud through management bias and override of controls, we tested journal entries to identify unusual transactions, we assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias and we investigated the rationale behind significant or unusual transactions.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence.
Material misstatements that arise due to fraud can be harder to detect than those arise from error as they may involve deliberate concealment or collusion.
DIESELEC THISTLE GENERATORS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DIESELEC THISTLE GENERATORS LIMITED
- 7 -
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.
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.
David Holt
Senior Statutory Auditor
For and on behalf of Consilium Audit Limited
Statutory Auditor
169 West George Street
Glasgow
Scotland
G2 2LB
28 August 2024
DIESELEC THISTLE GENERATORS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2024
- 8 -
Period
Year
ended
ended
31 March
30 June
2024
2023
Notes
£
£
Turnover
3
17,962,337
26,503,328
Cost of sales
(13,894,723)
(19,457,786)
Gross profit
4,067,614
7,045,542
Administrative expenses
(4,199,004)
(4,771,434)
Other operating income
485,527
12,638
Operating profit
4
354,137
2,286,746
Interest receivable and similar income
7
53,207
23,797
Interest payable and similar expenses
8
(2,043)
(12,983)
Amounts written off investments
9
(2)
-
Profit before taxation
405,299
2,297,560
Tax on profit
10
(108,763)
(221,677)
Profit for the financial period
296,536
2,075,883
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 11 to 23 form part of these financial statements.
DIESELEC THISTLE GENERATORS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
31 March 2024
30 June 2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
4,653
Tangible assets
13
693,757
701,345
Investments
14
2
693,757
706,000
Current assets
Stocks
15
3,492,034
2,129,648
Debtors
16
12,128,975
8,565,599
Cash at bank and in hand
2,342,732
3,313,144
17,963,741
14,008,391
Creditors: amounts falling due within one year
17
(13,296,876)
(9,636,959)
Net current assets
4,666,865
4,371,432
Total assets less current liabilities
5,360,622
5,077,432
Creditors: amounts falling due after more than one year
18
(5,047)
Provisions for liabilities
Deferred tax liability
19
131,645
139,944
(131,645)
(139,944)
Net assets
5,228,977
4,932,441
Capital and reserves
Called up share capital
21
2
2
Profit and loss reserves
5,228,975
4,932,439
Total equity
5,228,977
4,932,441
The notes on pages 11 to 23 form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 26 August 2024 and are signed on its behalf by:
Mr Oliver Hall
Director
Company Registration No. SC269766
DIESELEC THISTLE GENERATORS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
2
3,256,556
3,256,558
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
2,075,883
2,075,883
Dividends
11
-
(400,000)
(400,000)
Balance at 30 June 2023
2
4,932,439
4,932,441
Period ended 31 March 2024:
Profit and total comprehensive income for the period
-
296,536
296,536
Balance at 31 March 2024
2
5,228,975
5,228,977
The notes on pages 11 to 23 form part of these financial statements.
DIESELEC THISTLE GENERATORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Company information
Dieselec Thistle Generators Limited is a private company limited by shares incorporated in Scotland. The registered office is Cadder House, 160 Clober Road, Milngavie, Glasgow, United Kingdom, G62 7LW. The company's registration number is SC269766.
1.1
Reporting period
The current period covers the 9 months to 31 March 2024. The prior period covers the 12 months to 30 June 2023.
1.2
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of DCC Plc. These consolidated financial statements are available from its registered office DCC House, Leopardstown Road, Foxrock, Co Dublin, Ireland.
1.3
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.
DIESELEC THISTLE GENERATORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Turnover
Revenue is attributable to the one continuing activity, the sale, installation, commissioning and maintenance of generators.
Revenue is recognised when there is an arrangement, primarily in the form of a contract or purchase order, with the customer, a fixed or determinable sale price is established with the customer, performance requirements are achieved, and it is probable that economic benefits associated with the transactions will flow to the company.
Revenue is recognised as performance requirements are achieved in accordance with the following:
Revenue from sales of equipment is recognised at the time title to the equipment and significant risks and rewards of ownership passes to the customer. This is generally a the time of shipment of the product to the customer.
