REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2023 |
for |
DE DIETRICH PROCESS SYSTEMS LIMITED |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2023 |
for |
DE DIETRICH PROCESS SYSTEMS LIMITED |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
DE DIETRICH PROCESS SYSTEMS LIMITED |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
25 Hosier Lane |
London |
EC1A 9LQ |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
2023 was a resounding success. As intimated in our previous report, 2023 was to be the start of a more effective and efficient business, looking to increase the number of sectors we operate in, whilst expanding our current perational capacity simultaneously. |
The processes of work at the front end of the business have continued to be improved and developed during 2023, in combination with the new software's installed during 2022. Now the business has over 12 months of high-resolution data, enabling us to make more informed decisions on resource allocation, opportunities in our markets and to quote our customers more rapidly. Additionally, the businesses improved operational capacity has enabled a sharing of projects between the De Dietrich group companies and the UK, something that has not been seen before. This has increased our sales and enabled us to achieve specific objectives set by the groups HQ. The year also saw orders of some key projects the business had been looking to achieve for several years, setting us on an exciting course for 2024. |
Financial key performance indicators |
The company believes the performance indicators that best communicate the financial strength of the company are Turnover, Gross Profit, EBITDA, O/I and Profit. By ensuring these are healthy the Company will retain good cash-flow giving stability and strength going forward. |
2023 | 2022 |
£'000 | £'000 |
Turnover | 7,333 | 6,696 |
Gross Profit Margin % | 41.0% | 41.0% |
EBITDA | 164 | 234 |
Operating income | 164 | 234 |
Profit/(Loss) before tax | 343 | 263 |
Profit for the financial year | 263 | 190 |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
As with all companies, we operate with an exposure to risk and uncertainty. As with 2022, 2023 had continued challenges with the war in Ukraine, Palestine, inflation, interest rate rises and their effect on business, fuel costs and market confidence. However, despite all these challenges the Company has managed to thrive, meeting our objectives, and continuing to improve our prospects for the long term. We will continue to monitor our project win rate to ensure we remain competitive. |
On inflation, the business continues to benefit from the wider groups derisking strategy to stabilise their supply chain (mainly the procurement of their raw goods/making process changes to reduce energy usage). This has by extension, lead to stability for our procurement of group goods. More generally our supply chain appears to be less effected by inflation than other sectors in the UK. Additionally, the ongoing war in Ukraine does not appear to have impacted our business in a negative way. |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Strategic Report |
for the Year Ended 31 December 2023 |
FUTURE DEVELOPMENT |
The ambition for 2024 is to continue our progress on modernising the business. We have found significant success in our front end, we will now continue into the execution part of our business, utilising and developing new IT tools across all our business units. In addition to this, we will also look to significantly expand the number of employees in our Projects and Back-office departments to build on 2023. These improvements are budgeted for, and we feel the outcome for the business will be substantial. |
ON BEHALF OF THE BOARD: |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the Company is the design, procurement, assembly, testing, supply, installation, commissioning, validation, after sales 'site' operations e.g. maintenance, service, upgrades, re-glass, repair, etc. of Process Plant and Machinery for the Chemical, Pharmaceutical, Plant-Based, precious metal recovery etc., industries. The major plant items are produced from the Company's competence centers in France, Germany, and Switzerland. De Dietrich Process Systems Limited mainly operates in the UK, Irish and South African markets. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
FUTURE DEVELOPMENTS |
Details of future developments can be found in the Strategic Report. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Directors Indemnities |
The Group has qualifying third party indemnity provisions for the benefit of its directors which were made during the year and remain in force at the date of this report. |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The Company's operations expose it to a variety of financial risks that include the effect of credit risk and liquidity risk. The Company has in place policies that seek to mitigate any adverse effect on the financial performance of the Company by monitoring levels of liquidity and the related finance costs. The policies set by Senior Management e.g. Director, the board, or both, are implemented by the finance department. |
Credit Risk |
