REGISTERED NUMBER: 11676242 (England and Wales) |
Group Strategic Report, |
Report of the Director and |
Consolidated Financial Statements |
for the Year Ended 29 February 2024 |
for |
Dynamic Office Group Limited |
REGISTERED NUMBER: 11676242 (England and Wales) |
Group Strategic Report, |
Report of the Director and |
Consolidated Financial Statements |
for the Year Ended 29 February 2024 |
for |
Dynamic Office Group Limited |
Dynamic Office Group Limited (Registered number: 11676242) |
Contents of the Consolidated Financial Statements |
for the year ended 29 February 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 4 |
Report of the Director | 5 |
Report of the Independent Auditors | 6 | to | 9 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 | to | 29 |
Dynamic Office Group Limited |
Company Information |
for the year ended 29 February 2024 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & |
Statutory Auditors |
Pacioli House |
9 Brookfield |
Duncan Close |
Northampton |
Northamptonshire |
NN3 6WL |
Dynamic Office Group Limited (Registered number: 11676242) |
Group Strategic Report |
for the year ended 29 February 2024 |
The director presents his strategic report of the company and the group for the year ended 29 February 2024. |
INTRODUCTION |
The Directors present their strategic report and the financial statements for the Group for the 12 months ended 28th February 2023 |
REVIEW OF THE BUSINESS |
The principal activity of Dynamic Office Group Limited 'the Group' during the period was wholesaler of office furniture and seating, with an expanding and reasonable contribution from third party logistics. Other than the introduction of third part logistics, there has been no change to the principal activity of the Group during the year and the director does not expect a change in the foreseeable future. |
The company achieved a strategically planned expansion in the period of account resulting in an increase in top line sales as follows: |
2024 | 2023 | % changes |
£m | £m |
12 months to February | 17.91 | 17.05 | 5.03% |
17.91 | 17.05 |
This was achieved by a combination of strategic sales actions, product development and service improvements and the introduction of third party logistic services from surplus warehousing space. |
The Group continued to grow to secure new clients and further solidify existing relationships. Simultaneously, the business has comprehensively reviewed and modified fixed costs and overheads to maximise operating efficiencies. |
The Customer Experience Centre has allowed continued product exposure to our clients. A highly accomplished outbound sales resource allows for demonstrations and product training which further improves the Dynamic reach in the market. |
Continuous investments in IT systems have created greater customer service efficiencies and made the Dynamic brand more powerful amongst other online resellers. |
These and other actions mean the company's revenue growth strategy is structured to be achieved without associated proportional increases in overheads. Further strategies are scheduled to develop the business through delivery on a five - year plan. |
Pricing |
Further improvement to the customer pricing model has delivered greater control to the Dynamic margin management programme. |
The Group continues to purchase most of its goods for resale in US Dollars. In the accounting period the exchange rate losses were protected via forward contracts to limit losses. |
With exchange rate monitoring, managed sales growth, efficiencies and multiple point sourcing the Directors' are delighted to report a profit after tax of £2.70m. |
Market Positioning |
Market analysis places Dynamic as the third largest supplier in the UK of wholesale office seating and furniture. |
The Group continues to operate in an extremely competitive market. Dynamic strives to build strong relationships with its customers and potential customers and sees the achievement of long-term repeat business as a measure of its success in this strategy. |
Dynamic Office Group Limited (Registered number: 11676242) |
Group Strategic Report |
for the year ended 29 February 2024 |
The Group's competitive advantage derives from service excellence, wide choice, express delivery, price competitiveness and uniqueness of products. The Group recognises that one of its biggest asset are its employees, who all share the strong commitment to delivering excellence to customers. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Director has developed strategies to achieve planned profitable growth into the foreseeable future. The Group continually contributes to product innovation and introduces new products to meet the exacting and changing needs of its market-place. It has invested in highly experience industry experts to further ensure they are ahead of trends in the market. |
