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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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DCG LOGISTICS UK LTD
COMPANY INFORMATION
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DCG LOGISTICS UK LTD
CONTENTS
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DCG LOGISTICS UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic report accompanying the financial statements for the period ended 31 December 2024.
The company has delivered a year of substantial growth, continuing its upward trajectory despite a challenging global economic and geopolitical environment.
Turnover increased to £54.20m in the year ended 31 December 2024, compared to £44.18m in the 18 months to 31 December 2023. Gross profit rose sharply from £671k to £3.87m, with the margin improving from 1.5% to 7.1%. This was primarily driven by reduced operational costs in warehousing and logistics, coupled with the positive impact of supplier contract renegotiations, improved internal processes, and favourable currency movements. Following the significant infrastructure, staffing, and warehousing investments made in 2021–2023 to support higher trade volumes, administrative expenses have now reduced from £4.5m in 2023 to £3.6m in 2024, reflecting improved cost control and operational efficiency. This has resulted in a net profit of £261k, a strong turnaround from the prior year’s loss of £3.6m. Operationally, 2024 marked a year of both volume growth and diversification: • Headcount increased in line with business expansion. • The two largest warehouse clients recorded 1.2x volume growth compared to last year. • Two new clients commenced operations in June and July, bringing steady warehouse throughput. • Order volumes across the business grew 1.3x year-to-date. • Export shipments doubled compared to the prior year. • The transport division’s daily orders also doubled year-on-year. • Secured two major projects: o A warehouse operation involving devanning 100 containers. o A trucking contract covering delivery of 700 containers over one year. The continued rollout and optimisation of the company’s internal operational system has further improved workflow efficiency, data accuracy, and customer service response times. These achievements, combined with a strong client base and robust project pipeline, position the company for sustained revenue and volume growth in 2025. The directors are confident in delivering both improved profitability and operational performance in the year ahead. As disclosed in Note 2.2, the company remains reliant on loan support from related parties and expects this support to continue for the foreseeable future. Accordingly, the accounts are prepared on a going concern basis.
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DCG LOGISTICS UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors have assessed the key risks and uncertainties affecting the business:
• The resilience of the UK economy and global supply chains, with particular attention to geopolitical instability. • Competitive pressures from both UK-based and international logistics providers. • Currency volatility, especially the fluctuation of sterling against other major currencies. • Inflationary cost pressures, particularly in fuel, labour, and warehousing. • Maintaining high service levels to meet customer expectations. • Shipping market changes: o New alliances between major shipping lines potentially impacting freight rates and capacity allocation. o Deployment of larger, more technologically advanced vessels, influencing market rates and capacity distribution. • Warehouse utilisation rates and the need to optimise space to maintain profitability.
Given the straightforward nature of the business, the directors consider that detailed KPI analysis is not essential for understanding the company’s performance. However, headline operational metrics demonstrate strong growth:
• Turnover up 23% year-on-year. • Export shipment volumes doubled. • Transport daily orders doubled. • Warehouse volumes up 1.3x year-to-date. Outlook With confirmed major contracts, ongoing client growth, and the proven benefits of operational efficiency improvements, the directors anticipate a strong year ahead in 2025. Both revenue and volume are expected to continue rising, underpinned by stable client demand and new business wins. The company will remain focused on cost control, service excellence, and agile responses to changes in the logistics market.
This report was approved by the board on 5 September 2025 and signed on its behalf.
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DCG LOGISTICS UK LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.
The profit for the year, after taxation, amounted to £260,690 (2023 - loss £3,595,553).
No dividends have been paid for the year ended 31 December 2024 (2023 - £Nil).
The directors who served during the year were:
The Company continues to work on sales growth, systems and cost efficiencies to improve their margins, as well as customer, supplier and employee retention, and to pursue opportunities to improve its performance and financial position.
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DCG LOGISTICS UK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the Company since the year end.
After the year end Barnes Roffe LLP resigned as auditors due to the transfer of its audit business and its successor Barnes Roffe Audit Limited was appointed by the directors under s485 Companies Act 2006.
This report was approved by the board on
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DCG LOGISTICS UK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DCG LOGISTICS UK LTD
We have audited the financial statements of DCG Logistics UK Ltd (the 'Company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
We draw attention to note 2.2 in the financial statements, which indicates that the company has net liabilities of £2,368,318 as at 31 December 2024, and is dependent on the support of related companies, under common control, to continue to meet financial obligations as they fall due. As stated in note 2.2, these events or conditions, along with the other matters as set forth in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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DCG LOGISTICS UK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DCG LOGISTICS UK LTD (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the 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.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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DCG LOGISTICS UK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DCG LOGISTICS UK LTD (CONTINUED)
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 Auditors' 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with law and regulations, was as follows: • The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; • We identified the laws and regulations applicable to the company through discussion with directors and other management, and from our commercial knowledge and experience of the relevant sector; • The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, are as follows; o Companies Act 2006. o FRS102. o Health and Safety legislation. o Employment legislation o Tax legislation o BIFA – British International Freight Association o UKWA – UK Warehousing Association o FIATA – The International Federation of Freight Forwarders Associations o RHA – The Road Haulage Association • We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing board minutes and inspecting legal correspondence; • Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified. The audit team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur by: • Making enquires of management as to where they consider there was susceptibility to fraud and their knowledge of actual suspected and alleged fraud; • Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; • Reviewing the financial statements and testing the disclosures against supporting documentation; • Performing analytical procedures to identify any unusual or unexpected trends or anomalies; • Inspecting and testing journal entries to identify unusual or unexpected transactions; • Assessing whether judgement and assumptions made in determining significant accounting estimates, were indicative of management bias; and • Investigating the rationale behind significant transactions, or transactions that are unusual or outside the company’s usual course of business.
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DCG LOGISTICS UK LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DCG LOGISTICS UK LTD (CONTINUED)
The areas that we identified as being susceptible to misstatement through fraud were: • Management bias in the estimates and judgements made; • Management override of controls; and • Posting of unusual journals or transactions. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Charles Lake House
Claire Causeway
Crossways Business Park
Kent
DA2 6QA
Date:
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DCG LOGISTICS UK LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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DCG LOGISTICS UK LTD
REGISTERED NUMBER: 10256616
BALANCE SHEET
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 29 form part of these financial statements.
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DCG LOGISTICS UK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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DCG LOGISTICS UK LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DCG LOGISTICS UK LTD
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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DCG LOGISTICS UK LTD
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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DCG LOGISTICS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
DCG Logistics UK Ltd is a private company, limited by shares, registered in England and Wales. The company's registered office address is 2-4 Atholl Road, Chelmsford, Essex, CM2 6TB.
The principal activity of the company in the year under review was that of warehouse fulfilment, shipping and forwarding agents.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
As described in the strategic report on page 1 the company has experienced improved trading conditions and has reported a profit of £260,690 for the year. The Directors, and its management have implemented their action plan in the year to increase warehouse utilisation and revenue and reduce costs, to stem the losses and get back to profitability, which has now been achieved, and now needs to be maintained. However, given the net liability position of £2,368,318 as at 31 December 2024 the Company is reliant on the financial support of DCG Logistics Ltd, a related company under common control, via loans as disclosed in note 26. The directors expect this support to continue for the foreseeable future.
The Directors and management have considered the trading position up to the date of approval of the financial statements and the projections for the 12 month period thereafter. They have also considered current working capital levels, the support of DCG Logistics Ltd via loans and cash reserves at the date of signing the audit report, and are confident the company will have adequate funds to meet its operating costs for the foreseeable future. The accounts have been prepared on the going concern basis, the appropriateness of which relies on the continued success of the action plan implemented for the Company, and the continued support of DCG Logistics Ltd.
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DCG LOGISTICS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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DCG LOGISTICS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
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DCG LOGISTICS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following bases:.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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DCG LOGISTICS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance sheet. Specifically dilapidations provisions have been recognised for repairs, wear and tear and remedial works required under operating lease agreements for properties.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
No significant judgements have had to be made by the company in preparing these financial statements. b) Key accounting estimates and assumptions The company has made key assumptions regarding the useful economic life of tangible fixed assets and this is further described in note 2.12 of accounting policies. The company has also made key assumptions regarding the provision for dilapidations on leased properties and this is further described in note 2.16 of the accounting policies and in notes 21 and 23 of the accounts.
All turnover arose within the United Kingdom, although customers may be based overseas and the shipping and logistics services provided can be worldwide. All turnover arose from the company's principal activity as disclosed at Note 1.
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DCG LOGISTICS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DCG LOGISTICS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DCG LOGISTICS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DCG LOGISTICS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
12.Taxation (continued)
The comapny has carried forward taxation losses of £3,475,937 (2023: £3,571,598) which can be offset against future taxable profits.
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DCG LOGISTICS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DCG LOGISTICS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DCG LOGISTICS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DCG LOGISTICS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DCG LOGISTICS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Following the annual review of operating lease commitments, it was noted that leases in place contained clauses for dilapidation provisions in order to return the warehouses back to their original state prior to occupancy. Whilst the adjustments, on a year to year basis, were not material, the accumalated provisions had now reached a level which would be deemed material in the current year at the balance sheet date. Therefore the company has decided to recognise the provision under a calculated method on a straight line basis over the life of the leases, based on the best estimate of expected dilaidations costs at the end of the leases..
An adjusting entry has been processed to amend the current year position and prior year adjustments have been made in order to amend the brought forward position. These adjustments are detailed below: The impact on the prior year profit and loss account is a increase in cost of sales of £190,655, and a corresponding increase in provisions. The impact on the brought forward profit and loss reserves as at 1 July 2022 is £133,697, and on brought forward profit and loss reserves as at 1 January 2024 is £324,352, with a corresponding increase in provisions.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £63,125 (2023 - £71,872). Contributions totalling £95 (2023 - £274) were payable to the fund at the balance sheet date and are included in other creditors
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DCG LOGISTICS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 29
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