Company Registration No. 06338794 (England and Wales)
DJWM LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Gravita II LLP
30 City Road
London
EC1Y 2AB
DJWM LIMITED
COMPANY INFORMATION
Directors
Mr Saul Djanogly
Mrs Anne Djanogly
Secretary
Mrs Anne Djanogly
Company number
06338794
Registered office
C/O Sobell Rhodes LLP
The Kinetic Centre
Theobald Street
Elstree, Borehamwood
Hertfordshire
United Kingdom
WD6 4PJ
Accountants
Sobell Rhodes LLP
The Kinetic Centre
Theobald Street
Elstree, Borehamwood
Hertfordshire
United Kingdom
Auditor
Gravita II LLP
30 City Road
London
EC1Y 2AB
DJWM LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 9
Profit and loss account
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 23
DJWM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activity

The principal activity of the company continued to be that of fund management activities.

Fair Review of the Business

Business in 2023 was satisfactory. Despite the challenges brought by Covid-19, DJWM continued to benefit from recovering markets during the latter part of the year, as shown in the company’s profit and loss account on page 10.

The company’s turnover has decreased by 7%, admin expenses increased by 2.3% in 2023. This resulted in the company maintained a net profit margin percentage of 54%.

The company is continually looking to grow its client base and increase revenues whilst providing an excellent service to our existing clients.

 

The company's key financial and other performance indicators during the year were as follows:

Unit 2023 2022

Turnover £ 887,072 957,684

Gross Profit £ 868,910 938,692

Gross Profit Margin % 98 98

Profit before tax £ 477,932 559,580

Principal risks and uncertainties

The company’s fees are to a large extent based on the level of the markets. The principal risks to the company are a fall in global stock markets and the loss of large clients. The company manages the latter risk by maintaining close and strong relationships with its clients. A fall in global stock markets would likely reduce profitability for the short to mid-term, but should not affect the long term profitability of the company. A capital reserve is held to mitigate against market downturns.

 

DJWM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Promoting the Success of the Company

In line with Companies (Miscellaneous Reporting) Regulations 2018, the Directors of the Company are required to give an annual statement on how they have discharged their duty under section 172 of the Companies Act 2006 to promote the success of the Company for the benefit of its members as a whole and with regard to broader stakeholder interests. This section of the Strategic Report states how the Directors have had regard to the matters set out in section 172 1) (a) to (f) during the year as required by section 414CZA, of the Companies Act 2006.

The Company is a privately owned business and the Board of the Company undertakes engagement activities with its non-executive employees and external stakeholders.

The Company has identified its stakeholders as being its clients, employees, suppliers and the financial institutions which provide custodian services for the company’s clients.

The Directors acknowledge the effective and meaningful engagement with stakeholders and employees is key to promoting the success of the Company. Details of the action taken to support these objectives are set out as follows:

On behalf of the board

Mr Saul Djanogly
Director
23 April 2024
DJWM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £363,000. The directors do not recommend payment of a final dividend.

Directors

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

Mr Saul Djanogly
Mr Aaron Djanogly
(Resigned 12 April 2023)
Mrs Anne Djanogly
Financial instruments
Objectives and policies

The company holds or issues financial instruments in order to achieve one main objective, being:

(a) to meet the Financial Conduct Authority’s regulatory capital requirements;

In addition, various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company's operations.

Price risk, credit risk, liquidity risk and cash flow risk

The directors recognise that within the businesses there are a number of risks which may affect the performance of the company. These risks are subject to regular review and where appropriate processes established to minimise the level of exposure.

 

-Credit risk

The company does not have a significant exposure to credit risk, as all amounts due to the company are paid directly from client’s portfolios.

 

-Liquidity risk

The company's risk to liquidity is a result of funds available to cover future commitments. The company manages liquidity risk through an ongoing review of cash flows, as well as holding a liquidity reserve of greater than 3 months expenses.

