Company registration number 00505471 (England and Wales)
DAVIS, SCHOTTLANDER & DAVIS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
DAVIS, SCHOTTLANDER & DAVIS LIMITED
COMPANY INFORMATION
Directors
Dr B D Schottlander
Mrs S A Schottlander
Mr I J Schottlander
Secretary
Mr M Seaman
Company number
00505471
Registered office
Fifth Avenue
Letchworth Garden City
Hertfordshire
SG6 2WD
Auditor
Newton & Garner Limited
Building 2
30 Friern Park
North Finchley
London
N12 9DA
Business address
Fifth Avenue
Letchworth Garden City
Hertfordshire
SG6 2WD
DAVIS, SCHOTTLANDER & DAVIS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 20
DAVIS, SCHOTTLANDER & DAVIS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic and directors' report together with the audited financial statements for the year ended 31 December 2023.
Review of the business
The company continued to build brand equity for its products, with a strong emphasis being placed on product quality, product development and service to customers.
The company has continued to adhere to the innovative principles which have achieved two Queen's Awards for Enterprise in the innovation category.
Principal risks and uncertainties
The directors continually monitor the risks that the company faces. Adequate finance is retained within the company to take advantage of business opportunities and the directors consider the state of affairs to be satisfactory. Foreign currency risk is managed by the use of forward rate currency purchase.
Development and performance
The year saw the continued normalisation of business conditions following the COVID-19 pandemic, as supply chain disruptions improved, cost inflation declined and the Department of Health direct supply of certain of the company's key product groups was wound down.
The company took advantage of new opportunities as they arose and continues at pace with all development projects. These will contribute to growth in the future.
Key performance indicators
2023 2022
Turnover £13,081,369 £12,480,851
Profit before tax £ 285,824 £ 1,114,995
Shareholders' funds £ 7,867,812 £ 7,632,965
Net cash flow from operating activities £ (253,896) £ 2,185,131
Mr M Seaman
Secretary
20 September 2024
DAVIS, SCHOTTLANDER & DAVIS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company during the year continued to be that of dental manufacturers and distributors and no significant changes are anticipated.
Results and dividends
The results for the year are set out on page 7.
No interim ordinary dividend was paid during the year. 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:
Dr B D Schottlander
Mrs S A Schottlander
Mr I J Schottlander
In accordance with the company's Articles of Association, Dr B D Schottlander retires by rotation and, being eligible, offers himself for re-election.
Auditor
In accordance with the company's articles, a resolution proposing that Newton & Garner Limited be reappointed as auditor of the company will be put at a General Meeting.
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;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement 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.
DAVIS, SCHOTTLANDER & DAVIS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
By order of the board
Mr M Seaman
Secretary
20 September 2024
DAVIS, SCHOTTLANDER & DAVIS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DAVIS, SCHOTTLANDER & DAVIS LIMITED
- 4 -
Opinion
We have audited the financial statements of DAVIS, SCHOTTLANDER & DAVIS LIMITED (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the 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.
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.
DAVIS, SCHOTTLANDER & DAVIS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DAVIS, SCHOTTLANDER & DAVIS LIMITED
- 5 -
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.
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. The objectives of our audit were to identify and assess the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these risks between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining sufficient appropriate audit evidence to provide a basis for our opinion, and to respond appropriately to any instances of identified or suspected non-compliance of laws and regulations.
To identify and assess such risks, the audit team:
Obtained an understanding of the nature of the company’s industry and its control environment and compliance with laws and regulations.
Inquired of management about their own identification and assessments of the risks of irregularities.
Obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The main law and regulation we considered in this context was The Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102). We assessed the required compliance with these as part of our audit procedures on the related financial statement items.
Considered the opportunities and incentives that may exist within the company for fraud and how and where the financial statements may be susceptible to fraud. Auditing standards limit the required audit procedures to identify non-compliance.
DAVIS, SCHOTTLANDER & DAVIS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DAVIS, SCHOTTLANDER & DAVIS LIMITED
- 6 -
Audit response to risks identified
The audit team identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the recording of income and the override of controls by management. Our audit procedures to respond to these risks included, but were not limited to, testing manual journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. We have also performed analytical procedures to identify any unusual relationships that may indicate any risk of material misstatement due to fraud and reviewed minutes of meetings of those charged with governance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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.
Robert Knight, FCCA, ATII
Senior Statutory Auditor
For and on behalf of Newton & Garner Limited
26 September 2024
Chartered Accountants
Statutory Auditor
Building 2
30 Friern Park
North Finchley
London
N12 9DA
DAVIS, SCHOTTLANDER & DAVIS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
13,081,369
12,480,851
Cost of sales
(6,691,917)
(5,647,554)
Gross profit
6,389,452
6,833,297
Distribution costs
(2,917,693)
(2,478,293)
Administrative expenses
(3,410,888)
(3,338,464)
Operating profit
4
60,871
1,016,540
Interest receivable and similar income
7
224,953
98,455
Profit before taxation
285,824
1,114,995
Tax on profit
8
(50,977)
(174,176)
Profit for the financial year
234,847
940,819
The profit and loss account has been prepared on the basis that all operations are continuing operations.
DAVIS, SCHOTTLANDER & DAVIS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
44,049
63,765
Current assets
Stocks
10
2,074,008
2,293,806
Debtors
11
1,845,237
1,767,246
Cash at bank and in hand
8,715,480
8,945,274
12,634,725
13,006,326
Creditors: amounts falling due within one year
12
(4,810,962)
(5,437,126)
Net current assets
7,823,763
7,569,200
Net assets
7,867,812
7,632,965
Capital and reserves
Called up share capital
14
11,802
11,802
Capital redemption reserve
5,900
5,900
Profit and loss reserves
7,850,110
7,615,263
Total equity
7,867,812
7,632,965
The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
Dr B D Schottlander
Director
Company registration number 00505471 (England and Wales)
DAVIS, SCHOTTLANDER & DAVIS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
11,802
5,900
6,674,444
6,692,146
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
940,819
940,819
Balance at 31 December 2022
11,802
5,900
7,615,263
7,632,965
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
234,847
234,847
Balance at 31 December 2023
11,802
5,900
7,850,110
7,867,812
DAVIS, SCHOTTLANDER & DAVIS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
19
(253,896)
2,185,131
Income taxes paid
(182,271)
(62,472)
Net cash (outflow)/inflow from operating activities
(436,167)
2,122,659
Investing activities
Purchase of tangible fixed assets
(18,580)
(24,568)
Proceeds from disposal of tangible fixed assets
2,500
Interest received
224,953
98,455
Net cash generated from investing activities
206,373
76,387
Net (decrease)/increase in cash and cash equivalents
(229,794)
2,199,046
Cash and cash equivalents at beginning of year
8,945,274
6,746,228
Cash and cash equivalents at end of year
8,715,480
8,945,274
DAVIS, SCHOTTLANDER & DAVIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information
DAVIS, SCHOTTLANDER & DAVIS LIMITED is a private company limited by shares incorporated in England and Wales. The registered office is Fifth Avenue, Letchworth Garden City, Hertfordshire, SG6 2WD.
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 on the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
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.
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.
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:
Fixtures, fittings & equipment
33%, 25% & 10% straight line basis
Motor vehicles
25% straight line basis
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 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.
DAVIS, SCHOTTLANDER & DAVIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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.
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
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.
DAVIS, SCHOTTLANDER & DAVIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.11
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 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.
DAVIS, SCHOTTLANDER & DAVIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
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.
1.15
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.
1.16
Research and development
Research expenditure is written off to the profit and loss account in the year in which it is incurred.
1.17
Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
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.
DAVIS, SCHOTTLANDER & DAVIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
3
Turnover
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover
United Kingdom
11,231,815
10,420,472
Overseas
1,849,554
2,060,379
13,081,369
12,480,851
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
82,397
(177,074)
Research and development costs
82,018
115,915
Auditors' remuneration
18,290
18,332
Depreciation of owned tangible fixed assets
38,296
44,821
Profit on disposal of tangible fixed assets
-
(2,500)
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Management
3
3
Distribution
42
44
Administration
10
10
Total
55
57
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,794,121
3,811,996
Social security costs
450,968
461,249
Pension costs
134,680
124,318
4,379,769
4,397,563
DAVIS, SCHOTTLANDER & DAVIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,580,175
1,846,495
Company pension contributions to defined contribution schemes
10,795
10,795
1,590,970
1,857,290
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
859,290
1,024,030
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
224,953
98,455
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
50,977
182,271
Adjustments in respect of prior periods
276
Total current tax
50,977
182,547
Deferred tax
Origination and reversal of timing differences
(8,371)
Total tax charge
50,977
174,176
DAVIS, SCHOTTLANDER & DAVIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 17 -
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
285,824
1,114,995
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
67,226
211,849
Tax effect of expenses that are not deductible in determining taxable profit
344
132
Tax effect of income not taxable in determining taxable profit
(1,087)
Permanent capital allowances in excess of depreciation
2,369
8
Research and development tax credit
(18,962)
(28,631)
Under/(over) provided in prior years
276
Deferred tax movement
(8,371)
Taxation charge for the year
50,977
174,176
9
Tangible fixed assets
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
Cost
At 1 January 2023
1,114,601
47,868
1,162,469
Additions
18,580
18,580
Disposals
(1,575)
(21,579)
(23,154)
At 31 December 2023
1,131,606
26,289
1,157,895
Depreciation and impairment
At 1 January 2023
1,057,957
40,747
1,098,704
Depreciation charged in the year
31,724
6,572
38,296
Eliminated in respect of disposals
(1,575)
(21,579)
(23,154)
At 31 December 2023
1,088,106
25,740
1,113,846
Carrying amount
At 31 December 2023
43,500
549
44,049
At 31 December 2022
56,644
7,121
63,765
DAVIS, SCHOTTLANDER & DAVIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
10
Stocks
2023
2022
£
£
Finished goods and goods for resale
2,074,008
2,293,806
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,579,174
1,545,343
Other debtors
76,215
50,537
Prepayments and accrued income
189,848
171,366
1,845,237
1,767,246
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
401,047
875,360
Amounts owed to group undertakings
2,000,000
2,000,000
Corporation tax
50,977
182,271
Other taxation and social security
723,693
629,753
Other creditors
78,074
16,971
Accruals and deferred income
1,557,171
1,732,771
4,810,962
5,437,126
13
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
134,680
124,318
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.
14
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
11,802
11,802
11,802
11,802
DAVIS, SCHOTTLANDER & DAVIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
15
Operating lease commitments
Lessee
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
240,000
240,000
Between two and five years
960,000
960,000
In over five years
192,391
432,391
1,392,391
1,632,391
The operating lease relates to property rental payments which consist of quarterly payments of £60,000. The lease term ends on 19th October 2029.
16
Events after the reporting date
There were no events post the balance sheet date that affected the financial statements.
17
Related party transactions
The company has made property rental payments to B D Schottlander & S A Schottlander totalling £240,000 (2022 - £240,000) during the year.
The company made a charitable donation of £100,000 (2022 - £nil) to Schottlander Research Charitable Trust during the year. The charity's trustees are B D Schottlander, I J Schottlander & S A Schottlander.
18
Ultimate controlling party
The company was controlled throughout the year by B D Schottlander by virtue of his majority shareholding of Schottlander Ltd. The ultimate parent company is Schottlander Ltd, incorporated in the UK. The registered office of the parent company is Fifth Avenue, Letchworth Garden City, Hertfordshire, SG6 2WD.
DAVIS, SCHOTTLANDER & DAVIS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
19
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit for the year after tax
234,847
940,819
Adjustments for:
Taxation charged
50,977
174,176
Investment income
(224,953)
(98,455)
Gain on disposal of tangible fixed assets
-
(2,500)
Depreciation and impairment of tangible fixed assets
38,296
44,821
Movements in working capital:
Decrease in stocks
219,798
86,794
(Increase)/decrease in debtors
(77,991)
483,251
(Decrease)/increase in creditors
(494,870)
556,225
Cash (absorbed by)/generated from operations
(253,896)
2,185,131
20
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
8,945,274
(229,794)
8,715,480
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