Dartmouth Global Trading Co. Limited
Annual report and financial statements
For the year ended 31 December 2023
Dartmouth Global Trading Co. Limited
Company information
Directors
Mr M D Aston
Mr L Hadley
Mr P T Mullett
Mr P C L Knight
Mr A J Moody
Company number
03470689
Registered office
Woodside Works
Blackbrook Road
Dudley
West Midlands
DY2 0AF
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke on Trent
Staffordshire
ST1 5SQ
Dartmouth Global Trading Co. Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 6
Independent auditor's report
7 - 10
Statement of income and retained earnings
11
Statement of financial position
12
Notes to the financial statements
14 - 27
Dartmouth Global Trading Co. 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
During the year the company consolidated its market leading position in the UK as recyclers of incinerator bottom ash (IBA) whilst encountering the effects of the invasion of Ukraine namely the large increase in fuel and energy costs and the sharp rise in inflation and the resulting increase in interest rates.
Despite these factors turnover for the year increased by 21.66% to £53.5m. Whilst our gross profit margin percentage increased slightly overheads excluding depreciation remained constant.
Depreciation however increased slightly due to major capital expenditure coming online which resulted in a pre-tax profit of £5.4m (2022 : £4.7m).
Future developments
The company continues to pursue improvements to the existing processes, to explore new markets and to consider additional production capacity.
During the first seven months of the current year trade has remained buoyant and our performance has exceeded budget. Accordingly subject to any unforeseen circumstances beyond our control we are anticipating another successful year.
Principal risks and uncertainties
The primary risk faced by the company is competition for supply in the open market. The company sources circa half of its supply material from within group, where it is market tested on a monthly basis to ensure competitive pricing is in place. For external supply, good relationships are enjoyed with key suppliers whose trust has been earned over 10+ years of cooperation. Supply is secured from tender processes with price levels being set dynamically to react to market changes.
The Company uses various financial instruments which include cash and other items such as trade debtors and trade creditors that arise in the normal process of operations. The main purpose of these Financial Instruments is to raise finance for the Company's operations.
The financial instruments exposes the Company to a number of Financial risks described in more detail below.
The Company operates a policy throughout the year to manage these risks through the day to day management in business decisions and the directors review and agree best policies for managing each type of risk.
Liquidity Risk
The Company manages the risk by ensuring sufficient liquidity is available to meet its foreseeable needs and invests the cash assets safely and profitably.
Interest Rate Risk
The Company finances its operations through retained profits, bank facilities, hire purchase and lease agreements. Competitive rates of interest are sought when any new interest bearing funding is taken on where this is necessary for the business at the time. The balance sheet includes trade debtors and creditors which do not attract interest.
Foreign Exchange Risk
The Company trades in Sterling, Euro's and US Dollars which reflects its trade base.
The Company seeks to match its common currency payments with receipts taking into account future cash flow requirements to minimise exposure to exchange rate movements and foreign exchange costs.
Credit Risk
The principal credit risk arises from the Company's trade debtors. In order to manage this risk the directors set limits for customers based on a combination of payment history and third party references. The limits are reviewed on a regular basis with debt ageing and payment history and the ledger debt is partially covered by insurers.
Dartmouth Global Trading Co. Limited
Strategic report (continued)
For the year ended 31 December 2023
- 2 -
Key performance indicators
The directors monitor the progress of the company and the implementation of its strategy by reference to key performance indicators. The indicators employed include EBITDA, gross profit and net profit.
The directors are satisfied with the trading results to the 31 December 2023, despite the competitive nature of the business, the company achieved and EBITDA before exceptional items of £11,624,215
Mr M D Aston
Director
8 July 2024
Dartmouth Global Trading Co. 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.
Principal activities
The principal activity of the company in the period under review was that of the processing & marketing of incinerator bottom ash (IBA) and the recycling of ferrous and non-ferrous metals and residuals.
Results and dividends
The results for the year are set out on page 11.
