Company registration number 11927992 (England and Wales)
DABLU LIMITED
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
DABLU LIMITED
COMPANY INFORMATION
Directors
Mrs AH Patel
Mr HC Patel
Company number
11927992
Registered office
Elthorne Gate
64 High Street
Pinner
HA5 5QA
Auditor
Aequitas Accountants Ltd
Elthorne Gate
64 High Street
Pinner
Middlesex
HA5 5QA
DABLU LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8 - 9
Company balance sheet
10
Group statement of changes in equity
12
Company statement of changes in equity
11
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 33
DABLU 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
The Group has improved sales whilst maintaining margins by focusing on added value and putting the customer's needs first. This is reflected in the key performance indicators below.
Principal risks and uncertainties
The group operates in a highly competitive market place which is a continuing risk and could result in losing sales to its competitors. The group manages this risk by providing flexible service offerings and maintaining close relationships with its customers and potential customers.
The Directors consider that the spread of activities shelters the Group from any particular threat. The Group continues to retain a strong net asset base to ensure it is well positioned for the challenges of the market as well as Brexit.
Key performance indicators
Mr HC Patel
Director
25 September 2024
DABLU LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and consolidated financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the Group continued to be that of of storage, fulfilment and distribution of goods for its customers.
The principal activity of the Company is that of a holding company.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £700,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the consolidated financial statements were as follows:
Mrs AH Patel
Mr HC Patel
Auditor
The auditor, Aequitas Accountants Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare consolidated financial statements for each financial year. Under that law the directors have elected to prepare the consolidated 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 consolidated financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these consolidated 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 ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and 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 auditor of the company 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 auditor of the company is aware of that information.
DABLU LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
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 HC Patel
Director
25 September 2024
DABLU LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DABLU LIMITED
- 4 -
Opinion
We have audited the consolidated financial statements of Dablu Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the consolidated 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 group's and the parent company's affairs as at 31 December 2023 and of the group's 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 consolidated financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the consolidated 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 consolidated financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the consolidated 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the consolidated 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 consolidated 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 consolidated 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 consolidated 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 consolidated 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 consolidated financial statements are prepared is consistent with the consolidated financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
DABLU LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DABLU LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company consolidated financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the consolidated 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 consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, the directors are responsible for assessing the parent 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated 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 consolidated financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with laws and regulations related to industry sector regulations and unethical and prohibited business practices, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and UK Tax Legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Appropriate audit procedures in response to these risks were carried out. These procedures included:
Enquiry of management, those charged with governance and the entity’s solicitors (or in-house legal team) around actual and potential litigation and claims.
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
Reviewing minutes of meetings of those charged with governance.
Reviewing internal audit reports.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
DABLU LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DABLU LIMITED
- 6 -
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members; and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above. The further removed instances of non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through
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 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.
Pankaj Patel (Senior Statutory Auditor)
For and on behalf of Aequitas Accountants Ltd
25 September 2024
Chartered Accountants
Statutory Auditor
Elthorne Gate
64 High Street
Pinner
Middlesex
HA5 5QA
DABLU LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
10,354,884
10,640,254
Cost of sales
(4,825,908)
(5,317,793)
Gross profit
5,528,976
5,322,461
Administrative expenses
(4,119,967)
(3,488,589)
Other operating income
118,642
