Registered number:
FOR THE YEAR ENDED 30 APRIL 2024
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DUFFY GROUP HOLDINGS LIMITED
COMPANY INFORMATION
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DUFFY GROUP HOLDINGS LIMITED
CONTENTS
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DUFFY GROUP HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
Duffy Group Holdings Limited is the holding company of the Duffy Group of Companies with business in the construction and property investment markets.
The construction business trade as Duffy Construction Limited and Duffy Contract Services Limited.
Duffy Construction Limited is a well established company in the construction industry that has been trading successfully for over 47 years. The principal activity of the company is providing ground works and concrete frames in the private and public sector for main developers and private clients.
Duffy Contract Service Limited's principal activity is provided site services, small works and project logistics packages to main contractors throughout the UK.
City & Southern Limited and City & Southern Properties Limited are mainly involved in property investment and development.
The Group's overall objective is to deliver shareholder value, through profitable contract work whilst managing risk carefully through prudent management of all aspects of the business (building, environmental, health & safety, legal and financial etc). The Group's policy is to be selective when tendering to enable risk to be mitigated on projects rather than carrying out unprofitable work by chasing turnover. This has allowed the margins to be maintained in the year under review despite challenging economic conditions and is part of the overall risk management strategy of the Group.
The Group has a wide range of competitors. The Group is not dependent on a narrow product and work is carried out for a diverse group of clients. No supplier, customer or technical developments will render any product obsolete.
The Group is not experiencing any fundamental market or technology changes to which it may be unable to adapt. Neither is it subject normally to any externally forced reduction in operations as consequence of law or regulation, albeit health & safety, quality and environmental issues provided a continuing challenge.
The results of the Group are set on page 11. In the year to 30 April 2024, the Group recorded a loss for the financial year of £568,449 (2023: £762,848).
The main KPIs used are turnover and gross profit. Group turnover was £15.9 million for the year ended 30 April 2024 compared to £22.8 million in 2023. Gross profit was £2.78 million (17.5%) compared to £2.92 million (12.8%) in 2023.
Trading remains very difficult with the sector experiencing survival challenges. Uncertainty within the market has led us to employ our standard risk adverse attitude in more extremes and turn away opportunities thus reducing our turnover which has reflected on our financial performance. The year saw positive results from all our projects, however a £510k impact on due to client going into administration in April ‘24. Duffy Construction Limited remains the dominant revenue source, contributing 77% to the Group’s turnover. Duffy Contract Services and the property divisions contributed 22% and 1%, respectively. Strategic recruitment and skilled personnel enhancements have contributed to this year’s performance, positioning the Group for continued success in the competitive construction market.
The Group has worked hard to maintain and improve its statement of financial position strength, in order to facilitate planned investment and growth. Shareholders' funds were £19.1 million compared with £19.6 million in 2023. The directors remain satisfied with the Group's financial position at the year end. The cash position at the reporting date was £2,224,536 (2023: £547,919), post year end the cash position has improved which will be used to support the continued growth of the business.
Duffy Group Holdings Limited is well positioned for future growth and is adapting the business for the challenging years ahead.
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DUFFY GROUP HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
The construction industry faces challenges due to several evolving factors influencing market conditions and impacting project timelines.
The Group operates in several markets, which has helped to spread our risk, with property units continuing to outperform trading businesses during the current financial year. Recent changes include political uncertainty surrounding the anticipated UK general election, where developers and investors await clarity on government priorities. This has caused delays in decision-making for infrastructure and public sector projects. Rising costs due to persistent inflation and increased interest rates have also added pressure, making financing more expensive and reducing the viability of some new projects. The implementation of the Building Safety Act 2022 has further introduced higher compliance costs and complexity for projects involving residential or high-risk structures, causing some delays in project starts. Labour shortages remain a significant challenge, contributing to operational delays and increasing costs across the industry. Additionally, backlogs in projects starts from previous periods, influenced by design revisions, material availability, and regulatory compliance, and continue to slow overall activity levels. In delay terms only no impact on our works. The Group has undertaken a comprehensive review of its operations to ensure that the going concern assumption is valid and that there are no material uncertainties. This involved cash flow forecasts through April 2025. The directors considered a number of operational, market, economic, and financial factors in their assessment. The group orderbook for the year to April 2025 continues to develop and shows a recovery with an even wider client base than in recent years. The Group maintains a positive relationship with its supply chain benefiting from their ongoing support. A meticulous approach to working capital management remains a cornerstone, assuring the preservation or enhancement of liquidity in our forecasts, even when considering adverse conditions.
