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REGISTERED NUMBER: SC584425 (Scotland)















Group Strategic Report, Report of the Directors and

Audited Consolidated Financial Statements for the Year Ended 31 December 2023

for

Demco Group Limited

Demco Group Limited (Registered number: SC584425)






Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2023




Page

Group Strategic Report 1

Report of the Directors 2

Report of the Independent Auditors 4

Consolidated Statement of Comprehensive Income 7

Consolidated Balance Sheet 8

Company Balance Sheet 9

Consolidated Statement of Changes in Equity 10

Company Statement of Changes in Equity 11

Consolidated Cash Flow Statement 12

Notes to the Consolidated Cash Flow Statement 13

Notes to the Consolidated Financial Statements 14


Demco Group Limited (Registered number: SC584425)

Group Strategic Report
for the Year Ended 31 December 2023

The directors present their strategic report of the company and the group for the year ended 31 December 2023.

REVIEW OF BUSINESS
The directors are happy to report another successful year for the group.

The group has generated £17,356,330 (2022: £13,321,606) of turnover due to excellent products and customer service. The group has generated £3,822,314 (2022: £3,526,029) of profits before tax to give satisfactory results.

At the period end the group had net assets of £12,269,791 (2022: £10,739,073) including distributable profits of £12,269,691 (2022: £10,738,973). The directors therefore believe the group's position to be satisfactory, especially as the group's current assets exceed its current liabilities by £8,298,034 (2022: £7,156,981).

The directors believe that there is a strong foundation to build the business further and improve on the current period's results.

PRINCIPAL RISKS AND UNCERTAINTIES
The directors have assessed the main standard risk facing the group as being increased competition from other national companies. The directors believe that the quality of our products and customer service will help mitigate these risks going forward.

ON BEHALF OF THE BOARD:





Mr M Rabey - Director


15 August 2024

Demco Group Limited (Registered number: SC584425)

Report of the Directors
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of manufacture and sale of antibacterial wipes and sale of stone products.

DIVIDENDS
The total distribution of dividends for the period ended 31 December 2023 will be £1,334,900.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Mr P Rabey
Mr M Rabey
Mr E Rabey
Mr D Rabey

Other changes in directors holding office are as follows:

Mr C Rabey - deceased 18 August 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

Demco Group Limited (Registered number: SC584425)

Report of the Directors
for the Year Ended 31 December 2023


AUDITORS
Drummond Laurie CA are deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:





Mr M Rabey - Director


15 August 2024

Report of the Independent Auditors to the Members of
Demco Group Limited

Opinion
We have audited the financial statements of Demco Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year 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.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Demco Group Limited


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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' 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 Statement of Directors' Responsibilities set out on page two, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

Based on our understanding of the group, we identified that the principal risks of non-compliance with laws and regulations related to fraudulent manipulation of the financial statements, including the risk of override of controls, to reduce profits and tax liabilities. We determined that the most likely method of manipulation would be the posting of inappropriate journal entries. Audit procedures performed by the audit engagement team consisted of a review of large and unusual journal entries, challenging assumptions and judgements made by management in significant accounting estimates, discussions with management related to known or suspected instances of non-compliance with laws and regulations, review of Board minutes where available, and an evaluation of management controls designed to prevent and detect irregularities.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Demco Group Limited


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 a Report of the Auditors 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.




Greig Brown (Senior Statutory Auditor)
for and on behalf of Drummond Laurie CA
Statutory Auditor
Unit 5
Gateway Business Park
Beancross Road
Grangemouth
FK3 8WX

28 August 2024

Demco Group Limited (Registered number: SC584425)

Consolidated Statement of Comprehensive Income
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   

TURNOVER 3 17,356,330 13,321,606

Cost of sales (9,100,355 ) (7,187,474 )
GROSS PROFIT 8,255,975 6,134,132

Administrative expenses (4,499,760 ) (2,733,198 )
3,756,215 3,400,934

Other operating income 16,100 -
OPERATING PROFIT 5 3,772,315 3,400,934

Interest receivable and similar income 65,163 126,548
3,837,478 3,527,482

Interest payable and similar expenses 6 (15,164 ) (1,453 )
PROFIT BEFORE TAXATION 3,822,314 3,526,029

Tax on profit 7 (956,696 ) (674,244 )
PROFIT FOR THE FINANCIAL YEAR 2,865,618 2,851,785

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,865,618

2,851,785

Profit attributable to:
Owners of the parent 2,865,618 2,545,197
Non-controlling interests - 306,588
2,865,618 2,851,785

Total comprehensive income attributable to:
Owners of the parent 2,865,618 2,545,197
Non-controlling interests - 306,588
2,865,618 2,851,785

Demco Group Limited (Registered number: SC584425)

Consolidated Balance Sheet
31 December 2023

31.12.23 31.12.22
Notes £    £   
FIXED ASSETS
Intangible assets 10 1,515,126 1,703,856
Tangible assets 11 2,566,805 2,445,549
Investments 12 - -
Investment property 13 - -
4,081,931 4,149,405

CURRENT ASSETS
Stocks 14 3,061,984 2,414,995
Debtors 15 5,007,637 3,603,229
Cash at bank 3,587,790 3,914,273
11,657,411 9,932,497
CREDITORS
Amounts falling due within one year 16 (3,359,377 ) (2,775,516 )
NET CURRENT ASSETS 8,298,034 7,156,981
TOTAL ASSETS LESS CURRENT
LIABILITIES

12,379,965

11,306,386

CREDITORS
Amounts falling due after more than one
year

17

(12,116

)

(424,708

)

PROVISIONS FOR LIABILITIES 21 (98,058 ) (142,605 )
NET ASSETS 12,269,791 10,739,073

CAPITAL AND RESERVES
Called up share capital 22 100 100
Retained earnings 23 12,269,691 10,738,973
SHAREHOLDERS' FUNDS 12,269,791 10,739,073

The financial statements were approved by the Board of Directors and authorised for issue on 15 August 2024 and were signed on its behalf by:





Mr M Rabey - Director


Demco Group Limited (Registered number: SC584425)

Company Balance Sheet
31 December 2023

31.12.23 31.12.22
Notes £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 41,489 53,527
Investments 12 2,375,300 2,375,300
Investment property 13 1,891,447 1,575,587
4,308,236 4,004,414

CURRENT ASSETS
Debtors 15 2,429,888 2,228,275
Cash at bank 2,952,788 2,626,279
5,382,676 4,854,554
CREDITORS
Amounts falling due within one year 16 (1,023,297 ) (1,295,565 )
NET CURRENT ASSETS 4,359,379 3,558,989
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,667,615

7,563,403

CREDITORS
Amounts falling due after more than one
year

17

(12,116

)

(424,708

)

PROVISIONS FOR LIABILITIES 21 (9,191 ) (12,125 )
NET ASSETS 8,646,308 7,126,570

CAPITAL AND RESERVES
Called up share capital 22 100 100
Retained earnings 23 8,646,208 7,126,470
SHAREHOLDERS' FUNDS 8,646,308 7,126,570

Company's profit for the financial year 2,854,638 4,491,902

The financial statements were approved by the Board of Directors and authorised for issue on 15 August 2024 and were signed on its behalf by:





Mr M Rabey - Director


Demco Group Limited (Registered number: SC584425)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Non-controlling Total
capital earnings Total interests equity
£    £    £    £    £   
Balance at 1 January 2022 100 8,586,576 8,586,676 1,307,577 9,894,253

Changes in equity
Dividends - (392,800 ) (392,800 ) (422,000 ) (814,800 )
Total comprehensive income - 2,545,197 2,545,197 306,588 2,851,785
100 10,738,973 10,739,073 1,192,165 11,931,238
Acquisition of non-controlling
interest