82,721
Operating profit
4
1,527,651
1,916,593
Interest receivable and similar income
7
82,672
1,334
Interest payable and similar expenses
8
(90,784)
(67,168)
Profit before taxation
1,519,539
1,850,759
Tax on profit
9
(410,491)
(319,444)
Profit for the financial year
1,109,048
1,531,315
Other comprehensive income
Tax relating to other comprehensive income
(12,144)
Total comprehensive income for the year
1,109,048
1,519,171
Profit for the financial year is attributable to:
- Owners of the parent company
925,748
1,234,890
- Non-controlling interests
183,300
296,425
1,109,048
1,531,315
Total comprehensive income for the year is attributable to:
- Owners of the parent company
925,748
1,222,746
- Non-controlling interests
183,300
296,425
1,109,048
1,519,171
DABLU LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
4,835
5,835
Tangible assets
12
2,607,444
2,615,180
Investment property
14
2,829,689
2,829,689
5,441,968
5,450,704
Current assets
Debtors
16
2,952,100
2,994,879
Cash at bank and in hand
4,184,823
3,940,159
7,136,923
6,935,038
Creditors: amounts falling due within one year
17
(3,111,483)
(1,907,601)
Net current assets
4,025,440
5,027,437
Total assets less current liabilities
9,467,408
10,478,141
Creditors: amounts falling due after more than one year
18
(21,595)
(1,455,273)
Provisions for liabilities
Provisions
20
36,500
27,500
Deferred tax liability
21
91,228
86,331
(127,728)
(113,831)
Net assets
9,318,085
8,909,037
Capital and reserves
Called up share capital
23
10,000
10,000
Revaluation reserve
151,792
151,792
Other reserves
(2,489,517)
(2,489,517)
Retained earnings
11,038,579
10,812,831
Equity attributable to owners of the parent company
8,710,854
8,485,106
Non-controlling interests
607,231
423,931
9,318,085
8,909,037
These consolidated financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
DABLU LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
The financial statements were approved by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
25 September 2024
Mr HC Patel
Director
Company registration number 11927992 (England and Wales)
DABLU LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
2,056,685
2,056,685
Current assets
Cash at bank and in hand
2,728,651
2,514,981
Creditors: amounts falling due within one year
17
(1,492,054)
(168,948)
Net current assets
1,236,597
2,346,033
Total assets less current liabilities
3,293,282
4,402,718
Creditors: amounts falling due after more than one year
18
-
(1,423,705)
Net assets
3,293,282
2,979,013
Capital and reserves
Called up share capital
23
10,000
10,000
Retained earnings
3,283,282
2,969,013
Total equity
3,293,282
2,979,013
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,014,269 (2022 - £558,648 profit).
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 25 September 2024 and are signed on its behalf by:
25 September 2024
Mr HC Patel
Director
Company registration number 11927992 (England and Wales)
DABLU LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 January 2022
10,000
2,410,364
2,420,364
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
558,649
558,649
Balance at 31 December 2022
10,000
2,969,013
2,979,013
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,014,269
1,014,269
Dividends
10
-
(700,000)
(700,000)
Balance at 31 December 2023
10,000
3,283,282
3,293,282
DABLU LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Revaluation reserve
Other reserves
Retained earnings
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
Balance at 1 January 2022
10,000
163,936
(2,489,517)
9,577,941
7,262,360
425,888
7,688,248
Year ended 31 December 2022:
Profit for the year
-
-
-
1,234,890
1,234,890
296,425
1,531,315
Other comprehensive income:
Tax relating to other comprehensive income
-
(12,144)
-
(12,144)
-
(12,144)
Total comprehensive income
-
(12,144)
-
1,234,890
1,222,746
296,425
1,519,171
Dividends
10
-
-
-
-
-
(298,382)
(298,382)
Balance at 31 December 2022
10,000
151,792
(2,489,517)
10,812,831
8,485,106
423,931
8,909,037
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
925,748
925,748
183,300
1,109,048
Dividends
10
-
-
-
(700,000)
(700,000)
-
(700,000)
Balance at 31 December 2023
10,000
151,792
(2,489,517)
11,038,579
8,710,854
607,231
9,318,085
DABLU LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,416,500
1,931,247
Interest paid
(90,784)
(67,168)
Income taxes paid
(358,956)
(369,777)
Net cash inflow from operating activities
966,760
1,494,302
Investing activities
Purchase of tangible fixed assets
(97,632)
(91,084)
Proceeds from disposal of tangible fixed assets
-
15,085
Repayment of loans
(28,686)
-
Interest received
82,672
1,334
Net cash used in investing activities
(43,646)
(74,665)
Financing activities
Repayment of bank loans
(114,527)
(157,875)
Dividends paid to equity shareholders
(700,000)
Dividends paid to non-controlling interests
(298,382)
Net cash used in financing activities
(814,527)
(456,257)
Net increase in cash and cash equivalents
108,587
963,380
Cash and cash equivalents at beginning of year
3,935,224
2,971,844
Cash and cash equivalents at end of year
4,043,811
3,935,224
Relating to:
Cash at bank and in hand
4,184,823
3,940,159
Bank overdrafts included in creditors payable within one year
(141,012)
(4,935)
DABLU LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
26
(48)
(32)
Interest paid
(64,154)
(41,319)
Net cash outflow from operating activities
(64,202)
(41,351)
Investing activities
Interest received
82,672
Dividends received
1,000,000
600,000
Net cash generated from investing activities
1,082,672
600,000
Financing activities
Repayment of bank loans
(104,800)
(127,636)
Dividends paid to equity shareholders
(700,000)
-
Net cash used in financing activities
(804,800)
(127,636)
Net increase in cash and cash equivalents
213,670
431,013
Cash and cash equivalents at beginning of year
2,514,981
2,083,968
Cash and cash equivalents at end of year
2,728,651
2,514,981
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information
Dablu Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Elthorne Gate, 64 High Street, Pinner, HA5 5QA.
