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Company registration number: 01097551
Direct Leisure Supplies Limited
Financial statements
30 September 2024
Direct Leisure Supplies Limited
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Notes to the financial statements
Direct Leisure Supplies Limited
Directors and other information
Directors Mr GWL Brewis
Mr IA Partridge
Secretary GWL Brewis
Company number 01097551
Registered office Occupation Lane
Gonerby Moor
Grantham
Lincolnshire
NG32 2BP
Business address Occupation Lane
Gonerby Moor
Grantham
Lincolnshire
NG32 2BP
Auditor Just Audit Limited
Strelley Hall
Main Street
Strelley
Nottingham
NG8 6PE
Bankers Barclays Bank PLC
PO Box 294
City Office Park, Tritton Road
Lincoln
LN6 7YY
Direct Leisure Supplies Limited
Strategic report
Year ended 30 September 2024
Strategic Report 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 Direct Leisure Supplies Ltd is an unquoted company wholly owned by a parent 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 company 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 company's activities remain organised into two 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.
The company has continued to maintain a wide range of activities to support customers. The sales of the company have decreased due to a significant downturn in the leisure industry.
Trading during the year resulted in an operating profit for the year of £1,495,216 (2023: £2,635,078). This is seen as a reasonable result. Total comprehensive income for the year (profit after tax) was £1,202,536 (2023: £2,733,830).
The statement of financial position on page 12 of the financial statements shows the net assets at £11,326,225 (2023: £12,303,689), the decrease being attributable to the movements in equity detailed on the statement of changes in equity.
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 statement of comprehensive income, the company 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.
BUSINESS RISK
The risks to the business are managed through the extensive use of ISO registered procedures and management thereof. The business has 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 business has 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 business has 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 company has sufficient reserves to shield it from the effects of adverse trading conditions. The company 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?"
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 into two sites (from three). After the year end, Daneplast Limited moved its operations from its current premises into the premises of 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.
This report was approved by the board of directors on 26 March 2025 and signed on behalf of the board by:
Mr GWL Brewis
Director
Direct Leisure Supplies Limited
Directors report
Year ended 30 September 2024
The directors present their report and the financial statements of the company for the year ended 30 September 2024.
Directors
The directors who served the company during the year were as follows:
Mr GWL Brewis
Mr IA Partridge
Dividends
The total distribution of dividends for the year ended 30 September 2024 is £2,180,000.
Dividends paid after the statement of financial position date but before these financial statements were authorised for issue totalled £1,210,000.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, directors 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), including Financial
Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
Strategic Report
The company has chosen in accordance with the Companies Act 2006, section 414C(11) to set out in the company's Strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) regulations 2008, Sch 7 to be contained in the Directors report.
This report was approved by the board of directors on 26 March 2025 and signed on behalf of the board by:
Mr GWL Brewis
Director
Direct Leisure Supplies Limited
Independent auditor's report to the members of
Direct Leisure Supplies Limited
Year ended 30 September 2024
Opinion
We have audited the financial statements of Direct Leisure Supplies Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity and 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other Information
The other information comprises the information included in the strategic report and the directors' report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and the 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company 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 focused 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation (i.e gives a true and fair view). We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditors 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.
David Fletcher BA BFP FCA (Senior Statutory Auditor)
For and on behalf of
Just Audit Limited
Chartered Accountants & Statutory Auditors
Strelley Hall
Main Street
Strelley
Nottingham
NG8 6PE
26 March 2025
Direct Leisure Supplies Limited
Statement of comprehensive income
Year ended 30 September 2024
2024 2023
Note £ £
Turnover 4 8,830,758 10,708,884
Cost of sales ( 4,721,953) ( 5,590,988)
_______ _______
Gross profit 4,108,805 5,117,896
Administrative expenses ( 2,613,589) ( 2,482,818)
_______ _______
Operating profit 5 1,495,216 2,635,078
Income from shares in group undertakings 8 - 600,000
Income from other fixed asset investments 9 ( 8,564) ( 5,194)
Other interest receivable and similar income 10 127,700 57,714
Profit before taxation 1,614,352 3,287,598
Tax on profit 11 ( 411,816) ( 553,768)
_______ _______
Profit for the financial year and total comprehensive income 1,202,536 2,733,830
_______ _______
All the activities of the company are from continuing operations.
Direct Leisure Supplies Limited
Statement of financial position
30 September 2024
2024 2023
Note £ £ £ £
Fixed assets
Intangible assets 12 - -
Tangible assets 13 3,012,927 2,513,501
Investments 14 1,570,638 1,570,638
_______ _______
4,583,565 4,084,139
Current assets
Stocks 15 1,059,279 1,009,890
Debtors 16 4,287,156 4,718,375
Investments 17 14,128 22,692
Cash at bank and in hand 2,694,626 3,837,843
_______ _______
8,055,189 9,588,800
Creditors: amounts falling due
within one year 18 ( 1,008,760) ( 1,195,384)
_______ _______
Net current assets 7,046,429 8,393,416
_______ _______
Total assets less current liabilities 11,629,994 12,477,555
Provisions for liabilities 19 ( 303,769) ( 173,866)
_______ _______
Net assets 11,326,225 12,303,689
_______ _______
Capital and reserves
Called up share capital 22 403 403
Share premium account 97 97
Profit and loss account 11,325,725 12,303,189
_______ _______
Shareholders funds 11,326,225 12,303,689
_______ _______
These financial statements were approved by the board of directors and authorised for issue on 26 March 2025 , and are signed on behalf of the board by:
Mr GWL Brewis
Director
Company registration number: 01097551
Direct Leisure Supplies Limited
Statement of changes in equity
Year ended 30 September 2024
Called up share capital Share premium account Profit and loss account Total
£ £ £ £
At 1 October 2022 403 97 10,869,359 10,869,859
Profit for the year 2,733,830 2,733,830
_______ _______ _______ _______
Total comprehensive income for the year - - 2,733,830 2,733,830
Dividends paid and payable ( 1,300,000) ( 1,300,000)
_______ _______ _______ _______
Total investments by and distributions to owners - - ( 1,300,000) ( 1,300,000)
_______ _______ _______ _______
At 30 September 2023 and 1 October 2023 403 97 12,303,189 12,303,689
Profit for the year 1,202,536 1,202,536
_______ _______ _______ _______
Total comprehensive income for the year - - 1,202,536 1,202,536
Dividends paid and payable ( 2,180,000) ( 2,180,000)
_______ _______ _______ _______
Total investments by and distributions to owners - - ( 2,180,000) ( 2,180,000)
_______ _______ _______ _______
At 30 September 2024 403 97 11,325,725 11,326,225
_______ _______ _______ _______
Direct Leisure Supplies Limited
Notes to the financial statements
Year ended 30 September 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The registered number is 01097551 and the address of the registered office is Direct Leisure Supplies Limited, Occupation Lane, Gonerby Moor, Grantham, Lincolnshire, NG32 2BP.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
At the time of approving the financial statements the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied, net of discounts and Value Added Tax.
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.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property 2.5 % straight line
Plant and machinery 20 % reducing balance
Fittings fixtures and equipment 15 % reducing balance
Motor vehicles 20 % reducing balance
Moulds & Tools 33 % straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Freehold land is not depreciated.
Fixed asset investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
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 .
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 stocks to their present location and condition.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
Group financial statements
The financial statements contain information about Direct Leisure Supplies Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, DLS Holdings (Grantham) Limited. This is both the smallest and largest group in which Direct Leisure Supplies Limited 's accounts are consolidated.
Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group, on the grounds that consolidated financial statements for the year ended 30 September 2024 of its parent company, DLS Holdings (Grantham) Limited, are publicly available.
Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": - the requirements of Section 7 Statement of Cash Flows.
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.
- Estimated the recoverable amount for the investment in subsidiary undertakings as at the year end, following the impairment identified by the directors within the year
4. Turnover
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024 2023
£ £
United Kingdom 7,689,389 9,476,969
Europe 1,077,525 1,163,122
Rest of world 63,844 68,793
_______ _______
8,830,758 10,708,884
_______ _______
5. Operating profit
Operating profit is stated after charging/(crediting):
2024 2023
£ £
Depreciation of tangible assets 315,217 189,506
(Gain)/loss on disposal of tangible assets 3,009 ( 2,943)
Impairment of trade debtors (791) 87
Fees payable for the audit of the financial statements 22,000 17,500
_______ _______
6. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024 2023
Production staff 36 39
Administrative staff 15 15
Management 2 2
_______ _______
53 56
_______ _______
The aggregate payroll costs incurred during the year were:
2024 2023
£ £
Wages and salaries 2,153,700 2,066,653
Social security costs 210,145 214,615
Other pension costs 82,648 62,210
_______ _______
2,446,493 2,343,478
_______ _______
7. Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
2024 2023
£ £
Remuneration 340,000 432,500
Company contributions to pension schemes in respect of qualifying services 40,666 24,666
_______ | _______ |
380,666 457,166
_______ | _______ |
The number of directors to whom retirement benefits were accruing was as follows:
2024 2023
Number Number
Money purchase schemes 2 2
_______ | _______ |
Information regarding the highest paid director is as follows:
2024 2023
£ £
Emoluments 230,000 285,000
_______ | _______ |
8. Income from shares in group undertakings
2024 2023
£ £
Dividends from shares in group undertakings (-) 600,000
_______ _______
9. Income from other fixed asset investments
2024 2023
£ £
Loss on valuation of current asset investments (8,564) (5,194)
_______ _______
10. Other interest receivable and similar income
2024 2023
£ £
Bank deposits 127,700 57,714
_______ _______
11. Tax on profit
Major components of tax expense
2024 2023
£ £
Current tax:
UK current tax expense 283,195 562,785
Adjustments in respect of previous periods ( 1,282) ( 86,609)
_______ _______
Deferred tax:
Origination and reversal of timing differences 129,903 77,592
_______ _______
Tax on profit 411,816 553,768
_______ _______
Reconciliation of tax expense
2024 2023
£ £
Profit before taxation 1,614,352 3,287,598
_______ | _______ |
Profit multiplied by the standard rate of tax in the UK of 25% (22% - 2023) 403,588 723,272
Effects of:
Adjustments in respect of prior periods ( 1,282 ) ( 86,609 )
Effect of expenses not deductible for tax purposes 9,510 18,605
Effect of revenue exempt from tax - ( 132,000 )
Deferred taxation adjustments in respect of prior years - 36,293
Tax reduction in respect of super deduction - ( 5,793 )
_______ | _______ |
Tax on profit 411,816 553,768
_______ | _______ |
12. Intangible assets
Goodwill Total
£ £
Cost
At 1 October 2023 and 30 September 2024 17,000 17,000
_______ _______
Amortisation
At 1 October 2023 and 30 September 2024 17,000 17,000
_______ _______
Carrying amount
At 30 September 2024 - -
_______ _______
At 30 September 2023 - -
_______ _______
13. Tangible assets
Freehold property Plant and machinery Fixtures, fittings and equipment Motor vehicles Moulds & tools Total
£ £ £ £ £ £
Cost
At 1 October 2023 1,751,142 2,999,710 343,864 411,853 441,856 5,948,425
Additions - 799,752 - 29,792 - 829,544
Disposals - - - ( 29,104) - ( 29,104)
_______ _______ _______ _______ _______ _______
At 30 September 2024 1,751,142 3,799,462 343,864 412,541 441,856 6,748,865
_______ _______ _______ _______ _______ _______
Depreciation
At 1 October 2023 - 2,370,519 328,908 293,641 441,856 3,434,924
Charge for the year - 286,351 2,242 26,624 - 315,217
Disposals - - - ( 14,203) - ( 14,203)
_______ _______ _______ _______ _______ _______
At 30 September 2024 - 2,656,870 331,150 306,062 441,856 3,735,938
_______ _______ _______ _______ _______ _______
Carrying amount
At 30 September 2024 1,751,142 1,142,592 12,714 106,479 - 3,012,927
_______ _______ _______ _______ _______ _______
At 30 September 2023 1,751,142 629,191 14,956 118,212 - 2,513,501
_______ _______ _______ _______ _______ _______
Included in cost of land and buildings is freehold land of £300,000 (2023 - £300,000) which is not depreciated.
14. Investments
Shares in group undertakings Total
£ £
Cost
At 1 October 2023 and 30 September 2024 1,570,638 1,570,638
_______ _______
Impairment
At 1 October 2023 and 30 September 2024 - -
_______ _______
Carrying amount
At 30 September 2024 1,570,638 1,570,638
_______ _______
At 30 September 2023 1,570,638 1,570,638
_______ _______
After the year end, Daneplast Limited moved its operations from its current premises into the premises of Direct Leisure Supplies Limited . The directors have carried out an impairment review as at the year end and consider the carrying value to be materially correct.
Investments in group undertakings
Registered office Class of share Percentage of shares held
Subsidiary undertakings
DLS Investments Limited Occupation Lane, Gonerby Moor, Grantham, NG32 2BP Ordinary Shares 100
Daneplast Limited Unit 6b, Section 1, Sewstern Industrial Estate, Gunby Road, Sewstern, Grantham, NG33 5RD Ordinary Shares 100
15. Stocks
2024 2023
£ £
Raw materials and consumables 514,294 459,088
Work in progress 48,938 -
Finished goods and goods for resale 496,047 550,802
_______ _______
1,059,279 1,009,890
_______ _______
16. Debtors
2024 2023
£ £
Trade debtors 1,403,898 1,728,236
Amounts owed by group undertakings 2,762,465 2,880,673
Prepayments and accrued income 73,193 61,866
Other debtors 47,600 47,600
_______ _______
4,287,156 4,718,375
_______ _______
The company has provided guaranteed financial support to its subsidiaries, Daneplast Limited and DLS Investments Limited, ensuring their ongoing operations and financial stability .
17. Investments
2024 2023
£ £
Listed investments 14,128 22,692
_______ _______
18. Creditors: amounts falling due within one year
2024 2023
£ £
Trade creditors 650,390 410,696
Amounts owed to group undertakings 49,080 59,574
Accruals and deferred income 74,887 74,070
Corporation tax 17,104 265,191
Social security and other taxes 133,310 291,864
Other creditors 83,989 93,989
_______ _______
1,008,760 1,195,384
_______ _______
19. Provisions
Deferred tax (note 20) Total
£ £
At 1 October 2023 173,866 173,866
Additions 129,903 129,903
_______ _______
At 30 September 2024 303,769 303,769
_______ _______
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024 2023
£ £
Included in provisions (note 19) 303,769 173,866
_______ _______
21. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 82,648 (2023: £ 62,210 ).
22. Called up share capital
Allotted, issued and fully paid:
Number: Class: Nominal Value 2024 2023
£ £
400 Ordinary £1 400 400
3 A Preference £1 3 3
_______ | _______ |
403 403
_______ | _______ |
The Ordinary shares carry full voting rights. The A Preference shares carry no such voting rights and are redeemable at the discretion of the directors, subject to 10 business days' notice given to the shareholders. Dividends are paid on recommendation of the directors.
In the event of any return of capital, at the company's option, whether on liquidation, capital reduction or otherwise, any surplus assets of the Company remaining after the payment of its liabilities would be repaid in the following order of priority: - Firstly, each A Preference share would be redeemed at £1,000,000 per A Preference share, plus an amount equal to 5% per annum on this amount from the date of issue of the shares calculated on a daily basis but not compound basis - Secondly, any remaining surplus would be available for distribution to the Ordinary shareholders.
23. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year 175,000 175,000
Later than 1 year and not later than 5 years 481,250 656,250
_______ _______
656,250 831,250
_______ _______
24. Related party transactions
During the year, dividends totalling £1,200,000 were paid to directors by the holding company, DLSHoldings (Grantham) Limited (2023: £860,000).
25. Controlling party
The company's immediate and ultimate parent undertaking at the year end was DLS Holdings (Grantham) Limited, which is incorporated in England and Wales. The address of the registered office is Occupation Lane, Gonerby Moor, Grantham, Lincolnshire, NG32 2BP.The group accounts, which contain the results of this company, can be obtained from CompaniesHouse.The directors consider there to be no ultimate controlling party.