The directors present the strategic report for the period ended 30 June 2024.
We are extremely pleased with the financial performance of the companies, driven by Dura Composites Ltd, during a period where the economy slowed amidst political uncertainty and negative global events. The drivers of success continue to be attributable to our strong and positive PRIDE culture that delivers high levels of staff retention and the huge levels of investment into innovation resulting in a huge proportion of revenue being generated by highly differentiated product solutions. Work is underway to reposition Dura Group as the d2 Group with the clear purpose of providing the lowest carbon civil infrastructure product systems in the world.
Record revenues were once again achieved and we managed to maintain our selling prices to achieve record direct profitability. The continued investment into R&D has resulted in a total of 20 patents supported by the d2 sub brand used to differentiate our products in the market. The company continued its focus on government funded projects with growth potential expected in the rail, power and energy sectors. These markets continued to dominate sales providing more than 50% of sales revenue and around 80% of Net Profit where the d2 Grating walkway products remain core to our success and where niche high profit IP protected products such as Dura Platform for rail and Dura Slab for Industrial trenches allow the group to generate high revenues and high profit margins.
The launch of Traction2 from April 1st 2023 allowed all staff to further engage including them all in profit gain share system fuelled by quarterly ‘Rock Games’ designed to habitualise leaner methods of working.
We continued hedging a proportion of USD currency rather than take spot rates to mitigate risk in periods of foreign exchange fluctuations. FX levels were reasonably favourable during the course of the year which helped the trading performance.
The group invested in the purchase of a further 5% shareholding in the pre-revenue company The Orange Train Wash Ltd taking us to 25%. Dura Composites are the exclusive manufacturer and the group will now be paid 25% of Net Profit as a priority dividend annually plus quarterly management fees.
The group updated its financial year end from March 31 to June 30 to avoid the major year-end challenge experienced by virtue of the fact that the group needs to plan the next financial year whilst also servicing government projects operating around April 5th year end Budgets. Mekina was already operating around these dates. The Orange Train Wash has not been changed as, being pre-revenue, and not being run week to week with Dura Group, there was little benefit investing in the change.
The grant provided by Innovate UK is progressing well and the group was close to being able to process small amounts of waste GRP at the close of the year. This solution will allow the group to prove that’s its products have the lowest carbon in the world for products of this kind. Clients will be more likely to purchase GRP if they know that it can be re-used and makes their project lower in carbon. The group invested in a further start up company (Mekina) that provide GRP floor tray formwork solution for bridges that are made using poured concrete. This company made strong sales in year one and managed to on-board major Tier 1 contractors which bodes well for the future.
As always, the strength of the UK economy has an impact on the value of the pound against foreign currency such as US Dollars, which the group relies upon as part of its treasury management. This is off-set as much as possible by up to 15% by multi-currency income and in the post balance sheet period through forward contract arrangements. It is anticipated that the interest rate increases and high inflation levels will have a negative effect on performance in 2024-25.
The management of the business is subject to a number of other risks including Quality assurance, Environmental factors and Health and Safety issues. These are mitigated by ISO 9001 Quality Management launched in 2019 and ISO 14001 Environmental Management launched in 2021 plus ISO 45001 Health and Safety launched in 2022 which not only make our operations run more smoothly but also serve to make us more attractive to major blue chip contractor clients who insist on this type of accreditation. We are investigating the launch of ISO 45003 (Psychological Health and Safety) which will further support our staff in the area of well-being, which we see as being increasingly important to the retention of staff and business continuity. To assist in this area, the group are planning to appoint a Head of Operations who will have full responsibility for all manufacturing and installation operations plus quality, safety and continuous improvement.
In order to align long term goals the Senior Leadership Team of 6 people were provided with shares at Group level of 1% each during the course of the year. This team meet weekly with Directors and operate quarterly strategic days to ensure alignment to long term Group objectives and the delivery of annual goals. This de-risks the relatively small and ageing Board team. The next level of 15 managers also meet weekly and quarterly and use the Traction2 system to deliver the plans. It was determined that Lean coaching (3 days per person) would be rolled out to all staff over a 12 month period with the objective of encouraging the elimination of waste, and maximise quality and efficiency.
Other risks are reviewed by the board using the Traction Business Planning model including quarterly SWOT Analysis for each of the 15 departments plus weekly Issue tracking and Scorecard management to monitor and mitigate them.
