Company registration number SC298814 (Scotland)
DAMECK HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
DAMECK HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr C W Scott
Mr E C Scott
Mrs C O Scott
Mrs K M Ryan
Mr D C Ryan
Mr M A F Scott
Mrs A Scott
Mr A Scott
Company number
SC298814
Registered office
Yard Road
Blairgowrie
Scotland
PH10 6NW
Auditor
MMG Archbold Limited
78-84 Bell Street
Dundee
DD1 1RQ
Solicitors
Thorntons Law LLP
Whitehall House
33 Yeaman Shore
Dundee
Angus
Scotland
DD1 4BJ
DAMECK HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12 - 13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 42
DAMECK HOLDINGS 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

The results of the Group for the year show a profit on ordinary activities before tax of £513,416 (2023 loss £217,613) a 0.76% net profit margin (2023 -0.30%) after an increase in the year end stock provision of £844,000 as we continue in the 2024/25 financial year within the group to manage through historical excess stock levels in certain areas of the wider business. The overall performance of the Group for the year will be covered in the following sections respectively:

Annual trading conditions

The current year was an exciting year for the Umbro brand on pitch with West Ham winning the UEFA Europa Conference League against Fiorentina in Prague, in the first half of the financial year with the brand getting exposure throughout their journey in the competition, reaching an international audience both on pitch to a capacity of up to 50,000 people as well as the related media coverage.

We started the 23/24 football season with an exciting new addition to our sponsorship division, which strategically allowed us to work with the world’s greenest football club, Forest Green Rovers FC to provide them with match kit, training wear and off-field kit which aligns with their club strategy and is an exciting step for the Umbro brand to work with the only vegan football club in the world.

Hearts of Midlothian football club celebrated their 150th anniversary during the 23/24 football season. We were excited to work with the club to create a 3rd kit design for the event with an oversized club crest developed to represent the first heart worn from 1874.

The start of the football season was followed by the 2023 Rugby World Cup in France in the second half of the financial year with the brand getting international exposure throughout the competition, with England Rugby narrowly finishing in 3rd place after losing by a single point to South Africa in the semi final.

These events allowed us to reach a wider audience with the Umbro brand and an increase in sales of 28% on prior year which leads nicely into the brands milestone year next financial year where the Umbro brand is celebrating its 100 years of Umbro, in April 2024.

Off pitch the group continued to work on consolidation and improving efficiency, with a key focus on stock holding and stock turnover, successfully reducing comparable stock days to 114 (2023: 133).

Strengthening balance sheet

With a year of profitable trading for the group and continued focus in the organisation in the 2024/25 financial year as we work towards a strategy of achieving a benchmark return on investment, the company has made some difficult decisions over the year to protect the business to ensure long term success. In the current financial year, we have recognised £325,000 of a deferred tax asset on balance sheet which was sitting off balance sheet due to the performance of the business in previous years. There is a further deferred tax asset of £1,060,704 that is unrecognised at the year end.

The business has accelerated capital loan repayments to its RLS loan in the financial year by £800,000 and further accelerated capital repayments have been made post year end as part of our strategy for achieving a benchmark return on investment as we work towards minimising the burden of borrowing costs on the Group while managing cash reserves in the wider business.

In the current financial year, following the settlement of the legal case referred to in the 2023 accounts, the group's shareholding in GL Dameck Limited increased to 100% and it now directly holds its investment in Diamond Icons Ltd (24.5% shareholding).

DAMECK HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -

Strategic focus

The Groups strategic focus over the last 12 months within all areas of the business has been consolidation and efficiency within the Group as we work towards achieving a benchmark return on investment. There have been a number of steps taken in the year, including a focus on cost reduction, while we continue to navigate our way through the challenging economic conditions within the UK/EU retail sector.

As part of these steps the group completed a full restructure on the 31st of January 2024 to help strengthen the strategic focus of each brand and re-organise resources to ensure we are operating efficiently and effectively in the current economic environment and managing our risks appropriately.

The effect of the restructure on the subsidiary GL Dameck Limited is that its remaining operations now focus on one brand, Umbro, and any assets or liabilities related to the other brands transferred as part of the reorganisation to its co-subsidiaries Amplified Clothing Ltd and Ardblair Sports Importers Limited.

On 19th March 2024 the exclusive Umbro Professional Team Sports sub-license agreement with Castore was announced creating a partner in this groundbreaking elite sports relationship. Castore’s technology-led approach combined with Umbro’s century of authenticity in sports enables both partners to increase visibility on the field of play, whilst providing consumers with first class kit design and innovation.

Principal risks and uncertainties

At the date of signing the accounts, the UK economy continues to be impacted by the after effects of the pandemic; energy price rises; War in Ukraine; interest rate rises; and the UK cost of living crisis and an annual inflation below average. The business experienced further increases in services and supply prices for the year squeezing margins and overall profitability.

 

During 2023 the company welcomed a steady reduction of shipping rates as the container prices returned for the first time since 2019 to pre covid shipping costs. At the end of the financial year in January 2024, we saw a dramatic increase in shipping rates, which continues to rise over 2024 as the company navigate the instability in global supply chain, which has a number of fragile links, where disruption to one of these can have a global impact, and as a result an increase in prices including but not limited to

 

The group, in line with businesses in many industries, has been impacted by these measures but as demonstrated in the profitability, they are taking steps to manage this and working towards increasing the return on investment for the period to Jan 25.

    

The group finances its short to medium term funding requirements through a combination of third-party bank funding (a group net nil overdraft facility across various group companies), invoice discounting, import loan facilities and a government backed loan. The Group has taken a number of measures following detailed focus on the profitability within each segment in the business and continues to review and react to the changing environment to ensure it continues to grow the strength of the business with each change.

 

The group has completed a base case forecast based on its continued bank facilities which have the group repaying some of the external debt early post balance sheet date, as the business is committed to reducing its reliance on debt in the current economic environment. To the date of signing we had repaid £1,683,961 early on our government backed loan from available Group funds. A reverse stress test is not considered appropriate given headroom in place. There is of course a credit risk associated with the group’s debtor book but the directors have some credit insurance in place, have diversified the risk where possible and continue to monitor closely.

 

Based on the above, the directors are confident that the actions and strategies in place, results in the group and company being able to mitigate business threats as they arise.

DAMECK HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
Key performance indicators

In reviewing the Groups performance, management regularly review and, at brand level, consider the Groups sales achievements, forward order levels, purchasing costs including production, importing, storage and distribution and profit generation. At corporate level the Group reviews revenues, overall profitability, working capital and cashflow on a regular basis.

 

 

Key performance indicators:

 

 

2024

2023

 

Turnover (£000’s)

66,197

71,429

Total sales

Gross profit

46.7%

48.4%

Gross profit/turnover

Profit/(Loss) before taxation (£’000’s)

513

(218)

(loss)/profit before taxation

EBITDA to turnover (%)

3.0%

1.8%

EBITDA/turnover

 

Other Key performance indicators:

With the exception of the financial key performance indicators listed above, there are no other key performance indicators of the Group.

DAMECK HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -
Promoting the success of the company

The board of directors of Dameck Holdings Group consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in 172(1)(a) to (f) Companies Act 2006) in doing so have regard (amongst other matters) to:

 

 

The directors fulfil these duties through the following:

 

Risk management

As we grow, we have approved a business plan to January 2025 to allow the board to manage and evaluate the business, to ensure we can control both our resources and costs to meet the continued growth within the business. Our business and risk environment evolves with the growing economic and regulatory changes we face. It is therefore vital that we effectively identify, evaluate, manage and mitigate the risks we face, and that we continue to develop and adapt our approach to risk management to meet the Group’s needs.

 

For details of our principal risks and uncertainties and how we manage our risk environment, please see page 1.

 

Our People

The Group is committed to being a responsible business. People are at the heart of our business and for our business to succeed we need to manage our people’s performance and develop and bring through talent while ensuring we operate as efficiently as possible. We must also ensure we share common values that inform and guide our behaviour so we achieve our goals in the right way.

 

Business Relationships

Our continued growth of the Group is driven off the development and nurturing of existing relationships together with the expansion of new relationships both with customers, suppliers and business partners.

 

Community and Environment

The Group continues to support its people to create positive change for the people and communities with which we interact. We try to minimise our environmental impact and the Group have taken measures to utilise alternative carbon neutral sources of energy within the Groups head office and continues to monitor opportunities to limit our environmental impact. The company has actively participated in charitable donations of excess, out of season and out of licence stock product to encourage the reuse of product that otherwise may have contributed to landfill.

 

Shareholders

As the Board of Directors, our intention is to behave responsibly toward our shareholders and treat them fairly and equally, so they too may benefit from the successful delivery of our plan.

On behalf of the board

Mrs K M Ryan
Director
30 October 2024
DAMECK HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 5 -

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

Principal activities

The principal activity of the group continued to be that of designing, importing, wholesale and retail of branded footwear and clothing.

Results and dividends

The results for the year are set out on page 10.

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 C W Scott
Mr E C Scott
Mrs C O Scott
Mrs K M Ryan
Mr D C Ryan
Mr M A F Scott
Mrs A Scott
Mr A Scott
Mrs D W Scott
(Deceased 11 June 2023)
Auditor

MMG Chartered Accountants were re-appointed as auditor to the company and group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Energy and carbon report
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
318,208
953,968
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
8.07
27.68
Scope 2 - indirect emissions
- Electricity purchased
66.12
194.73
Total gross emissions
74.19
222.41
Intensity ratio
Tonnes CO2e per £1m turnover
1.156
3,219
Energy generation
Generated from biomass and solar panels
50.82
151.46
DAMECK HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 6 -
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the review of business and principal risks and uncertainties.

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.

On behalf of the board
Mrs K M Ryan
Director
30 October 2024
DAMECK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DAMECK HOLDINGS LIMITED
- 7 -
Opinion

We have audited the financial statements of Dameck Holdings 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 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:

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 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.

Other information

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:

DAMECK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DAMECK HOLDINGS LIMITED
- 8 -
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:

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.

We gained an understanding of the legal and regulatory framework applicable to the company and industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management, the misstatement of revenue and presentation of the consolidated results. Our audit procedures to respond to these risks included:

- Enquiry of management about their own identification and assessment of the risks of irregularities.

- Testing of the appropriateness and correct authorisation of journal entries and any other significant transactions outside the ordinary course of business including those entered into with related parties.

- Review of significant estimates to ensure there is no indication of management bias.

- Testing the completeness and correct allocation of revenue in the year.

- Review and testing of the consolidation journals.

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.

DAMECK HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DAMECK HOLDINGS LIMITED
- 9 -

The purpose of our audit work and to whom we owe our responsibilities

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.

Paul Crichton BAcc CTA CA
Senior Statutory Auditor
For and on behalf of
30 October 2024
MMG Archbold Limited
Chartered Accountants
Statutory Auditor
78-84 Bell Street
Dundee
DD1 1RQ
DAMECK HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
Continuing
Discontinued
31 January
Continuing
Discontinued
31 January
operations
operations
2024
operations
operations
2023
Notes
£
£
£
£
£
£
Turnover
3
35,232,577
30,964,644
66,197,221
38,815,482
32,613,953
71,429,435
Cost of sales
(23,099,605)
(12,193,459)
(35,293,064)
(22,281,891)
(14,587,699)
(36,869,590)
Gross profit
12,132,972
18,771,185
30,904,157
16,533,591
18,026,254
34,559,845
Distribution costs
(912,867)
(64,244)
(977,111)
(1,051,357)
(18,310)
(1,069,667)
Administrative expenses
(11,165,611)
(19,501,239)
(30,666,850)
(14,177,111)
(20,484,055)
(34,661,166)
Other operating income
751,398
-
751,398
1,809,141
-
1,809,141
Operating profit
4
805,892
(794,298)
11,594
3,114,264
(2,476,111)
638,153
Share of results of associates and joint ventures
1,565,583
-
1,565,583
-
-
-
Interest receivable and similar income
8
342
-
342
1,330
-
1,330
Interest payable and similar expenses
9
(1,156,711)
-
(1,156,711)
(857,096)
-
(857,096)
Profit/(loss) before taxation
1,215,106
(794,298)
420,808
2,258,498
(2,476,111)
(217,613)
Tax on profit/(loss)
10
237,785
-
237,785
47,643
-
47,643
Profit/(loss) for the financial year
1,452,891
(794,298)
658,593
2,306,141
(2,476,111)
(169,970)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.

The notes on pages 18 to 42 form part of these financial statements.

DAMECK HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
2024
2023
£
£
Profit/(loss) for the year
658,593
(169,970)
Other comprehensive income
Cash flow hedges gain/(loss) arising in the year
456,195
(544,911)
Total comprehensive income for the year
1,114,788
(714,881)
Total comprehensive income for the year is all attributable to the owners of the parent company.

The notes on pages 18 to 42 form part of these financial statements.

DAMECK HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
2,327,449
2,342,677
Other intangible assets
12
12,410
52,629
Total intangible assets
2,339,859
2,395,306
Tangible assets
13
506,384
583,170
Investments
14
522,951
-
0
3,369,194
2,978,476
Current assets
Stocks
18
11,025,566
13,452,374
Debtors
19
15,389,750
20,554,852
Cash at bank and in hand
7,678,839
8,565,840
34,094,155
42,573,066
Creditors: amounts falling due within one year
20
(26,333,112)
(32,267,028)
Net current assets
7,761,043
10,306,038
Total assets less current liabilities
11,130,237
13,284,514
Creditors: amounts falling due after more than one year
21
(2,260,290)
(5,867,450)
Net assets
8,869,947
7,417,064
Capital and reserves
Called up share capital
26
10,000
10,000
Hedging reserve
(88,716)
(544,911)
Other reserves
3,693
(2,337)
Profit and loss reserves
9,955,348
9,296,755
Equity attributable to owners of the parent company
9,880,325
8,759,507
Non-controlling interests
(1,010,378)
(1,342,443)
8,869,947
7,417,064

The notes on pages 18 to 42 form part of these financial statements.

DAMECK HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 JANUARY 2024
31 January 2024
- 13 -
The financial statements were approved by the board of directors and authorised for issue on 30 October 2024 and are signed on its behalf by:
30 October 2024
Mrs K M Ryan
Director
Company registration number SC298814 (Scotland)
DAMECK HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
224,063
263,604
Tangible assets
13
40,331
48,572
Investments
14
6,827,540
6,804,976
7,091,934
7,117,152
Current assets
Debtors
19
5,699,507
5,391,160
Cash at bank and in hand
618,365
1,366,817
6,317,872
6,757,977
Creditors: amounts falling due within one year
20
(3,837,628)
(4,038,894)
Net current assets
2,480,244
2,719,083
Total assets less current liabilities
9,572,178
9,836,235
Creditors: amounts falling due after more than one year
21
(26,958)
(34,117)
Net assets
9,545,220
9,802,118
Capital and reserves
Called up share capital
26
10,000
10,000
Profit and loss reserves
9,535,220
9,792,118
Total equity
9,545,220
9,802,118

The notes on pages 18 to 42 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £256,899 (2023 - £407,987 loss).

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 30 October 2024 and are signed on its behalf by:
30 October 2024
Mrs K M Ryan
Director
Company registration number SC298814 (Scotland)
DAMECK HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
Share capital
Hedging reserve
Currency translation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
£
Balance at 1 February 2022
10,000
-
0
(9,117)
9,466,725
9,467,608
(1,342,443)
8,125,165
Year ended 31 January 2023:
Loss for the year
-
-
-
(169,970)
(169,970)
-
(169,970)
Other comprehensive income:
Cash flow hedges gains
-
(544,911)
-
-
(544,911)
-
(544,911)
Total comprehensive income
-
(544,911)
-
(169,970)
(714,881)
-
(714,881)
Other movements
-
-
6,780
-
6,780
-
6,780
Balance at 31 January 2023
10,000
(544,911)
(2,337)
9,296,755
8,759,507
(1,342,443)
7,417,064
Year ended 31 January 2024:
Profit for the year
-
-
-
658,593
658,593
-
658,593
Other comprehensive income:
Cash flow hedges gains
-
456,195
-
-
456,195
-
456,195
Total comprehensive income
-
456,195
-
658,593
1,114,788
-
1,114,788
Purchase of shares in subsidiary from non-controlling interest
-
-
-
-
-
332,065
332,065
Other movements
-
-
6,030
-
6,030
-
6,030
Balance at 31 January 2024
10,000
(88,716)
3,693
9,955,348
9,880,325
(1,010,378)
8,869,947

The notes on pages 18 to 42 form part of these financial statements.

DAMECK HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 February 2022
10,000
10,200,104
10,210,104
Year ended 31 January 2023:
Loss and total comprehensive income for the year
-
(407,986)
(407,986)
Balance at 31 January 2023
10,000
9,792,118
9,802,118
Year ended 31 January 2024:
Profit and total comprehensive income
-
(256,898)
(256,898)
Balance at 31 January 2024
10,000
9,535,220
9,545,220

The notes on pages 18 to 42 form part of these financial statements.

DAMECK HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
3,053,660
1,932,965
Income taxes refunded
30,259
107,386
Net cash inflow from operating activities
3,083,919
2,040,351
Investing activities
Purchase of intangible assets
(366,940)
(15,300)
Purchase of tangible fixed assets
(37,237)
(42,642)
Proceeds from disposal of tangible fixed assets
16,966
9,018
Proceeds from disposal of subsidiaries, net of cash disposed
(55,575)
-
Proceeds from disposal of associates
1,042,632
-
Interest received
342
1,330
Net cash generated from/(used in) investing activities
600,188
(47,594)
Financing activities
Repayment of borrowings
(167,482)
(1,113,923)
Net movement on bank loans
(4,790,848)
2,801,598
Gain/(loss) on maturing derivatives
-
(415,811)
Payment of finance leases obligations
(16,256)
(19,382)
Purchase of shares in subsidiary from non-controlling interest
332,065
-
Interest paid
(1,156,711)
(857,096)
Net cash (used in)/generated from financing activities
(5,799,232)
395,386
Net (decrease)/increase in cash and cash equivalents
(2,115,125)
2,388,143
Cash and cash equivalents at beginning of year
3,921,648
1,533,505
Cash and cash equivalents at end of year
1,806,523
3,921,648
Relating to:
Cash at bank and in hand
7,678,839
8,565,840
Bank overdrafts included in creditors payable within one year
(5,872,316)
(4,644,192)

The notes on pages 18 to 42 form part of these financial statements.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 18 -
1
Accounting policies
Company information

Dameck Holdings Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Yard Road, Blairgowrie, Scotland, PH10 6NW.

 

The group consists of Dameck Holdings 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, unless otherwise stated in the accounting policies below. 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 Dameck Holdings 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.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 19 -

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.

The subsidiary companies ASI Brands Limited and Addict Holdings Limited are exempt from the requirement of the Companies Act 2006 relating to the audit of financial statements under section 479A.

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 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 returns, trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

 

 

The specific criteria of the entity's sales channels are described below.

 

Sale of goods - retail

 

Turnover from the sale of retail goods is recognised on sale to the customer, which is considered the point of delivery.

 

Sale of goods - internet based transactions

 

Turnover from the sale of goods via the internet is recognised when the risks and rewards of the goods is passed to the customer. For goods that are delivered to the customer this is the point of acceptance of the goods by the customer, and for 'click and collect' transactions this is the point of collection by the customer.

 

Sale of goods - wholesale

 

Turnover from wholesale sales is recognised when the risks and rewards of the goods is passed to the customer, which is usually at the point of dispatch of the goods.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 20 -

Interest income

 

Interest income is recognised using the effective interest rate method.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is ten years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
3 years
Brand names & trademarks
10 years
License fees
5-7 years
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% on cost
Leasehold improvements
4-5 years
Plant and equipment
25% on cost
Fixtures and fittings
20% on cost
Computers
33% on cost
Motor vehicles
20% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 21 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company 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.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 22 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
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.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 23 -
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.

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.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 24 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Derivatives

The group enters into foreign exchange forward contracts in order to manage its exposure to foreign exchange risk.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

Hedge accounting

The group designates certain hedging instruments, including derivatives, embedded derivatives and non-derivatives, as either fair value or cash flow hedges. At the inception of the hedge relationship, the group documents the relationship between the hedging instrument and the hedged item along with the risk management objectives and strategy for undertaking various hedge transactions. At the inception of the hedge and on an ongoing basis, the company documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

For derivatives that are designated and qualify as cash flow hedges, the effective portion of changes in the fair value of the hedge is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss.

 

Any gain or loss previously recognised in other comprehensive income is reclassified to profit or loss when the hedge relationship ends. This occurs when the hedging instrument expires or no longer meets the hedging criteria, the forecast transaction is no longer highly probable, the hedged debt instrument is derecognised, or the hedging instrument is terminated.

1.16
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.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 25 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.20
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.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 26 -
1.21

Sponsorship costs

The group sponsors a number of sports teams from which it then generates wholesale turnover.

 

The sponsorship costs for these relationships are recognised in accordance with the teams' season to which they relate. Costs are split into two parts, apparel and advertising rights, with the former being determined by the calculation of a fair gross margin for each club based on estimated sales and the balance being allocated to advertising rights. The relevant costs are allocated on the following basis:

 

Apparel rights - these costs are spread over the period in which apparel sales occurred;

 

Advertising rights - these costs are allocated to the period in which their benefit is deemed to be received.

1.22

Related party transactions

The group discloses transactions with related parties which are not wholly owned within the same group. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors, separate disclosure is necessary to understand the effect of the transactions on the group financial statements.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 27 -
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.

 

In preparing these financial statements, the directors have made the following judgements:

 

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Tangible fixed assets useful life and residual value

Tangible fixed assets are depreciated over their useful lives taking into account expected residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In assessing asset lives factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider factors such as current and future market conditions, the expected remaining life of the asset and projected disposal values.

Recoverability of trade debtors

Recoverability of trade debtors are evaluated and provisions for doubtful debts are made where appropriate. Provisions are based on experience, the age of debt, customer relations and payment history. The actual level of debt collected may differ from the estimated level of recovery and can therefore impact future operating results.

Stock valuation and provision

Stocks are valued at the lower of cost and net realisable value (NRV). Cost is calculated by establishing the cumulative value of the weighted average purchase price, the cost of duty, commission and shipping. These costs are reassessed regularly. NRV is calculated as the resale price less any expected further sales costs and discounts.

 

The stock provision is calculated using estimates and judgements by management. The provision is calculated to provide for prior season stock, slow moving stock, stock selling at a loss and out of license products.

.

3
Turnover and other revenue
DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
3
Turnover and other revenue
(Continued)
- 28 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
56,181,140
46,611,681
Rest of Europe
9,663,550
24,503,508
Rest of the World
352,531
314,246
66,197,221
71,429,435
2024
2023
£
£
Other revenue
Interest income
342
1,330
Rebates received
-
534,571
Profit share
-
115,506
Losses underwritten by basic Italia S.p.A
-
156,069
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(63,413)
(50,707)
Government grants
-
(92,846)
Depreciation of owned tangible fixed assets
103,251
272,210
Profit on disposal of tangible fixed assets
(6,194)
(2,636)
Amortisation of intangible assets
410,048
251,702
(Profit)/loss on disposal of intangible assets
-
162
Operating lease charges
1,426,351
1,329,750
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,250
3,250
Audit of the financial statements of the company's subsidiaries
7,714
6,000
10,964
9,250
DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 29 -
6
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
Directors
8
9
8
9
Administration
105
100
-
-
Sales
16
52
-
-
Total
129
161
8
9

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
4,232,541
4,734,307
272,814
262,891
Social security costs
394,235
470,402
25,190
25,170
Pension costs
89,099
102,859
-
0
-
0
4,715,875
5,307,568
298,004
288,061
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
272,814
331,724
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
104,252
104,252

No directors are accruing any post employment benefits and no directors are members of the company defined contribution scheme.

