REGISTERED NUMBER: 12333251 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
DRYAD CREATIVE LIMITED |
REGISTERED NUMBER: 12333251 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
DRYAD CREATIVE LIMITED |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
For The Year Ended 30 June 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 17 |
DRYAD CREATIVE LIMITED |
COMPANY INFORMATION |
For The Year Ended 30 June 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
1 Rushmills |
Bedford Road |
Northampton |
Northamptonshire |
NN4 7YB |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
GROUP STRATEGIC REPORT |
For The Year Ended 30 June 2024 |
The directors present their strategic report of the company and the group for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
The Group delivered strong revenue growth for the 12 months to 30 June 2024, which was primarily driven |
by strong UK customer retention and increased market share penetration in international markets. |
Inflationary driven headwinds continued to put pressure on margins and overheads for the 12 months to 30 |
June 2024, however strong procurement effectiveness, operational efficiency gains and robust cost control |
mitigated the impact on profitability from continued operations. |
Strong cashflow growth for the period was achieved through further year on year working capital |
enhancements and strong profitability, whilst at the same time significantly reducing the level of AR linked |
short term borrowings. |
Whilst the economic climate remains a challenge with continued pressure on customer budgets and |
inflationary pressures on key overheads, the board of directors has accelerated investments in marketing, |
technology developments and operational processes to further advance business prosperity. |
KEY PERFORMANCE INDICATORS |
The Group's performance during the period was as follows: |
2024 (12 months | ) | 2023 (10 months | ) | 2022 (10 months | ) |
£ | £ | £ |
Turnover | 17,225,041 | 12,239,678 | 11,149,504 |
EBITDA | 1,921,132 | 1,008,575 | 318,806 |
Restructuring Costs | - | (137,000 | ) | - |
EBT | 1,336,997 | 342,093 | (121,046 | ) |
Headcount | 74 | 77 | 79 |
Cash flow | 220,140 | 941,772 | - |
Group debt | 3,491,710 | 4,585,045 | 4,790,493 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties facing the business continue to be the competitive nature of the market place in which the Group operates and the impact of Government spending cuts on the customer base. |
Financial risk management objectives and policies |
The Group uses financial instruments comprising borrowings, cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations. The main risks arising from the financial instruments are interest rate risk, liquidity risk and foreign currency risk. The directors review and agree policies for managing each of these risks and they are summarised below. The policies have remained unchanged from previous periods. |
Interest rate risk |
The Group finances its operations through a mixture of retained profits, bank borrowings and other borrowings. The company's exposure to interest fluctuations on its borrowings is managed by the use of both fixed and floating facilities. |
Liquidity risk |
The Group seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs and by investing cash assets safely and profitably. Short-term flexibility is achieved by overdraft facilities. |
Currency risk |
The Group is exposed to transaction foreign exchange risk. Transaction exposures are hedges when known, mainly using the forward hedge market. |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
GROUP STRATEGIC REPORT |
For The Year Ended 30 June 2024 |
ON BEHALF OF THE BOARD: |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
REPORT OF THE DIRECTORS |
For The Year Ended 30 June 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the Group in the period under review was that of wholesaling of arts and crafts materials, by mail order and via the internet. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 June 2024. |
FUTURE DEVELOPMENTS |
The directors continue to innovate, building on the group's existing customer portfolio and product range. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The group utilises various financial instruments including loans, cash and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these is to raise finance for the group's operations. The existence of these financial instruments exposes the group to a number of financial risks, which are described in more detail in the Strategic Report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