The Directors continually review the risks facing the business. Where it is considered cost effective, risks to the Company and its business are protected by insurance. External factors, over which the Company has little control, include the effect of government legislation and the buoyancy of economic activity within the United Kingdom. The company tries to position itself so that it can take advantage of external factors where possible, with a versatile product range that allows the business to adapt to ever changing sales trends. |
Cash Flow Risk |
The Director manages the Group's working capital requirements predominantly within its own resources. Cashflow is monitored on an ongoing basis to ensure obligations are met. The liquidity risk mainly arises from creditors which arise in the normal course of business. Neither risk is significant to the business. |
Customer Risk |
To mitigate the potential consequences of the Group being unable to recover sums due to it from its customers, it carries out full status checks on prospective clients prior to the commencement of any contract it undertakes with them and continues to review the credit status of existing clients on a regular basis. Credit insurance is put in place for individual customers, as necessary. |
Foreign Exchange Risk |
The Group's sales are predominately in Sterling. Costs of goods for resale are principally in the US Dollar. There is a currency risk in respect of the exchange rate between Sterling and the US Dollar which is monitored daily and where appropriate use is made of currency forward contracts and other instruments. |
The Director is satisfied that the Group has taken all measures necessary to minimise the risks facing the business and is well positioned to take advantage of future organic and inorganic growth opportunities and the significant changes taking place in its marketplace. |
FUTURE DEVELOPMENT |
Going forward the Director does not envisage any changes in the principle activity of the company. The business is making significant investment to the upholstery functionality in 2024 in both machinery and personnel to assist in the growth of our bespoke upholstery options. |
Having considered the impact of inflation on the operation of the Group's business, it is anticipated that there will be some short term risk to inventory pricing, however, the business is confident that the pricing strategy in place that covered both the pandemic and escalated container shipping costs that we will not require aggressive pricing adjustments. |
Management are please to have been awarded, post year end, with ISO9001 - 2015 certification in quality management. The impact of the Group's operations on the environment alongside the company's sustainability and ethical polices remain important, the stated aim to be net zero by 2040. |
Dynamic Office Group Limited (Registered number: 11676242) |
Group Strategic Report |
for the year ended 29 February 2024 |
KEY PERFORMANCE INDICATORS |
The Directors' use both financial and non-financial key performance indicators to monitor the business. The ongoing performance of the business is achieved through many measures including: |
- review of regular management accounts information and variance analysis |
- review of cost of goods sold % |
- review of gross profit % |
- review of wages to salary ratio % |
- review of the feedback from customers' and how well their expectations are being met. |
- staff satisfaction is measured via annual staff survey |
- health and safety compliance |
ON BEHALF OF THE BOARD: |
Dynamic Office Group Limited (Registered number: 11676242) |
Report of the Director |
for the year ended 29 February 2024 |
The director presents his report with the financial statements of the company and the group for the year ended 29 February 2024. |
DIVIDENDS |
An interim dividend of £1,666.67 per share was paid on 12 May 2023. The director recommends that no final dividend be paid. |
The total distribution of dividends for the year ended 29 February 2024 will be £ 300,000 . |
DIRECTOR |
DISCLOSURE IN THE STRATEGIC REPORT |
Principal activity, disclosures relating to events occurring after the year end, likely future developments, research and development activities, financial risk management objectives, policies and the exposure to cashflow, customer and foreign exchange risks are all disclosed within the strategic report (as defined by section 414 C (11) of the Companies Act 2006). |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director 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 company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Clifford Roberts, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Dynamic Office Group Limited |
