REGISTERED NUMBER: 12572528 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
DELENCO HOLDINGS LIMITED |
REGISTERED NUMBER: 12572528 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
DELENCO HOLDINGS LIMITED |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Financial Statements | 14 |
DELENCO HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 APRIL 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Shahid Hameed FCA FCCA |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
34-40 High Street |
Wanstead |
London |
E11 2RJ |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their strategic report of the company and the group for the year ended 30 April 2024. |
REVIEW OF BUSINESS |
The directors are pleased to report a very successful year for the business in terms of revenue growth and profits. |
Turnover in the year increased by 30.24% due to increased production capacity. However, increased costs, particularly in relation to raw material and food costs, led to a fall in gross profit margins. |
The group continued to service a diverse and extensive customer base, ranging from cruise lines to large catering organisations, schools, wholesale distributors and catering butchers (who supply hotels, restaurants and canteens), plus numerous bespoke clients. |
Although the product range remains focused on fresh sausage made from the finest cuts of meat and seasoned accordingly, the group has seen significant growth in demand for its range of meat alternative products. |
The group's key performance indicators are as follows: |
2024 | 2023 |
£ | £ |
Turnover | 20,986,936 | 16,113,642 |
Gross Profit | 6,426,359 | 5,184,584 |
Gross Profit Margin | 30.62% | 32.18% |
Profit Before Tax | 4,394,462 | 3,393,471 |
The net assets of the group are £9,556,826 (2023: £6,419,614). This reflects the solid position of the group from a solvency and liquidity point of view, and this strong balance sheet is the foundation on which the group can continue to grow and prosper. |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the nature of the group's strategy are subject to a number of risks. |
The directors have set out below the principal risks facing the business. The directors are of the opinion that a thorough risk management process is adopted which involves a formal review of all risks identified below. Where possible, processes are in place to mitigate such risks. |
Changing Eating Habits |
In recent years there has been a steady increase in the number of consumers reducing their consumption of meat, through veganism, vegetarianism or simply cutting down. Although the group has not seen any negative impact on its business as the result of this shift, this does represent a risk to the group in the medium to longer term. The focus of the business on high quality, fresh produce, as well as the branching out into meat free products, helps mitigate against this risk. |
Credit Risk |
As with most businesses the group is exposed to the credit risk of customers and their ability to pay debts on a timely basis. The directors have continued to be prudent in status checks for new and existing customers, keeping debtor days as low as possible and limiting the dominance of any single customer in the overall turnover of the group. |
Price Risk and Competition |
The market in which the group operates in highly competitive. As a result, the group is subject to a high level of price sensitivities and ongoing pressures on margins as direct costs and overheads costs increase. Policies of assessing our pricing strategy, maintaining strong relationships with customers and suppliers and ongoing market research are in place to mitigate such risks. |
Liquidity risk |
The group benefits from the very strong cash flows generated from operating activities, that have enabled the directors to re-invest profits into the business. The directors do however monitor cash flow forecasts in order to further manage liquidity risk. |
Regulatory Risk |
Due to the nature of the group's operations there are a number of operational risks it is exposed to, including non-compliance with Food Hygiene, Environmental and Health and Safety Legislation. The directors conduct regular appraisals of compliance in this area and review operational procedures to ensure compliance. |
Wages Cost Inflation |
The group is affected by wage cost inflation and pressures, increase in National Minimum Wage and Employer National Insurance, within the labour market. The group monitors the market to ensure compliance with labour market regulations, and maintains employment policies, remuneration and benefits packages that are designed to be competitive with other companies and recognise the value and contribution provided by employees, as well as providing colleagues with fulfilling career opportunities which offer progression. The group regularly reviews pay and benefits. As with most UK based employers there remain ongoing challenges in terms of recruiting and retaining sufficiently capable staff. |
Other inflationary factors |
The group is also subject to inflationary pressures across its cost base, particularly in the areas of fuel costs and energy. |
With these risks and uncertainties in mind, any plans for the future development of the business may be subject to unforeseen future events outside of our control; hence, we are constantly assessing our plans in line with the current environment. |
