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REGISTERED NUMBER: 01029729 (England and Wales)














Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 30 June 2024

for

DACS Ltd

DACS Ltd (Registered number: 01029729)






Contents of the Financial Statements
for the Year Ended 30 June 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Profit and Loss Account 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


DACS Ltd

Company Information
for the Year Ended 30 June 2024







DIRECTORS: Mr J M Gray
Mr J M Gray
Mr A P Hill
Ms L M Owens
Mr C J Gray





REGISTERED OFFICE: Unit C5 Tenth Avenue, Zone 3
Deeside Industrial Estate
Deeside
Flintshire
CH5 2UA





REGISTERED NUMBER: 01029729 (England and Wales)





AUDITORS: Thompson Wright Limited
Chartered Accountants
and Statutory Auditors
Ebenezer House
Ryecroft
Newcastle under Lyme
Staffordshire
ST5 2BE

DACS Ltd (Registered number: 01029729)

Strategic Report
for the Year Ended 30 June 2024

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

REVIEW OF BUSINESS
DACS continues to concentrate on the principal activities of design, manufacture, installation and maintain a range of high performing automation and electrical systems through the UK and Europe.

Performance for the year saw a decrease in turnover of 22%, decreasing to £9.7m from £12.5m in 2023, which was mainly due to a significant change in sales mix, and unforeseen project delays.

Despite the lower sales performance the Directors took a proactive approach to adjust the sales mix and maintain a diverse portfolio of clients within other industries.

It is a fundamental objective to maintain a sustainable growth plan, and the company took the time during the year to focus on a wider spread of market sectors.

This has been successful, with the acquisition of a smaller control panel building company in September 2024, and additional £3m of secured orders within the site installation side of the business.

KEY PERFORMANCE INDICATORS
The key performance indicator detailed above is recognised as an integral part of monitoring the business, along with gross margin and net margin.

2024 2023
Turnover growth -22.0% 234.22%
Gross profit margin 15.49% 16.9%
Net profit margin -3.44% 4.46%

It is the responsibility of the commercial team to regularly monitor and review these figures and report the results and any corrective actions to the board.

The directors are happy with the company's performance against those indicators.

FUTURE DEVELOPMENTS
The directors are keen to expand the core business, through organic sustainable growth, using new and existing customer relationships to build on their service offering.

The company invests in research and development to stay at the forefront of technological advancements and integrate new technology into their industrial automation and control systems. This field is an area of open research within the software industry, as it requires constant innovation and adaption to meet the evolving needs and challenges of industrial environments, such as increasing, complexity, efficiency, quality, safety and security.


DACS Ltd (Registered number: 01029729)

Strategic Report
for the Year Ended 30 June 2024

PRINCIPAL RISKS AND UNCERTAINTIES
There are certain risks, which could materially and adversely impact the company's results compared to expectation. A summary of the key risks is set out below. This is not an exhaustive list of the factors that could adversely impact company profitability.

INDUSTRIAL SECTOR RISKS
The rapid pace of technological advancements could lead to the emergence of alternative carbon capture solutions, which may reduce the demand for the company's offerings. Additionally, economic shifts and changing consumer preferences might impact industries' willingness to invest in sustainability technologies, posing a challenge to their growth.

EV MARKET RISKS
As the adoption of electric vehicles accelerates, the company may struggle to scale its technology quickly enough to meet the growing demand. Moreover, the intense competition within the clean energy and automotive sectors could make it difficult for the company to secure key strategic partnerships.

REGULATORY RISKS
Sudden changes in environmental policies could alter the financial viability of the company, creating uncertainty for the business model. Furthermore, keeping up with evolving standards and certifications may incur additional costs and time, which could strain resources.

FINANCIAL INSTRUMENTS
The company uses various financial instruments; these include cash and various items, such as trade debtors and trade creditors, that arise directly from its operations.

The existence of these financial instruments exposes the company to several financial risks which are described in more detail below.

The main risks arising from the company's financial instruments are categorised as market risk, credit risk and liquidity risk. The directors review and agree policies for managing these risks and they are summarised below.