Opinion |
We have audited the financial statements of Dynamic Office Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 February 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 29 February 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Dynamic Office Group Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page five, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Dynamic Office Group Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- | We obtained an understanding of the legal and regulatory framework applicable to the group and the sector in which they operate. We determined that the following laws and regulations were most significant: the Companies Act 2006, UK Generally Accepted Accounting Practice and UK corporate taxation laws. |
- | We obtained an understanding of how the group is complying with those legal and regulatory frameworks by making inquiries to the management and by observing the oversight of management, the culture of honesty and ethical behaviour and whether strong emphasis is placed on fraud prevention, which may reduce the opportunities for fraud to take place, and fraud deterrence, which could persuade individuals not to commit fraud in the first instance . We corroborated our inquiries through our review of all relevant available audit information. |
- | We assessed and understood the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. The audit procedures performed by the engagement team included: |
> | Identifying and assessing the design and effectiveness of controls management has in place to prevent and detect fraud; |
> | Understanding of how senior management considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; |
> | Challenging assumptions and judgements made by management in its significant accounting estimates; |
> | Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and, |
> | Assessing the extent of compliance with relevant laws and regulations. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Dynamic Office Group Limited |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants & |
Statutory Auditors |
Pacioli House |
9 Brookfield |
Duncan Close |
Northampton |
Northamptonshire |
NN3 6WL |
Dynamic Office Group Limited (Registered number: 11676242) |
Consolidated |
Income Statement |
for the year ended 29 February 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 17,911,897 | 17,054,117 |
Cost of sales | 9,342,245 | 8,665,322 |
GROSS PROFIT | 8,569,652 | 8,388,795 |
Distribution costs | 2,171,299 | 3,832,746 |
Administrative expenses | 2,732,253 | 2,522,289 |
4,903,552 | 6,355,035 |
3,666,100 | 2,033,760 |
Other operating income | 2,388 | - |
OPERATING PROFIT | 5 | 3,668,488 | 2,033,760 |
Interest receivable and similar income | 500 | 33 |
3,668,988 | 2,033,793 |
Interest payable and similar expenses | 6 | 107,511 | 126,036 |
PROFIT BEFORE TAXATION | 3,561,477 | 1,907,757 |
Tax on profit | 7 | 864,541 | 381,097 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 2,203,407 | 1,251,858 |
Non-controlling interests | 493,529 | 274,802 |
2,696,936 | 1,526,660 |
Dynamic Office Group Limited (Registered number: 11676242) |
Consolidated |
Other Comprehensive Income |
for the year ended 29 February 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 2,696,936 | 1,526,660 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,696,936 |
1,526,660 |
Total comprehensive income attributable to: |
Owners of the parent | 2,203,407 | 1,251,859 |
Non-controlling interests | 493,529 | 274,801 |
2,696,936 | 1,526,660 |
Dynamic Office Group Limited (Registered number: 11676242) |
Consolidated Balance Sheet |
29 February 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | (55,740 | ) | (76,385 | ) |
Tangible assets | 11 | 265,406 | 365,179 |
Investments | 12 | - | - |
209,666 | 288,794 |
CURRENT ASSETS |
Stocks | 13 | 3,568,678 | 3,898,274 |
Debtors | 14 | 3,757,085 | 3,714,214 |
Cash at bank and in hand | 414,884 | 407,746 |
7,740,647 | 8,020,234 |
CREDITORS |
Amounts falling due within one year | 15 | 3,123,341 | 5,773,341 |
NET CURRENT ASSETS | 4,617,306 | 2,246,893 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,826,972 |
2,535,687 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(99,183 |
) |
(170,821 |
) |
PROVISIONS FOR LIABILITIES | 20 | (52,665 | ) | (86,678 | ) |
NET ASSETS | 4,675,124 | 2,278,188 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 180 | 180 |
Retained earnings | 22 | 3,678,727 | 1,775,320 |
SHAREHOLDERS' FUNDS | 3,678,907 | 1,775,500 |
NON-CONTROLLING INTERESTS | 996,217 | 502,688 |
