Company registration number 14533460 (England and Wales)
DALE SERVICES GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
DALE SERVICES GROUP LIMITED
COMPANY INFORMATION
DIRECTORS
Iwan Davies
(Appointed 9 December 2022)
Jonathan Davies
(Appointed 1 October 2023)
Mrs C Davies
(Appointed 1 October 2023)
Ms E J Davies
(Appointed 1 October 2023)
COMPANY NUMBER
14533460
REGISTERED OFFICE
Halden House
Cardiff Road, Glan Y Llyn
Taffs Well
Cardiff
CF15 7QD
AUDITOR
Kilsby & Williams LLP
Cedar House
Hazell Drive
Newport
Gwent
NP10 8FY
DALE SERVICES GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 10
Profit and loss account
11
Group statement of comprehensive income
12
Group balance sheet
13 - 14
Company balance sheet
15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18 - 19
Notes to the financial statements
20 - 40
DALE SERVICES GROUP LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for Dale Services Group Limited and its subsidiary companies for the period ended 31 December 2023.
On 9 December 2022 the Company was incorporated on 31 January 2023 the Company acquired Dale Building Maintenance Limited. Details of the acquisition are set out in the notes.
PRINCIPAL ACTIVITIES
The principal activity of the group continued to be that of:
- Reactive Facilities Maintenance
- Minor work & Refurbishment
- Insurance Restoration Services
REVIEW OF THE BUSINESS
The directors present the strategic report for the period ended 31 December 2023.
RESULTS, PERFORMANCE AND BUSINESS ENVIRONMENT
The trading results for the period are summarised as follows:
£
Year Ended
31 December
2023
Turnover
14,134,132
Gross margin
3,914,911
27.70%
Operating profit
2,179,250
15.42%
KEY PERFORMANCE INDICATORS (KPI'S)
The Group's key financial performance indicators are -
Turnover per employee
126,198
Net profit per employee
16,689
STRATEGY
Dale Building Maintenance Ltd are committed to delivering exceptional property maintenance services across South Wales and the South West of England. With over 38 years of experience as a family-run business, we pride ourselves on our deep-rooted values of trust, reliability, quality and openness to enhance shareholder value.
Our strategy is to continue building long-term relationships with our clients by providing tailored solutions that meet their unique needs, ensuring high standards of safety and compliance in every project we undertake. We aim to expand our service offerings while maintaining the personalized touch that has been the cornerstone of our business for decades.
DALE SERVICES GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
The expertise, commitment and support of the company employees is central to our success. We would like to thank all of our colleagues for their hard work to help deliver these results.
OUR MISSION
Our vision is to be the preferred maintenance partner for both residential and commercial properties in our region, known for our unwavering commitment to quality, integrity, and customer satisfaction.
We are dedicated to investing in our skilled workforce, embracing sustainable practices, and leveraging the latest technologies to enhance our efficiency and responsiveness. As we grow, our focus remains on preserving our reputation for excellence, fostering a positive work environment, and contributing to the communities we serve.
OBJECTIVES
- To add value to our customers and exceed their expectations through the excellent delivery of our service.
- To help create an integrated team that is customer focused and works proactively together.
- To ensure that Dale Building Maintenance is our customers first choice when considering the development of a long term relationship.
- To work in partnership with our clients in pursuit of excellence.
- To ensure we comply with all statutory requirements.
- To achieve the highest standards in service delivery, with a responsibility of ownership.
- To continually train our workforce at all levels to the highest possible standard.
- To ensure our customer charter is adhered to at all times.
PRINCIPAL RISKS & UNCERTAINTIES
The group has maintained its position as one of the leading property maintenance companies operating in South Wales and the West of England. It has been a challenge to maintain gross margins during the year especially with labour and fuel costs increasing substantially.
Recruiting management staff and skilled labour continues to be a major issue for the business. This has affected the growth of the group during the year but the senior management team are confident that skilled labour will become more readily available in the coming year.
Credit risk - The company has well established policies and procedures that require appropriate credit checks on potential customers before contracts and services are provided. The amount of exposure to any individual customer is subject to a limit that is reassessed by the company on a regular basis.
FUTURE DEVELOPMENTS
The two new Directors of the subsidiary company Dale Building Maintenance Limited, who were long term employees of this company, have settled into their new roles and it is anticipated that further senior appointments will be made in the near future.
The development of a new Fire Safety department is underway which will open a new avenue of work in new sectors for the business.
DALE SERVICES GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -
Iwan Davies
Director
1 October 2024
DALE SERVICES GROUP LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -
The directors present their annual report and financial statements for the period ended 31 December 2023.
The Company was incorporated on 9 December 2022. This is the first financial period for which the financial statements have been prepared.
RESULTS AND DIVIDENDS
The results for the period are set out on page 11.
Ordinary dividends were paid amounting to £171,000.00. The directors do not recommend payment of a further dividend.
DIRECTORS
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Iwan Davies
(Appointed 9 December 2022)
Jonathan Davies
(Appointed 1 October 2023)
Mrs C Davies
(Appointed 1 October 2023)
Ms E J Davies
(Appointed 1 October 2023)
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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
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.
DALE SERVICES GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 5 -
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.
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
Iwan Davies
DIRECTOR
1 October 2024
DALE SERVICES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DALE SERVICES GROUP LIMITED
- 6 -
Opinion
We have audited the financial statements of Dale Services Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2023 which comprise the group profit and loss account, 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 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 group's and the parent company's affairs as at 31 December 2023 and of the group's profit for the period 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 group and parent 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 group's and parent 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.
DALE SERVICES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DALE SERVICES GROUP LIMITED
- 7 -
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 period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the 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 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.
DALE SERVICES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DALE SERVICES GROUP LIMITED
- 8 -
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 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 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
DALE SERVICES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DALE SERVICES GROUP LIMITED
- 9 -
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
•
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
•
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
•
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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.
DALE SERVICES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DALE SERVICES GROUP LIMITED
- 10 -
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.
Jonathan Harrhy
Senior Statutory Auditor
For and on behalf of
Kilsby & Williams LLP
Chartered accountants & statutory auditor
Cedar House
Hazell Drive
Newport
Gwent
NP10 8FY
DALE SERVICES GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 11 -
2023
ended
31 December
2023
Notes
£
TURNOVER
3
14,134,132
Cost of sales
(10,219,221)
GROSS PROFIT
3,914,911
Administrative expenses
(1,744,432)
Other operating income
8,771
OPERATING PROFIT
4
2,179,250
Interest receivable and similar income
7
7,106
Interest payable and similar expenses
8
(18,820)
PROFIT BEFORE TAXATION
2,167,536
Tax on profit
9
(298,416)
PROFIT FOR THE FINANCIAL PERIOD
24
1,869,120
Profit for the financial period is attributable to:
- Owners of the parent company
1,776,731
- Non-controlling interests
92,389
1,869,120
DALE SERVICES GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 12 -
2023
ended
31 December
2023
£
PROFIT FOR THE PERIOD
1,869,120
OTHER COMPREHENSIVE INCOME
-
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
1,869,120
Total comprehensive income for the period is attributable to:
- Owners of the parent company
1,776,731
- Non-controlling interests
92,389
1,869,120
DALE SERVICES GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 13 -
2023
Notes
£
FIXED ASSETS
Negative goodwill
11
(1,117,087)
Tangible assets
12
883,405
CURRENT ASSETS
Debtors
16
4,357,669
Cash at bank and in hand
1,640,775
5,998,444
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
17
(2,668,476)
NET CURRENT ASSETS
3,329,968
TOTAL ASSETS LESS CURRENT LIABILITIES
3,096,286
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
18
(386,376)
PROVISIONS FOR LIABILITIES
Provisions
20
(96,000)
Deferred tax liability
21
(103,289)
NET ASSETS
2,510,621
CAPITAL AND RESERVES
Called up share capital
23
100
Share premium account
24
812,401
Profit and loss reserves
24
1,605,731
EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY
2,418,232
NON-CONTROLLING INTERESTS
92,389
2,510,621
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
DALE SERVICES GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 14 -
The financial statements were approved by the board of directors and authorised for issue on 1 October 2024 and are signed on its behalf by:
01 October 2024
Iwan Davies
Director
Company registration number 14533460 (England and Wales)
DALE SERVICES GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 15 -
2023
Notes
£
FIXED ASSETS
Investments
13
1,469,815
CURRENT ASSETS
Debtors
16
80,482
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
17
(141,546)
NET CURRENT LIABILITIES
(61,064)
TOTAL ASSETS LESS CURRENT LIABILITIES
1,408,751
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
18
(47,250)
NET ASSETS
1,361,501
CAPITAL AND RESERVES
Called up share capital
23
100
Share premium account
24
812,401
Profit and loss reserves
24
549,000
TOTAL EQUITY
1,361,501
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 £720,000.
