Registered number
06728232
Direct Tool Company Limited
Unaudited Filleted Accounts
31 December 2023
Direct Tool Company Limited
Registered number: 06728232
Balance Sheet
as at 31 December 2023
Notes 2023 2022
£ £
Fixed assets
Tangible assets 4 396,700 432,180
Current assets
Stocks 3,137,428 -
Debtors 5 3,256,856 2,667,112
Cash at bank and in hand 2,456,907 1,866,285
8,851,191 4,533,397
Creditors: amounts falling due within one year 6 (3,128,914) (2,813,377)
Net current assets 5,722,277 1,720,020
Total assets less current liabilities 6,118,977 2,152,200
Creditors: amounts falling due after more than one year 7 (4,737,430) (1,678,769)
Provisions for liabilities (74,670) (74,670)
Net assets 1,306,877 398,761
Capital and reserves
Called up share capital 110 110
Profit and loss account 1,306,767 398,651
Shareholders' funds 1,306,877 398,761
The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mr T. Wakeford
Director
Approved by the board on 6 September 2024
Direct Tool Company Limited
Notes to the Accounts
for the year ended 31 December 2023
1 Accounting policies
Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Intangible fixed assets
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Leasehold land and buildings over the lease term
Plant and machinery 25% reducing balance
Fixtures, fittings, tools and equipment 25% reducing balance
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
Provisions
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
2 Employees 2023 2022
Number Number
Average number of persons employed by the company 48 48
3 Intangible fixed assets £
Goodwill:
Cost
At 1 January 2023 450,000
At 31 December 2023 450,000
Amortisation
At 1 January 2023 450,000
At 31 December 2023 450,000
Net book value
At 31 December 2023 -
Goodwill is being written off in equal annual instalments over its estimated economic life of 10 years.
4 Tangible fixed assets
Land and buildings Plant and machinery etc Motor vehicles Total
£ £ £ £
Cost
At 1 January 2023 780,234 236,801 329,965 1,347,000
Additions - 22,243 74,511 96,754
At 31 December 2023 780,234 259,044 404,476 1,443,754
Depreciation
At 1 January 2023 431,540 228,997 254,283 914,820
Charge for the year 87,174 7,512 37,548 132,234
At 31 December 2023 518,714 236,509 291,831 1,047,054
Net book value
At 31 December 2023 261,520 22,535 112,645 396,700
At 31 December 2022 348,694 7,804 75,682 432,180
5 Debtors 2023 2022
£ £
Trade debtors 3,235,039 2,584,615
Other debtors 21,817 82,497
3,256,856 2,667,112
6 Creditors: amounts falling due within one year 2023 2022
£ £
Obligations under finance lease and hire purchase contracts 8,439 8,439
Trade creditors 2,171,795 2,160,226
Taxation and social security costs 651,798 584,322
Other creditors 296,882 60,390
3,128,914 2,813,377
7 Creditors: amounts falling due after one year 2023 2022
£ £
Amounts owed to group undertakings and undertakings in which the company has a participating interest 4,737,430 1,678,769
8 Ultimate parent
The ultimate parent company is Flexford Holdings Limited and its registered address is Unit 2 Castlehill Business Park Flexford Road, North Baddesley, Southampton, United Kingdom, SO52 9DF.
9 Related party transactions
Included within amounted owed to group undertakings is an amount due to Flexford Holding Limited, the ultimate parent, amounting to £4,737,430 (2022: £1,678,769).
10 Other information
Direct Tool Company Limited is a private company limited by shares and incorporated in England. Its registered office is:
Castlehill Business Park Flexford Road
North Baddesley
Southampton
SO52 9DF
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