TOTAL EQUITY | 4,675,124 | 2,278,188 |
The financial statements were approved by the director and authorised for issue on 9 September 2024 and were signed by: |
C Verlander - Director |
Dynamic Office Group Limited (Registered number: 11676242) |
Company Balance Sheet |
29 February 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 241,118 | 174,477 |
The financial statements were approved by the director and authorised for issue on |
Dynamic Office Group Limited (Registered number: 11676242) |
Consolidated Statement of Changes in Equity |
for the year ended 29 February 2024 |
Called up |
share | Retained | Non-controlling | Total |
capital | earnings | Total | interests | equity |
£ | £ | £ | £ | £ |
Balance at 1 March 2022 | 180 | 523,462 | 523,642 | 227,887 | 751,529 |
Changes in equity |
Total comprehensive income | - | 1,251,858 | 1,251,858 | 274,801 | 1,526,659 |
Balance at 28 February 2023 | 180 | 1,775,320 | 1,775,500 | 502,688 | 2,278,188 |
Changes in equity |
Dividends | - | (300,000 | ) | (300,000 | ) | - | (300,000 | ) |
Total comprehensive income | - | 2,203,407 | 2,203,407 | 493,529 | 2,696,936 |
Balance at 29 February 2024 | 180 | 3,678,727 | 3,678,907 | 996,217 | 4,675,124 |
Dynamic Office Group Limited (Registered number: 11676242) |
Company Statement of Changes in Equity |
for the year ended 29 February 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 March 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 28 February 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 29 February 2024 |
Dynamic Office Group Limited (Registered number: 11676242) |
Consolidated Cash Flow Statement |
for the year ended 29 February 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,229,161 | 559,090 |
Interest paid | (91,554 | ) | (110,023 | ) |
Interest element of hire purchase payments paid |
(15,957 |
) |
(16,013 |
) |
Tax paid | (656,485 | ) | (33,966 | ) |
Net cash from operating activities | 465,165 | 399,088 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (7,419 | ) | (15,718 | ) |
Purchase of tangible fixed assets | (45,276 | ) | (37,721 | ) |
Sale of tangible fixed assets | 11,201 | 14,566 |
Interest received | 500 | 33 |
Net cash from investing activities | (40,994 | ) | (38,840 | ) |
Cash flows from financing activities |
Loan repayments in year | - | (40,000 | ) |
New HP loan in year | - | 22,862 |
Capital repayments in year | (117,033 | ) | (122,828 | ) |
Amount introduced by directors | - | 91,645 |
Amount withdrawn by directors | - | (91,545 | ) |
Equity dividends paid | (300,000 | ) | - |
Net cash from financing activities | (417,033 | ) | (139,866 | ) |
Increase in cash and cash equivalents | 7,138 | 220,382 |
Cash and cash equivalents at beginning of year |
2 |
407,746 |
187,364 |
Cash and cash equivalents at end of year |
2 |
414,884 |
407,746 |
Dynamic Office Group Limited (Registered number: 11676242) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 29 February 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 3,561,477 | 1,907,757 |
Depreciation charges | 131,821 | 133,456 |
Profit on disposal of fixed assets | (11,200 | ) | (4,933 | ) |
Finance costs | 107,511 | 126,036 |
Finance income | (500 | ) | (33 | ) |
3,789,109 | 2,162,283 |
Decrease/(increase) in stocks | 329,596 | (82,631 | ) |
Increase in trade and other debtors | (42,871 | ) | (546,061 | ) |
Decrease in trade and other creditors | (2,846,673 | ) | (974,501 | ) |
Cash generated from operations | 1,229,161 | 559,090 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 29 February 2024 |
29.2.24 | 1.3.23 |
£ | £ |
Cash and cash equivalents | 414,884 | 407,746 |
Year ended 28 February 2023 |
28.2.23 | 1.3.22 |
£ | £ |
Cash and cash equivalents | 407,746 | 187,364 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.3.23 | Cash flow | At 29.2.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 407,746 | 7,138 | 414,884 |
407,746 | 7,138 | 414,884 |
Debt |
Finance leases | (231,810 | ) | 117,033 | (114,777 | ) |
(231,810 | ) | 117,033 | (114,777 | ) |
Total | 175,936 | 124,171 | 300,107 |
Dynamic Office Group Limited (Registered number: 11676242) |
Notes to the Consolidated Financial Statements |
for the year ended 29 February 2024 |
1. | STATUTORY INFORMATION |
Dynamic Office Group Limited is a private company, limited by shares, incorporated and domiciled in England and has its registered office and principle place of business at Unit 5, Lodge Way, Lodge Farm Industrial Estate, Northampton, NN5 7RA. The company's registered number and registered office address can be found on the company information page. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and with the Companies Act 2006. The financial statements have been prepared on the historical cost basis. |