The Company has implemented policies that require appropriate credit assessment on potential customers before sales are made. The amount of exposure to any individual counterparty is subject to review by the financial department and Company's Senior Management i.e. Director level. |
Liquidity Risk |
The Company actively maintains cash balances to ensure it has sufficient available funds for operations and future growth. |
OTHER MATTERS |
The ongoing conflict in Ukraine is a significant humanitarian and political crisis. It is important to note that due to the company's geographical locations and customer base, the war has had no material impact on the company's operations or financial performance during this reporting period. We will continue to monitor the situation closely. |
With regards to inflation, the business continues to benefit from the wider groups derisking strategy to stabilise their supply chain (mainly the procurement of their raw goods/making process changes to reduce energy usage). This has by extension, lead to stability for our procurement of group goods. More generally our supply chain appears to be less effected by inflation than other sectors in the UK |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Report of the Directors |
for the Year Ended 31 December 2023 |
GOING CONCERN |
The Company made a profit of £263k (2022 - £190k) for the year ended and the Company's total assets exceeded current liabilities by £6,994k (2022 - £6,634k). The forecasts for 2024 suggest sales will be £8,075k with pre-tax profits of £323k. Estimated cash at bank and in hand by the end of 2024 is £2,450k. Therefore, the directors believe it is appropriate to prepare the financial statements on the going concern basis. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Constantin, will be proposed for re-appointment in accordance with section 485 of the Companies |
Act 2006. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
De Dietrich Process Systems Limited |
Opinion |
In our opinion the financial statements of De Dietrich Process Systems Limited (the 'company'): |
- | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
We have audited the financial statements which comprise: |
- | the profit and loss account; |
- | the statement of comprehensive income; |
- | the balance sheet; |
- | the statement of changes in equity; |
- | the related notes 1 to 17. |
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). |
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 Financial Reporting Council's (the 'FRC's') Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
We have nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
De Dietrich Process Systems Limited |
Report on other legal and regulatory requirements |
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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the directors' report has been prepared in accordance with applicable legal requirements. |
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 or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the 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. |
We have nothing to report in respect of these matters. |
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. |
Report of the Independent Auditors to the Members of |
De Dietrich Process Systems Limited |
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. 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. |
Extent to which the audit was considered capable of detecting irregularities, including fraud |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. |
We considered the nature of the company’s industry and its control environment, and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities. |
We obtained an understanding of the legal and regulatory framework that the company operates in, and identified the key laws and regulations that: |
- - | had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, pensions legislation, tax legislation; anddo not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
We discussed among the audit engagement regarding the opportunities and incentives that may exist within the |
organisation for fraud and how and where fraud might occur in the financial statements. |
As a result of performing the above, we identified the greatest potential for fraud in the following areas, and our procedures performed to address are described below: |
- | reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | enquiring of management and external legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and |
- | reading minutes of meetings of those charged with governance. |
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. |
In addition to the above, our procedures to respond to the risks identified included the following: |
- | reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- | enquiring of management and external legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and |
Report of the Independent Auditors to the Members of |
De Dietrich Process Systems Limited |
- | reading minutes of meetings of those charged with governance. |
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. |
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. |
for and on behalf of |
25 Hosier Lane |
London |
EC1A 9LQ |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Statement of Comprehensive |
Income |
for the Year Ended 31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £'000 | £'000 |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 5 |
Interest receivable and similar income | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Profit on defined benefit pension scheme | ( | ) |
Other adjustments | ( | ) |
Income tax relating to components of |
other comprehensive income |
Income tax relating to components of other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX | ( | ) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | ( | ) |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £'000 | £'000 | £'000 | £'000 |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES | 6,994 |
PENSION LIABILITY | 16 | ( | ) |
NET ASSETS | 6,994 | 6,344 |
CAPITAL AND RESERVES |
Called up share capital | 15 | 500 | 500 |
Share premium | 1,918 | 1,918 |
Retained earnings | 4,576 | 3,926 |
SHAREHOLDERS' FUNDS | 6,994 | 6,344 |
The financial statements were approved by the Board of Directors and authorised for issue on |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£'000 | £'000 | £'000 | £'000 |
Balance at 1 January 2022 | 500 | 4,026 | 1,918 | 6,444 |
Changes in equity |
Profit for the year | - | 190 | - | 190 |
Other comprehensive income | - | (290 | ) | - | (290 | ) |
Total comprehensive income | - | ( | ) | - | ( | ) |
Balance at 31 December 2022 | 500 | 1,918 |
Changes in equity |
Profit for the year | - | 263 | - | 263 |
Other comprehensive income | - | 386 | - | 386 |
Total comprehensive income | - | - |
Balance at 31 December 2023 | 500 | 4,575 | 1,918 | 6,993 |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
De Dietrich Process Systems Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies. |
The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. |
Going concern |
The Company made a profit of £263k (2022 - £190k) for the year ended and the Company's total assets exceeded current liabilities by £6,994k (2022 - £6,634k). The forecasts for 2024 suggest sales will be £8,075k with pre-tax profits of £323k. Estimated cash at bank and in hand by the end of 2024 is £2,450k. Therefore, the directors believe it is appropriate to prepare the financial statements on the going concern basis. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirement of paragraph 33.7. |
This information is included in the consolidated financial statements of the largest group by Financiere de Jaegerthal. as at 31 December 2023 and these financial statements may be obtained from Financial and Administrative Department, Château de Reichshoffen, 67891Niederbronn, Cedex, France. |
Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Critical accounting judgements and key sources of estimation uncertainty |
The following are the critical judgements, apart from those involving estimations (which are ealt with separately below), that the directors have made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. |
Revenue recognition |
In making the revenuerecognition judgement, management considered the detailed criteria for the recognition of revenue from the sale of goods, in particular, whether the Company had transferred to the buyer the significant risks and rewards of ownership of the goods. Following the detailed quantification of the Company's liability in respect of rectification work, and the agreed limitation on the customer's ability to require further work or to require replacement of the goods, the directors are satisfied that the significant risks and rewards have been transferred and that recognition of the revenue in the current year is appropriate, in conjunction with recognition of an appropriate provision for the rectification costs. |
Pensions liability |
Estimation of the net liability to pay pensions depends on a number of complex judgements relating to the discount rate used, the expected rate of price inflation, the rate at which salaries and pensions are expected to increase, mortality rates and rate of commutation of pensions. We received from our pension actuary partner XPS for the year ending 31 December 2023 which reports the pension made a surplus for the second consecutive year. |
We have adopted a prudential position by not recognizing this surplus as an asset: an exchange with the trustees is planned to decide and validate on the position to adopt. |
Useful economic lives of property, plant and equipment. |
The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the 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. |
Turnover is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred in respect of the transaction can be measured reliably. |
Profit is recognised on long term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stock and work in progress is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
Interest income and finance costs |
Interest income is recognised in profit or loss using the effective interest method. |
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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. |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Pensions |
Defined contribution pension plan |
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. |
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds. |
Defined benefit pension plan |
The Company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan. |
The liability recognised in the Balance Sheet in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the balance sheet date less the fair value of plan assets at the balance sheet date (if any) out of which the obligations are to be settled. The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate'). |
The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Company's policy for similarly held assets. This includes the use of appropriate |
valuation techniques. |
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'. The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises: |
a) the increase in net pension benefit liability arising from employee service during the period; and |
b) the cost of plan introductions, benefit changes, curtailments and settlements. |
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'. |
Pension costs and other post-retirement benefits |
Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. |
The liability recognised in the Statement of Financial Position in respect of defined benefit pension plans is the present value of the defined benefit obligation at the reporting date minus the fair value of plan assets. The defined benefit obligation is determined by discounting the estimated future payments by reference to market yields at the reporting date on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability. |
Actuarial gains and losses are charged or credited to other comprehensive income in the period in |
which they arise. |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Debtors |
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction. |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the Company a legal or constructive |
obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the Balance Sheet. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
31.12.23 | 31.12.22 |
£'000 | £'000 |
United Kingdom |
Europe |
Rest of the world | 195 | 99 |
4. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£'000 | £'000 |
Wages and salaries |
Social security costs |
Other pension costs |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Production | 11 | 11 |
Administration and support | 5 | 5 |
Sales | 6 | 6 |
31.12.23 | 31.12.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Highest paid director |
31.12.23 | | 31.12.22 |
£'000 | £'000 |
Emoluments and other benefits | 107 | 146 |
Pension | - | 81 |
107 | 227 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.23 | 31.12.22 |
£'000 | £'000 |
Other operating leases |
Depreciation - owned assets |
Auditors' remuneration |
Foreign exchange differences | ( | ) |
6. | INTEREST RECEIVABLE AND SIMILAR INCOME |
31.12.23 | 31.12.22 |
£'000 | £'000 |
Interest receivable |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£'000 | £'000 |
Current tax: |
UK corporation tax | ( | ) |
Deferred tax: |
Deferred tax |
Deferred tax in respect of prior periods | - | 18 |
Total deferred tax |
Tax on profit |
UK corporation tax has been charged at 23.52% . |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.23 | 31.12.22 |
£'000 | £'000 |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods |
Remeasurement of deferred tax for changes in tax rates | - | 17 |
Movement in deferred tax not recognised | - | 5 |
Adjustments to tax charge in respect of previous periods - deferred tax | (2 | ) | - |
Total tax charge | 80 | 73 |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
31.12.23 |
Gross | Tax | Net |
£'000 | £'000 | £'000 |
Profit on defined benefit pension scheme | - | 593 |
Other adjustments | ( | ) | - | (207 | ) |
Income tax relating to components of |
other comprehensive income |
386 | - | 386 |
31.12.22 |
Gross | Tax | Net |
£'000 | £'000 | £'000 |
Profit on defined benefit pension scheme | ( | ) | - | (593 | ) |
Other adjustments | - | 207 |
Income tax relating to components of |
other comprehensive income | - | 96 |
(290 | ) | - | (290 | ) |
Factors that may affect future tax charges |
Finance Act 2020, which was substantively enacted on 11 March 2020, maintained the corporation tax rate at 19% until 31 March 2023. Finance Act 2021, which was substantively enacted on 24 May 2021, has enacted an increase in the UK corporation tax main rate to 25% from 1 April 2023. The closing deferred tax assets and liabilities have been calculated at 25%, on the basis that this is the rate at which those assets and liabilities are expected to unwind. |
8. | INTANGIBLE FIXED ASSETS |
Goodwill |
£'000 |
COST |
At 1 January 2023 |
and 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£'000 | £'000 | £'000 | £'000 |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 | 1 | 8 | 12 | 21 |
10. | STOCKS |
31.12.23 | 31.12.22 |
£'000 | £'000 |
Work-in-progress |
Finished goods |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£'000 | £'000 |
Trade debtors |
Amounts owed by group undertakings |
Tax recoverable |
Deferred tax asset |
Other timing differences | 63 | 50 |
Prepayments and accrued income |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£'000 | £'000 |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
