Company registration number 08813037 (England and Wales)
DATIM LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
DATIM LTD
COMPANY INFORMATION
Directors
Mr M J Hughes
Mr C Hughes
Mr G Hughes
Mr D Hughes
Company number
08813037
Registered office
Foxwood Industrial Park
Foxwood Road
Chesterfield
Derbyshire
S41 9RN
Auditor
Benee Consulting Limited
48 Durrell Drive
Rugby
Warwickshire
CV22 7GW
Accountant
Oldfield Advisory LLP
Santis House
Curriers Close
Coventry
CV4 8AW
DATIM LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 9
Profit and loss account
10
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 26
DATIM LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activity of the company continued to be the specialisation in the manufacturing of other builders' carpentry and joinery. DATIM manufactures and supplies doorsets and ironmongery to the residential, student living, hotel, and retirement living sectors across the UK and Ireland.

Review of the business

Business environment

Contractors in the Residential, Student Living, Hotels and Retirement Living sectors across UK & Ireland require quality products that can be fitted efficiently, delivered to project timescales to ensure the success of their overall project. This relies on a strong supply chain and an efficient manufacturing and assembly process. Datim are continuously reviewing and sourcing alternative suppliers, and continue to invest in machinery, staff and training for production to ensure the manufacturing and assembly process continues to lead the industry.

 

Strategy

As a family owned group now in its third generation of ownership, Datim have strong values and hold themselves to the highest standards. The business was established nearly 30 years ago, and its success is built on consistent quality every time. Datim's approach is on a partnership basis with clients, from initial enquiry through the project handover. Datim are audited annually for ISO9001, ISO14001 & ISO45001 together with 3rd party Q Mark Fire and Enhance Security as well as Certifier along with FSC & PEFC chain of Custody demonstrate our commitment to lead the field in compliance in an industry where only quality, proven, tested and assured products will do. This all ensures the culture of high standards of quality are embedded in the team and are constantly maintained.

Principal risks and uncertainties

Risk acceptance and risk management is continually monitored by means of a framework of policies, procedures and internal controls. All such policies and procedures are overseen by the board of directors and senior management and are constantly under review to comply with statutory regulations and best practice.

 

The principal risks to the business are the general economic situation in the United Kingdom, where most sectors of the economy, including the construction industry, are being affected by inflationary pressures and low confidence, which is impacting investment. The directors manage this risk through careful management of the sales pipeline and through rigorous cost control procedures are each step in the process of a job.

 

The group continues to offer credit terms to customers, and credit risk is managed through rigorous review of creditworthiness of all customers prior to accepting an order, and strong credit control processes following deliveries. The current debtor days KPI is testament to the effectiveness of these procedures.

Development and performance

The Directors are delighted to report a significant increase in revenue compared to 2022, despite overall challenging economic conditions including increasing cost. This shows continuing underlying core strength, both financial and strategic, of the group's value offering.

Key performance indicators

The directors were pleased to report an operating profit of 10.7% for the year (2022 - 11.7%), which continues a track record of strong performance. However, there was a slight reduction due to the additional administrative expenses aimed at increasing the productivity and capacity of the company.

At the year end the company had shareholders funds of £4,812,331 (2022 - £3,328,618). The directors believe the company's position to be satisfactory, especially as the company's current assets and its current liabilities for 2023 £3,711,759 (2022 - £1,743,265), resulting in a strong current ratio, at the end of the year, of 2.47 (2022 - 1.46).

DATIM LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Other performance indicators

Client satisfaction and repeat work are key non-financial indicators. NPI (net promotor indicator) feedback is formally requested from clients either upon delivery of goods or at the end of each project.

The directors and its senior management team consider health and safety performance to be a primary non-financial indicator.

Future Developments

The company continues to perform well and is continuing to focus on continually improving quality and lead times to meet the requirements of sector. The company continues to invest in highly trained staff and systems to ensure high levels of service to our customers.

On behalf of the board

Mr M J Hughes
Director
23 September 2024
DATIM LTD
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.

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 J Hughes
Mr C Hughes
Mr G Hughes
Mr D Hughes
Financial instruments

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Future developments

Details of future developments are given in the Strategic Report.

Auditor

Benee Consulting Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr M J Hughes
Director
23 September 2024
DATIM LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DATIM LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DATIM LTD
- 5 -

Qualified Opinion on the financial statements

We have audited the financial statements of Datim Ltd (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph the financial statements:

 

 

 

Basis for qualified opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion except for the evidence relating to stock. We were not appointed as auditor of the company until after 31 December 2022 and thus did not observe the counting of physical stocks at the start of the year. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 31 December 2022, which are included in cost of sales during 2023 and the comparative balance sheet at £ 2,725,314, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.

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.

DATIM LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DATIM LTD (CONTINUED)
- 6 -

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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock quantities of £ 2,725,314 held at 31 December 2022.We have concluded that where the other information refers to the stock balance or related balances such as cost of sales, it may be materially misstated for the same reason.

 

Opinions on other matters prescribed by the Companies Act 2006

We were not appointed as auditor of the company until after 31 December 2022 and thus did not observe the counting of physical stocks for the year ended 31 December 2022. We were unable to satisfy ourselves by alternative means concerning the stock quantities acquired at 31 December 2022 of £2,725,314 by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary. In addition, were any adjustment to this stock balance required, the strategic report would also need to be amended.

 

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

 

 

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

In respect solely of the limitation on our work relating to stock, described above:

 

Except for the matter described in the basis for qualified opinion section of our report, in the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors’ report.

In respect solely of the limitation on our work relating to stock, described above:

 

 

 

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:

 

 

 

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.

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.

 

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

DATIM LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DATIM LTD (CONTINUED)
- 8 -
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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Other matters which we are required to address

We were appointed to audit the financial statements for the year ended 31 December 2023. In the previous year the company directors took advantage of the small companies audit exemption in Companies Act 2006. Financial statements for the prior year were not subject to audit.

DATIM LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DATIM LTD (CONTINUED)
- 9 -

Use of our report

 

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Sarah Flint BSc FCA
Senior Statutory Auditor
For and on behalf of Benee Consulting Limited
23 September 2024
Chartered Accountants
Statutory Auditor
48 Durrell Drive
Rugby
Warwickshire
CV22 7GW
DATIM LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
18,963,874
14,176,122
Cost of sales
(13,111,396)
(9,805,946)
Gross profit
5,852,478
4,370,176
Administrative expenses
(3,835,131)
(2,746,663)
Other operating income
19,600
39,200
Operating profit
2,036,947
1,662,713
Interest receivable and similar income
7
3,665
43,315
Interest payable and similar expenses
(25,070)
(22,943)
Amounts written off investments
43,184
-
Profit before taxation
2,058,726
1,683,085
Tax on profit
8
(486,539)
(291,519)
Profit for the financial year
1,572,187
1,391,566

The profit and loss account has been prepared on the basis that all operations are continuing operations.

DATIM LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
£
£
Profit for the year
1,572,187
1,391,566
Other comprehensive income
-
-
Total comprehensive income for the year
1,572,187
1,391,566
DATIM LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
38,500
44,500
Tangible assets
11
1,508,059
1,444,833
Investments
12
-
0
584,910
1,546,559
2,074,243
Current assets
Stocks
13
1,881,280
2,725,314
Debtors
14
3,470,091
2,699,139
Cash at bank and in hand
876,318
85,309
6,227,689
5,509,762
Creditors: amounts falling due within one year
15
(2,515,930)
(3,766,497)
Net current assets
3,711,759
1,743,265
Total assets less current liabilities
5,258,318
3,817,508
Creditors: amounts falling due after more than one year
16
(292,749)
(384,613)
Provisions for liabilities
(153,238)
(104,277)
Net assets
4,812,331
3,328,618
Capital and reserves
Called up share capital
21
102
102
Profit and loss reserves
4,812,229
3,328,516
Total equity
4,812,331
3,328,618

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 23 September 2024 and are signed on its behalf by:
Mr M J Hughes
Director
Company registration number 08813037 (England and Wales)
DATIM LTD
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
102
2,871,182
2,871,284
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,391,566
1,391,566
Dividends
9
-
(934,232)
(934,232)
Balance at 31 December 2022
102
3,328,516
3,328,618
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,572,187
1,572,187
Dividends
9
-
(88,474)
(88,474)
Balance at 31 December 2023
102
4,812,229
4,812,331
DATIM LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

Datim Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Foxwood Industrial Park, Foxwood Road, Chesterfield, Derbyshire, S41 9RN.

The principal activity of the company continued to be the specialisation in the manufacturing of other builders' carpentry and joinery. DATIM manufactures and supplies doorsets and ironmongery to the residential, student living, hotel, and retirement living sectors across the UK and Ireland.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

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:

 

 

The financial statements of the company are consolidated in the financial statements of Datim Holdings Ltd. These consolidated financial statements are available from its registered office, Datim Supplies, Foxwood Industrial Park, Chesterfield, Derbyshire, S41 9RN.

Datim Ltd is a majority-owned subsidiary of Datim Holdings Ltd and the results of Datim Ltd Ltd are included in the consolidated financial statements of Datim Holdings Ltd which are available from: Foxwood Industrial Park, Chesterfield, Derbyshire, S41 9RN.

1.2
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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

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 dispatch 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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.3
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.5
Tangible fixed assets

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

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

Freehold land and buildings
2% on cost
Plant and equipment
20% / 25% on cost
Fixtures and fittings
25% on cost
Motor vehicles
25% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

DATIM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Stock is measured on a first in, first-out basis.

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.

1.9
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.

1.10
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 balance sheet 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.

DATIM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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.

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.

1.11
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.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

DATIM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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

1.13
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.

1.14
Retirement benefits

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

1.15
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 balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

DATIM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.16
Government grants

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

 

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

1.17
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.

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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Doorset
14,394,088
10,369,618
Ironmongery
4,569,786
3,806,504
18,963,874
14,176,122
2023
2022
£
£
Turnover analysed by geographical market
18,963,874
14,176,122
2023
2022
£
£
Other revenue
Interest income
2,607
131
Grants received
7,600
7,600
DATIM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
4
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
11,000
-
0
5
Employees

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

2023
2022
Number
Number
Total
83
67
6
Directors' remuneration
2023
2022
£
£
Remuneration paid to directors
49,602
45,244
7
Interest receivable and similar income
2023
2022
£
£
Interest receivable and similar income includes the following:
Income from participating interests
1,058
43,184
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
443,324
241,563
Adjustments in respect of prior periods
(5,746)
(21,103)
Total current tax
437,578
220,460
Deferred tax
Origination and reversal of timing differences
48,961
71,059
Total tax charge
486,539
291,519
DATIM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 21 -

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
2,058,726
1,683,085
Expected tax charge based on the standard rate of corporation tax in the UK of 23.51% (2022: 19.00%)
484,006
319,786
Tax effect of expenses that are not deductible in determining taxable profit
2,479
15
Gains not taxable
(23,856)
(14,005)
Adjustments in respect of prior years
(5,746)
(21,102)
Group relief
-
0
(2,022)
Permanent capital allowances in excess of depreciation
(19,305)
(62,212)
Deferred Tax adjustment
48,961
71,059
Taxation charge for the year
486,539
291,519

Factors that may affect future tax charges

 

From 1 April 2023, the main rate of ccorporation tax increased from 19% to 25% for companies in the United Kingdom with profits exceeding £250,000. This change will place a greater tax burden on the company in future accounting periods, in comparison with previous years.