The group consists of Dablu Ltd and all of its subsidiaries.
1.1
Accounting convention
These consolidated 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 consolidated financial statements are rounded to the nearest £.
The consolidated 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.
1.2
Business combinations
In the parent company consolidated financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group consolidated financial statements consist of the consolidated financial statements of the parent company Dablu Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All consolidated financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the consolidated financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s consolidated financial statements from the date that control commences until the date that control ceases.
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the consolidated financial statements, the directors have a reasonable expectation that the group 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 consolidated financial statements.
1.5
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.
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.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business 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 20 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.7
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
1% straightline
Leasehold land and buildings
over the lease period
Plant and equipment
33% on cost and 10% on cost
Fixtures and fittings
33% on cost and 15% on cost
Computers
33% on cost and 25% on cost
Motor vehicles
33% on cost and 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 recognised in the profit and loss account.
1.8
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
Property rented to a group entity is accounted for as tangible fixed assets.
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company consolidated financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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 group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company consolidated financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.10
Impairment of fixed assets
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
1.11
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.
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.12
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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 group 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.
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 group after deducting all of its liabilities.
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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 group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 if, and only if, there is 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.
1.15
Provisions
Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.16
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.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
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 leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.19
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.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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
Rendering of services
10,168,597
10,565,434
Rental income
186,287
74,820
10,354,884
10,640,254
2023
2022
£
£
Turnover analysed by geographical market
UK
8,244,097
8,656,019
USA
2,110,787
1,984,235
10,354,884
10,640,254
2023
2022
£
£
Other revenue
Interest income
82,672
1,334
Grants received
-
193
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
39,360
(118,197)
Government grants
-
(193)
Depreciation of owned tangible fixed assets
104,168
101,072
Loss/(profit) on disposal of tangible fixed assets
1,197
(7,431)
Amortisation of intangible assets
1,000
1,000
Operating lease charges
418,818
435,741
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the consolidated financial statements of the group and company
6,500
6,500
Audit of the consolidated financial statements of the company's subsidiaries
22,990
22,100
29,490
28,600
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
69
74
2
2
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,953,796
1,995,324
Social security costs
175,763
194,675
-
-
Pension costs
471,925
98,867
2,601,484
2,288,866
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
82,672
Other interest income
-
1,334
Total income
82,672
1,334
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
82,672
-
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
69,466
45,712
Interest on invoice finance arrangements
21,318
21,456
90,784
67,168
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
403,782
332,829
Adjustments in respect of prior periods
(20,356)
Total current tax
403,782
312,473
Deferred tax
Origination and reversal of timing differences
6,709
6,971
Total tax charge
410,491
319,444
From 1st April 2023 rate of corporation tax increased from 19% to 25%
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 25 -
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
1,519,539
1,850,759
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
357,348
351,644
Tax effect of expenses that are not deductible in determining taxable profit
1,835
1,122
Effect of overseas tax rates
33,800
Under/(over) provided in prior years
(20,356)
Tax at marginal rate
(143)
Foreign exchange differences
345
(24,313)
Capital allowances in excess of depreication
(1,163)
170
Additional tax on foreign subsidiary
1,609
Deferred tax
6,709
6,971
Other timing differences
11,760
2,597
Taxation charge
410,491
319,444
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
