Company registration number 05161268 (England and Wales)
DRUMMOND CENTRAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
DRUMMOND CENTRAL LIMITED
COMPANY INFORMATION
Directors
Daniel Appleby
Sharon Coull
Julie Drummond
Stephen Drummond
Company number
05161268
Registered office
70 Jesmond Road West
Newcastle upon Tyne
Tyne & Wear
NE2 4PQ
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
DRUMMOND CENTRAL LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
DRUMMOND CENTRAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Review of the business

Business Review and key performance indicators

 

The business has enjoyed a good year of results, strengthened its client base and increased investment in people.

 

The company’s key performance indicators are gross profit, profit before tax and profitability.

 

Gross profit was £8,260,771, an increase of 17.5% on prior year, this was in line with our latest business outlook and due to the phasing of the delivery of some key, high value projects.

 

Profit before tax was £4,579,742 and profitability, taking into account any exceptional non trading items, remains in line with business expectations.

Principal risks and uncertainties

Principal risks to the company include the following:

 

Key clients

The company continues to broaden and diversify its client base and mitigate any risk by developing new business relationships and working with clients across a range of industries.

 

Keeping in line with technological advancements

The company continues to invest time and resources into researching available technology and investing in the most appropriate solutions to further enhance the company’s capability in this area.

 

Economic environment

The risk covers both the client base and impact on their marketing budgets. Through demonstrating both results and the impact of projects delivered to clients, the company aims to continue to establish the value of investing in brand, marketing and advertising.

On behalf of the board

Julie Drummond
Director
19 November 2024
DRUMMOND CENTRAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company continued to that of a strategic creative agency providing a range of services from brand strategy through to the implementation of advertising and marketing campaigns.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Daniel Appleby
Sharon Coull
Julie Drummond
Stephen Drummond
Statement of directors' responsibilities

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

 

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

 

 

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

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

DRUMMOND CENTRAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
On behalf of the board
Julie Drummond
Director
19 November 2024
DRUMMOND CENTRAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DRUMMOND CENTRAL LIMITED
- 4 -
Opinion

We have audited the financial statements of Drummond Central Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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.

 

The comparative results were not audited, as there was no requirement to do so.

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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

The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Analytical review and substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team;

 

 

The risk of management override of controls was also considered an area of potential misstatement due to fraud. Audit procedures performed included testing of manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

DRUMMOND CENTRAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DRUMMOND CENTRAL LIMITED (CONTINUED)
- 6 -

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.

Nicholas Cunningham MSc BSc ACCA
Senior Statutory Auditor
For and on behalf of Robson Laidler Accountants Limited
27 November 2024
Accountants
Statutory Auditor
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
Tyne and Wear
England
NE2 1TJ
DRUMMOND CENTRAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
22,416,944
16,512,731
Cost of sales
(14,156,173)
(9,483,142)
Gross profit
8,260,771
7,029,589
Administrative expenses
(3,783,378)
(6,770,473)
Other operating income
-
0
1,387,006
Operating profit
5
4,477,393
1,646,122
Interest receivable and similar income
8
104,748
171,333
Amounts written off investments
9
(2,399)
104,797
Profit before taxation
4,579,742
1,922,252
Tax on profit
10
(1,156,362)
(363,325)
Profit for the financial year
3,423,380
1,558,927

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

DRUMMOND CENTRAL LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
76,478
75,574
Current assets
Debtors
14
6,286,097
2,221,268
Investments
15
-
0
131,754
Cash at bank and in hand
2,531,116
3,876,196
8,817,213
6,229,218
Creditors: amounts falling due within one year
16
(2,208,461)
(3,044,644)
Net current assets
6,608,752
3,184,574
Total assets less current liabilities
6,685,230
3,260,148
Provisions for liabilities
Deferred tax liability
17
16,375
14,673
(16,375)
(14,673)
Net assets
6,668,855
3,245,475
Capital and reserves
Called up share capital
19
96,660
96,660
Equity reserve
2,779,936
2,779,936
Profit and loss reserves
3,792,259
368,879
Total equity
6,668,855
3,245,475

