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Registered number: 10784329










DDW HOLDINGS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2024

 
DDW HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
C A Donovan 
M Donovan 




Company secretary
F A Watkins



Registered number
10784329



Registered office
14-14a Rectory Road

Benfleet

Essex

SS7 2ND




Independent auditors
MHA

910 The Crescent

Colchester Business Park

Colchester

Essex

CO4 9YQ




Bankers
Barclays Bank PLC
40-41 High Street

Chelmsford

Essex

CM1 1BE




Solicitors
Tolhurst Fisher LLP
Whitelands Business Centre

Terling Road

Hatfield Peverel

Essex

CM2 2AG





 
DDW HOLDINGS LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Consolidated Statement of Comprehensive Income
9
Consolidated Balance Sheet
10 - 11
Company Balance Sheet
12 - 13
Consolidated Statement of Changes in Equity
14
Company Statement of Changes in Equity
15
Consolidated Statement of Cash Flows
16 - 17
Consolidated Analysis of Net Debt
18
Notes to the Financial Statements
19 - 38


 
DDW HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

Introduction
 
The Directors have pleasure in presenting their report and the financial statements of the Group for the year ended 31 January 2024. 
The principal activity of the Group during the year was the retail of clothing, footwear and home furnishings. 
The original subsidiary company, Choice Fashions Limited, was established in 1966 and is 100% owned by the Group. The subsidiary is now called Choice Discount Stores Limited.

Business review
 
The results for the year ended 31 January 2024 reflect a continuing challenging retail environment. The effects from continued high inflation and a weak pound sterling have had an impact on revenue and gross profit. We continue to review product ranges both instore and online, store presentation and pricing strategies, as well as controlling costs to increase our future revenues and profits.
The Group continued to invest in its stores during the period and in October 2023 launched its new website
selling both fashion and soft home furnishings to online customers.

Future developments

The Group is continually looking for suitable sites to expand the number of retail outlets.
In addition, there is a continued focus on introducing new brands when opportunities arise, and to provide the best range of products for our customers.

Principal risks and uncertainties
 
The Directors remain alert to the risks prevalent in a commercial environment and continue to take steps to minimise and mitigate these risks. 
The key risks identified by the Directors are:
Competition
An increasing number of retailers both on the high street and online are operating within the same market segment as the Group. The Group continues to take steps to refresh its branding and store presentation to maintain its profile with customers; along with expanding its offering online through the launch of the new company website.
Price
Fashion retailing remains highly competitive in terms of selling prices, which may affect achieved gross margins.  The Group continues to focus on cost control where possible, to minimise the impact on the Group’s profitability.
Overheads
All costs within the Group have continued to increase during the period; and this will remain in the periods ahead due to continuous high levels of inflation.

Page 1

 
DDW HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Financial risk management objectives and policies

The Group uses financial instruments, other than derivatives, comprising cash and other liquid resources and various other items such as trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group’s operations. The main risks arising from the Group’s financial instruments are liquidity risk and foreign currency risk. The Group review and agree policies for managing each of these risks and they are summarised below. The policies have remained unchanged from previous periods.
Liquidity risk 
The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.
Foreign currency risk 
The Group is exposed to transaction foreign currency risk. Transaction exposures are hedged using forward hedging when this is considered to be beneficial. 

Financial key performance indicators
 
The Directors continue to use financial key performance indicators to manage the Group. The Group maintains a strong management information function which focuses on regular and accurate reporting. The financial key performance indicators reported on are:
ole48e8.png

Other key performance indicators
 
The Directors of the Group do not feel that non-financial key performance indicators will assist in the understanding of the business.


This report was approved by the board and signed on its behalf.



C A Donovan
Director

Date: 30 October 2024

Page 2

 
DDW HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024

The Directors present their report and the financial statements for the year ended 31 January 2024.

Directors

The Directors who served during the year were:

C A Donovan 
M Donovan 

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £621,000 (2023 - £747,000).

