Company Registration number:
Delkia Limited
Financial Statements
for the
Year Ended 31 December 2024
Company Registration number:
Delkia Limited
Financial Statements
for the
Year Ended 31 December 2024
Delkia Limited
Contents
Pages
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Directors' report |
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Balance sheet |
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Notes to the financial statements |
Delkia Limited
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.
Directors of the company
The directors who held office during the year were as follows:
The following director was appointed after the year end:
Principal activity
The principal activity of the company is systems integration - providing technological and engineering solutions for safety-related and mission-critical systems.
BUSINESS REVIEW
The closing accounting period resulted in record sales again for the company, ~£11.2m, with a net profit of ~£350k (~3%), following significant investment for future growth. In 2024 Delkia carried out their first acquisition, which included SyntheSys Systems and SyntheSys Defence, that focus on tactical data links, secure communications, interoperability and systems engineering. They had over 37 years of expertise within the defence and aerospace sector.
The business continues to develop and invest into systems engineering and integration capability with technology services and products for high-integrity and mission-critical systems. These sectors are highly regulated such as clean energy (inc. nuclear), aerospace and maritime (both civil and defence). Growth projection is strong for these sectors in both domestic and international markets.
Clean Energy
The sector continues to grow steadily, and this has resulted in major contract wins and frameworks for Delkia during the year. Prolongation of some existing contracts has resulted in major contracts being placed in Q1-3 2024 across both the civil and nuclear defence markets. The company will review political changes, as well as outcomes of both the government Strategic Defence Review (SDR) and the Nuclear Decommissioning Authority’s (NDA) draft Strategy in 2025.
Maritime
The maritime market has benefitted from significant growth across the civil and defence sectors and Delkia has been well positioned to meet that demand. In 2024, Delkia’s Maritime Sector delivered complex, high integrity control and indication systems (from concept, through development, qualification, and build), along with integrated logistics support, vehicle control and platform management systems (surface and subsurface).
Our accompanying R&D programmes continue to mature autonomous air, surface and subsurface platforms while expanding into artificial intelligence and machine learning. Building on this success, Delkia is now supporting Royal Navy (DE&S) frameworks delivering well over ~£400M of services over the forthcoming decade.
Delkia Limited
Directors' report for the Year Ended 31 December 2024 (continued)
Aerospace
Delkia has a significant opportunity in the air and space sector in 2025, with a strong focus on secure communications and tactical data link integration will see new integrated products and services to our clients. Delkia will be launching their new air strategy in Q3 2025 to its clients for future growth in the sector.
PRINCIPAL RISK AND UNCERTAINTIES
Delkia is operating in an increasingly volatile, uncertain, complex and ambiguous world. The business takes a risk-based approach and continues to assess its operations from a commercial, legal, and political perspective from the UK and overseas. During 2024 it has invested significantly in growing its skills, people, resources, facilities and infrastructure to prepare for the challenges of the future. This includes identifying new facilities in Haydock with over 20,000 sq. ft of advanced manufacturing space. Consolidation of existing overheads and legacy facilities will be part of efficiency drives across the company.
Global chip shortages are impacting lead times which is causing prolongation across major projects. The tariff war is also seeing global changes impacting international trade. Delkia have mitigated this by appointing a strategy procurement and supply chain team distilling sustainability and resilience throughout its suppliers.
CHAIRMAN'S REPORT
The Board have been appointed for oversight, governance and audit and have been in place since August 2023. The appointees have a balanced approach of expertise in the relevant sectors and financial governance. The Board of Directors have approved the Company Charter and the new Corporate Strategy for future growth. The Board are now working with the operations and full-time executive team to ensure a future organisational design is stable and sustainable for medium and long-term growth.
FUTURE DIRECTION
The business secured ~£15m new orders throughout 2024, supporting a longer-term and sustainable growth projection. The business continues to focus on its excellent operational delivery and is starting to secure larger packages of work, more latterly in its clean energy, aerospace, maritime and defence sectors. Out-turn in 2025 is forecasting a projected revenue of ~£14m, which will transition the business from a small entity, with regards to Companies House reporting. The Board are comfortable with the sustained growth, and independent auditing is being planned for post 2026 accounts should this be required, as this will be 2-years’ worth of trade past the small entity thresholds.
Delkia continue to focus on their forward strategy as one of the UK’s leading engineering and technology partners for safety-related and mission-critical systems. International export focus has already begun, securing contracts in France, Sweden, and the US. The company continues be successful towards its growth target of ~£20m by 2026.
Delkia will continue to look at acquisitions and mergers throughout 2025. However, more likely to complete deals in early 2026 following significant investment of platform systems and integration of subsidiaries effectively.
