Company registration number 08669351 (England and Wales)
DARKSTORM TRADING GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
DARKSTORM TRADING GROUP LIMITED
COMPANY INFORMATION
Directors
J G Ritter
R G Arnold
M S Tabori
C J Dean
Secretary
C J Dean
Company number
08669351
Registered office
82 St John Street
London
EC1M 4JN
Auditor
Beavis Morgan Audit Limited
82 St John Street
London
EC1M 4JN
DARKSTORM TRADING GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 32
DARKSTORM TRADING GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Fair review of the business

The key financial results are as follows:

 

 

Year ended 31 December 2023

18 Months ended 31 December 2022

 

£

£

Turnover

62,874,925

73,706,706

Increase/(decrease) in turnover (annualised)

28.0%

(5.3)%

Gross profit

8,704,391

9,802,802

 

 

 

During the year the group has continued to integrate the new subsidiaries acquired/formed in 2021 and 2022, Interr Security GmbH, a company headquartered in Berlin, Germany, and Interr Securite SAS, a company headquartered in Paris, France. The group has continued to achieve its goal of improving service delivery in the respective countries through direct local employees and management, by continuing to recruit new and experienced staff in each market. The directors are pleased with the improved business performance of the overall group as a result of the new subsidiary companies. The directors are pleased with the 28.0% annual revenue growth.

 

During 2023 the group formed and acquired 49.4% of the share capital of an associate Interr Technology & Innovation Limited. Currently the associate is dormant and is expected to begin trading in 2025. The associate formation is to facilitate the expansion into new markets, by delivering technology and innovation solutions, enhancing the security offering to new and current customers.

 

With the profit generated in the year, the group’s net assets have increased from £2,958,516 to £3,121,610 at 31 December 2023 following the payment of £990,683 of dividends to the shareholders of Darkstorm Trading Group Limited and the group's non-controlling interests. The group retains good liquidity, with net current assets of £2,892,963 at 31 December 2023.

 

The directors expect the performance of the group will grow at a comparable level in the forthcoming year.

 

The group's division of services by turnover are as follows:

 

 

Year ended 31 December 2023

18 Months ended 31 December 2022

 

£

£

 

 

 

Security

62,847,504

73,487,295

Other income

27,421

219,411

 

27,421

219,411

 

 

 

 

 

 

 

DARKSTORM TRADING GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The group's principal financial instruments comprise bank balances, invoice discounting facilities, trade debtors and trade creditors, and its approach to managing risks applicable to the financial instruments concerned is shown below:

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of invoice discounting facilities with set rates of discounting charges. Invoice discounting is managed in tandem with trade debtors. The group manages the liquidity risk by ensuring there are sufficient funds to meet payments.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors ' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Over the course of the year the pound strengthened slightly against the Euro, from 1.13 at 31 December 2022 to 1.15 at 31 December 2023. Generally this will have the effect of decreasing € denominated revenue and net assets.

Section 172 statement

Darkstorm Trading Group Limited and its board of directors are committed to promoting the success of the company for the benefit of its stakeholders, including; shareholders, employees and their families customers, suppliers; and the community. The company endeavours to act in an equitable manner between its stakeholders, it does this by seeking to understand different stakeholders' viewpoints and then considering them in its decision making. Underlying this commitment is the company's desire to maintain a reputation for high standards of business conduct.

 

The company conducts regular board meetings and various specialist committees to monitor and appraise the company’s progress against its strategic priorities and to consider the long-term outcomes of its decisions and actions.

 

A key stakeholder of the company is our committed employee base. Intertwined in almost every decision which is taken our employees are considered. Underpinning this the company has implemented various initiatives to enhance our employee's engagement, communication, and to complement our values which encompass everything we do.

 

The company considers communicating with its employees to be incredibly important to both update our employees but also to receive feedback on plans and proposals. As such, there is a structured communication framework across the business.