ON BEHALF OF THE BOARD: |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 April 2024. |
PRINCIPAL ACTIVITIES |
The principal activity of the company in the year under review was that of a holding company. |
The principal activity of the subsidiary company is to manufacture, wholesale and retail sales of meat and poultry products. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 April 2024 was £150,000 (2023: £1,050,000). |
FUTURE DEVELOPMENTS |
The directors are confident that continued focus on the key management policies will strengthen the financial position of the group during the ensuing year. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, THP Limited, 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 |
DELENCO HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Delenco 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, 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 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 April 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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DELENCO HOLDINGS LIMITED |
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: |
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 the directors and other management, and from our commercial knowledge and experience of the sector in which the group operates; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental, food hygiene and health and safety legislation; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; 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: |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
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; |
- enquiring of management as to actual and potential litigation and claims; and |
- reviewing correspondence with HMRC and any other relevant regulators as required. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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 |
DELENCO HOLDINGS 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 |
Chartered Accountants |
and Statutory Auditors |
34-40 High Street |
Wanstead |
London |
E11 2RJ |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 20,986,936 | 16,113,642 |
Cost of sales | 14,560,577 | 10,929,058 |
GROSS PROFIT | 6,426,359 | 5,184,584 |
Distribution costs | 1,475,179 | 1,257,122 |
Administrative expenses | 649,909 | 613,000 |
2,125,088 | 1,870,122 |
4,301,271 | 3,314,462 |
Other operating income | 65,160 | 88,180 |
OPERATING PROFIT | 5 | 4,366,431 | 3,402,642 |
Interest receivable and similar income | 37,249 | 3,981 |
4,403,680 | 3,406,623 |
Interest payable and similar expenses | 6 | 9,218 | 13,152 |
PROFIT BEFORE TAXATION | 4,394,462 | 3,393,471 |
Tax on profit | 7 | 1,107,250 | 685,268 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
3,287,212 |
2,708,203 |
Profit attributable to: |
Owners of the parent | 3,287,212 | 2,708,203 |
Total comprehensive income attributable to: |
Owners of the parent | 3,287,212 | 2,708,203 |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
CONSOLIDATED BALANCE SHEET |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 1,052,732 | 1,072,190 |
Investments | 11 | - | - |
1,052,732 | 1,072,190 |
CURRENT ASSETS |
Stocks | 12 | 373,179 | 511,337 |
Debtors | 13 | 5,612,465 | 5,240,268 |
Cash at bank and in hand | 5,342,928 | 1,838,615 |
11,328,572 | 7,590,220 |
CREDITORS |
Amounts falling due within one year | 14 | 2,165,988 | 1,578,758 |
NET CURRENT ASSETS | 9,162,584 | 6,011,462 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
10,215,316 |
7,083,652 |
PROVISIONS FOR LIABILITIES | 17 | 658,490 | 664,038 |
NET ASSETS | 9,556,826 | 6,419,614 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 300 | 300 |
Retained earnings | 19 | 9,556,526 | 6,419,314 |
SHAREHOLDERS' FUNDS | 9,556,826 | 6,419,614 |
The financial statements were approved by the Board of Directors and authorised for issue on 29 January 2025 and were signed on its behalf by: |
R G A Barber - Director |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
COMPANY BALANCE SHEET |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 18 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | - | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 May 2022 | 300 | 4,761,111 | 4,761,411 |
Changes in equity |
Dividends | - | (1,050,000 | ) | (1,050,000 | ) |
Total comprehensive income | - | 2,708,203 | 2,708,203 |
Balance at 30 April 2023 | 300 | 6,419,314 | 6,419,614 |
Changes in equity |
Dividends | - | (150,000 | ) | (150,000 | ) |
Total comprehensive income | - | 3,287,212 | 3,287,212 |
Balance at 30 April 2024 | 300 | 9,556,526 | 9,556,826 |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 May 2022 |
Changes in equity |
Balance at 30 April 2023 |
Changes in equity |
Balance at 30 April 2024 |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 22 | 4,241,047 | 3,096,593 |
Interest paid | (9,218 | ) | (13,152 | ) |
Tax paid | (420,492 | ) | (734,908 | ) |
Net cash from operating activities | 3,811,337 | 2,348,533 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (194,273 | ) | (391,102 | ) |
Sale of tangible fixed assets | - | 15,500 |
Interest received | 37,249 | 3,981 |
Net cash from investing activities | (157,024 | ) | (371,621 | ) |
Cash flows from financing activities |
Equity dividends paid | (150,000 | ) | (1,050,000 | ) |
Net cash from financing activities | (150,000 | ) | (1,050,000 | ) |
Increase in cash and cash equivalents | 3,504,313 | 926,912 |
Cash and cash equivalents at beginning of year |
23 |
1,838,615 |
911,703 |
Cash and cash equivalents at end of year |
23 |
5,342,928 |
1,838,615 |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | STATUTORY INFORMATION |
Delenco Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on a going concern basis and under the historical cost convention. |
Basis of consolidation |
The consolidated financial statements represent the results of the company and its subsidiaries, all of whom are 100% owned, made up to 30 April 2024. All accounting policies as detailed below are applied consistently across the group. |
The company has taken exemption from presenting its own cashflow statement. |
Related party exemption |
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. |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
a) Critical judgements in applying the entity's accounting policies |
There are no specific judgements, apart from those involving estimates as detailed below, that management has made in the process of applying the entity's accounting policies that have a significant effect on the amounts recognised in the financial statements. |
b) Critical accounting estimates and assumptions |
The group makes estimates and assumptions concerning the future. The resulting accounting estimates can differ from the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are addressed below. |
(i) Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
(ii) Provision for dilapidations |
The group makes an estimate for the expected costs of dilapidations in relation to leasehold property. Provisions are made in line with the criteria contained within FRS102 Section 18 and on the basis of all available evidence at the time. The management obtains quotations from the building contractors to assist them with this process. |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
3. | ACCOUNTING POLICIES - continued |
Revenue recognition |
Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied, net of returns, discounts and value added taxes. |
Revenue is recognised when goods are delivered to the customer, such that the risks and rewards of ownership have passed to them. |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Items costing less than £1,000 are not capitalised, but written off to the profit and loss account as incurred. |
Stocks |
Stocks are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for impairment of obsolete or slow moving items. Stocks are recognised as an expense in the period in which the related revenue is recognised. |
Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties, transport and handling directly attributable to bringing the stock to its present location and condition. |
Financial instruments |
The company has chosen to adopt Sections 11 and 12 of FRS102 in respect of financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently carried at this value less any provision for impairment. |
Cash and cash equivalents |
Cash and cash equivalents in the balance sheet represent cash at bank and in hand. |
Short-term debtors and creditors |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in profit or loss under operating expenses. |
The carrying value of all short-term financial assets and liabilities are measured at amortised cost. |
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. |
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. |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
3. | ACCOUNTING POLICIES - continued |
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. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 3,291,649 | 2,880,501 |
Social security costs | 342,983 | 305,768 |
Other pension costs | 42,697 | 33,937 |
3,677,329 | 3,220,206 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Operations | 85 | 81 |
Management and admin | 7 | 7 |
The average number of employees by undertakings that were proportionately consolidated during the year was 92 (2023 - 88 ) . |
2024 | 2023 |
£ | £ |
Directors' remuneration | 99,996 | 99,996 |
The directors of the group are also its "key management" for the purposes of disclosure under FRS 102. |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 148,349 | 129,022 |
Depreciation - owned assets | 213,731 | 215,169 |
Profit on disposal of fixed assets | - | (8,392 | ) |
Auditors' remuneration | 14,280 | 13,230 |
Foreign exchange differences | - | 48 |
Auditors' remuneration for non-audit work | 5,785 | 7,680 |
Operating leases | 148,270 | 148,270 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
HMRC interest | 9,218 | 13,152 |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 1,112,798 | 616,602 |
Deferred tax | (5,548 | ) | 68,666 |
Tax on profit | 1,107,250 | 685,268 |
UK corporation tax has been charged at 25 % (2023 - 19.49 %). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 4,394,462 | 3,393,471 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19.493 %) |
1,098,616 |
661,489 |
Effects of: |
Expenses not deductible for tax purposes | 221 | 122 |
Capital allowances in excess of depreciation | - | (45,009 | ) |
Depreciation in excess of capital allowances | 13,961 | - |
Movement on deferred tax | (5,548 | ) | 68,666 |
