Company registration number 02518426 (England and Wales)
D & D GRAPHIC ENGINEERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
D & D GRAPHIC ENGINEERS LIMITED
COMPANY INFORMATION
Directors
Mr D I Ross
Mr D Blakeley
Secretary
Mrs P Blakeley
Company number
02518426
Registered office
Bank Chambers
Market Street
Huddersfield
HD1 2EW
Auditor
Simpson Wood Limited
Bank Chambers
Market Street
Huddersfield
HD1 2EW
D & D GRAPHIC ENGINEERS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 32
D & D GRAPHIC ENGINEERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -
The directors present the strategic report for the year ended 31 January 2024.
Review of the business
A review of the operations of the company during the financial year and the results of those operations are as follows.
The directors have reflected on a difficult year and remain confident that even though the market is aggressive currently, the company is in a strong position to keep trading positively.
Principal risks and uncertainties
High interest rates globally are reducing profitability and under taking trade loans will see annual interest/borrowing fees rise considerably. This course of action is unavoidable considering the large format machines are of a very high value and cash purchases will not be within the companies reach.
There is still a risk of purchasing equipment from any dealer or printer, especially when thorough financial checks cannot be obtained for machines bought outside the UK. The safest way would to concentrate on buying from financially stable main manufacturers throughout the world but this is an unrealistic possibility.
Development and performance
The company has recently employed an overseas employee which will see the organisation gain access to markets previously unavailable due to the language barrier. The company feels this is a very important appointment and will reap rewards within 6 to 12 months. The company has built outstanding relationships with the major manufacturers and will continue to build on these strong ties throughout the year.
Mr D I Ross
Director
9 October 2024
D & D GRAPHIC ENGINEERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 January 2024.
Principal activities
The principal activity of the company and group continued to be that of property rentals, both commercial and residential, suppliers printing industry and allied trades and reconditioning of printing machinery.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. 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 financial statements were as follows:
Mr D I Ross
Mr D Blakeley
Auditor
In accordance with the company's articles, a resolution proposing that be reappointed as auditor of the group will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the 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
Mr D I Ross
Director
9 October 2024
D & D GRAPHIC ENGINEERS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
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.
D & D GRAPHIC ENGINEERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF D & D GRAPHIC ENGINEERS LIMITED
- 4 -
Opinion
We have audited the financial statements of D & D Graphic Engineers Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024 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, the company 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 January 2024 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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
D & D GRAPHIC ENGINEERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF D & D GRAPHIC ENGINEERS 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 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
D & D GRAPHIC ENGINEERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF D & D GRAPHIC ENGINEERS LIMITED
- 6 -
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from out commercial knowledge and experience of the sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining and understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reading minutes of meetings of those charged with governance; and
enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
D & D GRAPHIC ENGINEERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF D & D GRAPHIC ENGINEERS LIMITED
- 7 -
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.
Craig Stratford FCA
For and on behalf of
9 October 2024
Simpson Wood Limited
Chartered Accountants
Statutory Auditor
Bank Chambers
Market Street
Huddersfield
HD1 2EW
D & D GRAPHIC ENGINEERS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
16,187,777
11,026,335
Cost of sales
(14,671,157)
(9,793,602)
Gross profit
1,516,620
1,232,733
Distribution costs
(932,896)
(734,552)
Administrative expenses
(595,378)
(496,736)
Other operating income
22,226
15,571
Operating profit
4
10,572
17,016
Interest receivable and similar income
7
11,163
206
Interest payable and similar expenses
8
(137,613)
(81,553)
Fair value gains and losses on investment properties
11
1,337,500
Profit/(loss) before taxation
1,221,622
(64,331)
Tax on profit/(loss)
9
(324,573)
(11,495)
Profit/(loss) for the financial year
897,049
(75,826)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
D & D GRAPHIC ENGINEERS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
2024
2023
£
£
Profit/(loss) for the year
897,049
(75,826)
Other comprehensive income
-
-
Total comprehensive income for the year
897,049
(75,826)
Total comprehensive income for the year is all attributable to the owners of the parent company.