Ordinary dividends were paid amounting to £NIL. (2022 : £7,233,780). The directors do not recommend payment of a final dividend
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr M D Aston
Mr L Hadley
Mr P T Mullett
Mr P C L Knight
Mr A J Moody
Financial instruments
Promoting the success of the company
Dartmouth Global Trading Co. Limited is a wholly owned subsidiary of Blue Phoenix Group BV ( The Group ) and therefore is subject to and abides by all Group policies and procedures. The governance framework of the Group delegates authority for local decision making to the Company up to defined levels of cost and impact. Reports are regularly made to the Group Board by the business units about strategy, performance and key decisions taken which provides the Group Board with assurance that proper consideration is given to stakeholder interests in decision making process.
The Board and management of the company place significant importance on the strength of its relationships with all its stakeholders to promote the sustainable success of the Company. In order to fulfil their duties, the Directors of the Company, and the Group itself take care to have regard to the likely consequences on all stakeholders of the decisions and actions which they take. Such considerations ensure the business is making decisions with a longer term view in mind with sustainable success of the business at its core.
Where possible decisions are carefully discussed with affected groups and are therefore fully understood and supported when taken. Details of the Company's key stakeholders and how we engage with them are set out below:
Shareholders
We rely on the support of our shareholders, and their opinions are important to us. We have an open dialogue with our shareholders through regular one to one meetings and reporting to the Group Board. Discussions cover a wide range of topics including financial performance, strategy, outlook governance and ethical practices.
Dartmouth Global Trading Co. Limited
Directors' report (continued)
For the year ended 31 December 2023
- 4 -
Colleagues
Our people are key to the Company's success and we want them to be successful both individually and as a team.
There are many ways we engage with our people including regular meetings to discuss health & safety, production meetings, face to face briefings etc. Key areas of focus include health & safety, business updates, development opportunities, pay and benefits. Regular reports about what is important to our colleagues are made to the Board ensuring consideration is given to their needs.
Customers
We aim to be the leaders in the processing of Non Ferrous metal concentrates recovered from IBA aggragate material and to obtain the best recovery rates of materials treated through our various processes. We invest time and research to understand our Customers requirements to help build and develop the working relationships to meet their needs both now and in the future.
Suppliers
We endeavour to build strong and long-lasting relationships with our suppliers to attain and achieve mutual ongoing benefits. Engagement is through an on-going tendering process which compares our historic production performance and current pricing, in addition to regular meetings to discuss opportunities and thoughts to improve the performance of our, and our suppliers respective processes and highlight any areas of concern.
Comminities and the Environment
We engage with the local communities in which we operate to understand local issues that are important to them. This involves the creation of opportunities to recruit and develop local people and help to look after the environment via our recycling of metals.
Government and regulators
We receive regular updates surrounding Environmental, Health & Safety and trade legislation from the Blue Phoenix Group and our membership of the British Metals Recycling Association.
Key areas of focus are compliance with laws and regulations, health and safety and environment. The Board is updated on legal and regulatory developments and takes these into account when considering future actions.
Energy and carbon report
Following the introduction of the Energy and Carbon Reporting framework, the directors represent their energy consumption and emissions for the financial year below :
2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
1,957,595
1,354,278
- Electricity purchased
1,208,922
1,225,004
- Fuel consumed for transport
105,824
116,952
3,272,341
2,696,234
Dartmouth Global Trading Co. Limited
Directors' report (continued)
For the year ended 31 December 2023
- 5 -
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
133.78
32.27
- Fuel consumed for owned transport
29.00
33.00
162.78
65.27
Scope 2 - indirect emissions
- Electricity purchased
256.69
260.11
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
-
Total gross emissions
419.47
325.38
Intensity ratio
Tonnes of production per kwh
67.33
64.49
Quantification and reporting methodology
The company has used the following methodology in calculating and obtaining the results detailed above :
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2 per tonnes of production per kWh, the recommended ratio for the sector.
Measures taken to improve energy efficiency
The company has approached hauliers about bio diverse fuels used to increase the company's energy efficiency.
Dartmouth Global Trading Co. Limited
Directors' report (continued)
For the year ended 31 December 2023
- 6 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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 financial statements;
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.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr M D Aston
Mr P C L Knight
Director
Director
8 July 2024
Dartmouth Global Trading Co. Limited
Independent auditor's report
To the member of Dartmouth Global Trading Co. Limited
- 7 -
Opinion
We have audited the financial statements of Dartmouth Global Trading Co. Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the statement of financial position 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 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; 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
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.
