Dahabshiil Transfer Services Limited
Annual Report and Financial Statements
For the year ended 31 December 2023
Company Registration No. 03538207 (England and Wales)
Dahabshiil Transfer Services Limited
Company Information
Directors
A.M.S Duale
J.A. Bradley
A.S Osman
S.Y. Elmi
(Appointed 4 April 2023)
Secretary
Bird & Bird Company Secretaries Ltd
Company number
03538207
Registered office
12 New Fetter Lane
London
EC4A 1JP
Auditors
Moore Kingston Smith LLP
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Business address
85 Sidney Street
London
E1 2FN
Dahabshiil Transfer Services Limited
Contents
Page
Directors' report
1 - 2
Independent auditor's report
3 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 16
Dahabshiil Transfer Services Limited
Directors' Report
For the year ended 31 December 2023
Page 1

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

Principal activities
The principal activity of the company throughout the year was that of a money transfer business.
Directors

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

A.M.S Duale
J.A. Bradley
A.S Osman
S.Y. Elmi
(Appointed 4 April 2023)
Auditor

The auditors, Moore Kingston Smith LLP, 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:

 

 

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.

Dahabshiil Transfer Services Limited
Directors' Report (Continued)
For the year ended 31 December 2023
Page 2
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.

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

On behalf of the board
J.A. Bradley
Director
29 August 2024
Dahabshiil Transfer Services Limited
Independent Auditor's Report
To the Members of Dahabshiil Transfer Services Limited
Page 3
Opinion

We have audited the financial statements of Dahabshiil Transfer Services Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, the Balance Sheet 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Dahabshiil Transfer Services Limited
Independent Auditor's Report (Continued)
To the Members of Dahabshiil Transfer Services Limited
Page 4

Opinions on other matters prescribed by the Companies Act 2006

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

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 directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Dahabshiil Transfer Services Limited
Independent Auditor's Report (Continued)
To the Members of Dahabshiil Transfer Services Limited
Page 5
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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

 

Dahabshiil Transfer Services Limited
Independent Auditor's Report (Continued)
To the Members of Dahabshiil Transfer Services Limited
Page 6

Explanation as to what extent 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, 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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Dahabshiil Transfer Services Limited
Independent Auditor's Report (Continued)
To the Members of Dahabshiil Transfer Services Limited
Page 7

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.

Steven Rushmer
Senior Statutory Auditor
for and on behalf of Moore Kingston Smith LLP
6 September 2024
Chartered Accountants
Statutory Auditor
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Dahabshiil Transfer Services Limited
Statement of Income and Retained Earnings
For the year ended 31 December 2023
Page 8
2023
2022
Notes
£
£
Turnover
5,060,185
5,160,669
Cost of sales
(2,415,342)
(2,259,056)
Gross profit
2,644,843
2,901,613
Administrative expenses
(2,575,398)
(2,481,459)
Operating profit
69,445
420,154
Interest payable and similar expenses
(5,345)
-
0
Profit before taxation
64,100
420,154
Tax on profit
3
(21,280)
(92,272)
Profit for the financial year
42,820
327,882
Retained earnings brought forward
655,636
327,754
Retained earnings carried forward
698,456
655,636
Dahabshiil Transfer Services Limited
Balance Sheet
As at 31 December 2023
Page 9
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
175,390
78,899
Investment properties
5
197,768
140,000
Investments
6
240,881
172,697
614,039
391,596
Current assets
Debtors
8
2,083,991
2,330,553
Cash at bank and in hand
2,943,057
2,930,097
5,027,048
5,260,650
Creditors: amounts falling due within one year
9
(3,463,626)
(3,533,363)
Net current assets
1,563,422
1,727,287
Total assets less current liabilities
2,177,461
2,118,883
Provisions for liabilities
(34,005)
(18,247)
Net assets
2,143,456
2,100,636
Capital and reserves
Called up share capital
11
1,445,000
1,445,000
Profit and loss reserves
698,456
655,636
Total equity
2,143,456
2,100,636

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

The financial statements were approved by the board of directors and authorised for issue on 29 August 2024 and are signed on its behalf by:
J.A. Bradley
Director
Company Registration No. 03538207
Dahabshiil Transfer Services Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 10
1
Accounting policies
Company information

Dahabshiil Transfer Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is 12 New Fetter Lane, London, EC4A 1JP and their business address is 85 Sidney Street, London, E1 2FN.