£
£
Deferred tax arising on:
Revaluation of property
-
12,144
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
700,000
-
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
20,004
Amortisation and impairment
At 1 January 2023
14,169
Amortisation charged for the year
1,000
At 31 December 2023
15,169
Carrying amount
At 31 December 2023
4,835
At 31 December 2022
5,835
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
2,625,077
108,618
226,478
206,841
272,041
25,100
3,464,155
Additions
75,747
6,639
15,246
97,632
Disposals
(4,215)
(1,890)
(11,131)
(17,236)
At 31 December 2023
2,625,077
104,403
300,335
213,480
276,156
25,100
3,544,551
Depreciation and impairment
At 1 January 2023
162,853
79,855
148,154
187,585
245,428
25,100
848,975
Depreciation charged in the year
26,250
4,293
49,362
10,003
14,260
104,168
Eliminated in respect of disposals
(4,215)
(691)
(11,130)
(16,036)
At 31 December 2023
189,103
79,933
196,825
197,588
248,558
25,100
937,107
Carrying amount
At 31 December 2023
2,435,974
24,470
103,510
15,892
27,598
2,607,444
At 31 December 2022
2,462,224
28,763
78,324
19,256
26,613
2,615,180
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
2,056,685
2,056,685
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
2,056,685
Carrying amount
At 31 December 2023
2,056,685
At 31 December 2022
2,056,685
14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023 and 31 December 2023
2,829,689
-
The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31/12/2019 by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Cost
2,627,298
2,627,298
-
-
Accumulated depreciation
(157,654)
(131,382)
-
-
Carrying amount
2,469,644
2,495,916
-
-
15
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Subsidiaries
(Continued)
- 29 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
8C Investment Ltd
England & Wales
Ordinary
100.00
-
CD Business Services Group Ltd
England & Wales
Ordinary
-
100.00
CDL London Ltd
England & Wales
Ordinary
-
100.00
Fairway PSD Ltd
England & Wales
Ordinary
-
100.00
CDL Logistics LLC
USA
Ordinary
-
60.00
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,957,419
2,076,635
Other debtors
199,000
148,040
Prepayments and accrued income
776,752
749,463
2,933,171
2,974,138
-
-
Deferred tax asset
18,929
20,741
2,952,100
2,994,879
-
-
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
1,638,838
183,610
1,487,853
168,948
Trade creditors
476,669
543,161
Corporation tax payable
133,196
88,370
4,201
Other taxation and social security
124,948
240,157
-
-
Other creditors
130,786
106,745
Accruals and deferred income
607,046
745,558
3,111,483
1,907,601
1,492,054
168,948
Company bank loan was fully repaid after the year end.
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
21,595
1,455,273
1,423,705
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Creditors: amounts falling due after more than one year
(Continued)
- 30 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
747,935
-
747,935
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,519,421
1,633,948
1,487,853
1,592,653
Bank overdrafts
141,012
4,935
1,660,433
1,638,883
1,487,853
1,592,653
Payable within one year
1,638,838
183,610
1,487,853
168,948
Payable after one year
21,595
1,455,273
1,423,705
The long-term loans are secured by fixed and floating charges over the group assets.
20
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
36,500
27,500
-
-
Movements on provisions:
Group
£
At 1 January 2023
27,500
Additional provisions in the year
9,000
At 31 December 2023
36,500
Other provisions are in respect to restore leased premises to their original condition upon expiry of the lease term together with the amount relating to other dilapidation accruing throughout the period of occupation.
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
40,630
35,733
-
-
Investment property
50,598
50,598
-
-
Other
-
-
18,929
20,741
91,228
86,331
18,929
20,741
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
65,590
-
Charge to profit or loss
6,709
-
Liability at 31 December 2023
72,299
-
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
471,925
98,867
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
24
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
337,575
356,000
-
-
Between two and five years
102,210
426,568
-
-
439,785
782,568
-
-
25
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,109,048
1,531,315
Adjustments for:
Taxation charged
410,491
319,444
Finance costs
90,784
67,168
Investment income
(82,672)
(1,334)
Loss/(gain) on disposal of tangible fixed assets
1,197
(7,431)
Amortisation and impairment of intangible assets
1,000
1,000
Depreciation and impairment of tangible fixed assets
104,168
101,072
Increase in provisions
9,000
9,000
Movements in working capital:
Decrease/(increase) in debtors
69,656
(235,694)
(Decrease)/increase in creditors
(296,172)
146,707
Cash generated from operations
1,416,500
1,931,247
DABLU LIMITED
NOTES TO THE GROUP CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
26
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
1,014,269
558,649
Adjustments for:
Taxation charged
4,201
Finance costs
64,154
41,319
Investment income
(1,082,672)
(600,000)
Cash absorbed by operations
(48)
(32)
27
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
3,940,159
244,664
4,184,823
Bank overdrafts
(4,935)
(136,077)
(141,012)
3,935,224
108,587
4,043,811
Borrowings excluding overdrafts
(1,633,948)
114,527
(1,519,421)
2,301,276
223,114
2,524,390
28
Analysis of changes in net funds - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,514,981
213,670
2,728,651
Borrowings excluding overdrafts
(1,592,653)
104,800
(1,487,853)
922,328
318,470
1,240,798
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100Mrs AH PatelMr HC 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