The dividends declared and paid during the financial year amounted to £750,000 (2023 - £750,000). The Directors have not recommended a further dividend for the year (2023 - £Nil).

Directors' responsibilities statement

The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group 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 for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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

Matters covered in the Group Strategic Report

In accordance with section 414c (11) of the Companies Act 2006 the Directors have chosen to include the following items in the Group Strategic Report:
Business review
Principal risks and uncertainties
Future developments

Page 3

 
DDW HOLDINGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024

Engagement with employees

During the year, the policy of providing employees with information about the Group has been continued through internal media methods in which employees has also been encouraged to present their suggestions and views on the Group's performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas.

Disabled employees

The Group gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the Group's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotions to disabled employees wherever appropriate.

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

This report was approved by the board and signed on its behalf.
 





C A Donovan
Director

Date: 30 October 2024

Page 4

 
DDW HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DDW HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of DDW Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 January 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 of 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.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 or the 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.


Page 5

 
DDW HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DDW HOLDINGS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group 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 Group 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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 set out on page 3, 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 Group's and 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
DDW HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DDW HOLDINGS LIMITED (CONTINUED)


Auditors' 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 Auditors' 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 Group 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:
 
Enquiry of management around actual and potential litigation and claims;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluation of the business rationale of significant transactions    outside the normal course of business and reviewing accounting estimates for bias;
Reviewing minutes of meetings of those charged with governance; and
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance    with applicable laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 Auditors' 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.


Page 7

 
DDW HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DDW HOLDINGS LIMITED (CONTINUED)





Cara Miller ACCA (Senior Statutory Auditor)
  
for and on behalf of
MHA, Senior Statutory Auditor
 
Colchester, United Kingdom

Date: 30 October 2024 
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales
(registered number OC312313).
Page 8

 
DDW HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
Note
£000
£000

  

Turnover
 4 
31,871
31,057

Cost of sales
  
(15,304)
(14,954)

Gross profit
  
16,567
16,103

Administrative expenses
  
(15,713)
(15,174)

Other operating income
 5 
116
114

Operating profit
 6 
970
1,043

Interest receivable and similar income
 10 
10
-

Interest payable and similar expenses
  
(1)
-

Profit before taxation
  
979
1,043

Tax on profit
 12 
(320)
(231)

Profit for the financial year
  
659
812

Profit for the year attributable to:
  

Non-controlling interests
  
39
65

Owners of the parent Company
  
620
747

  
659
812

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023 - £NIL).

The notes on pages 19 to 38 form part of these financial statements.

Page 9

 
DDW HOLDINGS LIMITED
REGISTERED NUMBER: 10784329

CONSOLIDATED BALANCE SHEET
AS AT 31 JANUARY 2024

2024
2024
2023
2023
Note
£000
£000
£000
£000

Fixed assets
  

Intangible assets
 14 
1,156
1,319

Tangible assets
 15 
2,403
2,091

  
3,559
3,410

Current assets
  

Stocks
 17 
4,745
4,907

Debtors: amounts falling due within one year
 18 
1,194
697

Cash at bank and in hand
 19 
2,374
2,958

  
8,313
8,562

Creditors: amounts falling due within one year
 20 
(5,701)
(5,694)

Net current assets
  
 
 
2,612
 
 
2,868

Total assets less current liabilities
  
6,171
6,278

Provisions for liabilities
  

Deferred taxation
 21 
(46)
-

Other provisions
 22 
(103)
(165)

  
 
 
(149)
 
 
(165)

Net assets excluding pension asset
  
6,022
6,113

Net assets
  
6,022
6,113


Capital and reserves
  

Called up share capital 
 23 
1
1

Merger reserve
 24 
3,544
3,544

Profit and loss account
 24 
(155)
(25)

Equity attributable to owners of the parent Company
  
3,390
3,520

Non-controlling interests
  
2,632
2,593

  
6,022
6,113


Page 10

 
DDW HOLDINGS LIMITED
REGISTERED NUMBER: 10784329
    
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 October 2024.




