Company registration number 06614238 (England and Wales)
DANGOTE GLOBAL SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
DANGOTE GLOBAL SERVICES LIMITED
COMPANY INFORMATION
Director
Mr Aliko Dangote
Company number
06614238
Registered office
3rd Floor
75 Davies Street
London
United Kingdom
W1K 5JN
Auditor
Azets Audit Services
2nd Floor
Regis House
45 King William Street
London
EC4R 9AN
DANGOTE GLOBAL SERVICES LIMITED
CONTENTS
Page
Director's report
1 - 2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 25
DANGOTE GLOBAL SERVICES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The director presents his annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company continued to be that of procurement of goods and services for companies within the group.

Results and dividends

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

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

Mr Aliko Dangote
Mr Oluwatosin Coker
(Resigned 31 March 2022)
Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

DANGOTE GLOBAL SERVICES LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Statement of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

On behalf of the board
Mr Aliko Dangote
Director
12 March 2025
DANGOTE GLOBAL SERVICES LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -

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

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. Under company law the director must not approve the financial statements unless he is 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, International Accounting Standard 1 requires that directors:

 

The director is 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. He is 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.

DANGOTE GLOBAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DANGOTE GLOBAL SERVICES LIMITED
- 4 -
Opinion

We have audited the financial statements of Dangote Global Services Limited (the 'company') for the year ended 31 December 2022 which comprise the statement of comprehensive income, the statement of financial position, 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 UK adopted international accounting standards.

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 director 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 director is 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:

DANGOTE GLOBAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DANGOTE GLOBAL SERVICES LIMITED
- 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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

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.

DANGOTE GLOBAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DANGOTE GLOBAL SERVICES LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Ian Jefferson (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
12 March 2025
Chartered Accountants
Statutory Auditor
2nd Floor
Regis House
45 King William Street
London
EC4R 9AN
DANGOTE GLOBAL SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2022
2021
Notes
£
£
Revenue
6,412,118
34,497,794
Cost of sales
(5,542,851)
(33,180,072)
Gross profit
869,267
1,317,722
Administrative expenses
(1,520,370)
(1,142,944)
Operating (loss)/profit
4
(651,103)
174,778
Finance costs
7
(16,986)
(26,291)
(Loss)/profit before taxation
(668,089)
148,487
Income tax expense
8
-
-
(Loss)/profit and total comprehensive income for the year
(668,089)
148,487

The income statement has been prepared on the basis that all operations are continuing operations.

DANGOTE GLOBAL SERVICES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
31 December 2022
- 8 -
2022
2021
Notes
£
£
Non-current assets
Property, plant and equipment
9
41,934
195,581
Current assets
Trade and other receivables
10
10,222,081
14,817,898
Cash and cash equivalents
3,586,630
502,918
13,808,711
15,320,816
Current liabilities
Trade and other payables
15
12,310,757
13,774,932
Borrowings
2,403,647
1,776,936
Lease liabilities
16
42,246
160,199
14,756,650
15,712,067
Net current liabilities
(947,939)
(391,251)
Non-current liabilities
Lease liabilities
16
-
0
42,246
Net liabilities
(906,005)
(237,916)
Equity
Called up share capital
18
1,000,000
1,000,000
Retained earnings
(1,906,005)
(1,237,916)
Total equity
(906,005)
(237,916)

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 12 March 2025 and are signed on its behalf by:
Mr Aliko Dangote
Director
Company registration number 06614238
DANGOTE GLOBAL SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2021
1,000,000
(1,386,403)
(386,403)
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
148,487
148,487
Balance at 31 December 2021
1,000,000
(1,237,916)
(237,916)
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(668,089)
(668,089)
Balance at 31 December 2022
1,000,000
(1,906,005)
(906,005)
DANGOTE GLOBAL SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
3,261,609
625,053
Interest paid
(16,986)
(26,291)
Net cash inflow from operating activities
3,244,623
598,762
Investing activities
Purchase of property, plant and equipment
(712)
-
0
Net cash used in investing activities
(712)
-
Financing activities
Payment of lease liabilities
(160,199)
(139,546)
Net cash used in financing activities
(160,199)
(139,546)
Net increase in cash and cash equivalents
3,083,712
459,216
Cash and cash equivalents at beginning of year
502,918
43,702
Cash and cash equivalents at end of year
3,586,630
502,918
DANGOTE GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
1
Accounting policies
Company information

