Company Registration No. 03266015 (England and Wales)
DURA COMPOSITES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED
30 JUNE 2024
30 June 2024
DURA COMPOSITES LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 25
DURA COMPOSITES LIMITED
COMPANY INFORMATION
Directors
SC Burns
TJ Bowman
CC Burns
Mrs JB Burns
Secretary
Mrs JB Burns
Company number
03266015
Registered office
Dura House
Telford Road
Clacton on Sea
Essex
CO15 4LP
Auditor
Rickard Luckin Limited
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
DURA COMPOSITES LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 JUNE 2024
- 1 -

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

Review of the business

We are extremely pleased with the financial performance of the company 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 company 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 company 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 company needs to plan the next financial year whilst also servicing government projects operating around April 5th year end Budgets.

 

The grant provided by Innovate UK is progressing well and the company was close to being able to process small amounts of waste GRP at the close of the year. This solution will allow the company 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.  Mekina talk to the same sort of clients and as such there are benefits passed in both directions in respect of leads and clients.

DURA COMPOSITES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 2 -
Principal risks and uncertainties

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 company 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 company 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 company 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.

Development and performance

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. The company 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 is only around £75k per annum more than previous disjointed and outdated Sage systems.

Key performance indicators

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                     £22.0m                        £22.0m                       £20.0m

Net Profit                    £3.33m                        £2.00m                       £2.08m                                  

Net Profit Margin      15.1%                          9.1%                          10.3%

 

The Business Plan for 2024-25 assumes an increase in sales to £22m commensurate with the innovation led growth 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 £3m but with 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.

DURA COMPOSITES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 3 -

On behalf of the board

SC Burns
Director
5 February 2025
DURA COMPOSITES LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 JUNE 2024
- 4 -

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

Principal activities

The principal activity of the company continued to be that of the sale of composite materials.

Results and dividends

The results for the period are set out on page 11.

Ordinary dividends were paid amounting to £1,432,191.

Directors

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

SC Burns
TJ Bowman
CC Burns
Mrs JB Burns
Directors' insurance

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.

Financial instruments
Treasury operations and financial instruments

The company operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the company’s activities.

 

The company’s principal financial instruments include bank overdrafts, loans and invoice factoring facilities, the main purpose of which is to raise finance for the company’s operations. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations.

Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The company is exposed to cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company does not use derivatives to manage this risk as the directors do not feel this is necessary in the context of the overall risk management of the business.

DURA COMPOSITES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 5 -
Foreign currency risk

The company’s principal foreign currency exposures arise from trading with overseas companies and in purchasing goods from overseas. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity may often be managed on an informal basis internally, whereby the directors aim to ensure that the excess of supplies over sales in foreign currencies is minimised wherever possible. In addition, where appropriate, forward exchange contracts are also entered into in order to fix a rate of purchase.

Credit risk

Investments of cash surpluses, borrowings and other facilities 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.

Auditor

In accordance with the company's articles, a resolution proposing that Rickard Luckin Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

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

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

In preparing these financial statements, the directors are required to:

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

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of information on future performance and developments.

Statement of disclosure to auditor

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

Medium-sized companies exemption

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

DURA COMPOSITES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 6 -
On behalf of the board
SC Burns
Director
5 February 2025
DURA COMPOSITES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DURA COMPOSITES LIMITED
- 7 -
Opinion

We have audited the financial statements of Dura Composites Limited (the 'company') for the period ended 30 June 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

DURA COMPOSITES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DURA COMPOSITES LIMITED (CONTINUED)
- 8 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

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.

Capability of detecting irregularities, including fraud

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 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 company.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the 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.

DURA COMPOSITES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DURA COMPOSITES LIMITED (CONTINUED)
- 9 -

Secondly the 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 legislation; legislation relevant to the commercial; data protection legislation; 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:

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.

DURA COMPOSITES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DURA COMPOSITES LIMITED (CONTINUED)
- 10 -
Michael Breame
Senior Statutory Auditor
For and on behalf of Rickard Luckin Limited
11 February 2025
Chartered Accountants
Statutory Auditor
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
DURA COMPOSITES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2024
- 11 -
Period
Year
ended
ended
30 June
31 March
2024
2023
Notes
£
£
Turnover
3
22,021,420
20,037,631
Cost of sales
(15,125,575)
(13,628,784)
Gross profit
6,895,845
6,408,847
Administrative expenses
(5,372,289)
(4,129,920)
Other operating income
745,482
13,407
Operating profit
4
2,269,038
2,292,334
Interest payable and similar expenses
7
(265,083)
(213,623)
Profit before taxation
2,003,955
2,078,711
Tax on profit
9
-
0
-
0
Profit for the financial period
2,003,955
2,078,711
DURA COMPOSITES LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 12 -
30 June 2024
31 March 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,945,333
1,070,437
Current assets
Stocks
11
5,504,732
5,049,487
Debtors
12
7,098,767
7,828,907
Cash at bank and in hand
271,136
91,808
12,874,635
12,970,202
Creditors: amounts falling due within one year
13
(4,522,258)
(4,841,203)
Net current assets
8,352,377
8,128,999
Total assets less current liabilities
10,297,710
9,199,436
Creditors: amounts falling due after more than one year
14
(605,282)
(78,772)
Net assets
9,692,428
9,120,664
Capital and reserves
Called up share capital
18
213
213
Profit and loss reserves
9,692,215
9,120,451
Total equity
9,692,428
9,120,664

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

The financial statements were approved by the board of directors and authorised for issue on 5 February 2025 and are signed on its behalf by:
SC Burns
Director
Company registration number 03266015 (England and Wales)
DURA COMPOSITES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
213
7,871,004
7,871,217
Year ended 31 March 2023:
Profit and total comprehensive income
-
2,078,711
2,078,711
Dividends
8
-
(829,264)
(829,264)
Balance at 31 March 2023
213
9,120,451
9,120,664
Period ended 30 June 2024:
Profit and total comprehensive income
-
2,003,955
2,003,955
Dividends
8
-
(1,432,191)
(1,432,191)
Balance at 30 June 2024
213
9,692,215
9,692,428
DURA COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024
- 14 -
1
Accounting policies
Company information

Dura Composites Limited is a private company limited by shares incorporated in England and Wales. The registered office is Dura House, Telford Road, Clacton on Sea, Essex, CO15 4LP.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

This 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:

 

- Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

 

The financial statements of the company are consolidated in the financial statements of Dura Group Limited. These consolidated financial statements are available from Companies House.

1.2
Going concern

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

1.3
Reporting period

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 parent company, which has 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.

1.4
Turnover

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

1.5
Research and development expenditure

Research and development expenditure is written off against profits in the year in which it is incurred.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

DURA COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -

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:

Plant and machinery
15%-25% straight line
Fixtures, fittings & equipment
15%-25% straight line
Computer equipment
25%-30% straight line
Motor vehicles
25% on reducing balance and 25% straight line

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

1.7
Impairment of fixed assets

At each reporting period 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.

1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash at bank and in hand

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

1.10
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

DURA COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
Other financial assets

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

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies 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 receipts discounted at a market rate of interest.

 

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

 

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

DURA COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.11
Equity instruments

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

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

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

 

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.

1.13
Retirement benefits

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

1.14
Leases

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 leases asset are consumed.

DURA COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.15
Government grants

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.

1.16
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
Judgements and key sources of estimation uncertainty

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

 

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

Key sources of estimation uncertainty

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

Depreciation of tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

 

During the year the directors have taken the decision to update the depreciation approach and rates used, determining that a straight line basis for the majority of asset classes is more appropriate in light of the usual economic lives of those assets.

 

In doing so, assets already held on the balance sheet and depreciated on a reducing balance basis, will be depreciated over their remaining useful economic lives on a straight line basis. The directors have considered the impact of this and believe that any corresponding change in the depreciation charge recognised is the current period is not materially different to the charge that would have arisen if applying the rates.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

DURA COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
3
Turnover and other revenue
(Continued)
- 19 -
2024
2023
£
£
Turnover analysed by geographical market
UK
20,914,791
19,237,291
Export
1,106,629
800,340
22,021,420
20,037,631
2024
2023
£
£
Other revenue
Grants received
724,362
7,985
4
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(138,816)
40,771
Government grants
(724,362)
(7,985)
Fees payable to the company's auditor for the audit of the company's financial statements
21,500
20,000
Depreciation of owned tangible fixed assets
308,987
216,980
Depreciation of tangible fixed assets held under finance leases
105,600
40,093
(Profit)/loss on disposal of tangible fixed assets
(100,794)
28,671
Operating lease charges
390,455
183,255

During the year the company 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.

5
Employees

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

2024
2023
Number
Number
Directors
4
4
Other employees
110
106
Total
114
110
DURA COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
5
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,311,000
4,121,231
Social security costs
593,861
440,441
Pension costs
111,007
78,321
6,015,868
4,639,993
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
219,720
191,527
7
Interest payable and similar expenses
2024
2023
£
£
Other interest
265,083
213,623
8
Dividends
2024
2023
£
£
Interim paid
1,432,191
829,264
9
Taxation

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:

2024
2023
£
£
Profit before taxation
2,003,955
2,078,711
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
500,989
394,955
Tax effect of expenses that are not deductible in determining taxable profit
12,052
2,583
Change in unrecognised deferred tax assets
(513,041)
(375,842)
Permanent capital allowances in excess of depreciation
-
0
(21,696)
Taxation charge for the period
-
-
DURA COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 21 -
10
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
1,050,760
268,410
476,081
135,390
1,930,641
Additions
686,951
161,569
57,737
498,936
1,405,193
Disposals
(166,957)
(348)
-
0
-
0
(167,305)
At 30 June 2024
1,570,754
429,631
533,818
634,326
3,168,529
Depreciation and impairment
At 1 April 2023
386,552
124,912
295,396
53,344
860,204
Depreciation charged in the period
159,928
70,669
111,230
72,760
414,587
Eliminated in respect of disposals
(51,587)
(8)
-
0
-
0
(51,595)
At 30 June 2024
494,893
195,573
406,626
126,104
1,223,196
Carrying amount
At 30 June 2024
1,075,861
234,058
127,192
508,222
1,945,333
At 31 March 2023
664,208
143,498
180,685
82,046
1,070,437

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and machinery
500,187
113,048
Motor vehicles
466,377
81,713
966,564
194,761
11
Stocks
2024
2023
£
£
Finished goods and goods for resale
5,504,732
5,049,487
DURA COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 22 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,580,743
4,685,254
Other debtors
2,751,351
2,649,095
Prepayments and accrued income
603,816
303,281
6,935,910
7,637,630
2024
2023
Amounts falling due after more than one year:
£
£
Corporation tax recoverable
162,857
191,277
Total debtors
7,098,767
7,828,907
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
15
458,053
208,860
Obligations under hire purchase agreements
16
232,712
116,721
Trade creditors
1,809,036
2,318,387
Taxation and social security
93,361
476,178
Other creditors
1,488,126
1,173,842
Accruals and deferred income
440,970
547,215
4,522,258
4,841,203

Hire purchase agreements are secured on the assets to which they relate.

14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under hire purchase agreements
16
605,282
78,772

Hire purchase agreements are secured on the assets to which they relate.

DURA COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 23 -
15
Loans and overdrafts
2024
2023
£
£
Bank loans
458,053
208,860
Payable within one year
458,053
208,860

The company's borrowings are secured by a fixed and floating charge over the current and future assets of the company and a cross guarantee with three group companies.

 

16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
282,912
138,564
In two to five years
729,442
93,514
1,012,354
232,078
Less: future finance charges
(174,360)
(36,585)
837,994
195,493

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
111,007
78,321

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
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary "A" shares of £1 each
186
186
186
186
Ordinary "B" shares of £1 each
27
27
27
27
213
213
213
213
DURA COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
18
Share capital
(Continued)
- 24 -

The 'A' and 'B' shares rank pari passu with each other save that the 'B' shares carry no voting right in general meetings.

 

19
Financial commitments, guarantees and contingent liabilities

The company has entered into an arrangement to provide security in the form of a debenture, comprising a fixed and floating charge over all the present and future assets and undertaking of the company, over loan facilities within the group. The total amount outstanding at the balance sheet date in respect of these facilities was £569,858 (2023: £654,225).

20
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
227,579
118,057
Between two and five years
392,021
96,926
619,600
214,983
DURA COMPOSITES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 25 -
21
Related party transactions
Transactions with related parties

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

Dura Group Limited - Parent Company
The company provided loans to Dura Group Limited in the year which are repayable on demand. At the balance sheet date the company was owed £557,774 (2023: £564,804) by Dura Group Limited. This amount is included in other debtors.

 

Dura Property Limited - Fellow subsidiary of Dura Group Limited
The company recharged expenses to Dura Property Limited in the year and paid rent to the company on normal commercial terms. At the balance sheet date the company was owed £1,273,985 (2023: £1,245,893) by Dura Property Limited. This amount is included in other debtors.

 

Dura Upcycling Limited - Fellow subsidiary of Dura Group Limited
The company made recharges to Dura Upcycling during the year and at the balance sheet date was owed £21,926 (2023: £97,226). This amount is included in other debtors.

 

Dura Composites Australasia Pty Limited - Fellow subsidiary of Dura Group Limited
The company provided loans to Dura Composites Australasia Pty Limited in the year which are repayable on demand. At the balance sheet date the company was owed £32,391 by Dura Composites Australasia Pty Limited. This amount is included in other debtors.

 

The Orange Train Wash Limited - Associate of Dura Group Limited
The company provided loans to The Orange Train Wash Limited in the year which are repayable on demand. At the balance sheet date the company was owed £14,598 by The Orange Train Wash Limited. This amount is included in other debtors.

 

Mekina Industries Limited - Joint venture of Dura Group Limited
The company provided loans to Mekina Industries Limited in the year which are repayable on demand. At the balance sheet date the company was owed £237,655 by Mekina Industries Limited. This amount is included in other debtors.

22
Directors' transactions

During the year advances were made to directors totalling £251,116 which has 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 off £333,714 has been repaid against the brought forward loan.

 

At the balance sheet date the directors owed the company £281,245 (2023: £614,959).

23
Controlling party

The parent company of Dura Composites Limited is Dura Group Limited, a company incorporated in England and Wales. Consolidated financial statements for Dura Group Limited can be obtained from Companies House.

 

2024-06-302023-04-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.301SC BurnsTJ BowmanCC BurnsMrs JB BurnsMrs JB Burns032660152023-04-012024-06-30032660152024-06-3003266015bus:Director12023-04-012024-06-3003266015bus:Director22023-04-012024-06-3003266015bus:Director32023-04-012024-06-3003266015bus:CompanySecretaryDirector12023-04-012024-06-3003266015bus:CompanySecretary12023-04-012024-06-3003266015bus:Director42023-04-012024-06-3003266015bus:RegisteredOffice2023-04-012024-06-30032660152022-04-012023-03-3103266015core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3103266015core:RetainedEarningsAccumulatedLosses2023-04-012024-06-30032660152023-03-3103266015core:PlantMachinery2024-06-3003266015core:FurnitureFittings2024-06-3003266015core:ComputerEquipment2024-06-3003266015core:MotorVehicles2024-06-3003266015core:PlantMachinery2023-03-3103266015core:FurnitureFittings2023-03-3103266015core:ComputerEquipment2023-03-3103266015core:MotorVehicles2023-03-3103266015core:CurrentFinancialInstrumentscore:WithinOneYear2024-06-3003266015core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3103266015core:Non-currentFinancialInstrumentscore:AfterOneYear2024-06-3003266015core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3103266015core:CurrentFinancialInstruments2024-06-3003266015core:CurrentFinancialInstruments2023-03-3103266015core:ShareCapital2024-06-3003266015core:ShareCapital2023-03-3103266015core:RetainedEarningsAccumulatedLosses2024-06-3003266015core:RetainedEarningsAccumulatedLosses2023-03-3103266015core:ShareCapital2022-03-3103266015core:RetainedEarningsAccumulatedLosses2022-03-3103266015core:ShareCapitalOrdinaryShares2024-06-3003266015core:ShareCapitalOrdinaryShares2023-03-3103266015core:PlantMachinery2023-04-012024-06-3003266015core:FurnitureFittings2023-04-012024-06-3003266015core:ComputerEquipment2023-04-012024-06-3003266015core:MotorVehicles2023-04-012024-06-300326601512023-04-012024-06-300326601512022-04-012023-03-3103266015core:UKTax2023-04-012024-06-3003266015core:UKTax2022-04-012023-03-3103266015core:PlantMachinery2023-03-3103266015core:FurnitureFittings2023-03-3103266015core:ComputerEquipment2023-03-3103266015core:MotorVehicles2023-03-31032660152023-03-3103266015core:Non-currentFinancialInstruments2024-06-3003266015core:Non-currentFinancialInstruments2023-03-3103266015core:WithinOneYear2024-06-3003266015core:WithinOneYear2023-03-3103266015core:BetweenTwoFiveYears2024-06-3003266015core:BetweenTwoFiveYears2023-03-3103266015bus:PrivateLimitedCompanyLtd2023-04-012024-06-3003266015bus:FRS1022023-04-012024-06-3003266015bus:Audited2023-04-012024-06-3003266015bus:FullAccounts2023-04-012024-06-30xbrli:purexbrli:sharesiso4217:GBP