The Orange Train Wash remains a relatively high risk investment as until the system is proven in a live environment clients will not purchase it. That said, at £1.5m per machine, sales could grow to £20m per annum very quickly. This innovation utilises many new aspects of design and technology and as such requires significant testing and development before commercialisation. The company is seeking grant funding to progress this growth opportunity.
There has been further investment to provide more capacity and greater efficiencies both at the Operations Centre in terms of storage systems, cutting machinery and handling equipment plus improved and enlarged welfare facilities as well as at our Fabrication Centre which saw further CNC equipment to increase speed and consistency of operations. The company is still considering plans for larger premises but has mitigated this huge investment by implementing novel electric Fork Lift Trucks with technology that allows storage aisle width reductions enabling 2 new aisles to be added which represents 20% more storage capacity. Dura Composites introduced a new ERP (Rootstock) and CRM (Salesforce) system in November 2023 all based around the Salesforce ecosystem with the vision of providing a single system for all activities in the company. This cost £300k to set-up and with on-going costs only around £75k per annum more than previous disjointed and outdated Sage systems.
The Directors will need to provide direction and support to its subsidiary Mekina with monthly board meetings and day-to-day support in finance and marketing plus support to The Orange Train Wash in its quest for funding to prove its effectiveness if it is to make this a commercial success. The group is open to investing in other new ventures but will only do so if there is sufficient management bandwidth.
The directors monitor progress on overall strategy by reference to the below key financial performance indicators:
2024-25 Plan 2023-24 (15m) 2022-23
Turnover £23.0m £22.56m £20.04m
Net Profit £3.33m £1.99m £2.10m
Net Profit Margin 14.5% 8.8% 10.5%
The Business Plan for 2024-25 assumes an increase in sales to £23m (excluding Mekina) commensurate with the product-led growth potential but tempered by the anticipated economic challenges. Taking into account the many planned efficiencies (eg Salesforce, Lean) that will result in lower overheads and the planned increase in Direct profit due to d2 differentiation Net Profit is targeted at £3.33m but with a target of £4.0m for staff to earn up to a 10% Net Profit Gain share bonus. It is anticipated that further new products that carry higher margins will help gross profit margins and therefore mitigate some of the additional staffing costs incurred as the business infrastructure is developed.
On behalf of the board
The directors present their annual report and financial statements for the period ended 30 June 2024.
The results for the period are set out on page 10.
Ordinary dividends were paid as shown in the Statement of Changes in Equity. The directors do not recommend payment of a further dividend.
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
The company maintains insurance policies on behalf of all the directors against liability arising from negligence, breach of duty and breach of trust in relation to the company.
The group operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the group’s activities.
The group’s principal financial instruments include derivative financial instruments, the purpose of which is to manage currency risks and interest rate risks arising from the group’s activities, and bank overdrafts and loans, the main purpose of which is to raise finance for the group’s operations. In addition, the group has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations. Derivative transactions which the group enters into principally comprise forward exchange contracts. In accordance with group’s treasury policy, derivative instruments are not entered into for speculative purposes.
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.
The group’s principal foreign currency exposures arise from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
In accordance with the company's articles, a resolution proposing that Rickard Luckin Limited be reappointed as auditor of the group will be put at a General Meeting.
We have audited the financial statements of Dura Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 30 June 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for 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 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management and via inspection of the parent company's regulatory and legal correspondence.
We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the group and the parent company.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the parent company is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution; relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly the parent company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; trade and export legislation; legislation relevant to the commercial property rental environment; data protection legislation; and anti bribery and anti-corruption legislation.
ISAs (UK) limit the required procedures to identify non-compliance with these laws and regulations and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements.
In relation to fraud, we performed the following specific procedures in addition to those already noted:
Challenging assumptions made by management in its significant accounting estimates;
Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations and consolidation journals;
Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;
Ensuring that testing undertaken on both the performance statement, and the Balance Sheet includes a number of items selected on a random basis; and
Discussions with management.
These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with ISAs (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £
Dura Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Dura House, Telford Road, Clacton-On-Sea, Essex, CO15 4LP.
The group consists of Dura Group Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements have been prepared under the historical cost convention modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument.
The consolidated financial statements incorporate those of Dura Group Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The reporting period for these financial statements has been increased to 15 months. The period has been increased to remain in line with the period of the subsidiaries, which have also been increased to 15 months. The comparative amounts presented in the financial statements are therefore not entirely comparable as they relate to a 12 month period.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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.
Research and development expenditure is written off against profits in the year in which it is incurred.
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 profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Properties are carried at fair value. Fair value is determined by the directors with reference to periodic professional valuations obtained. The directors have considered the carrying value of the properties with reference to market conditions and with reference to improvement works made throughout the period. Like for like comparisons in the local market are limited and therefore there is a degree of subjectivity involved in this.
An analysis of the group's turnover is as follows:
Sales of goods above includes the associated income relating to installation and design services. All such services are linked to the underlying supply of goods and are not considered to represent separable income streams for the purpose of turnover analysis.
During the year the group incurred expenditure attributable to research and development totalling £1,973,000 (2023: £1,715,375), including the relevant apportionment of staff costs, which have not been capitalised as permitted under FRS102.
The average monthly number of persons (including directors) employed by the group and company during the period was:
Their aggregate remuneration comprised:
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
The carrying value of land and buildings comprises:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Land and buildings comprises Dura House the main head office for the group and former Dairy Depot, now known as the Operations Centre.
The fair value of Dura House has been arrived at on the basis of a valuation carried out at the property by a firm of Chartered Surveyors, who are not connected with the company. They valued the property at £1,090,000 on 26th April 2022. The directors have considered the valuation position and consider that there is no material difference in the value between this valuation date and the balance sheet date. The directors believe that this continues to be a materially correct assessment of the fair value of the property at the current balance sheet date. The historic costs to date of Dura House are £363,445.
The fair value of The Operations Centre has been arrived at on the basis of a valuation carried out at the property by a firm of Chartered Surveyors, who are not connected with the company. They valued the property at £1,490,000 on 26th April 2022. This value has subsequently increased due to renovation works carried out during the year totalling £210,351. As at 31 March 2023 the carrying value was considered to have increased to £1,700,351. The directors believe that this continues to be a materially correct assessment of the fair value of the property at the current balance sheet date. The historic costs to date of The Operations Centre are £1,980,144.
The Directors have taken into consideration the carrying value of the properties at the balance sheet date and as a result have not provided for depreciation during the period.
Details of the company's subsidiaries at 30 June 2024 are as follows:
The registered office address of Dura Composites Limited, Dura Property Limited, Fibreglass Grating Limited, WPC Dura Composites Limited, Dura Upcycling Limited, and Mekina Industries Limited is Dura House, Telford Road, Gorse Lane Industrial Estate, Clacton-On-Sea, Essex, United Kingdom, C015 4LP.
The group also has significant holdings in undertakings which are not consolidated:
The groups share in The Orange Train Wash Limited's results for the year have not been reflected within the groups consolidated financial statements due to being immaterial.
Dura Composites Australasia Pty is a newly incorporated company and its results have not been reflected within the groups financial statements due to it being immaterial.
Hire purchase agreements are secured on the assets to which they relate.
Included in other creditors is £534,044 owed under an invoice discounting facility. This balance is secured by a fixed and floating charge over the assets of the group.
Hire purchase agreements are secured on the assets to which they relate.
The long term loans are also secured by fixed charges over the properties of the group and a fixed and floating charge over the assets of Dura Property Limited. There is also a fixed and floating charge over the total assets of Dura Composites Limited and a debenture held over the assets of Dura Composites Limited and Dura Group Limited.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
During the year, 1,180 Ordinary D shares with a nominal value of 1p were issued for £76,665.
The holders of Ordinary A and B shares are entitled to one vote per share held at any general meeting of the company. The holders of Ordinary C and D shares are not entitled to any voting rights.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Company
During the year advances were made to directors totalling £109,247 (2023: £42,196) which have been fully repaid by the balance sheet date. These all related to personal expenses borne by the company on their behalf. In addition a balance of £77,726 (2023: £38,124) has been repaid against the brought forward loan.
At the balance sheet date the directors owed the company £2,741 (2023: £80,467).
Group
During the year advances were made to directors totalling £360,363 (2023: £118,494) which have been fully repaid by the balance sheet date. These all related to personal expenses borne by the group on their behalf. In addition a balance of £411,440 (2023: £124,085) has been repaid against the brought forward loan.
At the balance sheet date the directors owed the group £283,986 (2023: £695,426).
The following amounts were outstanding at the reporting end date: