DMC ENCORE LIMITED


Director	PETO, Kieron Alex


Registered Address	165 Scudamore Road
	Leicester
	LE3 1UQ


Registered Number	07262051 (England and Wales)

Notes to the Financial Statements
for the year ended 31 May 2025

1.	Accounting policies

	Statutory information
	The company is a private company limited by shares and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

	Statement of compliance
	The financial statements have been prepared in accordance with the Companies Act 2006 and FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland including Section 1A Small Entities.

	Going concern
	After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis of accounting in preparing its financial statements. Director’s Commentary (Summary Version) The reported loss for the year to 31 May 2025 reflects one-off costs relating to the acquisitions of Mailbox DM Ltd and Complete Mailings, together with site rationalisation and investment in efficiency and the Scudamore Road facility. In addition, the company made significant investment in research and development during the year, focused on the design and testing of new specialist products aimed at creating new revenue streams in the medical sector. These projects, while expensed in the year, represent strategic development that is expected to broaden the company’s addressable markets, enhance service capability, and generate material long-term commercial benefits. The opening of these new markets will also solidify the company’s longer-term sustainability and resilience. These initiatives — acquisitions, operational consolidation, and product development — have collectively strengthened the business and broadened the customer base. Since June 2025, trading has been profitable with improved cashflow, and the directors are confident that the company is now well-positioned for sustained profitability and growth.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis of accounting in preparing its financial statements.

Director’s Commentary (Summary Version)

The reported loss for the year to 31 May 2025 reflects one-off costs relating to the acquisitions of Mailbox DM Ltd and Complete Mailings, together with site rationalisation and investment in efficiency and the Scudamore Road facility. In addition, the company made significant investment in research and development during the year, focused on the design and testing of new specialist products aimed at creating new revenue streams in the medical sector. These projects, while expensed in the year, represent strategic development that is expected to broaden the company’s addressable markets, enhance service capability, and generate material long-term commercial benefits. The opening of these new markets will also solidify the company’s longer-term sustainability and resilience.

These initiatives — acquisitions, operational consolidation, and product development — have collectively strengthened the business and broadened the customer base. Since June 2025, trading has been profitable with improved cashflow, and the directors are confident that the company is now well-positioned for sustained profitability and growth.

	Revenue from sale of goods
	Revenue from the sale of goods is recognised when the company has transferred to the buyer the significant risks and rewards of ownership of the goods, usually when goods are delivered and legal title has passed. Providing the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transition can be measured reliably.

Revenue from sale of goods

Revenue from the sale of goods is recognised when the company has transferred to the buyer the significant risks and rewards of ownership of the goods, usually when goods are delivered and legal title has passed. Providing the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transition can be measured reliably.

	Employee benefits
	Short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for the employee's services to the company. Where employees have accrued short-term benefits which the entity has not paid by the balance sheet date, an accrual is recognised within creditors: amounts falling due within one year together with an associated expense in profit or loss. The liabilities are classified as current obligations in the statement of financial position because they are expected to be settled wholly within twelve months after the end of the period.

Employee benefits

Short-term employee benefits are measured at the undiscounted amount expected to be paid in exchange for the employee's services to the company. Where employees have accrued short-term benefits which the entity has not paid by the balance sheet date, an accrual is recognised within creditors: amounts falling due within one year together with an associated expense in profit or loss. The liabilities are classified as current obligations in the statement of financial position because they are expected to be settled wholly within twelve months after the end of the period.

	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

Foreign currency translation

Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

	Intangible assets
	Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. Amortisation is included in 'administrative expenses' in the profit and loss account.

	Tangible fixed assets and depreciation
	All fixed assets are initially recorded at cost. Property, plant and equipment is used in the company's principal activity for the production and supply of goods or for administrative purposes and is stated in the balance sheet under the historic cost model. This model requires the assets to be stated at cost less amounts in respect of depreciation and less any accumulated impairment losses. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value (which is the expected amount that would currently be obtained from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life), over the useful economic life of the respective asset as follows:

Tangible fixed assets and depreciation

All fixed assets are initially recorded at cost. Property, plant and equipment is used in the company's principal activity for the production and supply of goods or for administrative purposes and is stated in the balance sheet under the historic cost model. This model requires the assets to be stated at cost less amounts in respect of depreciation and less any accumulated impairment losses. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value (which is the expected amount that would currently be obtained from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life), over the useful economic life of the respective asset as follows:


	Reducing balance (%)	Straight line (years)
Plant and machinery	25	-
Vehicles	25	-
Office Equipment	-	20

	Stocks and work in progress
	Stock is valued at the lower of cost and estimated selling price less costs to complete and sell. The cost methodology employed by the entity is the first-in first-out method. Estimated selling price less costs to complete and sell are derived from the selling price which the goods would fetch in an open market transaction with established customers less the costs expected to be incurred to enable the sale to complete. Provision is made for slow-moving and obsolete items of stock. Such provisions are recognised in profit or loss. Work in progress is valued using the percentage of completion method and values are calculated using the lower of cost and estimated selling price less costs to complete and sell. When stocks are sold, the carrying amount of those stocks is recognised as an expense within cost of sales. This takes place in the same period that the associated revenue is recognised.