C A Donovan
Director

The notes on pages 19 to 38 form part of these financial statements.

Page 11

 
DDW HOLDINGS LIMITED
REGISTERED NUMBER: 10784329

COMPANY BALANCE SHEET
AS AT 31 JANUARY 2024

2024
2024
2023
2023
Note
£000
£000
£000
£000

Fixed assets
  

Investments
 16 
3,300
3,300

  
3,300
3,300

Current assets
  

Debtors: amounts falling due within one year
 18 
1,071
1,125

Cash at bank and in hand
 19 
190
121

  
1,261
1,246

Creditors: amounts falling due within one year
 20 
(164)
(208)

Net current assets
  
 
 
1,097
 
 
1,038

Total assets less current liabilities
  
4,397
4,338

  

  

Net assets excluding pension asset
  
4,397
4,338

Net assets
  
4,397
4,338


Capital and reserves
  

Called up share capital 
 23 
1
1

Profit and loss account brought forward
  
4,337
4,178

Profit for the year
  
809
909

Other changes in the profit and loss account

  

(750)
(750)

Profit and loss account carried forward
  
4,396
4,337

  
4,397
4,338


Page 12

 
DDW HOLDINGS LIMITED
REGISTERED NUMBER: 10784329
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 October 2024.


C A Donovan
Director

The notes on pages 19 to 38 form part of these financial statements.

Page 13

 
DDW HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024


Called up share capital
Merger reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£000
£000
£000
£000
£000
£000


At 1 February 2022
1
3,544
(22)
3,523
2,528
6,051


Comprehensive income for the year

Profit for the year
-
-
747
747
65
812
Total comprehensive income for the year
-
-
747
747
65
812


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(750)
(750)
-
(750)


Total transactions with owners
-
-
(750)
(750)
-
(750)



At 1 February 2023
1
3,544
(25)
3,520
2,593
6,113


Comprehensive income for the year

Profit for the year
-
-
620
620
39
659
Total comprehensive income for the year
-
-
620
620
39
659


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(750)
(750)
-
(750)


Total transactions with owners
-
-
(750)
(750)
-
(750)


At 31 January 2024
1
3,544
(155)
3,390
2,632
6,022


The notes on pages 19 to 38 form part of these financial statements.

Page 14

 
DDW HOLDINGS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024


Called up share capital
Profit and loss account
Total equity

£000
£000
£000


At 1 February 2022
1
4,178
4,179


Comprehensive income for the year

Profit for the year
-
909
909
Total comprehensive income for the year
-
909
909


Contributions by and distributions to owners

Dividends: Equity capital
-
(750)
(750)


Total transactions with owners
-
(750)
(750)



At 1 February 2023
1
4,337
4,338


Comprehensive income for the year

Profit for the year
-
809
809
Total comprehensive income for the year
-
809
809


Contributions by and distributions to owners

Dividends: Equity capital
-
(750)
(750)


Total transactions with owners
-
(750)
(750)


At 31 January 2024
1
4,396
4,397


The notes on pages 19 to 38 form part of these financial statements.

Page 15

 
DDW HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024

2024
2023
Note
£000
£000

Cash flows from operating activities
  

Profit for the financial year
  
659
812

Adjustments for:
  

Amortisation of intangible assets
 14 
250
228

Depreciation of tangible assets
 15 
441
411

(Profit)/Loss on disposal of tangible assets
  
23
(19)

Interest paid
  
1
-

Interest received
 10 
(10)
-

Taxation charge
 12 
321
231

Decrease/(increase) in stocks
  
162
(698)

(Increase)/decrease in debtors
  
(515)
526

(Decrease) in creditors
  
(96)
(483)

Increase/(decrease) in amounts owed to groups
  
118
(374)

(Decrease)/increase in provisions
  
(62)
2

Corporation tax (paid)
  
(272)
(250)

Net cash generated from operating activities

  

1,020
386

  

Cash flows from investing activities
  

Purchase of intangible fixed assets
 14 
(87)
(178)