Dartmouth Global Trading Co. Limited
Independent auditor's report (continued)
To the member of Dartmouth Global Trading Co. Limited
- 8 -
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.
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 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, 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 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 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.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Dartmouth Global Trading Co. Limited
Independent auditor's report (continued)
To the member of Dartmouth Global Trading Co. Limited
- 9 -
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Dartmouth Global Trading Co. Limited
Independent auditor's report (continued)
To the member of Dartmouth Global Trading Co. Limited
- 10 -
Gary Neil Chadwick FCCA
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
8 July 2024
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke on Trent
Staffordshire
ST1 5SQ
Dartmouth Global Trading Co. Limited
Statement of income and retained earnings
For the year ended 31 December 2023
- 11 -
2023
2022
Notes
£
£
Turnover
3
53,439,189
43,921,923
Cost of sales
(36,508,272)
(30,792,830)
Gross profit
16,930,917
13,129,093
Distribution costs
(2,047,910)
(1,979,308)
Administrative expenses
(9,255,050)
(6,190,781)
Operating profit
5
5,627,957
4,959,004
Interest receivable and similar income
9
2
Interest payable and similar expenses
10
(268,839)
(276,489)
Profit before taxation
5,359,120
4,682,515
Tax on profit
11
(1,422,308)
(642,176)
Profit for the financial year
3,936,812
4,040,339
Retained earnings brought forward
3,963,651
7,157,092
Dividends
12
(7,233,780)
Retained earnings carried forward
7,900,463
3,963,651
The income statement has been prepared on the basis that all operations are continuing operations.
Dartmouth Global Trading Co. Limited
Statement of financial position
As at 31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
10,413,263
10,810,089
Current assets
Stocks
14
1,980,403
1,971,817
Debtors
15
10,366,964
4,806,547
Cash at bank and in hand
4,866,433
9,879,220
17,213,800
16,657,584
Creditors: amounts falling due within one year
16
(13,256,286)
(11,155,595)
Net current assets
3,957,514
5,501,989
Total assets less current liabilities
14,370,777
16,312,078
Creditors: amounts falling due after more than one year
17
(5,932,634)
(11,994,427)
Provisions for liabilities
Deferred tax liability
20
536,680
353,000
(536,680)
(353,000)
Net assets
7,901,463
3,964,651
Capital and reserves
Called up share capital
22
1,000
1,000
Profit and loss reserves
23
7,900,463
3,963,651
Total equity
7,901,463
3,964,651
The financial statements were approved by the board of directors and authorised for issue on 8 July 2024 and are signed on its behalf by:
Mr M D Aston
Mr P C L Knight
Director
Director
Company registration number 03470689 (England and Wales)
Dartmouth Global Trading Co. Limited
Statement of changes in equity
For the year ended 31 December 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
1,000
7,157,092
7,158,092
Year ended 31 December 2022:
Profit and total comprehensive income
-
4,040,339
4,040,339
Dividends
12
-
(7,233,780)
(7,233,780)
Balance at 31 December 2022
1,000
3,963,651
3,964,651
Year ended 31 December 2023:
Profit and total comprehensive income
-
3,936,812
3,936,812
Balance at 31 December 2023
1,000
7,900,463
7,901,463
Dartmouth Global Trading Co. Limited
Notes to the financial statements
For the year ended 31 December 2023
- 14 -
1
Accounting policies
Company information
Dartmouth Global Trading Co. Limited is a private company limited by shares incorporated in England and Wales. The registered office is Woodside Works, Blackbrook Road, Dudley, West Midlands, DY2 0AF.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Reduced disclosure exemptions
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 33 ‘Related Party Disclosures’: Transactions with other group entities where the relationship is one of being wholly owned.
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Blue Phoenix Group B.V. These consolidated financial statements are available from its registered office, Watermanweg 106a, 3067 GG, Rotterdam, The Netherlands.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Dartmouth Global Trading Co. Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 15 -
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property
2%/10% on cost
Plant and machinery
15% on reducing balance
Computer equipment
33% on cost
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
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.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Dartmouth Global Trading Co. Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 16 -
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Dartmouth Global Trading Co. Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 17 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Dartmouth Global Trading Co. Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
- 18 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Dartmouth Global Trading Co. Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 19 -
2
Judgements and key sources of estimation uncertainty
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.
