Company registration number 04528786 (England and Wales)
Datagraphic Holdings Limited
Annual Report and Financial Statements
for the year ended 31 December 2023
Datagraphic Holdings Limited
Company Information
Directors
R G King
E Wells
Secretary
R G King
Company number
04528786
Registered office
Ireland Industrial Estate
Adelphi Way
Staveley
Chesterfield
Derbyshire
S43 3LS
Auditor
B M Howarth Ltd
West House
King Cross Road
Halifax
West Yorkshire
HX1 1EB
Bankers
Handelsbanken
First Floor
Spire Walk
Chesterfield
Derbyshire
S40 2WG
Datagraphic Holdings Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group statement of financial position
9
Company statement of financial position
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 25
Datagraphic Holdings Limited
Strategic Report
for the year ended 31 December 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business in the year
Datagraphic Limited ("the company") is an operational company within the Datagraphic Group of companies, the ultimate parent company is Datagraphic Holdings Limited.
The principal activities of the company include the provision of strategic document outsourcing through a multi-channel platform and the provision of solutions in data driven services and products for secure critical communications.
The company continues to develop Aceni, an online suite of products facilitating document automation, control, and output, allowing customers to manage time critical communications online and seamlessly.
Principal risks and uncertainties
The company's principal financial instruments comprise cash, various items such as trade debtors and trade creditors, that arise directly from its operations. The main purpose of these financial instruments is to provide finance for the company's operations.
The existence of these financial instruments exposes the company to a number of financial risks. The main risks arising from the company's financial risk are credit risk, liquidity risk and interest rate risk. The directors review and agree policies for managing each of these risks and they are summarised below.
Credit risk
The company seeks to manage its credit risk by dealing with established customers in the industries it operates in. The company’s credit risk is primarily attributable to its trade debtors. The amounts presented in the balance sheet are net of allowances for doubtful debts. The company has credit insurance policies in place.
Liquidity risk
Liquidity risk is managed by ensuring sufficient liquidity is available to meet foreseeable needs and to invest in cash assets safely and profitably.
Interest rate risk
The company is well funded with a significant amount of cash on the balance sheet in addition to the enhanced bank facility.
The interest charged on the bank facility is at a variable interest rate. The risk surrounding interest rate variations is reviewed regularly by the directors. Given the current quantum of the bank facility, the impact of a potential increase in the interest charged is considered not to represent a material financial risk to the company.
Key performance indicators
31 Dec
31 Dec
2023
2022
Turnover
20,447,203
18,515,035
Gross profit
6,228,868
6,079,274
Gross profit margin
30.46%
32.83%
EBITDA
1,298,045
1,549,719
Cash at bank
966,162
770,962
Datagraphic performed well throughout 2023 with turnover has increasing by 14.28% to £18.51m and gross profit at £4.59m. Further investment in the team and infrastructure meant overall EBITDA, still healthy at £1.34m was slightly lower year on year.
Datagraphic Holdings Limited
Strategic Report (continued)
for the year ended 31 December 2023
- 2 -
The following strategic initiatives will shape the company's future:
Enhancing Security Measures: Continuous improvement of security features.
Collaborate with cybersecurity firms and experts to conduct regular security audits, vulnerability assessments, and penetration testing.
Leveraging Technology: Investing in cutting-edge printing technology to improve efficiency and quality.
Diversification of Services: Introducing new printing solutions and value-added services to cater to various client needs.
Strengthening Customer Relationships: Building strong partnerships through personalized service and effective communication.
Sustainability Initiatives: Continuing to develop environmentally friendly practices to meet the growing demand for sustainable solutions.
Continuing Investment in net-zero production and committing to decarbonising our entire UK operations.
The directors remain confident in the group ability to capitalise on its strengths and changing dynamics in the marketplace to see continued growth in sales over the next 36 months.
The growth of the company is linked to the growth of our employees, by investing in our employee’s development we believe we will create a cycle of improved performance and product development.
The Group continues to pay above the Real Living Wage and is a certified Living Hours Employer.
R G King
Director
12 September 2024
Datagraphic Holdings 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 8.
Ordinary dividends were paid amounting to £428,709. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
R G King
E Wells
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 group and company, 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Datagraphic Holdings Limited
Directors' Report (continued)
for the year ended 31 December 2023
- 4 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company 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 auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
R G King
Director
12 September 2024
Datagraphic Holdings Limited
Independent Auditor's Report
to the members of Datagraphic Holdings Limited
- 5 -
Opinion
We have audited the financial statements of Datagraphic Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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 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 the parent company's 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.
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 group and parent 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 group's and 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Datagraphic Holdings Limited
Independent Auditor's Report (continued)
to the members of Datagraphic Holdings Limited
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept 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 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 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error.
There are inherent limitations in audit procedures, the further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
Based on our understanding of the company and the sector in which it operates, our audit work considers the risk of material misstatement on the financial statements as a result of non-compliance with laws and regulations, this includes fraud. These laws and regulations include, but are not limited to, those that relate to the form and content of the financial statements, such as the company accounting policies, the financial reporting framework and the UK Companies Act 2006.
We evaluated management incentives and opportunities for manipulation of the financial statements and determined that the principal risks related to management bias in accounting estimates and understatement or overstatement of revenue. Our audit procedures included, but were not limited to:
Agreement of the financial statements disclosures to underlying supporting documentation;
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
Challenging assumptions, accounting estimates and judgements made by directors;
Identifying and testing journal entries to ensure they are appropriate;
Sample testing of income and expenditure to ensure it is complete and correct cut-off has been applied.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Datagraphic Holdings Limited
Independent Auditor's Report (continued)
to the members of Datagraphic Holdings Limited
- 7 -
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.
Charles R Moorby
Senior Statutory Auditor
For and on behalf of B M Howarth Ltd
Chartered Accountants
Statutory Auditor
West House
King Cross Road
Halifax
West Yorkshire
HX1 1EB
12 September 2024
Datagraphic Holdings Limited
Group Statement of Comprehensive Income
for the year ended 31 December 2023
- 8 -
2023
2022
Notes
£
£
Turnover
2
20,447,203
18,515,035
Cost of sales
(14,218,335)
(12,435,761)
Gross profit
6,228,868
6,079,274
Administrative expenses
(5,352,696)
(4,975,339)
Operating profit
3
876,172
1,103,935
Share of profits of associates
6,303
6,632
Interest payable
6
(127,856)
(56,160)
Profit before taxation
754,619
1,054,407
Tax on profit
7
(162,830)
(235,105)
Profit for the financial year
591,789
819,302
Other comprehensive income
Revaluation of tangible fixed assets
120,000
Tax relating to other comprehensive income
(30,000)
Total comprehensive income for the year
681,789
819,302
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
Datagraphic Holdings Limited
Group Statement Of Financial Position
as at 31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
9
602,949
472,534
Tangible assets
10
2,508,873
2,549,714
Investments
11
90,190
78,887
3,202,012
3,101,135
Current assets
Stocks
14
224,122
332,715
Debtors
15
3,823,847
3,099,094
Cash at bank and in hand
770,962
966,162
4,818,931
4,397,971
Creditors: amounts falling due within one year
16
(4,135,588)
(4,227,026)
Net current assets
683,343
170,945
Total assets less current liabilities
3,885,355
3,272,080
Creditors: amounts falling due after more than one year
17
(828,816)
(505,250)
Provisions for liabilities
Deferred tax liability
19
343,532
306,903
(343,532)
(306,903)
Net assets
2,713,007
2,459,927
Capital and reserves
Called up share capital
1,811
1,811
Share premium account