The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to board approval and ongoing review by management. Compliance with regulation, legal and ethical standards is a priority for the Group.
Tenders are reviewed prior to acceptance to identify risk and ensure it is at an acceptable level or can be managed to an acceptable level.
We have built up solid relationships with our existing clients. The Group looks to spread its risks by actively engaging with new and existing clients together with the entire supply chain and indeed new suppliers.
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DUFFY GROUP HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
Risk management
Market risk
Market risk emanates from economic downturns. The board adheres to a policy that emphasises the meticulous selection and management of projects we undertake through the implementation of robust financial and operational controls.
Safety, Health, Environmental and Quality (SHEQ)
SHEQ is at the forefront of our thinking in running the business, both on site and in the office. Our SHEQ team keep risks in this area under constant review and ongoing investment in this area has helped to ensure that risks are minimised and controlled.
Management and employees
The Group employs high calibre staff across all levels of our operation. Many of our staff have been with the Group for ten plus years. The risk is managed by ensuring all our knowledge base is shared throughout the business. All staff are provided with the opportunity for internal and external training. As staff have joined, appropriate inductions, training and reviews ensure the same professionalism is maintained.
Financial risk management, objectives and policies
The Group's operations expose it to various financial risks including credit risk, liquidity risk and interest rate risk.
Credit risk
New credit customers are assessed and approved as part of the tender process. Existing customers are monitored for signs of potential credit risk.
Liquidity risk
The liquidity risk is managed by maintaining a balance between continuity of funding and flexibility through agreed payment policy. Strict payment terms are negotiated with our clients along with appropriate short term facilities. Given that the majority of our clients are blue-chip companies, we typically do not encounter issues related to bad debt.
Interest rate cash flow risk
The Group's hire purchase facilities are at a fixed rate, our loans with Handelsbanken are at variable rates which are kept under close review to ensure that the Group's performance is not significantly impacted by interest rate rises.
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DUFFY GROUP HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
Our Accident Frequency Rate of zero underlines the Group's commitment to providing safe places and safe systems of work for employees and contractors and the high quality of our health and safety training. The directors consider this area extremely important, and the business has continued to invest in this area.
The Group continues to strive to improve its safety, health and environmental standards and performance. Achieving a zero RIDDOR is our reward for this investment.
These are monitored regularly throughout the year and reviewed in response to performance, changes in legislation and evolving industry best practice.
The Group recognises the importance of managing and promoting health and safety in the workplace to ensure robust controls are in place to control risk. Instruction and training is provided to all staff, and leadership and commitment are shown at senior management level.
The Group has achieved accreditation from, or is a member of, the following:
- Acclaim SSIP accreditation - Constructionline – Gold Member - Members of CONSTRUCT – The Concrete Structures Group - The Concrete Society members - Members of ROSPA - Goods vehicle operator's license (standard national) - Certificate of registration under the waste regulations 2011 - upper tier waste carrier/dealer - ISO9001:2015 - Member of the Supply Chain Sustainability School - Member of the Considerate Constructors Scheme - Member of the Road Haulage Association - Construction Plant-hire Association - GOLD Member of fleet operators recognition scheme
This report was approved by the board and signed on its behalf.
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DUFFY GROUP HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
The directors present their report and the financial statements for the year ended 30 April 2024.
The directors are responsible for preparing the group strategic report, the directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements 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 Group will continue in business.
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 the Group and to 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.