Stocks and work in progress

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell. The cost methodology employed by the entity is the first-in first-out method. Estimated selling price less costs to complete and sell are derived from the selling price which the goods would fetch in an open market transaction with established customers less the costs expected to be incurred to enable the sale to complete. Provision is made for slow-moving and obsolete items of stock. Such provisions are recognised in profit or loss.

Work in progress is valued using the percentage of completion method and values are calculated using the lower of cost and estimated selling price less costs to complete and sell. When stocks are sold, the carrying amount of those stocks is recognised as an expense within cost of sales. This takes place in the same period that the associated revenue is recognised.

2.	Average number of employees


		2025		2024
	Average number of employees during the year	29		11

3.	Intangible assets

	Other	Total
	£	£
Cost or valuation
At 01 June 24	95,400	95,400
At 31 May 25	95,400	95,400
Amortisation and impairment
At 01 June 24	49,608	49,608
Charge for year	9,158	9,158
At 31 May 25	58,766	58,766
Net book value
At 31 May 25	36,634	36,634
At 31 May 24	45,792	45,792

4.	Tangible fixed assets

	Plant & machinery	Vehicles	Office Equipment	Total
	£	£	£	£
Cost or valuation
At 01 June 24	93,554	41,765	8,594	143,913
Additions	21,101	4,396	5,123	30,620
Disposals	-	(29,994)	-	(29,994)
At 31 May 25	114,655	16,167	13,717	144,539
Depreciation and impairment
At 01 June 24	76,679	16,241	8,594	101,514
Charge for year	7,481	7,296	699	15,476
On disposals	-	(13,122)	-	(13,122)
At 31 May 25	84,160	10,415	9,293	103,868
Net book value
At 31 May 25	30,495	5,752	4,424	40,671
At 31 May 24	16,875	25,524	-	42,399

5.	Stocks

	2025	2024
	£	£
Other stocks	17,710	17,710
Total	17,710	17,710

6.	Creditors: amounts due within one year

	2025	2024
	£	£
Trade creditors / trade payables	253,240	19,053
Bank borrowings and overdrafts	290,243	66,646
Taxation and social security	123,313	25,706
Accrued liabilities and deferred income	32,823	27,400
Total	699,619	138,805

7.	Creditors: amounts due after one year

	2025	2024
	£	£
Bank borrowings and overdrafts	130,742	66,539
Total	130,742	66,539

8.	Further information regarding the company's financial position
	Covering Note for Credit Agencies The results filed for the year ended 31 May 2025 include a statutory loss; however, this outcome was driven by exceptional one-off costs connected with the acquisitions of Mailbox DM Ltd and Complete Mailings, together with site rationalisation and investment in the Scudamore Road facility. In addition, the directors committed resources to significant research and development expenditure on new specialist product development, specifically targeted at establishing new revenue streams in the medical sector. These costs were recognised in full during the accounting period but are expected to deliver lasting commercial benefits, improved margins, and revenue diversification in future years. The development and opening of these new markets are also expected to solidify the company’s longer-term sustainability and resilience. These costs were non-recurring in nature and do not reflect the company’s underlying trading position. During the accounting year, cashflow remained well managed, with obligations met as they fell due. Since June 2025, trading has returned to profitability with improved operating cashflow, supported by a stronger client base, reduced overheads, and efficiency gains from recent investments. The company is now operating on a more resilient platform, with turnover growth, sustainable margins, and stable liquidity. The directors expect performance to remain profitable in the current and future financial years, and no going concern risks are identified.

Further information regarding the company's financial position

Covering Note for Credit Agencies

The results filed for the year ended 31 May 2025 include a statutory loss; however, this outcome was driven by exceptional one-off costs connected with the acquisitions of Mailbox DM Ltd and Complete Mailings, together with site rationalisation and investment in the Scudamore Road facility. In addition, the directors committed resources to significant research and development expenditure on new specialist product development, specifically targeted at establishing new revenue streams in the medical sector. These costs were recognised in full during the accounting period but are expected to deliver lasting commercial benefits, improved margins, and revenue diversification in future years. The development and opening of these new markets are also expected to solidify the company’s longer-term sustainability and resilience.

These costs were non-recurring in nature and do not reflect the company’s underlying trading position. During the accounting year, cashflow remained well managed, with obligations met as they fell due. Since June 2025, trading has returned to profitability with improved operating cashflow, supported by a stronger client base, reduced overheads, and efficiency gains from recent investments.

The company is now operating on a more resilient platform, with turnover growth, sustainable margins, and stable liquidity. The directors expect performance to remain profitable in the current and future financial years, and no going concern risks are identified.

	Notes	2025		2024
		£	£	£	£
Fixed assets
Intangible assets	3		36,634		45,792
Tangible assets	4		40,671		42,399
			77,305		88,191
Current assets
Stocks	5	17,710		17,710
Debtors		532,661		136,702
		550,371		154,412
Creditors amounts falling due within one year	6	(699,619)		(138,805)
Net current assets (liabilities)			(149,248)		15,607
Total assets less current liabilities			(71,943)		103,798
Creditors amounts falling due after one year	7		(130,742)		(66,539)
Net assets			(202,685)		37,259
Capital and reserves
Called up share capital			100		100
Profit and loss account			(202,785)		37,159
Shareholders' funds			(202,685)		37,259