Company registration number 03014594 (England and Wales)
DENNY BROS HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
DENNY BROS HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr B D Denny
Mr G D Denny
Mr K E Seeley
(Appointed 27 June 2024)
Mr A J Simpson
(Appointed 27 June 2024)
Secretary
Mrs R Smith
Company number
03014594
Registered office
Kempson Way
Bury St Edmunds
IP32 7AR
Auditor
Ensors Accountants LLP
Saxon House
Moseley's Farm Business Centre
Fornham All Saints
Bury St Edmunds
IP28 6JY
Business address
Kempson Way
Bury St Edmunds
IP32 7AR
DENNY BROS HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group statement of financial position
9
Company statement of financial position
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 36
DENNY BROS HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Fair review of the business

The Directors consider that the group's performance is strong.

The Group continues to hold a strong overall asset base, and the Directors consider that adequate finance remains available to take advantage of further business opportunities.

Turnover was stable at £9,471,650 (2023: £9,559,965). Operating Profit increased to £902,367 (2023: £833,068) and profit by before tax increased by 51% to £998,803 (2023: £662,920).

The group continued to maintain a strong balance sheet position, with net assets at the 31 December 2024 of £12,887,372 (2023: £12,890,968). Year end cash and equivalents for the group were £3,301,738 (2023: £3,427,309) and the group remains well placed to invest should needs or opportunities arise.

The Group’s primary activity remains the production of its specialist Fix-a-form booklet/label products, which it supplies to a diverse range of markets from Healthcare and Medical Research through a wide range of consumer products. Within the Group there is a broad range of other activities including engineering, Licensing of IP, other printing, such as specialist signs and name plates, and property management. Appropriate accreditations are maintained within the group including ISO9001, PS9000 (Pharmacutical Packaging) and ISO 14001 (Environmental).

We are proud that the Group is now controlled by an Employee Ownership Trust which owns 60% of the Group, giving all employees an indirect stake in the business in perpetuity. The affairs of the Trust are managed by a Trustee Company, Denny Bros Trustee Limited.

Principal risks and uncertainties

The objective of the group is to manage its financial risks as well as its other business risks within parameters agreed and approved by the company's directors.

Credit risk is not thought to be significant despite large values owed to the group at any one time since the majority of debt lies with “blue chip” customers with excellent credit ratings. However, debtors are continually monitored and, if necessary, supply is withheld to induce payment.

The group maintains significant cash assets to enable it to withstand swings in trade and exchange rates, and to enable resources to be available to take advantage of future business opportunities, hence cashflow and liquidity risks are minimised. The group has good diversity and does not rely excessively on one customer or one market.

In recent years trade has been affected at times by external factors outside of its control such as high inflation, rising energy costs, and increased difficulties trading with some EU countries brought about by Brexit. Unepxected changes in external factors which impact trade continue to be a source of some concern and are much less predictable than they once were and currently the Directors see this as the largest area of risk. The Directors remain alert to the risks prevalent in a commercial environment and continue to take steps to mitigate these as far as possible. The Directors believe the Group remains robust and well placed to meet any new challenges whether expected or unexpected.

Development and performance

Whilst key markets and products are well established and to an extent mature, the Directors consider that there remain significant opportunities for growth, either through organic growth, diversification or acquisition, and this remains a key goal.

 

DENNY BROS HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Key performance indicators

The Directors continue to monitor the performance of the Group using a number of key performance indicators, including sales and profitability, cash generated and customer satisfaction.

Sales and Profit - Sales levels and trading margins are key to ensuring continued profitability and growth. Sales and margins are discussed by the Directors at quarterly Board meetings.

Cash flow -The ability to meet all future business commitments is dependent on monitoring of the company's cash position. Current and future cash requirements are monitored and reported upon on a quarterly and annual basis.

Customer Satisfaction - The Directors believe that to compete effectively in the market, high standards of customer service should be attained. Customer satisfaction is monitored via customer complaint levels and discussed at quarterly Board meetings.

 

On behalf of the board

Mr G D Denny
Director
16 July 2025
DENNY BROS HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

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

Principal activities

The principal activity of the Group continued to be that of manufacturing 'Fix-a-Form' products, general printing, licencing of technology and engineering. The parent company manages the group's property interests, and its turnover, representing rents received, is shown within other operating income.

Results and dividends

The results for the year are set out on page 8.

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

Directors

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

Mr B D Denny
Mr G D Denny
Mr K E Seeley
(Appointed 27 June 2024)
Mr A J Simpson
(Appointed 27 June 2024)
Auditor

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

Strategic report

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr G D Denny
Director
16 July 2025
DENNY BROS HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DENNY BROS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DENNY BROS HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Denny Bros Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our audit was designed to include tests of detail together with an assessment of the control environment to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. This included work on areas where we consider there is a higher risk of fraud including revenue recognition, management override of systems and control, transactions with related parties, commitments and contingencies and accounting estimates.

 

We also obtained an understanding of the legal and regulatory framework that the company operates in, through discussions with the directors and other management, and from our own knowledge and experience of the sector.

 

DENNY BROS HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DENNY BROS HOLDINGS LIMITED
- 7 -

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

 

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

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

Use of our report

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

 

 

Christopher Barrett (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP, Statutory Auditor
Chartered Accountants
Saxon House
Moseley's Farm Business Centre
Fornham All Saints
Bury St Edmunds
IP28 6JY
28 July 2025
DENNY BROS HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Revenue
3
9,471,650
9,559,965
Cost of sales
(5,588,119)
(5,732,520)
Gross profit
3,883,531
3,827,445
Distribution costs
(371,961)
(378,613)
Administrative expenses
(2,755,686)
(2,765,856)
Other operating income
146,483
150,092
Operating profit
4
902,367
833,068
Investment income
8
54,985
16,772
Finance costs
9
(78,549)
(86,523)
Other gains and losses
10
120,000
(100,397)
Profit before taxation
998,803
662,920
Tax on profit
11
(301,316)
(238,144)
Profit for the financial year
27
697,487
424,776
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

The income statement has been prepared on the basis that all operations are continuing operations.

DENNY BROS HOLDINGS LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Non-current assets
Goodwill
13
236,099
-
0
Property, plant and equipment
14
9,129,222
9,401,779
Investment property
15
1,455,000
1,335,000
10,820,321
10,736,779
Current assets
Inventories
19
1,442,448
1,525,967
Trade and other receivables
20
1,896,651
1,742,688
Cash and cash equivalents
3,301,738
3,427,309
6,640,837
6,695,964
Current liabilities
21
(1,054,994)
(1,047,466)
Net current assets
5,585,843
5,648,498
Total assets less current liabilities
16,406,164
16,385,277
Non-current liabilities
22
(2,866,223)
(3,114,223)
Provisions for liabilities
Deferred tax liability
24
652,569
380,086
(652,569)
(380,086)
Net assets
12,887,372
12,890,968
Equity
Called up share capital
26
100,000
100,000
Share premium account
27
189,222
189,222
Revaluation reserve
27
562,145
422,510
Retained earnings
27
12,035,998
12,179,229
Equity attributable to owners of the parent company
12,887,365
12,890,961
Non-controlling interests
7
7
12,887,372
12,890,968

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

The financial statements were approved by the board of directors and authorised for issue on 16 July 2025 and are signed on its behalf by:
16 July 2025
Mr G D Denny
Director
Company registration number 03014594 (England and Wales)
DENNY BROS HOLDINGS LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
14
6,501,198
6,612,788
Investment property
15
1,455,000
1,335,000
Investments
16
2,478,223
1,833,018
10,434,421
9,780,806
Current assets
Trade and other receivables
20
621,066
581,770
Cash and cash equivalents
371,352
556,928
992,418
1,138,698
Current liabilities
21
(640,330)
(1,033,285)
Net current assets
352,088
105,413
Total assets less current liabilities
10,786,509
9,886,219
Non-current liabilities
22
(2,866,223)
(3,114,223)
Provisions for liabilities
Deferred tax liability
24
143,832
128,266
(143,832)
(128,266)
Net assets
7,776,454
6,643,730
Equity
Called up share capital
26
100,000
100,000
Revaluation reserve
27
1,121,889
1,152,088
Retained earnings
27
6,554,565
5,391,642
Total equity
7,776,454
6,643,730

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s profit for the year was £1,833,808 (2023 - £886,667 profit).