In preparing the financial statements, the directors are required to make judgements and estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The judgements and estimates at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:
- Depreciation and residual values of fixed assets
Useful lives of depreciable assets
Management reviews its estimate of the useful lives of depreciable assets at each reporting date based on the expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence and physical deterioration.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
9,526,383
8,348,258
Europe
35,042,825
26,917,908
Rest of the World
8,869,981
8,655,757
53,439,189
43,921,923
2023
2022
£
£
Other revenue
Interest income
2
-
4
Exceptional item
2023
2022
£
£
Expenditure
Exceptional item - Cost of living bonus payments
-
353,804
Dartmouth Global Trading Co. Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 20 -
5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
648,108
(773,925)
Depreciation of owned tangible fixed assets
1,290,771
1,269,806
(Profit)/loss on disposal of tangible fixed assets
-
6,774
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
31,000
27,000
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Management
11
9
Production
62
56
Total
73
65
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,898,698
2,162,660
Social security costs
281,738
224,847
Pension costs
213,044
165,591
3,393,480
2,553,098
Dartmouth Global Trading Co. Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 21 -
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
666,808
774,629
Company pension contributions to defined contribution schemes
26,055
38,303
692,863
812,932
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
374,449
491,852
Company pension contributions to defined contribution schemes
14,000
12,000
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
2
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
268,826
274,352
Interest on finance leases and hire purchase contracts
13
2,137
268,839
276,489
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,238,628
741,498
Adjustments in respect of prior periods
(99,322)
Total current tax
1,238,628
642,176
Deferred tax
Origination and reversal of timing differences
183,680
Total tax charge
1,422,308
642,176
Dartmouth Global Trading Co. Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
11
Taxation
(Continued)
- 22 -
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
5,359,120
4,682,515
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
1,339,780
889,678
Tax effect of expenses that are not deductible in determining taxable profit
14,843
6,309
Adjustments in respect of prior years
(99,322)
Effect of change in corporation tax rate
(77,910)
Permanent capital allowances in excess of depreciation
(38,085)
(154,489)
Change in tax rate on deferred tax
183,680
Taxation charge for the year
1,422,308
642,176
12
Dividends
2023
2022
£
£
Interim paid
7,233,780
Dartmouth Global Trading Co. Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 23 -
13
Tangible fixed assets
Freehold property
Plant and machinery
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
6,186,077
8,575,722
315,087
43,028
15,119,914
Additions
139,793
712,430
41,722
893,945
At 31 December 2023
6,325,870
9,288,152
356,809
43,028
16,013,859
Depreciation and impairment
At 1 January 2023
649,570
3,350,580
277,900
31,775
4,309,825
Depreciation charged in the year
426,246
834,421
27,293
2,811
1,290,771
At 31 December 2023
1,075,816
4,185,001
305,193
34,586
5,600,596
Carrying amount
At 31 December 2023
5,250,054
5,103,151
51,616
8,442
10,413,263
At 31 December 2022
5,536,507
5,225,142
37,187
11,253
10,810,089
The value of land not depreciated amounts to £837,276 (2021: £837,276)
14
Stocks
2023
2022
£
£
Raw materials and consumables
1,980,403
1,971,817
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
9,826,922
3,977,481
Other debtors
218,554
801,606
Prepayments and accrued income
321,488
27,460
10,366,964
4,806,547
Dartmouth Global Trading Co. Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 24 -
16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
18
17,517
40,017
Obligations under finance leases
19
3,537
Trade creditors
4,322,487
2,850,573
Amounts owed to group undertakings
7,760,777
7,674,217
Corporation tax
447,168
56,163
Other taxation and social security
89,536
64,445
Accruals and deferred income
618,801
466,643
13,256,286
11,155,595
17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
17,517
Amounts owed to group undertakings
5,932,634
11,976,910
5,932,634
11,994,427
18
Loans and overdrafts
2023
2022
£
£
Bank loans
17,517
57,534
Payable within one year
17,517
40,017
Payable after one year
17,517
The bank indebtedness is secured by fixed charges over the properties owned by the company, and by fixed and floating charges over the undertaking and all property and assets present and future.
The hire purchase indebtedness is secured on the related assets.
