Company registration number 13150196 (England and Wales)
DEGC (HOLDINGS) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
DEGC (HOLDINGS) LTD
COMPANY INFORMATION
Directors
P J Ford
A R Griffiths
M E Smith
R Kang
J Russell
R G Pincham
G W Swain
K P Hynds
Company number
13150196
Registered office
1st Floor Arthur Stanley House
40-50 Tottenham Street
London
United Kingdom
W1T 4RN
Auditor
Goodman Jones LLP
1st Floor Arthur Stanley House
40-50 Tottenham Street
London
W1T 4RN
DEGC (HOLDINGS) LTD
CONTENTS
Page
Strategic report
1 - 6
Directors' report
7 - 8
Independent auditor's report
9 - 11
Group statement of comprehensive income
12
Group balance sheet
13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 32
DEGC (HOLDINGS) LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
Chairman's statement

Opening Statement

 

Our year-end financials reflect a strong performance, showcasing significant growth and resilience across key metrics. We’ve successfully navigated challenges, delivered solid returns, and positioned ourselves for continued success in the coming year. This performance highlights our team’s dedication, strategic vision, and commitment to driving sustainable growth as we continue to build long term relationships with our clients as well as our supply chain partners in delivering projects. We continue to be relied upon when clients are facing difficulties on their other projects, we are clearly being regarded as a safe alternative that can be called upon.

 

With the recent easing of planning delays and guidance in relation to the Building Safety Act now becoming understood, we have seen a number of projects that were secured but on hold, now progressing, further enhancing our order book for 2025 and 2026.

 

Our profitability in the reporting year was impacted by more supply chain insolvencies in the MEP and glazing sector. Projects impacted by these supply chain insolvencies were completed in the financial year, with Practical Completions achieved and accounts agreed. Our selection of supply chain partners is in constant review to mitigate and minimise the impact of these on-going risks.

 

Following on from our strong trading position in 2023 /24, our current financial year continues to trade positively, with a number of new projects secured on terms reflecting the trends of the previous year.

 

Looking further forward, we have already secured contracts providing c.35% of turnover for the 2025/26 financial year, some of these contracts extend in 2027.

 

It has become clear that the progress of De Group Contracting (DeGC) developing blue-chip relationships and opportunities has been accelerated by demonstrable evidence of an exemplar product that clients with clear high specification and quality expectations appreciate.

 

Trading Update

The principal activity of DeGC during the year remains construction, refurbishment and fit out performing as a Principal Contractor across London’s prime commercial, residential, hotel, hospitality and leisure sectors.

 

The values of Contracts secured range from c.£20m to c.£70m and are commonly JCT Design & Build or traditional Standard Building Contracts. Contracts generally secured through traditional single or two stage tendering process alongside hybrid & negotiated procurement routes.

 

The synergies and opportunity benefited through crossover or novation with our De Group company Deconstruct have been appreciated by many of our clients. By no means a pre-requisite, however our customers have repeatedly seen that a project enabled by Deconstruct benefits from a reliable commencement and seamless transition into a Main Contract.

 

The continuity of quality, brand and spirit is a clear benefit.

 

In the past financial year DeGC have secured and/or have been working on several high-profile projects for bluechip clients to the highest quality and specification.

 

Our current order book consists of a spread of projects.

 

Prominent examples of this are: -

 

91-92 Dean Street in Soho, London. A re-development to create an exciting new upscale shared accommodation concept mixed with modern methods of construction, comprising c.670 pod rooms. Extensive demolition and structural alterations across seven buildings each with their own character and style which are sensitively knitted together with part retained and part new façades & roofs.

DEGC (HOLDINGS) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -

The Hertford (formerly Park Lane Mews) in Mayfair, London. An 83-room hotel and 17 prime apartment scheme involving demolition and significant structural alterations, preservation and renovation of heritage structure & fabric due to its partial Grade II listed status. The scheme also includes a signature restaurant, lobby bar, café and private members’ space.

 

One Palace Green, in Kensington, London. The refurbishment of a Grade II* Listed mansion to form several high end residential apartments and a single coach house residence.

 

The Carrington, in Mayfair, London. The fit out of a 70,000sft shell for a business focussed private members club with prime commercial offices, meeting rooms, external hospitality areas, restaurants, bars, health, swimming pool, fitness and spa.