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 1 October 2024 and are signed on its behalf by:
01 October 2024
Iwan Davies
Director
Company registration number 14533460 (England and Wales)
DALE SERVICES GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 16 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
BALANCE AT 9 DECEMBER 2022
-
PERIOD ENDED 31 DECEMBER 2023:
Profit and total comprehensive income
-
-
1,776,731
1,776,731
92,389
1,869,120
Issue of share capital
23
100
812,401
-
812,501
-
812,501
Dividends
10
-
-
(171,000)
(171,000)
-
(171,000)
BALANCE AT 31 DECEMBER 2023
100
812,401
1,605,731
2,418,232
92,389
2,510,621
DALE SERVICES GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 17 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
BALANCE AT 9 DECEMBER 2022
-
PERIOD ENDED 31 DECEMBER 2023:
Profit and total comprehensive income
-
-
720,000
720,000
Issue of share capital
23
100
812,401
-
812,501
Dividends
10
-
-
(171,000)
(171,000)
BALANCE AT 31 DECEMBER 2023
100
812,401
549,000
1,361,501
DALE SERVICES GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 18 -
2023
Notes
£
CASH FLOWS FROM OPERATING ACTIVITIES
for the period after tax
1,869,120
Adjustments for:
Taxation charged
298,416
Finance costs
18,820
Investment income
(7,106)
Gain on disposal of tangible fixed assets
(57,691)
Amortisation and impairment of intangible assets
(945,228)
Depreciation and impairment of tangible fixed assets
292,921
Increase in provisions
10,000
Movements in working capital:
Increase in debtors
(1,101,964)
Increase in creditors
466,480
Cash generated from/(absorbed by) operations
843,768
Interest paid
(18,820)
Income taxes paid
(26,708)
Net cash inflow/(outflow) from operating activities
798,240
INVESTING ACTIVITIES
Purchase of business
1,117,613
Purchase of tangible fixed assets
(20,386)
Proceeds from disposal of tangible fixed assets
57,691
Repayment of loans
150,532
Interest received
7,106
Net cash generated from/(used in) investing activities
1,312,556
FINANCING ACTIVITIES
Proceeds from issue of shares
812,401
Share issue costs
(812,401)
Payment of finance leases obligations
(299,021)
Dividends paid to equity shareholders
(171,000)
Net cash used in financing activities
(470,021)
DALE SERVICES GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
2023
Notes
£
- 19 -
NET INCREASE IN CASH AND CASH EQUIVALENTS
1,640,775
Cash and cash equivalents at beginning of period
CASH AND CASH EQUIVALENTS AT END OF PERIOD
1,640,775
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 20 -
1
ACCOUNTING POLICIES
Company information
Dale Services Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Halden House, Cardiff Road, Glan Y Llyn, Taffs Well, Cardiff, CF15 7QD.
The group consists of Dale Services Group Limited and all of its subsidiaries.
1.1
Reporting period
The Company was incorporated on 9 December 2022. This is the first financial period for which the financial statements have been prepared.
1.2
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 Group. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.3
Business combinations
In the parent company 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.
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 21 -
1.4
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Dale Services Group Limited 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 financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the 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 financial statements from the date that control commences until the date that control ceases.
1.5
Going concern
At the time of approving the 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 financial statements.
1.6
Turnover
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.
1.7
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 2 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.
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 22 -
1.8
Negative Goodwill
The excess of cost over the interest in net assets acquired through business combinations is recognised as negative goodwill in the Balance Sheet.
To the extent the negative goodwill relates to the fair value of non-monetary assets acquired, it is recognised in profit and loss in the periods in which the non-monetary assets are recovered. Any excess over the fair value of non-monetary assets is recognised in the profit and loss account in the periods expected to be benefited.
1.9
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% striaght line
Plant and equipment
25% & 33% straight line
Motor vehicles
25% straight line
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.
1.10
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 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.
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 23 -
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 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.
1.11
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.
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 24 -
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.
1.12
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.
1.13
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.
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 25 -
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.
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.
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 26 -
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.
1.14
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.
1.15
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.
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 27 -
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.
1.16
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.
1.17
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.
1.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
ACCOUNTING POLICIES
(Continued)
- 28 -
1.19
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
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.
CRITICAL JUDGEMENTS
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Amounts recoverable on contract
Amounts recoverable on contact are measured by reference to stage of completion which is calculated by carrying out valuations of works completed as a point in time and, where applicable estimating the value of works carried out after this point in time up to the balance sheet date. This requires management to estimate the value of work done on a job by job basis. The carrying value of amounts recoverable on contract at the year end was £1,745,291. Provisions against amounts recoverable on contracts are made against the value of works completed and also for future costs. Provisions are calculated and agreed following internal discussions with relevant personnel and represent management's best estimate based on a review of expected contract profitability. The carrying value of contract provisions at the balance sheet date was £156,453.
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 29 -
3
TURNOVER AND OTHER REVENUE
2023
£
Turnover analysed by class of business
Rendering of services
14,134,132
2023
£
Other revenue
Interest income
7,106
4
OPERATING PROFIT
2023
£
Operating profit for the period is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
3,000
Depreciation of owned tangible fixed assets
16,606
Depreciation of tangible fixed assets held under finance leases
276,315
Profit on disposal of tangible fixed assets
(57,691)
Release of negative goodwill
(945,228)
Operating lease charges
96,930
Amortisation of negative goodwill relates to the release of the bargain purchase in the year. The bargain purchase arose as a result of acquiring the investment at a bargain price. The balance will be released over a 2 year period.
5
EMPLOYEES
The average monthly number of persons (including directors) employed by the group and company during the period was:
Group
Company
2023
2023
Number
Number
Administrative staff
41
-
Tradesman
61
-
Total
102
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
5
EMPLOYEES
(Continued)
- 30 -
Their aggregate remuneration comprised:
Group
Company
2023
2023
£
£
Wages and salaries
4,045,008
Social security costs
156,342
-
Pension costs
37,903
4,239,253
6
DIRECTORS' REMUNERATION
2023
£
Remuneration for qualifying services
187,208
Company pension contributions to defined contribution schemes
8,463
195,671
7
INTEREST RECEIVABLE AND SIMILAR INCOME
2023
£
Interest income
Other interest income
7,106
8
INTEREST PAYABLE AND SIMILAR EXPENSES
2023
£
Other finance costs:
Interest on finance leases and hire purchase contracts
18,820
9
TAXATION
2023
£
Current tax
UK corporation tax on profits for the current period
291,968
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
9
TAXATION
2023
£
(Continued)
- 31 -
Deferred tax
Origination and reversal of timing differences
6,448
Total tax charge
298,416
The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:
2023
£
Profit before taxation
2,167,536
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52%
509,804
Tax effect of expenses that are not deductible in determining taxable profit
8,240
Tax effect of income not taxable in determining taxable profit
(221,584)
Effect of change in corporation tax rate
382
Depreciation on assets not qualifying for tax allowances
2,049
Super-deduction
(475)
Taxation charge
298,416
10
DIVIDENDS
2023
Recognised as distributions to equity holders:
£
Final paid
171,000
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 32 -
11
INTANGIBLE FIXED ASSETS
Group
Negative goodwill
£
Cost
At 9 December 2022
Additions - business combinations
(2,062,315)
At 31 December 2023
(2,062,315)
Amortisation and impairment
At 9 December 2022
Amortisation charged for the period
(945,228)
At 31 December 2023
(945,228)
Carrying amount
At 31 December 2023
(1,117,087)
The company had no intangible fixed assets at 31 December 2023.
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 33 -
12
TANGIBLE FIXED ASSETS
Group
Freehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 9 December 2022
Additions
5,429
331,387
336,816
Business combinations
435,324
206,118
1,658,075
2,299,517
Disposals
(199,781)
(199,781)
At 31 December 2023
435,324
211,547
1,789,681
2,436,552
Depreciation and impairment
At 9 December 2022
Depreciation charged in the period
8,712
8,894
275,315
292,921
Eliminated in respect of disposals
(199,781)
(199,781)
Business combinations
175,176
190,873
1,093,958
1,460,007
At 31 December 2023
183,888
199,767
1,169,492
1,553,147
Carrying amount
At 31 December 2023
251,436
11,780
620,189
883,405
The company had no tangible fixed assets at 31 December 2023.
13
FIXED ASSET INVESTMENTS
Group
Company
2023
2023
Notes
£
£
Investments in subsidiaries
14
1,469,815
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
13
FIXED ASSET INVESTMENTS
(Continued)
- 34 -
MOVEMENTS IN FIXED ASSET INVESTMENTS
Company
Shares in subsidiaries
£
Cost or valuation
At 9 December 2022
-
Additions
1,469,815
At 31 December 2023
1,469,815
Carrying amount
At 31 December 2023
1,469,815
14
SUBSIDIARIES
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Dale Building Maintenance Limited
United Kingdom
Ordinary
90.00
School Maintenance Services Limietd
United Kingdom
Ordinary
90.00
15
FINANCIAL INSTRUMENTS
Group
Company
2023
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
4,357,669
80,482
Carrying amount of financial liabilities
Measured at amortised cost
(2,407,301)
(188,796)
Financial assets measured at amortised cost includes trade debtors, amounts recoverable on contract, other debtors and prepayments and accrued income.