Revenue from product support includes sales of parts and servicing of equipment. For sales of parts, revenue is recognised when the part is shipped to the customer. For servicing of equipment, revenue is recognised as the work is performed; and
Revenue is recognised on bill and hold arrangements when the buyer takes title, provided:
it is probable that delivery will be made;
the item is on hand, identified and ready for delivery to the buyer at the time the sale is recognised;
the buyer specifically acknowledges the deferred delivery instructions; and
the usual payment terms apply.
Revenue is measure at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales taxes or duty.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.6
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:
Leasehold improvements
6.67% to 33.3%
Plant and equipment
10% to 20%
Motor vehicles
25%
Office Equipment
25%
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 the profit and loss account.
DIESELEC THISTLE GENERATORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
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.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs incurred in bringing each product to its present location and condition, as follows:
Consumables and goods for resale - purchase cost on a first in, first out basis
Work in progress - cost of direct materials and labour plus attributable overheads based on a normal level of activity
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 the profit and loss account. Reversals of impairment losses are also recognised in the profit and loss account.
1.9
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.
1.10
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.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
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.
DIESELEC THISTLE GENERATORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value, and are depreciated in accordance with the above depreciation policies.
Future instalments payable under such agreements, net of finance charges, are included within creditors. Rentals payable are apportioned between the capital element, which reduces the outstanding obligation included within creditors, and the finance element, which is charged to the profit and loss account on a straight line basis.
Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.16
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
DIESELEC THISTLE GENERATORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.17
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 the profit and loss account.
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue recognition on long term contracts
The amount of revenue recognised on long-term contracts and the amount of profit taken is based on how complete the contract is. Estimates are made when calculating the completion percentage for these contracts.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
17,962,337
26,503,328
2024
2023
£
£
Turnover analysed by geographical market
UK & Europe
17,565,316
26,229,958
Rest of the World
397,021
273,370
17,962,337
26,503,328
DIESELEC THISTLE GENERATORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 16 -
4
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange gains
(18,735)
Government grants
(200)
(2,375)
Fees payable to the company's auditor for the audit of the company's financial statements
22,500
27,163
Depreciation of owned tangible fixed assets
182,162
192,571
Depreciation of tangible fixed assets held under finance leases
-
16,832
Loss/(profit) on disposal of tangible fixed assets
15,530
(43,498)
Amortisation of intangible assets
4,653
4,654
Operating lease charges
475,997
477,552
5
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2024
2023
Directors
5
4
Sales
14
9
Operations
69
62
Administration
9
6
Total
97
81
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
4,487,270
4,032,039
Social security costs
390,022
412,425
Pension costs
95,868
113,862
4,973,160
4,558,326
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
74,398
368,290
Company pension contributions to defined contribution schemes
2,232
12,974
76,630
381,264
DIESELEC THISTLE GENERATORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
6
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
n/a
121,230
Company pension contributions to defined contribution schemes
n/a
3,600
As total directors' remuneration was less than £200,000 in the current period, no disclosure is provided for that period.
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
53,207
17,710
Other interest income
6,087
Total income
53,207
23,797
8
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
2,043
1,867
Other interest
11,116
2,043
12,983
9
Amounts written off investments
2024
2023
£
£
Loss on disposal of fixed asset investments
(2)
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
118,501
185,936
Adjustments in respect of prior periods
(1,439)
(205,895)
Total current tax
117,062
(19,959)
DIESELEC THISTLE GENERATORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
10
Taxation
2024
2023
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
(8,299)
(27,395)
Adjustment in respect of prior periods
269,031
Total deferred tax
(8,299)
241,636
Total tax charge
108,763
221,677
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
405,299
2,297,560
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
101,325
471,000
Tax effect of expenses that are not deductible in determining taxable profit
1,656
2,366
Unutilised tax losses carried forward
(45,641)
Adjustments in respect of prior years
(201,445)
Effect of change in corporation tax rate
(2,021)
Group relief
(99,340)
Research and development tax credit
(178,379)
Under/(over) provided in prior years
(1,439)
Deferred tax adjustments in respect of prior years
269,031
Fixed asset differences
7,221
6,106
Taxation charge for the period
108,763
221,677
Research and development expenditure credits (RDEC) of £136,393 were receivable during the period and are included in other income (2023: £nil).