The financial statements are presented in Sterling (£) and cover the period to the last day of February each year. |
Going Concern |
At the time of approving the financial statements, the director has a reasonable expectation that the group 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 after taking into account the potential impact of current global issues on the group. |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to the last day of February each year. The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group. All intra-group transactions, balances, income and expenses are eliminated on consolidation. |
Significant judgements and estimates |
In the application of the group's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. |
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below. |
(a) Determining net realisable values of stock |
In determining the net realisable value of stocks, management takes into account the most reliable evidence available at the dates the estimates are made. Stock is initially recognised at cost and reviewed for potential provision. A provision has been applied to stock which is considered to be slow moving or obsolete, based upon the sales data in the past 12 months.. |
(b) Goodwill and other intangible assets |
Intangible assets are reviewed annually for impairment. Management determines the recoverable amount using all management information available, inclusive of information post the balance sheet date. Where the economic life is considered to be impaired the intangible asset is provided for accordingly. |
Dynamic Office Group Limited (Registered number: 11676242) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 29 February 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sale of Goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: the group has transferred the significant risks and rewards of ownership to the buyer; the group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; the amount of revenue can be measured reliably; it is probable that the group will receive the consideration due under the transaction; and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Steel containers | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Routemaster bus | - |
Stocks |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis plus an element of shipping cost where applicable. |
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss |
Dynamic Office Group Limited (Registered number: 11676242) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 29 February 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans and balances to and from related parties. |
Debt instruments (other than those wholly repayable or receivable in one year), including loans and other accounts receivable and payable, are initially measured at the present value of future cash flows and subsequently at amortised cost using the effective interest rate method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective impairment is found, an impairment loss is recognised in the income statement. |
Derivatives, including futures, are not considered basic financial instruments. Derivatives are initially recognised at fair value on the date the 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 and loss in finance costs or income as appropriate. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Dynamic Office Group Limited (Registered number: 11676242) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 29 February 2024 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Interest bearing borrowings |
Interest bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Wholesale of office furniture | 17,489,552 | 16,424,367 |
Third party logistics | 422,345 | 629,750 |
17,911,897 | 17,054,117 |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 16,959,049 | 16,270,433 |
Europe | 952,848 | 783,684 |
17,911,897 | 17,054,117 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 1,745,206 | 1,674,569 |
Social security costs | 154,798 | 144,327 |
Other pension costs | 57,664 | 53,024 |
1,957,668 | 1,871,920 |
Dynamic Office Group Limited (Registered number: 11676242) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 29 February 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Office, administration & warehouse |
2024 | 2023 |
£ | £ |
Director's remuneration | 106,563 | 104,860 |
Director's pension contributions to money purchase schemes | 4,120 | 4,110 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 86,298 | 78,707 |
Other operating leases | 1,244,653 | 1,012,006 |
Depreciation - owned assets | 119,827 | 52,237 |
Depreciation - assets on hire purchase contracts | 25,220 | 95,951 |