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 19 November 2024 and are signed on its behalf by:
Julie Drummond
Director
Company registration number 05161268 (England and Wales)
DRUMMOND CENTRAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
Share capital
Equity reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
90,000
30,555
16,016,867
16,137,422
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
1,558,927
1,558,927
Issue of share capital
19
6,660
-
-
6,660
Dividends
11
-
-
(272,000)
(272,000)
Other movements
-
2,749,381
(16,934,915)
(14,185,534)
Balance at 30 June 2023
96,660
2,779,936
368,879
3,245,475
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
3,423,380
3,423,380
Balance at 30 June 2024
96,660
2,779,936
3,792,259
6,668,855
DRUMMOND CENTRAL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
24
(999,612)
7,303,741
Income taxes paid
(550,000)
(981,515)
Net cash (outflow)/inflow from operating activities
(1,549,612)
6,322,226
Investing activities
Purchase of tangible fixed assets
(61,187)
(39,945)
Proceeds from disposal of tangible fixed assets
577
-
0
Proceeds from disposal of investments
130,605
9,420,082
Repayment of loans
29,789
(71,671)
Interest received
104,748
99,313
Dividends received
-
0
61,564
Other income received from investments
-
0
25,968
Net cash generated from investing activities
204,532
9,495,311
Financing activities
Dividends paid
-
0
(272,000)
Net cash used in financing activities
-
(272,000)
Net (decrease)/increase in cash and cash equivalents
(1,345,080)
15,545,537
Cash and cash equivalents at beginning of year
3,876,196
5,265,574
Capital distributions to Employee Ownership Trust
-
0
(16,934,915)
Cash and cash equivalents at end of year
2,531,116
3,876,196
DRUMMOND CENTRAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information

Drummond Central Limited is a private company limited by shares incorporated in England and Wales. The registered office is 70 Jesmond Road West, Newcastle upon Tyne, Tyne & Wear, NE2 4PQ.

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.

1.2
Going concern

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

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.5
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.

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 basis
Fixtures, fittings and equipment
25% reducing balance basis
Computer equipment
33% straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

DRUMMOND CENTRAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
1.6
Impairment of fixed assets

At each reporting period end date, the company 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.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

DRUMMOND CENTRAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

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

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

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

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

DRUMMOND CENTRAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
Current tax

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

Deferred tax

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

1.11
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.

1.12
Retirement benefits

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

1.13
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.14
Leases

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

1.15
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.

DRUMMOND CENTRAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
4,712,387
3,795,100
Europe
17,704,557
12,717,631
22,416,944
16,512,731
2024
2023
£
£
Other revenue
Interest income
104,748
109,769
Royalty income
-
0
196
Dividends received
-
61,564
Commissions received
-
0
1,386,810
4
Exceptional item

Included within wages and salaries in the year to 30 June 2023 is £2,756,041 in relation to the exercise of EMI share options, this was considered to be an exceptional expense in the prior year. There has been no expenditure relating to this in the current year.

5
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
7,946
14,271
Depreciation of owned tangible fixed assets
58,581
58,613
Loss on disposal of tangible fixed assets
1,125
-
Impairment of intangible assets
-
0
236,195
Share-based payments
-
2,756,041
Operating lease charges
82,284
94,216
DRUMMOND CENTRAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
6
Employees

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

2024
2023
Number
Number
55
57

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,619,254
5,280,314
Social security costs
291,708
287,262
Pension costs
170,380
122,274
3,081,342
5,689,850
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
301,076
286,096
Company pension contributions to defined contribution schemes
123,127
46,242
424,203
332,338

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

The number of directors who are entitled to receive shares under long term incentive schemes during the year was 2 (2023 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
117,690
159,838
Company pension contributions to defined contribution schemes
63,294
1,321
DRUMMOND CENTRAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
98,904
40,497
Other interest income
5,844
58,816
Total interest revenue
104,748
99,313
Other income from investments
Dividends received
-
0
61,564
Gains on financial instruments measured at fair value through profit or loss
-
0
10,456
Total income
104,748
171,333
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
98,904
40,497
Interest on financial assets measured at fair value through profit or loss
-
0
10,456
Dividends from financial assets measured at fair value through profit or loss
-
0
61,564
9
Amounts written off investments
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Gain on financial assets held at fair value through profit or loss
-
0
234,595
Exchange gain on financial assets held at fair value through profit or loss
-
15,512
-
250,107
Other gains/(losses)
Loss on disposal of financial assets held at fair value through profit or loss
(1,149)
(104,679)
Amounts written off current loans
(1,250)
(40,631)
(2,399)
104,797
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,154,660
373,525
Deferred tax
Origination and reversal of timing differences
1,702
(10,200)
Total tax charge
1,156,362
363,325
DRUMMOND CENTRAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
(Continued)
- 18 -