-

-

-

(1,192,165

)

(1,192,165

)
Balance at 31 December 2022 100 10,738,973 10,739,073 - 10,739,073

Changes in equity
Dividends - (1,334,900 ) (1,334,900 ) - (1,334,900 )
Total comprehensive income - 2,865,618 2,865,618 - 2,865,618
Balance at 31 December 2023 100 12,269,691 12,269,791 - 12,269,791

Demco Group Limited (Registered number: SC584425)

Company Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 100 3,027,368 3,027,468

Changes in equity
Dividends - (392,800 ) (392,800 )
Total comprehensive income - 4,491,902 4,491,902
Balance at 31 December 2022 100 7,126,470 7,126,570

Changes in equity
Dividends - (1,334,900 ) (1,334,900 )
Total comprehensive income - 2,854,638 2,854,638
Balance at 31 December 2023 100 8,646,208 8,646,308

Demco Group Limited (Registered number: SC584425)

Consolidated Cash Flow Statement
for the Year Ended 31 December 2023

31.12.23 31.12.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,368,545 3,478,381
Interest paid (14,954 ) (600 )
Interest element of hire purchase payments
paid

(210

)

(853

)
Tax paid (879,165 ) (414,786 )
Net cash from operating activities 1,474,216 3,062,142

Cash flows from investing activities
Purchase of tangible fixed assets (761,448 ) (350,440 )
Sale of tangible fixed assets 282,660 22,344
Sale of fixed asset investments - 329,287
Purchase of minority interest shares - (2,375,050 )
Interest received 65,163 126,548
Net cash from investing activities (413,625 ) (2,247,311 )

Cash flows from financing activities
New loans in year - 11,300
Loan repayments in year (53,592 ) -
Capital repayments in year (1,282 ) (5,124 )
Amount introduced by directors 2,700 -
Amount withdrawn by directors - (654,604 )
Dividends to minority interests - (422,000 )
Equity dividends paid (1,334,900 ) (392,800 )
Net cash from financing activities (1,387,074 ) (1,463,228 )

Decrease in cash and cash equivalents (326,483 ) (648,397 )
Cash and cash equivalents at beginning of
year

2

3,914,273

4,562,670

Cash and cash equivalents at end of year 2 3,587,790 3,914,273

Demco Group Limited (Registered number: SC584425)

Notes to the Consolidated Cash Flow Statement
for the Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.12.23 31.12.22
£    £   
Profit before taxation 3,822,314 3,526,029
Depreciation charges 640,323 296,527
Profit on disposal of fixed assets (94,061 ) (332,024 )
Finance costs 15,164 1,453
Finance income (65,163 ) (126,548 )
4,318,577 3,365,437
(Increase)/decrease in stocks (646,989 ) 122,554
(Increase)/decrease in trade and other debtors (1,404,408 ) 472,408
Increase/(decrease) in trade and other creditors 101,365 (482,018 )
Cash generated from operations 2,368,545 3,478,381

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 3,587,790 3,914,273
Year ended 31 December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 3,914,273 4,562,670


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank 3,914,273 (326,483 ) 3,587,790
3,914,273 (326,483 ) 3,587,790
Debt
Finance leases (1,282 ) 1,282 -
Debts falling due within 1 year (53,592 ) 48,000 (5,592 )
Debts falling due after 1 year (17,708 ) 5,592 (12,116 )
(72,582 ) 54,874 (17,708 )
Total 3,841,691 (271,609 ) 3,570,082

Demco Group Limited (Registered number: SC584425)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Demco Group Limited is a private company, limited by shares, domiciled in Scotland, registration number SC584425. The registered office is Spectrum House, South View, Dales Industrial Estate, Peterhead, AB42 3JF.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation
The consolidated financial statements incorporate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and written off over five years from the year of acquisition. The results of companies acquired or disposed of are included in the profit and loss account after or up to the date that control passes respectively. As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

Related party exemption
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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Turnover
Turnover represents net invoiced sales of cleaning wipes and stone, excluding value added tax. Sales are recognised at the point at which the goods are delivered.