11
Dividends
2024
2023
£
£
Final paid
100,000
Interim paid
300,000
-
400,000
DIESELEC THISTLE GENERATORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 19 -
12
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2023 and 31 March 2024
55,238
Amortisation and impairment
At 1 July 2023
50,585
Amortisation charged for the period
4,653
At 31 March 2024
55,238
Carrying amount
At 31 March 2024
At 30 June 2023
4,653
13
Tangible fixed assets
Leasehold improvements
Plant and equipment
Motor vehicles
Office Equipment
Total
£
£
£
£
£
Cost
At 1 July 2023
384,238
1,020,937
173,047
240,563
1,818,785
Additions
6,922
149,046
11,479
22,656
190,103
Disposals
(11,271)
(20,848)
(5,288)
(37,407)
At 31 March 2024
379,889
1,149,135
184,526
257,931
1,971,481
Depreciation and impairment
At 1 July 2023
295,297
494,630
124,343
203,170
1,117,440
Depreciation charged in the period
20,344
127,226
14,051
20,541
182,162
Eliminated in respect of disposals
(9,634)
(8,756)
(3,488)
(21,878)
At 31 March 2024
306,007
613,100
138,394
220,223
1,277,724
Carrying amount
At 31 March 2024
73,882
536,035
46,132
37,708
693,757
At 30 June 2023
88,941
526,307
48,704
37,393
701,345
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and equipment
55,824
DIESELEC THISTLE GENERATORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 20 -
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
2
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023
2
Disposals
(2)
At 31 March 2024
-
Carrying amount
At 31 March 2024
-
At 30 June 2023
2
The investment in subsidiaries relates to Thistle Generators Limited and Dieselec Generators. Both entities were dissolved 6th February 2024.
15
Stocks
2024
2023
£
£
Work in progress
2,714,787
1,047,396
Finished goods and goods for resale
777,247
1,082,252
3,492,034
2,129,648
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
6,236,125
3,815,621
Corporation tax recoverable
298,334
Amounts owed by group undertakings
4,184,039
2,133,832
Other debtors
138,642
319,395
Prepayments and accrued income
1,570,169
1,998,417
12,128,975
8,565,599
DIESELEC THISTLE GENERATORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 21 -
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
18,543
Trade creditors
5,211,759
4,274,977
Amounts owed to group undertakings
196,167
Corporation tax
137,092
Other taxation and social security
304,491
138,019
Other creditors
404,445
62,482
Accruals and deferred income
7,239,089
4,946,771
13,296,876
9,636,959
Hire purchase creditors were secured against the assets to which they relate.
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
5,047
Hire purchase creditors were secured against the assets to which they relate.
19
Deferred taxation
The following are the major deferred tax liabilities recognised by the company and movements thereon:
2024
2023
Balances:
£
£
Accelerated capital allowances
147,093
143,491
Pension contributions
(15,448)
(3,547)
131,645
139,944
2024
Movements in the period:
£
Liability at 1 July 2023
139,944
Credit to profit or loss
(8,299)
Liability at 31 March 2024
131,645
DIESELEC THISTLE GENERATORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 22 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
95,868
113,862
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.
21
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
2 Ordinary shares of £1
2
2
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
413,547
268,146
Between two and five years
955,145
546,594
In over five years
854,859
495,955
2,223,551
1,310,695
23
Related party transactions
Transactions with related parties
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Other information
No further transactions with related parties were undertaken such as are required to be disclosed under the provisions of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
DIESELEC THISTLE GENERATORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 23 -
24
Ultimate controlling party
The immediate parent company is Dieselec Holdings Limited.
Following the acquisition of the shares in the immediate parent company on 1 November 2023, the directors regard DCC plc, a company registered in the Republic of Ireland, as the ultimate parent company. The smallest and largest group of undertakings which the company is consolidated for which group financial statements are prepared is DCC plc. Copies of the consolidated financial statements may be obtained from The Secretary, DCC plc, DCC House, Leopardstown Road, Foxrock, Co Dublin, Ireland.
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