 

17-22 South Audley Street, in Mayfair, London. A mixed-use scheme with art galleries, offices and prime residential. Significant structural alterations and heritage restoration works due to the Grade II* listed status of the existing building.

 

Kingly Street, Soho, London, Commercial office fit out to CAT B standard, across a number of floors above several live operating retail outlets.

 

Staff

We continue to seek to attract the top talent to our business and are proud of our low staff turnover. In addition to recruiting experienced industry professionals we invest significantly in Trainees and Undergraduates that we will develop through our apprenticeship programme.

 

Safety, Health, Environment and Quality

 

Operating in what is widely recognised as a high-risk sector, the importance of exemplary corporate governance and occupational safety and health excellence is a cornerstone of our business.

 

Our full-time and in-house SHEQ and Sustainability team are dedicated to protecting people and helping everyone lead safer and healthier lives.

 

With a focus on our performance in our financial year 2023/24 we have seen over 600,000 hours worked on our sites with zero RIDDOR reportable accidents, this metric is just one of the measurement tools we use to benchmark our performance with our peers and others working in similarly high-risk sectors.

 

We continue to maintain and where possible enhance our management systems, with these systems independently audited and certificated by BSI to ISO 9001, ISO 14001, and ISO 45001, these further supported by holding several other industry recognised accreditations and memberships of trade bodies.

 

2023/24 DE Group Contracting received their 6th consecutive Gold Award from RoSPA for our demonstrable exemplar approach to Safety, Health, Environment and Quality.

 

We will continue to invest in our training, up-skilling, mentoring and employing best practices to ensure our industry leading standards of Health and Safety are maintained.

 

Notable statistics from 2023/24

 

DEGC (HOLDINGS) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -

Social Values, Community Engagement, and the Wellbeing or all De Group staff

 

We remain strongly committed to supporting the communities in which we operate, we continue to support the development of career opportunities in deprived areas, targeting the long term unemployed and those Not in Education, Employment or Training (NEET). As part of this support, we provide a career advisor each month to job fairs hosted by the Department of Work & Pensions alongside providing assistance in writing and presenting CV’s.

 

In support of the communities that live around the Grenfell Tower site we provide a fully funded vehicle to support small local charities by distributing goods, donations and equipment, the support including encouraging all staff to utilise volunteer hours, other initiatives undertaken during this reporting period included.

 

 

 

 

 

 

 

 

Of course, Social Value and Community Engagement is our outward commitment. This is underpinned by our support and appreciation of our employees. With active and targeted wellbeing programmes through Validium, occupational health screening, training, and mentoring at the heart of our commitment to staff, we have also trained several members of staff in mental health first aid.

 

We staunchly believe a better product is delivered by appreciated and committed staff and our willingness to support them is communicated constantly by myself and the entire leadership team. This is a core value of the De Group and key to our successes.

 

Identified Principal Risks and Uncertainties

 

We recognise liquidity and credit strength as being risks and these remain a primary focus for our Board. We maintain a rolling cashflow forecast in addition to long term planning and have adequate facilities in place should they be required. Regular dialogue is maintained with clients regarding payment.

 

Inflation has presented a real challenge over the period and whilst we have seen a reduction in the rate and the trend looks positive we endeavour to anticipate inflation when tendering our projects.

 

Insurance and Bonding

Whilst our strict management of Health and Safety has maintained a low level of claims, Insurance premiums remain high reflecting the level of cover that is sought by our clients.

 

High profile insolvencies have put pressure on the bonding market significantly reducing the number of providers and affecting the criteria. We are grateful for the continued support of our Bondsmen.

DEGC (HOLDINGS) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -

Sustainability

 

We continue our Roadmap to Net Carbon zero, with environmental sustainability embedded at corporate level, this ensures clear, robust and consistent monitoring, which in turn allows us to ‘forward-think’ our Net Zero strategy.

 

DE Group Contracting is an ISO 14001-certified organisation and as such we align with the United Nations Sustainable Development Goals (SDGs), to demonstrate this commitment and as part of our strategic goal of Net Carbon Zero by 20232 we are now implementing PAS 2060 to manage science-based targets.

 

Following the launch of our Roadmap 2023/24 year saw the following progression activities.

 

 

 

 

 

 

 

 

 

 

The re-use of materials and consumables has significantly increased over the last 12 months. We have developed and established a network of Circular Economy Partners to ensure that at every opportunity, surplus items are effectively reused, further building on the Groups Cradle to Cradle thesis.

 

Recognising that Sustainability includes what we leave behind for the next generation, we are committed to engaging with local communities and educational institutes offering practical and theoretical experiences, guidance, and general information to improve awareness wherever we can.

 

These steps will ensure that sustainability and environmental governance is a golden thread that ensures we will not only reduce our impact on the planet but also, enhance our client’s journey, assisting them in achieving environmental excellence at every opportunity.

DEGC (HOLDINGS) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 5 -

Our Defined Core Values

  1. Integrity, honesty, and Trust - always Doing the right thing with consistent moral and ethical principles.

     

  2. Accountability and Ownership – Clear Roles and Responsibilities ensures all our staff are empowered to act with accountability and confidence.

     

  3. Customer Commitment – Consistent outstanding service, products and quality ensure our clients journey earns our trust and ultimately their loyalty.

     

  4. Leadership – Is for everyone to demonstrate. It starts with authenticity, approachability, respect, and humility. A vital staff attribute.

     

  5. Our People – Whether employed by our Group in any capacity or reside or work within the Communities in which we operate, all people are our very first concern. No discrimination. Demonstrable support, encouragement, consideration, and care.

 

 

We remain committed to ensure DeGC lead our sector in quality, professionalism, and reliability.

 

We must continue to attract the best people and indeed clients.

 

Only through constantly challenging ourselves can we continue to improve, being more responsible for this generation and those that will inevitably follow.

P J Ford
De Group Chairman
24 April 2025
DEGC (HOLDINGS) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 6 -
Directors' strategic report

The directors present the strategic report for the year ended 31 October 2024.

Financial instruments and risk

The group uses financial instruments compromising bank borrowings and various net working capital items, such as trade debtors and trade creditors, to finance its operations not funded by way of equity. The main risks identified with using these financial instruments are the management of cash flow and exposure to interest rate fluctuations. The group mitigates this risk by managing cash flow and negotiating credit facilities to assist with liquidity as required.

 

The group meets its day to day working capital requirements through bank facilities which are renewed regularly. The group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the group will be able to operate within the level of its current facility. The directors are confident the facility will continue to be forthcoming on acceptable terms and, accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

Going concern

In determining the appropriate basis of preparation of the Financial Statements, the directors are required to consider whether the group can continue in operational existence for the foreseeable future.

 

The Group’s forecast and projections, taking account of reasonable possible changes in trading performance, show that the Group will be able to operate within the level of its current facilities.

 

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

Key performance indicators

2024 2023

        

 

Turnover £60,729k £54,912k

 

Gross Profit £3,946k £3,226k

 

Gross Profit % 6.5% 5.9%

EBITDA £737k £216k


EBITDA % 1,21% 0.39%

Profit/(Loss) before tax (£95k) (£481k)

 

Profit before tax % (0.2%) (0.9%)

On behalf of the board

P J Ford
Director
24 April 2025
DEGC (HOLDINGS) LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 7 -

The directors present their annual report and financial statements for the year ended 31 October 2024.

Results and dividends

The results for the year are set out on page 12.

No ordinary dividends were paid. The directors do not recommend payment of a dividend.

Directors

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

P J Ford
A R Griffiths
M E Smith
R Kang
J Russell
R G Pincham
G W Swain
K P Hynds
Qualifying third party indemnity provisions

The group has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Research and development

The group provides specialist construction solutions as a Principal Contractor primarily within Central London and in the Residential, Commercial, Retail, Hotel and Leisure sectors. In certain projects, the group carries out research and development activities to seek scientific and technological advancements to be able to complete complex solutions that were previously unattainable.

Auditor

In accordance with the company's articles, a resolution proposing that Goodman Jones LLP be reappointed as auditor of the group will be put at a General Meeting.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

DEGC (HOLDINGS) LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
Statement of directors' responsibilities

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

 

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

Strategic report

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

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.