550
550
Revaluation reserve
276,160
186,160
Profit and loss reserves
2,434,486
2,271,406
Total equity
2,713,007
2,459,927
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
12 September 2024
R G King
Director
Company registration number 04528786 (England and Wales)
Datagraphic Holdings Limited
Company Statement Of Financial Position
as at 31 December 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
11
1,410,520
1,405,520
Current assets
Debtors
15
1,610,895
881,760
Cash at bank and in hand
603
768
1,611,498
882,528
Net current assets
1,611,498
882,528
Total assets less current liabilities
3,022,018
2,288,048
Creditors: amounts falling due after more than one year
17
(2,818,983)
(2,085,013)
Net assets
203,035
203,035
Capital and reserves
Called up share capital
1,811
1,811
Share premium account
550
550
Profit and loss reserves
200,674
200,674
Total equity
203,035
203,035
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £428,709 (2022 - £417,709 profit).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 12 September 2024 and are signed on its behalf by:
12 September 2024
R G King
Director
Company registration number 04528786 (England and Wales)
Datagraphic Holdings Limited
Group Statement Of Changes In Equity
for the year ended 31 December 2023
- 11 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
1,811
550
186,160
1,869,813
2,058,334
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
819,302
819,302
Dividends
8
-
-
-
(417,709)
(417,709)
Balance at 31 December 2022
1,811
550
186,160
2,271,406
2,459,927
Year ended 31 December 2023:
Profit for the year
-
-
-
591,789
591,789
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
120,000
-
120,000
Tax relating to other comprehensive income
-
-
(30,000)
(30,000)
Total comprehensive income
-
-
90,000
591,789
681,789
Dividends
8
-
-
-
(428,709)
(428,709)
Balance at 31 December 2023
1,811
550
276,160
2,434,486
2,713,007
Datagraphic Holdings Limited
Company Statement of Changes in Equity
for the year ended 31 December 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
1,811
550
200,674
203,035
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
417,709
417,709
Dividends
8
-
-
(417,709)
(417,709)
Balance at 31 December 2022
1,811
550
200,674
203,035
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
428,709
428,709
Dividends
8
-
-
(428,709)
(428,709)
Balance at 31 December 2023
1,811
550
200,674
203,035
Datagraphic Holdings Limited
Group Statement of Cash Flows
for the year ended 31 December 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
(118,537)
1,996,714
Interest paid
(127,856)
(56,160)
Income taxes paid
(42,639)
Net cash (outflow)/inflow from operating activities
(289,032)
1,940,554
Investing activities
Purchase of intangible assets
(260,833)
(216,575)
Purchase of tangible fixed assets
(197,192)
(794,966)
Proceeds from disposal of tangible fixed assets
69,123
5,000
Purchase of associates
(5,000)
(50,000)
Repayment of loans
(115,169)
-
Net cash used in investing activities
(509,071)
(1,056,541)
Financing activities
Repayment of bank loans
(158,215)
(107,465)
Payment of finance leases obligations
399,579
(233,158)
Dividends paid to equity shareholders
(428,709)
(417,709)
Net cash used in financing activities
(187,345)
(758,332)
Net (decrease)/increase in cash and cash equivalents
(985,448)
125,681
Cash and cash equivalents at beginning of year
354,056
228,375
Cash and cash equivalents at end of year
(631,392)
354,056
Relating to:
Cash at bank and in hand
770,962
966,162
Bank overdrafts included in creditors payable within one year
(1,402,354)
(612,106)
Datagraphic Holdings Limited
Notes to the Group Financial Statements
for the year ended 31 December 2023
- 14 -
1
Accounting policies
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Datagraphic Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 4 - 8 years.
Datagraphic Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 31 December 2023
1
Accounting policies
(continued)
- 15 -
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Software development costs
4 years subject to annual review of useful life
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:
Freehold land and buildings
Not depreciated
Leasehold land and buildings
Straight line over the term of the lease
Plant and equipment
2 - 10 years
Fixtures and fittings
5 - 10 years
Computers
33% straight line
Motor vehicles
3 - 4 years
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 recognised in the income statement.
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in or .
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Datagraphic Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 31 December 2023
1
Accounting policies
(continued)
- 16 -
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.
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Turnover
2023
2022
£
£
Turnover analysed by class of business
Rendering of services
20,447,203
18,515,035
3
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Auditors fees
30,200
26,500
Depreciation of owned tangible fixed assets
291,455
221,557
Profit on disposal of tangible fixed assets
(2,545)
(5,000)
Amortisation of intangible assets
130,418
224,227
Operating lease charges
281,333
137,875
Datagraphic Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 31 December 2023
- 17 -
4
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
67
64
-
-
44
44
-
-
Total
111
108
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,653,900
3,657,995
Social security costs
385,586
362,014
-
-
Pension costs
317,249
313,483
4,356,735
4,333,492
5
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss
317,249
313,483
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
6
Interest payable
2023
2022
£
£
Interest on bank overdrafts and loans
36,262
17,547
Interest on finance leases
87,045
38,613
Other interest
4,549
-
Total finance costs
127,856
56,160
Datagraphic Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 31 December 2023
- 18 -
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
156,201
132,945
Adjustments in respect of prior periods
(48,484)
Total current tax
156,201
84,461
Deferred tax
Origination and reversal of timing differences
6,483
100,135
Changes in tax rates
146
71,378
Adjustment in respect of prior periods
(20,869)
Total deferred tax
6,629
150,644
Total tax charge
162,830
235,105
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
754,619
1,054,407
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
177,486
200,337
Tax effect of expenses that are not deductible in determining taxable profit
(30,036)
32,021
Tax effect of income not taxable in determining taxable profit
(15,411)
(1,260)
Adjustments in respect of prior years
(48,484)
Depreciation on assets not qualifying for tax allowances
(12,991)
Other non-reversing timing differences
(1,527)
Deferred tax adjustments in respect of prior years
37,500
20,869
Effect of change in tax rate for deferred tax
146
71,378
Effect of enhanced capital allowances
(540)
(38,229)
Effect of change in tax rate for corporation tax
6,676
-
Taxation charge
162,830
235,105
In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
£
£
Deferred tax arising on:
Revaluation of property
30,000
-
Datagraphic Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 31 December 2023
- 19 -
8
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
428,709
417,709
9
Intangible fixed assets
Group
Goodwill
Software development costs
Total
£
£
£
Cost
At 1 January 2023
840,195
1,066,994
1,907,189
Additions - internally developed
260,833
260,833
At 31 December 2023
840,195
1,327,827
2,168,022
Amortisation and impairment
At 1 January 2023
840,195
594,460
1,434,655
Amortisation charged for the year
130,418
130,418
At 31 December 2023
840,195
724,878
1,565,073
Carrying amount
At 31 December 2023
602,949
602,949
At 31 December 2022
472,534
472,534
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
Datagraphic Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 31 December 2023
- 20 -
10
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
730,000
715,030
1,410,367
131,410
443,345
48,792
3,478,944
Additions
16,641
28,428
66,629
54,494
31,000
197,192
Disposals
(46,248)
(48,792)
(95,040)
Revaluation
120,000
120,000
At 31 December 2023
850,000
731,671
1,392,547
198,039
497,839
31,000
3,701,096
Depreciation and impairment
At 1 January 2023
306,869
195,600
102,498
299,305
24,958
929,230
Depreciation charged in the year
78,780
144,782
7,144
49,496
11,253
291,455
Eliminated in respect of disposals
(28,462)
(28,462)
At 31 December 2023
385,649
340,382
109,642
348,801
7,749
1,192,223
Carrying amount
At 31 December 2023
850,000
346,022
1,052,165
88,397
149,038
23,251
2,508,873
At 31 December 2022
730,000
408,161
1,214,767
28,912
144,040
23,834
2,549,714
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
Datagraphic Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 31 December 2023
- 21 -
11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
12
22,255
22,255
1,355,520
1,355,520
Investments in associates
13
67,935
56,632
55,000
50,000
90,190
78,887
1,410,520
1,405,520
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
£
Cost or valuation
At 1 January 2023
1,405,520
Additions
5,000
At 31 December 2023
1,410,520
Carrying amount
At 31 December 2023
1,410,520
At 31 December 2022
1,405,520
12
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Datagraphic Group Limited
Ireland Industrial Estate, Adelphi Way, Staveley, Chesterfield, S43 3LS
Ordinary shares
100.00
Trading Transformations Limited
Ireland Industrial Estate, Adelphi Way, Staveley, Chesterfield, S43 3LS
Ordinary shares
100.00
Datagraphic Limited
Ireland Industrial Estate, Adelphi Way, Staveley, Chesterfield, S43 3LS
Ordinary shares
100.00
Prolog Trustees Ltd and Bottomline Security Print Ltd, both incorporated in England, and both 100% owned, have not carried out any trading activities.
Datagraphic Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 31 December 2023
- 22 -
13
Associates
Details of associates at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Webpost Limited
Sucklings Yard, Church Street, Ware, SG12 9EN
Ordinary
40
In May 2023, Datagraphic Holdings Limited purchased an additional 5% shareholding in Webpost Limited.
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
214,049
308,124
-
-
Work in progress
10,073
24,591
-
-
224,122
332,715
-
-
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,902,175
2,567,997
Corporation tax recoverable
28,065
Amounts owed by group undertakings
-
-
1,610,893
881,758
Other debtors
439,091
249,276
2
2
Prepayments and accrued income
454,516
281,821
3,823,847
3,099,094
1,610,895
881,760
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
1,561,354
771,106
Obligations under finance leases
103,662
136,009
Trade creditors
976,049
1,725,934
Corporation tax payable
293,646
152,019
Other taxation and social security
260,355
227,529
-
-
Other creditors
204,977
239,098
Accruals and deferred income
735,545
975,331
4,135,588
4,227,026
Datagraphic Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 31 December 2023
16
Creditors: amounts falling due within one year
(continued)
- 23 -
The loan facilities are secured by a First Mortgage Debenture dated 25 January 2016; (2) a First Legal Charge over Ireland Industrial Estate dated 25 January 2016.
The overdraft facility represents a sales finance agreement between Datagraphic Limited and Investec Capital Solutions Limited. This agreement is secured by a all asset debenture dated 31 December 2021.
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
347,035
505,250
Obligations under finance leases
431,926
Amounts owed to group undertakings
2,818,983
2,085,013
Other creditors
49,855
828,816
505,250
2,818,983
2,085,013
The loan facilities are secured by a First Mortgage Debenture dated 25 January 2016; (2) a First Legal Charge over Ireland Industrial Estate dated 25 January 2016.
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
506,035
664,250
Bank overdrafts
1,402,354
612,106
1,908,389
1,276,356
-
-
Payable within one year
1,561,354
771,106
Payable after one year
347,035
505,250
Datagraphic Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 31 December 2023
- 24 -
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
381,032
381,903
General provision
(37,500)
(75,000)
343,532
306,903
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
306,903
-
Charge to profit or loss
36,629
-
Liability at 31 December 2023
343,532
-
20
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
966,162
(195,200)
770,962
Bank overdrafts
(612,106)
(790,248)
(1,402,354)
354,056
(985,448)
(631,392)
Borrowings excluding overdrafts
(664,250)
158,215
(506,035)
Obligations under finance leases
(136,009)
(399,579)
(535,588)
(446,203)
(1,226,812)
(1,673,015)
Datagraphic Holdings Limited
Notes to the Group Financial Statements (continued)
for the year ended 31 December 2023
- 25 -
21
Cash (absorbed by)/generated from group operations
2023
2022
£
£
Profit for the year after tax
591,789
819,302
Adjustments for:
Share of results of associates and joint ventures
(6,303)
(6,632)
Taxation charged
162,830
235,105
Finance costs
127,856
56,160
Gain on disposal of tangible fixed assets
(2,545)
(5,000)
Amortisation and impairment of intangible assets
130,418
224,227
Depreciation and impairment of tangible fixed assets
291,455
221,557
Movements in working capital:
Decrease/(increase) in stocks
108,593
(91,116)
Increase in debtors
(581,519)
(924,770)
(Decrease)/increase in creditors
(941,111)
1,467,882
Cash (absorbed by)/generated from operations
(118,537)
1,996,715
22
Company information
Datagraphic Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Ireland Industrial Estate, Adelphi Way, Chesterfield, Derbyshire, S43 3LS.
The group consists of Datagraphic Holdings Limited and all of its subsidiaries.
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