REPORT OF THE DIRECTORS |
For The Year Ended 30 June 2024 |
AUDITORS |
The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRYAD CREATIVE LIMITED |
Opinion |
We have audited the financial statements of Dryad Creative Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 June 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the 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 the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRYAD CREATIVE LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant so specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK. |
- We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance. |
- We assess the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets. |
- Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above. |
- We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRYAD CREATIVE LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
1 Rushmills |
Bedford Road |
Northampton |
Northamptonshire |
NN4 7YB |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
For The Year Ended 30 June 2024 |
Period |
3.9.22 |
Year ended | to |
30.6.24 | 30.6.23 |
Notes | £ | £ |
TURNOVER | 3 | 17,225,041 | 12,239,678 |
Cost of sales | 11,415,283 | 8,242,128 |
GROSS PROFIT | 5,809,758 | 3,997,550 |
Administrative expenses | 4,062,810 | 3,289,142 |
OPERATING PROFIT | 5 | 1,746,948 | 708,408 |
Interest receivable and similar income | 4,319 | 2,215 |
1,751,267 | 710,623 |
Interest payable and similar expenses | 6 | 414,270 | 368,530 |
PROFIT BEFORE TAXATION | 1,336,997 | 342,093 |
Tax on profit | 7 | 244,186 | 91,577 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,092,811 |
250,516 |
Profit attributable to: |
Owners of the parent | 1,092,811 | 250,516 |
Total comprehensive income attributable to: |
Owners of the parent | 1,092,811 | 250,516 |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
CONSOLIDATED BALANCE SHEET |
30 June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 1,626,709 | 1,768,222 |
Tangible assets | 10 | 147,134 | 205,770 |
Investments | 11 | - | - |
1,773,843 | 1,973,992 |
CURRENT ASSETS |
Stocks | 12 | 3,182,530 | 3,499,500 |
Debtors | 13 | 2,659,321 | 2,448,360 |
Cash at bank | 828,921 | 789,854 |
6,670,772 | 6,737,714 |
CREDITORS |
Amounts falling due within one year | 14 | 3,832,979 | 4,090,877 |
NET CURRENT ASSETS | 2,837,793 | 2,646,837 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 4,611,636 | 4,620,829 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(2,840,021 |
) |
(3,897,884 |
) |
PROVISIONS FOR LIABILITIES | 18 | (37,496 | ) | (45,600 | ) |
NET ASSETS | 1,734,119 | 677,345 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 100 | 100 |
Share premium | 20 | 246,707 | 246,707 |
Retained earnings | 20 | 1,487,312 | 430,538 |
SHAREHOLDERS' FUNDS | 1,734,119 | 677,345 |
The financial statements were approved by the Board of Directors and authorised for issue on 19 December 2024 and were signed on its behalf by: |
D W Edwards - Director |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
COMPANY BALANCE SHEET |
30 June 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 9,872 | 22,880 |
The financial statements were approved by the Board of Directors and authorised for issue on |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
For The Year Ended 30 June 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 3 September 2022 | 100 | 160,985 | 246,707 | 407,792 |
Changes in equity |
Total comprehensive income | - | 250,516 | - | 250,516 |
FX on consolidation | - | (13,917 | ) | - | (13,917 | ) |
Legal reserve | - | 32,954 | - | 32,954 |
Balance at 30 June 2023 | 100 | 430,538 | 246,707 | 677,345 |
Changes in equity |
Total comprehensive income | - | 1,092,811 | - | 1,092,811 |
FX on consolidation | - | (36,037 | ) | - | (36,037 | ) |
Balance at 30 June 2024 | 100 | 1,487,312 | 246,707 | 1,734,119 |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
For The Year Ended 30 June 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 3 September 2022 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 30 June 2023 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 30 June 2024 |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
CONSOLIDATED CASH FLOW STATEMENT |
