Company registration number 05840865 (England and Wales)
DRISHAUN HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
DRISHAUN HOLDINGS LIMITED
COMPANY INFORMATION
Director
Mr M Lancashire
Secretary
Mrs A Lancashire
Company number
05840865
Registered office
199 - 201 Newhall Road
Sheffield
S9 2QJ
Auditor
BHP LLP
2 Rutland Park
Sheffield
S10 2PD
DRISHAUN HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 33
DRISHAUN HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Review of the business

Drishaun Holdings Limited provides a range of products to global market sectors including oil & gas, industrial, construction, utilities and global capital expenditure projects.

 

2023 has been another much-improved year for the Group. Turnover increased by £3.4m from £12.7m in 2022 to £16.1m in 2023 (increase of 26.7%).

 

Gross margins increased further from 41.4% to 44.5%, whilst distribution costs/administrative expenses also increased, by 24.9% across the group. Group turnover has been relatively static into the UK and European markets, with virtually all the growth generated in the Rest of the World.

 

Group performance has long been influenced by the global price of crude oil. As reported before, the price dipped to a low of $21 per barrel in April 2020 but has since increased, finishing 2023 at around $78. However, since the year end the price has risen to a high to date in 2024 of around $87 per barrel. Final Investment Decisions (FIDs) for new projects was severely curtailed for many years, however, with the current price level remaining relatively stable around $80 this has resulted in significantly increased market confidence. This confidence has had a marked impact on the trading performance of the UK and US subsidiaries, but has now extended to the SE Asia subsidiary.

 

Improvement in the stability of the global oil price bears well for the major oil producers to commit to FID in 2024 and beyond. As well as new projects there are now many upgrades necessary to facilitate the improvement of output from existing installations. Newly emerging global markets for Hydrogen production as well as Wind Energy are gaining momentum and offer good opportunities for our products. Growth is anticipated in specific regions which will come from existing products together with local support to ensure success.

 

We remain successful in achieving project wins including non-Oil & Gas and public infrastructure projects against a difficult backdrop where the long average life cycle of these projects related to our product means these opportunities have remained significantly low since 2014. However, continued improvement of our range of lighting products has resulted in a growing range of certified products for which we continue to complete major installations. We continue to invest significantly in Research & Development into new products and improvement to existing ones, together with the Middle East presence which has produced positive results and we expect this trend to continue through 2024 and 2025.

 

We continue to invest significantly in Research & Development into new products and improvements to existing ones, together with our Middle East presence which has produced positive results and our exhibiting at trade events in this region is expected to bear fruit as that region is heating up very quickly.

DRISHAUN HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The Covid-19 pandemic impacts have reduced and project markets generally remain buoyant therefore 2024 is expected to finish as an even better year. The company will continue to diversify into non oil-related industries to ensure that the company is in a good position to win more business all around the world.

 

The continued ramifications of Brexit is being managed by the group by maintaining a presence in other international markets outside Europe, however supply-chains are still under intense pressure due to the UK leaving the Single Market and Customs Union leading to blockages and some suppliers deciding that doing business with the UK is not economically viable.

 

Financial risk management

 

The group is predominantly exposed to currency risk on sales made in foreign currencies, mainly the Euro and the US Dollar. The group uses bank accounts designated in those currencies and the group currently does not enter any formal hedging arrangements.

 

The effects of credit risk are controlled as the Group has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual customer is subject to a limit, which is regularly reassessed.

 

Future Developments

 

We continue to experience a new level of uncertainty due to conflicts in multiple areas across the world in uncertainty has left no part of the world untouched. The global economic outlook remains unclear, in no small measure due to Brexit realities, but business levels have returned to previous levels more quickly than anticipated. We continue to explore all areas of the business to identify cost savings and further efficiencies which may be implemented to improve the trading position of the company.

 

Key performance indicators

The Group has several different business streams which are monitored by the management teams using appropriate key performance indicators which have remained constant within the Group for many years. The focus on lead generation, sales activity, sales margins, stock profiles and cash management remains our primary goal. Indicators are reviewed and altered to meet changes in the internal and external environments.

 

The Group’s strategy is one of growth with improved profitability. The director monitors progress against this strategy by reference to several KPIs.