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

The financial statements were approved by the board of directors and authorised for issue on 16 July 2025 and are signed on its behalf by:
16 July 2025
Mr G D Denny
Director
Company registration number 03014594 (England and Wales)
DENNY BROS HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Share premium account
Revaluation reserve
Retained earnings
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
Balance at 1 January 2023
100,000
189,222
498,657
12,964,233
13,752,112
7
13,752,119
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
424,776
424,776
-
424,776
Contributions to Employee Ownership Trust as a gift
-
-
-
(1,285,927)
(1,285,927)
-
(1,285,927)
Transfers
-
-
(76,147)
76,147
-
-
-
Balance at 31 December 2023
100,000
189,222
422,510
12,179,229
12,890,961
7
12,890,968
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
-
697,487
697,487
-
697,487
Contributions to Employee Ownership Trust as a gift
-
-
-
(701,083)
(701,083)
-
(701,083)
Transfers
-
-
139,635
(139,635)
-
-
-
Balance at 31 December 2024
100,000
189,222
562,145
12,035,998
12,887,365
7
12,887,372
DENNY BROS HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Revaluation reserve
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 January 2023
100,000
1,235,392
5,707,598
7,042,990
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
886,667
886,667
Contributions to Employee Ownership Trust as a gift
-
-
(1,285,927)
(1,285,927)
Transfers
-
(83,304)
83,304
-
Balance at 31 December 2023
100,000
1,152,088
5,391,642
6,643,730
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
1,833,808
1,833,808
Contributions to Employee Ownership Trust as a gift
-
-
(701,084)
(701,084)
Transfers
-
(30,199)
30,199
-
Balance at 31 December 2024
100,000
1,121,889
6,554,565
7,776,454
DENNY BROS HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
33
1,625,574
2,097,250
Interest paid
(78,549)
(86,523)
Income taxes paid
(171,681)
(61,419)
Net cash inflow from operating activities
1,375,344
1,949,308
Investing activities
Purchase of subsidiary (net of cash received)
(253,650)
-
Contributions to Employee Ownership Trust as a gift
(701,083)
(1,285,927)
Purchase of property, plant and equipment
(373,190)
(1,629,464)
Proceeds from disposal of property, plant and equipment
14,100
273,000
Proceeds from disposal of investment property
-
580,000
Purchase of associates
-
359,776
Repayment of loans
-
5,861
Interest received
54,985
16,772
Net cash used in investing activities
(1,258,838)
(1,679,982)
Financing activities
Repayment of bank loans
(242,077)
(236,294)
Net cash used in financing activities
(242,077)
(236,294)
Net (decrease)/increase in cash and cash equivalents
(125,571)
33,032
Cash and cash equivalents at beginning of year
3,427,309
3,394,277
Cash and cash equivalents at end of year
3,301,738
3,427,309
DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
1
Accounting policies
Company information

Denny Bros Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Kempson Way, Bury St Edmunds, IP32 7AR.

 

The parent company's registered number is 03014594.

 

The group consists of Denny Bros Holdings Limited and all of its subsidiaries.

 

The registered office of Kings Mews (Bury St Edmunds) Management Company Limited is Unit 5 Brunel Business Court, Bury St Edmunds, IP32 7AJ. The registered office of all other subsidiaries, as listed in note 17, is Kempson Way, Bury St Edmunds, Suffolk, IP32 7AR.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006. In the prior year revaluation gains on investment properties were not presented in the statement of comprehensive income, but only in the statement of changes in equity. The comparatives have been restated accordingly.

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

The financial statements have been prepared on the historical cost convention, modified to include the revaluation of investment properties. The principal accounting policies adopted are set out below.

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

 

1.2
Business combinations

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

 

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

DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated financial statements incorporate those of Denny Bros Holdings Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation.

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

1.4
Going concern

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

1.5
Revenue

Turnover represents amounts receivable for goods and services and rents receivable net of VAT and trade discounts, and is recognised on despatch of the goods or in the time period to which it relates. Amounts receivable under licensing agreements (gross of any withholding tax) are recognised in the time period to which they relate.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

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

 

Negative goodwill represents the deficit of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as a negative asset at cost and subsequently measured at cost less accumulated amortisation and accumulated impairment gains. It is considered to have a finite useful life and is being released on a systematic basis over its expected life, which is 5 years.

1.7
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -

Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:

Freehold property
2% straight line
Property improvements
4% straight line
Plant and machinery
5 - 25% reducing balance and 25% per annum straight line
Fixtures, fittings & equipment
10 - 25% reducing balance
Motor vehicles
25% reducing balance

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

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.9
Non-current investments

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

 

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

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

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

 

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

 

1.10
Impairment of non-current assets

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

 

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

DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -

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

 

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

1.11
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

1.13
Financial instruments

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

 

Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

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

1.14
Equity instruments

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

1.15
Taxation

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

Current tax

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

Deferred tax

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

DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

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

1.18
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.19
Foreign exchange

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

1.20

Exemption from audit

Five of the company's subsidiaries are exempt from the requirements of this Act relating to the audit of accounts under section 479A of the Companies Act 2006.

 

These are:

 

Willowbridge Labels Limited, registered number 02773434

Fix- A- Form International Limited, registered number 01632653

Inform Products Ltd, registered number 00334826

Mylands Limited, registered number 03988041

Kings Mews (Bury St Edmunds) Management Company Limited, registered number 05720923

DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of inventories

The group compares costs of machines manufactured to the price quoted upon order, or to subsequent sales where items are manufactured as stock. The group makes an estimate of the percentage of completion of machines using knowledge of the market and historical experience to assess impairment.

Valuation of investment properties

The company values investment properties at fair value. The fair value is arrived at by consulting an independent expert and directors' knowledge of the underlying properties.

Stock valuation

As part of the valuation of stock, management calculate an hourly rate to apply to machine hours to determine labour and overheads that should be absorbed into the stock value in order to arrive at an accurate stock figure at the year-end.

Raw material stock provision

As part of the valuation of raw materials in stock, management review the stock and calculate a provision for obsolete stock. When calculating the provision, management considers the nature and age of the stock as well as applying assumptions around anticipated saleability of stock.

3
Revenue

An analysis of the group's revenue is as follows:

2024
2023
£
£
Revenue analysed by class of business
Manufacture of Fix-a-Form products, general printing and engineering
9,258,444
9,341,533
Royalties
213,206
218,432
9,471,650
9,559,965
DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Revenue
(Continued)
- 21 -
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
8,453,080
8,124,181
Overseas
1,018,570
1,435,783
9,471,650
9,559,964
2024
2023
£
£
Other revenue
Interest income
54,985
16,772
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
15,249
(2,271)
Depreciation of owned property, plant and equipment
615,500
663,771
Loss/(profit) on disposal of property, plant and equipment
16,147
(84,925)
Amortisation of intangible assets
41,665
-
Operating lease charges
32,728
29,661
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
20,000
14,000
Audit of the financial statements of the company's subsidiaries
12,000
11,000
32,000
25,000
DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
64
63
-
-
Distribution
7
6
-
-
Administrative
15
15
1
1
Management
4
5
4
3
Total
90
89
5
4

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,154,314
3,116,568
390,681
296,913
Social security costs
246,063
236,366
47,882
37,918
Pension costs
88,529
91,946
23,560
21,028
3,488,906
3,444,880
462,123
355,859
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
246,969
160,630
Company pension contributions to defined contribution schemes
17,395
16,583
264,364
177,213

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 2).

8
Investment income
2024
2023
£
£
Interest income
Interest on bank deposits
54,032
15,510
Other interest income
953
1,262
Total income
54,985
16,772
DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
9
Finance costs
2024
2023
£
£
Interest on bank overdrafts and loans
78,549
84,331
Other interest
-
2,192
Total finance costs
78,549
86,523
10
Other gains and losses
2024
2023
£
£
Changes in the fair value of investment properties
120,000
-
Other gains and losses
-
(100,397)
120,000
(100,397)

Losses in 2023 relate to the sale of shares in UNICK Fix-a-Form and Printers Ltd.

11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
9,350
-
0
Adjustments in respect of prior periods
-
0
8,942
Total UK current tax
9,350
8,942
Foreign current tax on profits for the current period
19,487
22,489
Total current tax
28,837
31,431
Deferred tax
Origination and reversal of timing differences
271,149
214,322
Previously unrecognised tax loss, tax credit or timing difference
1,330
(7,609)
Total deferred tax
272,479
206,713
Total tax charge
301,316
238,144
DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Taxation
(Continued)
- 24 -

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

2024
2023
£
£
Profit before taxation
998,803
662,920
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
249,701
155,919
Tax effect of expenses that are not deductible in determining taxable profit
17,331
27,856
Tax effect of income not taxable in determining taxable profit
(30,000)
(16,308)
Adjustments in respect of prior years
-
0
8,960
Effect of change in corporation tax rate
-
13,046
Double tax relief
19,487
22,489
Permanent capital allowances in excess of depreciation
20,967
(17,163)
Other permanent differences
-
0
(5,290)
Deferred tax adjustments in respect of prior years
1,330
4,101
Deferred tax not recognised
-
0
(1,055)
Taxable gains/(losses)
22,500
5,668
Adjustment for loss on investment
-
39,921
Taxation charge
301,316
238,144
12
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Investments in associates
16
-
100,397
Recognised in:
Other gains and losses
-
100,397

The impairment losses in respect of financial assets are recognised in other gains and losses in the income statement.

DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
13
Intangible fixed assets
Group
Goodwill
Negative goodwill
Total
£
£
£
Cost
At 1 January 2024
436,865
(1,284,806)
(847,941)
Additions
277,764
-
0
277,764
At 31 December 2024
714,629
(1,284,806)
(570,177)
Amortisation and impairment
At 1 January 2024
436,865
(1,284,806)
(847,941)
Amortisation charged for the year
41,665
-
0
41,665
At 31 December 2024
478,530
(1,284,806)
(806,276)
Carrying amount
At 31 December 2024
236,099
-
0
236,099
At 31 December 2023
-
0
-
0
-
0
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.

More information on impairment movements in the year is given in note 12.

Goodwill represents the excess of the fair value attributed to the investments in the subsidiary undertakings over the fair value of the underlying net assets at the date of acquisition and is being amortised over a five year period, which in the directors' opinion represents a prudent estimate of the period in which the company will derive economic benefit from it.

 

Negative goodwill represents the deficit of the fair value attributed to an investment in a subsidiary undertaking below the fair value of the underlying net assets at the date of acquisition and is being amortised over a five year period, which in the directors' opinion represents a prudent estimate of the period in which the company will derive economic benefit.

DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
14
Property, plant and equipment
Group
Freehold property
Property improvements
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2024
6,061,424
2,000
11,389,767
62,413
116,008
17,631,612
Additions
32,690
-
0
340,500
-
0
-
0
373,190
Business combinations
-
0
-
0
40,950
-
0
-
0
40,950
Disposals
-
0
-
0
(470,579)
-
0
(59,623)
(530,202)
At 31 December 2024
6,094,114
2,000
11,300,638
62,413
56,385
17,515,550
Depreciation and impairment
At 1 January 2024
446,272
2,000
7,651,081
39,452
91,028
8,229,833
Depreciation charged in the year
73,193
-
0
536,909
2,861
2,537
615,500
Eliminated in respect of disposals
-
0
-
0
(455,169)
-
0
(44,786)
(499,955)
Depreciation upon acquisition
-
0
-
0
40,950
-
0
-
0
40,950
At 31 December 2024
519,465
2,000
7,773,771
42,313
48,779
8,386,328
Carrying amount
At 31 December 2024
5,574,649
-
0
3,526,867
20,100
7,606
9,129,222
At 31 December 2023
5,615,152
-
0
3,738,686
22,961
24,980
9,401,779
DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Property, plant and equipment
(Continued)
- 27 -
Company
Freehold property
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
6,627,939
641,666
47,670
50,038
7,367,313
Additions
-
0
7,589
-
0
-
0
7,589
Disposals
-
0
-
0
-
0
(50,038)
(50,038)
At 31 December 2024
6,627,939
649,255
47,670
-
0
7,324,864
Depreciation and impairment
At 1 January 2024
539,781
145,494
34,049
35,201
754,525
Depreciation charged in the year
77,573
24,842
1,927
-
0
104,342
Eliminated in respect of disposals
-
0
-
0
-
0
(35,201)
(35,201)
At 31 December 2024
617,354
170,336
35,976
-
0
823,666
Carrying amount
At 31 December 2024
6,010,585
478,919
11,694
-
0
6,501,198
At 31 December 2023
6,088,158
496,172
13,621
14,837
6,612,788
15
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 January 2024
1,335,000
1,335,000
Net gains or losses through fair value adjustments
120,000
120,000
At 31 December 2024
1,455,000
1,455,000

Investment property comprises commercial and residential properties let out to third parties. The fair value of the investment property has been arrived at on the basis of a valuation carried out by Eddisons Chartered Surveyors, at 31 December 2024. The valuation was produced in accordance with the RICS Valuation - Global Standards 2021.