For The Year Ended 30 June 2024 |
Period |
3.9.22 |
Year ended | to |
30.6.24 | 30.6.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,739,844 | 2,346,478 |
Interest paid | (414,270 | ) | (368,530 | ) |
Tax paid | (164,883 | ) | (242,540 | ) |
Net cash from operating activities | 1,160,691 | 1,735,408 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (2,351 | ) | (44,170 | ) |
Purchase of tangible fixed assets | (30,257 | ) | (19,691 | ) |
Interest received | 4,319 | 2,215 |
Net cash from investing activities | (28,289 | ) | (61,646 | ) |
Cash flows from financing activities |
Loan repayments in year | (912,262 | ) | (731,990 | ) |
Net cash from financing activities | (912,262 | ) | (731,990 | ) |
Increase in cash and cash equivalents | 220,140 | 941,772 |
Cash and cash equivalents at beginning of year |
2 |
573,608 |
(368,164 |
) |
Cash and cash equivalents at end of year |
2 |
793,748 |
573,608 |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
For The Year Ended 30 June 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
3.9.22 |
Year ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Profit before taxation | 1,336,997 | 342,093 |
Depreciation charges | 174,238 | 163,407 |
(Profit)/loss on disposal of fixed assets | (54 | ) | 4,471 |
FX on consolidation | (35,634 | ) | 9,140 |
Finance costs | 414,270 | 368,530 |
Finance income | (4,319 | ) | (2,215 | ) |
1,885,498 | 885,426 |
Decrease/(increase) in stocks | 316,970 | (687,943 | ) |
(Increase)/decrease in trade and other debtors | (210,961 | ) | 2,925,854 |
Decrease in trade and other creditors | (251,663 | ) | (776,859 | ) |
Cash generated from operations | 1,739,844 | 2,346,478 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 828,921 | 789,854 |
Bank overdrafts | (35,173 | ) | (216,246 | ) |
793,748 | 573,608 |
Period ended 30 June 2023 |
30.6.23 | 3.9.22 |
£ | £ |
Cash and cash equivalents | 789,854 | 448,784 |
Bank overdrafts | (216,246 | ) | (816,948 | ) |
573,608 | (368,164 | ) |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
For The Year Ended 30 June 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank | 789,854 | 39,067 | 828,921 |
Bank overdrafts | (216,246 | ) | 181,073 | (35,173 | ) |
573,608 | 220,140 | 793,748 |
Debt |
Debts falling due within 1 year | (562,262 | ) | (173,975 | ) | (736,237 | ) |
Debts falling due after 1 year | (3,806,537 | ) | 1,086,237 | (2,720,300 | ) |
(4,368,799 | ) | 912,262 | (3,456,537 | ) |
Total | (3,795,191 | ) | 1,132,402 | (2,662,789 | ) |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
For The Year Ended 30 June 2024 |
1. | STATUTORY INFORMATION |
Dryad Creative Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared using GBP as the functional currency. |
There are no changes to the accounting policies from the prior year. |
Basis of consolidation |
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 June 2024. |
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
The results of subsidiaries acquired or disposed of during the year are included in the Statement of Comprehensive Income from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group. |
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill. |
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full. |
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements. |
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Determining net realisable values of stocks - In determining the net realisable value of stocks, management takes into account the most reliable evidence available at the dates the estimates are made. |
Trade debtors - The directors carefully consider the recoverability of trade debtors based on their experience of customers' payment history and the likelihood of recovery. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, net of discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated Statement of Comprehensive Income over its useful economic life. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, being selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. |
Trade debtors |
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. |
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables. |
Trade creditors |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of the business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right., at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. |
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Borrowings |
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing. |
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. |
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. |
Share capital |
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. |
Going concern |
As at the point of authorising the accounts, and for the foreseeable future, the directors consider the |
going concern assumption to still be appropriate. |
The directors acknowledge that given the rapidly changing business and social environment, there are likely to be significant unknown factors which may present themselves. Such factors are considered by the directors to represent a general inherent level of risk in relation to the going concern assumption albeit not quantifiable at this time. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
Period |
3.9.22 |
Year ended | to |
30.6.24 | 30.6.23 |
£ | £ |
United Kingdom | 6,759,748 | 7,629,520 |
Europe | 1,545,987 | 1,120,065 |
Rest of the world | 8,919,306 | 3,490,093 |
17,225,041 | 12,239,678 |
4. | EMPLOYEES AND DIRECTORS |
Period |
3.9.22 |
Year ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Wages and salaries | 2,570,402 | 1,941,993 |
Social security costs | 227,122 | 164,990 |
Other pension costs | 35,171 | 24,479 |
2,832,695 | 2,131,462 |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
Period |
3.9.22 |
Year ended | to |
30.6.24 | 30.6.23 |
Directors | 2 | 2 |
Other departments | 72 | 75 |
Period |
3.9.22 |
Year ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Directors' remuneration | 287,587 | 207,046 |
Directors' pension contributions to money purchase schemes | 1,871 | 1,835 |
Information regarding the highest paid director is as follows: |
Period |
3.9.22 |
Year ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Emoluments etc | 123,000 | 123,058 |
Pension contributions to money purchase schemes | 1,871 | - |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
3.9.22 |
Year ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Other operating leases | 21,937 | 23,078 |
Depreciation - owned assets | 30,374 | 47,702 |
(Profit)/loss on disposal of fixed assets | (54 | ) | 4,471 |
Goodwill amortisation | 101,330 | 84,442 |
Computer software amortisation | 42,534 | 31,023 |
Auditors' remuneration | 21,805 | 14,653 |
Foreign exchange differences | 153,092 | 39,094 |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
3.9.22 |
Year ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Bank loan interest | 94,402 | 91,613 |
Interest payable | 319,868 | 276,917 |
414,270 | 368,530 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
3.9.22 |
Year ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Current tax: |
UK corporation tax | 252,290 | 83,601 |
Deferred tax | (8,104 | ) | 7,976 |
Tax on profit | 244,186 | 91,577 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
3.9.22 |
Year ended | to |
30.6.24 | 30.6.23 |
£ | £ |
Profit before tax | 1,336,997 | 342,093 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 20.810 %) |
334,249 |
71,190 |
Effects of: |
Expenses not deductible for tax purposes | 26,608 | 17,830 |
Capital allowances in excess of depreciation | - | (1,732 | ) |
Depreciation in excess of capital allowances | 6,861 | - |
Adjustments to tax charge in respect of previous periods | - | (19 | ) |
Deferred tax | (8,104 | ) | (541 | ) |
Other tax effects | - | (6,355 | ) |
Adjustment in respect of PY deferred tax | - | 11,204 |
Difference in overseas tax rates | (115,428 | ) | - |
Total tax charge | 244,186 | 91,577 |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 July 2023 | 5,578,404 | 132,745 | 5,711,149 |
Additions | - | 2,351 | 2,351 |
At 30 June 2024 | 5,578,404 | 135,096 | 5,713,500 |
AMORTISATION |
At 1 July 2023 | 3,889,560 | 53,367 | 3,942,927 |
Amortisation for year | 101,330 | 42,534 | 143,864 |
At 30 June 2024 | 3,990,890 | 95,901 | 4,086,791 |
NET BOOK VALUE |
At 30 June 2024 | 1,587,514 | 39,195 | 1,626,709 |
At 30 June 2023 | 1,688,844 | 79,378 | 1,768,222 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Short | Plant and | and | Computer |
leasehold | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2023 | 118,553 | 79,997 | 825,709 | 70,397 | 1,094,656 |
Additions | - | 12,310 | 17,332 | 615 | 30,257 |
Disposals | - | - | (66,144 | ) | - | (66,144 | ) |
Exchange differences | (2,158 | ) | - | 1,755 | - | (403 | ) |
At 30 June 2024 | 116,395 | 92,307 | 778,652 | 71,012 | 1,058,366 |