Profit on disposal of fixed assets | (11,200 | ) | (4,933 | ) |
Goodwill amortisation | (20,675 | ) | (20,675 | ) |
Computer software amortisation | 7,449 | 5,943 |
Auditors' remuneration- parent | 4,650 | 5,000 |
Auditors' remuneration- subs | 6,500 | 6,500 |
Foreign exchange differences | 14,638 | 109,046 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | 91,554 | 110,023 |
Hire purchase | 15,957 | 16,013 |
107,511 | 126,036 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 898,553 | 382,258 |
Deferred tax | (34,012 | ) | (1,161 | ) |
Tax on profit | 864,541 | 381,097 |
Dynamic Office Group Limited (Registered number: 11676242) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 29 February 2024 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 3,561,477 | 1,907,757 |
Profit multiplied by the standard rate of corporation tax in the UK of 24.492 % (2023 - 19 %) |
872,277 |
362,474 |
Effects of: |
Expenses not deductible for tax purposes | - | 2,067 |
Income not taxable for tax purposes | (2,750 | ) | (1,108 | ) |
Depreciation in excess of capital allowances | 29,026 | 18,825 |
Deferred tax adjustment timing | (34,012 | ) | 27,738 |
Deferred tax adjustment change in rate | - | (28,899 | ) |
Total tax charge | 864,541 | 381,097 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim | 300,000 | - |
10. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 March 2023 | (206,749 | ) | 73,868 | (132,881 | ) |
Additions | - | 7,419 | 7,419 |
At 29 February 2024 | (206,749 | ) | 81,287 | (125,462 | ) |
AMORTISATION |
At 1 March 2023 | (87,868 | ) | 31,372 | (56,496 | ) |
Amortisation for year | (20,675 | ) | 7,449 | (13,226 | ) |
At 29 February 2024 | (108,543 | ) | 38,821 | (69,722 | ) |
NET BOOK VALUE |
At 29 February 2024 | (98,206 | ) | 42,466 | (55,740 | ) |
At 28 February 2023 | (118,881 | ) | 42,496 | (76,385 | ) |
Dynamic Office Group Limited (Registered number: 11676242) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 29 February 2024 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Steel | Plant and | and |
containers | machinery | fittings |
£ | £ | £ |
COST |
At 1 March 2023 | 170,100 | 457,747 | 238,177 |
Additions | - | 39,525 | 5,750 |
Disposals | (45,301 | ) | - | - |
At 29 February 2024 | 124,799 | 497,272 | 243,927 |
DEPRECIATION |
At 1 March 2023 | 159,016 | 260,749 | 174,197 |
Charge for year | 8,067 | 91,874 | 33,231 |
Eliminated on disposal | (45,300 | ) | - | - |
At 29 February 2024 | 121,783 | 352,623 | 207,428 |
NET BOOK VALUE |
At 29 February 2024 | 3,016 | 144,649 | 36,499 |
At 28 February 2023 | 11,084 | 196,998 | 63,980 |
Motor | Routemaster |
vehicles | bus | Totals |
£ | £ | £ |
COST |
At 1 March 2023 | 127,355 | 56,439 | 1,049,818 |
Additions | - | - | 45,275 |
Disposals | - | - | (45,301 | ) |
At 29 February 2024 | 127,355 | 56,439 | 1,049,792 |
DEPRECIATION |
At 1 March 2023 | 34,238 | 56,439 | 684,639 |
Charge for year | 11,875 | - | 145,047 |
Eliminated on disposal | - | - | (45,300 | ) |
At 29 February 2024 | 46,113 | 56,439 | 784,386 |
NET BOOK VALUE |
At 29 February 2024 | 81,242 | - | 265,406 |
At 28 February 2023 | 93,117 | - | 365,179 |
Dynamic Office Group Limited (Registered number: 11676242) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 29 February 2024 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Steel | Plant and | Motor |
containers | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 March 2023 | 32,272 | 319,535 | 111,918 | 463,725 |
Transfer to ownership | (32,272 | ) | (262,145 | ) | - | (294,417 | ) |
At 29 February 2024 | - | 57,390 | 111,918 | 169,308 |
DEPRECIATION |
At 1 March 2023 | 21,187 | 147,005 | 18,801 | 186,993 |
Charge for year | - | 13,345 | 11,875 | 25,220 |
Transfer to ownership | (21,187 | ) | (136,534 | ) | - | (157,721 | ) |
At 29 February 2024 | - | 23,816 | 30,676 | 54,492 |
NET BOOK VALUE |
At 29 February 2024 | - | 33,574 | 81,242 | 114,816 |
At 28 February 2023 | 11,085 | 172,530 | 93,117 | 276,732 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 March 2023 |
and 29 February 2024 |
NET BOOK VALUE |
At 29 February 2024 |
At 28 February 2023 |
Dynamic Office Group Limited (Registered number: 11676242) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 29 February 2024 |
12. | FIXED ASSET INVESTMENTS - continued |
Holdings of more than 20% |
The company holds more than 20% of the share capital of the following companies: |
Subsidiary undertaking |
Country of registration or incorporation |
Shares held class |
% |
Dynamic Office Seating Limited | England | Ordinary | 80% |
The aggregate amount of capital and reserves and the results of these undertakings for the last relevant financial period were as follows: |
Subsidiary undertaking |
Principle activity |