Dangote Global Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, 75 Davies Street, London, United Kingdom, W1K 5JN. The company's principal activities and nature of its operations are disclosed in the director's report.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

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

The company's statement of financial position presents net current liabilities of £947,939 and net liabilities of £906,005.  On the basis of a letter of support received from the directors of the parent company Dangote Industries Limited which provides financial support to meet the company's liabilities as they fall due for at least one year from the period of signing these financial statements and enquiries made of the directors of Dangote Global Services Limited, the company's directors have a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future. Accordingly, the annual financial statements continue to be prepared on a going concern basis.true

1.3
Revenue

Revenue relates to net invoices from sales of goods (such as machinery parts) and from management services. Sales are substantially to companies under common control.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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 are recoverable.

1.4
Property, plant and equipment

Property, plant and equipment 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 land and buildings
Over the life of the lease
Fixtures and fittings
20% on cost
Computers
33% on cost and 20% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.

DANGOTE GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
1.5
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible 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.

1.6
Cash and cash equivalents

Cash and cash equivalents 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.

1.7
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Financial assets at fair value through other comprehensive income

Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

 

A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.

DANGOTE GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -

The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.

Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.8
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue 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.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

DANGOTE GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 14 -
Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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

1.11
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 inventories or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

DANGOTE GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 15 -

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.14
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.

2
Adoption of new and revised standards and changes in accounting policies

In the current year, the following new and revised Standards and Interpretations have been adopted by the company and have an effect on the current period or a prior period or may have an effect on future periods:

Standards which are in issue but not yet effective

At the date of authorisation of these financial statements, the following Standards and Interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective (and in some cases had not yet been adopted by the EU):

From 1 January 2021, the company will apply UK-adopted IAS. At the date of application, both UK-adopted IAS and EU-adopted IFRS will be the same.

 

Management anticipates that all of the pronouncements will be adopted in the accounting periods for the first period beginning after the effective date of the pronouncement. Information on new Standards, Amendments and Interpretations that are expected to be relevant to the financial statements is provided below. Certain other new Standards, Amendments and Interpretations have been issued but are not expected to have a material impact on the financial statements.

DANGOTE GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
3
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the director is 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Key sources of estimation uncertainty
Recoverability of group receivables

Determining whether the value of intercompany receivables is impaired requires an estimation of the recoverability of the debt. The directors consider intercompany receivables recoverable due to group support where the group is profitable overall. No provision has been made against the value.

4
Operating (loss)/profit
2022
2021
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange losses
542,283
188,756
Fees payable to the company's auditor for the audit of the company's financial statements
25,650
10,350
Depreciation of property, plant and equipment
154,359
152,072
5
Employees

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

2022
2021
Number
Number
Administration and procurement
9
9
Directors
1
1
Total
10
10
DANGOTE GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
5
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
354,423
422,430
Social security costs
30,606
30,516
Pension costs
7,532
6,832
392,561
459,778
6
Director's remuneration
2022
2021
£
£
Remuneration for qualifying services
37,756
100,000
Company pension contributions to defined contribution schemes
550
1,318
38,306
101,318

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2021 - 1).

7
Finance costs
2022
2021
£
£
Interest on bank overdrafts and loans
12
177
Interest on lease liabilities
16,974
26,114
Total interest expense
16,986
26,291
DANGOTE GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
8
Income tax expense

The charge for the year can be reconciled to the (loss)/profit per the income statement as follows:

2022
2021
£
£
(Loss)/profit before taxation
(668,089)
148,487
Expected tax (credit)/charge based on a corporation tax rate of 19.00% (2021: 19.00%)
(126,937)
28,213
Effect of expenses not deductible in determining taxable profit
40
352
Unutilised tax losses carried forward
126,897
(29,288)
Depreciation on assets not qualifying for tax allowances
-
0
632
Provisions tax adjustment
-
0
91
Taxation charge for the year
-
-

No deferred tax asset has been recognise on available tax losses carried forward of £1,466,984 (2021: £836,128) due to uncertainty of future profits. There is no expiry date for the unused tax losses.