 

The increase in group orders and therefore turnover is the primary KPI used to monitor the performance of the Group. As mentioned above, Group turnover has increased by 26.7% year on year which reflects the increased worldwide activity in the markets in which the Group participates.

 

Gross margins have continued to improve, driven by increased prices across the Group, particularly for project based work.

 

Earnings before interest and tax (before exceptional items) expressed as a percentage of turnover (EBITDA) has increased significantly year on year. The level in 2023 of 8.8% is more indicative of where the directors expect the Group to be and is driven by the increase in Gross margins across the Group.

 

The Return on sales ratio of profit after taxation to sales expressed as a percentage has also increased for the same reasons as EBITDA.

 

DRISHAUN HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

On behalf of the board

Mr M Lancashire
Director
19 November 2024
DRISHAUN HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The company is the holding company for its trading subsidiaries, Abtech Limited, AB Controls & Technology Inc, Abtech GmbH, Abtech S E Asia PTE Limited, Abtech Nederland BV and Drishaun Properties Inc. The principal activities of the trading subsidiaries are the manufacture and assembly of electrical enclosures and lighting products.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr M Lancashire
Auditor

The auditor, BHP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

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

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

DRISHAUN HOLDINGS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
On behalf of the board
Mr M Lancashire
Director
19 November 2024
DRISHAUN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DRISHAUN HOLDINGS LIMITED
- 6 -
Opinion

We have audited the financial statements of Drishaun Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 director's 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 director 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 director is 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:

DRISHAUN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DRISHAUN HOLDINGS LIMITED
- 7 -
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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 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.

Daniel Varley (Senior Statutory Auditor)
For and on behalf of BHP LLP
19 November 2024
Chartered Accountants
Statutory Auditor
2 Rutland Park
Sheffield
S10 2PD
DRISHAUN HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
16,141,520
12,738,319
Cost of sales
(8,949,343)
(7,752,787)
Gross profit
7,192,177
4,985,532
Distribution costs
(1,470,880)
(1,288,132)
Administrative expenses
(4,291,207)
(3,325,307)
Other operating income
43,715
44,045
Operating profit
6
1,473,805
416,138
Interest receivable and similar income
7
4,311
4,102
Interest payable and similar expenses
8
(75,057)
(43,200)
Change in fair value of investment properties
(55,819)
-
Profit before taxation
1,347,240
377,040
Tax on profit
9
(402,517)
(151,308)
Profit for the financial year
944,723
225,732
Profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

DRISHAUN HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
Profit for the year
944,723
225,732
Other comprehensive income
Currency translation gain taken to retained earnings
15,937
251,720
Total comprehensive income for the year
960,660
477,452
Total comprehensive income for the year is all attributable to the owners of the parent company.
DRISHAUN HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,316,238
1,396,829
Investment property
13
480,000
497,419
1,796,238
1,894,248
Current assets
Stocks
16
4,000,439
3,687,053
Debtors
17
3,209,556
3,198,689
Cash at bank and in hand
1,333,662
304,018
8,543,657
7,189,760
Creditors: amounts falling due within one year
18
(4,296,956)
(4,031,392)
Net current assets
4,246,701
3,158,368
Total assets less current liabilities
6,042,939
5,052,616
Creditors: amounts falling due after more than one year
19
(14,663)
-
Provisions for liabilities
Deferred tax liability
21
63,000
48,000
(63,000)
(48,000)
Net assets
5,965,276
5,004,616
Capital and reserves
Called up share capital
23
100,000
100,000
Profit and loss reserves
5,865,276
4,904,616
Total equity
5,965,276
5,004,616

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved and signed by the director and authorised for issue on 19 November 2024
19 November 2024
Mr M Lancashire
Director
Company registration number 05840865 (England and Wales)
DRISHAUN HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
703,385
739,817
Investment property
13
480,000
497,419
Investments
14
801,863
801,863
1,985,248
2,039,099
Current assets
Debtors
17
254,842
104,949
Cash at bank and in hand
25,233
15,309
280,075
120,258
Creditors: amounts falling due within one year
18
(1,604,686)
(727,840)
Net current liabilities
(1,324,611)
(607,582)
Total assets less current liabilities
660,637
1,431,517
Provisions for liabilities
Deferred tax liability
21
32,000
48,000
(32,000)
(48,000)
Net assets
628,637
1,383,517
Capital and reserves
Called up share capital
23
100,000
100,000
Profit and loss reserves
528,637
1,283,517
Total equity
628,637
1,383,517