The loss for the year, after taxation, amounted to £568,449 (2023: £762,848).
The directors do not propose the payment of a final dividend (2023: £Nil).
The directors who served during the year were:
The Group has chosen, in accordance with s414C(11) of the Companies Act, to set out in the Company and Group's strategic report information which would otherwise be required by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008' to be contained in the directors' report. Information on principal risks and uncertainties, and future developments has been included in the strategic report.
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DUFFY GROUP HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
There have been no significant events affecting the Group since the year end.
During the year, Menzies LLP resigned as auditors to the Company and Cooper Parry Group Limited were appointed to fill the resulting vacancy. Cooper Parry Group Limited have indicated its willingness to be reappointed for another term and appropriate arrangements have been put in place for it to be deemed reappointed as auditor in the absence of an annual general meeting.
This report was approved by the board and signed on its behalf.
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DUFFY GROUP HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUFFY GROUP HOLDINGS LIMITED
We have audited the financial statements of Duffy Group Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 April 2024, which comprise the consolidated statement of comprehensive income, the consolidated statement of financial position, the company statement of financial position, the consolidated statement of changes in equity, the company statement of changes in equity and the consolidated statement of cash flows. and the related notes, 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).
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 or 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.
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DUFFY GROUP HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUFFY GROUP HOLDINGS LIMITED (CONTINUED)
The other information comprises the information included in the annual report other than the financial statements and our auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the group strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the group strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 directors' report.
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DUFFY GROUP HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUFFY GROUP HOLDINGS LIMITED (CONTINUED)
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 auditors' 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 Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our assessment focused on key laws and regulations the Group has to comply with and areas of the financial statements we assessed as being more susceptible to misstatement. These key laws and regulations included, but were not limited to, compliance with the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant tax legislation.
We are not responsible for preventing irregularities. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙we identified the laws and regulations applicable to the Group through discussions with directors and other management, and from our commercial knowledge and experience;
∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where applicable; and
∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
∙tested a sample of journal entries to identify unusual transactions;
∙assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias, in particular the Group’s assessment over debtor recoverability;
∙investigated the rationale behind significant or unusual transactions; and
∙reviewed nominals of certain nominal codes for indication of any management override.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙agreeing financial statement disclosures to underlying supporting documentation;
∙reading the minutes of meetings of those charged with governance;
∙enquiring of management as to actual and potential litigation and claims; and
∙reviewing correspondence with HMRC and associated parties.
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DUFFY GROUP HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUFFY GROUP HOLDINGS LIMITED (CONTINUED)
Auditor's responsibilities for the audit of the financial statements (continued)
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 auditors' 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 auditors' 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.
for and on behalf of
Statutory Auditor
New Derwent House
69-73 Theobalds Road
WC1X 8TA
Date:
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DUFFY GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
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DUFFY GROUP HOLDINGS LIMITED
REGISTERED NUMBER: 11325718
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 37 form part of these financial statements.
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DUFFY GROUP HOLDINGS LIMITED
REGISTERED NUMBER: 11325718
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 APRIL 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 37 form part of these financial statements.
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DUFFY GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
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DUFFY GROUP HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
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DUFFY GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
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DUFFY GROUP HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
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DUFFY GROUP HOLDINGS LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 APRIL 2024
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Duffy Group Holdings Limited is a private company incorporated and domiciled in the United Kingdom and registered in England and Wales. The address of its registered office and principal place of business is provided on the Company information page and its principal activities are set out in the strategic report.
The financial statements are prepared in Sterling (£) which is the functional currency of the Group. The financial statements are for the year ended 30 April 2024 (2023: 30 April 2023).
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 May 2015.
The merger method of accounting is applied to group reconstructions as if entities had always been combined. The total comprehensive income, assets and liabilities of the entities are amended where necessary, to align the accounting policies. The carrying values of the entities' assets and liabilities are not adjusted to fair value. Any difference between the nominal value of the shares issued plus the fair value of other consideration and the nominal value of shares received is taken to other reserves in equity. Any existing balances on the share premium account or capital redemption reserve of the legal subsidiary are shown as a movement on other reserves.
