IRIS Accounts Production v24.3.0.553 08676692 Board of Directors 1.3.23 29.2.24 29.2.24 false true false false false true false iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh086766922023-02-28086766922024-02-29086766922023-03-012024-02-29086766922022-02-28086766922022-03-012023-02-28086766922023-02-2808676692ns15:EnglandWales2023-03-012024-02-2908676692ns14:PoundSterling2023-03-012024-02-2908676692ns10:Director12023-03-012024-02-2908676692ns10:PrivateLimitedCompanyLtd2023-03-012024-02-2908676692ns10:SmallEntities2023-03-012024-02-2908676692ns10:AuditExempt-NoAccountantsReport2023-03-012024-02-2908676692ns10:SmallCompaniesRegimeForDirectorsReport2023-03-012024-02-2908676692ns10:SmallCompaniesRegimeForAccounts2023-03-012024-02-2908676692ns10:FullAccounts2023-03-012024-02-290867669212023-03-012024-02-2908676692ns10:Director22023-03-012024-02-2908676692ns10:RegisteredOffice2023-03-012024-02-2908676692ns5:CurrentFinancialInstruments2024-02-2908676692ns5:CurrentFinancialInstruments2023-02-2808676692ns5:Non-currentFinancialInstruments2024-02-2908676692ns5:Non-currentFinancialInstruments2023-02-2808676692ns5:ShareCapital2024-02-2908676692ns5:ShareCapital2023-02-2808676692ns5:RetainedEarningsAccumulatedLosses2024-02-2908676692ns5:RetainedEarningsAccumulatedLosses2023-02-2808676692ns5:PatentsTrademarksLicencesConcessionsSimilar2023-03-012024-02-2908676692ns5:PatentsTrademarksLicencesConcessionsSimilar2023-02-2808676692ns5:PatentsTrademarksLicencesConcessionsSimilar2024-02-2908676692ns5:PatentsTrademarksLicencesConcessionsSimilar2023-02-2808676692ns5:LandBuildingsns5:ShortLeaseholdAssets2023-02-2808676692ns5:PlantMachinery2023-02-2808676692ns5:LandBuildingsns5:ShortLeaseholdAssets2023-03-012024-02-2908676692ns5:PlantMachinery2023-03-012024-02-2908676692ns5:LandBuildingsns5:ShortLeaseholdAssets2024-02-2908676692ns5:PlantMachinery2024-02-2908676692ns5:LandBuildingsns5:ShortLeaseholdAssets2023-02-2808676692ns5:PlantMachinery2023-02-2808676692ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2023-02-2808676692ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2024-02-2908676692ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2023-02-2808676692ns5:WithinOneYearns5:CurrentFinancialInstruments2024-02-2908676692ns5:WithinOneYearns5:CurrentFinancialInstruments2023-02-2808676692ns5:CurrentFinancialInstruments2023-03-012024-02-2908676692ns5:BetweenOneTwoYearsns5:Non-currentFinancialInstruments2024-02-2908676692ns5:BetweenOneTwoYearsns5:Non-currentFinancialInstruments2023-02-2808676692ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2024-02-2908676692ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-02-2808676692ns5:Secured2024-02-2908676692ns5:Secured2023-02-2808676692ns5:DeferredTaxation2023-02-2808676692ns5:DeferredTaxation2024-02-29
REGISTERED NUMBER: 08676692 (England and Wales)















Unaudited Financial Statements for the Year Ended 29 February 2024

for

Denchi Group Limited

Denchi Group Limited (Registered number: 08676692)






Contents of the Financial Statements
for the Year Ended 29 February 2024




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


Denchi Group Limited

Company Information
for the Year Ended 29 February 2024







DIRECTORS: D Campbell
N Russel





REGISTERED OFFICE: C/O Mishcon De Reya
Four Station Square
Cambridge
Cambridgeshire
CB1 2GE





REGISTERED NUMBER: 08676692 (England and Wales)





ACCOUNTANTS: Reid & Fraser
Chartered Accountants
15 Princes Street
Thurso
Caithness
KW14 7BQ

Denchi Group Limited (Registered number: 08676692)

Balance Sheet
29 February 2024

2024 2023
as restated
Notes £    £   
FIXED ASSETS
Intangible assets 4 48,318 86,121
Tangible assets 5 89,531 105,674
137,849 191,795

CURRENT ASSETS
Stocks 6 3,080,470 1,645,214
Debtors 7 1,616,078 3,340,389
Cash at bank and in hand 4,905 126,466
4,701,453 5,112,069
CREDITORS
Amounts falling due within one year 8 (2,902,800 ) (4,089,723 )
NET CURRENT ASSETS 1,798,653 1,022,346
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,936,502

1,214,141

CREDITORS
Amounts falling due after more than one
year

9

(227,673

)

(328,917

)
NET ASSETS 1,708,829 885,224

CAPITAL AND RESERVES
Called up share capital 200 200
Retained earnings 1,708,629 885,024
SHAREHOLDERS' FUNDS 1,708,829 885,224

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 29 February 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 29 February 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

Denchi Group Limited (Registered number: 08676692)

Balance Sheet - continued
29 February 2024


The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 29 November 2024 and were signed on its behalf by:





D Campbell - Director


Denchi Group Limited (Registered number: 08676692)

Notes to the Financial Statements
for the Year Ended 29 February 2024

1. STATUTORY INFORMATION

Denchi Group Limited is a private company, limited by shares , registered in England and Wales. 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 Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling (£).

