REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2025 |
FOR |
DRIVE SYSTEM DESIGN LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2025 |
FOR |
DRIVE SYSTEM DESIGN LIMITED |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 31 March 2025 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
DRIVE SYSTEM DESIGN LIMITED |
COMPANY INFORMATION |
for the year ended 31 March 2025 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
One Eastwood |
Harry Weston Road |
Binley Business Park |
Coventry |
CV3 2UB |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
STRATEGIC REPORT |
for the year ended 31 March 2025 |
The directors present their strategic report for the year ended 31 March 2025. |
REVIEW OF BUSINESS |
The principal activity of the Company is the provision of consultancy services in powertrain and driveline engineering to the automotive and other industries on an international basis. |
The key performance indicators used by management to assess the development of the business are analysed below. |
Turnover for year ended 31 March 2025 was £15.1m (2024: £17.1m). |
Operating profit for the year ended 31 March 2025 was £2.7m (2024: £4.0m). |
The Company is aware of its sustainability responsibilities and has proudly used green energy since 2020. It is ISO 14001 compliant, and future use of renewable energy and resources is fundamental to our business decisions. |
KEY PERFORMANCE INDICATORS |
The directors monitor a number of financial key performance indicators; staff and asset utilisation; order intake and sales pipeline; project performance; sales revenues and operating profits; and cashflow. |
The directors also monitor non-financial key performance indicators including customer feedback, headcount, retention and asset utilisation. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The following is a summary of the principal risks that the Company is exposed to. The directors proactively identify risks and implement mitigation plans across the businesses as part of the risk management process. |
Customers and Markets |
The Company is dependent on an increasingly disrupted and highly dynamic market place exposed to many external pressures and macroeconomic factors which can result in loss of orders or delayed orders. This is mitigated by ensuring we have a wide portfolio of potential customers and understand their critical needs and requirements. |
Innovation |
The Company must continually develop new methods and technical solutions to meet customer needs and to maintain its market position. This is mitigated by substantial investment in internal and collaborative research projects. |
People |
Attracting and retaining the best talent is essential to delivering our strategy. This risk is managed by selective recruitment and an internal talent management process. |
FUTURE DEVELOPMENTS AND R&D |
Vehicle electrification and the automotive market remains a key strategic component for the Company whilst also diversifying into other industries. |
OUTLOOK |
Whilst market conditions remain challenging, the management team remain confident in the future of the business. |
ON BEHALF OF THE BOARD: |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
REPORT OF THE DIRECTORS |
for the year ended 31 March 2025 |
The directors present their report with the financial statements of the company for the year ended 31 March 2025. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the provision of consultancy services in powertrain and driveline engineering. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 March 2025 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2024 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
Future developments and R&D have been detailed in the strategic report in accordance with s414C(11) CA 2006. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
REPORT OF THE DIRECTORS |
for the year ended 31 March 2025 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRIVE SYSTEM DESIGN LIMITED |
Opinion |
We have audited the financial statements of Drive System Design Limited (the 'company') for the year ended 31 March 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DRIVE SYSTEM DESIGN LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- | Enquiry of management and those charged with governance around actual and potential litigation and claims; |
- | Reviewing minutes of meetings of those charged with governance; |
- | Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
- | Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
A further description of our responsibilities 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 |
DRIVE SYSTEM DESIGN 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 |
Statutory Auditor |
One Eastwood |
Harry Weston Road |
Binley Business Park |
Coventry |
CV3 2UB |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
INCOME STATEMENT |
for the year ended 31 March 2025 |
Period |
30.11.22 |
Year Ended | to |
31.3.25 | 31.3.24 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
2,184,940 | 2,000,203 |
Other operating income | 5 |
OPERATING PROFIT | 7 |
Profit/loss on sale of invest | 8 |
2,694,377 | 11,023,732 |
Interest receivable and similar income |
2,710,758 | 11,027,661 |
Interest payable and similar expenses | 9 |
PROFIT BEFORE TAXATION |
Tax on profit | 10 |
PROFIT FOR THE FINANCIAL YEAR |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
OTHER COMPREHENSIVE INCOME |
for the year ended 31 March 2025 |
Period |
30.11.22 |
Year Ended | to |
31.3.25 | 31.3.24 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
BALANCE SHEET |
31 March 2025 |
2025 | 2024 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 March 2025 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 30 November 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2024 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2025 |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 31 March 2025 |
1. | STATUTORY INFORMATION |
Drive System Design Limited is a |
The Company's financial statements are presented in pound sterling and this is its functional currency. |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Extended period |
The comparative accounting period was extended to 31 March 2024 to align the Company period end with the rest of the wider group to which the Company belongs. Therefore, these financial results cover a 12 month period to 31 March 2025 compared to a 16 month period to 31 March 2024, resulting in the two periods not being entirely comparable. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption 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. |
Preparation of consolidated financial statements |
The financial statements contain information about Drive System Design Limited as an individual company and do not contain consolidated financial information as the parent of a group. The Company is exempt under Section 405 of the Companies Act 2006 from the requirements to prepare consolidated financial statements. |
Drive System Design s.r.o as the only subsidiary undertaking is not material and its inclusion is not considered necessary for the purpose of giving a true and fair view. |
Turnover |
Turnover represents the fair value of services provided during the year on client assignments or grant funded projects. Turnover is recognised as contract activity progresses and the right to consideration is earned. Fair value reflects the amount expected to be recoverable from clients and is based on the time spent, skills and expertise provided and expenses incurred. |
Turnover excludes discounts, rebates, value added tax and other sales taxes. |
Unbilled turnover on individual client assignments is included within trade debtors. |
Changes in accounting policies |
The Company has opted to account for R&D expenditure tax credits above the line (ATL) as part of other operating income, whereas in the previous period this credit was reflected through the tax charge line in the Income Statement. |
The impact of this change has been disclosed in note 12. |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2025 |
3. | ACCOUNTING POLICIES - continued |
Grants |
Revenue grants are recognised when there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Revenue grants are included in turnover when recognised and carried as deferred income within creditors where the conditions have not been fully satisfied at the balance sheet date. |
Capital grants are recognised as income on a systematic basis over the periods necessary to match them with the related costs which they are intended to compensate. Capital grants are included in other income when recognised and the unrecognised portion is carried as deferred government grants within creditors. |
Tangible fixed assets |
Tangible fixed assets are recognised at cost and subsequently measured under the historical cost model being cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes any direct expenditure incurred to bring the asset to its current location and condition necessary for the asset to work as intended by management. |
Repairs and maintenance costs are charged to the Income Statement in the period in which they are incurred. |
Depreciation is provided at the following annual rates in order to write off the cost of each asset over its estimated useful life. |
Freehold property | - 5% straight line |
Fixtures and fittings | - 33.33% straight line, 20% straight line and 10% straight line |
Motor vehicles | - 20% straight line |
Computer equipment | - 33% straight line |
Any gains and losses on the disposal of tangible fixed assets are recognised in the Income Statement in the year that the disposal takes place. |
Investments in subsidiaries |
Investments in subsidiary undertakings and joint-ventures are valued at cost less any accumulated impairment losses. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. The cost of raw materials includes all costs in bringing the product to its current location and condition, whilst the cost of finished goods incudes materials and direct labour. Stocks are maintained on a first in, first out basis. |
As stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. |
At each reporting date, stocks are assessed for impairment and due allowances are made for obsolete and slow-moving items to reduce the carrying amount of these goods to their estimated selling price less costs to complete and sell. The amount of any write-down is recognised as an expense in the period that the write-down occurs. The reversal of any previous write-down is recognised as a reduction in the amount of stock expensed in the period that the reversal occurs. |