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
In preparing the separate financial statements of the Parent company, advantage has been taken of
the following disclosure exemptions available in FRS 102:
∙No cash flow statement has been presented for the Parent company;
∙Disclosures in respect of the Parent company's financial instruments have not been presented as equivalent disclosures have been provided in respect of the Group as a whole;
∙No disclosure has been given for the aggregate remuneration of the key management personnel of the Parent company as their remuneration is included in the totals for the Group as a whole; and
∙The requirements of Section 33 Related Party Disclosures paragraph 31.1A.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of turnover can be measured reliably;
∙it is probable that the Group will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Long-term contracts Attributable profit is recognised as the difference between recorded turnover and related costs and therefore all foreseeable losses on existing contracts are provided in full. Turnover also includes the amount of rent receivable in the year which is recognised as it falls due.
The directors have assessed the group’s balance sheet position at the year end and its expected trading result for the current year. They are confident that the group will continue as a going concern.
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and rewards of ownership of the asset have passed to the Group, are capitalised in the statement of financial position and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the statement of financial position as a liability.
The interest element of the rental obligations is charged to the statement of comprehensive income over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Repairs and maintenance are charged to the statement of comprehensive income during the period in which they are incurred. At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the consolidated statement of comprehensive income.
Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Group. Ongoing repairs and maintenance are expensed as incurred.
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Other fixed asset investments, which have been classified as fixed asset investments as the Company intends to hold them on a continuing basis, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the consolidated statement of comprehensive income. The carrying values of investments are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. Any impairment charges are written off against the cost as relevant. In the consolidated financial statements, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The consolidated statement of comprehensive income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the consolidated statement of financial position, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. Any premium on acquisition is dealt with in accordance with the goodwill policy.
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans from banks and other third parties loans to related parties and investments in ordinary shares.
All financial assets and liabilities are initially measured at transaction price and subsequently measured at amortised cost.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the reporting date.
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. The estimates and judgements that have the most significant effect on the accounts included in these financial statements are as follows:
Page 24
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Page 25
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Page 26
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Page 27
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
11.Taxation (continued)
There were no factors that may affect future tax credits.
Page 28
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Page 29
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Page 30
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
The valuation of the freehold investment property was made by the directors, on an open market value for existing use basis.
Page 31
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
14.Investment property (continued)
The valuation of the freehold investment property was made by the directors, on an open market value for existing use basis.
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
16.Debtors (continued)
Page 33
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Page 34
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Capital redemption reserve
Profit and loss account
Page 35
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
In the year ended 30 April 2022, HMRC issued an assessment in respect of an alleged de-grouping charge on land acquired in a prior period by City & Southern Limited. The amount of corporation tax charged by the assessment is £2,286,115, which is noted as a contingent liability. Having taken appropriate professional tax advice before and after the transactions concerned, and having received further professional tax advice following receipt of the assessment, the Group has appealed the assessment and expects the appeal to be upheld with the result that no tax will be paid.
The Group operates a defined contribution 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 £29,843 (2023: £27,096).
Contributions totalling £8,158 (2023: £8,965) were payable to the fund at the reporting date and are included within other creditors.
Page 36
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DUFFY GROUP HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Included within other debtors is an amount owed to the Group by J B Duffy of £9,672,971 (2023: £8,792,567).
The movement in the year related to net expenditure paid on behalf of J B Duffy of £880,405 (2023: £6,241,720) and interest recievable of £203,806 (2023: £120,494) on outstanding advances less a reimbursement from J B Duffy to the Group of £Nil (2023: £36,801).
The amount owed to the Group by J B Duffy is unsecured, attracts interest at the official HMRC rate for beneficial loan arrangements, and is repayable on demand.
J B Duffy is the ultimate controlling party of Duffy Group Holdings Limited, the ultimate parent company, through his controlling shareholding in the Company.
Page 37
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