Company registration number 10690791 (England and Wales)
DB REALISATIONS LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 NOVEMBER 2024
DB REALISATIONS LIMITED
COMPANY INFORMATION
Directors
W Rawkins
Apadana Management Limited
Mr A Amiri
(Appointed 8 May 2025)
Company number
10690791
Registered office
c/o A2e Industries Limited
No 1 Marsden Street
Manchester
M2 1HW
Auditor
Beavis Morgan Audit Limited
82 St John Street
London
EC1M 4JN
DB REALISATIONS 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 balance sheet
9
Company balance sheet
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 - 33
DB REALISATIONS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 1 -
The directors present their strategic report for the period ended 30 November 2024.
Introduction
The group's turnover remained strong and consistent, being £18.6 million in 2024 and £18.4 million in 2023.
As with all UK businesses, the group saw increases in costs throughout 2024 driven by increased inflation in the UK economy and saw a decrease in Gross Profit of £0.7 million with GPM decreasing from 36.3% in 2023 to 32.1% in 2024.
The group's continued mix of customers and sectors within the removals and storage industry also supported the strong consistent financial performance in 2024 resulting in reporting Operating Profit of £555,677 versus £688,812 in 2023.
The group also restructured its finances at the end of the previous period and on 1st December 2023 repaid the loan due to Connection Capital of £2.3 million. On the same date, Connection Capital LLP exercised the warrant and option agreement requiring DB Realisations Limited (formerly Doree Bonner Holdings Limited) to purchase the issued Class C Ordinary warrant shares for total consideration of £0.75m. On 1st December the group also took out a new loan with Close Invoice Finance Limited for £1.25 million repayable over 3 years. This restructuring resulted in some exceptional costs in 2023 which did not repeat in 2024.
To give a true reflection of the trading performance of the group, the Profit and Loss for the period was as follows:
2024
2023
£'000s
£'000s
Turnover
18,614
18,445
Cost of sales (before depreciation and amortisation)
(12,069)
(11,300)
Gross profit (before depreciation and amortisation)
6,545
7,146
Administrative expenses (before depreciation, amortisation and exceptional items)
(4,861)
(5,047)
Operating profit before depreciation, amortisation and exceptional items
1,685
2,099
Depreciation and related charges
(649)
(566)
Amortisation
(480)
(477)
Exceptional items
-
(367)
Reported operating profit
556
689
DB REALISATIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 2 -
Fair review of the business
The directors are pleased to report that the group generated an operating profit of £555,677 (2023: £688,812) which helped the company generate cash inflows from operations of £994,647 (2023: £3,210,763).
Cash and cash equivalents decreased during 2024 ending the period at £73,358 compared to £1,053,206 at the beginning of the period.
Given the nature of the business, the company’s directors are of the opinion that analysis using KPI’s, other than those which emerge from the financial statements and discussed in the business review above are not necessary for an understanding of the development.
Future Developments
The group continues its strategy to grow the business by developing existing revenue streams and existing customers. The group also continues to review opportunities to grow the business through acquisitions as well as expanding the customer base.
In addition, the group continues its annual fleet investment to ensure operational efficiency and compliance with regulation.
On 29 April 2025, the company sold its entire shareholding in Kelerbay Limited to Gosselin Mobility UK Limited.
Principal risks and uncertainties
Its primary commercial risk is in generating and continuing to generate turnover which it does through maintaining its reputation in the market place for good and comprehensive removal and storage services. It also has an extremely diverse customer base in terms of the markets it operates in and the geographic spread of its branches assists this process.
Financial risk operations
The board of the group is responsible for managing the liquidity, interest and foreign currency risks associated with the group's activities.
In addition to cash and borrowings held with the group's bankers the group has other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.
Liquidity risk
The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The group limits its exposure to interest rate risk on its fixed rate borrowings by ensuring that they are taken out at the most competitive rates available and by keeping borrowings to the minimum conducive to the profitable growth of the business.
Foreign currency risk
The group's principal foreign currency exposure arises from trading with overseas companies. This is limited by the regular settlement of balances with overseas trading partners.
W Rawkins
Director
19 August 2025
DB REALISATIONS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 3 -
The directors present their annual report and financial statements for the period ended 30 November 2024.
Principal activities
The principal activity of the company is that of an investment holding company. The principal activity of the group continued to be that of the provision of removals and storage services.
On the 13 May 2025, the company changed its name from Doree Bonner Holdings Limited to DB Realisations Limited.
Results and dividends
The results for the period are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
G Watson
(Resigned 29 April 2025)
G Lyall
(Resigned 29 April 2025)
W Rawkins
Apadana Management Limited
S Norrington
(Appointed 7 March 2024 and resigned 29 April 2025)
J I Herbert
(Appointed 7 March 2024 and resigned 29 April 2025)
Mr A Amiri
(Appointed 8 May 2025)
Future developments
On 29 April 2025, DB Realisations Limited sold its entire shareholding in Kelerbay Limited, a subsidiary of the group. Please see note 25 for further details.
Auditor
The auditor, Beavis Morgan Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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
W Rawkins
Director
19 August 2025
DB REALISATIONS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 30 NOVEMBER 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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
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.
DB REALISATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DB REALISATIONS LIMITED
- 5 -
Opinion
We have audited the financial statements of DB Realisations Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 30 November 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, 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 a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 November 2024 and of the group's loss for the period 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 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.
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 period 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.
DB REALISATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DB REALISATIONS 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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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.
DB REALISATIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DB REALISATIONS LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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.
Richard Thacker (Senior Statutory Auditor)
For and on behalf of Beavis Morgan Audit Limited
20 August 2025
Chartered Accountants
Statutory Auditor
82 St John Street
London
EC1M 4JN
DB REALISATIONS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 8 -
Period
Period
ended
ended
30 November
1 December
2024
2023
Notes
£
£
Turnover
3
18,613,596
18,445,248
Cost of sales
(12,622,632)
(11,748,000)
Gross profit
5,990,964
6,697,248
Administrative expenses
(5,435,287)
(6,008,436)
Operating profit
4
555,677
688,812
Interest receivable and similar income
1,852
2,151
Interest payable and similar expenses
7
(1,020,402)
(502,759)
(Loss)/profit before taxation
(462,873)
188,204
Tax on (loss)/profit
8
(203,392)
(68,663)
(Loss)/profit for the financial period
(666,265)
119,541
(Loss)/profit for the financial period is all attributable to the owners of the parent company.
Total comprehensive income for the period is all attributable to the owners of the parent company.
DB REALISATIONS LIMITED
GROUP BALANCE SHEET
AS AT
30 NOVEMBER 2024
30 November 2024
- 9 -
30 November 2024
1 December 2023
Notes
£
£
£
£
Fixed assets
Goodwill
9
1,474,250
1,953,338
Other intangible assets
9
5,600
Total intangible assets
1,479,850
1,953,338
Tangible assets
10
3,024,343
2,717,262
4,504,193
4,670,600
Current assets
Stocks
14
75,237
106,686
Debtors
15
3,030,668
3,287,977
Cash at bank and in hand
116,261
1,053,206
3,222,166
4,447,869
Creditors: amounts falling due within one year
16
(5,824,266)
(7,064,296)
Net current liabilities
(2,602,100)
(2,616,427)
Total assets less current liabilities
1,902,093
2,054,173
Creditors: amounts falling due after more than one year
17
(2,994,727)
(2,567,732)
Provisions for liabilities
Deferred tax liability
20
653,443
566,253
(653,443)
(566,253)
Net liabilities
(1,746,077)
(1,079,812)
Capital and reserves
Called up share capital
22
100,000
100,000
Share premium account
750,000
750,000
Capital redemption reserve
111
111
Other reserves
61,894
779,754
Profit and loss reserves
(2,658,082)
(2,709,677)
Total equity
(1,746,077)
(1,079,812)
The financial statements were approved by the board of directors and authorised for issue on 19 August 2025 and are signed on its behalf by:
19 August 2025
W Rawkins
Director
Company registration number 10690791 (England and Wales)
DB REALISATIONS LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2024
30 November 2024
- 10 -
30 November 2024
1 December 2023
Notes
£
£
£
£
Fixed assets
Investments
11
7,245,469
7,245,469
Current assets
Debtors
15
10,000
10,000
Cash at bank and in hand
49
27
10,049
10,027
Creditors: amounts falling due within one year
16
(4,934,065)
(4,800,121)
Net current liabilities
(4,924,016)
(4,790,094)
Total assets less current liabilities
2,321,453
2,455,375
Creditors: amounts falling due after more than one year
17
(1,443,106)
(812,286)
Net assets
878,347
1,643,089
Capital and reserves
Called up share capital
22
100,000
100,000
Share premium account
750,000
750,000
Capital redemption reserve
111
111
Other reserves
61,894
779,754
Profit and loss reserves
(33,658)
13,224
Total equity
878,347
1,643,089
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the period was £764,742 (2023 - £1,837,451 profit).
The financial statements were approved by the board of directors and authorised for issue on 19 August 2025 and are signed on its behalf by:
19 August 2025
W Rawkins
Director
Company registration number 10690791 (England and Wales)
DB REALISATIONS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 11 -
Share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 December 2022
100,000
841,743
(2,141,207)
(1,199,464)
Period ended 1 December 2023:
Profit and total comprehensive income
-
-
-
-
119,541
119,541
Issue of share capital
22
111
750,000
-
-
-
750,111
Own shares acquired
22
-
-
-
-
(750,000)
(750,000)
Cancellation of shares
22
(111)
-
111
-
-
Unwinding of discount on preference shares
-
-
-
(61,989)
61,989
-
Balance at 1 December 2023
100,000
750,000
111
779,754
(2,709,677)
(1,079,812)
Period ended 30 November 2024:
Loss and total comprehensive income
-
-
-
-
(666,265)
(666,265)
Unwinding of discount on preference shares
-
-
-
(717,860)
717,860
-
Balance at 30 November 2024
100,000
750,000
111
61,894
(2,658,082)
(1,746,077)
DB REALISATIONS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 12 -
Share capital
Share premium account
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 December 2022
100,000
841,743
(1,136,216)
(194,473)
Period ended 1 December 2023:
Profit and total comprehensive income for the period
-
-
-
-
1,837,451
1,837,451
Issue of share capital
22
111
750,000
-
-
-
750,111
Own shares acquired
22
-
-
-
-
(750,000)
(750,000)
Cancellation of shares
22
(111)
-
111
-
-
Unwinding of discount on preference shares
-
-
-
(61,989)
61,989
-
Balance at 1 December 2023
100,000
750,000
111
779,754
13,224
1,643,089
Period ended 30 November 2024:
Profit and total comprehensive income
-
-
-
-
(764,742)
(764,742)
Unwinding of discount on preference shares
-
-
-
(717,860)
717,860
-
Balance at 30 November 2024
100,000
750,000
111
61,894
(33,658)
878,347
DB REALISATIONS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
994,647
3,210,763
Interest paid
(302,542)
(360,770)
Income taxes paid
(313,950)
-
Net cash inflow from operating activities
378,155
2,849,993
Investing activities
Business acquisitions (net of cash acquired)
-
(301,109)
Purchase of intangible assets
(6,000)
-
Purchase of tangible fixed assets
(171,369)
(289,156)
Proceeds from disposal of tangible fixed assets
18,279
28,450
Deferred consideration paid
(3,500)
(44,500)
Interest received
1,852
2,151
Net cash used in investing activities
(160,738)
(604,164)
Financing activities
Proceeds from issue of shares
-
111
Redemption of shares
(750,000)
Proceeds from borrowings
-
1,500,000
Repayment of borrowings
(615,924)
(2,553,980)
Payment of finance leases obligations
(581,341)
(583,903)
Net cash used in financing activities
(1,197,265)
(2,387,772)
Net decrease in cash and cash equivalents
(979,848)
(141,943)
Cash and cash equivalents at beginning of period
1,053,206
1,195,149
Cash and cash equivalents at end of period
73,358
1,053,206
Relating to:
Cash at bank and in hand
116,261
1,053,206
Bank overdrafts included in creditors payable within one year
(42,903)
-
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 14 -
1
Accounting policies
Company information
DB Realisations Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is c.o A2E Industries Limited, No. 1 Marsden Street, Manchester, M2 1HW.
On 13 May 2025, the company changed its name from Doree Bonner Holdings Limited to DB Realisations Limited
The group consists of DB Realisations Limited and all of its subsidiaries.
1.1
Reporting period
The accounting period for 2023 was extended to 1 December 2023 to include the completion of the refinancing of the parent company's debt which was in progress at 30 November 2023. The accounting reference date for this set of financial statements is the 30 November 2024 and all future financial statements will be made up to 30 November.
1.2
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 under the historical cost convention. 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:
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;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
1.3
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.
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company, DB Realisations Limited, together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 November 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. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.5
Going concern
The group is financed through a combination of external debt and shareholder loans and enjoys the continued support of its shareholders. A portion of the external debt was repaid on 1 December 2023. The directors have considered all the above matters and believe it is appropriate to adopt the going concern basis of preparation of the financial statements.
1.6
Turnover
Turnover represents amounts receivable for removal services net of VAT. Turnover is recognised when a job is fully wrapped, packed and collected for dispatch. Should the collection of the job straddle the period end, the relevant proportion of the revenue relating to the services is accrued. All freight and shipping costs, including insurance costs, relating to the job are recognised on the same basis.
Storage revenue is recognised in the period in which the service is provided.
1.7
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 10 years. Useful economic life of goodwill has been assessed on the basis of future expected profits contributed by the acquired businesses over its expected life. Included in goodwill are other intangibles such as brand and customer databases for which the value cannot be reliably estimated.
For the purposes of impairment testing, goodwill is allocated to the cash-generating unit to which goodwill has been allocated and tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired.
1.8
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Software
20% straight line
1.9
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 16 -
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:
Leasehold land and buildings
Over the period of the lease
Plant and equipment
10 to 25% reducing balance and straight line
Fixtures and fittings
10 to 25% reducing balance and straight line
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 profit and loss account.
1.10
Fixed asset investments
In the parent company financial statements, investments in subsidiaries 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.
1.11
Impairment of fixed 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.
1.12
Stocks
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell on a FIFO basis.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks 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.
1.13
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.14
Financial instruments
The group has applied the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 'Other Financial Instruments Issues' to its financial instruments.
Financial instruments are recognised in the group's balance sheet 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.
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 17 -
Basic financial assets
Basic financial assets, which include debtors and cash at bank and in hand, 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.
Impairment of financial assets
Financial assets 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.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal 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 group 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.
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 creditors, bank loans, invoice discounting, finance leases, loans from group members and preference shares classed 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 creditors 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. Trade creditors are recognised at transaction price.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.15
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.
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.16
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 period. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other periods 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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.17
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
1.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.19
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.20
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.
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Preference shares classed as debt
At the balance sheet date, DB Realisations Limited had 1,025,000 preference shares in issue. These preference shares are classified as a liability in the financial statements as they have redemption conditions which are outside of the company's control. The preference shares carry no interest and have therefore been discounted at an implicit rate of 15%. Judgement was required, prior to their redemption, as to the estimated date of redemption of the shares and therefore the period over which the discount would be unwound. The preference shares were redeemed on 29 April 2025. See note 13 for carrying amounts.
Useful economic lives of intangible and tangible asstes
Estimation is required in determining the useful lives of such assets and their residual values. The amortisation and depreciation charge is sensitive to changes in the estimated useful economic lives of such assets. The carrying value of intangible assets and tangible assets is disclosed in notes 10 and 11 respectively.
Accruals
Estimation is required in determining the valuation of accruals. Certain accruals are inherently uncertain as the pertaining supplier invoice is not received until after the reporting period end. Given this, the value of accruals is determined based on an estimation of the costs incurred by the group at the reporting date. The carrying value of accruals is disclosed in note 16.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Removal and storage services
18,613,596
18,445,248
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
3
Turnover and other revenue
(Continued)
- 20 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
13,495,705
12,821,309
Europe
375,915
319,745
Rest of World
4,741,976
5,304,194
18,613,596
18,445,248
2024
2023
£
£
Other revenue
Interest income
1,852
2,151
4
Operating profit
2024
2023
£
£
Operating profit for the period is stated after charging/(crediting):
Exchange gains
(21,439)
(19,391)
Fees payable to the group's auditor for the audit of the group's financial statements
35,000
34,000
Depreciation of owned tangible fixed assets
213,949
235,865
Depreciation of tangible fixed assets held under finance leases
434,612
330,528
Loss/(profit) on disposal of tangible fixed assets
631
(7,887)
Amortisation of intangible assets
479,488
476,914
Operating lease charges
1,450,982
1,394,237
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the period was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration
55
55
-
-
Operations
117
120
-
-
Directors
5
3
3
3
Total
177
178
3
3
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
5
Employees
(Continued)
- 21 -
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,498,000
6,225,312
Social security costs
652,922
620,672
-
-
Pension costs
190,484
191,631
7,341,406
7,037,615
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
278,937
144,316
Amounts receivable under long term incentive schemes
50,410
43,035
Company pension contributions to defined contribution schemes
11,953
-
341,300
187,351
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
£
Remuneration for qualifying services
108,000
Amounts receivable under long term incentive schemes
7,916
Company pension contributions to defined contribution schemes
6,750
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
129,422
232,448
Unwinding of preference shares classified as debt
717,860
61,989
Interest on finance leases and hire purchase contracts
162,263
128,400
Other interest
10,857
-
Total finance costs
1,020,402
422,837
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 22 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
107,252
126,515
Adjustments in respect of prior periods
(127,300)
Other taxes
8,950
Total current tax
116,202
(785)
Deferred tax
Origination and reversal of timing differences
87,190
69,448
Total tax charge
203,392
68,663
As of 1st April 2023, the main rate of UK corporation tax increased from 19% to 25%. The group's prior financial period straddled this date, and as such, a corporation tax rate of 23.01% was applied in the prior financial period. This corporation tax rate was calculated by apportioning the two rates on a weighted basis for the proportion of the financial period for which the main tax rate was applicable. In the current financial period, the main UK corporation tax rate of 25% has been applied.
The actual tax 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
£
£
(Loss)/profit before taxation
(462,873)
188,204
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.01%)
(115,718)
43,306
Tax effect of expenses that are not deductible in determining taxable profit
189,976
45,072
Adjustments in respect of prior years
(127,300)
Permanent capital allowances in excess of depreciation
(6,171)
Depreciation on assets not qualifying for tax allowances
11,161
6,395
Amortisation on assets not qualifying for tax allowances
109,023
99,845
Effect of change in deferred tax rate
6,650
Deferred tax not recognised
-
866
Other taxes
8,950
-
Taxation charge
203,392
68,663
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 23 -
9
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 2 December 2023
4,790,891
4,790,891
Additions
6,000
6,000
At 30 November 2024
4,790,891
6,000
4,796,891
Amortisation and impairment
At 2 December 2023
2,837,553
2,837,553
Amortisation charged for the period
479,088
400
479,488
At 30 November 2024
3,316,641
400
3,317,041
Carrying amount
At 30 November 2024
1,474,250
5,600
1,479,850
At 1 December 2023
1,953,338
1,953,338
The company had no intangible fixed assets at 30 November 2024 or 1 December 2023.
Goodwill includes goodwill recognised on the purchase of the subsidiary, Kelerbay Limited. The carrying amount of this goodwill is £1,059,198 (2023: £1,469,210) and has a remaining amortisation period of 2.5 years.
Goodwill also relates to goodwill recognised on the purchase of the subsidiary, Advanced Removals & Storage Limited. The carrying amount of this goodwill is £210,809 (2023: £236,889) and has a remaining amortisation period of 8 years.
The remaining goodwill balance relates to the acquisition of the trade and assets of H.F. Luxford & Sons Ltd. The carrying amount of this goodwill is £204,243 (2023: £247,239) and has a remaining amortisation period of 4.75 years.
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 24 -
10
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 2 December 2023
214,636
1,128,997
176,164
3,235,391
4,755,188
Additions
10,684
49,047
14,014
900,807
974,552
Disposals
(1,021)
(5,303)
(914)
(83,284)
(90,522)
At 30 November 2024
224,299
1,172,741
189,264
4,052,914
5,639,218
Depreciation and impairment
At 2 December 2023
130,806
160,330
141,688
1,605,102
2,037,926
Depreciation charged in the period
25,526
90,391
17,323
515,321
648,561
Eliminated in respect of disposals
(1,021)
(914)
(69,677)
(71,612)
At 30 November 2024
155,311
250,721
158,097
2,050,746
2,614,875
Carrying amount
At 30 November 2024
68,988
922,020
31,167
2,002,168
3,024,343
At 1 December 2023
83,830
968,667
34,476
1,630,289
2,717,262
The company had no tangible fixed assets at 30 November 2024 or 1 December 2023.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
463,867
510,654
Motor vehicles
1,736,980
1,253,686
2,200,847
1,764,340
-
-
The hire purchase liability is secured over the assets to which it belongs.
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
7,245,469
7,245,469
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
11
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 2 December 2023 and 30 November 2024
7,245,469
Carrying amount
At 30 November 2024
7,245,469
At 1 December 2023
7,245,469
12
Subsidiaries
Details of the company's subsidiaries, all included in the consolidation, at 30 November 2024 are as follows:
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Bonners of Welling
1
Dormant company
Ordinary
0
100.00
Express Removals Limited
2
Dormant company
Ordinary
0
100.00
Express Removers Limited
2
Dormant company
Ordinary
0
100.00
Glasgow Express Removals
2
Dormant company
Ordinary
0
100.00
Kelerbay Limited
1
Removals and storage services
Ordinary
100.00
-
Montgomery Removals Ltd
2
Dormant company
Ordinary
0
100.00
Pack It In Limited
1
Dormant company
Ordinary
0
100.00
Advanced Moving Solutions Limited
1
Dormant company
Ordinary
0
100.00
Yorkie Removals & Storage Limited
1
Dormant company
Ordinary
0
100.00
Advanced Removals - Storage Limited
1
Dormant company
Ordinary
0
100.00
Advanced Removals & Storage Solutions Ltd
1
Dormant company
Ordinary
0
100.00
Advanced Removals Ltd
1
Dormant company
Ordinary
0
100.00
Advanced Storage UK Ltd
1
Dormant company
Ordinary
0
100.00
Advanced Storage Solutions Ltd
1
Dormant company
Ordinary
0
100.00
The D.I.Y Removal Company Limited
1
Dormant company
Ordinary
0
100.00
Advanced Storage and Removals Limited
1
Dormant company
Ordinary
0
100.00
Advanced Removals & Storage Limited
3
Removals and storage services
Ordinary
0
100.00
Registered office addresses (all UK unless otherwise indicated):
1
International House, 19 Kennet Road, Dartford, Kent, United Kingdom, DA1 4QN
2
48 Clyde Street, Clydebank, Strathclyde, G81 1NW
3
Beaumont House, 172 Southgate Street, Gloucester, Gloucestershire, GL1 2EZ
Advanced Removals & Storage Limited (registered number 05362839) is exempt from the requirements of UK Companies Act 2006 relating to the audit of individual financial statements by virtue of section 479A of the Act. The company has provide this subsidiary with a guarantee under section 479C of the Act thereby undertaking to guarantee all outstanding liabilities to which the subsidiary is subject at the end of the financial period.
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 26 -
13
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial liabilities
Measured at amortised cost
- Irredeemable preference shares classed as debt
(1,193,106)
(475,246)
(1,193,106)
(475,246)
See note 19 for information regarding the valuation of the irredeemable preference shares classed as debt.
14
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
75,237
106,686
-
-
15
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,891,958
2,204,834
Unpaid share capital
5,000
5,000
5,000
5,000
Other debtors
107,907
140,644
Prepayments and accrued income
1,025,803
937,499
5,000
5,000
3,030,668
3,287,977
10,000
10,000
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 27 -
16
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
42,903
Obligations under finance leases
18
536,645
502,644
Other borrowings
19
513,429
654,147
87,040
237,480
Trade creditors
1,818,544
1,683,814
Amounts owed to group undertakings
4,822,621
4,541,237
Amounts owed to undertakings in which the group has a participating interest
11,404
131,404
11,404
11,404
Corporation tax payable
37,145
234,893
Other taxation and social security
660,918
615,225
-
-
Other creditors
158,599
1,055,207
Accruals and deferred income
2,044,679
2,186,962
13,000
10,000
5,824,266
7,064,296
4,934,065
4,800,121
Included within other creditors is £58,507 (2023: £1,000,591) of funds owed by the Group that relate to an invoice discount facility held with Close Brothers Limited. Fixed and floating charges over all property and undertakings of the company and the group are held by Close Brothers Limited.
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Obligations under finance leases
18
1,109,954
922,113
Other borrowings
19
1,884,773
1,645,619
1,443,106
812,286
2,994,727
2,567,732
1,443,106
812,286
The subsidiary's bank has a charge on cash deposits up to a limit of £56,000 (2023: £56,000).
18
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
536,645
502,453
In two to five years
1,109,954
922,304
1,646,599
1,424,757
-
-
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
18
Finance lease obligations
(Continued)
- 28 -
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank overdrafts
42,903
Preference shares
22
1,193,106
475,246
1,193,106
475,246
Loans from related parties
250,000
250,000
250,000
250,000
Other loans
955,096
1,574,520
87,040
324,520
2,441,105
2,299,766
1,530,146
1,049,766
Payable within one year
556,332
654,147
87,040
237,480
Payable after one year
1,884,773
1,645,619
1,443,106
812,286
On 11 November 2020, the company issued 1,025,000 preference shares at par in redemption of £1.025m of variable rate loan notes. The preference shares are redeemable on conditions outside the company's control and are therefore classified as debt measured at fair value. There is no premium payable on redemption or right to fixed income. The preference share debt has been discounted to fair value based on an implicit interest rate of 15% over the expected period to redemption. The issue of these preference shares created a reserve, calculated as the excess of consideration received over the fair value of the shares issued. Existing preference shares have been classified as a liability. The difference between the carrying amount of the preference shares and the amount the company will be required to pay at the expected redemption date is £61,894 (2023: £779,754). On 29th April 2025, the preference shares were redeemed in full.
Included within other loans is a balance of £868,056 (2023: £1,250,000) owed by the subsidiary, Kelerbay Limited, to Close Invoice Finance Limited in relation to a cash flow loan agreement. The loan amount is £1,250,000, interest of 7% per annum over base rate is due on the loan and the loan matures in December 2026.
A fixed and floating charge over all property and undertakings of the subsidiary is held by A2E Industries Limited, a related party, for the provision of a loan facility. At the balance sheet date, the company owed £250,000 (2023: £250,000) in relation to the loan facility. Interest of 10% per annum is due on the loan and the loan matures on 1st December 2028.
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 29 -
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
633,420
533,484
Revaluations
39,282
52,376
Other short term timing differences
(19,259)
(19,607)
653,443
566,253
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the period:
£
£
Liability at 2 December 2023
566,253
-
Charge to profit or loss
87,190
-
Liability at 30 November 2024
653,443
-
Deferred taxation is provided in full, without discounting, on all tax deferred resulting from reversing timing differences at the rate of corporation tax anticipated to apply at the time of the future reversal of the timing difference. Deferred tax liabilities are expected to reverse within the next 12 months. The future rate of corporation tax applied to timing differences is 25% (2023: 25%).
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
190,484
191,631
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.
At the balance sheet date the group owed £29,498 (2023: £31,406) to the scheme.
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 30 -
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary A shares of £1 each
65,000
65,000
65,000
65,000
Ordinary B shares of £1 each
35,000
35,000
35,000
35,000
100,000
100,000
100,000
100,000
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
1,255,000
1,255,000
1,193,106
475,246
Preference shares classified as liabilities
1,193,106
475,246
Share capital includes 5,000 Ordinary A shares issued but not paid.
A and B ordinary shares rank equally in voting and dividend rights. Preference shares carry no voting or dividend rights and rank ahead of ordinary shares for any distributions made in the event of a winding up.
23
Financial commitments, guarantees and contingent liabilities
Some rental agreements the group is party to include provisions to repair and redecorate the property before expiry of the lease. The amount of the future obligation cannot be reliably estimated due to uncertainties surrounding the cost and extent of any future repairs.