9
Dividends
2023
2022
£
£
Interim paid
88,474
934,232
DATIM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
10
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
60,000
Amortisation and impairment
At 1 January 2023
15,500
Amortisation charged for the year
6,000
At 31 December 2023
21,500
Carrying amount
At 31 December 2023
38,500
At 31 December 2022
44,500
11
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
569,719
713,086
216,603
516,768
2,016,176
Additions
66,623
239,727
141,923
8,030
456,303
Disposals
-
0
(654)
(576)
(55,271)
(56,501)
At 31 December 2023
636,342
952,159
357,950
469,527
2,415,978
Depreciation and impairment
At 1 January 2023
21,690
301,661
108,526
139,466
571,343
Depreciation charged in the year
12,505
178,298
61,056
119,340
371,199
Eliminated in respect of disposals
-
0
(654)
(576)
(33,393)
(34,623)
At 31 December 2023
34,195
479,305
169,006
225,413
907,919
Carrying amount
At 31 December 2023
602,147
472,854
188,944
244,114
1,508,059
At 31 December 2022
548,029
411,425
108,077
377,302
1,444,833
12
Fixed asset investments
2023
2022
£
£
Other investments other than loans
-
0
584,910
DATIM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Fixed asset investments
(Continued)
- 23 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 January 2023
584,910
Disposals
(584,910)
At 31 December 2023
-
Carrying amount
At 31 December 2023
-
At 31 December 2022
584,910

The fixed assets investment previously held as an unlisted investment in a partnership has been acquired by the parent company. This action was undertaken as the partnership was ultimately owned by the parent company. Consequently, the carrying amount of the investment has been recognised as an intercompany balance

13
Stocks
2023
2022
£
£
Stocks
1,881,280
2,725,314

The differences between purchase and replacement cost are not material.

14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,939,831
2,346,422
Amounts owed by group undertakings
751,529
-
0
Other debtors
778,731
352,717
3,470,091
2,699,139
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,026,859
1,623,977
Taxation and social security
791,110
532,553
Other creditors
697,961
1,609,967
2,515,930
3,766,497
DATIM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
16
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
292,749
384,613
17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
185,503
161,262
In two to five years
171,682
255,946
357,185
417,208

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

18
Capital Commitments

As of 31 December 2023, the company has entered into forward contracts to purchase €1.35 million, maturing in 2024, at a contracted exchange rate of 1.1353. These contracts were established to support planned purchases in 2024. A prepayment of £35,706 relating to these contracts is recorded under Other Debtors as of the reporting date.

 

The directors believe that these contracts do not have a material impact on the financial statements for the year ended 31 December 2023, as the contracted exchange rate is closely aligned with the year-end rate. The contracts will be revalued in the financial statements for the year ending 2024, if still outstanding.

19
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
153,238
104,277
2023
Movements in the year:
£
Liability at 1 January 2023
104,277
Charge to profit or loss
48,961
Liability at 31 December 2023
153,238
DATIM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Deferred taxation
(Continued)
- 25 -

The deferred tax liability set out above is expected to reverse within [12 months] and relates to accelerated capital allowances that are expected to mature within the same period.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
61,596
42,756

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.

21
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
102
102
102
102
22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
728,399
49,205
DATIM LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
23
Related party transactions

During the year, included in debtors due within one year is an intercompany account balance with the parent undertaking. At the 31 December 2023 the amount due from the parent undertaking £751,528 (2022 - £1,557,135 creditors due to the parent undertaking & related party). No interest is charged on the intercompany account and the balance is repayable on demand.

During the year ended 2023, the company paid rent totalling £195,000 to the parent undertaking. In the previous year, no rent was received from the subsidiary as this was the first year

Also included in debtors due within one year is an balance due from a related company for the year amounting £ 136,456 (2022- £30,787).

During the financial year, transactions were conducted between Datim Ltd and Concealed Integrated Systems Ltd, a related party. CISCO Ltd is considered a related party due to common directorship.Purchases made on behalf of CISCO Ltd totaled £784,665, while sales to CISCO Ltd amounted to £938,562 during the same period. These transactions are disclosed in accordance with FRS102.

Other debtors due within one year includes interest free advances, of £34,821 (2022 - £52,184), to a Trust in which directors of the company serve as trustees.

 

Other debtors due within one year includes interest free advances to directors and their close family members totalling £444,577 (2022 - £ Nil). The advances were repaid in full after the balance sheet date and prior to the approval of these financial statements.

 

Included within wages and salaries is an amount of £49,602 paid to family members of the directors during the year.

 

24
Parent company

The parent company is Datim Holdings Ltd. Consolidated group accounts are available upon request from the registered office of the parent company at Foxwood Ind Pk, Foxwood Rd, Chesterfield S41 9RN.

The company is under the control of the directors of Datim Holdings by virtue of their shareholding in Datim Holdings.

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