Financial instruments |
Basic financial instruments in debtors and creditors with no stated interest rate, and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other administrative expenses. |
Other financial assets and liabilities, such as loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2025 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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. |
Research and development |
Expenditure on research and development (R&D) is written off in the period in which it is incurred. |
R&D expenditure tax credits are recognised as other operating income within the Income Statement. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Pension costs and other post-retirement benefits |
The Company operates a defined contribution pension scheme for its employees. Contributions payable to the Company's pension scheme are charged to the Income Statement in the period to which they relate. A defined contribution plan is a pension scheme under which the Company pays fixed contributions into an independently administered fund and has no further obligations once the contributions have been paid. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
Period |
30.11.22 |
Year Ended | to |
31.3.25 | 31.3.24 |
£ | £ |
United Kingdom |
Europe |
Rest of World | 5,952,213 | 6,607,216 |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2025 |
5. | OTHER OPERATING INCOME |
Period |
30.11.22 |
Year Ended | to |
31.3.25 | 31.3.24 |
£ | £ |
Rental income | 38,000 | 21,500 |
Contributed technology |
Sundry receipts | 940 | 397 |
Management charge income |
R&D expenditure tax credit |
Capital grants |
509,437 | 1,950,126 |
The Company incurs various centralised support and management costs on behalf of other group and related companies. A proportion of this expenditure is recharged to the respective parties and the income accounted for in other operating income. |
In the previous period, the £869,923 of income for contributed technology reflects the fair value of Company's developed technology that was sold to its new joint-venture interest, ZeBeyond Limited. |
6. | EMPLOYEES AND DIRECTORS |
Period |
30.11.22 |
Year Ended | to |
31.3.25 | 31.3.24 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
Period |
30.11.22 |
Year Ended | to |
31.3.25 | 31.3.24 |
Direct | 85 | 70 |
Support | 23 | 17 |
Period |
30.11.22 |
Year Ended | to |
31.3.25 | 31.3.24 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2025 |
6. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
Period |
30.11.22 |
Year Ended | to |
31.3.25 | 31.3.24 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
Total compensation for key management personnel (including employers national insurance) during the year totalled £936,299 (2024: £1,423,618). |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
30.11.22 |
Year Ended | to |
31.3.25 | 31.3.24 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
Research and development |
Stock impairment (gains) / losses | ( |
) |
Stocks are stated after provisions for impairment, the impact of which has been reflected in cost in sales. |
8. | EXCEPTIONAL ITEMS |
Period |
30.11.22 |
Year Ended | to |
31.3.25 | 31.3.24 |
£ | £ |
Profit/loss on sale of invest |
In the previous period, the Company sold its US investment in Drive System Design Inc with a carrying value of £204,316, realising a profit on sale of £7,073,403. |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2025 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
30.11.22 |
Year Ended | to |
31.3.25 | 31.3.24 |
£ | £ |
Other interest payable |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
30.11.22 |
Year Ended | to |
31.3.25 | 31.3.24 |
£ | £ |
Current tax: |
UK corporation tax |
Prior year adjustment | (31,435 | ) | 1 |
Total current tax |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
30.11.22 |
Year Ended | to |
31.3.25 | 31.3.24 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2024 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Adjustment to deferred tax charge in respect of previous periods | 23,924 | 14,412 |
Deferred tax rate and rounding differences | (375 | ) | 22,859 |
R&D enhancements and credits | 15,890 | - |
WHT written off | 211,864 | 166,498 |
Subsidiary disposal | - | (1,662,250 | ) |
Total tax charge | 916,863 | 1,141,079 |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2025 |
10. | TAXATION - continued |
The main rate of Corporation Tax increased to 25% with effect from 01 April 2023. |
11. | DIVIDENDS |
Period |
30.11.22 |
Year Ended | to |
31.3.25 | 31.3.24 |
£ | £ |
Ordinary A shares of £1 each |
Interim |
Ordinary B shares of £1 each |
Interim |
12. | PRIOR PERIOD RECLASSIFICATION |
During the year, the Company has opted to account for R&D expenditure tax credits above the line (ATL) as part of other operating income, whereas in the previous period this credit was reflected through the tax charge line in the Income Statement. |
This change in classification reflects a change in accounting policy and therefore the R&D expenditure credit of £532,235 included as part of the previous periods tax charge, has been reallocated to other operating income (note 5) for consistency and comparability. |
This adjustment does not alter the 2024 reported profit or the balance sheet position. |
13. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2024 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2025 |
DEPRECIATION |
At 1 April 2024 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2025 |
NET BOOK VALUE |
At 31 March 2025 |
At 31 March 2024 |
Included within freehold property is land with a value of £313,500 (2024: £313,500) which is not depreciated. |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2025 |
14. | FIXED ASSET INVESTMENTS |
Shares in | Interest |
group | in joint |
undertakings | venture | Totals |
£ | £ | £ |
COST |
At 1 April 2024 |
and 31 March 2025 | 937,863 |
NET BOOK VALUE |
At 31 March 2025 | 937,863 |
At 31 March 2024 | 937,863 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Nadrazini 344/23, Smichov,150 00 Prague 5 |
Nature of business: |
% |
Class of shares: | holding |
Joint venture |
Registered office: Unit B, Sydenham Industrial Estate, Leamington Spa, Warwickshire, CV31 1NB |
Nature of business: |
% |
Class of shares: | holding |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2025 | 2024 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Tax |
Prepayments |
Included in amounts due from group undertakings is £769,355 (2024: £7,777,719) that has been loaned to other entities within the group. These loans have been made on an informal basis and are non-interest bearing. |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2025 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2025 | 2024 |
£ | £ |
Trade creditors |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
Deferred government grants |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2025 | 2024 |
£ | £ |
Deferred government grants |
18. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2025 | 2024 |
£ | £ |
Within one year |
Between one and five years |
19. | PROVISIONS FOR LIABILITIES |
2025 | 2024 |
£ | £ |
Deferred tax | 808,000 | 622,000 |
Deferred |
tax |
£ |
Balance at 1 April 2024 |
Accelerated capital allowances | 165,000 |
Other timing differences | 21,000 |
Balance at 31 March 2025 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2025 | 2024 |
value: | £ | £ |
Ordinary A | £1 | 108 | 108 |
Ordinary B | £1 | 92 | 92 |
200 | 200 |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2025 |
21. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2024 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2025 |
Retained Earnings |
The retained earnings account represents cumulative profits and losses net of dividends and other adjustments. |
22. | PENSION COMMITMENTS |
The Company operates a defined contribution pension scheme for its employees. Contributions to the scheme during the financial period amounting to £310,645 (2024: £285,289) have been charged to the Income Statement. |
23. | FINANCIAL GUARANTEES |
The Company has provided a corporate guarantee in respect to a term loan taken out by Hinduja Tech UK Limited, the immediate parent undertaking of the Company. |
At the balance sheet date, the outstanding principal on the loan arrangement was £9,975,000 (2024: £15,000,000). The guarantee is based on 110% of the sanctioned term loan limit, and therefore the Company's exposure is £10,972,500. |
The Company has provided security against the loan via a fixed and floating charge over the Company assets, excluding the freehold property. |
24. | RELATED PARTY DISCLOSURES |
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. |
Joint venture |
During the year the Company made sales and other charges to its joint venture of £371,003 (2024: £171,666) and purchases of £120,222 (2024: £nil) |
The Company has also advanced a short-term loan to its joint venture for a £100,000. |
At the balance sheet date £182,273 (2024: £41,514) was owed to the Company from its joint venture. These outstanding balances are reflected in trade and other debtors. |
Group entities not wholly owned within the group |
During the year the Company made sales to other non-wholly owned group entities of £605,829 (2024: £nil). |
At the balance sheet date £244,854 (2024: £nil) was owed to the Company from these entities. The outstanding balances are reflected in trade debtors. |
DRIVE SYSTEM DESIGN LIMITED (REGISTERED NUMBER: 06304697) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2025 |
25. | ULTIMATE CONTROLLING PARTY |
The immediate parent undertaking of the Company is Hinduja Tech UK Limited. The ultimate parent undertaking and controlling party is Ocorian Trust (Isle of Man) Limited, incorporated in Isle of Man. |
The smallest group in which the results of the Company are consolidated is that of Hinduja Tech Limited, a company incorporated in India. The consolidated financial statements of Hinduja Tech Limited can be obtained from its registered office, No.1, Sardar Patel Road, Guindy, Chennai - 600 032. |
The largest group in which the results of the Company are consolidated is that of Machen Holding SA, a company incorporated in Luxembourg. The consolidated financial statements of Machen Holding SA can be obtained from its registered office, 412F Route D'esch, Luxembourg, 1471. |