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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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DYNAMIC TECHNOLOGIES EUROPE LTD
COMPANY INFORMATION
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DYNAMIC TECHNOLOGIES EUROPE LTD
CONTENTS
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DYNAMIC TECHNOLOGIES EUROPE LTD
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present the Strategic Report and financial statements for the year ended 31 December 2024.
The past year has been a massive success for DTE, executing major projects for high-profile clients and expanding our market share within these clients. This was achieved through our innovative solutions and strong customer relationships. Our strategic focus on IT Infrastructure Services and IOT has positioned us well for continued success in the competitive IT infrastructure market.
As a leading provider of IT infrastructure hardware and services, we specialise in supplying, designing, implementing, and managing complex environments for businesses of all sizes. Our comprehensive portfolio includes data centre solutions, network infrastructure, cloud services, advanced Wi-Fi design using building information modelling (“BIM”), IOT and Smart Warehousing and Infrastructure/Network cabling solutions. We are committed to delivering reliable, scalable, and secure IT solutions that enable our clients to achieve their business objectives. Performance Review Our financial performance was in line with our high expectations, our turnover has increased by 46% YOY due to a higher level of project-based work, some of which was delayed in 2023 and some new works. In 2024 we continued to successfully complete several large-scale infrastructure projects, including a global smart warehousing solution for one of the largest online retailers. Our customer satisfaction ratings remained high, reflecting our dedication to providing exceptional service and support. During the reporting period, we continued to make significant strategic investments in expanding our service offerings with our Professional Services and Wireless team. This has allowed us to increase our technical expertise on the services we deliver. Expanding our Project Management team to oversee the planning, execution, and delivery of IT infrastructure projects, ensuring they meet customer requirements and timelines. All the while creating a customer success team to foster long-term relationships with customers, address their needs, and drive customer satisfaction. We have also expanded into the Cloud Services market, allowing us to generate more recurring revenue. Our focus on our service segments has increased our service sales by 30% YOY which has also had an impact on the GP percentage, increasing by 3.5% YOY. This will contribute to a more sustainable business model as the IT market changes. We are optimistic about our future prospects, driven by the growing demand for IT infrastructure services and our strong market position. We have invested into our marketing team to help our existing and new clients understand who we are and what we do. We have increased our brand awareness and lead gen marketing activities, building credibility in the sector and gaining new clients and partners to foster long term relationships. Our employees have always been a key part of our success and the recent transition to an employee ownership trust in February 2024 represents a significant milestone in our company's history. This change aligns with our commitment to fostering a culture of employee engagement, empowerment, and long-term sustainability. By transferring ownership to our employees, we are creating a shared sense of purpose and encouraging a greater alignment of interests between employees and the company. Our company is committed to the highest standards of corporate governance. We have a robust board of directors with diverse expertise and experience. Our internal control systems are regularly reviewed and updated to ensure compliance with relevant regulations and best practices. We prioritise ethical conduct and transparency in all our business dealings.
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DYNAMIC TECHNOLOGIES EUROPE LTD
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
We are committed to operating in a socially responsible and environmentally sustainable manner. We have implemented energy-efficient practices and promote responsible e-waste management. We also support community initiatives and encourage diversity and inclusion within our workforce. This has been recognised by DTE’s award of an EcoVadis Silver Sustainability rating.
No material Principal risk and uncertainties were identified in this period.
As always competitive pressures within the industry for IT Hardware and the change to cloud-based services formed part of our strategic decision and risk management to invest in new and existing professional service business segments to mitigate any risks and increase profitability. We have made vast improvements in our systems and processes to improve our automation and efficiency allowing us to remove any risks around quality control, inefficiencies that could impact customer satisfaction. We have no financial risks such as credit risk and liquidity and manage things like foreign exchange risk closely with preventative measures in place. Post EOT our reserves are still in a strong position at £4.7million.
The company measures its financial performance on a consolidated basis using the following measures:
Gross profit %: For 2024 the gross profit % was 32% and for 2023 it was 29% - an increase of 3%. Current ratio: The current ratio has decreased from 11.09 at y/e 2023 to 5.34 at y/e 2024. Acid test ratio: The acid test ratio has decreased from 10.1 at y/e 2023 to 4.43 at y/e 2024. Working Capital has decreased from £11,288,749 in 2023 at y/e to £4,629,134 at y/e 2024. Debt-to-Equity Ratio has decreased from 0.09 in 2023 at y/e to 0.23 at y/e 2024.
This report was approved by the board and signed on its behalf.
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DYNAMIC TECHNOLOGIES EUROPE 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 Group Strategic Report, the Directors' Report and the consolidated 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 Group'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 Group 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 the Group 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 the Group 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 £2,070,654 (2023 - £488,238).
Dividends of £2,763,747 were paid in the current year (2023 - Nil)
On 29 February 2024, the company established an Employee Ownership Trust (EOT), DTE Trust Limited, which acquired the company’s shares. The purpose of the EOT is to hold shares on behalf of employees for their long-term benefit. The initial acquisition was funded by a distribution of £5,921,815 from the company’s distributable reserves.
