Company registration number 02052212 (England and Wales)
DC MANAGEMENT SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
DC MANAGEMENT SERVICES LIMITED
COMPANY INFORMATION
Directors
A Hedin
(Appointed 25 August 2023)
H Hedin
(Appointed 25 August 2023)
K Kibsgaard
(Appointed 25 August 2023)
T Finn
(Appointed 25 August 2023)
Company number
02052212
Registered office
Unit 1
Martinbridge Industrial Estate
240-242 Lincoln Road
Enfield
Middlesex
EN1 1SP
Auditor
Cooper Parry Group Limited
St James Building
79 Oxford Street
Manchester
M1 6HT
Bankers
Santander Corporate Banking
2 Triton Square
Regent's Park
London
NW1 3AN
ABN AMRO Bank N.V.
UK Branch
5 Aldermanbury Square
London
EC2V 7HR
DC MANAGEMENT SERVICES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 21
DC MANAGEMENT SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Business strategy

DC Management Services Limited is the holding company of Stephen James (Automotive) Limited which represents both the BMW and MINI brands.

 

Business review

The company holds the head lease for several buildings associated with the motor retail business which it subleases at cost to its subsidiary and two businesses outside the group.

Principal risks and uncertainties

The principal risks and uncertainties are detailed in the consolidated financial statements of Hedin Automotive Limited.

 

Employee engagement

There are no staff employed by the company at the year end.

 

Business relationships

As a holding company we have no direct contact with suppliers and customers.

 

Finance facility providers

The company has a mortgage facility with BMW Financial Services and for the company’s financing activities.

 

Future developments

There are no future developments directly affecting the company.

On behalf of the board

A Hedin
Director
8 January 2025
DC MANAGEMENT SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and audited financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company is a holding company of a motor car retailer and repairer.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid (2022: £4,250,000). The directors do not recommend payment of a final dividend.

Directors

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

R Ennis
(Resigned 25 August 2023)
P D Williams
(Resigned 25 August 2023)
B J Collins
(Resigned 25 August 2023)
N Davis
(Resigned 25 August 2023)
S N Hopewell
(Resigned 25 August 2023)
A Hedin
(Appointed 25 August 2023)
H Hedin
(Appointed 25 August 2023)
A Joersjö
(Appointed 25 August 2023 and resigned 19 August 2024)
K Kibsgaard
(Appointed 25 August 2023)
T Finn
(Appointed 25 August 2023)
Auditor

The audit business of UHY Hacker Young Manchester LLP was acquired by Cooper Parry Group Limited on 30 September 2024. UHY Hacker Young Manchester LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place. The auditor, Cooper Parry Group Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

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

 

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

 

 

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

DC MANAGEMENT SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Matters addressed within the strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of employee consultation and future developments.

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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
A Hedin
Director
8 January 2025
DC MANAGEMENT SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DC MANAGEMENT SERVICES LIMITED
- 4 -
Opinion

We have audited the financial statements of DC Management Services Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

DC MANAGEMENT SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DC MANAGEMENT SERVICES LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was considered capable of detecting irregularities including fraud

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.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, we considered the following:

 

As a result of these procedures, we did not identify any key audit matters relating to irregularities, including fraud, however in common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

DC MANAGEMENT SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DC MANAGEMENT SERVICES LIMITED
- 6 -

We also obtained an understanding of the legal and regulatory frameworks the company operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

Our procedures to respond to risks identified included the following:

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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.

Paul Daly BEng FCA
Senior Statutory Auditor
For and on behalf of Cooper Parry Group Limited
8 January 2025
Statutory Auditor
St James Building
79 Oxford Street
Manchester
M1 6HT
DC MANAGEMENT SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
-
-
Administrative expenses
(1,463,161)
(3,690,715)
Other operating income
1,017,365
3,676,851
Operating loss
3
(445,796)
(13,864)
Interest receivable and similar income
6
10,017
4,250,000
Interest payable and similar expenses
8
(116,711)
(64,049)
(Loss)/profit before taxation
(552,490)
4,172,087
Tax on (loss)/profit
9
325,141
20,842
(Loss)/profit for the financial year
(227,349)
4,192,929