Total tax charge | 1,107,250 | 685,268 |
Deferred tax has been provided at 25.00% (2023: 25.00%). |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim | 150,000 | 1,050,000 |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
10. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 May 2023 | 345,362 | 2,275,373 | 14,428 |
Additions | 46,000 | 147,523 | - |
At 30 April 2024 | 391,362 | 2,422,896 | 14,428 |
DEPRECIATION |
At 1 May 2023 | 152,735 | 1,432,836 | 11,378 |
Charge for year | 33,647 | 171,018 | 458 |
At 30 April 2024 | 186,382 | 1,603,854 | 11,836 |
NET BOOK VALUE |
At 30 April 2024 | 204,980 | 819,042 | 2,592 |
At 30 April 2023 | 192,627 | 842,537 | 3,050 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 May 2023 | 101,090 | 14,751 | 2,751,004 |
Additions | - | 750 | 194,273 |
At 30 April 2024 | 101,090 | 15,501 | 2,945,277 |
DEPRECIATION |
At 1 May 2023 | 68,657 | 13,208 | 1,678,814 |
Charge for year | 8,108 | 500 | 213,731 |
At 30 April 2024 | 76,765 | 13,708 | 1,892,545 |
NET BOOK VALUE |
At 30 April 2024 | 24,325 | 1,793 | 1,052,732 |
At 30 April 2023 | 32,433 | 1,543 | 1,072,190 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
11. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Unit 6 Heybridge Way, Lea Bridge Road, Leyton, London, E10 7NQ |
Nature of business: |
% |
Class of shares: | holding |
The subsidiary has an interest in a joint venture LLP, representing the original loan made by the subsidiary to that entity. The subsidiary recognised it's profit share from the LLP on a receivable basis. |
12. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Raw materials and finished |
goods | 373,179 | 511,337 |
373,179 | 511,337 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Trade debtors | 2,163,025 | 1,703,425 |
Other debtors | 971 | 971 |
Amount owed by related company | 3,342,399 | 2,543,993 |
Amount owed by joint venture | 4,917 | 826,138 |
VAT | 30,464 | 97,137 |
Prepayments | 70,689 | 68,604 |
5,612,465 | 5,240,268 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Trade creditors | 971,357 | 1,056,091 |
Amounts owed to participating interests | - | 1,194 |
Corporation tax | 1,122,060 | 429,754 |
Social security and other taxes | 53,056 | 71,672 |
Accrued expenses | 19,515 | 20,047 |
2,165,988 | 1,578,758 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 211,634 | 254,495 |
Between one and five years | 114,644 | 326,684 |
326,278 | 581,179 |
The non-cancellable operating leases relate to premises and commercial vehicle hire costs. |
16. | SECURED DEBTS |
A limited personal guarantee has been given by R G Barber for £40,000 towards the bank overdraft facility. |
17. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 200,990 | 206,538 |
Other provisions |
Dilapidations provision | 457,500 | 457,500 |
Aggregate amounts | 658,490 | 664,038 |
Group |
Deferred |
tax |
£ |
Balance at 1 May 2023 | 206,538 |
Credit to Statement of Comprehensive Income during year | (5,548 | ) |
Balance at 30 April 2024 | 200,990 |
The dilapidations provision is in respect of anticipated costs required to restore the premises to its former condition, as required under the lease. The lease expires in 2030. |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 300 | 300 |
19. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 May 2023 | 6,419,314 |
Profit for the year | 3,287,212 |
Dividends | (150,000 | ) |
At 30 April 2024 | 9,556,526 |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
19. | RESERVES - continued |
Company |
Retained |
earnings |
£ |
Profit for the year |
At 30 April 2024 |
20. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £150,000 (2023: £1,050,000) were paid to a director, a related trust and a related company. |
Other related parties |
2024 | 2023 |
£ | £ |
Sales | 10,500 | 4,700 |
Purchases | 8,373 | 9,202 |
Share of (loss)/profit from joint venture | (14,543 | ) | 7,679 |
Amount due from related parties | 3,347,316 | 3,370,131 |
Amount due to related parties | - | 1,194 |
The above entities are related parties by virtue of the directorships held by R G Barber and/or shareholdings held by the company. |
21. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is R G A Barber. |
22. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 4,394,462 | 3,393,471 |
Depreciation charges | 213,731 | 215,169 |
Profit on disposal of fixed assets | - | (8,392 | ) |
Finance costs | 9,218 | 13,152 |
Finance income | (37,249 | ) | (3,981 | ) |
4,580,162 | 3,609,419 |
Decrease/(increase) in stocks | 138,158 | (301,928 | ) |
Increase in trade and other debtors | (373,391 | ) | (452,921 | ) |
(Decrease)/increase in trade and other creditors | (103,882 | ) | 242,023 |
Cash generated from operations | 4,241,047 | 3,096,593 |
23. | 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 April 2024 |
30.4.24 | 1.5.23 |
£ | £ |
Cash and cash equivalents | 5,342,928 | 1,838,615 |
Year ended 30 April 2023 |
30.4.23 | 1.5.22 |
£ | £ |
Cash and cash equivalents | 1,838,615 | 911,703 |
DELENCO HOLDINGS LIMITED (REGISTERED NUMBER: 12572528) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
24. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.5.23 | Cash flow | At 30.4.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,838,615 | 3,504,313 | 5,342,928 |
1,838,615 | 3,504,313 | 5,342,928 |
Total | 1,838,615 | 3,504,313 | 5,342,928 |