On behalf of the board
R Kang
Director
24 April 2025
DEGC (HOLDINGS) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DEGC (HOLDINGS) LTD
- 9 -
Opinion

We have audited the financial statements of DEGC (Holdings) Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 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 group and parent 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:

DEGC (HOLDINGS) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DEGC (HOLDINGS) LTD
- 10 -
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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to industry sector regulations and unethical and prohibited business practices, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and UK Tax Legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Appropriate audit procedures in response to these risks were carried out. These procedures included:

DEGC (HOLDINGS) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DEGC (HOLDINGS) LTD
- 11 -

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members; and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures described above. The further removed instances of non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Matthew Cook (Senior Statutory Auditor)
For and on behalf of Goodman Jones LLP, Statutory Auditor
Chartered Accountants
1st Floor Arthur Stanley House
40-50 Tottenham Street
London
W1T 4RN
24 April 2025
DEGC (HOLDINGS) LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
2024
2023
Notes
£
£
Turnover
3
60,728,882
54,911,734
Cost of sales
(56,782,764)
(51,686,197)
Gross profit
3,946,118
3,225,537
Administrative expenses
(3,853,068)
(3,556,731)
Operating profit/(loss)
4
93,050
(331,194)
Interest payable and similar expenses
6
(188,328)
(150,136)
Loss before taxation
(95,278)
(481,330)
Tax on loss
7
(179,733)
(50,278)
Loss for the financial year
(275,011)
(531,608)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
DEGC (HOLDINGS) LTD
GROUP BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
8
3,649,580
4,276,930
Tangible assets
9
37,710
14,286
3,687,290
4,291,216
Current assets
Debtors
12
15,591,636
15,326,136
Cash at bank and in hand
3,653,150
73,239
19,244,786
15,399,375
Creditors: amounts falling due within one year
14
(18,735,649)
(14,298,891)
Net current assets
509,137
1,100,484
Total assets less current liabilities
4,196,427
5,391,700
Creditors: amounts falling due after more than one year
15
(1,784,849)
(2,705,111)
Net assets
2,411,578
2,686,589
Capital and reserves
Called up share capital
18
987
987
Share premium account
99,013
99,013
Merger reserve
2,692,308
2,692,308
Profit and loss reserves
(380,730)
(105,719)
Total equity
2,411,578
2,686,589
The financial statements were approved by the board of directors and authorised for issue on 24 April 2025 and are signed on its behalf by:
24 April 2025
R Kang
R G Pincham
Director
Director
DEGC (HOLDINGS) LTD
COMPANY BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
10
5,142,589
5,142,589
Current assets
Debtors
12
183,658
-
0
Creditors: amounts falling due within one year
14
(3,366,397)
(2,161,316)
Net current liabilities
(3,182,739)
(2,161,316)
Total assets less current liabilities
1,959,850
2,981,273
Creditors: amounts falling due after more than one year
15
(1,777,149)
(2,690,244)
Net assets
182,701
291,029
Capital and reserves
Called up share capital
18
987
987
Share premium account
99,013
99,013
Other reserve
67,780
184,860
Profit and loss reserves
14,921
6,169
Total equity
182,701
291,029

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £108,328 (2023 - £70,136 loss).

The financial statements were approved by the board of directors and authorised for issue on 24 April 2025 and are signed on its behalf by:
24 April 2025
R Kang
R G Pincham
Director
Director
Company Registration No. 13150196
DEGC (HOLDINGS) LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 15 -
Share capital
Share premium account
Merger reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 November 2022
987
99,013
2,692,308
425,889
3,218,197
Year ended 31 October 2023:
Loss and total comprehensive income for the year
-
-
-
(531,608)
(531,608)
Balance at 31 October 2023
987
99,013
2,692,308
(105,719)
2,686,589
Year ended 31 October 2024:
Loss and total comprehensive income for the year
-
-
-
(275,011)
(275,011)
Balance at 31 October 2024
987
99,013
2,692,308
(380,730)
2,411,578
DEGC (HOLDINGS) LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 16 -
Share capital
Share premium account
Other reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 November 2022
987
99,013
259,703
1,462
361,165
Year ended 31 October 2023:
Loss and total comprehensive income for the year
-
-
-
(70,136)
(70,136)
Transfer of interest on loan notes issued
-
-
(74,843)
74,843
-
Balance at 31 October 2023
987
99,013
184,860
6,169
291,029
Year ended 31 October 2024:
Loss and total comprehensive income for the year
-
-
-
(108,328)
(108,328)
Transfer of interest on loan notes issued
-
-
(117,080)
117,080
-
Balance at 31 October 2024
987
99,013
67,780
14,921
182,701
DEGC (HOLDINGS) LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
22
5,740,027
(3,232,584)
Income taxes paid
(50,278)
(214,377)
Net cash inflow/(outflow) from operating activities
5,689,749
(3,446,961)
Investing activities
Purchase of tangible fixed assets
(40,447)
(14,927)
Repayment of loans
(183,658)
-
Net cash used in investing activities
(224,105)
(14,927)
Financing activities
Repayment of other loans
(1,875,066)
(210,185)
Repayment of bank loans
(10,667)
(10,667)
Net cash used in financing activities
(1,885,733)
(220,852)
Net increase/(decrease) in cash and cash equivalents
3,579,911
(3,682,740)
Cash and cash equivalents at beginning of year
73,239
3,755,979
Cash and cash equivalents at end of year
3,653,150
73,239
DEGC (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
1
Accounting policies
Company information

DEGC (Holdings) Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1st Floor Arthur Stanley House, 40-50 Tottenham Street, London, W1T 4RN.

 

The group consists of DEGC (Holdings) Ltd 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.

1.2
Basis of consolidation

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.

The consolidated group financial statements consist of the financial statements of the parent company DEGC (Holdings) Ltd 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 31 October 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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

DEGC (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 19 -
1.3
Going concern

In determining the appropriate basis of preparation of the Financial Statements, the directors are required to consider whether the group can continue in operational existence for the foreseeable future.

 

The Group’s forecast and projections, taking account of reasonable possible changes in trading performance, show that the Group will be able to operate within the level of its current facilities.

 

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

1.4
Turnover

Turnover is derived entirely from contracts within the construction industry and is measured at the fair value of the consideration receivable for all works carried out under construction contracts, stated net of discounts, VAT and other sales related taxes.

 

Turnover from these contracts is recognised as a percentage of the anticipated total revenue over the period of the contract depending on stage of completion, which is certified by appropriate professionals experienced in the recognition and measurement of such works carried out.

 

Turnover is recognised when it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be reliably measured.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of a business combination over the fair value of the group's share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisitions of subsidiaries is included in Intangible Assets. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is carried at cost less accumulated amortisation and accumulated impairment losses. Goodwill amortisation is based on the profile of the expected pre-tax profits estimated to October 2028 within the cashflow forecasts used to value the business for the acquisition giving rise to the goodwill.

 

Estimates of the useful economic life of goodwill are based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses.

1.6
Tangible fixed assets

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

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:

Fixtures and fittings
25% straight line

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

DEGC (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 20 -
1.7
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.

1.8
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.

1.9
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

DEGC (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 21 -

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by reference to certified contract revenue at the reporting date as a percentage of the total anticipated revenue for each contract. Accordingly, cost of sales are adjusted through accruals and prepayments depending on their nature to align attributable profit for each contract with its percentage of completion.

 

Costs are based on agreed tender prices which are monitored and updated as the contract progresses. Provision is made on a contract by contract basis for additional costs or potential future losses as they arise.

1.10
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.

1.11
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.

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.

DEGC (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 22 -
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.

Derecognition of financial liabilities

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

1.12
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.

1.13
Taxation

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

DEGC (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 23 -
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.

1.14
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.

1.15
Retirement benefits

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

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.17

Financial risk

The company uses financial instruments comprising borrowings and various net working capital items such as trade debtors and trade creditors, to finance its operations not funded by way of equity. The main risks identified with using these financial instruments are the management of cash flow and exposure to interest rate fluctuations.

 

The company meets its day to day working capital requirements through cash balances, intercompany loans and bank facilities which are renewed regularly. The company's forecasts and projections, taking account of possible changes in trading performance, show that the the company will be able to operate within the level of its current cash balances. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

DEGC (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
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.

 

Amounts recoverable on long term contracts

 

The company applies its policy on contract accounting when recognising revenue and profit on partially completed contracts. The application of this policy requires judgements to be made in respect of the total expected costs to complete for each site. The company has in place established internal control processes to ensure that the evaluation of costs and revenues is based upon appropriate estimates. Included within other debtors are amounts recoverable on long term contracts which are recognised at the year end at £6,910,530(2023 - £8,923,776).

 

Fair value adjustment to loans

 

The group has recorded various loans provided to it at their fair value using a market rate of interest with the fair value adjustment recognised as an ‘other reserve’ in equity. The fair value adjustment is based on an assessment of the market rate interest of the various loans based on similar instruments in the market place with the same term and security. The group has made assessments as to the expected cashflows arising under the loan arrangements.

 

Goodwill

 

Goodwill represents the excess of the cost of a business combination over the fair value of the group's share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisitions of subsidiaries is included in Intangible Assets. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. Goodwill is carried at cost less accumulated amortisation and accumulated impairment losses. Goodwill amortisation is calculated by applying the straight-line method to its estimated useful life of ten years.

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Building contracing services
60,728,882
54,911,734
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
60,728,882
54,911,734
DEGC (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 25 -
4
Operating profit/(loss)
2024
2023
£
£
Operating profit/(loss) for the year is stated after charging:
Fees payable to the group's auditor for the audit of the group's financial statements
4,800
4,600
Depreciation of owned tangible fixed assets
17,023
8,314
Amortisation of intangible assets
627,350
538,626
5
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
39
40
8
8

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,591,585
2,927,390
-
0
-
0
Social security costs
448,476
350,460
-
-
Pension costs
116,181
82,374
-
0
-
0
4,156,242
3,360,224
-
0
-
0
6
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
188,328
150,136
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
179,733
50,278
DEGC (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
7
Taxation
(Continued)
- 26 -

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

2024
2023
£
£
Loss before taxation
(95,278)
(481,330)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.52%)
(23,820)
(108,396)
Tax effect of expenses that are not deductible in determining taxable profit
56,827
7,098
Unutilised tax losses carried forward
-
0
33,811
Amortisation on assets not qualifying for tax allowances
156,838
121,299
Other non-reversing timing differences
(10,112)
(3,534)
Taxation charge
179,733
50,278
8
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 November 2023 and 31 October 2024
5,580,170
Amortisation and impairment
At 1 November 2023
1,303,240
Amortisation charged for the year
627,350
At 31 October 2024
1,930,590
Carrying amount
At 31 October 2024
3,649,580
At 31 October 2023
4,276,930
The company had no intangible fixed assets at 31 October 2024 or 31 October 2023.

More information on impairment movements in the year is given in note .

Goodwill amortisation is based on the profile of the expected pre-tax profits estimated to October 2028, within the cashflow forecasts used to value the business for the acquisition giving rise to the goodwill. This represented an 8 year period to October 2028.

DEGC (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 27 -
9
Tangible fixed assets
Group
Fixtures and fittings
£
Cost
At 1 November 2023
34,441
Additions
40,447
At 31 October 2024
74,888
Depreciation and impairment
At 1 November 2023
20,155
Depreciation charged in the year
17,023
At 31 October 2024
37,178
Carrying amount
At 31 October 2024
37,710
At 31 October 2023
14,286
The company had no tangible fixed assets at 31 October 2024 or 31 October 2023.
10
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
11
-
0
-
0
5,142,589
5,142,589
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 November 2023 and 31 October 2024
5,142,589
Carrying amount
At 31 October 2024
5,142,589
At 31 October 2023
5,142,589
DEGC (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 28 -
11
Subsidiaries

Details of the company's subsidiaries at 31 October 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
De Group Contracting (Holdings) Limited
England and Wales
Ordinary
100
-
De Group Contracting Limited
England and Wales
Ordinary
0
100
Develop UK (Space) Limited
England and Wales
Ordinary
0
100
De Specialist Works Limited
England and Wales
Ordinary
0
100
The principal activity of these undertakings for the last relevant financial year was as follows:
Subsidiary undertakings
Nature of business
De Group Contracting (Holdings) Limited
Holding company
De Group Contracting Limited
Construction services
Develop UK (Space) Limited
Dormant
De Specialist Works Limited
Dormant

 

The registered office of the above named subsidiaries is 1st Floor Arthur Stanley House, 40-50 Tottenham Street, London, W1T 4RN.

