Company registration number 11698222 (England and Wales)
DMS HOLDINGS (SOUTH WEST) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
DMS HOLDINGS (SOUTH WEST) LIMITED
COMPANY INFORMATION
Directors
Mr HJ May
Mr EJ May
Company number
11698222
Registered office
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
Auditor
RRL LLP
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
Business address
Goonvean Works
St Stephen
ST AUSTELL
Cornwall
PL26 7QF
DMS HOLDINGS (SOUTH WEST) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 36
DMS HOLDINGS (SOUTH WEST) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

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

Principal activities

The group is a producer of concrete products for the construction industry in the South West region.

Review of the business

There has been continuing steady demand from the construction industry for the group’s products and the company continued to trade well during 2023/24, despite external pressures from the general UK economic environment such as high levels of inflation. The business managed these well as evidenced by a consistent gross profit margin.

 

Significant investment of £835k was undertaken by the group during the previous year in upgrading and expanding the block plant at the Cornwall site, with further investment in new lorries in 2023/24.  Continued profitability has allowed for the group to operate and invest in the future without any requirement for bank finance.

 

The 50 % holding in joint venture, South Molton Block Company Limited, became a fully owned subsidiary company during the year.

 

A new subsidiary company, DMS Moorcroft Limited, was formed in the year to acquire a new block making plant in a new area, to further expand the group's offerings.

 

The directors consider the group to be in a good trading position with forecasted sales for 2024/25 anticipated to be fairly similar to the current year, however, this is dependent upon the construction industry and its demand for products.  With a strong balance sheet, the directors believe the group is in a good position to continue to adjust to any future changes and any uncertainty due to the general UK economic environment.

Principal risks and uncertainties

Levels of activity are dependent upon those experienced within the industry and consequently the major risks to the business lies with the fluctuations in demand from the construction activity, which is further impacted by the general UK economic environment and high levels of inflation.

Development and performance

The group closely monitors its financial performance and the market place in which it operates and aligned to a strategy of maintaining a strong balance sheet and minimal external financing believes it can manage any downturn in activity levels satisfactorily.

Key performance indicators

The group’s key financial performance indicators for the year during the year were as follows:

 

                                                                                                2024                                                     2023

Turnover                                                                           £13,480,179          £17,582,960       

Gross profit margin                                                          25.6%                                                  25.3%

Profit before taxation                                                       £2,050,415         £3,564,131

On behalf of the board

Mr HJ May
Director
14 April 2025
DMS HOLDINGS (SOUTH WEST) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 September 2024.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £35,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr HJ May
Mr EJ May
Financial instruments
Liquidity risk

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

Credit risk

Investments of cash surpluses 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.

Future developments

During the year the group has acquired the remaining 50% shareholding of South Molton Block Company Limited which the directors consider will enable the further expansion and development of markets. This, along with the significant investment in the upgrade of the block plant at the Cornwall site, will continue to strengthen the group’s position as a leading supplier of concrete products in the Cornwall and Devon region.  Identified risks will continue to be well managed and the directors have a clear strategy to maintain the group’s strong reputation.  The group is in a good financial position and the directors are confident in the group’s ability to maintain and build on this position.

Auditor

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

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 auditor of the company 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 auditor of the company 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.

DMS HOLDINGS (SOUTH WEST) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
On behalf of the board
Mr HJ May
Director
14 April 2025
DMS HOLDINGS (SOUTH WEST) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DMS HOLDINGS (SOUTH WEST) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DMS HOLDINGS (SOUTH WEST) LIMITED
- 5 -
Opinion

We have audited the financial statements of DMS Holdings (South West) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

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:

DMS HOLDINGS (SOUTH WEST) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DMS HOLDINGS (SOUTH WEST) LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

DMS HOLDINGS (SOUTH WEST) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DMS HOLDINGS (SOUTH WEST) LIMITED
- 7 -

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.

 

As part of our audit work, we obtained an understanding of the legal and regulatory frameworks applicable to the group and parent company and the sector in which they operate. We determined that the laws and regulations most significant to the group and parent company, as well as the laws and regulations that have a direct impact on the preparation of the financial statements are: the Companies Act 2006, British Block Standards, health and safety regulations and employment legislation.

 

The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

 

We also communicate relevant identified laws and regulations and potential fraud risk to all engagement team members and remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

Our audit approach also considered the opportunities and incentives that may exist within the group and parent company for fraud and identified the greatest potential for fraud being in respect of cut off and completion risk around revenue recognition. Under ISA (UK) we are also required to undertake procedures to respond to the risk of management override of controls. Our procedures included the following:

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

DMS HOLDINGS (SOUTH WEST) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DMS HOLDINGS (SOUTH WEST) LIMITED
- 8 -

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.

Nicholas Skerratt FCA CTA
For and on behalf of
14 April 2025
RRL LLP
Chartered Accountants
Statutory Auditor
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
DMS HOLDINGS (SOUTH WEST) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
13,480,179
17,582,960
Cost of sales
(10,027,481)
(13,132,495)
Gross profit
3,452,698
4,450,465
Administrative expenses
(2,091,632)
(1,437,662)
Other operating income
47
47
Operating profit
4
1,361,113
3,012,850
Share of results of associates
(2,677)
76,002
Interest receivable and similar income
8
694,151
476,968
Interest payable and similar expenses
9
(2,172)
(1,689)
Profit before taxation
2,050,415
3,564,131
Tax on profit
10
(494,481)
(786,620)
Profit for the financial year
1,555,934
2,777,511
Profit for the financial year is all attributable to the owner of the parent company.
Total comprehensive income for the year is all attributable to the owner of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

DMS HOLDINGS (SOUTH WEST) LIMITED
GROUP BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
201,160
-
0
Tangible assets
13
4,521,976
2,709,450
Investments
14
-
0
287,082
4,723,136
2,996,532
Current assets
Stocks
16
702,109
400,211
Debtors
17
12,406,665
6,686,776
Cash at bank and in hand
5,771,661
10,463,225
18,880,435
17,550,212
Creditors: amounts falling due within one year
18
(3,683,088)
(2,536,153)
Net current assets
15,197,347
15,014,059
Total assets less current liabilities
19,920,483
18,010,591
Creditors: amounts falling due after more than one year
19
(2,708)
-
Provisions for liabilities
Deferred tax liability
21
515,800
129,600
(515,800)
(129,600)
Net assets
19,401,975
17,880,991
Capital and reserves
Called up share capital
23
120
120
Capital redemption reserve
50
-
0
Profit and loss reserves
19,401,805
17,880,871
Total equity
19,401,975
17,880,991

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

The financial statements were approved by the board of directors and authorised for issue on 14 April 2025 and are signed on its behalf by:
14 April 2025
Mr HJ May
Director
Company registration number 11698222 (England and Wales)
DMS HOLDINGS (SOUTH WEST) LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
55
53
Current assets
Debtors
17
13,144,175
13,244,239
Cash at bank and in hand
3,847,899
12,532
16,992,074
13,256,771
Creditors: amounts falling due within one year
18
(990,979)
(33,274)
Net current assets
16,001,095
13,223,497
Net assets
16,001,150
13,223,550
Capital and reserves
Called up share capital
23
120
120
Profit and loss reserves
16,001,030
13,223,430
Total equity
16,001,150
13,223,550

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,812,600 (2023 - £3,245,264 profit).

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

The financial statements were approved by the board of directors and authorised for issue on 14 April 2025 and are signed on its behalf by:
14 April 2025
Mr HJ May
Director
Company registration number 11698222 (England and Wales)
DMS HOLDINGS (SOUTH WEST) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2022
120
-
0
15,143,360
15,143,480
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
2,777,511
2,777,511
Dividends
11
-
-
(40,000)
(40,000)
Balance at 30 September 2023
120
-
0
17,880,871
17,880,991
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
1,555,934
1,555,934
Dividends
11
-
-
(35,000)
(35,000)
Other movements
-
50
-
50
Balance at 30 September 2024
120
50
19,401,805
19,401,975
DMS HOLDINGS (SOUTH WEST) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
120
10,018,166
10,018,286
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
3,245,264
3,245,264
Dividends
11
-
(40,000)
(40,000)
Balance at 30 September 2023
120
13,223,430
13,223,550
Year ended 30 September 2024:
Profit and total comprehensive income
-
2,812,600
2,812,600
Dividends
11
-
(35,000)
(35,000)
Balance at 30 September 2024
120
16,001,030
16,001,150
DMS HOLDINGS (SOUTH WEST) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
30
(2,671,877)
2,672,232
Interest paid
(2,172)
(1,689)
Income taxes paid
(776,833)
(744,258)
Net cash (outflow)/inflow from operating activities
(3,450,882)
1,926,285
Investing activities
Purchase of business
(90,607)
-
Purchase of tangible fixed assets
(2,159,181)
(1,353,802)
Proceeds from disposal of tangible fixed assets
35,500
(1,470)
Proceeds from disposal of associates
284,405
200,000
Repayment of loans
30,000
-
Interest received
694,151
476,968
Net cash used in investing activities
(1,205,732)
(678,304)
Financing activities
Redemption of shares
50
-
0
Dividends paid to equity shareholders
(35,000)
(40,000)
Net cash used in financing activities
(34,950)
(40,000)
Net (decrease)/increase in cash and cash equivalents
(4,691,564)
1,207,981
Cash and cash equivalents at beginning of year
10,463,225
9,255,244
Cash and cash equivalents at end of year
5,771,661
10,463,225
DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
1
Accounting policies
Company information

DMS Holdings (South West) Limited (“the company”) is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is Peat House, Newham Road, TRURO, Cornwall, TR1 2DP. The principal place of business is Goonvean Works, St Stephen, ST AUSTELL, Cornwall, PL26 7QF.

 

The group consists of DMS Holdings (South West) Limited and all of its subsidiaries.

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 are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company DMS Holdings (South West) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

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

1.5
Turnover

Turnover represents revenue recognised in the financial statements. Revenue is recognised when the company fulfils its contractual obligations to customers by supplying goods and excludes value added tax.

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.

DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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.

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:

Freehold land and buildings
No depreciation
Leasehold land and buildings
Over the term of the lease
Plant and machinery
15% straight line per annum
Fixtures, fittings and equipment
25% straight line per annum
Motor vehicles
16.66% straight line per annum

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

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.10
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.

1.11
Cash and cash equivalents

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.

1.12
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

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.

DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -
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 group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

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

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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

1.15
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.

1.16
Retirement benefits

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

DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 22 -
1.17
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 leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

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

 

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

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
13,480,179
17,582,960
2024
2023
£
£
Other revenue
Interest income
694,151
476,968
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
580,219
434,096
Depreciation of tangible fixed assets held under finance leases
13,000
-
(Profit)/loss on disposal of tangible fixed assets
(22,050)
15,958
Amortisation of intangible assets
50,290
-
Operating lease charges
184,033
98,842
DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
2,000
1,750
Audit of the financial statements of the company's subsidiaries
21,850
13,800
23,850
15,550
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
29
22
-
-
Administration
15
14
-
-
Total
44
36
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,393,312
1,263,757
-
0
-
0
Social security costs
147,659
134,172
-
-
Pension costs
34,120
28,540
-
0
-
0
1,575,091
1,426,469
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
66,858
48,067
Company pension contributions to defined contribution schemes
1,268
1,176
68,126
49,243

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
515,099
403,582
Other interest income
179,052
73,386
Total income
694,151
476,968
9
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
1,969
-
Other interest
203
1,689
Total finance costs
2,172
1,689
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
123,018
740,920
Adjustments in respect of prior periods
82
-
0
Group tax relief
41,383
-
0
Total current tax
164,483
740,920
Deferred tax
Origination and reversal of timing differences
329,998
45,700
Total tax charge
494,481
786,620

The main tax rate changed on 1 April 2023 from 19% to 25%

DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
10
Taxation
(Continued)
- 25 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
2,050,415
3,564,131
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
512,604
784,400
Tax effect of expenses that are not deductible in determining taxable profit
9,936
5,093
Tax effect of income not taxable in determining taxable profit
-
0
27,290
Tax effect of utilisation of tax losses not previously recognised
6,665
-
0
Unutilised tax losses carried forward
146,947
-
0
Group relief
22,497
-
0
Permanent capital allowances in excess of depreciation
(547,079)
(31,488)
Amortisation on assets not qualifying for tax allowances
12,573
-
0
Under/(over) provided in prior years
82
-
0
Tax at marginal rate
(282)
(358)
Dividend income
-
(44,017)
Origination and reversal of timing differences
329,998
45,700
Other
540
-
0
Taxation charge
494,481
786,620
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
35,000
40,000
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 October 2023
-
0
Additions - business combinations
251,450
At 30 September 2024
251,450
Amortisation and impairment
At 1 October 2023
-
0
Amortisation charged for the year
50,290
At 30 September 2024
50,290
DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
12
Intangible fixed assets
(Continued)
- 26 -
Carrying amount
At 30 September 2024
201,160
At 30 September 2023
-
0
The company had no intangible fixed assets at 30 September 2024 or 30 September 2023.
DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Assets under construction
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 October 2023
235,061
929,272
835,197
5,926,335
89,093
851,373
8,866,331
Additions
-
0
-
0
81,083
1,624,971
3,680
709,461
2,419,195
Disposals
-
0
-
0
-
0
(112,000)
-
0
(25,989)
(137,989)
Transfers
-
0
317,268
(916,280)
595,263
3,749
-
0
-
0
At 30 September 2024
235,061
1,246,540
-
0
8,034,569
96,522
1,534,845
11,147,537
Depreciation and impairment
At 1 October 2023
-
0
186,615
-
0
5,137,364
67,888
765,014
6,156,881
Depreciation charged in the year
-
0
13,639
-
0
453,788
11,093
114,699
593,219
Eliminated in respect of disposals
-
0
-
0
-
0
(98,550)
-
0
(25,989)
(124,539)
At 30 September 2024
-
0
200,254
-
0
5,492,602
78,981
853,724
6,625,561
Carrying amount
At 30 September 2024
235,061
1,046,286
-
0
2,541,967
17,541
681,121
4,521,976
At 30 September 2023
235,061
742,657
835,197
788,971
21,205
86,359
2,709,450
The company had no tangible fixed assets at 30 September 2024 or 30 September 2023.
DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
13
Tangible fixed assets
(Continued)
- 28 -

The carrying value of land and buildings comprises:

Group
Company
2024
2023
2024
2023
£
£
£
£
Freehold
235,061
235,061
-
0
-
0
Short leasehold
1,046,286
742,657
-
0
-
0
1,281,347
977,718
-
-

Properties rented to another group entity have been accounted for using the cost model. The carrying value of these properties included within company tangible fixed assets is £235,061. The carrying value of these properties included within group tangible fixed assets is £235,061.

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and machinery
92,083
-
0
-
0
-
0

All land, buildings, and other tangible fixed assets of the company with a carrying amount of £3,546,711 (2023: £2,474,389) have been pledged to secure borrowings of the subsidiary, Denis May & Sons Limited. Denis May & Sons Limited is not allowed to pledge these assets as security for other borrowings.

14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
55
3
Investments in associates
-
0
287,082
-
0
50
-
0
287,082
55
53
DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
14
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 October 2023
287,082
Disposals
(287,082)
At 30 September 2024
-
Carrying amount
At 30 September 2024
-
At 30 September 2023
287,082
Movements in fixed asset investments
Company
Shares in subsidiaries and associates
£
Cost or valuation
At 1 October 2023
53
Additions
2
At 30 September 2024
55
Carrying amount
At 30 September 2024
55
At 30 September 2023
53
15
Subsidiaries

Details of the company's subsidiaries at 30 September 2024 are as follows:

DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
15
Subsidiaries
(Continued)
- 30 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Denis May & Sons Limited
England and Wales
Manufacture of concrete blocks
Ordinary
100.00
DMS Freehold Limited
England and Wales
Letting and operating of real estate
Ordinary
100.00
DMS South Molton Limited
England and Wales
Manufacture of concrete blocks
Ordinary
100.00
South Molton Block Company Limited
England and Wales
Manufacture of concrete products for construction purposes
Ordinary
100.00
DMS Moorcroft Limited
England and Wales
Manufacture of concrete blocks
Ordinary
100.00
DMS Cornwall Limited
England and Wales
Manufacture of concrete blocks
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Denis May & Sons Limited
3,142,145
1,297,396
DMS Freehold Limited
38,450
12,788
DMS South Molton Limited
1,530
1,529
South Molton Block Company Limited
48,741
15,734
DMS Moorcroft Limited
(31,145)
0
(31,146)
0
DMS Cornwall Limited
1
-
0

All subsidiary companies have the same registered office as the parent company.

16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
702,109
400,211
-
0
-
0
DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 31 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,663,094
3,432,762
-
0
-
0
Corporation tax recoverable
350,712
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
4,945,552
10,199,657
Other debtors
80,141
621,649
-
0
525,000
Prepayments and accrued income
114,095
112,783
-
0
-
0
4,208,042
4,167,194
4,945,552
10,724,657
Amounts falling due after more than one year:
Amount owed by related parties
8,198,623
2,519,582
8,198,623
2,519,582
Total debtors
12,406,665
6,686,776
13,144,175
13,244,239
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
20
32,500
-
0
-
0
-
0
Trade creditors
2,268,475
1,615,846
-
0
3,000
Amounts owed to group undertakings
-
0
-
0
1
1
Corporation tax payable
123,018
384,656
92,267
14,212
Other taxation and social security
85,409
220,049
-
-
Other creditors
896,893
57,778
891,511
10,961
Accruals and deferred income
276,793
257,824
7,200
5,100
3,683,088
2,536,153
990,979
33,274
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
20
2,708
-
0
-
0
-
0
DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 32 -
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
32,500
-
0
-
0
-
0
In two to five years
2,708
-
0
-
0
-
0
35,208
-
-
-

Finance lease payments represent rentals payable by the company or group 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 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Finance leases are secured on the assets to which they relate.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
516,407
129,600
Retirement benefit obligations
(607)
-
515,800
129,600
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
129,600
-
Charge to profit or loss
386,200
-
Liability at 30 September 2024
515,800
-

The expected net reversal of deferred tax assets and liabilities in 2024 is £128,700 (2023: £Nil) being the expected movement in accelerated capital allowances.

DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 33 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,120
28,540

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Included in other creditors is £6,870 (2023: £6,303) owed to defined contribution pension schemes,

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
120
120
120
120

The company has one class of ordinary shares which carry no right to fixed income.

24
Acquisition of a business

On 2 October 2023, 50 of the shares in South Molton Block Company Limited were cancelled leaving the remaining 50 shares being wholly owned by DMS Holdings (South West) Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
224,806
-
224,806
Inventories
203,873
-
203,873
Trade and other receivables
295,121
-
295,121
Cash and cash equivalents
196,475
-
196,475
Trade and other payables
(828,441)
-
(828,441)
Deferred tax
(56,202)
-
(56,202)
Total identifiable net assets
35,632
-
35,632
Goodwill
251,450
Total consideration
287,082
The consideration was satisfied by:
£
Cash
287,082
DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
24
Acquisition of a business
(Continued)
- 34 -
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
1,838,552
Profit after tax
15,734
25
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
86,450
46,450
-
-
Between two and five years
345,800
185,800
-
-
In over five years
402,625
249,075
-
-
834,875
481,325
-
-
26
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
378,000
96,399
-
-
27
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
137,627
100,433
DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
27
Related party transactions
(Continued)
- 35 -
Transactions with related parties

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

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Carnsworth Limited
23
119
714
-
South Molton Block Company Limited
-
934,924
-
1,724,429

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
South Molton Block Company Limited
-
203,535

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Carnsworth Limited
8,198,623
2,519,582
South Molton Block Company Limited
-
90,374

The group trades with South Molton Block Company Limited , a company which (until 2 October 2023) was 50% owned by DMS Holdings (South West) Limited.  Transactions were at arms length and on usual trade terms.

The group also trades with Carnsworth Limited, a company which is controlled by Mr HJ May, director. Transactions are at arms length and on usual trade terms.

 

Other information

Group

 

The group has taken advantage of the exemption from disclosing transactions with wholly owned group undertakings.

 

 

Company

 

The company has taken advantage of the exemption from disclosing transactions with wholly owned group undertakings.

DMS HOLDINGS (SOUTH WEST) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 36 -
28
Directors' transactions

Group

 

Dividends totalling £35,000 (2023: £40,000) were paid in the year in respect of shares held by the group's directors.

 

During the year there were transactions with directors. At the year end the group owed £891,155 (2023: £10,961) to the directors.

29
Controlling party

The ultimate controlling party is HJ May, director.

30
Cash (absorbed by)/generated from group operations
2024
2023
£
£
Profit for the year after tax
1,555,934
2,777,511
Adjustments for:
Share of results of associates and joint ventures
2,677
(76,002)
Taxation charged
494,481
786,620
Finance costs
2,172
1,689
Investment income
(694,151)
(476,968)
(Gain)/loss on disposal of tangible fixed assets
(22,050)
15,958
Amortisation and impairment of intangible assets
50,290
-
Depreciation and impairment of tangible fixed assets
593,219
434,096
Movements in working capital:
Increase in stocks
(98,025)
(74,213)
Increase in debtors
(5,104,056)
(385,005)
Increase/(decrease) in creditors
547,632
(331,454)
Cash (absorbed by)/generated from operations
(2,671,877)
2,672,232
31
Analysis of changes in net funds - group
1 October 2023
Cash flows
New finance leases
30 September 2024
£
£
£
£
Cash at bank and in hand
10,463,225
(4,691,564)
-
5,771,661
Obligations under finance leases
-
-
(35,208)
(35,208)
10,463,225
(4,691,564)
(35,208)
5,736,453
32
Auditor's liability limitation agreement

For the year ended 30 September 2024 the company entered into a liability limitation agreement with its auditors, the principal terms of which limit the liability of the auditors to £5,000,000 to relation to their responsibilities as auditors of the company. The date this was agreed by the company was 16 December 2024.

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