1.1
Accounting convention

These financial statements have been prepared in accordance with Section 1A FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and at least 12 months following the date of approval of these financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover
Turnover represents commissions receivable by the company.
1.4
Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Leasehold improvements
Over the term of the lease
Plant and machinery
3 years straight line
Fixtures, fittings & equipment
3 years straight line
Motor vehicles
3 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.

Dahabshiil Transfer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 11
1.6
Fixed asset investments

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

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

1.7
Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held at call with banks.

1.8
Financial instruments

All of the company's financial assets and liabilities are basic and measured at amortised cost.

1.9
Equity instruments

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

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

1.10
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.

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.

1.11
Retirement benefits

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

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

Dahabshiil Transfer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 12
1.13
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
2
Employees

The average monthly number of persons (including directors) employed by the company during the year was 31 (2022: 28).

3
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
5,522
93,941
Deferred tax
Origination and reversal of timing differences
15,758
(1,669)
Total tax charge
21,280
92,272
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
165,501
553,281
718,782
Additions
-
0
182,668
182,668
Disposals
-
0
(401,790)
(401,790)
At 31 December 2023
165,501
334,159
499,660
Depreciation and impairment
At 1 January 2023
165,501
474,382
639,883
Depreciation charged in the year
-
0
86,177
86,177
Eliminated in respect of disposals
-
0
(401,790)
(401,790)
At 31 December 2023
165,501
158,769
324,270
Carrying amount
At 31 December 2023
-
0
175,390
175,390
At 31 December 2022
-
0
78,899
78,899
Dahabshiil Transfer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 13
5
Investment property
2023
£
Fair value
At 1 January 2023
140,000
Additions
57,768
At 31 December 2023
197,768

The property was valued to open market value which the directors consider to be materially correct at the balance sheet date. The purchase price of the property was £130,996 and total cost to date is £188,734.

 

6
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
240,881
172,697
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
172,697
Additions
68,184
At 31 December 2023
240,881
Carrying amount
At 31 December 2023
240,881
At 31 December 2022
172,697

During the year, the company purchased the remaining 20% of the share capital of Dalmar Money Transfer AS for £68,184.

7
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
Dahabshiil Financial Transfers Inc
Canada
Ordinary
100.00
Dalmar Money Transfer AS
Norway
Ordinary
100.00
Dahabshiil Transfer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 14
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,071,055
1,148,412
Corporation tax recoverable
9,370
167,331
Other debtors
1,003,566
1,014,810
2,083,991
2,330,553

Included within other debtors is £5,460 (2022: £505) due from the Directors of the company.

9
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
165,874
232,991
Corporation tax
5,522
251,901
Other taxation and social security
-
0
4,912
Other creditors
3,220,508
3,003,094
Accruals and deferred income
71,722
40,465
3,463,626
3,533,363

The amounts owed at the year end relating to the pension creditors was £nil (2022: £4,912).

 

T.C. Ziraat Bankasi A.S. holds a fixed and floating charge with a negative pledge over the assets of the company.

10
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
ACAs
34,005
18,247
Dahabshiil Transfer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
10
Deferred taxation
(Continued)
Page 15
2023
Movements in the year:
£
Liability at 1 January 2023
18,247
Charge to profit or loss
15,758
Liability at 31 December 2023
34,005
11
Called up share capital
2023
2022
Ordinary share capital
£
£
Issued and fully paid
Ordinary shares of £1 each
1,445,000
1,445,000

Ordinary shares hold voting rights, a right to dividends and a right to participate in distributions should the company be wound up.

12
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
120,280
61,752
Between two and five years
447,787
164,064
In over five years
-
0
20,280
568,067
246,096
13
Related party transactions

The company has taken the exemption available to not disclose transactions with 100% owned subsidiaries.

 

Included within other creditors is £3,220,013 (2022: £3,002,599), a company related by common ownership, Dahabshiil PVT Limited. The balance is interest free and at call. During the year, commissions totalling £912,969 (2022: £899,619) were paid to the company.

 

The company paid rent of £33,333 (2022: £nil) to Dahabshiil Group Holdings Limited, a company related by common ownership,

Dahabshiil Transfer Services Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 16
14
Parent company

The parent company is Dahabshiil Holdings Limited, Company No: 05011753, a company incorporated in England & Wales. The accounts of Dahabshiil Holdings Limited can be obtained from 12 New Fetter Lane, London, EC4A 1JP.

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