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REGISTERED NUMBER: 03665031 (England and Wales)















GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2023

FOR

DISTAG HOLDINGS LTD

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 4

Consolidated Income Statement 8

Consolidated Other Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16


DISTAG HOLDINGS LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST DECEMBER 2023







DIRECTOR: J Deacon





SECRETARY: S Deacon





REGISTERED OFFICE: Unit 24 Farthing Road
Industrial Estate
Sproughton
Ipswich
Suffolk
IP1 5AP





REGISTERED NUMBER: 03665031 (England and Wales)





AUDITORS: Clemence Hoar Cummings
Chartered Accountants and Statutory Auditor
Riverside House
1-5 Como Street
Romford
Essex
RM7 7DN

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023


The Distag QCS Group is primarily an Importer and Distributor of engineering and associated components for Agricultural and Industrial machinery manufacturers in Ireland and UK. They also sell into the aftermarket through a network of authorised distributors. The group consists of two companies - Distag QCS Ltd, based in Tullow Co Carlow, which is the parent company; and Distag QCS (UK) Ltd, with it's registered office in Dungannon Northern Ireland, and with a second business unit in Ipswich UK.

REVIEW OF BUSINESS
The subjects of this audit Distag QCS (UK) Ltd and its holding company Distag Holdings Limited , has performed satisfactorily over the past financial year, showing sales growth of 6% YOY with profitability also up on previous years. This performance has left the business in a much stronger position to face what will undoubtedly be more difficult years ahead.

PRINCIPAL RISKS AND UNCERTAINTIES
The business has managed many different crisis over the past year's, however there are still a few very significant challenges, for Distag QCS (UK) Ltd and its customers
1. War in Ukraine & Middle East is continuing to cause uncertainty in the market place
2. Interest rates at such a high level are affecting new machinery sales.
3. General slowdown in manufacturing across UK & Ireland.

STRATEGY
We have set out the strategy and interim objectives to guide us through the next 4 years, and allow us take advantage of the opportunities, and continue to grow the business in line with our vision of reaching £24 million sales from Distag QCS (UK) by 2026.

ON BEHALF OF THE BOARD:





J Deacon - Director


10th September 2024

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

REPORT OF THE DIRECTOR
FOR THE YEAR ENDED 31ST DECEMBER 2023


The director presents his report with the financial statements of the company and the group for the year ended 31st December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31st December 2023.

DIRECTOR
J Deacon held office during the whole of the period from 1st January 2023 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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.

AUDITORS
The auditors, Clemence Hoar Cummings, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





J Deacon - Director


10th September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DISTAG HOLDINGS LTD


Opinion
We have audited the financial statements of Distag Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Income Statement, Consolidated Other 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 31st 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DISTAG HOLDINGS LTD


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 Director.

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 director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DISTAG HOLDINGS LTD


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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We have designed our work to ensure that laws and regulations have been adhered to, and the transactions undertaken by the company are properly reflected in the financial statements.

We have obtained a detailed understanding of the Company's internal control systems and we have used the knowledge gained to identify any areas of risk of mis-statement or fraud. We have then designed our audit tests in each area to identify whether in respect of the transactions we have selected for testing the relevant controls have operated as expected.

We plan our work specifically to identify any areas where there is a susceptibility to mis-statement or fraud such as understatement of income and then design tests to mitigate this risk. Our work includes a review of shipping terms for both sales and purchases to ensure that the cut-off for both sales and cost of sales is recorded correctly

We have evaluated the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.

We have concluded on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern

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.

We have then designed our audit tests in each area to identify whether in respect of the transactions we have selected for testing the relevant controls have operated as expected.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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
DISTAG HOLDINGS LTD


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.




Lee Blunden FCCA CTA (Senior Statutory Auditor)
for and on behalf of Clemence Hoar Cummings
Chartered Accountants and Statutory Auditor
Riverside House
1-5 Como Street
Romford
Essex
RM7 7DN

11th September 2024

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

CONSOLIDATED
INCOME STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023

Year Ended Period
31.12.23 1.4.22 to 31.12.22
Notes £    £    £    £   

TURNOVER 16,514,229 11,446,575

Cost of sales 11,409,565 7,561,532
GROSS PROFIT 5,104,664 3,885,043

Distribution costs 808,243 760,492
Administrative expenses 3,180,346 2,052,910
3,988,589 2,813,402
1,116,075 1,071,641

Other operating income 207,029 3,000
OPERATING PROFIT 4 1,323,104 1,074,641


Interest payable and similar expenses 5 147,794 97,250
PROFIT BEFORE TAXATION 1,175,310 977,391

Tax on profit 6 426,137 199,752
PROFIT FOR THE FINANCIAL YEAR 749,173 777,639
Profit attributable to:
Owners of the parent 749,173 777,639