Frequency of disclosure

Future disclosures will be issued on an annual basis.

Verification

These disclosures have been prepared and set out in order to comply with the FCA’s regulatory requirements and provide information on the firm’s risk management policies and certain capital requirements. They do not constitute financial statements and are based on unaudited financial positions and should not be relied upon in isolation when making judgements about the firm.

Location

This report may be published in our published accounts or website as appropriate.

Scope and application of the requirements

The firm is authorised and regulated by the Financial Conduct Authority (“FCA”) to conduct investment business. We do not hold client money. The Firm is categorised as a Limited Licence firm by the FCA for capital purposes.

DJWM LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Going concern

At the time of approving the Financial Statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the Financial Statements.

Employee involvement

The Company has adopted policies in relation to the Company's remuneration arrangements which address potential conflicts of interest arising from such arrangements by taking into account the controls in place to guard against the Company’s authorised persons being rewarded for taking inappropriate levels of risk.

 

The Company is satisfied that the policies in place are appropriate to its size, internal organization and the nature, scope and complexity of its activities.

The aim of the Remuneration Code (the “Code”) is to ensure that companies incentivise their staff and how these incentive arrangements align and support a healthy culture to encourage positive outcomes.

 

Under the Remuneration Code, the Company is classified as a “MIFIDPRU firm”. A MIFIDPRU investment firm’s remuneration policy must be appropriate and proportionate to the nature, scale and complexity of the risks that exist in the business model and activities of the business.

 

Companies are required to disclosure their remuneration policy and practices, as well as aggregate quantitative disclosure for staff assessed as having a material impact on its risk profile, including senior management (“Code Staff”).

Decision Making Process

The Company’s Remuneration Policy is set by the directors of the Company. The Company has assessed its members and staff and concludes that 2 members of staff qualify as Code Staff. Each year the Company assesses the amount of capital it considers necessary to run its business and if necessary uses some or all of the profits available to increase its capital resources.

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.

DJWM LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
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.

Risk appetite and management

We are exposed to a variety of risks, as analysed and quantified below. However, the Board have adopted a conservative approach to risk, resulting in a low risk profile, for the following reasons:

 

• The business model is straightforward agency investment management. As principal positions are not taken, our exposure is limited and no additional capital is necessary greater than the minimum capital resource requirement;

 

• The recruitment of high quality experienced personnel;

 

• The corporate governance structure ensures that responsibilities within the firm are apportioned with all oversights and key control functions staffed by experienced personnel with direct and unfettered access to Senior Management;

 

Material risks

The material risk for the firm are as follows:

 

Operational risk

 

• Claims on the business as a result of failure to adhere to regulatory requirements, to provide agreed service level for clients, or dealing errors.

 

• Steps have been taken to identify, mitigate and manage these risks and these are included in the document.

 

Risk management is a fundamental part of the day to day management of the firm. This applies to our implementation of operational procedures to ensure that the risks associated with the provision of investment management services are mitigated by appropriate controls and processes and to our considered approach to stock selection and daily management of the investment portfolios managed for clients.

 

The Board meets routinely quarterly, or as and when necessary, and has primary responsibility for governance and oversight of the firm. The Compliance Officer provides oversight of our risk management process and controls, and has overseen the development of the internal Compliance and Risk regime.

 

Operational, market, credit and regulatory risks are reviewed regularly by the Compliance Officer.

On behalf of the board
Mr Saul Djanogly
Director
23 April 2024
DJWM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DJWM LIMITED
- 6 -
Opinion

We have audited the financial statements of DJWM Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including 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. However, because not all future events or conditions can be predicted this statement is not a guarantee as to the company's ability to continue as a going concern

 

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

DJWM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DJWM LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

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:

 

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.

DJWM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DJWM LIMITED
- 8 -
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

 

The extent to which the audit was considered capable of detecting irregularities including fraud

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

 

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

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

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

DJWM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DJWM LIMITED
- 9 -

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment by for example forgery, or intentional misrepresentation or through collusion. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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.

Sarah Wilson (FCA) (Senior Statutory Auditor)
For and on behalf of Gravita II LLP
24 April 2024
Chartered Accountants
Statutory Auditor
30 City Road
London
EC1Y 2AB
DJWM LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
2
887,072
957,684
Cost of sales
(18,162)
(18,992)
Gross profit
868,910
938,692
Administrative expenses
(392,394)
(383,575)
Other operating income
2
-
0
4,463
Operating profit
4
476,516
559,580
Interest receivable and similar income
6
1,416
-
0
Profit before taxation
477,932
559,580
Tax on profit
8
(112,472)
(106,423)
Profit for the financial year
365,460
453,157

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

DJWM LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
118
216
Current assets
Debtors
11
228,992
256,727
Cash at bank and in hand
128,484
91,707
357,476
348,434
Creditors: amounts falling due within one year
12
(250,095)
(243,600)
Net current assets
107,381
104,834
Total assets less current liabilities
107,499
105,050
Provisions for liabilities
Deferred tax liability
13
30
41
(30)
(41)
Net assets
107,469
105,009
Capital and reserves
Called up share capital
15
57,717
57,717
Profit and loss reserves
49,752
47,292
Total equity
107,469
105,009
The financial statements were approved by the board of directors and authorised for issue on 23 April 2024 and are signed on its behalf by:
Mr Saul Djanogly
Director
Company registration number 06338794 (England and Wales)
DJWM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
57,717
174,135
231,852
Year ended 31 December 2022:
Profit and total comprehensive income
-
453,157
453,157
Dividends
9
-
(580,000)
(580,000)
Balance at 31 December 2022
57,717
47,292
105,009
Year ended 31 December 2023:
Profit and total comprehensive income
-
365,460
365,460
Dividends
9
-
(363,000)
(363,000)
Balance at 31 December 2023
57,717
49,752
107,469
DJWM LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
18
504,792
572,312
Income taxes paid
(106,431)
(107,139)
Net cash inflow from operating activities
398,361
465,173
Investing activities
Purchase of tangible fixed assets
-
0
(112)
Proceeds on disposal of tangible fixed assets
-
0
586
Interest received
1,416
-
0
Net cash generated from investing activities
1,416
474
Financing activities
Dividends paid
(363,000)
(580,000)
Net cash used in financing activities
(363,000)
(580,000)
Net increase/(decrease) in cash and cash equivalents
36,777
(114,353)
Cash and cash equivalents at beginning of year
91,707
206,060
Cash and cash equivalents at end of year
128,484
91,707
DJWM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

DJWM Limited is a private company limited by shares incorporated in England and Wales. The registered office is C/O Sobell Rhodes LLP, The Kinetic Centre, Theobald Street, Elstree, Borehamwood, Hertfordshire, United Kingdom, WD6 4PJ.

 

The principal place of business is Flat 3 Oakdale Lodge, 131 Holdershill Road NW4 1 LH.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

These financial statements have been prepared using the historical cost convention.

1.2
Going concern

At the time of approving the Financial Statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the Financial Statementstrue.

1.3
Turnover

Turnover comprises the fair value of the consideration received or receivable for the provision of fund management activity services in the ordinary course of the Company’s activities. Turnover is shown net of value added tax.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
33% on cost
Office equipment
33% on cost

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
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

DJWM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

1.6
Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

1.7
Financial instruments
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

If the recoverable amount of the asset (or asset’s cash generating unit) is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the profit and loss account, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation.

Thereafter any excess is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.

DJWM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial assets and financial liabilities are recognised in the Balance Sheet when the company becomes a party to the contractual provisions of the instrument.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

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

1.9
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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

DJWM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.11
Retirement benefits

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

1.12
Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

1.13
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.14
Foreign exchange

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

1.15

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

1.16

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

1.17

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

2
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sale of Services, UK
887,072
957,684
DJWM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Turnover and other revenue
(Continued)
- 18 -
2023
2022
£
£
Other significant revenue
Interest income
1,416
-
Grants received
-
4,463
3
Employees

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

2023
2022
Number
Number
Administration and support
4
6

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
75,936
84,432
Social security costs
3,116
1,222
Pension costs
61,302
81,372
140,354
167,026
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
1
368
Government grants
-
(4,463)
Auditor's remuneration - The audit of the company's annual accounts
9,300
8,720
Depreciation of owned tangible fixed assets
98
63
Profit on disposal of tangible fixed assets
-
(586)
Operating lease expense - other
15,000
15,000
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
9,300
8,720
DJWM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,416
-
0
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,416
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
19,600
23,100
Company pension contributions to defined contribution schemes
60,000
80,000
79,600
103,100
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
112,505
106,453
Adjustments in respect of prior periods
(22)
-
0
Total current tax
112,483
106,453
Deferred tax
Origination and reversal of timing differences
(11)
(30)
Total tax charge
112,472
106,423
DJWM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 20 -

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK of 25% from 1st April 2023 and before 1st April 2023 was 19 %.

 

2023
2022
£
£
Profit before taxation
477,932
559,580
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
112,412
106,320
Effect of expense not deductible in determining taxable profit
37
117
Tax increase from effect of capital allowances and depreciation
23
16
Tax decrease from other short-term timing differences
-
0
(30)
Taxation charge for the year
112,472
106,423
9
Dividends
2023
2022
£
£
Interim paid
363,000
580,000
10
Tangible fixed assets
Fixtures and fittings
Office equipment
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
557
3,661
4,218
Depreciation and impairment
At 1 January 2023
557
3,445
4,002
Depreciation charged in the year
-
0
98
98
At 31 December 2023
557
3,543
4,100
Carrying amount
At 31 December 2023
-
0
118
118
At 31 December 2022
-
0
216
216
DJWM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
149,456
168,676
Other debtors
8,750
8,750
Prepayments and accrued income
70,786
79,301
228,992
256,727
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
36,552
23,635
Corporation tax
112,505
106,453
Other taxation and social security
33,354
37,199
Other creditors
51,596
58,530
Accruals and deferred income
16,088
17,783
250,095
243,600
13
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Defered tax
30
41
2023
Movements in the year:
£
Liability at 1 January 2023
41
Credit to profit or loss
(11)
Liability at 31 December 2023
30

 

DJWM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
61,302
81,372

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

 

 

15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
57,717
57,717
57,717
57,717
16
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
79,600
103,100
Other information

Dividends of £363,000 (2022 - £580,000) were paid during the year to a director of the Company.


There was no consultancy fees paid to DJAN Consultants Ltd. One of the directors is also a director and shareholder of this related company. The balance due from DJAN Consultants Ltd at the year end 31 December 2023 is £8,750.

 

Consultancy fees of £92,073 (2022 - £ 98,462) were paid to Investment Fitness Israel Ltd. One of the directors is also a director and shareholder of this related company. The balance due to Investment Fitness Israel Ltd at the year end 31 December 2023 is £31,273 (2022 - £ 18,051).

 

At balance sheet date, the directors were owed £34,985 (2022 - £57,284) and close family members of the director's were owed £14,317.

 

 

17
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
91,707
36,777
128,484
DJWM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
18
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
365,460
453,157
Adjustments for:
Taxation charged
112,472
106,423
Investment income
(1,416)
-
0
Gain on disposal of tangible fixed assets
-
(586)
Depreciation and impairment of tangible fixed assets
98
63
Movements in working capital:
Decrease in debtors
27,735
22,588
Increase/(decrease) in creditors
443
(9,333)
Cash generated from operations
504,792
572,312
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