Financial instruments measured at amortised cost comprise finance lease obligations, trade creditors, amounts due from group undertakings, other creditors and accruals.
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 35 -
16
DEBTORS
Group
Company
2023
2023
Amounts falling due within one year:
£
£
Trade debtors
2,653,559
Gross amounts owed by contract customers
1,588,838
Other debtors
98,394
80,482
Prepayments and accrued income
16,878
4,357,669
80,482
17
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Group
Company
2023
2023
Notes
£
£
Obligations under finance leases
19
245,715
Trade creditors
911,946
Amounts owed to group undertakings
12,190
Corporation tax payable
352,664
Other taxation and social security
647,551
-
Other creditors
176,798
129,356
Accruals and deferred income
333,802
2,668,476
141,546
18
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group
Company
2023
2023
Notes
£
£
Obligations under finance leases
19
339,126
Other creditors
47,250
47,250
386,376
47,250
The hire purchase liabilities are secured on the assets to which they relate.
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 36 -
19
FINANCE LEASE OBLIGATIONS
Group
Company
2023
2023
£
£
Future minimum lease payments due under finance leases:
Within one year
270,661
In two to five years
377,947
648,608
-
Less: future finance charges
(63,767)
584,841
Finance lease payments represent rentals payable by the company or group for certain items of motor vehicles.
20
PROVISIONS FOR LIABILITIES
Group
Company
2023
2023
£
£
Dilapidations provision
96,000
-
Movements on provisions:
Dilapidations provision
Group
£
At 9 December 2022
86,000
Additional provisions in the year
10,000
At 31 December 2023
96,000
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 37 -
21
DEFERRED TAXATION
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
2023
Group
£
Accelerated capital allowances
103,823
Retirement benefit obligations
(534)
103,289
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the period:
£
£
Asset at 9 December 2022
-
-
Charge to profit or loss
6,448
-
Acquisition
96,841
-
Liability at 31 December 2023
103,289
-
The deferred tax liability set out above is expected to reverse within 12 months and relates to the accelerated capital allowances that are expected to mature within the same period.
22
RETIREMENT BENEFIT SCHEMES
2023
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
37,903
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.
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 38 -
23
SHARE CAPITAL
Group and company
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
100
100
24
RESERVES
Profit and loss account
The profit and loss account represents the accumulated profits, losses and distribution of the Group and Companies.
25
ACQUISITION OF A BUSINESS
On 31 January 2023 the group acquired 90 percent of the issued capital of Dale Building Maintenance Limited.
Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
839,511
-
839,511
Trade and other receivables
3,338,496
-
3,338,496
Cash and cash equivalents
1,517,613
-
1,517,613
Trade and other payables
(1,980,647)
-
(1,980,647)
Provisions
(86,000)
-
(86,000)
Deferred tax
(96,841)
-
(96,841)
Total identifiable net assets
3,532,132
-
3,532,132
Goodwill
(2,062,317)
Total consideration
1,469,815
The consideration was satisfied by:
£
Cash
400,000
Issue of shares
812,500
Deferred consideration
250,000
Legal fees
7,315
1,469,815
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
25
ACQUISITION OF A BUSINESS
(Continued)
- 39 -
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
14,134,132
Profit after tax
923,891
26
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
2023
£
£
Within one year
19,581
-
Between two and five years
15,998
-
35,579
-
27
ANALYSIS OF CHANGES IN NET DEBT - GROUP
2023
£
Opening net debt
Changes in net debt arising from:
Cash flows of the entity
1,055,934
Closing net funds/(debt) as analysed below
1,055,934
Closing net funds/(debt)
Cash and cash equivalents
1,640,775
Obligations under finance leases
(584,841)
1,055,934
DALE SERVICES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 40 -
28
RELATED PARTY TRANSACTIONS
Transactions with related parties
Included within other debtors is a balance owed of £12,298.49 from Payroll Resources Limited, this is part owned by one of the directors. At year-end there was a balance owed to this group of £1,935, during the year there were transactions totaling £15,999.27.
29
DIRECTORS' TRANSACTIONS
Dividends totalling £171,000 ( 2022 - £nil) were paid in the period in respect of shares held by the company's directors.
DESCRIPTION
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director 1 -
-
-
102,156
(102,600)
(444)
Director 2 -
-
-
59,490
(68,400)
(8,910)
Director 3 -
-
-
80,482
-
80,482
-
242,128
(171,000)
71,128
30
ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY
The Company is owned by I Davies and C Davies.
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