19
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
4,629
Less: future finance charges
(1,092)
3,537
Dartmouth Global Trading Co. Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
19
Finance lease obligations
(Continued)
- 25 -
Finance lease payments represent rentals payable by the company for certain items of plant and machinery.
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
536,680
353,000
2023
Movements in the year:
£
Liability at 1 January 2023
353,000
Charge to profit or loss
183,680
Liability at 31 December 2023
536,680
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
213,044
165,591
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,000
1,000
1,000
1,000
The ordinary £1 shares rank pari-passu as regards equity & dividend rights & confer one vote per share held
Dartmouth Global Trading Co. Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 26 -
23
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
3,963,651
7,157,092
Profit for the year
3,936,812
4,040,339
Dividends declared and paid in the year
-
(7,233,780)
At the end of the year
7,900,463
3,963,651
24
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
416,502
200,877
Between two and five years
2,451,623
292,662
2,868,125
493,539
25
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of tangible fixed assets
-
104,000
26
Events after the reporting date
After the balance sheet date a dividend of £3.9m was declared.
27
Related party transactions
Entities with control,joint control or significant influence over the entity
As the company is wholly owned it is entitled to take advantage of the exemption available under FRS102 from the disclosures relating to transactions with other group companies.
28
Parent Company
The company's parent undertaking is Blue Phoenix Group BV, a company incorporated and registered in the Netherlands.
Dartmouth Global Trading Co. Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 27 -
29
Ultimate parent company
The company's ultimate parent undertaking is Hope Holdco BV, a company incorporated in the Netherlands.
The smallest group in which consolidated financial statements are prepared is Blue Phoenix Group BV and the largest group is Hope Holdco BV. Copies of the financial statements can be obtained from Blue Phoenix BV, Watermanweg 106A, 3067 GG Rotterdam, Netherlands.
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.200Mr M D AstonMr L HadleyMr P T MullettMr P C L KnightMr A J Moodyfalsefalse034706892023-01-012023-12-3103470689bus:Director12023-01-012023-12-3103470689bus:Director22023-01-012023-12-3103470689bus:Director32023-01-012023-12-3103470689bus:Director42023-01-012023-12-3103470689bus:Director52023-01-012023-12-3103470689bus:RegisteredOffice2023-01-012023-12-31034706892023-12-31034706892022-01-012022-12-3103470689core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3103470689core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3103470689core:RetainedEarningsAccumulatedLosses2022-12-3103470689core:RetainedEarningsAccumulatedLosses2021-12-3103470689core:ShareCapital2023-12-3103470689core:ShareCapital2022-12-3103470689core:RetainedEarningsAccumulatedLosses2023-12-3103470689core:RetainedEarningsAccumulatedLosses2022-12-31034706892022-12-3103470689core:ShareCapital2021-12-3103470689core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-3103470689core:PlantMachinery2023-12-3103470689core:ComputerEquipment2023-12-3103470689core:MotorVehicles2023-12-3103470689core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3103470689core:PlantMachinery2022-12-3103470689core:ComputerEquipment2022-12-3103470689core:MotorVehicles2022-12-3103470689core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3103470689core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3103470689core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3103470689core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3103470689core:CurrentFinancialInstruments2023-12-3103470689core:CurrentFinancialInstruments2022-12-3103470689core:Non-currentFinancialInstruments2023-12-3103470689core:Non-currentFinancialInstruments2022-12-3103470689core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-012023-12-3103470689core:PlantMachinery2023-01-012023-12-3103470689core:ComputerEquipment2023-01-012023-12-3103470689core:MotorVehicles2023-01-012023-12-3103470689core:UKTax2023-01-012023-12-3103470689core:UKTax2022-01-012022-12-310347068912023-01-012023-12-310347068912022-01-012022-12-3103470689core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3103470689core:PlantMachinery2022-12-3103470689core:ComputerEquipment2022-12-3103470689core:MotorVehicles2022-12-31034706892022-12-3103470689core:WithinOneYear2023-12-3103470689core:WithinOneYear2022-12-3103470689core:BetweenTwoFiveYears2023-12-3103470689core:BetweenTwoFiveYears2022-12-3103470689bus:PrivateLimitedCompanyLtd2023-01-012023-12-3103470689bus:FRS1022023-01-012023-12-3103470689bus:Audited2023-01-012023-12-3103470689bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP