Company registration number 01696899 (England and Wales)
DENNY BROS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
DENNY BROS LIMITED
COMPANY INFORMATION
Directors
Mr B D Denny
Mr G D Denny
Mr A J Simpson
Mr K E Seeley
Secretary
Mrs R Smith
Company number
01696899
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
DENNY BROS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 21
DENNY BROS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
Another strong year. Sales turnover was 4% down on 2023 at £6,901,706 and cost of sales was 1% up resulting in a reduced gross profit margin of 39% (2023: 41%). Profit before tax of £715,799 was 25% lower than 2023 (but still strong). These differences are almost entirely attributable to a large batch of orders for a new customer which were manufactured during the year and ready to ship but delayed by the customer into the New Year due to them experiencing technical difficulties resulting in a delayed product launch. Were it not for this delay then 2024 sales and profit would have been very similar to 2023.
General inflation hovered around 3-4% during the year and this drove up costs to an extent including employment costs as staff received an inflationary matching pay award. Export sales were 36% down on the previous year which is a concern although this is largely considered to be due to the timing of customer ordering cycles rather than a trend. We did manage to secure a few export orders from outside of the EU including from USA and Australia. This is an area we have been targeting with our marketing and it was good to have some success. The value is small compared to our sales to EU countries but hopefully we can build on it.
At year end the company had net assets of £6,203,133 (2023: £6,207,034) and net current assets of £4,013,449 (2023: £3,919,128). The company itself has no external financing in place but it is the subject of a fixed and floating charge over the company's assets in favour of Barclays PLC as a result of the immediate parent undertaking, Denny Bros Holdings Limited, entering into financing arrangements in 2021. The company benefits from a strong working capital position and the directors consider that adequate finance is available for continued trading and for any capital investment that the Board considers necessary.
The company has history of strong profitability lasting more than 40 years and the current directors are confident that the Company will continue to be profitable in the future.
Principal risks and uncertainties
The objective of the company 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 company 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 company 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 directors remain alert to the risks prevalent in a commercial environment and continue to take steps to minimise or mitigate these risks. They consider the primary business risks affecting the company to be external such as inflation, changes in government tax policy, changes in the world economy. Continued investment in new equipment and new business opportunities is seen as an important strategy.
Inflation and price rises in the marketplace
The Directors have also taken into consideration the effects that inflation and price rises in the marketplace will have on the company and are proactive in managing the impact so that gross profit margin is maintained as far as reasonably possible.
DENNY BROS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Development and performance
As a business, we expect to have a successful and profitable 2025. There may be some challenges along the way – as there are in any year but we feel we are in a strong position to be able to overcome any obstacles and push forward with our plans.
Our customers are from a broad range of Industries and from many different countries. In future there will be growth within some sectors while others may experience some cutbacks. New sectors may also emerge. The directors feel that the broad customer base gives the company resilience and opportunity for growth as new potential markets emerge. The directors vigilantly review changes in the market place to ensure the business reacts and adapts and can take advantage of opportunities as they arise.
Key performance indicators
The directors monitor the performance of the company 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.
Mr G D Denny
Director
16 July 2025
DENNY BROS 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 company continued to be that of manufacturing 'Fix-a-Form' products and that of general printers. The review of the business is included within the Strategic Report on page 1.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £687,109. The directors do not recommend payment of a final 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 A J Simpson
Mr K E Seeley
Auditor
In accordance with the Company's Articles, a resolution proposing that Ensors Accountants LLP be reappointed as auditors of the company will be put at a General Meeting.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the future developments and principal risks and uncertainties and future development and performance.
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 company’s auditor 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 company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr G D Denny
Director
16 July 2025
DENNY BROS 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 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; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
DENNY BROS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DENNY BROS LIMITED
- 5 -
Opinion
We have audited the financial statements of Denny Bros Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
DENNY BROS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DENNY BROS LIMITED (CONTINUED)
- 6 -
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 and the directors' report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
DENNY BROS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DENNY BROS LIMITED (CONTINUED)
- 7 -
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company are complying with the legal and regulatory framework both at the planning stage and reminded to remain alert throughout the audit;
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
audited the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
reviewing minutes of those charged with governance;
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud;
robustly challenged accounting estimates to ensure no indication of management bias.
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.
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 LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Revenue
3
6,901,706
7,152,290
Cost of sales
(4,232,654)
(4,206,885)
Gross profit
2,669,052
2,945,405
Distribution costs
(357,313)
(351,081)
Administrative expenses
(1,644,153)
(1,644,115)
Operating profit
4
667,586
950,209
Investment income
48,213
12,394
Finance costs
(2,192)
Profit before taxation
715,799
960,411
Tax on profit
7
(32,591)
(220,769)
Profit for the financial year
683,208
739,642
The income statement has been prepared on the basis that all operations are continuing operations.
DENNY BROS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
9
2,720,123
2,785,754
Current assets
Inventories
10
777,615
621,641
Trade and other receivables
11
1,576,267
1,431,423
Cash and cash equivalents
2,097,809
2,253,737
4,451,691
4,306,801
Current liabilities
12
(438,242)
(387,673)
Net current assets
4,013,449
3,919,128
Total assets less current liabilities
6,733,572
6,704,882
Provisions for liabilities
Deferred tax liability
13
530,439
497,848
(530,439)
(497,848)
Net assets
6,203,133
6,207,034
Equity
Called up share capital
15
100,000
100,000
Share premium account
16
189,222
189,222
Retained earnings
17
5,913,911
5,917,812
Total equity
6,203,133
6,207,034
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:
Mr G D Denny
Director
Company registration number 01696899 (England and Wales)
DENNY BROS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Share premium account
Retained earnings
Total
Notes
£
£
£
£
Balance at 1 January 2023
100,000
189,222
5,949,422
6,238,644
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
739,642
739,642
Dividends
8
-
-
(771,252)
(771,252)
Balance at 31 December 2023
100,000
189,222
5,917,812
6,207,034
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
683,208
683,208
Dividends
8
-
-
(687,109)
(687,109)
Balance at 31 December 2024
100,000
189,222
5,913,911
6,203,133
DENNY BROS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
1
Accounting policies
Company information
Denny Bros Limited is a private company limited by shares incorporated in England and Wales. The registered office is Kempson Way, Bury St Edmunds, 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.
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. The principal accounting policies adopted are set out below.
This 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Denny Bros Holdings Ltd. These consolidated financial statements are available from Kempson Way, Bury St Edmunds, Suffolk, IP32 7AR.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade and settlement discounts.
Revenue represents amounts receivable for printing and related services and is recognised upon despatch of the goods.
1.4
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 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 12 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings Leasehold
4% on cost
Plant and machinery
10%/20% on reducing balance
Motor vehicles
25% on 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 credited or charged to profit or loss.
1.5
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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.
1.6
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.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
DENNY BROS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
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.
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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic 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 company after deducting all of its liabilities.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
DENNY BROS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
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 company’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.
1.11
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.
1.12
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.13
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 leases asset are consumed.
1.14
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.
DENNY BROS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
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 company's revenue is as follows:
2024
2023
£
£
Revenue analysed by class of business
Manufacture of Fix-a-form products and general printing
6,901,706
7,152,290
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
6,172,611
6,007,657
Overseas Sales
729,095
1,144,633
6,901,706
7,152,290
2024
2023
£
£
Other revenue
Interest income
48,213
12,394
DENNY BROS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
12,857
(4,438)
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
11,000
Depreciation of owned property, plant and equipment
442,753
470,790
Loss/(profit) on disposal of property, plant and equipment
6,781
(51,629)
Operating lease charges
32,728
29,661
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production staff
45
44
Distribution staff
7
6
Administrative staff
6
6
Management staff
4
5
Total
62
61
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,976,061
1,963,299
Social security costs
198,181
194,041
Pension costs
57,024
61,672
2,231,266
2,219,012
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
34,429
113,093
Company pension contributions to defined contribution schemes
1,691
5,027
36,120
118,120
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 2).
DENNY BROS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
7
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
1,114
Deferred tax
Origination and reversal of timing differences
32,591
219,655
Total tax charge
32,591
220,769
Factors that may affect future tax charges
Increase in the UK Corporation Tax rate from 19% to 25% (19% effective from 1 April 2017, and 25% effective from 1 April 2023) have been substantively enacted. This will impact the company's future tax charge accordingly. The value of the deferred tax liability at the statement of financial position date has been calculated using the applicable rate when the liability is expected to be realised.
The company has a deferred tax liability of £544,802 (2023: £497,848) in respect of losses, accelerated capital allowances and short term timing differences measured at a rate of 25% (2023: 25%).
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
715,799
960,411
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
178,950
225,889
Tax effect of expenses that are not deductible in determining taxable profit
631
5,683
Adjustments in respect of prior years
1,127
Effect of change in corporation tax rate
13,046
Group relief
(147,382)
Permanent capital allowances in excess of depreciation
392
(24,176)
Deferred tax adjustments in respect of prior years
(800)
Taxation charge for the year
32,591
220,769
8
Dividends
2024
2023
£
£
Interim paid
687,109
771,252
DENNY BROS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
9
Property, plant and equipment
Land and buildings Leasehold
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
39,166
9,213,487
54,385
9,307,038
Additions
32,690
353,213
385,903
Disposals
(309,218)
(309,218)
At 31 December 2024
71,856
9,257,482
54,385
9,383,723
Depreciation and impairment
At 1 January 2024
22,728
6,453,851
44,705
6,521,284
Depreciation charged in the year
2,149
438,183
2,421
442,753
Eliminated in respect of disposals
(300,437)
(300,437)
At 31 December 2024
24,877
6,591,597
47,126
6,663,600
Carrying amount
At 31 December 2024
46,979
2,665,885
7,259
2,720,123
At 31 December 2023
16,438
2,759,636
9,680
2,785,754
10
Inventories
2024
2023
£
£
Raw materials and consumables
254,934
238,747
Work in progress
522,681
382,894
777,615
621,641
11
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
767,458
909,041
Corporation tax recoverable
58,732
Amounts owed by group undertakings
508,828
274,029
Other receivables
130,432
115,799
Prepayments and accrued income
110,817
132,554
1,576,267
1,431,423
DENNY BROS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
12
Current liabilities
2024
2023
£
£
Trade payables
246,120
226,801
Amounts owed to group undertakings
100,942
22,312
Taxation and social security
47,807
47,487
Other payables
632
752
Accruals and deferred income
42,741
90,321
438,242
387,673
13
Deferred taxation
Deferred tax assets and liabilities are offset where the 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
Balances:
£
£
Acclerated Capital Allowances
527,224
586,781
Tax losses
-
(87,489)
Short term timing differences
3,215
(1,444)
530,439
497,848
2024
Movements in the year:
£
Liability at 1 January 2024
497,848
Charge to profit or loss
32,591
Liability at 31 December 2024
530,439
The deferred tax liability set out above relates to accelerated capital allowances and unused tax losses. The full value of the deferred tax asset that has been recognised as a result of unused tax losses is expected to be reversed in the next financial year.
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
57,024
61,672
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
DENNY BROS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
15
Share capital
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
The company has one class of ordinary shares. These shares carry full rights in respect of distributions of dividends, voting and rank equally in the repayment of capital in the event of winding up.
Called up share capital represents the nominal value of shares that have been issued.
16
Share premium account
This reserve records the premium received on shares issued by the company.
17
Retained earnings
The Profit and loss account includes all current and prior period retained profits and losses.
18
Financial commitments, guarantees and contingent liabilities
£3,114,223 (2023: £3,356,300) of the group bank loans and overdrafts is secured by way of a fixed and floating charge over the assets of the company and 5 fellow group undertakings to the benefit of Barclays Bank PLC.
There is a Cross Guarantee and Debenture in place between the company and 5 (2023: 6) fellow group undertakings in favour of Barclays Bank PLC.
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
303,025
294,357
Between two and five years
1,127,876
1,131,608
In over five years
270,000
1,430,901
1,695,965
20
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
DENNY BROS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
20
Related party transactions
(Continued)
- 21 -
Purchases
Purchases
2024
2023
£
£
Other related parties
38,114
37,135
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Entities under common control
378
378
Other related parties
1,225
1,225
21
Ultimate controlling party
The immediate parent company is Denny Bros Holdings Ltd, and the ultimate parent company is Denny Bros Trustee Limited, acting on behalf of The Denny Bros Employee Ownership Trust. Both are companies incorporated in England & Wales. Copies of the group financial statements are available from Kempson Way, Bury St Edmunds, Suffolk, IP32 7AR.
The following are the parents of the largest and smallest groups in which this company's results are consolidated:
Largest group
Denny Bros Holdings Limited
Smallest group
Denny Bros Holdings Limited
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