DEPRECIATION |
At 1 July 2023 | 55,283 | 74,592 | 692,099 | 66,912 | 888,886 |
Charge for year | (5,758 | ) | 1,408 | 33,821 | 903 | 30,374 |
Eliminated on disposal | - | - | (8,028 | ) | - | (8,028 | ) |
At 30 June 2024 | 49,525 | 76,000 | 717,892 | 67,815 | 911,232 |
NET BOOK VALUE |
At 30 June 2024 | 66,870 | 16,307 | 60,760 | 3,197 | 147,134 |
At 30 June 2023 | 63,270 | 5,405 | 133,610 | 3,485 | 205,770 |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2023 |
Additions |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 21 Mountain Road, Leicester, LE4 9HQ |
Nature of business: |
% |
Class of shares: | holding |
Registered office: DREC Warehouses Unit 9a, Jebel Ali Industrial Area 1, Dubai |
Nature of business: |
% |
Class of shares: | holding |
Dryad Creative Limited has full control and 100% allocation of any profits and distributions from Dryad General Trading LLC. |
Specialist Crafts Limited |
Registered office: Hamilton House, 21 Mountain Road, Leicester, LE4 9HQ. |
Nature of business: Sale of arts and crafts materials |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Specialist Crafts Leicester Limited |
Registered office: Hamilton House, 21 Mountain Road, Leicester, LE4 9HQ. |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
12. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Stocks | 2,399,917 | 2,453,962 |
Goods In Transit | 782,613 | 1,045,538 |
3,182,530 | 3,499,500 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Trade debtors | 2,012,676 | 1,747,597 |
Other debtors | 149,782 | 214,591 |
VAT | 23,802 | 59,815 |
Prepayments and accrued income | 473,061 | 426,357 |
2,659,321 | 2,448,360 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 35,173 | 216,246 |
Other loans (see note 16) | 736,237 | 562,262 |
Trade creditors | 2,028,655 | 2,520,154 |
Amounts owed to group undertakings | - | - |
Corporation tax | 134,368 | 46,961 |
Social security and other taxes | 102,404 | 74,189 |
Other creditors | 277,989 | 308,042 |
Accrued expenses | 518,153 | 363,023 |
3,832,979 | 4,090,877 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Other loans (see note 16) | 2,720,300 | 3,806,537 |
Employee end of service |
benefit | 119,721 | 91,347 | - | - |
2,840,021 | 3,897,884 |
Loans are secured on all the property and undertaking of the Group. |
Employee end of service benefits are attributable to subsidiary company Dubai General Trading LLC. |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 35,173 | 216,246 |
Other loans | 736,237 | 562,262 |
771,410 | 778,508 |
Amounts falling due between one and | two years: |
Other loans - 1-2 years | 562,881 | 586,237 | 462,881 |
Amounts falling due between two and | five years: |
Other loans - 2-5 years | 1,069,096 | 1,231,977 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Other loans more 5yrs instal | 1,088,323 | 1,988,323 | 1,088,323 | 1,988,323 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year | 416,270 | 358,784 |
Between one and five years | 1,432,384 | 1,655,075 |
In more than five years | 55,000 | 55,000 |
1,903,654 | 2,068,859 |
18. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 37,496 | 45,600 |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
18. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2023 | 45,600 |
Credit to Statement of Comprehensive Income during year | (8,104 | ) |
Balance at 30 June 2024 | 37,496 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | 0.01 | 100 | 100 |
20. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 July 2023 | 430,538 | 246,707 | 677,245 |
Profit for the year | 1,092,811 | 1,092,811 |
FX on consolidation | (36,037 | ) | - | (36,037 | ) |
At 30 June 2024 | 1,487,312 | 246,707 | 1,734,019 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 July 2023 | 485,495 |
Profit for the year |
At 30 June 2024 | 495,367 |
21. | PENSION COMMITMENTS |
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £35,171 (2023: £24,479). |
Contributions totalling £15,387 (2023: £12,962) were payable to the fund balance sheet date. |
DRYAD CREATIVE LIMITED (REGISTERED NUMBER: 12333251) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 30 June 2024 |
22. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
During the year, a total of key management personnel compensation of £ 331,823 (2023 - £ 213,840 ) was paid. |
23. | ULTIMATE CONTROLLING PARTY |
The group is owned and controlled by the directors of Dryad Creative Limited. |