12
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,414,604
2,855,231
-
0
-
0
Gross amounts owed by contract customers
6,910,530
8,923,776
-
0
-
0
Other debtors
557,789
2,390,445
183,658
-
0
14,882,923
14,169,452
183,658
-
Amounts falling due after more than one year:
Trade debtors
708,713
1,156,684
-
0
-
0
Total debtors
15,591,636
15,326,136
183,658
-
DEGC (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 29 -
13
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
15,033,847
12,019,436
183,658
-
Carrying amount of financial liabilities
Measured at amortised cost
18,614,393
15,330,135
5,143,546
4,851,560
14
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
16
9,100
9,428
-
0
-
0
Other borrowings
16
-
0
844,891
-
0
844,891
Trade creditors
6,003,761
4,977,531
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
3,064,489
1,082,594
Corporation tax payable
179,733
50,278
-
0
-
0
Other taxation and social security
1,726,372
1,623,589
-
-
Other creditors
2,936,119
25,332
-
0
-
0
Accruals and deferred income
7,880,564
6,767,842
301,908
233,831
18,735,649
14,298,891
3,366,397
2,161,316
15
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
16
7,700
18,039
-
0
-
0
Other borrowings
16
1,777,149
2,687,072
1,777,149
2,690,244
1,784,849
2,705,111
1,777,149
2,690,244
DEGC (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 30 -
16
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
16,800
27,467
-
0
-
0
Other loans
1,777,149
3,531,963
1,777,149
3,535,135
1,793,949
3,559,430
1,777,149
3,535,135
Payable within one year
9,100
854,319
-
0
844,891
Payable after one year
1,784,849
2,705,111
1,777,149
2,690,244

Interest and arrangement fees on the bank loan are paid for by the government for the first 12 months, with an annual interest rate of 2.5% payable by the group thereafter. The directors consider the interest rate on the loan to be at a market rate and as such have not recognised the immaterial impact of discounting the loan to present value. The loan will be fully repaid by June 2026.

Included within other loans are loans notes issued at a par value of £5,000,000, which are interest bearing and are redeemable in full on or before 31 October 2028. The loan notes are convertible into fully paid shares if not redeemed at 31 October 2028. The conversion rate of the loan notes is at the par monetary value.

 

The loan notes are secured by fixed and floating charges over the company’s assets and there is a cross guarantee arrangement in relation to the company’s subsidiaries.

 

The loan notes have been recorded at their fair value using a market rate of interest with the fair value adjustment recognised as an ‘other reserve’ in equity.

 

It has been agreed with the shareholders and the loan note holders that should the group come into financial difficulty in the future, the group will not make repayments on the balances due.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
116,181
82,374

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.

18
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
98,675
98,675
987
987
DEGC (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 31 -
19
Directors' transactions

At the balance sheet date, there was an amount due from a director of £183,658 (2023: £Nil). This balance did not bear any interest and was repaid after the year end.

20
Related party transactions
Transactions with related parties

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

Sales
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Companies controlled by common directors and shareholders
3,804,520
404,833
5,097,526
5,097,526

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Companies controlled by common directors and shareholders
2,886,111
-

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Companies controlled by common directors and shareholders
146,035
1,163,019

The total remuneration for key management personnel for the year totalled £432,319 (2023: £502,252).

21
Controlling party

The group is controlled by its directors and shareholders.

DEGC (HOLDINGS) LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 32 -
22
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Loss for the year after tax
(275,011)
(531,608)
Adjustments for:
Taxation charged
179,733
50,278
Finance costs
188,328
150,136
Amortisation and impairment of intangible assets
627,350
538,626
Depreciation and impairment of tangible fixed assets
17,023
8,314
Movements in working capital:
Increase in debtors
(81,843)
(3,303,901)
Increase/(decrease) in creditors
5,084,447
(144,429)
Cash generated from/(absorbed by) operations
5,740,027
(3,232,584)
23
Analysis of changes in net funds/(debt) - group
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
73,239
3,579,911
3,653,150
Borrowings excluding overdrafts
(3,559,430)
1,765,481
(1,793,949)
(3,486,191)
5,345,392
1,859,201
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