Goodwill
Goodwill, being the amount paid in connection with the acquisitions of businesses in 2019 and 2022, is being amortised evenly over its estimated useful life of 10 years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets and depreciation
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - 2% on cost
Plant and machinery - 25% on cost and 20% on cost
Fixtures and fittings - 20% on cost
Motor vehicles - 20% on cost
Computer equipment - 20% on cost

Tangible fixed assets are stated at cost less depreciation. Cost represent purchase price together with any incidental costs of acquisition.

The directors have considered the residual value of all tangible fixed assets to be immaterial and therefore all tangible fixed assets are depreciated to nil value.

Demco Group Limited (Registered number: SC584425)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is represented by purchase price.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Provisions
Provisions are recognised when the company has a legal or constructive obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Provisions are discounted where the time value of money is material.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Demco Group Limited (Registered number: SC584425)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand and highly liquid interest-bearing securities with maturities of three months or less. In the cash-flow statement, cash and cash equivalents are shown net of bank overdrafts, which are included as current borrowings in liabilities on the balance sheet.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

31.12.23 31.12.22
£    £   
United Kingdom 14,176,498 11,393,680
Europe 2,455,332 1,486,148
Rest of World 724,500 441,778
17,356,330 13,321,606

4. EMPLOYEES AND DIRECTORS
31.12.23 31.12.22
£    £   
Wages and salaries 2,464,945 1,794,246
Social security costs 271,112 177,087
Other pension costs 30,865 25,464
2,766,922 1,996,797

The average number of employees during the year was as follows:
31.12.23 31.12.22

Employees 59 53

The average number of employees by undertakings that were proportionately consolidated during the year was 49 (2022 - 43 ) .

31.12.23 31.12.22
£    £   
Directors' remuneration 54,000 42,000

Demco Group Limited (Registered number: SC584425)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.12.23 31.12.22
£    £   
Other operating leases 45,651 21,165
Depreciation - owned assets 450,568 387,584
Depreciation - assets on hire purchase contracts 1,025 2,186
Profit on disposal of fixed assets (94,061 ) (332,024 )
Goodwill amortisation 185,218 (96,755 )
Patents and licences amortisation 3,512 3,512
Auditors' remuneration 36,025 34,585
Foreign exchange differences (2,512 ) 3,677

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.23 31.12.22
£    £   
CT interest 14,905 -
Loan interest 49 600
Hire purchase 210 853
15,164 1,453

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.23 31.12.22
£    £   
Current tax:
UK corporation tax 1,001,243 713,908

Deferred tax (44,547 ) (39,664 )
Tax on profit 956,696 674,244

Demco Group Limited (Registered number: SC584425)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.23 31.12.22
£    £   
Profit before tax 3,822,314 3,526,029
Profit multiplied by the standard rate of corporation tax in the UK of
23.521 % (2022 - 19 %)

899,046

669,946

Effects of:
Expenses not deductible for tax purposes 22,533 10,340
Income not taxable for tax purposes (18,061 ) (31,896 )
Depreciation in excess of capital allowances 95,148 43,988
Research and development deduction - (5,058 )
Deferred tax movement (44,547 ) (39,664 )
lower rate
European losses (used)/not used (15,181 ) 26,588
Chargeable gains 17,758 -
Total tax charge 956,696 674,244

8. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


9. DIVIDENDS
31.12.23 31.12.22
£    £   
Ordinary A-J shares of £1 each
Final 1,334,900 392,800

Demco Group Limited (Registered number: SC584425)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