Purchase of tangible fixed assets
 15 
(783)
(747)

Sale of tangible fixed assets
  
7
37

Interest received
  
10
-

Net cash from investing activities

  

(853)
(888)

Cash flows from financing activities
  

Dividends paid
 13 
(750)
(750)

Interest paid
  
(1)
-

Net cash used in financing activities
  
(751)
(750)

Net (decrease) in cash and cash equivalents
  
(584)
(1,252)
Page 16

 
DDW HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024




2024
2023

Note
£000
£000



Cash and cash equivalents at beginning of year
 19 
2,958
4,210

Cash and cash equivalents at the end of year
 19 
2,374
2,958


Cash and cash equivalents at the end of year comprise:
  

Cash at bank and in hand
 19 
2,374
2,958

  
2,374
2,958


The notes on pages 19 to 38 form part of these financial statements.

Page 17

 
DDW HOLDINGS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JANUARY 2024




At 1 February 2023
Cash flows
At 31 January 2024
£000

£000

£000

Cash at bank and in hand

2,958

(584)

2,374


2,958
(584)
2,374

The notes on pages 19 to 38 form part of these financial statements.

Page 18

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

1.


General information

DDW Holdings Limited is a private Company limited by shares, incorporated in England and Wales. The Company registered number is 10784329. The registered office and principal place of business is 14-14a Rectory Road, Hadleigh, Benfleet, Essex, SS7 2ND.
The principal activity of the Group was the retail of clothing, footwear and home furnishings.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The Directors assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Group and Company to continue as a going concern. The Directors make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Group and Company has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Group's and Company's ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

Page 19

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.5

Revenue

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 20

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.8

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.9

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 21

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.12

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 22

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line and reducing balance method.

Depreciation is provided on the following basis:

Freehold property
-
2% straight line
Long-term leasehold property
-
Over the period of the lease
Motor vehicles
-
25% reducing balance
Fixtures and fittings
-
10%, 20% or 33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.15

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 23

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.16

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand.


 
2.18

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.20

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Page 24

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.20
Financial instruments (continued)


Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
 
Page 25

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.20
Financial instruments (continued)


Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

 
2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Many of the amounts included in the financial statements involve the use of judgement and/or estimation. These judgements and estimates are based on managements's best knowledge of the relevant facts and circumstances, having regard to prior experience, but actual results may differ from the amounts included in the financial statements. Information about such judgements and estimations is contained in the accounting policies and/or the notes to the financial statements and the key areas summarised below:
 
Depreciation rates are based on estimated of the useful lives and residual values of the assets involved.
Stock provisions are based on the estimated recoverability of goods held in stock which have a lower net residual value.
Dilapidation provision is based on the estimated cost of refurbishing properties which are currently occupied by the Group.


4.


Turnover

All turnover is attributable to the principal activity of the Group.

All turnover arose within the United Kingdom.

Page 26

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

5.


Other operating income

Group
2024
Group
2023
£000
£000

Landlord contributions
63
78

Sundry income
53
36

116
114



6.


Operating profit

The operating profit is stated after charging:

Group
2024
Group
2023
£000
£000

Depreciation of tangible fixed assets
441
411

Amortisation of intangible fixed assets
228
228

Other operating lease rentals
2,476
2,464

(Loss)/Profit on disposal of tangible fixed assets
23
(19)


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


Group
2024
Group
2023
£000
£000

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
3
2

Fees payable to the Company's auditors in respect of:

Audit-related assurance services
24
21

Taxation compliance services
3
3

All other services
5
5

Page 27

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

8.


Employees

Staff costs, including Directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000


Wages and salaries
7,084
6,564
14
15

Social security costs
513
485
-
-

Cost of defined contribution scheme
140
120
-
-

7,737
7,169
14
15


The average monthly number of employees, including the Directors, during the year was as follows:


        2024
        2023
            No.
            No.







Administrative staff
27
25



Warehouse Staff
49
48



Sales staff
354
355

430
428

The Company has no employees other than the Directors, who did not receive any remuneration (2023 - £NIL)

9.