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

CONSOLIDATED
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST DECEMBER 2023

Period
1.4.22
Year Ended to
31.12.23 31.12.22
Notes £    £   

PROFIT FOR THE YEAR 749,173 777,639


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

749,173

777,639

Total comprehensive income attributable to:
Owners of the parent 749,173 777,639

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

CONSOLIDATED BALANCE SHEET
31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 256,960 203,976
Investments 9 - -
Investment property 10 3,019,704 2,813,675
3,276,664 3,017,651

CURRENT ASSETS
Stocks 11 5,000,229 5,429,665
Debtors 12 2,130,695 2,506,013
Cash at bank and in hand 260,198 143,087
7,391,122 8,078,765
CREDITORS
Amounts falling due within one year 13 4,530,430 5,540,459
NET CURRENT ASSETS 2,860,692 2,538,306
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,137,356

5,555,957

CREDITORS
Amounts falling due after more than
one year

14

(636,057

)

(938,867

)

PROVISIONS FOR LIABILITIES 17 (180,158 ) (45,122 )
NET ASSETS 5,321,141 4,571,968

CAPITAL AND RESERVES
Called up share capital 18 230,000 230,000
Share premium 19 568,563 568,563
Retained earnings 19 4,522,578 3,773,405
SHAREHOLDERS' FUNDS 5,321,141 4,571,968

The financial statements were approved by the director and authorised for issue on 10th September 2024 and were signed by:





J Deacon - Director


DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

COMPANY BALANCE SHEET
31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 - -
Investments 9 38,555 38,555
Investment property 10 3,019,704 2,813,675
3,058,259 2,852,230

CURRENT ASSETS
Debtors 12 1,998 2,269
Cash at bank 19,535 8,180
21,533 10,449
CREDITORS
Amounts falling due within one year 13 1,846,372 1,988,320
NET CURRENT LIABILITIES (1,824,839 ) (1,977,871 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,233,420

874,359

CREDITORS
Amounts falling due after more than
one year

14

(200,000

)

(245,058

)

PROVISIONS FOR LIABILITIES 17 (118,281 ) -
NET ASSETS 915,139 629,301

CAPITAL AND RESERVES
Called up share capital 18 230,000 230,000
Share premium 19 47,820 47,820
Retained earnings 19 637,319 351,481
SHAREHOLDERS' FUNDS 915,139 629,301

Company's profit for the financial year 285,838 150,556

The financial statements were approved by the director and authorised for issue on 10th September 2024 and were signed by:





J Deacon - Director


DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1st April 2022 230,000 2,995,766 568,563 3,794,329

Changes in equity
Total comprehensive income - 777,639 - 777,639
Balance at 31st December 2022 230,000 3,773,405 568,563 4,571,968

Changes in equity
Total comprehensive income - 749,173 - 749,173
Balance at 31st December 2023 230,000 4,522,578 568,563 5,321,141

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1st April 2022 230,000 200,925 47,820 478,745

Changes in equity
Total comprehensive income - 150,556 - 150,556
Balance at 31st December 2022 230,000 351,481 47,820 629,301

Changes in equity
Total comprehensive income - 285,838 - 285,838
Balance at 31st December 2023 230,000 637,319 47,820 915,139

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023

Period
1.4.22
Year Ended to
31.12.23 31.12.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,621,920 856,945
Interest paid (147,794 ) (97,250 )
Tax paid (127,782 ) (2,280 )
Net cash from operating activities 1,346,344 757,415

Cash flows from investing activities
Purchase of tangible fixed assets (167,123 ) (64,091 )
Purchase of investment property - (318,971 )
Sale of tangible fixed assets - 10,085
Net cash from investing activities (167,123 ) (372,977 )

Cash flows from financing activities
Loan repayments in year (333,994 ) (238,530 )
Capital repayments in year (61,085 ) (39,878 )
Amount introduced by directors - 30,000
Amount withdrawn by directors (75,600 ) (64,800 )
(Decrease)/ increase in other creditors (685,607 ) (56,950 )
New finance leases 94,176 -
Net cash from financing activities (1,062,110 ) (370,158 )

Increase in cash and cash equivalents 117,111 14,280
Cash and cash equivalents at
beginning of year

2

143,087

128,807

Cash and cash equivalents at end
of year

2

260,198

143,087

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
Period
1.4.22
Year Ended to
31.12.23 31.12.22
£    £   
Profit before taxation 1,175,310 977,391
Depreciation charges 114,139 70,321
Gain on revaluation of fixed assets (206,029 ) -
Finance costs 147,794 97,250
1,231,214 1,144,962
Decrease/(increase) in stocks 429,436 (1,162,899 )
Decrease in trade and other debtors 375,318 588,044
(Decrease)/increase in trade and other creditors (414,048 ) 286,838
Cash generated from operations 1,621,920 856,945

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 31st December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 260,198 143,087
Period ended 31st December 2022
31.12.22 1.4.22
£    £   
Cash and cash equivalents 143,087 128,807


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 143,087 117,111 260,198
143,087 117,111 260,198
Debt
Finance leases (65,088 ) (33,091 ) (98,179 )
Debts falling due within 1 year (324,608 ) 101,266 (223,342 )
Debts falling due after 1 year (546,814 ) 232,728 (314,086 )
(936,510 ) 300,903 (635,607 )
Total (793,423 ) 418,014 (375,409 )

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023


1. STATUTORY INFORMATION

Distag Holdings Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

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 as modified by the revaluation of certain assets.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
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.
Improvements to property - Straight line over 5 years
Plant and machinery - 10% on cost and Straight line over 5 years
Fixtures and fittings - 15% on cost and Straight line over 5 years
Motor vehicles - 25% on cost and 25% on reducing balance
Computer equipment - 33% on cost

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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.

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


2. ACCOUNTING POLICIES - continued

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.

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.

3. EMPLOYEES AND DIRECTORS
Period
1.4.22
Year Ended to
31.12.23 31.12.22
£    £   
Wages and salaries 1,956,339 1,239,823
Social security costs 175,620 121,137
Other pension costs 48,743 32,741
2,180,702 1,393,701

The average number of employees during the year was as follows:
Period
1.4.22
Year Ended to
31.12.23 31.12.22

Staff employed 63 57

Period
1.4.22
Year Ended to
31.12.23 31.12.22
£    £   
Director's remuneration - -

4. OPERATING PROFIT

The operating profit is stated after charging:

Period
1.4.22
Year Ended to
31.12.23 31.12.22
£    £   
Depreciation - owned assets 67,826 34,721
Depreciation - assets on hire purchase contracts 46,313 32,715
Auditors remuneration 9,700 9,500
Auditors' remuneration for non audit work 5,347 5,500
Foreign exchange differences 29,554 27,179

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


5. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
1.4.22
Year Ended to
31.12.23 31.12.22
£    £   
Bank interest 147,794 97,250

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
Period
1.4.22
Year Ended to
31.12.23 21.12.22
£ £
Current tax:
Tax charge for the year 215,418 128,134
Adjustment to tax charge in respect of previous periods 75,683 -

Deferred taxation 135,036 71,618

Tax on profit 426,137 199,752

7. INDIVIDUAL INCOME STATEMENT

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


8. TANGIBLE FIXED ASSETS

Group
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1st January 2023 14,296 551,735 107,208
Additions - 77,399 44,097
Disposals - (202,300 ) (31,954 )
At 31st December 2023 14,296 426,834 119,351
DEPRECIATION
At 1st January 2023 13,650 421,780 65,362
Charge for year 646 71,814 21,496
Eliminated on disposal - (202,299 ) (31,954 )
At 31st December 2023 14,296 291,295 54,904
NET BOOK VALUE
At 31st December 2023 - 135,539 64,447
At 31st December 2022 646 129,955 41,846

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


8. TANGIBLE FIXED ASSETS - continued

Group

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1st January 2023 61,079 124,430 858,748
Additions 36,260 9,367 167,123
Disposals (20,109 ) (72,829 ) (327,192 )
At 31st December 2023 77,230 60,968 698,679
DEPRECIATION
At 1st January 2023 44,609 109,371 654,772
Charge for year 8,296 11,887 114,139
Eliminated on disposal (20,109 ) (72,830 ) (327,192 )
At 31st December 2023 32,796 48,428 441,719
NET BOOK VALUE
At 31st December 2023 44,434 12,540 256,960
At 31st December 2022 16,470 15,059 203,976

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1st January 2023 218,012 - 218,012
Additions 71,866 22,310 94,176
Transfer to ownership (32,784 ) - (32,784 )
At 31st December 2023 257,094 22,310 279,404
DEPRECIATION
At 1st January 2023 148,801 - 148,801
Charge for year 44,453 1,860 46,313
Transfer to ownership (27,486 ) - (27,486 )
At 31st December 2023 165,768 1,860 167,628
NET BOOK VALUE
At 31st December 2023 91,326 20,450 111,776
At 31st December 2022 69,211 - 69,211

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


9. FIXED ASSET INVESTMENTS

Company
Unlisted
investmen
£   
COST
At 1st January 2023
and 31st December 2023 38,555
NET BOOK VALUE
At 31st December 2023 38,555
At 31st December 2022 38,555


10. INVESTMENT PROPERTY

Group
Total
£   
FAIR VALUE
At 1st January 2023 2,813,675
Revaluations 206,029
At 31st December 2023 3,019,704
NET BOOK VALUE
At 31st December 2023 3,019,704
At 31st December 2022 2,813,675

Fair value at 31st December 2023 is represented by:
£   
Valuation in 2017 267,095
Valuation in 2023 206,029
Cost 2,546,580
3,019,704

Company
Total
£   
FAIR VALUE
At 1st January 2023 2,813,675
Revaluations 206,029
At 31st December 2023 3,019,704
NET BOOK VALUE
At 31st December 2023 3,019,704
At 31st December 2022 2,813,675

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


10. INVESTMENT PROPERTY - continued

Company

Fair value at 31st December 2023 is represented by:
£   
Valuation in 2017 267,095
Valuation in 2023 206,029
Cost 2,546,580
3,019,704

11. STOCKS

Group
2023 2022
£    £   
Stocks 4,429,462 4,982,027
Goods in transit 570,767 447,638
5,000,229 5,429,665

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 2,115,447 2,497,006 - -
VAT - - 1,998 2,269
Prepayments 15,248 9,007 - -
2,130,695 2,506,013 1,998 2,269

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 15)
223,342

324,608

39,104

77,386
Hire purchase contracts (see note 16) 42,089 47,429 - -
Sale financing 472,021 1,223,050 - -
Trade creditors 1,524,312 1,807,968 - 3,000
Amounts owed to group undertakings 711,700 711,700 1,741,356 1,872,884
Amounts owed to participating interests 471,760 406,338 - -
Taxation 291,454 128,135 60,812 29,949
Social security and other taxes 41,484 36,709 - -
VAT 359,714 216,899 - -
Other creditors - 225,024 - -
Directors' current accounts 195,600 271,200 - -
Accrued expenses 196,954 141,399 5,100 5,101
4,530,430 5,540,459 1,846,372 1,988,320

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


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

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans (see note 15) 314,086 546,814 - 45,058
Hire purchase contracts (see note 16) 56,090 17,659 - -
Other creditors 265,881 374,394 200,000 200,000
636,057 938,867 200,000 245,058

15. LOANS

An analysis of the maturity of loans is given below:

Group Company
2023 2022 2023 2022
£    £    £    £   
Amounts falling due within one year or on demand:
Bank loans - less than 1 yr 223,342 324,608 39,104 77,386
Amounts falling due between one and two years:
Bank loans - 1-2 years 154,082 227,184 - 45,058
Amounts falling due between two and five years:
Bank loans - 2-5 years 160,004 319,630 - -

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 42,089 47,429
Between one and five years 56,090 17,659
98,179 65,088

17. PROVISIONS FOR LIABILITIES

Group Company
2023 2022 2023 2022
£    £    £    £   
Deferred taxation 180,158 45,122 118,281 -

DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


17. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Balance at 1st January 2023 45,122
Charge to Income Statement during year 135,036
Balance at 31st December 2023 180,158

Company
Deferred
tax
£   
Charge to Income Statement during year 118,281
Balance at 31st December 2023 118,281

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
230,000 Ordinary 1 230,000 230,000

19. RESERVES

Group
Retained Share
earnings premium Totals
£    £    £   

At 1st January 2023 3,773,405 568,563 4,341,968
Profit for the year 749,173 749,173
At 31st December 2023 4,522,578 568,563 5,091,141

Company
Retained Share
earnings premium Totals
£    £    £   

At 1st January 2023 351,481 47,820 399,301
Profit for the year 285,838 285,838
At 31st December 2023 637,319 47,820 685,139


DISTAG HOLDINGS LTD (REGISTERED NUMBER: 03665031)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023


20. RELATED PARTY DISCLOSURES

The following sales to related parties took place during the period ended 31st December 2023.


Company Name

During

During
period to


As at


As at


2023

December
2022


31.12.23


31.12.22
£ £ £ £
Distag QCS Limited 659,504 444,381 27,157 2,183


The following purchases from related parties took place during the period ended 31st December 2023.


Company Name

During

During
period to


As at


As at


2023

December
2022


31.12.23


31.12.22
£ £ £ £
Distag QCS Limited 1,497,665 1,152,806 1,224,517 1,220,676
Quality Component Solutions
UK Limited

Nil


Nil


256,295


259,387

Distag Holdings Limited is the parent company of Distag QCS (UK) Limited and Distag QCS Limited is the ultimate controlling company. Quality Component Solutions (UK) Limited is a dormant company owned by Distag QCS (UK) Limited.

During the year £137,860 (period to December 2022: £88,971) was paid to two of the directors
and close family members in respect of consultancy services and salaries.

During the year £16,200 (period to December 2023: £12,264) was paid, in respect of rent to a partnership which is jointly controlled by the director.

During the year £42,000 (period to December 2022: £21,000) was paid, in respect of
management charges to Distag QCS ltd.

At the year end, the company owed £65,881 (December 2023: £174,394) to a shareholder of the parent company, Distag QCS Limited.