 

The directors have considered the key management personnel of the business and have concluded that the key management personnel are limited to the board of directors.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 30 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
342
1,330
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
342
1,330
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,015,428
715,002
Other interest on financial liabilities
139,672
140,512
1,155,100
855,514
Other finance costs:
Interest on finance leases and hire purchase contracts
1,611
1,518
Other interest
-
64
Total finance costs
1,156,711
857,096
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
88,778
27,127
Adjustments in respect of prior periods
-
0
(856)
Group tax relief
-
0
(71,842)
Total current tax
88,778
(45,571)
Deferred tax
Origination and reversal of timing differences
(2,920)
(2,072)
Previously unrecognised tax loss, tax credit or timing difference
(325,778)
-
0
Adjustment in respect of prior periods
2,135
-
0
Total deferred tax
(326,563)
(2,072)
Total tax credit
(237,785)
(47,643)
DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
10
Taxation
(Continued)
- 31 -

The actual credit 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
420,808
(217,613)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
105,202
(41,346)
Tax effect of expenses that are not deductible in determining taxable profit
72,925
204
Tax effect of income not taxable in determining taxable profit
(283,178)
-
0
Tax effect of utilisation of tax losses not previously recognised
-
0
(71,842)
Unutilised tax losses carried forward
59,459
55,159
Change in unrecognised deferred tax assets
(325,778)
-
0
Adjustments in respect of prior years
-
0
16,126
Effect of change in corporation tax rate
-
(1,747)
Permanent capital allowances in excess of depreciation
(76)
(70)
Depreciation on assets not qualifying for tax allowances
574
2,041
Amortisation on assets not qualifying for tax allowances
94,499
52,657
Under/(over) provided in prior years
-
0
(2,458)
Deferred tax not provided on current year timing differences
-
0
7,278
Other tax adjustments
38,588
(63,645)
Taxation credit
(237,785)
(47,643)
11
Discontinued operations
Sponsorship

The group entered into an arrangement with a third party relating to its sponsorship business.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 32 -
12
Intangible fixed assets
Group
Goodwill
Software
Brand names & trademarks
License fees
Total
£
£
£
£
£
Cost
At 1 February 2023
2,771,488
74,709
35,904
233,052
3,115,153
Additions
354,529
-
0
-
0
12,411
366,940
Disposals
-
0
(5,905)
(35,904)
(200,000)
(241,809)
At 31 January 2024
3,126,017
68,804
-
0
45,463
3,240,284
Amortisation and impairment
At 1 February 2023
428,811
72,374
26,881
191,781
719,847
Amortisation charged for the year
369,757
2,335
5,232
32,724
410,048
Disposals
-
0
(5,905)
(32,113)
(191,452)
(229,470)
At 31 January 2024
798,568
68,804
-
0
33,053
900,425
Carrying amount
At 31 January 2024
2,327,449
-
0
-
0
12,410
2,339,859
At 31 January 2023
2,342,677
2,335
9,023
41,271
2,395,306
Company
Goodwill
£
Cost
At 1 February 2023 and 31 January 2024
395,406
Amortisation and impairment
At 1 February 2023
131,802
Amortisation charged for the year
39,541
At 31 January 2024
171,343
Carrying amount
At 31 January 2024
224,063
At 31 January 2023
263,604
DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 33 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 February 2023
397,802
333,324
82,194
105,440
43,475
252,511
1,214,746
Additions
-
0
-
0
5,860
672
-
0
30,705
37,237
Disposals
-
0
(406,498)
(7,632)
-
0
-
0
(63,414)
(477,544)
At 31 January 2024
397,802
(73,174)
80,422
106,112
43,475
219,802
774,439
Depreciation and impairment
At 1 February 2023
110,067
262,555
41,315
105,026
43,475
69,138
631,576
Depreciation charged in the year
9,456
20,529
18,614
411
-
0
54,241
103,251
Eliminated in respect of disposals
-
0
(397,331)
(7,632)
-
0
-
0
(61,809)
(466,772)
At 31 January 2024
119,523
(114,247)
52,297
105,437
43,475
61,570
268,055
Carrying amount
At 31 January 2024
278,279
41,073
28,125
675
-
0
158,232
506,384
At 31 January 2023
287,735
70,769
40,879
414
-
0
183,373
583,170
DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 34 -
Company
Motor vehicles
£
Cost
At 1 February 2023 and 31 January 2024
59,903
Depreciation and impairment
At 1 February 2023
11,331
Depreciation charged in the year
8,241
At 31 January 2024
19,572
Carrying amount
At 31 January 2024
40,331
At 31 January 2023
48,572
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
6,827,540
6,804,976
Investments in associates
16
522,951
-
0
-
0
-
0
522,951
-
0
6,827,540
6,804,976
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 February 2023
-
Additions
522,951
At 31 January 2024
522,951
Carrying amount
At 31 January 2024
522,951
At 31 January 2023
-

During the year, the group acquired the 7.69% minority interest holding in GL Dameck Limited so that it now owns the entire issued share capital in that subsidiary.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
14
Fixed asset investments
(Continued)
- 35 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2023
6,804,976
Additions
22,564
At 31 January 2024
6,827,540
Carrying amount
At 31 January 2024
6,827,540
At 31 January 2023
6,804,976
15
Subsidiaries

Details of the company's subsidiaries at 31 January 2024 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
GL Dameck Limited
1
Retailing of sports merchandise
Ordinary
98.15
1.85
ASI Brands Limited
1
Holding Company
Ordinary
100.00
-
Ardblair Sports Importers Limited
1
Wholseale distributor of outdoor footwear and equipment
Ordinary
100.00
-
GLD Brands Limited
1
Retailing of sports merchandise
Ordinary
-
100.00
Swallowtail Lifestyle Limited
1
Retailing of sports merchandise
Ordinary
-
100.00
Amplified Clothing Limited
1
Retailing of sports merchandise
Ordinary
-
100.00
Addict Holdings Limited
2
Retailing of sports merchandise
Ordinary
-
75.00
Diamond Sports Retail Limited
1
Retailing of sports merchandise
Ordinary
-
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Yard Road, Blairgowrie, PH10 6NW
2
104-105 Saffron Hill, London, EC1N 8HB

The parent company, Dameck Holdings Limited, has provided guarantees under s479 Companies Act 2006 in respect of the following subsidiary companies:

The subsidiaries are therefore exempt from the requirements of the Companies Act relating to the audit of their financial statements.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 36 -
16
Associates

Details of associates at 31 January 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Diamond Icon Limited
29-31 Dale Street, Manchester, M1 1EY
Sports apparel development and sourcing
Ordinary
-
25

On 21 September 2023 the group acquired 500 ordinary shares in Diamond Icon Limited. Income is recognised in line with the equity accounting method.

17
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial liabilities
Measured at fair value through the Statemnet of Comprehensive Income
- Other financial liabilities
(88,716)
(544,911)
-
-

Financial instruments measured at fair value through the Statement of Comprehensive Income comprise cash flow hedges of foreign currency forward contracts recognised as derivative financial instruments.

18
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
11,025,566
13,452,374
-
0
-
0

Stock is held after provisions for impairment of £1,773,149(2023 - £1,044,205). The movement on the stock provision is recognised through cost of sales.

 

At 31 January 2024 the group increased its stock provision as a result of an overstock following the Covid-19 period and a subsequent change in trade for 2 of its brands.

 

No stock is held by the parent company.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 37 -
19
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
8,075,382
13,683,393
40,318
39,326
Corporation tax recoverable
110,943
141,202
30,862
30,862
Amounts owed by group undertakings
-
-
3,062,017
2,754,340
Amounts owed by undertakings in which the company has a participating interest
67,759
-
-
-
Other debtors
5,945,348
5,044,616
2,562,894
2,562,894
Prepayments and accrued income
861,620
1,685,641
3,416
3,738
15,061,052
20,554,852
5,699,507
5,391,160
Deferred tax asset (note 24)
328,698
-
0
-
0
-
0
15,389,750
20,554,852
5,699,507
5,391,160
20
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
22
8,044,197
8,006,920
-
0
-
0
Obligations under finance leases
23
7,252
16,349
7,252
7,252
Other borrowings
22
1,110,052
1,277,534
-
0
-
0
Trade creditors
6,531,324
9,126,841
26,821
-
0
Amounts owed to group undertakings
-
0
-
0
937,904
1,290,608
Corporation tax payable
88,778
-
0
-
0
-
0
Other taxation and social security
265,731
384,508
16,930
38,552
Other creditors
3,736,574
3,854,426
2,794,984
2,443,910
Accruals and deferred income
6,549,204
9,600,450
53,737
258,572
26,333,112
32,267,028
3,837,628
4,038,894
21
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
22
2,233,332
5,833,333
-
0
-
0
Obligations under finance leases
23
26,958
34,117
26,958
34,117
2,260,290
5,867,450
26,958
34,117
DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 38 -
22
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
4,405,213
9,196,061
-
0
-
0
Bank overdrafts
5,872,316
4,644,192
-
0
-
0
Other loans
1,110,052
1,277,534
-
0
-
0
11,387,581
15,117,787
-
-
Payable within one year
9,154,249
9,284,454
-
0
-
0
Payable after one year
2,233,332
5,833,333
-
0
-
0

Bank Security

The company is party to a multilateral agreement with its bankers for guarantees provided in respect of the bank borrowings of Ardblair Sports Importers Limited, Dameck Holdings Limited, GL Dameck Limited, Diamond Sports Retail Limited, Swallowtail Lifestyle Limited and ASI Brands Limited.

 

HSBC Bank PLC holds a floating charge over all the assets of the companies within the facility in respect of loans and a security over trade debtors in respect of the invoice finance facility.

Bank loans

Included within bank loans is a RLS loan with a balance of £3,633,332 (2023: £7,000,000) at the year end. This loan is repayable in monthly instalments of £116,667 over 5 years following a 12 month capital payment holiday and interest is being charged a 4.25% over the Bank of England base rate.

 

The group has a Trade Import line facility with HSBC Bank PLC for a total value of of £6,000,000 (2023: £6,000,000) to assist the company with its overseas purchases. Interest is charged at 2.95% above the Bank of England base rate. The facility balance at 31 January 2024 was £771,881 (2023: £2,196,061) and is included in bank loans above.

 

Other loans

Other loans represent the invoice finance facility in place with HSBC. The group has a facility of £7,500,000 (2023: £7,500,000) of which £1,110,052 (2023: £1,277,534) was drawn down at the year end. The facility carries an interest charge of 2.45% above the Bank of England base rate and the facility is secured over trade debtors.

 

Bank overdrafts

Bank overdrafts represent the overdraft facility in place with HSBC. The company is part of a group which have a net nil overdraft facility in place with HSBC. The group was utilising £5,872,316 (2023: £4,644,192) of the facility at the year end.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 39 -
23
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
8,770
17,867
8,770
8,770
In two to five years
32,581
41,258
32,581
41,258
41,351
59,125
41,351
50,028
Less: future finance charges
(7,141)
(8,659)
(7,141)
(8,659)
34,210
50,466
34,210
41,369

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 four years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

24
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Assets
Assets
2024
2023
Group
£
£
Accelerated capital allowances
2,920
-
Tax losses
325,778
-
328,698
-
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 February 2023
-
-
Credit to profit or loss
(328,698)
-
Asset at 31 January 2024
(328,698)
-

Deferred tax is not recognised in respect of tax losses of £4,250,816 and a deferred tax asset of £1,060,704 has not been recognised on these losses as it is not probable that they will be recovered against the reversal of deferred tax liabilities or future taxable profits in the near future..

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 40 -
25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
89,099
102,859

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.

26
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
27
Financial commitments, guarantees and contingent liabilities

At the reporting end date there were letters of credit outstanding to the value of £750,777 (2023 - £762,216).

 

The group sponsor a number of football teams over the season. Through the sponsorship agreement, there are performance bonuses which are payable on meeting certain conditions by the end of the football season in June. The quantum of the bonus is dependent on the individual agreement, relevant league level and the performance of the club over the season. No provision is included in these financial statements in relation to these agreements as these conditions have not been met.

 

The group is currently involved in a dispute with HMRC over previous import duties paid by the group. The group are of the opinion that these import duties amounting to £234,797, of which £127,154 has been paid to date, were not actually due as the payments were in relation to buying commission which would not attract import duty. The group are liaising with professional advisors and they are in the process of appealing the decision, which was initially upheld by HMRC, with the case now due to be heard at First Tier Tribunal.

28
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
431,536
432,952
-
-
Between two and five years
739,836
932,333
-
-
1,171,372
1,365,285
-
-
29
Related party transactions
Transactions with related parties
DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
29
Related party transactions
(Continued)
- 41 -

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Key management personnel
2,794,986
2,443,910
Other related parties
12,057
608,955
Company
Key management personnel
2,794,986
2,443,910

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
2,742,175
2,913,268
Company
Other related parties
2,562,894
2,562,894
Other information

The directors are of the opinion that all other related party transactions are conducted under normal market conditions and on an arm's length basis.

DAMECK HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 42 -
30
Cash generated from group operations
2024
2023
£
£
Profit/(loss) for the year after tax
658,593
(169,970)
Adjustments for:
Share of results of associates and joint ventures
(1,565,583)
-
Taxation credited
(237,785)
(47,643)
Finance costs
1,156,711
857,096
Investment income
(342)
(1,330)
(Gain)/loss on disposal of tangible fixed assets
(6,194)
7,352
(Gain)/loss on disposal of intangible assets
-
162
Amortisation and impairment of intangible assets
410,048
416,368
Depreciation and impairment of tangible fixed assets
103,251
219,263
Movements in working capital:
Decrease/(increase) in stocks
2,426,808
(927,819)
Decrease/(increase) in debtors
5,463,541
(2,146,827)
(Decrease)/increase in creditors
(5,355,388)
3,726,313
Cash generated from operations
3,053,660
1,932,965
31
Analysis of changes in net debt - group
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
8,565,840
(887,001)
7,678,839
Bank overdrafts
(4,644,192)
(1,228,124)
(5,872,316)
3,921,648
(2,115,125)
1,806,523
Borrowings excluding overdrafts
(10,473,595)
4,958,330
(5,515,265)
Obligations under finance leases
(50,466)
16,256
(34,210)
(6,602,413)
2,859,461
(3,742,952)
2024-01-312023-02-01falseCCH SoftwareCCH Accounts Production 2024.200Mr C W ScottMr E C ScottMrs C O ScottMrs K M RyanMr D C RyanMr M A F ScottMrs A ScottMr A ScottMrs D W 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