Delkia Limited
Directors' report for the Year Ended 31 December 2024 (continued)
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved and authorised by the
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Delkia Limited
Balance Sheet as at 31 December 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investments |
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- |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Other reserves |
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Retained earnings |
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Shareholders' funds |
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Delkia Limited
Balance Sheet as at 31 December 2024 (continued)
For the financial year ending 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
Company registration number: 07339803
Approved and authorised by the
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Delkia Limited
Notes to the financial statements for the Year Ended 31 December 2024
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GENERAL INFORMATION |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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ACCOUNTING POLICIES |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in sterling, which is the functional currency of the entity. Monetary amounts in these financial statements are rounded to the nearest £.
Group accounts not prepared
Delkia Limited
Notes to the financial statements for the Year Ended 31 December 2024 (continued)
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ACCOUNTING POLICIES (continued) |
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Government grants
Grants for the purpose of giving immediate financial support with no future related costs to be incurred are recognised in the profit and loss account when the grant proceeds become receivable.
Other grants relating to revenue are recognised in the profit and loss account on a systematic basis over the periods in which the related costs are recognised for which the grant is intended to compensate.
Grants receivable in the period were £13,673 (2023: £36,215) and were received from the Cumbria Local Enterprise Partnership.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Delkia Limited
Notes to the financial statements for the Year Ended 31 December 2024 (continued)
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ACCOUNTING POLICIES (continued) |
Tangible assets
Tangible assets (excluding plant and equipment which is stated at valuation) are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Property improvements |
15% reducing balance |
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Fixtures and fittings |
25% reducing balance |
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Plant and machinery |
15% reducing balance |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Intangible assets
Separately acquired trademarks, patents and licences are shown at historical cost.
Trademarks, patents and licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.
Trademarks, patents and licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.
Intellectual Property rights are carried at cost less accumulated amortisation and any accumulated impairment losses.
Delkia Limited
Notes to the financial statements for the Year Ended 31 December 2024 (continued)
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ACCOUNTING POLICIES (continued) |
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
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Asset class |
Amortisation method and rate |
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Trademarks, patents and licences |
5 year straight line |
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Intellectual property |
shorter of the economic life and the period the right is legally enforceable |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Delkia Limited
Notes to the financial statements for the Year Ended 31 December 2024 (continued)
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ACCOUNTING POLICIES (continued) |
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method where due after more than one year.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Delkia Limited
Notes to the financial statements for the Year Ended 31 December 2024 (continued)
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STAFF NUMBERS |
The average number of persons employed by the company (including directors) during the year, was
In addition to the above persons employed, the company also utilised an average of 39 consultants (2023 - 37) during the period.
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INTANGIBLE ASSETS |
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Trademarks, |
Intellectual |
Total |
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Cost or valuation |
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At 1 January 2024 |
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At 31 December 2024 |
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Amortisation |
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At 1 January 2024 |
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Amortisation charge |
- |
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At 31 December 2024 |
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Carrying amount |
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At 31 December 2024 |
- |
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At 31 December 2023 |
- |
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Delkia Limited
Notes to the financial statements for the Year Ended 31 December 2024 (continued)
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TANGIBLE ASSETS |
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Property improvements |
Fixtures and |
Plant and equipment |
Total |
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Cost or valuation |
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At 1 January 2024 |
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Additions |
- |
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Disposals |
- |
( |
( |
( |
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At 31 December 2024 |
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Depreciation |
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At 1 January 2024 |
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Charge for the year |
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Eliminated on disposal |
- |
( |
( |
( |
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At 31 December 2024 |
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Carrying amount |
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At 31 December 2024 |
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At 31 December 2023 |
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Revaluation
The fair value of the company's plant and machinery was revalued on 31 October 2017. An independent valuer was not involved.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £29,417 (2023 - £31,998).
Delkia Limited
Notes to the financial statements for the Year Ended 31 December 2024 (continued)
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INVESTMENTS |
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2024 |
2023 |
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Investments in subsidiaries |
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- |
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Subsidiaries |
£ |
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Cost or valuation |
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Additions |
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Carrying amount |
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At 31 December 2024 |
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STOCKS |
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2024 |
2023 |
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Stocks |
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DEBTORS |
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Current |
2024 |
2023 |
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Trade debtors |
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Amounts owed by related parties |
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- |
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Prepayments |
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Other debtors |
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Delkia Limited
Notes to the financial statements for the Year Ended 31 December 2024 (continued)
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CREDITORS |
Creditors: amounts falling due within one year
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2024 |
2023 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Creditors: amounts falling due after more than one year
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2024 |
2023 |
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Due after one year |
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Loans and borrowings |
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RESERVES |
A reconciliation of the opening and closing non-distributable reserve for the current year is as follows:
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Non-distributable
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Brought forward |
8,009 |
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Other movement |
(7,957) |
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Carried forward |
52 |
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FINANCIAL COMMITMENTS, GUARANTEES AND CONTINGENCIES |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £282,508 (2023 - £540,464), £282,508 (2023 - £540,464) of these commitments relate to property leases.