The directors who served during the year were:
The Directors intend for the Group to continue its strategy of organic growth.
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DYNAMIC TECHNOLOGIES EUROPE LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant events affecting the Company since the year end.
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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DYNAMIC TECHNOLOGIES EUROPE LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DYNAMIC TECHNOLOGIES EUROPE LTD
We have audited the financial statements of Dynamic Technologies Europe Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company 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 Group 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.
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 or the 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.
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DYNAMIC TECHNOLOGIES EUROPE LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DYNAMIC TECHNOLOGIES EUROPE 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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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DYNAMIC TECHNOLOGIES EUROPE LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DYNAMIC TECHNOLOGIES EUROPE 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 Group 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:
• Enquiry of management and those charged with governance around actual and potential litigation and claims; • Enquiry of entity staff to identify any instances of non-compliance with laws and regulations; • Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. 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.
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DYNAMIC TECHNOLOGIES EUROPE LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DYNAMIC TECHNOLOGIES EUROPE LTD (CONTINUED)
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
Statutory Auditors
Milton Keynes, United Kingdom
Date:
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
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DYNAMIC TECHNOLOGIES EUROPE LTD
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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DYNAMIC TECHNOLOGIES EUROPE LTD
REGISTERED NUMBER: 03869630
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2024
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DYNAMIC TECHNOLOGIES EUROPE LTD
REGISTERED NUMBER: 03869630
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 35 form part of these financial statements.
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DYNAMIC TECHNOLOGIES EUROPE LTD
REGISTERED NUMBER: 03869630
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
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DYNAMIC TECHNOLOGIES EUROPE LTD
REGISTERED NUMBER: 03869630
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 18 to 35 form part of these financial statements.
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DYNAMIC TECHNOLOGIES EUROPE LTD
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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DYNAMIC TECHNOLOGIES EUROPE LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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DYNAMIC TECHNOLOGIES EUROPE LTD
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DYNAMIC TECHNOLOGIES EUROPE LTD
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024
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DYNAMIC TECHNOLOGIES EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Dynamic Technologies Europe Ltd is a private company limited by shares, domiciled in England and Wales, registered number 03869630. The registered office and principal place of business is Unit 3 Integra, Thornton Close, Linford Wood, Milton Keynes, MK14 6FD.
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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The financial statements have been prepared on a going concern basis. The Directors have considered relevant information, including the annual budget, and the impact of subsequent events in making their assessment.
Based on these assessments and having regard to the resources available to the entity, the Directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts.
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DYNAMIC TECHNOLOGIES EUROPE 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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DYNAMIC TECHNOLOGIES EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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DYNAMIC TECHNOLOGIES EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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DYNAMIC TECHNOLOGIES EUROPE 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, using the straight-line method.
Depreciation is provided on the following basis:
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.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
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DYNAMIC TECHNOLOGIES EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Group only enters into basic financial instrument transactions that result in the recognition of inancial 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.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. Investments in non-derivative instruments that are equity to the issuer are measured: - at fair value with changes recognised in the Consolidated Statement of Comprehensive Income if the shares are publicly traded or their fair value can otherwise be measured reliably; - at cost less impairment for all other investments. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
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DYNAMIC TECHNOLOGIES EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date. Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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. Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.
Distributions to the Employee Ownership Trust (EOT) are recognised as a reduction in retained earnings when paid or payable. Such amounts are not recognised in the profit and loss account, consistent with their nature as appropriations of reserves.
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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Depreciation rates are a key source of estimation uncertainty. These are reviewed on an ongoing basis with reference to historic information and current market data.
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DYNAMIC TECHNOLOGIES EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Analysis of turnover by country of destination:
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DYNAMIC TECHNOLOGIES EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 26
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DYNAMIC TECHNOLOGIES EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 27
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DYNAMIC TECHNOLOGIES EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
11.Taxation (continued)
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DYNAMIC TECHNOLOGIES EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 29
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DYNAMIC TECHNOLOGIES EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
13.Tangible fixed assets (continued)
Page 30
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DYNAMIC TECHNOLOGIES EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 31
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DYNAMIC TECHNOLOGIES EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 32
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DYNAMIC TECHNOLOGIES EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 33
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DYNAMIC TECHNOLOGIES EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Other reserves
Profit and loss account
23.Other financial commitments
The group has various forward currency contracts in order to reduce the Groups exposure to exchange rate movements in respect of sales and purchases made in foreign currencies.
The value of forward currency contracts in existence at the year end totalled £4,227,979 (2023 - £5,725,290), which mature on various dates in 2025.
At 31 December 2024, one of the directors, J Raja, owed the Parent Company £nil (2023: £800,000) in respect of loans and advances made by the Company. The amount is interest free and there are no fixed terms of repayment.
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DYNAMIC TECHNOLOGIES EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company is controlled by DTE Trust Limited which holds 100% of the issued share capital of the company for the benefit of the company’s employees. The Trust is governed by its Trustees. The Trustees do not act in their own right as controlling parties, therefore the directors consider that there is no ultimate controlling party.
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