Other creditors |
Deferred income |
Accrued expenses |
13. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.12.23 | 31.12.22 |
£'000 | £'000 |
Within one year |
Between one and five years |
The amount of non-cancellable operating lease payments recognised as en expense during the year was £243k (2022 - £229k). |
14. | DEFERRED TAX |
£'000 |
Balance at 1 January 2023 | ( | ) |
Charged to profit for the year | 81 |
Charges to other comprehensive | (92 | ) |
Other adjustments | (2 | ) |
Balance at 31 December 2023 | ( | ) |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £'000 | £'000 |
Ordinary | £1 | 500 | 500 |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
16. | EMPLOYEE BENEFIT OBLIGATIONS |
Defined benefit pension schemes |
All figures are shown in £ s. |
De Dietrich Process Systems Limited operates a defined benefit scheme in the UK which provides both pensions in retirement and death benefits to members. Pension benefits are related to the members' final salary at retirement and their length of service. Since 5 April 2003 the Plan has been closed to accrual. |
The latest actuarial valuation of the Scheme was carried out as at 18th January 2024. As part of the valuation, a recovery plan was put into place under which the Employer agreed to pay deficit contributions of £480,000, per annum in 2018, 2019 and 2020. The liabilities of the Scheme have been calculated by updating the results of the actuarial valuation as at 5 April 2020 to allow for the passage of time, benefits paid out and changes in actuarial assumptions over the period from 5 April 2017 to 31 December 2020. |
We received from our pension actuary partner XPS an unusual assessment from the year end pension assessment for the closing 2023, the deficit from the last years has been covered and shows a surplus at the year end. |
We have adopted a prudential position by not recognizing this surplus as an asset: an exchange with the trustees is planned for May to decide and validate on the position to adopt. |
The amounts recognised in the balance sheet are as follows: |
Defined benefit |
pension plans |
31.12.23 | 31.12.22 |
£'000 | £'000 |
Present value of funded obligations | ( | ) | ( | ) |
Fair value of plan assets |
821 | 313 |
Present value of unfunded obligations |
Asset limitation (IFRIC 14) | (821 | ) | (313 | ) |
Deficit |
Net liability | - | - |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
16. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts recognised in profit or loss are as follows: |
Defined benefit |
pension plans |
31.12.23 | 31.12.22 |
£'000 | £'000 |
Current service cost |
Net interest from net defined benefit asset/liability | (23 | ) | (12 | ) |
Past service cost |
145 | 94 |
Actual return on plan assets | ( | ) |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
31.12.23 | 31.12.22 |
£'000 | £'000 |
Opening defined benefit obligation |
Interest cost |
Actuarial losses/(gains) | ( | ) | ( | ) |
Benefits paid | ( | ) | ( | ) |
Changes in the fair value of scheme assets are as follows: |
Defined benefit |
pension plans |
31.12.23 | 31.12.22 |
£'000 | £'000 |
Opening fair value of scheme assets |
Contributions by employer |
Expected return | 548 | 290 |
Actuarial gains/(losses) | ( | ) | ( | ) |
Benefits paid | (704 | ) | (643 | ) |
Plan administration costs | (168 | ) | (106 | ) |
DE DIETRICH PROCESS SYSTEMS LIMITED (REGISTERED NUMBER: 02838099) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
16. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts recognised in other comprehensive income are as follows: |
Defined benefit |
pension plans |
31.12.23 | 31.12.22 |
£'000 | £'000 |
Actuarial gains/(losses) | ( | ) |
Other adjustments | 821 | 313 |
994 | (280 | ) |
The major categories of scheme assets as amounts of total scheme assets are as follows: |
Defined benefit |
pension plans |
31.12.23 | 31.12.22 |
£'000 | £'000 |
Cash and cash equivalents |
Investment funds | 5,648 | 5,421 |
Matching funds | 5,733 | 5,722 |
11,492 | 11,376 |
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
31.12.23 | 31.12.22 |
Discount rate |
Future pension increases - Post 88 GMP |
Future pension increases - Pre 94 Excess |
Revaluation of deferred pension |
Inflation rate - RPI | 3.10% | 3.20% |
Inflation rate - CPI | 2.70% | 2.80% |
Cash communation | 75.00% | 75.00% |
Defined contribution scheme |
The company operates a defined contribution scheme. The pension cost charged for the year represents contributions payable by the company to the scheme and amounted to £51,483 (2022 - £95,463), of which £3,789 (2022 - £2,433) of contributions were unpaid at 31 December 2023. |
17. | PARENT AND ULTIMATE PARENT UNDERTAKING |
In the directors' opinion, the Company's ultimate controlling party at the balance sheet date was Financiere de Jaegerthal, a company incorporated in France. |
The company's controlling party is De Dietrich Process Systems Gmbh, a company incorporated in Germany. |
Financiere de Jaegerthal is the largest group for which the consolidated financial statements are prepared. Copies of these financial statements can be obtained from Financiere de Jaegerthal, Finance and Administrative Department, Château de Reichshoffen, 67891 Niederbronn, Cedex, France. |