TURNOVER
Turnover represents net invoiced sales of goods and services, excluding value added tax. Turnover from contracts is recognised in accordance with the company's accounting policy on contracts.

LICENCES
Licences are originally recorded at cost and are amortised on a straight line basis over their estimated useful lives of three years.

TANGIBLE FIXED ASSETS
Tangible fixed assets are originally recorded at cost. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Leasehold improvements20% straight line
Plant and machinery20% straight line
Computer equipment33% straight line

STOCKS
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Denchi Group Limited (Registered number: 08676692)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

2. ACCOUNTING POLICIES - continued

FINANCIAL INSTRUMENTS
The company has elected to apply the provisions of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instruments Issues" of FRS 102 to all of its financial instruments.

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

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

Basic financial assets
Basic financial assets, which include 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 measure 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.

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 company after deducting all of its liabilities.

Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from its 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 rate method.

TAXATION
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.

Denchi Group Limited (Registered number: 08676692)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

2. ACCOUNTING POLICIES - continued

RESEARCH AND DEVELOPMENT
Expenditure on research and development is written off in the year in which it is incurred.


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 company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

LONG TERM CONTRACTS
Profit on long term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Full provision is made for losses on all contracts in the year in which they are first foreseen.

FOREIGN CURRENCY TRANSACTIONS
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.

GOVERNMENT GRANTS
Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by annual instalments.

Government grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 66 (2023 - 61 ) .

Denchi Group Limited (Registered number: 08676692)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

4. INTANGIBLE FIXED ASSETS
Licences
£   
COST
At 1 March 2023 159,840
Additions 6,550
At 29 February 2024 166,390
AMORTISATION
At 1 March 2023 73,719
Amortisation for year 44,353
At 29 February 2024 118,072
NET BOOK VALUE
At 29 February 2024 48,318
At 28 February 2023 86,121

5. TANGIBLE FIXED ASSETS
Short Plant and
leasehold machinery Totals
£    £    £   
COST
At 1 March 2023 44,673 937,187 981,860
Additions - 44,922 44,922
At 29 February 2024 44,673 982,109 1,026,782
DEPRECIATION
At 1 March 2023 20,286 855,900 876,186
Charge for year 8,935 52,130 61,065
At 29 February 2024 29,221 908,030 937,251
NET BOOK VALUE
At 29 February 2024 15,452 74,079 89,531
At 28 February 2023 24,387 81,287 105,674

Denchi Group Limited (Registered number: 08676692)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

5. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
machinery
£   
COST
At 1 March 2023 27,440
Transfer to ownership (27,440 )
At 29 February 2024 -
DEPRECIATION
At 1 March 2023 25,153
Transfer to ownership (25,153 )
At 29 February 2024 -
NET BOOK VALUE
At 29 February 2024 -
At 28 February 2023 2,287

6. STOCKS
2024 2023
as restated
£    £   
Stocks 2,221,020 1,495,874
Work-in-progress 859,450 149,340
3,080,470 1,645,214

7. DEBTORS
2024 2023
as restated
£    £   
Amounts falling due within one year:
Trade debtors 1,146,322 2,709,108
Corporation tax 196,294 155,958
Deferred tax asset 39,602 309,802
Prepayments and accrued income 97,025 63,153
1,479,243 3,238,021

Amounts falling due after more than one year:
Corporation tax 136,835 102,368

Aggregate amounts 1,616,078 3,340,389

Denchi Group Limited (Registered number: 08676692)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
as restated
£    £   
Bank loans and overdrafts 120,570 1,229,681
Other loans 1,188 16,411
Hire purchase contracts - 3,439
Trade creditors 564,354 534,461
Social security and other taxes 250,979 461,445
Other creditors 59,440 61,756
Accruals and deferred income 1,906,213 1,782,192
Deferred government grants 56 338
2,902,800 4,089,723

Other creditors include £8,083 (2023 - £7,877) in respect of outstanding pension contributions.

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
as restated
£    £   
Bank loans - 1-2 years 100,000 100,000
Bank loans - 2-5 years 125,000 225,000
Other loans - 1-2 years 1,188 1,188
Other loans - 2-5 years 1,485 2,673
Deferred government grants - 56
227,673 328,917

10. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
as restated
£    £   
Bank overdrafts 20,570 1,129,681
Other loans 3,861 20,272
24,431 1,149,953

11. DEFERRED TAX
£   
Balance at 1 March 2023 (309,802 )
Accelerated capital allowances 3,799
Short term differences (2,604 )
Loss relief utilised in year 269,005
Balance at 29 February 2024 (39,602 )