D & D GRAPHIC ENGINEERS LIMITED
GROUP BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
223,799
287,487
Investment properties
11
3,550,000
2,212,500
3,773,799
2,499,987
Current assets
Stocks
14
6,062,670
3,337,174
Debtors
15
3,864,799
3,205,694
Cash at bank and in hand
270,295
304,163
10,197,764
6,847,031
Creditors: amounts falling due within one year
16
(8,241,560)
(4,831,033)
Net current assets
1,956,204
2,015,998
Total assets less current liabilities
5,730,003
4,515,985
Creditors: amounts falling due after more than one year
17
(19,500)
(32,500)
Provisions for liabilities
Deferred tax liability
20
429,285
99,316
(429,285)
(99,316)
Net assets
5,281,218
4,384,169
Capital and reserves
Called up share capital
22
21,080
21,080
Other reserves
2,697,846
2,697,846
Profit and loss reserves
2,562,292
1,665,243
Total equity
5,281,218
4,384,169
The financial statements were approved by the board of directors and authorised for issue on 9 October 2024 and are signed on its behalf by:
09 October 2024
Mr D I Ross
Director
D & D GRAPHIC ENGINEERS LIMITED
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
5,681
7,575
Investment properties
11
3,550,000
2,212,500
Investments
12
20,080
20,080
3,575,761
2,240,155
Current assets
Debtors
15
66,514
32,022
Cash at bank and in hand
256,074
291,690
322,588
323,712
Creditors: amounts falling due within one year
16
(158,524)
(212,579)
Net current assets
164,064
111,133
Total assets less current liabilities
3,739,825
2,351,288
Provisions for liabilities
Deferred tax liability
20
382,522
37,200
(382,522)
(37,200)
Net assets
3,357,303
2,314,088
Capital and reserves
Called up share capital
22
21,080
21,080
Profit and loss reserves
3,336,223
2,293,008
Total equity
3,357,303
2,314,088
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 £1,043,215 (2023 - £96,185 profit).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
The financial statements were approved by the board of directors and authorised for issue on 9 October 2024 and are signed on its behalf by:
09 October 2024
Mr D I Ross
Director
Company Registration No. 02518426
D & D GRAPHIC ENGINEERS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
£
Balance at 1 February 2022
21,080
2,697,846
1,741,069
4,459,995
Year ended 31 January 2023:
Loss and total comprehensive income
-
-
(75,826)
(75,826)
Balance at 31 January 2023
21,080
2,697,846
1,665,243
4,384,169
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
897,049
897,049
Balance at 31 January 2024
21,080
2,697,846
2,562,292
5,281,218
D & D GRAPHIC ENGINEERS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 February 2022
21,080
2,196,823
2,217,903
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
96,185
96,185
Balance at 31 January 2023
21,080
2,293,008
2,314,088
Year ended 31 January 2024:
Profit and total comprehensive income
-
1,043,215
1,043,215
Balance at 31 January 2024
21,080
3,336,223
3,357,303
D & D GRAPHIC ENGINEERS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
23
187,005
(1,178,966)
Interest paid
(137,613)
(81,553)
Income taxes refunded
60,729
Net cash inflow/(outflow) from operating activities
49,392
(1,199,790)
Investing activities
Purchase of tangible fixed assets
(5,709)
(6,666)
Proceeds from disposal of tangible fixed assets
9,347
839
Interest received
11,163
206
Net cash generated from/(used in) investing activities
14,801
(5,621)
Financing activities
Repayment of bank loans
(205,815)
1,216,597
Payment of finance leases obligations
(19,500)
(20,611)
Net cash (used in)/generated from financing activities
(225,315)
1,195,986
Net decrease in cash and cash equivalents
(161,122)
(9,425)
Cash and cash equivalents at beginning of year
(208,456)
(199,031)
Cash and cash equivalents at end of year
(369,578)
(208,456)
Relating to:
Cash at bank and in hand
270,295
304,163
Bank overdrafts included in creditors payable within one year
(639,873)
(512,619)
D & D GRAPHIC ENGINEERS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
24
(28,360)
76,151
Interest paid
(7,256)
(8,397)
Income taxes refunded
3,389
Net cash (outflow)/inflow from operating activities
(35,616)
71,143
Financing activities
Repayment of bank loans
-
(23,533)
Net cash used in financing activities
-
(23,533)
Net (decrease)/increase in cash and cash equivalents
(35,616)
47,610
Cash and cash equivalents at beginning of year
291,690
244,080
Cash and cash equivalents at end of year
256,074
291,690
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
1
Accounting policies
Company information
D & D Graphic Engineers Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .
The group consists of D & D Graphic Engineers Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, 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 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 financial statements consist of the financial statements of the parent company D & D Graphic Engineers 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 January 2024. 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.
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 17 -
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 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.
1.5
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 the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
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:
Leasehold improvements
10% reducing balance
Plant and equipment
15%/25% reducing balance
Fixtures and fittings
15% reducing balance
Computers
25% on cost
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 18 -
1.7
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.
1.8
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.
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.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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.
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 19 -
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.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.11
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.
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.
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 20 -
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.
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.
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 21 -
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.
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.
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 22 -
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
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.
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.
1.18
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the 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.
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of printing machinery
16,187,777
11,026,335
2024
2023
£
£
Other revenue
Interest income
11,163
206
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(74,597)
(54,502)
Fees payable to the group's auditor for the audit of the group's financial statements
6,900
6,900
Depreciation of owned tangible fixed assets
58,124
74,182
Loss/(profit) on disposal of tangible fixed assets
1,926
(838)
Operating lease charges
4,747
1,046
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Sales
14
14
-
-
Management
3
3
2
2
Total
17
17
2
2
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
595,196
540,082
20,000
10,000
Social security costs
50,500
53,268
-
-
Pension costs
60,628
31,328
30,000
706,324
624,678
50,000
10,000
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 24 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
-
10,000
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
11,163
206
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
11,163
206
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
129,141
71,951
Other interest on financial liabilities
7,256
8,222
136,397
80,173
Other finance costs:
Interest on finance leases and hire purchase contracts
1,216
1,380
Total finance costs
137,613
81,553
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(3,065)
Deferred tax
Origination and reversal of timing differences
324,573
1,860
Changes in tax rates
12,700
Total deferred tax
324,573
14,560
Total tax charge
324,573
11,495
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
9
Taxation
(Continued)
- 25 -
The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit/(loss) before taxation
1,221,622
(64,331)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
305,406
(12,223)
Tax effect of expenses that are not deductible in determining taxable profit
2,536
12,508
Unutilised tax losses carried forward
5,996
22,596
Adjustments in respect of prior years
(11,386)
Other tax movements
10,635
Taxation charge
324,573
11,495
10
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 February 2023
47,318
1,338,143
55,642
58,230
108,580
1,607,913
Additions
1,553
4,156
5,709
Disposals
(25,756)
(29,869)
(55,625)
At 31 January 2024
47,318
1,312,387
57,195
62,386
78,711
1,557,997
Depreciation and impairment
At 1 February 2023
41,257
1,097,899
54,999
43,356
82,915
1,320,426
Depreciation charged in the year
606
24,335
754
4,708
27,721
58,124
Eliminated in respect of disposals
(17,239)
(27,113)
(44,352)
At 31 January 2024
41,863
1,104,995
55,753
48,064
83,523
1,334,198
Carrying amount
At 31 January 2024
5,455
207,392
1,442
14,322
(4,812)
223,799
At 31 January 2023
6,061
240,244
643
14,874
25,665
287,487
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
10
Tangible fixed assets
(Continued)
- 26 -
Company
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 February 2023 and 31 January 2024
91,268
12,000
103,268
Depreciation and impairment
At 1 February 2023
88,545
7,148
95,693
Depreciation charged in the year
681
1,213
1,894
At 31 January 2024
89,226
8,361
97,587
Carrying amount
At 31 January 2024
2,042
3,639
5,681
At 31 January 2023
2,723
4,852
7,575
11
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 February 2023
2,212,500
2,212,500
Net gains or losses through fair value adjustments
1,337,500
1,337,500
At 31 January 2024
3,550,000
3,550,000
Investment property comprises of both commercial and residential lettings. The fair value of the investment properties has been arrived at on the basis of a valuation prepared by Fisher German, a company registered as chartered surveyors, in August 2023 . The valuation was made on an open market basis by reference to market evidence of transaction prices and rental values for similar properties and the directors are of the opinion that the valuation remains appropriate at the year end.