16
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
17
-
0
-
0
2,478,223
1,833,018
DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
16
Fixed asset investments
(Continued)
- 28 -
Movements in non-current investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024
1,833,018
Additions
732,984
At 31 December 2024
2,566,002
Impairment
At 1 January 2024
-
Impairment losses
87,779
At 31 December 2024
87,779
Carrying amount
At 31 December 2024
2,478,223
At 31 December 2023
1,833,018
17
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Denny Bros Limited
England & Wales
Manufacture of Fix-a-Form products
Ordinary
100.00
Ditac Limited
England & Wales
Dormant
Ordinary
100.00
Fix-a-Form International Limited
England & Wales
Worldwide licencing and engineering
Ordinary
100.00
Kings Mews (B.S.E.) Management Co Limited
England & Wales
Property Management
Ordinary
94.00
Inform Products Ltd
England & Wales
Printing and light engineering
Ordinary
100.00
Willowbridge Labels Limited
England & Wales
Manufacture of self-adhesive labels
Ordinary
100.00
Mylands Limited
England & Wales
Manufacture of self-adhesive labels
Ordinary
100.00
DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
18
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,577,725
1,475,839
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
3,739,902
4,035,421
n/a
n/a
19
Inventories
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
659,573
616,398
-
-
Work in progress
579,799
545,965
-
-
Finished goods and goods for resale
203,076
363,604
-
0
-
0
1,442,448
1,525,967
-
-
20
Trade and other receivables
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade receivables
1,564,183
1,457,597
22,152
24,240
Corporation tax recoverable
58,732
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
565,871
519,539
Other receivables
133,920
124,008
2,724
-
0
Prepayments and accrued income
139,816
161,083
11,986
9,658
1,896,651
1,742,688
602,733
553,437
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
18,333
28,333
Total debtors
1,896,651
1,742,688
621,066
581,770
DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
21
Current liabilities
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
23
248,000
242,077
248,000
242,077
Payments received on account
13,241
21,545
-
0
-
0
Trade payables
517,501
529,231
48,653
46,470
Amounts owed to group undertakings
-
0
-
0
294,711
709,891
Corporation tax payable
9,350
-
0
-
0
-
0
Other taxation and social security
171,965
126,268
12,951
16,017
Other payables
890
752
-
0
-
0
Accruals and deferred income
94,047
127,593
36,015
18,830
1,054,994
1,047,466
640,330
1,033,285

£248,000 (2023: £242,077) of the company's bank loans is secured by way of a fixed and floating charge over the assets of the company and 5 (2023: 6) subsidiary undertakings to the benefit of Barclays Bank PLC.

 

There is a Cross Guarantee and Debenture in place between the company and 5 (2023: 6) subsidiary undertakings in favour of Barclays Bank PLC.

22
Non-current liabilities
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
23
2,866,223
3,114,223
2,866,223
3,114,223

£2,866,223 (2023: £3,114,223) of the company's bank loans and overdraft is secured by way of a fixed and floating charge over the assets of the company and 5 (2023: 6) subsidiary undertakings to the benefit of Barclays Bank PLC.

 

There is a Cross Guarantee and Debenture in place between the company and 5 (2023: 6) subsidiary undertakings in favour of Barclays Bank PLC.

Amounts included above which fall due after five years are as follows:
Payable by instalments
1,812,033
2,085,213
1,812,033
2,085,213
DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
23
Borrowings
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
3,114,223
3,356,300
3,114,223
3,356,300
Payable within one year
248,000
242,077
248,000
242,077
Payable after one year
2,866,223
3,114,223
2,866,223
3,114,223

Bank loans include a facility drawn down in the prior year. The facility was drawn down in January 2021 and had a capital amount of £4,000,000. On inception, the loan was repayable over 15 years in monthly instalments. The final repayment date falls in January 2036. Interest is charged at 2%, per annum. Interest is paid monthly.

24
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Group
£
£
ACAs
681,564
751,562
Tax losses
(59,811)
(375,014)
Revaluations
27,597
5,097
Other movement
3,219
(1,559)
652,569
380,086
Liabilities
Liabilities
2024
2023
Company
£
£
ACAs
116,235
123,284
Revaluations
27,597
5,097
Other movement
-
(115)
143,832
128,266
DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
24
Deferred taxation
(Continued)
- 32 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
380,086
128,266
Charge to profit or loss
272,483
15,566
Liability at 31 December 2024
652,569
143,832

The deferred tax liability set out above relates to accelerated capital allowances and revaluations of investment properties that are expected to reverse upon the sale of the relevant assets. The element in relation to losses are expected to be relieved against future trading profits of the group in the year-ended 31 December 2025.

25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
88,529
91,946

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

26
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100,000
100,000
100,000
100,000

Called up share capital represents the nominal value of shares that have been issued.

 

Ordinary shares have full rights in the company with respect to voting, participating in dividends and participating in the distribution of capital in the event of winding up.

 

27
Reserves
Share premium

The share premium account includes payments made to acquire shares in excess of their nominal value.

Revaluation reserve

The revaluation reserve comprises the excess of market value over cost of investment properties at the Balance sheet date less the deferred tax that would arise upon sale at market value.

Retained earnings

The profit and loss accounts includes all retained profits less losses to the Balance Sheet date.

DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
28
Acquisition of a business

On the 15 April 2024 the group acquired 100% of the issued capital of Mylands Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Trade and other receivables
255,554
-
255,554
Cash and cash equivalents
479,333
-
479,333
Trade and other payables
(186,202)
-
(186,202)
Tax liabilities
(93,466)
-
(93,466)
Total identifiable net assets
455,219
-
455,219
Goodwill
277,764
Total consideration
732,983
The consideration was satisfied by:
£
Cash
479,333
Acqusition cost
250,000
Legal fees/stamp duty
3,650
732,983
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Revenue
983,112
Profit after tax
79,776

The goodwill arising on the acquisition of the business is attributable to the customer base and reputation built up in the local area.

DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 34 -
29
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
as restated
as restated
£
£
£
£
Within one year
52,744
39,552
16,936
11,751
Between two and five years
67,656
77,714
18,981
22,523
120,400
117,266
35,917
34,274
Lessor

The operating leases disclosed in relation to the group represent the rental of property to third parties. The leases are negotiated of terms over 2 years, 3 years, 5 years or 10 years. Some of the leases include a break clause after a set period of time.

 

The operating leases disclosed in relation to the company represent those included above, as well as rental of property to companies within the group. The leases are negotiated of terms over 10 years. At the end of the lease term, there is no option for the lease to continue on a rolling basis if agreed by all parties - instead a new lease agreement for a fixed term will be drawn up. Some of the leases include a break clause after 5 years.

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
78,850
61,200
493,650
476,000
Between two and five years
185,150
152,500
1,844,350
1,811,700
In over five years
60,000
42,250
60,000
457,050
324,000
255,950
2,398,000
2,744,750
30
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
480,867
468,185
DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
30
Related party transactions
(Continued)
- 35 -
Transactions with related parties

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

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Associated company
-
69,686
-
-
Other related parties
-
-
63,457
53,613

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
1,603
1,603
31
Directors' transactions

Dividends totalling £0 (2023 - £0) were paid in the year in respect of shares held by the company's directors.

Advances or credits have been granted by the group to its directors as follows:

At the year-end, amounts of £nil (2023 - £200) were outstanding as payable to a director of the group. These amounts have been included within other creditors in the financial statements.

32
Controlling party

The ultimate parent company is Denny Bros Trustee Limited, acting on behalf of The Denny Bros Employee Ownership Trust. This company is incorporated in England & Wales. Copies of the group financial statements are available from Kempson Way, Bury St Edmunds, Suffolk, IP32 7AR.

The ltimate parent company is Denny Bros Trustee Limited, acting on behalf of The Denny Bros Employee Ownership Trust. Both are companies incorporated in England & Wales.

DENNY BROS HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 36 -
33
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
697,487
424,776
Adjustments for:
Taxation charged
301,316
238,144
Finance costs
78,549
86,523
Investment income
(54,985)
(16,772)
Loss/(gain) on disposal of property, plant and equipment
16,147
(84,925)
Fair value gain on investment properties
(120,000)
-
0
Amortisation and impairment of intangible assets
41,665
-
Depreciation and impairment of property, plant and equipment
615,500
663,771
Other gains and losses
-
100,397
Movements in working capital:
Decrease in inventories
83,519
216,138
Decrease in trade and other receivables
160,323
802,344
Decrease in trade and other payables
(193,947)
(333,146)
Cash generated from operations
1,625,574
2,097,250
34
Analysis of changes in net funds - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
3,427,309
(125,571)
3,301,738
Borrowings excluding overdrafts
(3,356,300)
242,077
(3,114,223)
71,009
116,506
187,515
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