The subsidiary, Advanced Removals & Storage Limited, as disclosed in note 12, has taken advantage of the exemption from audit available under Section 479A of the Companies Act 2006. For this subsidiary, the Company has guarenteed all outstanding liabilities as at the period end, until they are setlled in full.
24
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
£
£
£
£
Within one year
1,688,328
1,565,467
-
-
Between two and five years
5,131,456
4,882,127
-
-
In over five years
1,339,288
1,554,743
-
-
8,159,072
8,002,337
-
-
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 31 -
25
Events after the reporting date
On 29 April 2025, DB Realisations Limited sold its entire shareholding in Kelerbay Limited to Gosselin Mobility UK Limited for consideration of approximately £9.7m.
26
Related party transactions
At the balance sheet date, the group owed £47 (2023: £47) to directors of the company. This balance is interest free and repayable on demand. The only transactions with directors during the period related to directors' remuneration which is disclosed in note 6. The group's only key management personnel are considered to be the directors.
At the balance sheet date, the company had outstanding loan notes of £87,050 (2023: £324,520) due to directors of the company. Interest accrued on these loan notes at the balance sheet date was £nil (2023: £nil). The loan notes are issued at a market rate of interest, although the directors agreed to forsake any interest earned on the loan notes in the period. The loan notes rank equally among themselves and as a secured obligation of the company.
During the period, the group was charged £245,000 (2023: £300,000) in respect of management charges, recharged expenses, and bonuses by an entity which is a related party by virtue of having a shareholding in the group. In addition to this, on 1 December 2023 the company entered into a secured loan agreement with the related party. The loan amount is £250,000, interest of 10% per annum is charged on the loan and the loan matures on 1st December 2028. At the balance sheet date the company owed £261,404 (2023: £261,404) to the entity. The group together owed £261,404 (2023: £381,404) to the entity.
During the period the group purchased advertising and marketing services totalling £41,371 (2023: £52,686) from an entity which is a related party by virtue of a shareholder's close family member having control over the entity. At the balance sheet date, the group owed £4,470 (2023: £12,602) to the entity.
During the period, the group purchased supplies of sea containers totalling £Nil (2023: £20,525) from an entity which is a related party by virtue of common control. At the balance sheet date the group owed £Nil (2023: £5,790) to the entity.
27
Controlling party
The ultimate controlling party of DB Realisations Limited is S A Amiri by virtue of his shareholding in the ultimate parent company.
The ultimate parent company is Pasargad 1 Limited and its registered office is 1 Bow Churchyard, London, United Kingdom, EC4M 9DQ.
DB Realisations Limited is the smallest and largest group for which group financial statements are prepared and are available to the public.
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 32 -
28
Analysis of changes in net debt - group
2 December 2023
Cash flows
New finance leases
Unwinding of discounted balances
30 November 2024
£
£
£
£
£
Cash at bank and in hand
1,053,206
(936,945)
-
-
116,261
Bank overdrafts
(42,903)
-
-
(42,903)
1,053,206
(979,848)
-
73,358
Borrowings excluding overdrafts
(2,299,766)
619,424
-
(717,860)
(2,398,202)
Obligations under finance leases
(1,424,757)
581,341
(803,183)
-
(1,646,599)
(2,671,317)
220,917
(803,183)
(717,860)
(3,971,443)
DB REALISATIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2024
- 33 -
29
Cash generated from group operations
2024
2023
£
£
(Loss)/profit for the period after tax
(666,265)
119,541
Adjustments for:
Taxation charged
203,392
68,663
Finance costs
1,020,402
502,759
Investment income
(1,852)
(2,151)
Loss/(gain) on disposal of tangible fixed assets
631
(7,887)
Amortisation and impairment of intangible assets
479,488
476,914
Depreciation and impairment of tangible fixed assets
648,561
566,393
Fair value adjustment to non-basic financial instruments
-
(80,000)
Movements in working capital:
Decrease/(increase) in stocks
31,449
(15,530)
Decrease in debtors
257,309
868,491
(Decrease)/increase in creditors
(978,468)
713,570
Cash generated from operations
994,647
3,210,763
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