Directors' remuneration

Group
2024
Group
2023
£000
£000

Directors' emoluments
499
459

Group contributions to defined contribution pension schemes
38
31

537
490


During the year retirement benefits were accruing to 3 Directors (2023 - 3) in respect of defined contribution pension schemes.

The highest paid Director received remuneration of £195,000 (2023 - £175,000).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £15,000 (2023 - £15,000).

Page 28

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

10.


Interest receivable

Group
2024
Group
2023
£000
£000


Other interest receivable
10
-

10
-


11.


Interest payable and similar expenses

Group
2024
Group
2023
£000
£000


Other interest payable
1
-

1
-


12.


Taxation


Group
2024
Group
2023
£000
£000

Corporation tax


Current tax on profits for the year
256
213

Adjustments in respect of previous periods
-
(1)


256
212


Total current tax
256
212

Deferred tax


Origination and reversal of timing differences
64
14

Changes to tax rates
-
5

Total deferred tax
64
19


Tax on profit
320
231
Page 29

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

Group
2024
Group
2023
£000
£000


Profit on ordinary activities before tax
979
1,043


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
245
198

Effects of:


Non-tax deductible amortisation of goodwill and impairment
11
43

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
2

Capital allowances for year in excess of depreciation
64
(15)

Adjustments to tax charge in respect of prior periods
-
(1)

Remeasurement of deferred tax for changes in tax rates
-
4

Total tax charge for the year
320
231


Factors that may affect future tax charges

There were no factors that may affect future tax charges.




13.


Dividends

Group
2024
Group
2023
£000
£000


Dividends paid
750
750

750
750

Page 30

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

14.


Intangible assets

Group and Company





Computer software
Goodwill
Total

£000
£000
£000



Cost


At 1 February 2023
178
2,281
2,459


Additions
87
-
87



At 31 January 2024

265
2,281
2,546



Amortisation


At 1 February 2023
-
1,140
1,140


Charge for the year on owned assets
22
228
250



At 31 January 2024

22
1,368
1,390



Net book value



At 31 January 2024
243
913
1,156



At 31 January 2023
178
1,141
1,319



Page 31

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

15.


Tangible fixed assets

Group






Freehold property
Long-term leasehold property
Motor vehicles
Fixtures and fittings
Total

£000
£000
£000
£000
£000



Cost or valuation


At 1 February 2023
275
1,210
148
11,087
12,720


Additions
-
-
37
746
783


Disposals
-
-
(25)
(151)
(176)



At 31 January 2024

275
1,210
160
11,682
13,327



Depreciation


At 1 February 2023
126
667
81
9,755
10,629


Charge for the year on owned assets
6
21
21
393
441


Disposals
-
-
(17)
(129)
(146)



At 31 January 2024

132
688
85
10,019
10,924



Net book value



At 31 January 2024
143
522
75
1,663
2,403



At 31 January 2023
149
543
67
1,332
2,091

Page 32

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

16.


Fixed asset investments

Company





Investments in subsidiary companies

£000



Cost or valuation


At 1 February 2023
8,778



At 31 January 2024

8,778



Impairment


At 1 February 2023
5,478



At 31 January 2024

5,478



Net book value



At 31 January 2024
3,300



At 31 January 2023
3,300


Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Donovan Trading Limited
14-14a Rectory Road, Benfleet, Essex, England, SS7 2ND
Ordinary
100%
Choice Discount Stores Limited
14-14a Rectory Road, Benfleet, Essex, England, SS7 2ND
Ordinary
50.62%

Page 33

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
Subsidiary undertakings (continued)

The aggregate of the share capital and reserves as at 31 January 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£000
£000

Donovan Trading Limited
1
-

Choice Discount Stores Limited
4,011
78


17.


Stocks

Group
Group
2024
2023
£000
£000

Finished goods and goods for resale
4,745
4,907

4,745
4,907


The difference between purchase price or production cost of stocks and their replacement cost is not material.