 

In the March 2021 Budget, the UK government announced an increase in the standard rate of corporation tax from the current rate of 19% to 25% with effect from 1 April 2023.

9
Property, plant and equipment
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2021
319,238
244,926
10,785
574,949
Additions
302,075
-
0
-
0
302,075
At 31 December 2021
621,313
244,926
10,785
877,024
Additions
-
0
-
0
712
712
At 31 December 2022
621,313
244,926
11,497
877,736
Accumulated depreciation and impairment
At 1 January 2021
283,768
235,363
10,240
529,371
Charge for the year
148,744
3,188
140
152,072
At 31 December 2021
432,512
238,551
10,380
681,443
Charge for the year
151,032
3,187
140
154,359
At 31 December 2022
583,544
241,738
10,520
835,802
DANGOTE GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
9
Property, plant and equipment
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
(Continued)
- 19 -
Carrying amount
At 31 December 2022
37,769
3,188
977
41,934
At 31 December 2021
188,801
6,375
405
195,581

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2022
2021
£
£
Net values at the year end
Property
37,769
188,801
Depreciation charge for the year
Property
(151,032)
(148,744)
10
Trade and other receivables
2022
2021
£
£
Trade receivables
7,568
120,284
VAT recoverable
269,360
309,552
Amount owed by parent undertaking
1,486,552
3,904,549
Amounts owed by fellow group undertakings
5,941,436
8,290,373
Other receivables
-
39,174
Prepayments
2,517,165
2,153,966
10,222,081
14,817,898
DANGOTE GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
11
Trade receivables - credit risk
Fair value of trade receivables

The director considers that the carrying amount of trade and other receivables differs from fair value as follows:

Carrying value
Fair value
2022
2021
2022
2021
£
£
£
£
Trade receivables net of allowances
7,568
120,284
7,568
120,284
Other debtors
-
0
39,174
-
0
39,174
Prepayments
2,517,165
2,153,966
2,517,165
2,153,966
2,524,733
2,313,424
2,524,733
2,313,424

No significant receivable balances are impaired at the reporting end date.

12
Fair value of financial liabilities

The director considers that the carrying amounts of financial liabilities carried at amortised cost in the financial statements approximate to their fair values.

 

The company finances its operations through equity and through loans from entities under common control. Finance requirements are reviewed by the Board when funds are required for capital improvements or operational working capital requirements.

 

Financial risk management

The company's policy is to maintain a strong balance sheet so as to maintain the confidence of stakeholders and to sustain future development of the business. There were no changes to the company's capital management approach during the year.

 

The treasury functions of the company are responsible for managing fund requirements and investments which includes banking and cash flow management. Treasury management ensures adequate liquidity at all times to meet cash requirements, as well as managing the company's foreign exchange exposure.

 

The company's financial instruments comprise cash and various items such as trade and other receivables and trade and other payables that arise directly from its operations. The main purpose of these financial instruments is to maintain working capital and ensure future opportunities can be taken advantage of.

 

The main risks arising from the company's financial instruments are currency and liquidity risks. The Board reviews and agrees policies for managing each of these, which is summarised below. Credit risk is considered to be low as receivables relate substantially to inter-company balances, where there is no evidence or history of non-payment.

DANGOTE GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
13
Liquidity risk

The following table details the remaining contractual maturity for the company's financial liabilities with agreed repayment periods. The contractual maturity is based on the earliest date on which the company may be required to pay.