Capital and reserves 2024 |
Total comprehensive income for the period 2024 |
£ |
£ |
Dynamic Office Seating Limited | Furniture wholesale | 4,676,088 | 2,467,643 |
13. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Finished goods | 3,568,678 | 3,898,274 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 2,919,186 | 3,241,071 |
Amounts owed by group undertakings | - | - |
Other debtors | 648,945 | 287,143 |
Directors' current accounts | 67,238 | 67,238 | - | - |
Tax | 21,852 | 21,852 |
Prepayments and accrued income | 99,864 | 96,910 |
3,757,085 | 3,714,214 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Hire purchase contracts (see note 17) | 28,510 | 116,405 |
Trade creditors | 979,893 | 1,062,073 |
Tax | 624,308 | 382,240 |
Social security and other taxes | 42,752 | 32,421 |
VAT | 362,804 | 406,957 | 17,737 | 30,677 |
Other creditors | 1,033,574 | 3,691,144 |
Accruals and deferred income | 51,500 | 82,101 |
3,123,341 | 5,773,341 |
Dynamic Office Group Limited (Registered number: 11676242) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 29 February 2024 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Hire purchase contracts (see note 17) | 86,267 | 115,405 |
Other creditors | 12,916 | 55,416 |
99,183 | 170,821 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 28,510 | 116,405 |
Between one and five years | 86,267 | 115,405 |
114,777 | 231,810 |
Group |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year | 962,162 | 962,812 |
Between one and five years | 2,572,613 | 2,918,340 |
In more than five years | 1,130,130 | 1,746,564 |
4,664,905 | 5,627,716 |
Dynamic Office Group Limited (Registered number: 11676242) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 29 February 2024 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Hire purchase contracts | 114,777 | 231,810 |
Invoice/stock finance facility | - | 3,113,111 |
CBILS loan | - | 20,000 |
114,777 | 3,364,921 |
There are no charges over the parent company. The subsidiary company has two outstanding charges at the balance sheet date, as detailed below: |
HSBC UK Bank PLC holds a charge including fixed charges, floating charges and negative pledges over all the property or undertaking of the Company. |
Close Invoice Finance Ltd hold a charge including fixed charges, floating charges and negative pledges over all property or undertaking of the company in respect of the invoice and stock finance facilities, held by Dynamic Office Seating Limited. The financed debtors are with recourse and as such the trade debtor is recognised until paid. There is also a personal guarantee from Mr C Verlander, director, limited to a maximum amount of £50,000. |
19. | FINANCIAL INSTRUMENTS |
The group holds no financial instruments at fair value through the profit and loss and therefore no income, expense, net gains or losses. |
20. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 52,665 | 86,678 |
Group |
Deferred |
tax |
£ |
Balance at 1 March 2023 | 86,678 |
Credit to Income Statement during year | (34,013 | ) |
Balance at 29 February 2024 | 52,665 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 180 | 180 |
Called up share capital |
This represents the nominal value of shares that have been issued. |
Dynamic Office Group Limited (Registered number: 11676242) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 29 February 2024 |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 March 2023 | 1,775,320 |
Profit for the year | 2,203,407 |
Dividends | (300,000 | ) |
At 29 February 2024 | 3,678,727 |
Company |
Retained |
earnings |
£ |
At 1 March 2023 |
Profit for the year |
Dividends | ( |
) |
At 29 February 2024 |
Retained earnings |
This reserve includes all current and prior period retained profit and losses. |
23. | PENSION COMMITMENTS |
The company operates defined contribution, auto enrolment retirement benefit schemes for all its qualifying employees. The total expense charged to profit or loss in the period ended 29th, February 2024 was £57,664 (2023: £53,024). The amount owed to the pension schemes at the year end was £10,718 (2023: £8,737). |
24. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
At the balance sheet date the directors of the company owed it £67,238 (2023: £67,238), there were no advances or credits in the year. The loans are repayable on demand. No interest is charged on the loans. |
25. | RELATED PARTY DISCLOSURES |
Key management personnel of the entity or its parent (in the aggregate) |
2024 | 2023 |
£ | £ |
Salaries | 56,120 | 53,487 |
Other related parties |
2024 | 2023 |
£ | £ |
Purchases | 1,731,083 | 3,011,571 |
Salaries | 141,179 | 146,045 |
Amount due from related party | 305,352 | - |
Amount due to related party | 267,427 | 372,482 |