18.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000


Amounts owed by group undertakings
-
-
1,070
1,125

Other debtors
27
-
-
-

Prepayments and accrued income
1,167
679
1
-

Deferred taxation
-
18
-
-

1,194
697
1,071
1,125


Page 34

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

19.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Cash at bank and in hand
2,374
2,958
190
121

2,374
2,958
190
121



20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Trade creditors
731
1,045
1
-

Amounts owed to group undertakings
1,243
1,125
30
-

Corporation tax
128
143
128
143

Other taxation and social security
631
700
-
-

Other creditors
225
253
-
60

Accruals and deferred income
2,743
2,428
5
5

5,701
5,694
164
208


Page 35

 
DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

21.


Deferred taxation


Group



2024


£000






At beginning of year
18


Charged to profit or loss
(64)



At end of year
(46)

Company


2024






At end of year
-
Group
Group
2024
2023
£000
£000

Fixed asset timing differences
(138)
(62)

Short term timing differences
13
10

Losses and other deductions
79
70

(46)
18


22.


Provisions


Group



Other provision

£000





At 1 February 2023
165


Charged to profit or loss
(62)



At 31 January 2024
103

The dilapidation provision is held in respect of properties occupied by the Company and are expected to
be utilised within five years.

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DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

23.


Share capital

Group and Company 2024
Group and Company 2023
£000
£000
Allotted, called up and fully paid



1,000 (2023 - 1,000) Ordinary shares of £1.00 each
1
1

All ordinary shares rank equally with regard to the Company's residual assets. Holders of these shares are entitled to dividends as declared and are entitled to one vote per share at general meetings of the Company.



24.


Reserves

Merger Reserve

The merger reserve represents the adjustment to reserves resulting from the use of merger relief following the Group's reorganisation.

Profit and loss account

The profit and loss account represents the accumulation of retained profits, net of dividends, that are in the form of distributable reserves.


25.


Pension commitments

The Group operates three defined contributions pension schemes.  The assets of the schemes are held separately from those of the Group in independently administered funds. 
The pension cost charge represents contributions payable by the Group to the funds and amounted to £140,000 (
2023 - £120,000). 
Contributions totaling £23,000 (
2023 - £20,000) were payable to the funds at the Balance Sheet date and are included in Creditors: Amounts falling due within one year.

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DDW HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024

26.


Commitments under operating leases

At 31 January 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£000
£000

Not later than 1 year
2,012
1,571

Later than 1 year and not later than 5 years
5,192
2,963

Later than 5 years
2,510
1,803

9,714
6,337
The Company had no operating leases during the current or previous year.


27.


Related party transactions

DDW Holdings Limited holds 50.62% of the share capital of Choice Discount Stores Limited, with Next Holdings Limited holding the other 49.38%, making them related parties through shareholding.
During the year, management charges of £1,070,000 (
2023 - £1,125,000) were charged by both Next Plc, a parent company of Next Holdings Limited and DDW Holdings Limited to Choice Discount Stores Limited. £16,000 (2023 - £15,000) was also charged by Next Holdings Limited for non-executive directorship services.
At the year end, Choice Discount Stores Limited owed £1,040,000 (
2023 - £1,125,000) to DDW Holdings Limited, £NIL (2023 - £2,000) to Famous High Street Fashions Limited, a subsidiary of Choice Discount Stores Limited and £1,070,000 (2023 - £1,140,000) was owed to Next Holdings Limited.
During the year, the Choice Discount Stores Limited also purchased goods and services from Next Retail Limited and Next Sourcing Limited, subsidiaries of Next Plc the ultimate parent company of Next Holdings Limited for £5,750,000 (
2023 - £5,712,000) and received income from Next Holdings Limited of £Nil (2023 - £Nil).
Next Retail Limited and Next Sourcing Limited are subsidiaries of Next Plc. The amount Choice Discount Store Limited owed to these companies at the year end was £173,000 (
2023 - £145,000).

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