 

The board also regularly considers its environmental, corporate social responsibility, and risk management approach, through committees set up for each purpose. By the nature of our services and client base our decisions impact the community, the environment, and for this reason the board seeks to ensure that our decisions have a positive impact. We do this through our ESG monitoring and promotion. Furthermore, the company actively reviews its approach to fostering long term business relationships with its customers, suppliers, and other stakeholders, at all times seeking to operate in a manner aligned with its values and with integrity.

On behalf of the board

 

C J Dean
Director
16 January 2025
DARKSTORM TRADING GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The group's principal activities continued to be that of the provision of security and cleaning services.

Directors

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

J G Ritter
R G Arnold
M S Tabori
C J Dean
Results and dividends

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

Ordinary dividends were paid amounting to £570,000. The directors do not recommend payment of a further dividend.

Engagement with suppliers and customers

The group includes the likely effects on its relationship with suppliers and customers as part of its decision-making process.

Disabled persons

It is the company's policy to ensure that equality of opportunity is provided to all employees and those seeking employment and to provide opportunities and make all reasonable adjustments to support the employment, training and development and retention of those with a disability.

Employee involvement

Employee involvement is considered to be essential to the success of the organisation. The board values the contributions made by the company's employees, and facilitates this through the medium of monthly team meetings, appraisals, and staff surveys. The company distributes a monthly newsletter to keep employees informed of relevant organisational and industry news, specifically highlighting its appreciation of employee contributions to encourage further involvement.

 

Learning and development is key to supporting staff in the delivery of our objectives and the company encourages the use of internal and external courses for the achievement of relevant qualifications.

Auditor

In accordance with the company's articles, a resolution proposing that Beavis Morgan Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

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

Energy and carbon report
As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
DARKSTORM TRADING GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
C J Dean
Director
16 January 2025
DARKSTORM TRADING GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

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

 

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

 

 

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

DARKSTORM TRADING GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DARKSTORM TRADING GROUP LIMITED
- 6 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

 

 

DARKSTORM TRADING GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DARKSTORM TRADING GROUP LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

DARKSTORM TRADING GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DARKSTORM TRADING GROUP LIMITED
- 8 -

Capability of the audit in detecting irregularities, including fraud

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

 

The following laws and regulations were identified as being of significance to the entity:

 

 

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

 

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.

Richard Thacker (Senior Statutory Auditor)
For and on behalf of Beavis Morgan Audit Limited
16 January 2025
Chartered Accountants
Statutory Auditor
82 St John Street
London
EC1M 4JN
DARKSTORM TRADING GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Year
Period
ended
ended
31 December
31 December
2023
2022
Notes
£
£
Turnover
3
62,874,925
73,706,706
Cost of sales
(54,170,534)
(63,903,904)
Gross profit
8,704,391
9,802,802
Administrative expenses
(7,049,368)
(7,663,785)
Other operating income
3
-
6,180
Operating profit
4
1,655,023
2,145,197
Interest receivable and similar income
8
3,497
691
Interest payable and similar expenses
9
(197,282)
(137,355)
Profit before taxation
1,461,238
2,008,533
Tax on profit
10
(488,188)
(504,257)
Profit for the financial year
973,050
1,504,276
Profit for the financial year is attributable to:
- Owners of the parent company
717,416
1,122,417
- Non-controlling interests
255,634
381,859
973,050
1,504,276

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

DARKSTORM TRADING GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Year
Period
ended
ended
31 December
31 December
2023
2022
£
£
Profit for the year
973,050
1,504,276
Other comprehensive income
Currency translation gain taken to retained earnings
223,938
52,536
Total comprehensive income for the year
1,196,988
1,556,812
Total comprehensive income for the year is attributable to:
- Owners of the parent company
871,928
1,159,874
- Non-controlling interests
325,060
396,938
1,196,988
1,556,812
DARKSTORM TRADING GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
71,692
83,694
Tangible assets
13
156,955
134,823
228,647
218,517
Current assets
Debtors
17
16,270,904
16,349,986
Cash at bank and in hand
708,808
497,591
16,979,712
16,847,577
Creditors: amounts falling due within one year
18
(14,043,538)
(13,871,030)
Net current assets
2,936,174
2,976,547
Total assets less current liabilities
3,164,821
3,195,064
Provisions for liabilities
Provisions
20
-
0
236,548
-
(236,548)
Net assets
3,164,821
2,958,516
Capital and reserves
Called up share capital
23
20,000
20,000
Profit and loss reserves
2,623,307
2,321,379
Equity attributable to owners of the parent company
2,643,307
2,341,379
Non-controlling interests
521,514
617,137
3,164,821
2,958,516
The financial statements were approved by the board of directors and authorised for issue on 16 January 2025 and are signed on its behalf by:
16 January 2025
C J Dean
Director
Company registration number 08669351 (England and Wales)
DARKSTORM TRADING GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
10,000
10,000
Current assets
Cash at bank and in hand
9,974
9,974
Creditors: amounts falling due within one year
18
(9,900)
(9,900)
Net current assets
74
74
Total assets less current liabilities
10,074
10,074
Capital and reserves
Called up share capital
23
20,000
20,000
Profit and loss reserves
(9,926)
(9,926)
Total equity
10,074
10,074
The financial statements were approved by the board of directors and authorised for issue on 16 January 2025 and are signed on its behalf by:
16 January 2025
C J Dean
Director
Company Registration No. 08869351
DARKSTORM TRADING GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 July 2021
20,000
2,111,505
2,131,505
518,062
2,649,567
Period ended 31 December 2022:
Profit for the period
-
1,122,417
1,122,417
381,859
1,504,276
Other comprehensive income:
Currency translation differences
-
52,536
52,536
-
52,536
Amounts attributable to non-controlling interests
-
(15,079)
(15,079)
15,079
-
Total comprehensive income
-
1,159,874
1,159,874
396,938
1,556,812
Dividends
11
-
(950,000)
(950,000)
(300,000)
(1,250,000)
Acquisition of subsidiary
-
-
-
2,137
2,137
Balance at 31 December 2022
20,000
2,321,379
2,341,379
617,137
2,958,516
Year ended 31 December 2023:
Profit for the year
-
717,416
717,416
255,634
973,050
Other comprehensive income:
Currency translation differences
-
223,938
223,938
-
223,938
Amounts attributable to non-controlling interests
-
(69,426)
(69,426)
69,426
-
Total comprehensive income
-
871,928
871,928
325,060
1,196,988
Dividends
11
-
(570,000)
(570,000)
(420,683)
(990,683)
Balance at 31 December 2023
20,000
2,623,307
2,643,307
521,514
3,164,821
DARKSTORM TRADING GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2021
20,000
-
0
20,000
Period ended 31 December 2022:
Profit and total comprehensive income for the period
-
940,074
940,074
Dividends
11
-
(950,000)
(950,000)
Balance at 31 December 2022
20,000
(9,926)
10,074
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
570,000
570,000
Dividends
11
-
(570,000)
(570,000)
Balance at 31 December 2023
20,000
(9,926)
10,074
DARKSTORM TRADING GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,981,754
2,058,447
Interest paid
(197,282)
(137,355)
Income taxes paid
(525,756)
(692,702)
Net cash inflow from operating activities
1,258,716
1,228,390
Investing activities
Purchase of business, net of cash acquired
-
90,868
Purchase of tangible fixed assets
(153,878)
(198,018)
Proceeds on disposal of tangible fixed assets
-
822
Interest received
3,497
691
Net cash used in investing activities
(150,381)
(105,637)
Financing activities
Repayment of bank loans
(41,667)
(187,500)
Dividends paid to equity shareholders
(570,000)
(950,000)
Dividends paid to non-controlling interests
(420,683)
(300,000)
Net cash used in financing activities
(1,032,350)
(1,437,500)
Net increase/(decrease) in cash and cash equivalents
75,985
(314,747)
Cash and cash equivalents at beginning of year
408,885
671,096
Effect of foreign exchange rates
223,938
52,536
Cash and cash equivalents at end of year
708,808
408,885
Relating to:
Cash at bank and in hand
708,808
497,591
Bank overdrafts included in creditors payable within one year
-
(88,706)
DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Darkstorm Trading Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 82 St John Street, London, EC1M 4JN.

 

The group consists of Darkstorm Trading Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

As permitted by s408 companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's profit for the year was £570,000 (2022: £940,074).

 

Under Companies Act 2006, s454, on a voluntary basis, the directors can amend these financial
statements if they subsequently prove to be defective.
DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.

 

Where subsidiaries leave the group as a result of demerger or distribution in specie to shareholders, the net assets of relevant subsidiaries are derecognised from the point at which the distribution becomes legally binding. The distribution is measured in the group accounts at the carrying value of net assets distributed or demerged.

The consolidated financial statements incorporate those of Darkstorm Trading Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

All financial statements are made up to 31 December 2023.

 

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

1.3
Going concern

The group's ability to continue trading as a going concern is dependent, to a large extent, on the continued availability of its debt factoring facility and the support of the shareholders to provide sufficient additional funds. The directors have concluded that the group will have sufficient funds to maintain its working capital requirements and enable it to settle its liabilities as and when they fall due for payment for the period of at least 12 months following the date of approval of these financial statements. Accordingly, the directors consider that it is appropriate to apply the going concern concept in preparing the financial statements.

1.4
Reporting period

The previous accounting period was for a period of 18 months whereas the current accounting period spans a year. The comparative information presented in the financial statements is not therefore entirely comparable.

1.5
Turnover

Turnover represents amounts receivable for the provision of security, cleaning, and risk management services net of VAT and trade discounts and is recognised at the point of provision of the services.

1.6
Intangible fixed assets - goodwill

Acquired goodwill is stated at cost and is written off in equal annual instalments over its estimated useful economic life of 20 years.

1.7
Tangible fixed assets

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

DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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

Leasehold improvements
20% Straight line
Fixtures, fittings & equipment
33% Straight line
Computer equipment
33% Straight line
Motor vehicles
20% / 33% 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 recognised in the profit and loss account.

1.8
Fixed asset investments

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.9
Impairment of fixed assets

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

 

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

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

 

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

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

1.10
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.11
Financial instruments

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

 

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

 

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

Basic financial assets

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

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. Preference shares where redemption and payment of dividends are at the discretion of the directors are classified as equity instruments.

DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

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

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.12
Taxation
Current tax

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

Deferred tax

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

 

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

1.13
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.14
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.

1.15
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.16
Leases

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

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

1.17
Foreign exchange

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

1.18

Sales commissions

Sales commissions are payable on agreed percentages of total sales contract value on a contract by contract basis. Commissions are recognised on administrative expenses within the profit and loss account as contract activity progresses.

2
Judgements and key sources of estimation uncertainty

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

 

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

DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
Key sources of estimation uncertainty
Recoverability of debtors

The management makes an estimate of the recoverable value of trade and other debtors. When assessing the provision against trade and other debtors, management considers factors including the ageing profile of debtors as compared with contractual credit periods given and objective evidence concerning the financial standing of debtors.

Deferred tax assets

Judgement is required in estimating the extent to which deferred tax assets are recoverable.

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Security
62,847,504
73,487,295
Other income
27,421
219,411
62,874,925
73,706,706
2023
2022
£
£
Other significant revenue
Interest income
3,497
691
2023
2022
£
£
Turnover analysed by geographical market
UK
27,819,229
33,175,040
Rest of Europe
34,989,662
40,503,615
Asia
66,034
28,051
62,874,925
73,706,706
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
85,471
(8,701)
Depreciation of owned tangible fixed assets
131,746
127,028
Amortisation of intangible assets
12,002
18,002
Operating lease charges
290,484
259,136
DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
42,500
30,000
For other services
All other non-audit services
8,500
6,600
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Professional
894
573
-
-
Administration
72
57
-
-
Total
966
630
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
13,976,589
10,916,905
-
0
-
0
Social security costs
1,234,860
916,994
-
-
Pension costs
230,972
159,819
-
0
-
0
15,442,421
11,993,718
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
265,708
415,500
Company pension contributions to defined contribution schemes
1,321
1,981
267,029
417,481
DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Directors' remuneration
(Continued)
- 24 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
129,750
183,333

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

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
865
691
Other interest income
2,632
-
Total income
3,497
691
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
31,973
9,933
Interest on invoice finance arrangements
165,309
127,422
Total finance costs
197,282
137,355
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
235,432
128,653
Adjustments in respect of prior periods
37,820
-
0
Total UK current tax
273,252
128,653
Foreign current tax on profits for the current period
234,660
343,725
Total current tax
507,912
472,378
Deferred tax
Origination and reversal of timing differences
(19,724)
31,879
Total tax charge
488,188
504,257
DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 25 -

The UK corporation tax rate increased to 25% with effect from 1 April 2023. Deferred taxes at the balance sheet date have been measured accordingly.

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

2023
2022
£
£
Profit before taxation
1,461,238
2,008,533
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
343,683
381,621
Tax effect of expenses that are not deductible in determining taxable profit
13,520
12,384
Adjustments in respect of prior years
37,820
-
0
Effect of change in corporation tax rate
-
5,812
Effect of overseas tax rates
94,682
115,312
Other tax adjustments
5
(2,182)
Deferred tax rate movement
(1,131)
-
0
Permanent timing differences
-
0
(8,690)
Deferred tax not recognised
(606)
-
Other items
215
-
Taxation charge
488,188
504,257
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
570,000
950,000
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
189,502
Amortisation and impairment
At 1 January 2023
105,808
Amortisation charged for the year
12,002
At 31 December 2023
117,810
DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Intangible fixed assets
(Continued)
- 26 -
Carrying amount
At 31 December 2023
71,692
At 31 December 2022
83,694
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
13
Tangible fixed assets
Group
Leasehold improvements
Leasehold improvements
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
290
118,906
128,939
278,203
34,571
560,909
Additions
1,704
570
123,436
28,168
-
0
153,878
At 31 December 2023
1,994
119,476
252,375
306,371
34,571
714,787
Depreciation and impairment
At 1 January 2023
-
0
104,803
110,329
200,794
10,160
426,086
Depreciation charged in the year
207
5,857
33,005
86,820
5,857
131,746
At 31 December 2023
207
110,660
143,334
287,614
16,017
557,832
Carrying amount
At 31 December 2023
1,787
8,816
109,041
18,757
18,554
156,955
At 31 December 2022
290
14,103
18,610
77,409
24,411
134,823
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
10,000
10,000
DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
10,000
Carrying amount
At 31 December 2023
10,000
At 31 December 2022
10,000
15
Subsidiaries

In the opinion of the directors, the aggregated value of the company's investment in subsidiary undertakings is not less than the amount included in the balance sheet.

 

Holdings of more then 20%

The company holds more than 20% of the share capital of the following companies:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Darkstorm Trading Limited
England & Wales
Provision of security
services
Ordinary
100.00
-
Interr Limited*
England & Wales
Provision of security
services
Ordinary
-
75.99
Interr Securite SAS*
37 Rue Verniquet. 75017 Paris, France
Provision of security  services
Ordinary
-
75.99
Interr Security GmbH*
Asternplatz 3, 12203 Berlin, Germany
Provision of security  services
Ordinary
-
68.39

* Shares held by a subsidiary undertaking.

 

The following subsidiaries are exempt from the requirements of the UK Companies Act 2006 relating to the audit of individual accounts by virtue of section 479A of the Act. The company has provided the subsidiaries listed below with a guarantee under section 479C of the Act thereby undertaking to guarantee all outstanding liabilities to which the subsidiary is subject to at the end of the financial period:

Registered number
Company
03771094
Darkstorm Trading Limited
08665394
Interr Limited
16
Associates

Details of associates at 31 December 2023 are as follows:

DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Associates
(Continued)
- 28 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Interr Technology and Innovation Limited
82 St John Street, London, EC1M 4JN
Dormant
Ordinary
-
49
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
14,688,909
14,791,053
-
0
-
0
Corporation tax recoverable
68,758
-
0
-
0
-
0
Other debtors
989,735
1,022,838
-
0
-
0
Prepayments and accrued income
486,711
519,028
-
0
-
0
16,234,113
16,332,919
-
-
Deferred tax asset (note 21)
36,791
17,067
-
0
-
0
16,270,904
16,349,986
-
-
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank overdraft
19
-
0
130,373
-
0
-
0
Trade creditors
6,819,667
5,856,932
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
9,900
9,900
Corporation tax payable
283,397
232,483
-
0
-
0
Other taxation and social security
1,989,831
781,113
-
-
Other creditors
2,388,445
4,543,626
-
0
-
0
Accruals and deferred income
2,562,198
2,326,503
-
0
-
0
14,043,538
13,871,030
9,900
9,900

Recourse debt factoring of £1,551,389 (2022: £3,918,987), included in other creditors is secured on the trade debtors of the group.

DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
-
0
41,667
-
0
-
0
Bank overdrafts
-
0
88,706
-
0
-
0
-
130,373
-
-
Payable within one year
-
0
130,373
-
0
-
0

On 27 April 2020 the group received a government Coronavirus Business Interruption Loan Scheme (CBILS) loan of £250,000. The government provides a guarantee for 80% of the loan and also provide business interruption payments whereby interest payments and any fees levied by the Lender are covered for the first year.

 

The loan was fully repayable after 36 months, by monthly instalments of £10,417 commencing 13 months after the balance sheet date, with an interest rate of 2.33% over the Bank of England base rate charged on the outstanding balance.

20
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
-
236,548
-
-
Movements on provisions:
Group
£
At 1 January 2023
236,548
Other movements
(236,548)
At 31 December 2023
-
21
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Assets
Assets
2023
2022
Group
£
£
Accelerated capital allowances
36,791
17,067
The company has no deferred tax assets or liabilities.
DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Deferred taxation
(Continued)
- 30 -
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 January 2023
(17,067)
-
Credit to profit or loss
(19,724)
-
Asset at 31 December 2023
(36,791)
-
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
230,972
274,546

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
10,000 Ordinary A shares of £1 each
10,000
10,000
100,000 Ordinary B shares of 10p each
10,000
10,000
20,000
20,000
24
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
144,698
124,262
-
-
Between two and five years
561
61,571
-
-
145,259
185,833
-
-
On 19 January 2022, the Group's directors agreed a 3 year extension to the lease agreement at Unit 5.06, Fifth Floor, The Loom, 14 Gower's Walk, London, E1 8PY.
DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
25
Related party transactions
Transactions with related parties

During the period, the company made purchases of £22,216 (2022: £218,109) from an entity of which a director is a shareholder.

 

Consulting charges borne directly by Interr Limited amounted to £923,927 (2022: £1,106,000) with an entity of which the ultimate controlling party is a shareholder. At the balance sheet date the company owed £nil (2022: £nil).

 

During the period, loans amounting to £nil (2022: £1.139 million) were made to directors of the company. £7,000 (2022: £1.004 million) of these loans were repaid during the year. £128,000 (2022: £135,000) was owed by one director at 31st December 2023.

 

During the period, the group paid £750,000 (2022: £1.25 million) in dividends to key management personnel.

26
Controlling party

Joachim Georg Ritter is the ultimate controlling party.

27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
973,050
1,504,276
Adjustments for:
Taxation charged
488,188
504,257
Finance costs
197,282
137,355
Investment income
(3,497)
(691)
Amortisation and impairment of intangible assets
12,002
18,002
Depreciation and impairment of tangible fixed assets
131,746
127,028
(Decrease)/increase in provisions
(236,548)
11,945
Movements in working capital:
Decrease/(increase) in debtors
167,564
(2,607,738)
Increase in creditors
251,967
2,364,013
Cash generated from operations
1,981,754
2,058,447
DARKSTORM TRADING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
28
Analysis of changes in net funds - group
1 January 2023
Cash flows
Exchange rate movements
31 December 2023
£
£
£
£
Cash at bank and in hand
497,591
(12,721)
223,938
708,808
Bank overdrafts
(88,706)
88,706
-
-
0
408,885
75,985
223,938
708,808
Borrowings excluding overdrafts
(41,667)
41,667
-
-
367,218
117,652
223,938
708,808
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