MARKET RISK
Operating in a global marketplace, the company works with suppliers across Europe, exposing them to a foreign exchange risk as fluctuations in exchange rates could impact financial performance. Currency movements are continuously monitored by the company to mitigate this.

In a declining market of skilled engineers and designers, the company continues to grow its team across all areas and continuously invests in developing its employees across the country.

The market has also seen an increase in lead times for materials required for projects from suppliers leading to the company planning more in advance and gaining confirmed sales from quoted work more quickly.

CREDIT RISK
To counteract the risk of bad debts the business has increased the use of credit checking and monitoring facilities to assess the risk to the company. If a significant risk is identified, then a further review is made and where appropriate protective actions are undertaken.

LIQUIDITY RISK
The business has a very strong relationship with its bank. The company has the facilities available to meet its needs on an ongoing basis. These facilities are reviewed on a regular basis, by both the bank and the management, and are in accordance with the needs of the company.

ON BEHALF OF THE BOARD:





Mr J M Gray - Director


26 March 2025

DACS Ltd (Registered number: 01029729)

Report of the Directors
for the Year Ended 30 June 2024

The directors present their report with the financial statements of the company for the year ended 30 June 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of manufacture and repair of electrical equipment, and other information technology service activities

DIVIDENDS
No dividends will be distributed for the year ended 30 June 2024.

RESEARCH AND DEVELOPMENT
The research and development activities of the company have been outlined within the Strategic Report on page 3.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report.

Mr J M Gray
Mr J M Gray
Mr A P Hill
Ms L M Owens
Mr C J Gray

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties of the company have been outlined in the Strategic Report on page 3.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Thompson Wright Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr J M Gray - Director


26 March 2025

Report of the Independent Auditors to the Members of
DACS Ltd

Opinion
We have audited the financial statements of DACS Ltd (the 'company') for the year ended 30 June 2024 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Report of the Independent Auditors to the Members of
DACS Ltd


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Report of the Independent Auditors to the Members of
DACS Ltd


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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the Senior Statutory Auditor ensured that the audit team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the electrical servicing and installation industry;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental, other industry specific accreditations and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions; - assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
DACS Ltd


Other matters which we are required to address
In the previous accounting period, the directors of the company took advantage of audit exemption under s477 of the Companies Act. Therefore, the prior period financial statements were not subject to audit.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Richard Thompson BA FCA Dip PFS (Senior Statutory Auditor)
for and on behalf of Thompson Wright Limited
Chartered Accountants
and Statutory Auditors
Ebenezer House
Ryecroft
Newcastle under Lyme
Staffordshire
ST5 2BE

26 March 2025

DACS Ltd (Registered number: 01029729)

Profit and Loss Account
for the Year Ended 30 June 2024

2024 2023
Notes £    £   

REVENUE 3 9,754,965 12,506,870

Cost of sales 8,244,316 10,392,873
GROSS PROFIT 1,510,649 2,113,997

Administrative expenses 1,838,462 1,558,015
(327,813 ) 555,982

Other operating income 3,301 -
OPERATING (LOSS)/PROFIT 5 (324,512 ) 555,982

Interest receivable and similar income - 2,798
(324,512 ) 558,780

Interest payable and similar expenses 6 10,811 710
(LOSS)/PROFIT BEFORE TAXATION (335,323 ) 558,070

Tax on (loss)/profit 7 (1,241,917 ) 532
PROFIT FOR THE FINANCIAL YEAR 906,594 557,538

DACS Ltd (Registered number: 01029729)

Other Comprehensive Income
for the Year Ended 30 June 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 906,594 557,538


OTHER COMPREHENSIVE INCOME
EMI share options 61,216 61,216
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME FOR THE YEAR,
NET OF INCOME TAX

61,216

61,216
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 967,810 618,754

DACS Ltd (Registered number: 01029729)

Balance Sheet
30 June 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Property, plant and equipment 8 230,909 235,235

CURRENT ASSETS
Inventories 9 1,545,115 1,050,134
Debtors 10 4,374,725 3,185,433
Cash at bank 579,968 648,824
6,499,808 4,884,391
CREDITORS
Amounts falling due within one year 11 3,694,166 3,050,885
NET CURRENT ASSETS 2,805,642 1,833,506
TOTAL ASSETS LESS CURRENT LIABILITIES 3,036,551 2,068,741

CAPITAL AND RESERVES
Called up share capital 14 50,000 50,000
Capital redemption reserve 15 500 500
Other reserves 15 346,891 285,675
Retained earnings 15 2,639,160 1,732,566
SHAREHOLDERS' FUNDS 3,036,551 2,068,741

The financial statements were approved by the Board of Directors and authorised for issue on 26 March 2025 and were signed on its behalf by:





Mr J M Gray - Director


DACS Ltd (Registered number: 01029729)

Statement of Changes in Equity
for the Year Ended 30 June 2024

Called up Capital
share Retained redemption Other Total
capital earnings reserve reserves equity
£    £    £    £    £   
Balance at 1 July 2022 50,000 1,175,028 500 224,459 1,449,987

Changes in equity
Total comprehensive income - 557,538 - 61,216 618,754
Balance at 30 June 2023 50,000 1,732,566 500 285,675 2,068,741

Changes in equity
Total comprehensive income - 906,594 - 61,216 967,810
Balance at 30 June 2024 50,000 2,639,160 500 346,891 3,036,551

DACS Ltd (Registered number: 01029729)

Cash Flow Statement
for the Year Ended 30 June 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 105,841 (267,119 )
Interest paid (10,811 ) -
Interest element of hire purchase or finance
lease rental payments paid

-

(710

)
Invoice discounting charges (135,509 ) (80,954 )
Tax paid (532 ) -
Net cash from operating activities (41,011 ) (348,783 )

Cash flows from investing activities
Purchase of tangible fixed assets (20,258 ) (30,439 )
Interest received - 2,798
Net cash from investing activities (20,258 ) (27,641 )

Cash flows from financing activities
Capital repayments in year - (5,531 )
Amount introduced by directors - 4,300
Amount withdrawn by directors (7,587 ) -
Net cash from financing activities (7,587 ) (1,231 )

Decrease in cash and cash equivalents (68,856 ) (377,655 )
Cash and cash equivalents at beginning of year 2 648,824 1,026,479

Cash and cash equivalents at end of year 2 579,968 648,824

DACS Ltd (Registered number: 01029729)

Notes to the Cash Flow Statement
for the Year Ended 30 June 2024

1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
(Loss)/profit before taxation (335,323 ) 558,070
Depreciation charges 23,798 25,754
Loss on disposal of fixed assets 786 -
Invoice discounting charges 135,509 80,954
Share options 61,216 61,216
Finance costs 10,811 710
Finance income - (2,798 )
(103,203 ) 723,906
Increase in inventories (494,981 ) (335,077 )
Decrease/(increase) in trade and other debtors 59,888 (1,818,955 )
Increase in trade and other creditors 644,137 1,163,007
Cash generated from operations 105,841 (267,119 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 June 2024
30.6.24 1.7.23
£    £   
Cash and cash equivalents 579,968 648,824
Year ended 30 June 2023
30.6.23 1.7.22
£    £   
Cash and cash equivalents 648,824 1,026,479


3. ANALYSIS OF CHANGES IN NET FUNDS

Other
non-cash
At 1.7.23 Cash flow changes At 30.6.24
£    £    £    £   
Net cash
Cash at bank 648,824 (130,072 ) 61,216 579,968
648,824 (130,072 ) 61,216 579,968
Total 648,824 (130,072 ) 61,216 579,968

DACS Ltd (Registered number: 01029729)

Notes to the Financial Statements
for the Year Ended 30 June 2024

1. STATUTORY INFORMATION

DACS Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty
The critical judgements that the directors have made in the process of applying the company's accounting policies and key sources of estimation uncertainty that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.

Key judgements

Key sources of estimation uncertainty
The key assumptions concerning the future and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided and is shown net of VAT.

Turnover is recognised by reference to the stage of completion; when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred for work performed to date, as a proportion of total costs.

Recoverability of trade debtors
The company establishes a provision for trade debtors that are estimates not to be recoverable. When assessing recoverability the directors consider factors such as the aging of the trade debtors, past experience of recoverability and the credit profile of individual or groups of customers.

Assessing indicators of impairment
In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterpart credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current year.

DACS Ltd (Registered number: 01029729)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 4% on cost
Plant and machinery - 15% on reducing balance
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 20% on cost
Computer equipment - 25% on reducing balance

Gains and losses on disposals are determined by comparing the processed with the carrying amount and are recognised in profit or loss.

Determining residual values of tangible assets
Judgement is applied by management when determining the residual values for fixed assets. When determining the residual value management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

Estimated useful life of tangible assets
The company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of tangible assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.

Stocks and work in progress
The cost of stock and work in progress comprises raw materials, direct labour, other direct costs and related production overheads. Raw materials and other direct costs where appropriate are valued on a first in first out basis.

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' ans 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 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


DACS Ltd (Registered number: 01029729)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued

Foreign currency translation
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the end of each reporting period. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are recognised within the income statement during the period in which they arise.

Leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Share options
The company has an Enterprise Management Incentive scheme in place. The share options are measured at fair value at the date they were granted. The total value of the share options are charged to profit or loss evenly over the maximum option period.

3. REVENUE

The revenue and loss (2023 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of revenue by geographical market is given below:

2024 2023
£    £   
United Kingdom 9,340,934 9,633,575
Europe 105,038 2,673,295
Asia 308,993 200,000
9,754,965 12,506,870

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 2,690,343 2,427,524
Social security costs 280,286 271,205
Other pension costs 121,288 57,827
3,091,917 2,756,556

The average number of employees during the year was as follows:
2024 2023

Management 5 5
Administration 12 14
Engineering 35 33
52 52

Included within wages and salaries is the EMI options cost totalling £61,216 (2023: £61,216) disclosed in note 18.

DACS Ltd (Registered number: 01029729)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

4. EMPLOYEES AND DIRECTORS - continued

2024 2023
£    £   
Directors' remuneration 376,680 360,372
Directors' pension contributions to money purchase schemes 63,780 13,500

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 4 4

Two directors received shares under long term incentive schemes (2023 - two directors).

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 91,676 83,342
Pension contributions to money purchase schemes 18,000 -

5. OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging:

2024 2023
£    £   
Other operating leases 188,184 175,595
Depreciation - owned assets 23,798 25,754
Loss on disposal of fixed assets 786 -
Auditors' remuneration 15,000 -

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Interest on late tax 10,811 -
Hire purchase - 710
10,811 710

7. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax - 532
R&D tax credit (290,757 ) -
Total current tax (290,757 ) 532

Deferred tax (951,160 ) -
Tax on (loss)/profit (1,241,917 ) 532

DACS Ltd (Registered number: 01029729)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

7. TAXATION - continued

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
(Loss)/profit before tax (335,323 ) 558,070
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19%
(2023 - 19%)

(63,711

)

106,033

Effects of:
Expenses not deductible for tax purposes 656 532
Capital allowances in excess of depreciation - (2,267 )
Depreciation in excess of capital allowances 45,951 -
R&D enhanced deduction (228,278 ) (103,766 )
Deferred tax on losses (996,535 ) -
Total tax (credit)/charge (1,241,917 ) 532

Tax effects relating to effects of other comprehensive income

2024
Gross Tax Net
£    £    £   
EMI share options 61,216 - 61,216

2023
Gross Tax Net
£    £    £   
EMI Share options 61,216 - 61,216

8. PROPERTY, PLANT AND EQUIPMENT
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 July 2023 59,542 107,004 82,833
Additions - 8,790 7,008
Disposals - - -
At 30 June 2024 59,542 115,794 89,841
DEPRECIATION
At 1 July 2023 14,484 60,782 42,963
Charge for year 2,382 7,329 6,124
Eliminated on disposal - - -
At 30 June 2024 16,866 68,111 49,087
NET BOOK VALUE
At 30 June 2024 42,676 47,683 40,754
At 30 June 2023 45,058 46,222 39,870

DACS Ltd (Registered number: 01029729)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

8. PROPERTY, PLANT AND EQUIPMENT - continued

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 July 2023 41,376 116,973 407,728
Additions - 4,460 20,258
Disposals - (855 ) (855 )
At 30 June 2024 41,376 120,578 427,131
DEPRECIATION
At 1 July 2023 35,608 18,656 172,493
Charge for year 1,649 6,314 23,798
Eliminated on disposal - (69 ) (69 )
At 30 June 2024 37,257 24,901 196,222
NET BOOK VALUE
At 30 June 2024 4,119 95,677 230,909
At 30 June 2023 5,768 98,317 235,235

9. INVENTORIES
2024 2023
£    £   
Stocks 183,437 34,292
Work-in-progress 1,361,678 1,015,842
1,545,115 1,050,134

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 2,835,180 2,557,899
Other debtors 10,631 512,621
Directors' current accounts 7,263 -
Tax 290,757 -
Deferred tax asset 951,160 -
Prepayments and accrued income 279,734 114,913
4,374,725 3,185,433

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 1,735,687 1,822,677
Tax - 532
Social security and other taxes 254,155 261,444
VAT 136,740 171,556
Other creditors 1,152,071 234,498
Directors' current accounts - 324
Accruals and deferred income 415,513 559,854
3,694,166 3,050,885

DACS Ltd (Registered number: 01029729)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

12. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 149,693 126,374
Between one and five years 346,078 245,794
495,771 372,168

These financial commitments represents the total amount of payments remaining on leases ending in or before 2029.

13. DEFERRED TAX

£
Deferred tax provided during the yearSee note 10951,160

£

Accelerated capital allowances45,375
Losses carried forward(996,535)
Balance at 30 June 2024(951,160)

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
50,000 Ordinary £1 50,000 50,000

15. RESERVES
Capital
Retained redemption Other
earnings reserve reserves Totals
£    £    £    £   

At 1 July 2023 1,732,566 500 285,675 2,018,741
Profit for the year 906,594 906,594
Share options adjustment - - 61,216 61,216
At 30 June 2024 2,639,160 500 346,891 2,986,551

Other reserves relates to the cost of the EMI share options disclosed in note 18.

16. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 30 June 2024 and 30 June 2023:

2024 2023
£    £   
Mr J M Gray
Balance outstanding at start of year (324 ) -
Amounts advanced 7,587 -
Amounts repaid - (324 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 7,263 (324 )

DACS Ltd (Registered number: 01029729)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2024

16. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued

Amounts due to related parties are interest free and repayable on demand.

17. RELATED PARTY DISCLOSURES

During the year, the company rented premises from its pension fund at an open market rate. The amount charged during the year in respect of rent was £47,000 (2023: £43,500).

During the year, the directors of the company had a personal guarantee in place with eCapital invoice financing of £25,000 (2023: £25,000). Post year-end this has increased to £250,000 on a temporary basis.

18. ULTIMATE CONTROLLING PARTY

The controlling party is the shareholders.

There is no individual controlling party.

19. SHARE-BASED PAYMENT TRANSACTIONS

The company has a share option scheme in place for certain employees under the Enterprise Management Incentive scheme. There are options in place over 10,000 ordinary shares, to be exercised at any time within 10 years after they were granted, subject to continuous employment.

The fair value per option at the date of grant was £61.216, with a total value of £612,160.

At 30 June 2024, the total cost of the share options was £61,216 as shown in note 14.

The total to be recognised as an expense in the financial statements over the maximum option period is determined by reference to the fair value of the shares awarded allocated evenly on a time basis over the vesting period.