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 £754,880 (2022 - £559,911 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 19 November 2024
19 November 2024
Mr M Lancashire
Director
Company registration number 05840865 (England and Wales)
DRISHAUN HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
100,000
14,778
4,490,386
4,605,164
Year ended 31 December 2022:
Profit for the year
-
-
225,732
225,732
Other comprehensive income:
Currency translation differences
-
-
251,720
251,720
Total comprehensive income
-
-
477,452
477,452
Dividends
10
-
-
(78,000)
(78,000)
Transfers
-
(14,778)
14,778
-
Balance at 31 December 2022
100,000
-
0
4,904,616
5,004,616
Year ended 31 December 2023:
Profit for the year
-
-
944,723
944,723
Other comprehensive income:
Currency translation differences
-
-
15,937
15,937
Total comprehensive income
-
-
960,660
960,660
Balance at 31 December 2023
100,000
-
0
5,865,276
5,965,276
DRISHAUN HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
100,000
14,778
1,906,650
2,021,428
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(559,911)
(559,911)
Dividends
10
-
-
(78,000)
(78,000)
Transfers
-
(14,778)
14,778
-
Balance at 31 December 2022
100,000
-
0
1,283,517
1,383,517
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
(754,880)
(754,880)
Balance at 31 December 2023
100,000
-
0
528,637
628,637
DRISHAUN HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
1,351,414
(98,071)
Interest paid
(75,057)
(43,200)
Income taxes paid
(229,696)
(89,060)
Net cash inflow/(outflow) from operating activities
1,046,661
(230,331)
Investing activities
Purchase of tangible fixed assets
(54,249)
(39,511)
Proceeds from disposal of tangible fixed assets
10,000
-
Purchase of investment property
(20,400)
-
Repayment of loans
-
25,414
Interest received
4,311
4,102
Net cash used in investing activities
(60,338)
(9,995)
Financing activities
Repayment of bank loans
(15,206)
(11,837)
Payment of finance leases obligations
(23,829)
(14,475)
Dividends paid to equity shareholders
-
0
(78,000)
Net cash used in financing activities
(39,035)
(104,312)
Net increase/(decrease) in cash and cash equivalents
947,288
(344,638)
Cash and cash equivalents at beginning of year
304,018
466,294
Effect of foreign exchange rates
46,340
182,362
Cash and cash equivalents at end of year
1,297,646
304,018
Relating to:
Cash at bank and in hand
1,333,662
304,018
Bank overdrafts included in creditors payable within one year
(36,016)
-
DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Drishaun Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 199 - 201 Newhall Road, Sheffield, S9 2QJ.

 

The group consists of Drishaun 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 modified to include the investment properties at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

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.

DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated financial statements incorporate those of Drishaun Holdings Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group and company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 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 buildings
2%-4% straight line
Plant and equipment
10%-33% straight line
Fixtures and fittings
10%-33% straight line
Motor vehicles
25% reducing balance
DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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

1.9
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

Property rented to a group entity is accounted for as tangible fixed assets.

1.10
Fixed asset investments

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

 

In the parent company financial statements, investments in subsidiaries 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.

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.

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.

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.

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.

DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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 and loans from fellow group companies, 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.

Derecognition of financial liabilities

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

1.14
Equity instruments

Share capital issued by the group are recorded at the proceeds received, net of direct issue costs. Dividends payable on share capital are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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.

DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.16
Employee benefits

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

 

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

 

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

1.17
Retirement benefits

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

1.18
Leases

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

 

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

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

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock provision

The directors review stock held at the reporting year end and make estimates over irrecoverable stock by reference to future expected sales and market knowledge. There is an inevitable degree of judgement involved in this process and the methodology takes into account to the global sales market demand and the opportunity to rework stock. The value of group stock at year end is £3,925,239 (2022: £3,687,053).