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
20,080
20,080
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
12
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2023 and 31 January 2024
20,080
Carrying amount
At 31 January 2024
20,080
At 31 January 2023
20,080
13
Subsidiaries
Details of the company's subsidiaries at 31 January 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
B.B.R. Graphic Engineers (Yorkshire) Limited
England
Ordinary
100.00
BBR Graphic Sales Limited
England
Ordinary
100.00
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
10,000
12,000
-
-
Work in progress
12,614
3,500
-
-
Finished goods and goods for resale
6,040,056
3,321,674
6,062,670
3,337,174
-
-
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 28 -
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,316,606
2,861,258
14,312
21,445
Other debtors
82,702
26,200
41,629
1,450
Prepayments and accrued income
415,569
273,710
10,573
9,127
3,814,877
3,161,168
66,514
32,022
Amounts falling due after more than one year:
Deferred tax asset (note 20)
49,922
44,526
Total debtors
3,864,799
3,205,694
66,514
32,022
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
18
2,351,232
2,429,793
Obligations under finance leases
19
13,000
19,500
Trade creditors
4,663,239
1,352,572
714
2,100
Other taxation and social security
77,811
76,176
6,581
5,551
Other creditors
495,538
542,866
144,354
198,053
Accruals and deferred income
640,740
410,126
6,875
6,875
8,241,560
4,831,033
158,524
212,579
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
19
19,500
32,500
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 29 -
18
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,711,359
1,917,174
Bank overdrafts
639,873
512,619
2,351,232
2,429,793
-
-
Payable within one year
2,351,232
2,429,793
The bank overdraft and loan are secured by a cross guarantee and debenture dated 11 June 1999 in favour of Barclays Bank PLC.
Barclays Security Trustee Limited also have a fixed and floating charge dated 4 February 2019 over the undertaking of the company.
The bank overdraft is repayable on demand with a variable interest rate. The bank loan is a short term trade loan to meet working capital requirements.
19
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
32,500
52,000
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
20
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
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
84,273
99,316
-
-
Tax losses
-
-
49,922
44,526
Revaluations
345,012
-
-
-
429,285
99,316
49,922
44,526
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
20
Deferred taxation
(Continued)
- 30 -
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
37,510
37,200
-
-
Revaluations
345,012
-
-
-
382,522
37,200
-
-
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 February 2023
54,790
37,200
Charge to profit or loss
324,573
345,322
Liability at 31 January 2024
379,363
382,522
£10,371 of the deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
The deferred tax asset will reverse as and when profits are generated in future years.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
60,628
31,328
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.
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
21,080
21,080
21,080
21,080
The company has one class of ordinary shares which carry no right to fixed income and equal voting rights.
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 31 -
23
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit/(loss) for the year after tax
897,049
(75,826)
Adjustments for:
Taxation charged
324,573
11,495
Finance costs
137,613
81,553
Investment income
(11,163)
(206)
Loss/(gain) on disposal of tangible fixed assets
1,926
(838)
Fair value gain on investment properties
(1,337,500)
Depreciation and impairment of tangible fixed assets
58,124
74,182
Movements in working capital:
Increase in stocks
(2,725,496)
(1,266,189)
Increase in debtors
(653,709)
(268,491)
Increase in creditors
3,495,588
265,354
Cash generated from/(absorbed by) operations
187,005
(1,178,966)
24
Cash (absorbed by)/generated from operations - company
2024
2023
£
£
Profit for the year after tax
1,043,215
96,185
Adjustments for:
Taxation charged
345,322
6,168
Finance costs
7,256
8,397
Fair value gain on investment properties
(1,337,500)
Depreciation and impairment of tangible fixed assets
1,894
2,525
Movements in working capital:
(Increase)/decrease in debtors
(34,492)
15,934
Decrease in creditors
(54,055)
(53,058)
Cash (absorbed by)/generated from operations
(28,360)
76,151
D & D GRAPHIC ENGINEERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 32 -
25
Analysis of changes in net debt - group
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
304,163
(33,868)
270,295
Bank overdrafts
(512,619)
(127,254)
(639,873)
(208,456)
(161,122)
(369,578)
Borrowings excluding overdrafts
(1,917,174)
205,815
(1,711,359)
Obligations under finance leases
(52,000)
19,500
(32,500)
(2,177,630)
64,193
(2,113,437)
26
Analysis of changes in net funds - company
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
291,690
(35,616)
256,074
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