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

DC MANAGEMENT SERVICES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,892,457
2,893,866
Investments
12
11,602,000
11,602,000
14,494,457
14,495,866
Current assets
Debtors
14
511,312
943,826
Creditors: amounts falling due within one year
15
(10,729,587)
(10,695,269)
Net current liabilities
(10,218,275)
(9,751,443)
Total assets less current liabilities
4,276,182
4,744,423
Creditors: amounts falling due after more than one year
16
(2,726,365)
(2,970,496)
Provisions for liabilities
Deferred tax liability
18
3,239
-
0
(3,239)
-
Net assets
1,546,578
1,773,927
Capital and reserves
Called up share capital
21
160,625
160,625
Share premium account
22
764,832
764,832
Capital redemption reserve
22
20,000
20,000
Profit and loss reserves
22
601,121
828,470
Total equity
1,546,578
1,773,927
The financial statements were approved by the board of directors and authorised for issue on 8 January 2025 and are signed on its behalf by:
A Hedin
Director
Company registration number 02052212 (England and Wales)
DC MANAGEMENT SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
160,625
764,832
20,000
885,541
1,830,998
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
4,192,929
4,192,929
Dividends
10
-
-
-
(4,250,000)
(4,250,000)
Balance at 31 December 2022
160,625
764,832
20,000
828,470
1,773,927
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
-
(227,349)
(227,349)
Balance at 31 December 2023
160,625
764,832
20,000
601,121
1,546,578
DC MANAGEMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information

DC Management Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1, Martinbridge Industrial Estate, 240-242 Lincoln Road, Enfield, Middlesex, EN1 1SP.

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. The principal accounting policies adopted are set out below.

This 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:

 

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

- Section 11 ‘Basic Financial Instruments’;

- Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

 

The financial statements of the company are consolidated in the financial statements of Hedin Automotive Ltd. These consolidated financial statements are available from its registered office, Mercedes Benz of Brooklands, Brooklands Drive, Weybridge, KT13 0SL.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Tangible fixed assets

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

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

Freehold land and buildings
50 years straight line
Leasehold land and buildings
Straight line over the term of the lease
Fixtures and fittings
3 - 10 years straight line

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 credited or charged to profit or loss.

1.4
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

DC MANAGEMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.5
Impairment of fixed assets

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

1.6
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.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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 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.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

DC MANAGEMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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 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 company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

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

1.9
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 company’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 when the company has 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.

DC MANAGEMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.10
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.

1.11
Retirement benefits

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

1.12
Leases

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.

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 term of the lease.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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.

Estimated useful lives of tangible assets

The annual depreciation change for tangible and is sensitive to changes in the estimated useful economics lives and residual values of assets. The useful economic lives and residual values are re-assessed annually. They are amended where necessary to reflect current estimates.

3
Operating loss
2023
2022
Operating loss for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
-
0
-
0
Depreciation of owned tangible fixed assets
38,114
33,096
Operating lease charges
839,436
897,931
DC MANAGEMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
4
Auditor's remuneration

Auditor's remuneration for company audit services is borne by a fellow group undertaking.

5
Employees

The average number of persons, including directors, employed by the company during the year was:

2023
2022
Number
Number
Management and administration
2
5

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
359,452
818,308
Social security costs
62,882
114,981
Pension costs
8,881
54,308
431,215
987,597
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
10,017
-
0
Income from fixed asset investments
Income from shares in group undertakings
-
0
4,250,000
Total income
10,017
4,250,000
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
364,059
822,584
Company pension contributions to defined contribution schemes
8,881
54,308
372,940
876,892

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 1).

DC MANAGEMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Directors' remuneration
(Continued)
- 15 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
213,084
533,407
Company pension contributions to defined contribution schemes
4,000
-

Further details of transactions with directors can be found in Note 24.

8
Interest payable and similar expenses
2023
2022
£
£
Other interest on financial liabilities
116,711
64,049
9
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(195,141)
(20,842)
Group tax relief
(133,239)
-
0
Total current tax
(328,380)
(20,842)
Deferred tax
Origination and reversal of timing differences
3,239
-
0
Total tax credit
(325,141)
(20,842)

The rate of corporation tax has increased from 19% to 25% as of 1 April 2023.

DC MANAGEMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 16 -

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

2023
2022
£
£
(Loss)/profit before taxation
(552,490)
4,172,087
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(129,946)
792,697
Tax effect of expenses that are not deductible in determining taxable profit
51
6,288
Change in unrecognised deferred tax assets
-
0
8,515
Adjustments in respect of prior years
-
0
(20,842)
Depreciation on assets not qualifying for tax allowances
8,965
-
0
Under/(over) provided in prior years
(195,141)
-
0
Deferred tax adjustments in respect of prior years
8,950
-
0
Dividend income
-
0
(807,500)
Difference between current and deferred tax rates
526
-
0
Other adjustments
(18,546)
-
0
Taxation credit for the year
(325,141)
(20,842)
10
Dividends
2023
2022
£
£
Final paid
-
0
4,250,000
DC MANAGEMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
11
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2023
2,575,622
416,418
19,692
3,011,732
Additions
36,705
-
0
-
0
36,705
Disposals
-
0
-
0
(19,692)
(19,692)
At 31 December 2023
2,612,327
416,418
-
0
3,028,745
Depreciation and impairment
At 1 January 2023
857
97,317
19,692
117,866
Depreciation charged in the year
5,875
32,239
-
0
38,114
Eliminated in respect of disposals
-
0
-
0
(19,692)
(19,692)
At 31 December 2023
6,732
129,556
-
0
136,288
Carrying amount
At 31 December 2023
2,605,595
286,862
-
0
2,892,457
At 31 December 2022
2,574,765
319,101
-
0
2,893,866
12
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
13
11,602,000
11,602,000
13
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Stephen James (Automotive) Limited
UK
Ordinary
100.00

The registered office of Stephen James (Automotive) Limited is Unit 1 Martinbridge Industrial Estate, 240-242 Lincoln Road, Enfield, Middlesex, EN1 1SP.

DC MANAGEMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Corporation tax recoverable
-
0
20,489
Other debtors
-
0
395,724
Prepayments and accrued income
511,312
527,613
511,312
943,826
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other borrowings
17
188,016
188,016
Amounts owed to group undertakings
10,380,901
9,932,291
Corporation tax
352
-
0
Other taxation and social security
17,677
-
0
Other creditors
3,734
369,008
Accruals and deferred income
138,907
205,954
10,729,587
10,695,269
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
17
1,421,458
1,607,661
Deferred income
19
1,304,907
1,362,835
2,726,365
2,970,496
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,034,088
846,072
17
Loans and overdrafts
2023
2022
£
£
Other borrowings
1,609,474
1,795,677
Payable within one year
188,016
188,016
Payable after one year
1,421,458
1,607,661
DC MANAGEMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Loans and overdrafts
(Continued)
- 19 -

Other borrowings relates to a term loan due to BMW Financial Services (GB) Limited. Monthly repayments of £15,668 commenced in July 2022 with a final payment due in June 2032. Interest is payable at a rate of 2.45% above BMW base rate. The loan is secured against the freehold property at Tylney Road, Bromley.

18
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
21,785
-
Other
(18,546)
-
3,239
-
2023
Movements in the year:
£
Liability at 1 January 2023
-
Charge to profit or loss
3,239
Liability at 31 December 2023
3,239
19
Deferred income
2023
2022
£
£
Deferred lease incentive
1,304,907
1,362,835

The deferred lease incentive is released over the property lease term of 25 years to June 2047. The lease charge and lease commitment is recognised in Stephen James (Automotive) Limited.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
8,881
54,308

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

DC MANAGEMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
160,625
160,625
160,625
160,625
22
Reserves

Share premium

Includes any premiums received on the issue of share capital above its par value.

 

Capital redemption reserve

The capital redemption reserve contains the par value of all shares that have been repurchased by the company.

 

Profit and loss reserves

The profit and loss reserve contains all current and prior period retained profits less any distributions to shareholders.

 

23
Operating lease commitments
Lessee

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

2023
2022
£
£
Within one year
837,950
837,950
Between two and five years
2,120,352
2,958,302
2,958,302
3,796,252
Lessor

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2023
2022
£
£
Within one year
837,950
837,950
Between two and five years
2,120,352
2,958,302
2,958,302
3,796,252

Rentals payable under operating leases are met by a subsidiary company, Stephen James (Automotive) Limited.

24
Related party transactions
DC MANAGEMENT SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Related party transactions
(Continued)
- 21 -

Big & Red Storage Limited is a company with common directorships. During the year rent and other expenses totalling £nil (2022 - £3,300) was charged by the company. At the year end a balance of £nil (2022 - £371,781) was due from this company, on which the group received interest of £8,724 (2022 - £19,613). During the year rent and other expenses totalling £723,128 (2022: £752,648) was charged to the company.

 

During the year the company paid fees of £nil (2022 - £4,000) to Ineversley Limited, a company with common directorships. There was no balance outstanding at the end of the year (2022: £nil).

 

During the year rent totalling £nil (2022 - £6,600) was charged by a director to the company for use of a property.

 

During the year professional fees totalling £nil (2022: £1,500,000) was paid to a director of the company.

 

25
Ultimate controlling party

The ultimate parent company is Hedin Mobility Group AB. The ultimate UK parent company is Hedin Automotive Ltd. The ultimate controlling party is considered to be A Hedin by virtue of his majority voting rights in the ultimate parent company.

 

 

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