REGISTERED NUMBER: 13497052 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the year ended |
30 September 2024 |
for |
DLS Holdings (Grantham) Limited |
REGISTERED NUMBER: 13497052 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the year ended |
30 September 2024 |
for |
DLS Holdings (Grantham) Limited |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Contents of the Consolidated Financial Statements |
for the year ended 30 September 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
DLS Holdings (Grantham) Limited |
Company Information |
for the year ended 30 September 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
Strelley Hall |
Main Street |
Strelley |
Nottingham |
NG8 6PE |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Group Strategic Report |
for the year ended 30 September 2024 |
The directors present their strategic report of the company and the group for the year ended 30 September 2024. |
The directors recognise their duties under the Companies Act 2006 (Strategic Report and Directors' Report Regulations 2013). Having undertaken a review of the requirements of this legislation and on the basis that DLS Holdings (Grantham) Limited is an unquoted company with 3 shareholders a limited report is provided. This is to reduce the risk of a detailed report on group activity being seriously prejudicial to the interests of the group. |
REVIEW OF BUSINESS |
The principal activities of the group during the year were design, manufacture and supply of injection moulded products along with supplementary sales of products sourced from suppliers. The principal markets served are the leisure vehicle market and medical supplies. These activities have not changed materially during the year. The group's activities remain organised into three distinct areas; |
Direct Leisure Supplies Ltd - DLS Plastics: The design, manufacture and supply of products to serve the leisure vehicle market. |
Direct Leisure Supplies Ltd - DLS Medical: The manufacture and supply of products for the single use medical supplies market. |
Daneplast Limited - The supply of trade moulding services to a variety of customers many involved in the supply of shop fittings and retail although increasingly diverse due to ongoing sales effort. |
The group has continued to maintain a wide range of activities to support customers. The sales of the group have decreased due to a significant downturn in the leisure industry. |
Trading during the year resulted in an operating profit for the year of £2,198,736 (2023: £3,285,376). This is seen as a reasonable result. Total comprehensive income for the year (profit after tax) was £1,820,165 (2023: £2,713,166). |
The consolidated balance sheet on page 10 of the financial statements shows the net assets of the group at £9,005,144 (2023: £8,984,979). |
A small number of key performance indicators are maintained to measure business performance. In addition to the usual ones such as sales and margins, as reported in the consolidated income statement, the group also monitors customers orders on time. This year the key performance indicators reflect the social and economic challenges we are facing in the current times. Overall the business has performed well maintaining a good level of service to customers. |
During the year work has continued to develop the internal administration systems and other improvements aimed at increasing productivity and efficiency. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The risks to the business are managed through the extensive use of ISO registered procedures and management thereof. The subsidiaries have a history of generating profit and business development is funded from cashflow. Debtor default is a concern but careful attention and constant customer communication help to ameliorate this The subsidiaries have a wide customer base although historic consolidation in the leisure vehicle market has eroded this over time. During the year there was little evidence that this trend is continuing although the threat remains. The subsidiaries have a small market share in the medical supplies area. Significant effort has been applied to improve trading margins rather than simply chase sales turnover. The group has sufficient reserves to shield it from the effects of adverse trading conditions. The group has a strong unencumbered asset base and a consequent opportunity to fund operations through borrowing should that be necessary. |
Uncertainty over the UK domestic economy is a concern with the prospect of a disruptive government adding regulation and a higher tax burden to the business. In particular measures relating to employment of staff could lead to higher administration and further erosion of business competitiveness when compared with foreign competition. The folly of the UK's pursuit of "Net Zero" is a concern as ill thought out and illogical policies risk adding significant cost burdens to UK businesses when compared to foreign competitors. |
Global unrest and political strife, the cost of living crisis, inflation are all concerns and risks to the business. The business is unable to directly affect any of these global phenomena. Consistent effort is put into evaluating external factors and managing the business accordingly. |
Social media driven virtue signalling and ignorant political edicts are a threat to a business using high levels of energy and with the word "plastic" on its website. It is hoped that despite this some sense will prevail and the need for responsible, well managed UK manufacturing will remain. With the apparently feckless Labour Government now in power one is left wondering, "what's the point?" |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Group Strategic Report |
for the year ended 30 September 2024 |
DEVELOPMENT AND PERFORMANCE |
Overall group performance demonstrates strong business resilience in adverse trading conditions. The management and staff continue to work hard to meet customer expectations, and ensure the business remains in a strong position and able to take advantage of new opportunities that emerge in the future. |
AFTER DATE MATTERS |
Activity is taking place to consolidate the group onto two sites (from three). After the year end, the subsidiary Daneplast Limited moved its operations from its current premises into the premises of its parent company, Direct Leisure Supplies Limited. The directors have carried out an impairment review at the year end and consider the carrying value to be materially correct. This change will improve productivity and management effectiveness. The reduction in employee headcount and other costs (eg. business rates) will assist in ameliorating some of the punitive taxation and energy policies facing small businesses in the UK. |
Otherwise, there were no material events to report. |
Further information relating to future plans for the business is confidential. |
ON BEHALF OF THE BOARD: |
26 March 2025 |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Report of the Directors |
for the year ended 30 September 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 September 2024. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 September 2024 was £1,800,000 (2023: £1,290,000). |
Dividends paid after the consolidated balance sheet date, but before these financial statements were authorised for issue, totalled £780,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
DLS Holdings (Grantham) Limited |
Opinion |
We have audited the financial statements of DLS Holdings (Grantham) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company's affairs as at 30 September 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
DLS Holdings (Grantham) Limited |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We gained an understanding of the legal and regulatory framework applicable to the parent company and the group and the industry in which it operates and considered the risk of acts by the parent company and the group that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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. We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
DLS Holdings (Grantham) Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
Strelley Hall |
Main Street |
Strelley |
Nottingham |
NG8 6PE |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Consolidated Income Statement |
for the year ended 30 September 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 10,559,241 | 12,173,366 |
Cost of sales | 5,696,894 | 6,205,275 |
GROSS PROFIT | 4,862,347 | 5,968,091 |
Administrative expenses | 2,663,611 | 2,682,715 |
OPERATING PROFIT | 5 | 2,198,736 | 3,285,376 |
Interest receivable and similar income | 127,859 | 57,751 |
PROFIT BEFORE TAXATION | 2,326,595 | 3,343,127 |
Tax on profit | 6 | 506,430 | 629,961 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,820,165 | 2,713,166 |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Consolidated Other Comprehensive Income |
for the year ended 30 September 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,820,165 | 2,713,166 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,820,165 |
2,713,166 |
Total comprehensive income attributable to: |
Owners of the parent | 1,820,165 | 2,713,166 |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Consolidated Balance Sheet |
30 September 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | (1,140,968 | ) | (1,521,290 | ) |
Tangible assets | 10 | 5,501,965 | 5,066,236 |
Investments | 11 | 20 | 20 |
4,361,017 | 3,544,966 |
CURRENT ASSETS |
Stocks | 12 | 1,191,856 | 1,171,354 |
Debtors | 13 | 1,735,219 | 2,054,069 |
Investments | 14 | 1,135,009 | 532,692 |
Cash at bank and in hand | 3,036,460 | 4,290,687 |
7,098,544 | 8,048,802 |
CREDITORS |
Amounts falling due within one year | 15 | 1,890,836 | 2,175,111 |
NET CURRENT ASSETS | 5,207,708 | 5,873,691 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,568,725 |
9,418,657 |
PROVISIONS FOR LIABILITIES | 17 | 563,581 | 433,678 |
NET ASSETS | 9,005,144 | 8,984,979 |
CAPITAL AND RESERVES |
Called up share capital | 18 | 1,602 | 1,602 |
Merger relief reserve | 19 | 6,200,000 | 6,200,000 |
Retained earnings | 19 | 2,803,542 | 2,783,377 |
SHAREHOLDERS' FUNDS | 9,005,144 | 8,984,979 |
The financial statements were approved by the Board of Directors and authorised for issue on 26 March 2025 and were signed on its behalf by: |
G W L Brewis - Director |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Company Balance Sheet |
30 September 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Investments | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Merger relief reserve | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 2,215,036 | 1,266,227 |
The financial statements were approved by the Board of Directors and authorised for issue on |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Consolidated Statement of Changes in Equity |
for the year ended 30 September 2024 |
Called up | Merger |
share | Retained | relief | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 October 2022 | 1,602 | 1,360,211 | 6,200,000 | 7,561,813 |
Changes in equity |
Dividends | - | (1,290,000 | ) | - | (1,290,000 | ) |
Total comprehensive income | - | 2,713,166 | - | 2,713,166 |
Balance at 30 September 2023 | 1,602 | 2,783,377 | 6,200,000 | 8,984,979 |
Changes in equity |
Dividends | - | (1,800,000 | ) | - | (1,800,000 | ) |
Total comprehensive income | - | 1,820,165 | - | 1,820,165 |
Balance at 30 September 2024 | 1,602 | 2,803,542 | 6,200,000 | 9,005,144 |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Company Statement of Changes in Equity |
for the year ended 30 September 2024 |
Called up | Merger |
share | Retained | relief | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 October 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 September 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 September 2024 |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Consolidated Cash Flow Statement |
for the year ended 30 September 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,415,032 | 3,132,613 |
Tax paid | (611,192 | ) | (481,120 | ) |
Net cash from operating activities | 1,803,840 | 2,651,493 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (829,544 | ) | (364,682 | ) |
Purchase of current asset investments | (555,917 | ) | (510,000 | ) |
Sale of tangible fixed assets | 11,892 | 12,000 |
Interest received | 127,859 | 57,751 |
Net cash from investing activities | (1,245,710 | ) | (804,931 | ) |
Cash flows from financing activities |
Amount withdrawn by directors | (12,357 | ) | - |
Equity dividends paid | (1,800,000 | ) | (715,000 | ) |
Net cash from financing activities | (1,812,357 | ) | (715,000 | ) |
(Decrease)/increase in cash and cash equivalents | (1,254,227 | ) | 1,131,562 |
Cash and cash equivalents at beginning of year |
2 |
4,290,687 |
3,159,125 |
Cash and cash equivalents at end of year | 2 | 3,036,460 | 4,290,687 |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 30 September 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 2,326,595 | 3,343,127 |
Depreciation charges | (1,408 | ) | (121,232 | ) |
Loss/(profit) on disposal of fixed assets | 3,009 | (2,943 | ) |
(Gain)/Loss on fair value of investment | (46,399 | ) | 5,194 |
Finance income | (127,859 | ) | (57,751 | ) |
2,153,938 | 3,166,395 |
(Increase)/decrease in stocks | (20,502 | ) | 261,463 |
Decrease/(increase) in trade and other debtors | 318,813 | (21,233 | ) |
Decrease in trade and other creditors | (37,217 | ) | (274,012 | ) |
Cash generated from operations | 2,415,032 | 3,132,613 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 September 2024 |
30/9/24 | 1/10/23 |
£ | £ |
Cash and cash equivalents | 3,036,460 | 4,290,687 |
Year ended 30 September 2023 |
30/9/23 | 1/10/22 |
£ | £ |
Cash and cash equivalents | 4,290,687 | 3,159,125 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/10/23 | Cash flow | At 30/9/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,290,687 | (1,254,227 | ) | 3,036,460 |
4,290,687 | (1,254,227 | ) | 3,036,460 |
Liquid resources |
Current asset investments | 532,692 | 602,317 | 1,135,009 |
532,692 | 602,317 | 1,135,009 |
Total | 4,823,379 | (651,910 | ) | 4,171,469 |
4. | MAJOR NON-CASH TRANSACTIONS |
Of the total dividends declared in the prior year of £1,290,000, amounts totalling £575,000 were credited to the Directors' and Shareholders' loan accounts and these were not paid. |
There have been no major non-cash transactions in the current year. |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Notes to the Consolidated Financial Statements |
for the year ended 30 September 2024 |
1. | STATUTORY INFORMATION |
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Occupation Lane, Gonerby Moor, Grantham, NG32 2BP. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the fair value of certain assets. |
The financial statements are prepared in Pound Sterling, which is the functional currency of the group. |
Basis of consolidation |
The consolidated financial statements incorporate the financial statements of the company and all group undertakings. |
These are adjusted, where appropriate, to conform to group accounting policies. Profits or losses on intra-group transactions are eliminated in full. Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and written off over five years from the year of acquisition. On acquisition of a subsidiary, all of the subsidiary's assets and liabilities which exist at the date of acquisition are recorded at their fair values reflecting their condition at the time. The results of companies acquired or disposed of are included in the consolidated income statement after or up to the date that control passes respectively. |
Parent company disclosure exemption |
In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemption, available in FRS 102: |
- no cash flow statement has been presented for the company |
Significant judgements and estimates |
In preparing these financial statements, the directors have made the following judgements: |
- | Estimated in respect of the freehold property the cost of the land element of the properties as at the date of purchase, estimated the useful economic life of the buildings, and estimated the residual value of the buildings (excluding land). |
- | Estimated the cost of the labour and overheads which have been incurred in manufactured stock in order to correctly reflect the value of stock as at the year end; |
- | Determined whether there are indicators of impairment of the group's tangible and intangible assets, including goodwill. Factors taken into consideration in reaching such a decision include the economic conditions and estimated market value of the assets. |
Other key sources of estimation uncertainty |
Tangible fixed assets are depreciated over their useful lives, taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation and product life cycles are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. |
Going concern |
At the time of approving the financial statements the directors have a reasonable expectation that the group and company have 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. |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable for goods supplied, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; 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 measured reliably. |
Goodwill |
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows: |
Goodwill on acquisition 20% straight line |
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Impairment |
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount |
being estimated where such indicators exist. Where the carrying value exceeds the recoverable |
amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at |
each reporting date. |
When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made |
of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating |
unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that |
are largely independent of the cash inflows from other assets or groups of assets. |
Current asset investments |
Current asset investments are initially recorded at fair value, with changes in fair value being recognised in profit or loss. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss. |
Tangible fixed assets |
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. |
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, |
over the useful economic life of that asset as follows: |
Freehold Property | 2.5% straight line |
Plant & Machinery | 20% reducing balance |
Fixtures & Fittings | 15% reducing balance and 20% straight line |
Motor Vehicles | 20% reducing balance and 25% straight line |
Moulds & Tools | 33% straight line |
Freehold land is not depreciated |
Stocks |
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase on a first in first out basis, costs of conversion and other costs incurred in bringing the stock to its present location and condition. |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Sale of goods | 10,559,241 | 12,173,366 |
10,559,241 | 12,173,366 |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 9,063,456 | 10,941,451 |
Europe | 1,431,940 | 1,163,122 |
Rest of the world | 63,845 | 68,793 |
10,559,241 | 12,173,366 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 2,980,941 | 2,916,572 |
Other pension costs | 82,648 | 62,210 |
3,063,589 | 2,978,782 |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production staff | 50 | 58 |
Administrative staff | 18 | 14 |
Management staff | 3 | 3 |
The average number of employees by undertakings that were proportionately consolidated during the year was 71 (2023 - 75 ) . |
2024 | 2023 |
£ | £ |
Directors' remuneration | 424,122 | 546,690 |
Directors' pension contributions to money purchase schemes | 40,666 | 24,666 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 266,000 | 285,000 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases | 95,600 | 91,422 |
Depreciation - owned assets | 378,914 | 259,088 |
Loss/(profit) on disposal of fixed assets | 3,009 | (2,943 | ) |
Goodwill amortisation | (380,322 | ) | (380,321 | ) |
Audit work | 39,900 | 37,672 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 372,795 | 639,000 |
Under/(Over) provision in prior period | 3,732 | (86,631 | ) |
Total current tax | 376,527 | 552,369 |
Deferred tax | 129,903 | 77,592 |
Tax on profit | 506,430 | 629,961 |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2024 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 2,326,595 | 3,343,127 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 22 %) |
581,649 |
735,488 |
Effects of: |
Expenses not deductible | (78,951 | ) | (49,222 | ) |
Adjustments to tax charge in respect of previous period | 3,732 | (50,311 | ) |
Tax reduction in respect of super deduction | - | (5,994 | ) |
Total tax charge | 506,430 | 629,961 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
A Ordinary shares of £1 each |
Interim | 600,000 | 430,000 |
B Ordinary shares of £1 each |
Interim | 600,000 | 430,000 |
C Ordinary shares of £1 each |
Interim | 600,000 | 430,000 |
1,800,000 | 1,290,000 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 October 2023 |
and 30 September 2024 | (2,281,933 | ) |
AMORTISATION |
At 1 October 2023 | (760,643 | ) |
Amortisation for year | (380,322 | ) |
At 30 September 2024 | (1,140,965 | ) |
NET BOOK VALUE |
At 30 September 2024 | (1,140,968 | ) |
At 30 September 2023 | (1,521,290 | ) |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2024 |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Plant and | Motor |
property | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 October 2023 | 3,950,099 | 1,391,901 | 230,860 | 5,572,860 |
Additions | - | 799,752 | 29,792 | 829,544 |
Disposals | - | - | (29,104 | ) | (29,104 | ) |
At 30 September 2024 | 3,950,099 | 2,191,653 | 231,548 | 6,373,300 |
DEPRECIATION |
At 1 October 2023 | 95,663 | 367,176 | 43,785 | 506,624 |
Charge for year | 44,387 | 307,903 | 26,624 | 378,914 |
Eliminated on disposal | - | - | (14,203 | ) | (14,203 | ) |
At 30 September 2024 | 140,050 | 675,079 | 56,206 | 871,335 |
NET BOOK VALUE |
At 30 September 2024 | 3,810,049 | 1,516,574 | 175,342 | 5,501,965 |
At 30 September 2023 | 3,854,436 | 1,024,725 | 187,075 | 5,066,236 |
Included in cost of land and buildings is freehold land of £750,000 (2023 - £750,000) which is not depreciated. |
11. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 October 2023 |
and 30 September 2024 | 20 |
NET BOOK VALUE |
At 30 September 2024 | 20 |
At 30 September 2023 | 20 |
Company |
Shares in |
group |
undertakings |
£ |
COST OR VALUATION |
At 1 October 2023 |
and 30 September 2024 |
NET BOOK VALUE |
At 30 September 2024 |
At 30 September 2023 |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2024 |
11. | FIXED ASSET INVESTMENTS - continued |
Company |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Occupation Lane, Gonerby Moor, Grantham, NG32 2BP |
Nature of business: |
% |
Class of shares: | holding |
Shares are held by a subsidiary undertaking, Direct Leisure Supplies Limited. |
The company is included in the consolidation. |
Registered office: Unit 6b, Section 1, Sewstern Industrial Estate, Gunby Road, Sewstern, Grantham, NG33 5RD |
Nature of business: |
% |
Class of shares: | holding |
Shares are held by a subsidiary undertaking, Direct Leisure Supplies Limited. |
The company is included in the consolidation. |
Registered office: Occupation Lane, Gonerby Moor, Grantham, NG32 2BP |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Occupation Lane, Gonerby Moor, Grantham, Lincolnshire, NG32 2BP |
Nature of business: |
% |
Class of shares: | holding |
Shares are held by a subsidiary undertaking, Direct Leisure Supplies Limited. |
The company is not included in the consolidation. |
Registered office: Occupation Lane, Gonerby Moor, Grantham, Lincolnshire, NG32 2BP |
Nature of business: |
% |
Class of shares: | holding |
Shares are held by a subsidiary undertaking, Direct Leisure Supplies Limited. |
The company is not included in the consolidation. |
After the year end, the subsidiary Daneplast Limited moved its operations from its current premises into the premises of its parent company, Direct Leisure Supplies Limited. The directors have carried out an impairment review at the year end and consider the carrying value to be materially correct. |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2024 |
12. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Raw materials and consumables | 606,477 | 594,104 |
Work-in-progress | 48,938 | - |
Finished goods | 536,441 | 577,250 |
1,191,856 | 1,171,354 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Trade debtors | 1,598,183 | 1,930,263 |
Other debtors | 47,600 | 47,600 |
Tax | - | 37 |
Prepayments and accrued income | 89,436 | 76,169 |
1,735,219 | 2,054,069 |
14. | CURRENT ASSET INVESTMENTS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Listed investments | 1,135,009 | 532,692 | 1,120,880 | 510,000 |
Market value of listed investments at 30 September 2024 held by the group - £1,135,009 (2023 - £532,692). and by the company - £ (1,120,880) (2023 - £ (510,000) ). |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade creditors | 700,827 | 524,717 |
Amounts owed to group undertakings | - | - |
Tax | 106,704 | 341,406 |
Social security and other taxes | 170,700 | 359,275 |
Other creditors | 329,342 | 346,670 |
Directors' current accounts | 463,682 | 476,039 | 463,682 | 476,039 |
Accruals and deferred income | 119,581 | 127,004 |
1,890,836 | 2,175,111 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable |
operating leases |
2024 | 2023 |
£ | £ |
Within one year | 47,250 | 47,250 |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2024 |
17. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 563,581 | 433,678 |
Group |
Deferred tax |
£ |
Balance at 1 October 2023 | 433,678 |
Charge to Income Statement during year | 129,903 |
Balance at 30 September 2024 | 563,581 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
A Ordinary | £1 | 100 | 100 |
B Ordinary | £1 | 100 | 100 |
C Ordinary | £1 | 100 | 100 |
D Ordinary | £1 | 1,000 | 1,000 |
E Ordinary | £1 | 300 | 300 |
2 | Preference | £1 | 2 | 2 |
1,602 | 1,602 |
The holders of the A Ordinary shares, B Ordinary shares, and C Ordinary shares, have full voting rights, are entitled to dividends, and on a liquidation or capital reduction, a share of the balance of surplus assets after the preference shareholders have been paid £1,800,000 per share (up to a maximum of £3,600,000 for the share class). This distribution is limited to a total of £4,900,000. |
The holders of the D Ordinary shares have no voting rights, but are entitled to dividends and on a liquidation or capital reduction, a share of the balance of surplus assets after the payments described above, up to a maximum of £3,500,000. |
The holders of the E Ordinary shares have no voting rights, but are entitled to dividends and on a liquidation or capital reduction, a share of the balance of surplus assets, along with holders of other classes, after the payments described above. |
The Preference share holders have no voting rights and no entitlement to dividends. However, on redemption (which can be triggered by a share sale, listing, or at the discretion of the directors), the holders are entitled to receive £1,800,000 per share, up to a maximum of £3,600,000 for the share class. |
19. | RESERVES |
Group |
Merger |
Retained | relief |
earnings | reserve | Totals |
£ | £ | £ |
At 1 October 2023 | 2,783,377 | 6,200,000 | 8,983,377 |
Profit for the year | 1,820,165 | 1,820,165 |
Dividends | (1,800,000 | ) | (1,800,000 | ) |
At 30 September 2024 | 2,803,542 | 6,200,000 | 9,003,542 |
DLS Holdings (Grantham) Limited (Registered number: 13497052) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 September 2024 |
19. | RESERVES - continued |
Company |
Merger |
Retained | relief |
earnings | reserve | Totals |
£ | £ | £ |
At 1 October 2023 | 6,223,727 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30 September 2024 | 6,638,763 |
On 30 November 2021, 299 Ordinary shares with a nominal value of £1 each were issued as part of a share for share exchange on the acquisition of Direct Leisure Supplies Limited. The cost of investment was recognised at fair value, and the surplus of fair value above nominal value of the shares issued was credited to the merger relief reserve. |
20. | RELATED PARTY DISCLOSURES |
Directors and related parties |
The directors' and related party loan accounts are payable on demand and attract no interest. The |
balances on the directors' loan accounts and other related party loans were £703,677 (2023: £727,472) as at the year end. |
The movements in the loan accounts consisted principally of dividends voted by the company less payments to or on behalf of the related parties. |
During the year, dividends totalling £1,200,000 (2023:£860,000) were paid to directors. |
21. | CONTROLLING PARTY |
The directors consider there to be no controlling party. |