Investments

Investment properties are valued based on the directors valuation. The key inputs into the valuation were the previous professional valuations performed and assessments of the local property market trends. The directors recognise each property is unique and value can ultimately only be reliably tested in the market itself. The fair value of Investment property at 31st December 2023 is £480,000 (2022: £497,419).

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Manufacture and assembly of electrical products
16,141,520
12,738,319
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
3,900,251
3,950,143
Europe
3,155,787
3,126,386
Rest of world
9,085,482
5,661,790
16,141,520
12,738,319
2023
2022
£
£
Other revenue
Interest income
4,311
4,102
DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
21,000
18,900
Audit of the financial statements of the company's subsidiaries
18,500
17,800
39,500
36,700
For other services
Taxation compliance services
3,400
3,200
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management and administration
44
32
8
5
Production
43
47
-
-
Sales
18
19
-
-
Total
105
98
8
5

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,610,276
3,398,642
282,799
219,615
Social security costs
298,106
253,271
42,565
34,549
Pension costs
125,733
109,644
34,341
14,337
4,034,115
3,761,557
359,705
268,501
DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
6
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
28,519
6,927
Research and development costs
162,710
73,065
Depreciation of owned tangible fixed assets
110,223
107,991
Depreciation of tangible fixed assets held under finance leases
7,308
11,877
Profit on disposal of tangible fixed assets
(2,003)
-
Operating lease charges
244,873
227,209
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
2,182
4,102
Other interest income
2,129
-
Total income
4,311
4,102
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
75,057
41,611
Interest on finance leases and hire purchase contracts
-
1,589
Total finance costs
75,057
43,200
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
109,913
16,552
Adjustments in respect of prior periods
(23,126)
16
Total UK current tax
86,787
16,568
Foreign current tax on profits for the current period
298,730
87,740
Total current tax
385,517
104,308
Deferred tax
Origination and reversal of timing differences
17,000
47,000
Total tax charge
402,517
151,308
DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 24 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,347,240
377,040
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
316,871
71,638
Tax effect of expenses that are not deductible in determining taxable profit
19,294
2,270
Tax effect of income not taxable in determining taxable profit
-
0
(5,672)
Change in unrecognised deferred tax assets
35,662
7,884
Adjustments in respect of prior years
(9,096)
16
Effect of overseas tax rates
35,276
61,689
Effect of changes in deferred tax rates
974
11,812
Fixed asset differences
3,536
1,671
Taxation charge
402,517
151,308
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
-
78,000
11
Intangible fixed assets
Group
Goodwill
Negative goodwill
Total
£
£
£
Cost
At 1 January 2023
68,780
(286,627)
(217,847)
Disposals
(68,780)
286,627
217,847
At 31 December 2023
-
0
-
0
-
0
Amortisation and impairment
At 1 January 2023
68,780
(286,627)
(217,847)
Disposals
(68,780)
286,627
217,847
At 31 December 2023
-
0
-
0
-
0
DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Intangible fixed assets
(Continued)
- 25 -
Carrying amount
At 31 December 2023
-
0
-
0
-
0
At 31 December 2022
-
0
-
0
-
0
Company
Goodwill
£
Cost
At 1 January 2023
(89,011)
Disposals
89,011
At 31 December 2023
-
0
Amortisation and impairment
At 1 January 2023
(89,011)
Disposals
89,011
At 31 December 2023
-
0
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
12
Tangible fixed assets
Group
Freehold buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
1,593,582
723,028
522,882
308,853
3,148,345
Additions
3,411
10,923
39,915
39,091
93,340
Disposals
-
0
-
0
(2,941)
(29,290)
(32,231)
Transfer to investment property
(18,000)
-
0
-
0
-
0
(18,000)
Exchange adjustments
(34,490)
(26,441)
-
0
-
0
(60,931)
At 31 December 2023
1,544,503
707,510
559,856
318,654
3,130,523
Depreciation and impairment
At 1 January 2023
449,020
590,727
474,358
237,411
1,751,516
Depreciation charged in the year
34,770
21,117
39,679
21,965
117,531
Eliminated in respect of disposals
-
0
-
0
(2,941)
(21,293)
(24,234)
Exchange adjustments
(11,974)
(18,554)
-
0
-
0
(30,528)
At 31 December 2023
471,816
593,290
511,096
238,083
1,814,285
Carrying amount
At 31 December 2023
1,072,687
114,220
48,760
80,571
1,316,238
At 31 December 2022
1,144,562
132,301
48,524
71,442
1,396,829
Company
Freehold buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
869,390
88,217
9,476
28,286
995,369
Additions
-
0
870
-
0
-
0
870
Disposals
-
0
-
0
(2,941)
-
0
(2,941)
Transfer to investment property
(18,000)
-
0
-
0
-
0
(18,000)
At 31 December 2023
851,390
89,087
6,535
28,286
975,298
Depreciation and impairment
At 1 January 2023
136,223
85,575
9,476
24,278
255,552
Depreciation charged in the year
17,028
1,272
-
0
1,002
19,302
Eliminated in respect of disposals
-
0
-
0
(2,941)
-
0
(2,941)
At 31 December 2023
153,251
86,847
6,535
25,280
271,913
Carrying amount
At 31 December 2023
698,139
2,240
-
0
3,006
703,385
At 31 December 2022
733,167
2,642
-
0
4,008
739,817
DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Tangible fixed assets
(Continued)
- 27 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
20,322
37,488
-
0
-
0

Freehold land and buildings with a carrying amount of £95,000 (2022 - £95,000) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

13
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023
497,419
497,419
Additions through external acquisition
20,400
20,400
Transfers from owner-occupied property
18,000
18,000
Net gains or losses through fair value adjustments
(55,819)
(55,819)
At 31 December 2023
480,000
480,000

Investment property comprises of two properties. Both properties are measured at fair value. One of the investment properties has been valued at November 2024 by Screetons Chartered Surveyors, who are not connected with the company. The director believes this value is reflective of the fair value at the reporting financial year end. The director has valued the second investment property at the reporting year end. Both valuations were made on an open market value basis by reference and review of market evidence of transaction prices for similar properties.

14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
801,863
801,863
DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
801,863
Carrying amount
At 31 December 2023
801,863
At 31 December 2022
801,863
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
A B Controls & Technology Inc
USA
The manufacture and assembly of electrical enclosures and lighting products
Ordinary
100.00
AB Controls & Technology Ltd
United Kingdom
Dormant
Ordinary
100.00
Abtech GmbH
Germany
The manufacture and assembly of electrical enclosures and lighting products
Ordinary
100.00
Abtech Limited
United Kingdom
The manufacture and assembly of electrical enclosures and lighting products
Ordinary
100.00
Abtech Nederland BV
Netherlands
The manufacture and assembly of electrical enclosures and lighting products
Ordinary
100.00
Abtech SE Asia PTE
Singapore
The manufacture and assembly of electrical enclosures and lighting products
Ordinary
100.00
Allen Bennett Controls Ltd
United Kingdom
Dormant
Ordinary
100.00
Drishaun Properties Inc
USA
Property investment
Ordinary
100.00
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
3,645,459
3,501,474
-
-
Work in progress
354,980
185,579
-
-
4,000,439
3,687,053
-
-
DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,390,342
2,367,554
-
0
-
0
Corporation tax recoverable
-
0
49,789
-
0
-
0
Amounts owed by group undertakings
-
-
253,600
103,707
Other debtors
723,597
655,831
149
149
Prepayments and accrued income
94,766
70,438
1,093
1,093
3,208,705
3,143,612
254,842
104,949
Deferred tax asset (note 21)
851
55,077
-
0
-
0
3,209,556
3,198,689
254,842
104,949
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
61,250
40,440
-
0
-
0
Obligations under finance leases
20
9,717
9,118
-
0
-
0
Trade creditors
2,260,524
2,170,455
4,824
240
Amounts owed to group undertakings
-
0
-
0
1,487,980
587,572
Corporation tax payable
86,684
32,878
12,380
24,420
Other taxation and social security
189,112
323,566
23,850
50,726
Other creditors
951,859
1,115,200
36,987
26,217
Accruals and deferred income
737,810
339,735
38,665
38,665
4,296,956
4,031,392
1,604,686
727,840

Obligations under finance leases are secured on the assets to which they relate.

 

Included in other creditors due within one year is an amount of £524,221 (2022: £856,706) in respect of invoice discounting liabilities which are secured on the assets of the company.

19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
20
14,663
-
0
-
0
-
0

Obligations under finance leases are secured on the assets to which they relate.

DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
9,717
9,118
-
0
-
0
In two to five years
14,663
-
0
-
0
-
0
24,380
9,118
-
-

 

21
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Group
£
£
£
£
Accelerated capital allowances
81,000
48,000
851
55,077
Revaluations
(18,000)
-
-
-
63,000
48,000
851
55,077
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Company
£
£
£
£
Accelerated capital allowances
50,000
48,000
-
-
Revaluations
(18,000)
-
-
-
32,000
48,000
-
-
Group
Company
2023
2023
Movements in the year:
£
£
Liability/(Asset) at 1 January 2023
(7,077)
48,000
Charge/(credit) to profit or loss
69,226
(16,000)
Liability at 31 December 2023
62,149
32,000

 

DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
125,733
109,644

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.

Contributions totalling £13,709 (2022: £16,491) were payable to the funds at 31 December 2023 and are included in creditors.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Class A Ordinary of £1 each
50,000
50,000
50,000
50,000
Class B Ordinary of £1 each
50,000
50,000
50,000
50,000
100,000
100,000
100,000
100,000

On 6th April 2022, there was a redesignation of shares. 50,000 Ordinary Shares of £1.00 each were redesignated to 50,000 A Ordinary shares of £1.00 each and 50,000 Ordinary Shares of £1.00 each were redesignated to 50,000 B Ordinary shares of £1.00 each.

 

The A Ordinary and B Ordinary shares have each had their rights varied so that a dividend may be declared on each class of shares independently of any dividend declared on any other class of shares.

24
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
448,457
247,191
10,227
10,798
Between two and five years
907,488
565,689
1,843
4,698
1,355,945
812,880
12,070
15,496
DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
25
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
12,000
-
12,000
-
26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
312,614
258,923
Other information

The company has taken advantage of the exemption allowed under FRS 102.33.1A not to disclose transactions with group undertakings.

 

During the year the company entered into the following transactions in which the director had an interest:


During the year the group paid £40,348 (2022: £27,674) to the director's pension scheme in respect of property rent.

 

During the year ended 31 December 2023, the Group had sales totalling £211,563 (2022: £454,909) and purchases totalling £237,523 (2022: £302,681) with Tudor Treadmills Limited, a company held under common ownership.

 

The Group received management charge income of £60,000 (2022: £67,000) and recharged costs of £133,080 (2022: £134,280) to Tudor Treadmills Limited. At the reporting date included in debtors was an amount due to Abtech Limited of £30,000 (2022: £40,354) and a creditor balance owed to Tudor Treadmills Limited of £2,263 (2022: £1,725).

 

The Group recharged costs of £62,353 (2022: £112,406) to Tudor Treadmills Inc, a company held under common ownership. At the reporting date, the amount due to the Group was £324,348 (2022: £274,770).

27
Controlling party

The ultimate controlling parties are Mr M and Mrs A Lancashire.

DRISHAUN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
28
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
944,723
225,732
Adjustments for:
Taxation charged
402,517
151,308
Finance costs
75,057
43,200
Investment income
(4,311)
(4,102)
Gain on disposal of tangible fixed assets
(2,003)
-
Fair value loss on investment properties
55,819
-
0
Depreciation and impairment of tangible fixed assets
117,531
119,868
Movements in working capital:
Increase in stocks
(313,386)
(476,907)
Increase in debtors
(114,882)
(965,501)
Increase in creditors
190,349
808,331
Cash generated from/(absorbed by) operations
1,351,414
(98,071)
29
Analysis of changes in net funds - group
1 January 2023
Cash flows
New finance leases
Exchange rate movements
31 December 2023
£
£
£
£
£
Cash at bank and in hand
304,018
983,304
-
46,340
1,333,662
Bank overdrafts
-
0
(36,016)
-
-
(36,016)
304,018
947,288
-
46,340
1,297,646
Borrowings excluding overdrafts
(40,440)
15,206
-
-
(25,234)
Obligations under finance leases
(9,118)
23,829
(39,091)
-
(24,380)
254,460
986,323
(39,091)
46,340
1,248,032
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