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:

2024
2023
£
£
Profit before taxation
4,579,742
1,922,252
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
1,144,936
480,563
Tax effect of expenses that are not deductible in determining taxable profit
11,852
37,888
Tax effect of income not taxable in determining taxable profit
-
0
(54,706)
Double tax relief
-
0
(6,514)
Permanent capital allowances in excess of depreciation
(1,208)
-
0
Depreciation in excess of capital allowances
-
0
2,205
General provisions
(919)
670
Deferred tax
1,701
(10,200)
Mid year tax charge change
-
0
(86,581)
Taxation charge for the year
1,156,362
363,325
11
Dividends
2024
2023
£
£
Interim paid
-
0
272,000
12
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
514,697
Amortisation and impairment
At 1 July 2023 and 30 June 2024
514,697
Carrying amount
At 30 June 2024
-
0
At 30 June 2023
-
0
DRUMMOND CENTRAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
13
Tangible fixed assets
Leasehold improvements
Fixtures, fittings and equipment
Computer equipment
Total
£
£
£
£
Cost
At 1 July 2023
26,421
58,823
145,428
230,672
Additions
-
0
-
0
61,187
61,187
Disposals
(3,926)
(1,343)
(14,571)
(19,840)
At 30 June 2024
22,495
57,480
192,044
272,019
Depreciation and impairment
At 1 July 2023
20,822
26,795
107,481
155,098
Depreciation charged in the year
1,400
8,007
49,174
58,581
Eliminated in respect of disposals
(3,926)
(776)
(13,436)
(18,138)
At 30 June 2024
18,296
34,026
143,219
195,541
Carrying amount
At 30 June 2024
4,199
23,454
48,825
76,478
At 30 June 2023
5,599
32,028
37,947
75,574
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,185,585
1,080,823
Corporation tax recoverable
-
0
292,508
Other debtors
4,907,154
656,120
Prepayments and accrued income
193,358
191,817
6,286,097
2,221,268
15
Current asset investments
2024
2023
£
£
Unlisted investments
-
0
131,754
DRUMMOND CENTRAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
16
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
195,014
145,027
Amounts owed to group undertakings
-
0
103
Corporation tax
312,152
-
0
Other taxation and social security
53,107
62,491
Other creditors
534,892
2,217,241
Accruals and deferred income
1,113,296
619,782
2,208,461
3,044,644
17
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
16,375
14,673
2024
Movements in the year:
£
Liability at 1 July 2023
14,673
Charge to profit or loss
1,702
Liability at 30 June 2024
16,375
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
170,380
122,274

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

DRUMMOND CENTRAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
90,000
90,000
90,000
90,000
Ordinary B shares of £1 each
6,660
6,660
6,660
6,660
96,660
96,660
96,660
96,660
20
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
96,896
156,045
21
Related party transactions

During the year, the company rented premises on normal commercial terms from BW SIPP Trustees Limited for an amount of £59,166 (2023: £53,700). Mrs J Drummond and Mr S Drummond, Directors, are beneficiaries of the pension scheme.

22
Directors' transactions
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Sharon Coull -
-
31,039
(31,039)
-
31,039
(31,039)
-
23
Ultimate controlling party

The controlling party is Drummond Central Employee Ownership Trust.

DRUMMOND CENTRAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
24
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit for the year after tax
3,423,380
1,558,927
Adjustments for:
Taxation charged
1,156,362
363,325
Investment income
(104,748)
(171,333)
Loss on disposal of tangible fixed assets
1,125
-
Amortisation and impairment of intangible assets
-
0
236,195
Depreciation and impairment of tangible fixed assets
58,581
58,613
Other gains and losses
2,399
(104,797)
Equity settled share based payment expense
-
2,756,041
Movements in working capital:
(Increase)/decrease in debtors
(4,388,376)
1,269,744
(Decrease)/increase in creditors
(1,148,335)
1,337,026
Cash (absorbed by)/generated from operations
(999,612)
7,303,741
25
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
3,876,196
(1,345,080)
2,531,116
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