10. INTANGIBLE FIXED ASSETS

Group
Patents
and
Goodwill licences Totals
£    £    £   
COST
At 1 January 2023
and 31 December 2023 1,682,885 35,115 1,718,000
AMORTISATION
At 1 January 2023 3,245 10,899 14,144
Amortisation for year 185,218 3,512 188,730
At 31 December 2023 188,463 14,411 202,874
NET BOOK VALUE
At 31 December 2023 1,494,422 20,704 1,515,126
At 31 December 2022 1,679,640 24,216 1,703,856

11. TANGIBLE FIXED ASSETS

Group
Fixtures
Freehold Plant and and
property machinery fittings
£    £    £   
COST
At 1 January 2023 1,575,587 1,477,578 98,145
Additions 495,860 95,563 39,465
Disposals (180,000 ) - (910 )
At 31 December 2023 1,891,447 1,573,141 136,700
DEPRECIATION
At 1 January 2023 113,759 832,916 36,704
Charge for year 36,923 305,259 22,408
Eliminated on disposal (20,700 ) - -
At 31 December 2023 129,982 1,138,175 59,112
NET BOOK VALUE
At 31 December 2023 1,761,465 434,966 77,588
At 31 December 2022 1,461,828 644,662 61,441

Demco Group Limited (Registered number: SC584425)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

11. TANGIBLE FIXED ASSETS - continued

Group

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 January 2023 326,799 25,982 3,504,091
Additions 119,726 10,834 761,448
Disposals (33,795 ) - (214,705 )
At 31 December 2023 412,730 36,816 4,050,834
DEPRECIATION
At 1 January 2023 55,571 19,592 1,058,542
Charge for year 80,298 6,705 451,593
Eliminated on disposal (5,406 ) - (26,106 )
At 31 December 2023 130,463 26,297 1,484,029
NET BOOK VALUE
At 31 December 2023 282,267 10,519 2,566,805
At 31 December 2022 271,228 6,390 2,445,549

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 January 2023 20,495
Transfer to ownership (20,495 )
At 31 December 2023 -
DEPRECIATION
At 1 January 2023 11,751
Charge for year 1,025
Transfer to ownership (12,776 )
At 31 December 2023 -
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 8,744

Demco Group Limited (Registered number: SC584425)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

11. TANGIBLE FIXED ASSETS - continued

Company
Fixtures
and Motor
fittings vehicles Totals
£    £    £   
COST
At 1 January 2023 24,691 49,185 73,876
Additions 1,945 - 1,945
Disposals (910 ) - (910 )
At 31 December 2023 25,726 49,185 74,911
DEPRECIATION
At 1 January 2023 11,332 9,017 20,349
Charge for year 5,040 8,033 13,073
At 31 December 2023 16,372 17,050 33,422
NET BOOK VALUE
At 31 December 2023 9,354 32,135 41,489
At 31 December 2022 13,359 40,168 53,527

12. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 2,375,300
NET BOOK VALUE
At 31 December 2023 2,375,300
At 31 December 2022 2,375,300

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Nuvik Global Limited
Registered office: Infinity House, Unit 11 Commerce Way, Leighton Buzzard, LU7 4RW
Nature of business: Manufacture and sale of cleaning wipes
%
Class of shares: holding
Ordinary 100.00

Demco Group Limited (Registered number: SC584425)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

12. FIXED ASSET INVESTMENTS - continued

Nuvik UK Ltd
Registered office: Infinity House, Unit 11 Commerce Way, Leighton Buzzard, LU7 4RW
Nature of business: Sale of cleaning wipes
%
Class of shares: holding
Ordinary 100.00

Caledonian Global Ltd
Registered office: Spectrum House South View, Dales Industrial Estate, Peterhead, AB42 3JF
Nature of business: Stone supplier
%
Class of shares: holding
Ordinary 100.00

Nuvik Europe SAS
Registered office: Zac des Folliouses, Rue des Monts d'Or, 01700 Miribel, France
Nature of business: Sale of cleaning wipes
%
Class of shares: holding
Ordinary 100.00


13. INVESTMENT PROPERTY
Company
Total
£   
FAIR VALUE
At 1 January 2023 1,575,587
Additions 495,860
Disposals (180,000 )
At 31 December 2023 1,891,447
NET BOOK VALUE
At 31 December 2023 1,891,447
At 31 December 2022 1,575,587

14. STOCKS

Group
31.12.23 31.12.22
£    £   
Stocks 3,061,984 2,414,995

Demco Group Limited (Registered number: SC584425)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.12.23 31.12.22 31.12.23 31.12.22
£    £    £    £   
Trade debtors 4,321,886 3,166,598 3,353 -
Amounts owed by group undertakings - - 1,919,517 1,961,866
Amounts owed by related parties 482,423 377,868 392,218 253,459
Other debtors 93,499 - 93,499 -
Prepayments and accrued income 109,829 58,763 21,301 12,950
5,007,637 3,603,229 2,429,888 2,228,275

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
31.12.23 31.12.22 31.12.23 31.12.22
£    £    £    £   
Other loans (see note 18) 5,592 53,592 5,592 53,592
Hire purchase contracts (see note 19) - 1,282 - -
Trade creditors 841,904 380,246 36,621 51,577
Tax 559,987 437,909 7,375 82,182
Social security and other taxes 22,067 20,077 182 178
VAT 548,615 472,805 6,570 39,035
Other creditors 407,000 504,000 407,000 504,000
Directors' current accounts 546,180 543,480 546,180 543,480
Accruals and deferred income 428,032 362,125 13,777 21,521
3,359,377 2,775,516 1,023,297 1,295,565

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
31.12.23 31.12.22 31.12.23 31.12.22
£    £    £    £   
Other loans (see note 18) 12,116 17,708 12,116 17,708
Other creditors - 407,000 - 407,000
12,116 424,708 12,116 424,708

Demco Group Limited (Registered number: SC584425)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

18. LOANS

An analysis of the maturity of loans is given below:

Group Company
31.12.23 31.12.22 31.12.23 31.12.22
£    £    £    £   
Amounts falling due within one year or on demand:
Other loans 5,592 53,592 5,592 53,592
Amounts falling due between one and two years:
Other loans - 1-2 years 5,592 5,592 5,592 5,592
Amounts falling due between two and five years:
Other loans - 2-5 years 6,524 12,116 6,524 12,116

19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
31.12.23 31.12.22
£    £   
Net obligations repayable:
Within one year - 1,282

20. SECURED DEBTS

The following secured debts are included within creditors:

Group
31.12.23 31.12.22
£    £   
Hire purchase contracts - 1,282

Hire purchase contracts are secured on the assets to which they relate.

21. PROVISIONS FOR LIABILITIES

Group Company
31.12.23 31.12.22 31.12.23 31.12.22
£    £    £    £   
Deferred tax 98,058 142,605 9,191 12,125

Demco Group Limited (Registered number: SC584425)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

21. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Balance at 1 January 2023 142,605
Provided during year (44,547 )
Balance at 31 December 2023 98,058

Company
Deferred
tax
£   
Balance at 1 January 2023 12,125
Provided during year (2,934 )
Balance at 31 December 2023 9,191

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.23 31.12.22
value: £    £   
100 Ordinary A-J £1 100 100

23. RESERVES

Group
Retained
earnings
£   

At 1 January 2023 10,738,973
Profit for the year 2,865,618
Dividends (1,334,900 )
At 31 December 2023 12,269,691

Company
Retained
earnings
£   

At 1 January 2023 7,126,470
Profit for the year 2,854,638
Dividends (1,334,900 )
At 31 December 2023 8,646,208


24. RELATED PARTY DISCLOSURES

Demco Group Limited (Registered number: SC584425)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

24. RELATED PARTY DISCLOSURES - continued

Other related parties
31.12.23 31.12.22
£    £   
Interest received 53,900 120,822
Amount due from related party 482,423 377,868

25. ULTIMATE CONTROLLING PARTY

The group is under the control of the Board of Directors.