6 months or less
6 months or more
Total
£
£
£
At 31 December 2021
Trade payables
1,929,417
-
1,929,417
Amount owed to group undertakings
-
11,748,024
11,748,024
Accrued expenses
22,203
-
22,203
Other payables
58,697
-
58,697
Lease liabilities
160,199
42,246
202,445
Borrowings
-
1,776,936
1,776,936
2,170,516
13,567,206
15,737,722
At 31 December 2022
Trade payables
1,123,348
-
1,123,348
Amount owed to group undertakings
-
11,039,693
11,039,693
Accrued expenses
52,159
-
52,159
Other payables
78,513
-
78,513
Lease liabilities
42,246
-
42,246
Borrowings
-
2,403,647
2,403,647
1,296,266
13,443,340
14,739,606
Liquidity risk management

Liquidity risk is the risk that the company will not be able to meet its financial obligations as they fall due. The company's approach to managing liquidity is to ensure that sufficient resources and flexibility are maintained to allow the company to meet its obligations without incurring unacceptable losses or risking damage to the Dangote name in the market place. The company manages liquidity risk by maintaining adequate banking facilities and continuously monitoring forecast and actual cash flows.

14
Market risk
Market risk management

The company is exposed to currency risk on purchases, sales and cash and cash equivalents that are denominated in a currency other than Sterling, primarily US Dollars and Euros. The company mitigates this risk by holding bank accounts in Dollar and Euro as well as Sterling so that liabilities can be settled in the denomination in which it occurs. Additionally, the company tries, where possible, to buy and sell in Sterling.

DANGOTE GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
14
Market risk
(Continued)
- 22 -
Foreign exchange risk

The carrying amounts of the company's foreign currency denominated monetary assets and liabilities at the reporting date are as follows:

Assets
Liabilites
2022
2021
2022
2021
£
£
£
£
United States Dollar (USD)
6,507,417
2,989,051
8,555,640
8,333,489
Euro (EUR)
1,649,634
2,503,538
961,045
934,519
8,157,051
5,492,589
9,516,685
9,268,008
15
Trade and other payables
2022
2021
£
£
Trade payables
1,123,348
1,929,417
Amounts owed to fellow group undertakings
11,039,693
11,748,024
Accruals
52,159
22,203
Social security and other taxation
17,044
16,591
Other payables
78,513
58,697
12,310,757
13,774,932
16
Lease liabilities
2022
2021
Maturity analysis
£
£
Within one year
43,181
172,725
In two to five years
-
43,181
Total undiscounted liabilities
43,181
215,906
Future finance charges and other adjustments
(935)
(13,461)
Lease liabilities in the financial statements
42,246
202,445
DANGOTE GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
16
Lease liabilities
(Continued)
- 23 -

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2022
2021
£
£
Current liabilities
42,246
160,199
Non-current liabilities
-
0
42,246
42,246
202,445
2022
2021
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
16,974
26,114

It is the company's policy to lease property under finance leases. The average lease term remaining is 0.5 years. The average effective borrowing rate for the year was 5%. Interest rates are fixed at the contract date. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Other leasing information is included in note .
17
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
7,532
6,832

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.

18
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000,000
1,000,000
1,000,000
1,000,000
19
Capital risk management

The company is not subject to any externally imposed capital requirements.

DANGOTE GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
20
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

2022
2021
£
£
Short-term employee benefits
38,306
101,318
Other transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
2022
2021
£
£
Parent company
-
2,237
Entities with joint control or significant influence over the company
6,238,528
35,473
6,238,528
37,710

The following amounts were outstanding at the reporting end date:

2022
2021
Amounts due to related parties
£
£
Entities with joint control or significant influence over the company
(11,039,693)
(11,748,024)
Key management personnel
(2,403,647)
(1,776,935)
(13,443,340)
(13,524,959)

The following amounts were outstanding at the reporting end date:

2022
2021
Amounts due from related parties
£
£
Parent company
1,486,552
3,904,549
Entities with joint control or significant influence over the company
5,941,436
8,290,373
7,427,988
12,194,922
DANGOTE GLOBAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
21
Directors' transactions

During the year, $0.5m (£0.379m) was credited from a director (2021 - $2.4m (£1.72m)) and no monies were advanced (2021 - £nil).

 

As at the reporting date, £2.404m (2021 - £3,864 and £1.773m due to directors) (after retranslation of the foreign denominated loan balance) was due to a director.

 

22
Controlling party

The parent company of Dangote Global Services Limited is Dangote Industries Limited registered in Nigeria and its registered office is Union Marble House, 1 Alfred Rewane Road, Ikoyi, Lagos, Nigeria, PO Box 40032, Falomo.

 

The ultimate controlling party is Mr A Dangote.

 

23
Cash generated from operations
2022
2021
£
£
(Loss)/profit for the year before income tax
(668,089)
148,487
Adjustments for:
Finance costs
16,986
26,291
Depreciation and impairment of property, plant and equipment
154,359
152,072
Movements in working capital:
Decrease/(increase) in trade and other receivables
4,595,817
(5,949,541)
(Decrease)/increase in trade and other payables
(837,464)
6,247,744
Cash generated from operations
3,261,609
625,053
2022-12-312022-01-01falsefalseCCH SoftwareCCH Accounts Production 2024.310Mr Aliko DangoteMr Oluwatosin CokerS Dangote066142382022-01-012022-12-3106614238bus:Director12022-01-012022-12-3106614238bus:Director22022-01-012022-12-3106614238bus:Director32022-01-012022-12-3106614238bus:RegisteredOffice2022-01-012022-12-31066142382022-12-3106614238core:ContinuingOperations2022-01-012022-12-31066142382021-01-012021-12-3106614238core:ContinuingOperations2021-01-012021-12-3106614238core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3106614238core:RetainedEarningsAccumulatedLosses2021-01-012021-12-31066142382021-12-3106614238core:FairValue2022-12-3106614238core:FairValue2021-12-31066142382021-12-31066142382020-12-3106614238core:CurrentFinancialInstruments2022-12-3106614238core:CurrentFinancialInstruments2021-12-3106614238core:Non-currentFinancialInstruments2022-12-3106614238core:Non-currentFinancialInstruments2021-12-3106614238core:ShareCapital2022-12-3106614238core:ShareCapital2021-12-3106614238core:RetainedEarningsAccumulatedLosses2022-12-3106614238core:RetainedEarningsAccumulatedLosses2021-12-3106614238core:OtherMiscellaneousReserve2020-12-3106614238core:FinancialInstrumentsFairValueThroughProfitOrLoss2022-01-012022-12-3106614238core:Held-to-maturityFinancialAssets2022-01-012022-12-3106614238core:Available-for-saleFinancialAssets2022-01-012022-12-310661423812022-01-012022-12-310661423812021-01-012021-12-3106614238core:LandBuildingscore:LeasedAssetsHeldAsLessee2020-12-3106614238core:FurnitureFittings2020-12-3106614238core:ComputerEquipment2020-12-3106614238core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-3106614238core:FurnitureFittings2021-12-3106614238core:ComputerEquipment2021-12-3106614238core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3106614238core:FurnitureFittings2022-12-3106614238core:ComputerEquipment2022-12-3106614238core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-01-012021-12-3106614238core:FurnitureFittings2021-01-012021-12-3106614238core:ComputerEquipment2021-01-012021-12-3106614238core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-01-012022-12-3106614238core:FurnitureFittings2022-01-012022-12-3106614238core:ComputerEquipment2022-01-012022-12-3106614238core:CurrentFinancialInstrumentscore:ValueBeforeAllowanceForImpairmentLoss2022-12-3106614238core:CurrentFinancialInstrumentscore:ValueBeforeAllowanceForImpairmentLoss2021-12-3106614238core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2022-12-3106614238core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2021-12-3106614238core:KeyManagementPersonnel2022-12-3106614238core:KeyManagementPersonnel2021-12-3106614238core:ParentEntities2022-12-3106614238bus:PrivateLimitedCompanyLtd2022-01-012022-12-3106614238bus:Audited2022-01-012022-12-3106614238bus:FullIFRS2022-01-012022-12-3106614238bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP